Shahid ABL Internship Report-Final

Internship Report 2012
INTERNSHIP REPORT ON ALLIED BANK LTD
Prepared By
Muhammad Shahid Iqbal BS Accounting & Finance Department of Commerce Bahauddin Zakarya University Multan 2009-2013
Department of Commerce Bahauddin Zakarya University Multan Page 1
Internship Report On ABL Chowk Nawan Shehr Branch Multan
Approval Sheet
Supervised by
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Department of Commerce Bahauddin Zakarya University Multan
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DEDICATION
All My Words Dedicated with Respect, Reverence Love and Affection to My Loving Parents, Sisters and Brothers who taught and hold my hands on several occasions and help me to reach this stage.
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Preface
The report is specially meant for the students of BS Accounting & Finance. It is concerned to a brief study of operations, functions, tasks and services of Allied Bank of Pakistan.
Banking play very important role in the commerce and economic development of a country. Now a days banks are using different modern technologies, which influence the managerial activities, thats why I decided to do my internship training in the bank.
In preparation of this report I have tried my best to provide all possible information about the operations, functions, tasks and the corporate information of Allied Bank of Pakistan in brief and comprehensive form.
Then internship report ends with some recommendation after identification of problems that I observed during the course of my internship training.
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Acknowledgment
To Him belongs the dimension of the Heavens and the Earth, it is He who Gives life and death and He has power over all things.
(Al-Quran)
All acclamations are to Allah, the most Merciful and Compassionate, who has empowered and enabled me to accomplish this task successfully.
After that I submit my earnest thank to my affectionate parents, who pray for my success and always been a source of encouragement for me. Secondly, I am grateful to my prestigious institute that made this learning opportunity a part of my education, especially I would like to thank my Professors as the knowledge imparted by them enable me to gain knowledge and learning exposure of the organization in the best way.
Also I express my appreciation to all staff members of Allied Bank of Pakistan who are very cooperative guided me a lot and also I express my greatest gratitude to my kindhearted supervisors Mr. Zeshan Zafar (Manager HR Regional office ABL Multan), Mr. Salman Ahmad (Branch Manager ABL Nawan Shehr Branch), Mr. Waheed Ahmad Chaudry (Operations Manager ABL Nawan Shehr Branch), Mr. Muhammad Zahid (General Banking Officer ABL Nawan Shehr Branch).
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TABLE OF CONTENTS
Particulars Page No.
1- Introduction to report
1.11.21.31.41.51.61.7Background of study The purpose of study Nature of Study Scope of study Banking System today Meaning of Bank Meaning of Banking
9
9 9 10 10 11 11 12
2- History and Background

2.12.22.32.42.52.62.7The Pre-independence History (1942-1947) Australasia Bank (1947-1974) Allied Bank (1974-1991) Allied Bank- A New Beginning Allied Bank (1991-2004) Allied Bank (2005 to date) Ibraheem Group Assumes Control Of ABL
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13 13 14 14 14 15 15
3- General Profile of the Allied Bank Limited

3.13.23.33.4Vision Mission Core Values Objectives
17
17 17 17 17
4- Branch Network
4.14.2Branch Banking Job Assignment Business Groups
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18 19
5- Management
5.15.2Board of Directors Executive Committee
20
20 20
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Internship Report 2012 5.3- The Management
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6- Products
6.16.26.36.46.5Phone Banking Allied Phone Banking service Branch Banking Internet Banking Online Banking
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22 22 22 23 23
7- Allied ATM Networks

7.17.21-Link Network M-Net Network
24
24 25
8- FINANCIAL PRODUCTS
8.1Types of Finances
26
26
9- Departments
9.19.29.39.49.59.69.79.8Current Saving Department Computer Operations Account Department Types of Accounts Opening and Operation of a Bank Account Remittances department Cash Department Clearing Department
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27 27 29 29 31 32 34 35
10-
SWOT Analysis
36
36 37 39 39
10.1- Strengths 10.2- Weaknesses 10.3- Opportunities 10.4- Threats
11-
Findings and Recommendations
40
41 41
11.1- Physical Facilities 11.2- Staff Availability

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Internship Report 2012 11.3- Employees commitment 11.4- Simplification of Advances 11.5- Marketing Concept 11.6- Customer Orientation 11.7- Mobilization of Less Cost Deposits 11.8- Information Access 11.9- Performance Audit 11.10- Campaign for Increasing the Deposits 11.11- Increases in Business Share 11.12- ATM Network Problem 11.13- Cash Deposits Using ATM 11.14- Networking among Banks 11.15- Online Loans 11.16- Function of Credit Department
41 42 42 42 43 43 43 44 44 44 45 45 45 45
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1- Introduction to Report:
1.1Background Of The Study: The study is about the general operations and management of Allied Bank Limited Nawan Shehr Multan, and focuses on the online banking and ATM (Automated teller machine), which was conducted through interviews and having a complete watch of operations in the branch. Every student of BS Accounting & Finance (Department of Commerce) has to undergo an internship program of six to eight weeks in any organization to get exposure to the real time business environment and to know what sort of changes Technology brings in management activities. The real purpose of this internship program is to provide an opportunity to the students to see the practical applications of their background professional studies. The report is a reflection on my experience when I was internee in ABL, branch, Multan. Since its inception in 1942, ABL has maintained a steady growth over the sixty years span of its operations. After its nationalization in 1974, it was denationalized in 1991 and the employees became the owners of ABL, through the unique concept of ESOP (Employees Stock Ownership Scheme). 1.2Purpose Of The Study Purpose of the study was two pronged. 1.2.1 General Purpose:
To get acquaintance to the banking operations. To know what sort of changes IT brings in managerial activities. To see the application of our Professional studies especially.
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1.2.2- Specific Purpose: Specific purpose of the study includes. A partial fulfillment as a requirement for the completion of BS degree in Accounting & Finance. To objectively observe the operations of Allied Bank of Ltd in general banking. To make recommendations or implementation plans for the improvement of the operations of ABL in the light of our professional studies. 1.3Nature of The Study:
The study is critical in nature. It was conducted to investigate critically into the operations of Allied Bank Ltd and it also explains that how ABL provides facilities of online banking to its customers. The annual reports or the consolidation data of the Bank has not been focused in specific because it does not reflect on the operational performance of branches. However, they have been referred to as when and where required. 1.4Scope of The Study
The study covers two areas with its variables, which affects the operations of the branch directly, or indirectly. These two areas of variables are: Branch specific variable. Bank specific variable.
The branch specific variables are the variables under the control of the branch management and directly affect its operations e.g. Layout of the branch. Customers relations. Departments in the branch ATM
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Internship Report 2012 Online banking.
The bank specific variables are those variables, which are not in control of the branch management e.g. History of ABL Services provided by ABL Role of ABL
1.5-
Banking System Today:
The banking business as we know it today is composed of three separate and distinctive principal functions these are: The acquiring of funds to invest and advances. The investing of such funds and advances (loans) in bonds. The servicing of such funds, such as providing of checking, saving facilities and the collection of draft, notes and cheques. These functions while deferring in detail of operations follow the same principles established hundreