ALLIED BANK OF PAKISTAN 1

ALLIED BANK OF PAKISTAN LIMITED

1. HISTORY
Overview
Allied Bank is the first Muslim bank, to have been established on the territory that became
Pakistan.

Established in December 1942 as the Australasia Bank at Lahore with a paid-up share capital of
Rs. 0.12 million under the Chairmanship of Khawaja Bashir Bux, the Bank had attracted deposits,
equivalent to Rs. 0.431 million in its first eighteen months of business. Total assets then amounted
to Rs. 0.572 million. Today Allied Bank's paid up Capital & Reserves amount to Rs. 10.5 billion,
deposit exceeded Rs. 143 billion and total assets equal Rs. 170 billion. The Allied Bank's story is
one of dedication, commitment to professionalism, adaptation to changing environmental
challenges resulting into all round growth and stability, envied and aspired by many.

The Pre Independence History (1942 to 1947)

In the early 1940s the Muslim community was beginning to realize the need for the active
participation in the field of trade and industry. The Hindus had since the late 1880s established a
commanding presence in these areas and industry, trade and commerce in the undivided Sub-
continent was completely dominated by them. Banking, in particular, was an exclusive enclave of
the Hindus and it was widely believed, and wrongly so, that Muslims were temperamentally
unsuited for this profession.

It was particularly galling for Khawaja Bashir Bux to hear the gibe that “Muslims could not be
successful bankers”. He decided to respond to the challenge and took lead in establishing this first
Muslim bank on the soil of Punjab that was to become Pakistan in December 1942; by the name of
Australasia Bank Limited.

The initial equity of the Bank amounted to Rs 0.12 million, which was raised to Rs 0.5 million by
the end of first full year of operation, and by the end of 30th June 1947 capital increased to Rs.
0.673 million and deposits raised to Rs 7.728 million.

Australasia Bank (1947 to 1974)

Australasia Bank was the only fully functional Muslim Bank on Pakistan territory on August the
14th, 1947.

It had been severely hit by the riots in East Punjab. The bank was identified with the Pakistan
Movement. At the time of independence all the branches in India, (Amritsar, Batala, Jalandhar,
Ludhaina, Delhi and Angra (Agra)) were closed down. New Branches were opened in Karachi,
Rawalpindi, Pesh Established in Lahore in 1942 before independence, Allied Bank Limited is one
of the largest bank in Pakistan with more than 700 Branches connected to an online network. In
August 2004 the Bank was restructured and the ownership was transferred to Ibrahim Group.
awar, Sialkot, Sargodha, Jhang, Gujranwala and Kasur. Later it network spread to Multan &
 ALLIED BANK OF PAKISTAN 2

Quetta. The Bank financed trade in cloth and food grains and thus played an important role in
maintaining consumer supplies during riot affected early months of 1948. Despite the difficult
conditions prevailing and the substantial set back in the Bank’s business in India, Australasia Bank
made a profit of Rs 50,000 during 1947-48.

By the end of 1970 it had 101 branches. Unfortunately it lost 51 branches in the separation of East
Pakistan. The bank did well in despite losing lot of its assets. By the end of 1973 the bank had 186
branches in West Pakistan.

Allied Bank (1974 to 1991)

In 1974, the Board of Directors of Australasia Bank was dissolved and the bank was renamed as
Allied Bank. The first year was highly successful one: profit exceeded the Rs 10 million mark;
deposits rose by over 50 percent and approached Rs 1460 million. Investments rose by 72 percent
and advances exceeded Rs 1080 million for the first time in bank history. 116 new branches were
opened during 1974 and the Bank started participation in the spot procurement agriculture
program of the Government. Those seventeen years of the Bank saw a rapid growth. Branches
increased from 353 in 1974 to 748 in 1991. Deposits rose from Rs 1.46 billion, and Advances and
investments from Rs 1.34 billion to Rs 22 billion during this period. It also opened three branches
in UK.

Allied Bank (1991 to 2004)

As a result of privatization in September 1991, Allied Bank entered in a new phase of its history,
as the world’s first bank to be owned and managed by its employees. In 1993 the “First Allied
Bank Modaraba (FABM) was floated.
After privatization, Allied Bank registered an unprecedented growth to become one of the premier
financial institutions of Pakistan. Allied Bank’s capital and reserves were Rs. 1.525 (Billion) and
assets amounted to Rs. 87.536 (Billion) and deposits were Rs. 76.038 (Billion). Allied Bank
enjoyed an enviable position in the financial sector of Pakistan and was recognized as one of the
best amongst the major banks of the country.

In August 2004 as a result of capital reconstruction, the Bank’s ownership was transferred to a
consortium comprising Ibrahim Leasing Limited and Ibrahim Group.
Today the Bank stands on a solid foundation of over 63 years of its existence having a strong
equity, assets and deposits base offering universal banking services with higher focus on retail
banking. The bank has the largest network of on-line branches in Pakistan and offers various
technology-based products and services to its diversified clientele through its network of more
than 700 branches.

(2005 to date)
In May 2005 Ibrahim Leasing Limited was amalgamated by transfer to and vested in with and into
Allied Bank Limited. ILL shareholders were issued ABL shares in lieu of the ILL shares held by
them. Application for the listing of ABL shares in all the Stock Exchange Companies of Pakistan
was made. ABL was formally listed and trading of the shares of the Bank commenced w.e.f. The
 ALLIED BANK OF PAKISTAN 3

following dates.

Islamabad Stock Exchange 8th August 2005

Lahore Stock Exchange 10th August 2005
Karachi Stock Exchange 17th August 2005

Now all shareholders of Allied Bank Limited can trade in the shares of the Bank at their free will.

2 . INTRODUCTION OF ALLIED BANK LIMITED

Established in Lahore in 1942 before independence, Allied Bank Limited is one of the largest banks
in Pakistan with more than 700 Branches connected to an online network. In August 2004 the
Bank was restructured and the ownership was transferred to Ibrahim Group.
Values of the Organization
1.Integrity
2.Excellence in Service
3.High performance
4.Innovation and growth

(i) INTRODUCTION Of ABL BRANCH SARGODHA

Allied bank University Road Sargodha branch was established on 17th April 1990.Round about
2950 peoples have account in this branch. Comparatively it is one of the smallest branches of
Allied bank but the no. Of accounts in this bank is the proof of confidence of people on its
management which is all due to hard working of its management .In a short time period its a great
success.

3. LOCATION
Allied bank of Pakistan has more than seven hundred branches in different cities of Pakistan like
Karachi, Islamabad, Lahore, Multan, and Faisalabad and has a vast branch-to-branch network and
ATM network all over the Pakistan.

4 . LOGO
Logo of Allied bank of Pakistan limited is

SLOGAN OF ABL
Allied Bank of Pakistan has an impressive slogan that is
 ALLIED BANK OF PAKISTAN 4

Allied Bank aap k saath saath

5. PRODUCTS
ACCOUNTS

(i) Current Account

Allied Bank offers Current Account facility for individuals as well as for institutions and
commercial customers.
Free services for depositors maintaining minimum balance of Rs. 0.1 (M) in previous month.
-Free Online Transactions
-Free issuance of Payment Orders
-Free Issuance of Deposit at Call
-Free issuance of Demand Drafts

(ii) PLS Saving Deposits

Allied Bank offers PLS Savings Account facility to its customers with the following attractive
features.

At Attractive return upto 5.00% per annum

No service charges on active accounts
Complementary ATM cards

For depositors maintaining a minimum balance of Rs. 0.5 (M) in the previous month the following
additional benefits are offered.

Free Online Transactions

Fr free issuance of Payment Orders

Fr free issuance of Demand Drafts
Fre free Issuance of Deposit at Call Receipts

(iii) Allied Basic Banking Account

In order to provide basic banking facilities to low income people in Pakistan, Allied Bank has
introduced “Allied Basic Banking Account” (ABBA). This account can be opened with an initial
deposit of Rs 1000/=. The account is a non-remunerative account with no minimum balance
requirement. The account will be closed automatically if the balance remains “zero” continuously
for one year. The statement of the account will be issued on yearly basis. There are no service
 ALLIED BANK OF PAKISTAN 5

charges on the said account for a maximum 2-withdrawals and 2-deposits during a calendar
month. Additional transactions will be subject to a service charge as per Bank’s schedule of
charges for every withdrawal/deposit, while there is no limit for free of charge withdrawals from
ATM.

(iv) Allied Profit Plus – Term Deposit

The scheme offers an attractive return on various tenors tailored to the individual needs of our
customers. Profit is payable on maturity.

Rs0.5 (M) to less than Rs 5(M) 6.50% 7.00 7 7.50% 8.00%

%
Rs 5 (M) to less than Rs 10(M) 6.75% 7.25 7.75% .88.25%
%
R s10 (M) to less than Rs 7.00% 7.50 8.00% 8.50%
1515(M) %
Rs15 (M) to less than Rs 7.50% 8.00% 8.50% 9.00%
20100(M)
R1 100 (M) &above 8.00% 8.50% 9.00% 9.50%

(v) Allied Profit Plus – Deposit Account

Allied Profit Plus–Deposit Account is a profit bearing checking account with the payment of profit
on a monthly basis. The estimated rate of profit is given below:

Rs. 1(M) to less than Rs 5 (M) 6.00%

Rs. 5(M) to less than Rs 10 (M) 6.50%
Rs. 10(M) to less than Rs 25 (M) 7.50%
Rs.25 (M) & above 8.00%

Salient Features Of The Scheme

1. The applicable profit rate would be based on slab of amounts maintained on average
monthly basis and the profit credited in the account on monthly basis.
2. There is no restriction for maintenance of any minimum balance in the account
3. Individuals, Companies, Schools, Hospitals, Charitable Organization etc, are free to
open their account in this scheme

Additional benefits for deposits of Rs.0.5 million and above are:

1. Free Online Transactions
2. Free issuance of Payment Orders
3. Free issuance of Demand Drafts
 ALLIED BANK OF PAKISTAN 6

(vi)Allied Monthly Income Scheme

Is a unique product with attractive returns. It provides an opportunity for a regular monthly income.
The period of deposit under this scheme is 3 years.

Minimum Amount Rs 100,000 (with increments

of Rs 10,000/-)
Profit Payable on monthly basis
Projected profit Rs 850 per month on a
deposit of Rs 100,000/- @
10.20% per annum
Eligibility All individuals & institutions
other than Financial Institutions
Period 3 years

The Scheme Provides The Following Special Benefits:

1. Complementary ATM card for depositor and spouse
2. Profit to be credited in the depositor’s PLS saving A/C and can be withdrawn through
ATM free of charge
3. Complementary credit card with approved credit limit
4. Free transfer of monthly profit to any branch of ABL all over the Pakistan
5. Loan facility against deposit
Additional Benefits For Depositors Of Rs 0.5 (Million) & Above
1. Free online transaction
2. Free Issuance of Pay Orders
3. Free Issuance of Demand Drafts
4. Free Issuance of Deposit at Call Receipts

(vii)Foreign Currency Deposits

Allied Bank offers the facility for opening Current, Savings and Term deposit Accounts. These
accounts can be opened in US Dollar, Pound Sterling, Euro, and Japanese Yen at designated
branches.
A. ATM CARD
Allied Cash+ CARD
Allied Bank ATM Card, also referred to as "Allied Cash+", can also be used as a debit card at
merchant locations/service outlets having ORIX POS Terminals and displaying the ORIX logo.
ABSOLUTELY NO CHARGES!
Allied Cash+ offers the privilege of using thousands of ATMs of all banks without the extra charge
of Rs 15. Through this card you can have an experience of Cashless Shopping at thousands of
merchant locations. Get the card at no issuance fee. Pay no annual fee and no transaction fee.
Get instant cash and check balances at over 1000 ATMs nationwide with no ATM access fees! Here
is what we have to offer:
 ALLIED BANK OF PAKISTAN 7

• Round-the-clock cash withdrawals: Now you can make withdrawals up to Rs. 100,000 in a
day (depending upon your deposit) at any ATM across Pakistan. (The transaction limit is Rs.25,
000.)
• 'No Fee' ATMs: Next time you make a transaction at a 1-Link or MNET ATM anywhere in
Pakistan, you can be rest assured you will not be charged the extra fee of Rs.15
• Balance Inquiry & Mini Statement of Account: Absolutely free. The ATM screen will
reveal the balance in your account. A mini statement comprising last 8 transactions can also be
obtained from the ATM.
• PIN change: You can now easily change your PIN at regular intervals for enhanced security at
all ATMs of Allied Bank.
• Utility Bill payment facility: Pay your telephone, electricity, and gas utility bills on any of
our ATMs without having to wait in long queues outside your branch.
• Funds Transfer facility: You have the power to transfer money from your account to any
account of Allied Bank anywhere in Pakistan.
To obtain your Allied Cash+ card, just open your account with any branch of Allied Bank.

ONLINE BRANCH NETWORK

Online Banking facilities are available to customers maintaining accounts at all online branches
across the country. The following facilities are available:

• Cash Deposit for immediate credit to remote branch.

• Remote Cheque Encashment from any online branch.
• Instant Funds Transfer between any 2 online branches.
• Remote Balance Enquiry and Statement of Account.

In Addition to the above, account holders of all online branches can obtain Allied Bank's Allied
Cash+ Card for use at ATMs as well as at Debit Card POS terminals.
To locate a Branch simply select the city.

1 link network
In continuation of ALL TIME BANKING services, with the country wide network of 735
branches, we are pleased to announce that ABL has enhanced ATM services by joining the "1-
Link Switch" which has following members Banks:

 ABN Amro Bank

 Allied Bank
 Bank Alfalah
 Al Baraka Islamic Bank
 Habib Bank Limited
 Askari Bank
 Bank Al Habib
 National Bank
 PICIC Commercial Bank
 ALLIED BANK OF PAKISTAN 8

 Union Bank
 United Bank
 Soneri Bank
 Meezan Bank

M-NET NETWORK

The Allied Bank AlliedCash+ card could be used in an M-Net ATM as well. In Pakistan, the M-
Net ATM facilities can be availed at any of the following banks and locations:

 Metropolitan Bank
 Citibank
 NIB Bank
 HSBC
 The Bank of Punjab
 American Express
 Mybank Limited
 Standard Chartered Bank
 Saudi Pak Bank Limited
 Prime Commercial Bank Limited
 Habib Bank AG Zurich
 Muslim Commercial Bank
 Bank of Khyber
 KASB Bank

(viii) ONLINE BANKING

Allied Online is a unique service offering from Allied Bank Limited. Through Allied Online, your
account in Allied Bank is available to you from any of our branches country-wide.
No matter where you are in the country and which branch your account is maintained, you can have
your cheque encashed at any of our over 700 branches located in 250 cities. You can also use the
service to deposit cash for instant credit into your account or any other account in Allied Bank
from any branch. Similarly account-to-account Funds Transfer facility is also available for instant
remittance.
Your cheque drawn on a remote branch for credit into beneficiary’s account or encashment up to a
specified amount can also be presented at any branch by a 3rd party. Other services available to
accountholders are Balance Enquiry and Account Statement at remote branches.
Allied Online provides a secure, efficient and convenient facility for making payments to
beneficiary accounts from any of our branches countrywide. Corporate customers requiring funds
collection or disbursement facility can use it for cash management services.
 ALLIED BANK OF PAKISTAN 9

(ix) INTERNET BANKING

Banking at your fingertips! Allied Direct Internet Banking offers the convenience to manage and
control your banking and finances - when you want, where you want to! It's Simple, Convenient,
Secure and Faster. So, just get clicking.
Some features of Allied Direct are:
• Simple and Convenient
Easier navigation and help provided at every step so one can have most out of this service. With
Allied Direct convenience is just a click away.
• Secure and Faster
Secured & encrypted with latest tools and technologies, Allied Direct is the choice for secure and
fast Internet Banking.
• 24x7 Access
You now have access to your account 24 hours a day, 7 days a week. You transfer funds or even
pay bills even if it's a holiday.
To use Allied Direct Internet Banking, you should be a registered Allied Bank Account holder with
a valid ATM Card.

(x) MASTER CARD

Anyone can now become the holder of a true Credit Card here in Pakistan. Allied Bank under
license from Master Card International, U.S.A issues it's Master Card to anyone meeting the
eligibility criteria. With the Allied Bank - Master Card you will be assured of a service meeting
the highest international standards maintained by Master Card.
The New Allied Bank-MasterCard: For You! We at Allied Bank are of the view that the time
has come to bring about a radical change in the Pakistani credit card industry. Being a successful
individual, you deserve a life unrestricted by cash limitations, you deserve a reliable credit line,
you deserve the best – you deserve the Allied Bank-MasterCard! Luxury, status, prestige and
convenience await you with the Allied Bank-MasterCard - at no extra cost. That’s why the Allied
Bank-MasterCard is now available for you – with a set of unique features, a simple application
procedure and the fastest processing time! Accepted at 16,000+ establishments in Pakistan and
over 17 million retailers across the world, the Allied Bank-MasterCard is your ticket to complete
financial independence.

No Annual or Joining Fee! No annual or joining fee is applicable for the first year of operations
of the card after 1st year for Local Card Rs. 1000/ per year, International Card Rs. 1,500/- per year
and supplementary card are free for Lifetime.

Quick Processing Time: With our automated processing systems and simplified application
procedures, we promise delivery of the Allied Bank-MasterCard at your doorstep in record time.

Pioneer in Credit Cards: Not only is Allied Bank-MasterCard a pioneer in the credit card
industry, but is also the first free credit card launched by a completely Pakistani owned financial
institution
 ALLIED BANK OF PAKISTAN 10

OTHER PRODUCTS & SERVICES

i) HOME REMITTANCES
The Bank having a network of 735 branches all over Pakistan, undertakes to provide safe and
instant payment of remittance from expatriates, routed through designated foreign exchange
companies and correspondent banks with whom special arrangements have been made in this
regard. Through the Allied Express Service, Allied Bank ensures that beneficiaries' Accounts in
Allied bank branches are credited with in 48 hours of receiving home remittance information from
overseas

ii) REMITTANCES
Allied Bank can transfer funds to the remotest part of the country for payment/credit to the
customer himself or a third party, through Telegram/Telex/Telefax for payment/credit on the
same/next day. Telegraphic transfers can also be made abroad in Foreign Currency.
Carrying cash to strange alien location can prove to be risky as a single incident can render one
without monetary backup of any sort. Hence banks introduce traveler’s cheques in order to protect
against any contingency.

iii) Telegraphical Transfer

Banks are offering various type of products related to funds transfer in Pakistan, assuring the
fastest delivery of Funds around the Globe, through Telex, SWIFT and other Electronic Media.
Allied Bank with its large network spread all over the country is sharing quite a sizeable Funds
transfer business in the domestic market.

Bank has recently moved to optimize the use of electronic media to handle Funds Transfer with
speed. Even the shift over to "SWIFT" is at hand and Central Office has established a network.

iv) Demand Draft

A draft is one of the most popular Banking instrument in the trade circles to settle business deals
and transferring funds from one place to another. Allied Bank has taken radical steps for a speedy
Issuance/Payment of Drafts through automation and introduction of a more simplified system
based procedure.

v) Pay Orders
Pay order is a Bank instrument issued by a Bank in Pak Rupees at the request of a customer to
transact payment to a named payee through banking channel.
Generally payments against such cheques (Pay orders) are restricted to "Payees Account" and as
such are required to be enrouted through a Bank Account locally.

vi) Traveler Cheques - ABRTC

"Rupees Traveler Cheques" is one of the most convenient products launched by Allied Bank,
which has an excellent market response.
ABRTCs are only to be issued by the authorized branches of the ABL.
With the application of Government levies, nominal commission is also charged on issuance of
"Traveler Cheques".
 ALLIED BANK OF PAKISTAN 11

Traveler Cheques shall be valid until encashed unlike a "Negotiable Instrument" which is valid for
6 months

vi) HAJJ SERVICES

The Bank serves the intending pilgrims by helping them in performing this religious obligation.
The Hajj forms and other related the bank provides services. However, the terms and conditions
for accepting the Hajj forms from intending pilgrims are in accordance with the Hajj Policy
announced by the government, each year. Hajj applications are available with all branches during
Hajj season, immediately after the Government of Pakistan announces the Hajj policy.

vii) UTILITY BILLS

All branches of the Bank collect utility bills of electricity, gas and telephones. For convenience of
the customers, the branches collect Utility Bills during banking hours and also in the evening
banking on all working days. Bills can be paid through Cash or Cheques. Consumers may drop
bills with crossed Cheques into a drop box available at the branches under "Cheque Drop-in"
system.
Utility Bill payment facility - Pay your telephone, electricity, and gas utility bills on any of our
ATMs without having to wait in long queues outside your branch.

viii) LOCKERS
Allied Bank Lockers are available in three different sizes Small, Medium and Large on a yearly
fee. Locker holders need not have an account in the Bank.

ix) COPORATE LEASING

Allied Bank Limited commenced lease operations upon amalgamation with Ibrahim Leasing
Limited. Facilities include leasing for machinery, commercial vehicles, vehicles and equipments.
The Bank provides lease facilities for balancing, modernization, replacement and expansion
schemes to corporate and commercial clients in all industrial enterprises.

Leasing is a popular mode of financing due to its distinctive features like tax shield, preserve
working capital, easy documentation and less processing time.

Lease applications are entertained at all Bank branches in Pakistan.

6 . CHARTER/MISSION OF ABL
To provide value added services to our customers
To provide high tech innovative solutions to meet Customer’s requirements
To create sustainable value through growth, efficiency and diversity for all
stakeholders
To provide a challenging work environment and reward dedicated team members
according to their abilities and performance
 ALLIED BANK OF PAKISTAN 12

To play a proactive role in contributing towards the society

CHARTER 2

License no. BL - 11779

Date of establishment 17th of April 1990

According to issued license

In exercise of the powers conferred on the State Bank of Pakistan under section 28(1)
of the banking companies ordinance 1962 the

Allied Bank of Pakistan

Is authorized to open a new place of business at Plot no. 1/2, 2/2 ishtiaq plaza University
road
Sargodha.
M. Saeed Bhatti
(Chairman)

7 . MARKETING DEPARTMENT

(i) Functioning & strategy formulation

Allied bank of Pakistan limited and all its branches does not have a particular Marketing
Department. Some how, the people working in these branches are representing their
banks through guiding peoples and their customers about different schemes and their
advantages, the benefits that people can enjoy by their services. Thus every person,
right from Director to manager and to lowest rank employer is doing marketing of bank,
doing marketing of its beneficial policies and schemes by different ways i.e. by showing
the stunning Annual records. So we can say that Marketing department of bank involves
the same people of management. This can be well seen from the improvements in
Annual balance sheet of Allied Bank ltd., as there are more cash transactions and
increase in cash flow.

Vision & strategy of the Marketing department

To become a dynamic and efficient bank providing integrated solutions in order

to be the first choice bank for the customers.

(ii) FOUR P’s

a. PLACE
Allied Bank Limited is one of the largest banks in Pakistan with more than 700 Branches
 ALLIED BANK OF PAKISTAN 13

connected to an online network like other Banks of Pakistan. Like other well-known banks such as
National bank of Pakistan, Muslim commercial Bank, its branches are almost in every city, in ever
nook and corner of Pakistan and competiting with other banks by providing more &more facilities
and convenient way of banking such as ATM’s, money online, to its customer all over the
Pakistan.

b. PROMOTION
Allied Bank of Pakistan and its management, now a days is giving adds and commercials
through televisions so that people may come to know about the latest finance schemes of
Allied bank like loans, leasing and money banking etc. Moreover by giving Annual
financial report through Newspaper so that people may become impressed by their
success and may invest in these schemes, apply for loan and for leasing things, to open
account and to apply for ATM's and many things more. These two are the most
successful tools of advertisemnet of ABL.

c. PRODUCT
1.Accounts
Allied bank of Pakistan is providing a no. Of different types of accounts to people according to there
needs. Forexample
1. Allied Bank offers Current Account facility for individuals as well as for institutions and
commercial customers.
2.Alied Bank offers PLS Savings Account facility to its customers with the following attractive
features.
(i) Attractive return up to 5.00% per annum
Free Online Transactions
Free issuance of Payment Orders
Free Issuance of Deposit at Call
Free issuance of Demand Drafts

3. In order to provide basic banking facilities to low income people in Pakistan, Allied Bank has
introduced “Allied Basic Banking Account” (ABBA). This account can be opened with an initial
deposit of Rs 1000/=. The account is a non-remunerative account with no minimum balance
requirement. The account will be closed automatically if the balance remains “zero” continuously
for one year.
5. Allied Profit Plus – Term Deposit
6. Allied Bank ATM Card, also referred to as "Allied Cash+", can also be used as a debit
card at merchant locations/service outlets having ORIX POS Terminals and displaying the ORIX
logo.
7. Allied Online is a unique service offering from Allied Bank Limited. Through Allied
Online, your account in Allied Bank is available to you from any of our branches countrywide
ONLINE BANKING.
8. . Allied Bank under license from Master Card International, U.S.A issues it's Master
 ALLIED BANK OF PAKISTAN 14

Card to anyone meeting the eligibility criteria. With the Allied Bank - Master Card you will be
assured of a service meeting the highest international standards maintained by Master Card.
9. Traveler Cheques - ABRTC
"Rupees Traveler Cheques" is one of the most convenient products launched by Allied Bank,
which has an excellent market response.
10. ! Allied Direct Internet Banking offers the convenience to manage and control your
banking and finances.
11. Allie
d Bank offers the facility for opening Current, Savings and Term deposit Accounts. These
accounts can be opened in US Dollar, Pound Sterling, Euro, and yen.
12.Allied Monthly Income Scheme is a unique product with attractive returns. It provides an
opportunity for a regular monthly income. The period of deposit under this scheme is 3 years.
13. Allied Bank Lockers are available in three different sizes Small, Medium and Large on a yearly
fee. Locker holders need not have an account in the Bank.

d. PRICE
DOMESTIC BANKING
A. REMITTANCES
Commission:

i) Issuance of DDs 0.05% min Rs.100/- for A/c Holders

0.10% min Rs.150/- for Non-A/c Holders

ii) Issuance of TTs 0.10% min Rs.150/- for A/c Holders

0.10% min Rs.300/- for Non-A/c Holders

iii) DD/TT Cancellation Rs.100/- (Flat) / Rs.200/- (Flat)

v) Pay Order a) Issuance Rs.50/- for Account Holders.

Rs.100/- for Non-Account Holders.

b) Cancellation Rs.100/- (Flat)

c) Issuance of duplicate pay order Rs.150/- (Flat)

B. BILLS
i Collections: -

0.40% Minimum Rs.50/- plus postage/ courier

a) Documentary. charges.

Clean (Including Cheques/dividend

b) warrants/bank 0.20% Min. Rs.50 Maximum Rs.5000/-

Drafts etc) Plus postage/courier charges

ii Purchase Of Bills:-
 ALLIED BANK OF PAKISTAN 15

0.40% min Rs.50/- plus mark-up from the date of

a) Documentary Bills purchased other than those purchase

To the date of payment and courier charges as per

Drawn against Letters of Credit. tariff.

b) Clean bills (Cheques, bank drafts etc.) 0.40% min Rs.50/- plus markup from the

Date of purchase to the date of payment

And courier charges as per tariff.

iii Site Bills:-

a) Negotiating end. Markup: To be recovered as notified by the bank.

Up to Rs.50 Million 0.50%

Above Rs.50 Million 0.40%

Minimum Rs.500/-

b) Collection Charges for restricted L/Cs. (Where Rs.500/- (Flat)

Iv Usance Bills: -

At opening end.

a) Collection charges 0.40% per bill Minimum Rs.500/-

b) If bill matures after expiry of L/C. i) Usual charges as at (a) above.

ii) Extra commission @ 0.10% per month

Is to be recovered/charged on bill amount

On realization, from the date of expiry of L/C.

At Collecting End: -

a) Collection Charges Commission 0.40% Minimum Rs.300/-

b) In case of Purchase. Usual commission as in (a) above keep

Mark-down @ 0.60% for every 15 days or Part there

Of from the date of purchase till The date of maturity.

D. STANDING INSTRUCTIONS FEE

Standing instructions fee will be recovered in

addition Rs.100/- per instruction

To the usual charges on remittances, if any.

E. GUARANTEES
 ALLIED BANK OF PAKISTAN 16

Guarantees issued to shipping companies in

i) lieu of Rs.1000/- (Flat)

Guarantees issued favoring Collector of

ii) Customs. 0.60% per quarter or part thereof.

Min. Rs.1000/-

Other Guarantees including Bid-Bond

iii) Guarantees a) Up to Rs.25 (M) 0.40% per quarter or part

Issued at the request of the A/c. holder in

Pakistan. Thereof Min Rs.1000/-

b) Up to Rs.50 (M) 0.35% per quarter or part thereof

c) Up to Rs.75 (M) 0.30% per quarter or part thereof

d) Up to Rs.100 (M) 0.25% per quarter or part thereof

e) Above Rs.100 (M) negotiable with the

Approval of GC-CRBG/CIBG

G. MISCELLANEOUS CHARGES

Issuance of Duplicate statement of

i) accounts. Rs.50/-.

ii) Issuance of Cheque Book. Rs.5/- per leaf

iii) Issuance of loose Cheque. Rs.100/- per leaf

US$ 2 /- per leaf F.C Account

iv) Stop payment instructions. Rs.150/- per instruction

US$ 5/- per instruction F.C. Account

v) Cheque returned on counter/Clearing Rs.200/- per cheque (Inward & Outward).

(If returned due to fault on the part of

respective F.C. A/c. US$ 5/- per cheque

Account holder i.e. insufficient balance,

difference in No charges on counter return

Signature, difference of amount in words

and figures /

Stale cheque, postdated etc).

vi) Same day clearing Rs.150/- Within city (including NIFT charges)

Rs.100/- Intercity (including NIFT charges)

vii) Balance confirmation certificate required by Rs.100/- per certificate

 ALLIED BANK OF PAKISTAN 17

Customers other than auditors.

viii) Account closing processing cost.

a) Local Currency Account. Rs.250/-

b) Foreign Currency Account. US$10/-

ix) Service Charges.

a) Service Charges on Rupee Current &

PLS Savings i) Current A/c. Rs.100/- p.m.

Dormant Account where monthly average

balance ii) PLS Savings Dormant A/c. Rs.50/- p.m. (see note)

Falls below Rs: 10,000/-

b) Foreign Currency Account

Service Charges if average balance in

Foreign Currency US$ 2/- per month.

A/cs. Falls below US $1000/- during a

month.

H. PROJECT FINANCING

1) Project Examination Fee.

1/2% of the requested financial assistance. The fee should be recovered when a
request is accepted for a detailed examination. This fee is payable within 30
days after Bank's decision for acceptance of the project is conveyed to the
sponsors. In case the fee is not paid within the stipulated time, the case is treated
as closed.
In case the project is closed/withdrawn by the sponsors during detailed appraisal
and prior to submission to credit committee/competent authority for approval,
an amount of Rs.20, 000/- or 10% of project examination fee whichever is
higher is retained by ABL.
In case the project is closed/withdrawn by the sponsors or declined by the credit
committee/competent authority after detailed appraisal, an amount of Rs.30,
000/- or 25% of project examination fee whichever is higher is retained by
ABL. In case the project is closed by ABL after issuance of sanction letter, ABL
would retain Rs.50, 000/-.

2) Legal Documentation Fee.

1/4% of the requested financial assistance. The fee should be recovered with
project examination fee.
In case the project is closed/withdrawn by the sponsors before acceptance of
sanction letter, the entire fee will be refunded to the client.
In case the project is withdrawn by the sponsors or could not be implemented
due to any reason, whatsoever, after acceptance of sanction letter, then 50% of
the fee will be refunded to the client.
 ALLIED BANK OF PAKISTAN 18

3) Commitment Fee.

1.50% per annum on the unutilized fund-based financial assistance effective 30

days from the date of sanction letter. The commitment charges will be recovered
on quarterly basis or at the time of disbursement whichever is earlier.

4) Project Monitoring Fee.

0.50% per annum on outstanding balance of Bank's financial assistance

effective from the date of first disbursement.

5) Consortium Management Fee.

1/4% of financial assistance in case of consortium arrangement by the Bank.

6) Misc. Charges for issuance of NOC etc.

For the issuance of NOC on the request of sponsors / clients for creating Rs.10,000/-
additional / pari-passu charges / second charges on their fixed assets for Min
acquiring further project finance from other Banks / DFIs for any alterations,
reallocation and switching of financing from one category to another will be
charged.

1. THE FOLLOWING CHARGES WILL BE RECOVERED ON SALE & PURCHASE

OF STOCK EXCHANGE SECURITIES.
Charges on sale/purchase of Stock Exchange Securities.

Share Value In Rupees Rates for Rates for

i) Brokerage: From To delivery of shares trading of shares

Up to 19.99 0.12 0.10

20.00 39.99 0.15 0.10

40.00 49.99 0.30 0.10

50.00 59.99 0.38 0.15

60.00 79.99 0.44 0.15

80.00 99.99 0.60 0.20

100.00 199.99 0.74 0.20

200.00 249.99 1.50 0.25

250.00 499.99 1.88 0.25

500.00 & above 3.74 0.30

ii) C.D.C.

a) At the time of depositing/withdrawing of shares. Rs.0.10 per share

b) For transfer at the time of sale/purchase. Rs.0.02 per share

 ALLIED BANK OF PAKISTAN 19

iii) C.O.T.

The following commission to be charged

(In addition to prevalent COT Charges of Market).

Market Rate Commission

For Shares upto Rs.100/- Rs.0.01 per day per share

For Shares above Rs.100/- Rs.0.02 per day per share

J. ALLIED BANK - MASTER CARD

a. LOCAL CARD

i) Joining Fee NIL

ii) Annual Fee Free for first year

Rs.1000/- p.a. for each subsequent year.

iii) Supplementary Card Annual Fee. Nil

b. INTERNATIONAL CARD

i) Joining Fee NIL

ii) Annual Fee Free for first year

Rs.1500/- p.a. for each subsequent year.

iii) Supplementary Card Annual Fee. Nil

c. OTHER CHARGES

Over Limit Fee (on the amount

i) exceeding the sanctioned limit). 2.00% per month (minimum Rs.50/-)

Per transaction

ii) Cash Advance fee. 2.50% of transaction amount.

Foreign/International Transaction
iii) Charges. 2.00% over prevailing Market Rate or as per

SBP directives. Third Currency transaction

Will be first converted into US$ as per rate

Quoted under arrangement with Master Card

International.

iv) Card Replacement Charges Rs.250/-

v) Returned Cheque Charges Rs.250/-

vi) Voucher/Charges Slip Rs.200/- local

 ALLIED BANK OF PAKISTAN 20

Retrieval Fee Rs.500/- International

Master Card International Arbitration

vii) Charges for Actual (if charged by Master Card) + Rs.200/-

Disputed transaction.

Late payment Service Charges till

viii) regularization of account Rs.200/- per month

After due date of payment on all

defaulted clients.

K. LOCKERS

Safe Deposit Lockers Fee for Safe Deposit Lockers:

The period yearly/half yearly/quarterly) as the case may be:

a) Upto 0.40 cft Small Rs.1000/- p.a.

From 0.41 to 0.80 cft & Medium Rs.1500/- p.a.

From 0.81 to 1.35 cft

From 1.36 to 1.75 cft & Large Rs.2500/- p.a.

From 1.76 to 2.00 cft

From 2.01 to 2.50 cft & Extra Large Rs.4000/- p.a.

From 2.51 to 3.00 cft

b) Key Deposit. Small & Medium Rs.3000/-

Large &Extra Large Rs.4000/-

c) Breaking Charges. Actual

Rs.2000/- Minimum

L. ATM SERVICES.

1) Issuance of ATM Card and PIN Mailer. Nil

2) Half-yearly Usage Fee Nil

3 Replacement of Card Rs.250/-

IMPORTS
i)
C First quarter or Each
a subsequent quarter
s
 ALLIED BANK OF PAKISTAN 21

h
le
tt
er
s
of
C
re
di
t
(A
n
n
u
al
B
u
si
n
e
ss
)
part thereof or part thereof
Upto Rs.25 (M) 0.30% 0.20%
Upto Rs.50 (M) 0.25% 0.15%
Upto Rs.100 (M) 0.20% 0.15%
Above Rs.100 (M) Negotiable* See note below
Minimum Rs.1000/-
b. Transfer Commission When a letter of credit is transferred
To a new beneficiary, transfer Commission should be
Charged as Applicable in case of fresh letter of
a. Non-reimbursable letters of
ii) credit under 1% for 1st quarter or part thereof.
Barter/Credit/Loans. 0.30% for each subsequent quarter
Or part thereof. Minimum Rs.1000/-
b. L/C Under
"Suppliers/Buyers Credit". Pay
As Commission @ 0.40% per quarter
You Earn Scheme and
Deferred Payment Or part thereof. (At the time of opening
DA. L/C: If bills are to be drawn
iii) at a usance 1) Rs.500/- per bill (Flat) to be charged
Under the above letters of credit
other than At the time of retirement of bills.
PAYES and Suppliers/Buyers
Credit and
Deferred payment letters of
credit on yearly 2) Usual commission as per item (i)
Basis. And extra commission @ 0.10% per
Month is to be recovered/charged for
The usance Import Bills for any period
 ALLIED BANK OF PAKISTAN 22
iv Amendments.
vii
i) Collections
ix Import against advance
) payment to suppliers
Service Charges against import
x) transactions i.e.
Import bills/PAD/Collection.
xi Re-imbursement charges
) (payable to re-imbursing
Banks).
xii Delivery order issued for release
) of Air Freight
Consignment in the absence of
original import
Documents.
xii Handling of discrepant
i) documents under import L/C.
xi
v) L/C Cancellation charges.
B. EXPORTS
i) Letters of Credit.
a) Advising
b) Amendment Advising
c) Negotiation of Rupee Bills under
Letter of Credit.
d) Confirmation
e) Transfer of Export L/Cs.
f) Reimbursement payment to
other local banks from
N.R. Pak. Rupee A/c.
If the documents are sent to other
Ii banks for negotiation
Iii Collections:
a) Clean bills.
Beyond validity of Letter of Credit.
Minimum Rs.500/-
a) Amendment without increase in
Amount or extension in period of
Shipment Rs.500/-. (Flat)
b) Amendment involving increase in
Amount and/or extension in period of
Shipment. Rs.500/- plus commission
As per item No. (i) or (ii-a).
Rs.750/- (flat) per collection +bank charges,
If any
Rs.750/- (flat) plus usual remittance charges
0.10% or Re.1/- per mille.
Minimum Rs.500/-
At Actual
Rs.1000/- (Flat)
Rs.1000/- will be deducted from the bill
Amount of accepted documents plus
Telex/Swift/Fax charges.
Rs.1000/-
Rs.500/- (flat)
Rs.400/- (flat)
0.25% Minimum Rs.300/-
0.25 per Rs.100/- per quarter or part thereof.
Minimum Rs. 400/-
Rs.500/- (flat)
Rs.500/- (flat)
Rs.500/- (flat)
Rs.100/- per collection.
 ALLIED BANK OF PAKISTAN 23

(Cheque/Bank Draft etc.)

b) Documentary Bills Rs.200/- per collection.
I Handling of compensatory Rebate
v Applications/Duty 0.25% per claim minimum Rs.250/-.
Draw back applications/claims.
Service Charges against export
V documents sent 0.10%
On collection.
C. TARIFF
(Postage/Cable/Swift/NIFT/Telex/F
ax/Telephone At actual subject to minimum as under: -
And courier).
A Postage Local Rs.25/-
B Courier Local Rs.50/-.
Inland Rs.75/-
Foreign Actual plus Rs.50/-
Telegram/Telex/Fax/Telephone/Sw
C ift.
Inland/local Rs.100/-
D Foreign
Full L/C/ guarantee and long
i) messages Rs.1200/- for full message.
ii L/C/Guarantee amendment,
) telegraphic transfer Rs.400/- for short message.

8. MANAGEMENT

(i) Allied bank of Pakistan ltd.

a. Board of directors

Mr. Mohammad Naeem Mukhtar

Chairman
Mr. Sheikh Mukhtar Ahmed
Director
Mr. Mohammad Waseem Mukhtar
Director
Mr. Sheikh Jalees Ahmed
Director
Mrs. Nazrat Bashir
Government Nominee Director
Mr. Abdul Aziz Khan
Director
 ALLIED BANK OF PAKISTAN 24

Mr. Farrakh Qayyum

Government Nominee Director
Mr. Khalid A. Sherwani
President & CEO

b. COMPANY SECRETARY
Mr.Mohammadi Yaqoob

c. AUDIT COMMITTEE
Mr. Mohammad Naeem Mukhtar Chairman
Mr. Abdul Aziz Khan Member
Mr. Farrakh Qayyum Member

d. AUDITORS
A.F. Ferguson & Co.
Chartered Accountants
Ford Rhodes Sidat Hyder & Co.
Chartered Accountants

e. LEGAL ADVISORS
Mr. Saleem Ahmed

f. CHIEF FINANCE OFFICER

Mr. Zia Ijaz

Vision of the Management

To become a dynamic and efficient bank providing integrated solutions in

order to be the first choice bank for the customers.

(ii) Allied bank Sargodha city branch

Mission and strategies of Management

To provide value added services to our customers
To provide high tech innovative solutions to meet Customer’s requirements
To create sustainable value through growth, efficiency and diversity for all
stakeholders
To provide a challenging work environment and reward dedicated team
members according to their abilities and performance
To play a proactive role in contributing towards the society

Planning, hierarchy and duties of Management

Manager
Mr. Khalid Ahmad safdar is Manager of this branch. His responsibility is to attend
 ALLIED BANK OF PAKISTAN 25

customers of branch, to open the account of peoples, fresh finances and guiding
people in this regard, to approve business loan, to keep an eye on transactions
and records. In short he is overall responsible of entire working and entire
matters of branch.

Accountant
Mr. Zafar Hayat is accountant in this branch of Allied bank .His duty is to
Remittance DDTT, to issue chequebooks to account holders, to handle entire
stationery and record of transactions. He is overall incharge and customer
sales representative of this branch. He also verifies cheques.

Cashier
Mr.Mubashar Hassan is serving as a cashier of this branch. His duty is to
collect utility bills and cash.

Cashier and Teller

Mr. Ghulam ali is cashier as well as teller of this branch .In daily routine work,
he collects utility bills, receives cash, pays cash in response to cheques and
makes entire record of transactions and cash flow, incoming and outgoing of
cash..

Officer
Miss Noreen is Officer of grade ll by post in this branch. Her duty is to
update the record of balances of account holders, debit and credit
balances, to online money to branches of ABL as well as to branches of
other banks too. Also performs Computer positioning and supervision,
Remittance and advances, department correspondence as well.

Office boy
Mr. Mazhar Hussein is office boy of this branch. His duty is to help all people
of management by providing them stationary and different record books and
other things else.

Security Guard
Mr. asif Mehmood is serving as a security guard. His duty is to keep an eye on
every person roaming inside and outside of bank. To provide security and to
remain prepare every time to face any sort of situation and to deal with that.

Driver
M. Iqbal, a driver of this branch, facilitates all the peoples of management
with transport facility.

9. FINANCE DEPARTMENT
 ALLIED BANK OF PAKISTAN 26

Functioning & Hierarchy

Allied bank of Pakistan gives finance to its applicants as loan on easy conditions.
Its finance department first confirms the ownership of place or thing for which
applicant has applied for loan, then the actual need of applicant and finally after
approval from head of department provides loan to applicant for decided period
of time at suggested rate of profit. These finances are of following types.

i) SEASONAL FINANCE
Seasonal Finance facility is allowed against pledge of produce of Cash Crops harvested in that
particular crop season. The delivery of pledged stocks/goods is made against appropriate cash
payment.

ii) AGRICULTURAL FINANCE

Bank under Agricultural Financing Scheme envisaged by the State Bank Of Pakistan extends
short, medium and long term, farm and non-farm credits. The farm credits are extended for
production (inputs) and development purposes. Non-farm credits are allowed for livestock (goats,
sheep and cattle), poultry, factory including social forestry and fisheries (inland and marine
excluding deep sea fishing).

iii) IMPORT EXPORT BUSINESS/TRADE FINANCE

Allied Bank provides highly efficient trade finance services for import/export business for our
clients/customers through large number of authorized branches where trained and motivated staff
is available to handle the business on behalf of customer.

iv) RUNNING FINANCE

It is a short-term loan allowed by the bank for a period of one year. The running finance account
can be operated and daily sale proceeds can be deposited into the account. The mark-up is
recovered on the products of daily outstanding balance. The running finance is suitable for
meeting day-to-day financial needs of the business.

v) DEMAND FINANCE
It is disbursed in lump sum or in accordance with the agreed disbursement schedule and it is
repayable as per the agreed installments, which could be monthly, quarterly, biannual or annual.

10. SWOT ANALYSIS

 ALLIED BANK OF PAKISTAN 27

Strengths
1.Allied Bank of Pakistan provides complimentary ATM card for depositor and spouse than other banks.
2.Allied bank of Pakistan offers free transfer of monthly profits to any branch of ABL all over Pakistan.
3.Inter Branch Transaction and On-Line, Allied bank of Pakistan charges Rs.50/- (Flat) (both within city
& inter city) while Muslim commercial bank of Pakistan charges Rs.50 /- within city and Rs.200/-
intercity.
4.In case of Issuance of pay order, allied bank of Pakistan charges Rs.100/- from non-account holders
while Muslim commercial bank of Pakistan charges Rs.200/- from non-account holders.
5.The charges of Allied bank of Pakistan for Issuance of duplicate Rupee Travelers'cheque is Rs.250/-
while that of Muslim commercial of Pakistan is 500/-.
6.Allied bank of Pakistan charges Rs.0/- for Issuance of ATM Card and PIN
Mailer while MCB charges Rs. 250/-
7.Allied bank charges for joining International card and its renewal are 0
while that of MCB are Rs. 400/- each.
8.ABL Master card joining fee is 0 while that of MCB master card is
Rs.1000 and it’s first renewal is for free while MCB charges Rs.1000 for
first renewal.
9.Allied bank offers free ATM transaction as compare to other banks
whereas Muslim commercial bank &National Bank of Pakistan charges
Rs.15.
10.Allied bank of Pakistan offers easy loan to its accountholders .An ABL
account holder can get loan on its account up to 0.5 million and above after
confirmation by manager about account holders debit, credit balances.
Whereas other banks do not provide such opportunity to its customers and
account holders.

Weaknesses
1.Allied bank charges for DD/TT Cancellation are Rs.200/- while that of Muslim commercial
bank of Pakistan are rs.150/-
2. National bank of Pakistan’s charges for Issuance of Rupee Travelers' Cheque is Rs.5 per piece
of denomination while that of Allied bank of Pakistan’s charges are Rs.10.
3.The charges of National bank of Pakistan for collection of documentary bills are 0.35%
Minimum Rs.50/- plus postage/ courier charges while that of ABL’s are 0.40% Minimum Rs.50/-
plus postage/ courier charges
4. Muslim commercial Bank of Pakistan charges Rs.3/- per leaf for Issuance of Cheque Book
whereas allied bank charges Rs.5/- per leaf for Issuance of Cheque Book.
5. Account closing processing cost of Foreign Currency Account of Allied bank is 10$ while of
Muslim commercial bank of Pakistan is 5$.
6.Allied bank of Pakistan does not have a easy car finance (lease scheme for its customer at a
lower mark up whereas other banks are providing this opportunity to peoples.
7.Allied bank of Pakistan is not associated with Western Union bank for foreigners transactions on
the other hand National bank of Pakistan is Associated with Western Union for the convenience of
its customers.
 ALLIED BANK OF PAKISTAN 28

8.National bank of Pakistan has introduced “ Tractors for farmers “ on easy monthly installments
at lowest mark up on the other hand Allied bank has not introduced such scheme yet.
9.It is not using as much media as a tool for its advertisement as compare to other banks like
National bank of Pakistan.

Opportunities
1.As being one of the registered companies in Pakistan stock exchange, their good will increased
and people trusts them.
2.This bank has not yet opened its branches in certain areas of Pakistan so they have now
opportunity to open their branches in these areas to increase their network.
3.As they have more capital reserves and resources they have opportunity to invest in certain
departments like in promoting agriculture, leasing facility.
4.By giving huge donations to victims of natural disasters they have opportunity to increase their
goodwill in the eyes of people.
5.Allied bank was the main sponsor of the first South Asian accounting summit, which was held in
Karachi. The summit provided an opportunity to accounts and finance professionals to interact
with global experts and discuss the latest developments in accounting standards with special
relevance to Pakistan.
6. Islamabad Electric Supply Company Limited (IESCO) for the first time will avail local
currency financing from a consortium of local banks led by Allied Bank. President, Allied Bank
informed that the facility arranged by Allied Bank is the largest ever-local currency financing to a
Power Distribution Company. Allied Bank has successfully advised and arranged a Syndicated
Term Finance Facility of PKR. 2,500,000,000 for IESCO. The facility will be utilized for
financing the expansion, up-gradation, rehabilitation and improvement of IESCO’s Distribution
System. The facility has been co-arranged by Standard Chartered Bank and Bank Alfalah. So it is
a big opportunity for Allied bank limited to get a well repute, as it is the first bank of Pakistan in
this regard.
7. As Allied Bank of Pakistan offers benefits on PLS saving deposits such as attractive return up
to 5,00%, No service charges on active accounts, Complimentary ATM cards for depositors unlike
other banks, it is an opportunity for it that more and more people would like to invest.

Threats
1.One of the threats for Allied Bank of Pakistan limited is that it has only 735 branches on the
other side Muslim Commercial bank has more than 900 braches over 750 of which are
Automated Branches, over 225 MCB ATMs in 41 cities nationwide and a network of over
12 banks on the MNET ATM switch and National bank of Pakistan has more than
thousand branches. So these two banks are comparatively stronger than Allied bank in
final records. These two banks have cash transactions and more cash flow as they have
more branches and have strong interconnected ATM ad MNET network.
2.Local people of Pakistan and mostly foreigners will prefer to have an account in bank like
National bank of Pakistan, as it is associated with Western Union as it will be easy for them to
send money through it in their Foreign Currency account.
 ALLIED BANK OF PAKISTAN 29

3.Farmers will prefer to Apply in National bank of Pakistan because of their Tractor scheme at
lowest Mark up.

CONCLUSION
From the above analysis it can be seen that Allied bank has many strong points like Allied
bank offers free ATM transaction as compare to other banks which charges Rs.15 per transaction
and Allied bank of Pakistan offers easy loan to its accountholders .An ABL account holder can get
loan on its account up to 0.5 million and above after confirmation by manager about account
holders debit, credit balances unlike other banks. Besides it, it also has some weaknesses like it is
not using as much media (commercials) as a tool for its advertisement as compare to other banks
like National bank of Pakistan and it has not yet introduced any scheme for development of
agriculture by offering tractors on easy installment to farmers. But still it has a number of
opportunities in front of it as they has more capital reserves and resources they have opportunity to
invest in certain departments like in promoting agriculture, leasing facility and As being one of the
registered companies in Pakistan stock exchange, their good will increased and people trusts them.
So there is an opportunity for it to utilize. It also has some threats from its competitors. No doubt
ABL is a well-reputed organization of Pakistan but in order to get a higher status, its management
has to look on certain things, like, to increase its branches, ATM’s and MNET, to decrease its
charges on some facilities and to provide Latest facilities to people in order to compete with other
bank organizations of Pakistan. It also have to avail available opportunities in front of it in order to
become a successful organization. Only by following this it can become the strongest Bank
organization of Pakistan.

NOTES TO THE FINANCIAL STATEMENTS 2005

1. STATUSES AND NATURE OF BUSINESS

Allied Bank Limited (Formerly Allied Bank of Pakistan Limited), incorporated in
Pakistan as a banking company, is a scheduled
Bank, engaged in commercial banking and related services. The registered
office of the bank is situated in Lahore whereas
The principal office is situated at Khayaban-e-Iqbal, Main Clifton Road, Bath
Island, and Karachi. The bank operates a total of
741 (2004: 735) branches in Pakistan. The bank is the holding company of
Allied Management Services (Private) Limited
(Note 41). The medium to long-term credit rating of the bank rated by JCR-VIS
Credit Rating Company Limited is 'A+' with
A stable outlook. Short term rating of the bank is 'A-1+'.
1.1 During the year, the bank changed its name to Allied Bank Limited and
obtained permission from the Securities and Exchange
Commission of Pakistan and the State Bank of Pakistan (SBP) on January 12,
2005 and March 28, 2005, respectively.
 ALLIED BANK OF PAKISTAN 30

1.2 As advised by the Privatization Commission, the SBP had undertaken the
reconstruction of the bank's capital, under Section 47 of the Banking
Companies Ordinance, 1962. In accordance with the Scheme of
Reconstruction, the SBP had offered 325
Million additional shares of the bank, constituting 75.35 percent of the
enhanced share capital, for bidding, which was held
On July 23, 2004. The highest bid, amounting to Rs.14.2 billion, was received
from the Ibrahim Group, which was approved
by the Cabinet Committee on Privatization on July 24, 2004, with additional
shares issued on August 19, 2004, thereby,
Transferring control of the bank to the Ibrahim Group.
1.3 Further, as part of the above-referred transaction, it was decided to
merge Ibrahim Leasing Limited (ILL) with Allied Bank
Limited (ABL), pursuant to Section 48 of the Banking Companies Ordinance,
1962. Hence, during the current year, the Board
Of Directors, in their meeting held on February 04, 2005, approved the
Scheme of Amalgamation of ILL with and into the
Bank. The shareholders of the bank through a special resolution adopted the
proposed Scheme of Amalgamation
Passed in the Annual General Meeting held on March 28, 2005. Subsequently,
the SBP, vide their Order, dated May 9, 2005,
Sanctioned the aforesaid Scheme of Amalgamation.
The Board of Directors of the bank, in their meeting held on May 11, 2005,
resolved that the effective date of amalgamation
Would be May 31, 2005 (Effective Date). The said date of amalgamation was
subsequently approved by the SBP, vide its
Letter number BPD (PU-31)/625-74/x/2005/6666, dated May 31, 2005, subject
to the compliance with the requirements of
SBP’s letter number BPD (PU-31)/625-74/2005/5570, dated May 10, 2005, and
its Order dated May 9, 2005.
1.4 As a result of the amalgamation of ILL with the bank on the above-
referred effective date, the results of both entities have
Been combined for the purposes of preparation of these financial statements.
International Accounting Standard – 22
“Business Combinations” is not applicable to the amalgamated financial
statements, as the amalgamation is between two Enterprises under common
control. The bank has applied the “uniting of interests” method to account for
the amalgamation.
In applying the “uniting of interests” method, the financial statement items of
bank and ILL for all periods presented are
Included in these financial statements as if they had been combined from the
beginning of the earliest period presented,
i.e. January 01, 2004, except for the treatment accorded to 18,348,550
Ordinary shares of Rs.10 each, determined pursuant
To the Scheme of Amalgamation, in accordance with the share-swap ratio
stipulated therein less 9,200,000 ordinary shares
 ALLIED BANK OF PAKISTAN 31

Of Rs.10 each, held by ILL on the cut-off date (September 30, 2004). The
resulting effects of the above have been included
In the Statement of Changes in Equity in the relevant period on account of the
fact that the Ordinary shares were issued
Subsequent to the beginning of the earliest period presented.
The comparatives in the accompanying balance sheet of the bank for the year
ended December 31, 2004 and the comparatives
In the accompanying profit and loss account, cash flow statement and
statement of changes in equity relating to the year
Ended December 31, 2004 comprise balances of the bank and ILL.
1.5 During the current year, the bank filed applications for listing with the
Karachi, Lahore and Islamabad stock exchanges. The
Above referred applications were approved by the respective stock exchanges
on August 17, 2005, August 10, 2005 and
August 08, 2005.

Financial Statements
 ALLIED BANK OF PAKISTAN 32

Profit& Loss Account

Balance Sheet

Cash Flow Statements

Changes in equities
ALLIED BANK OF PAKISTAN 33
ALLIED BANK OF PAKISTAN 34
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ALLIED BANK OF PAKISTAN 40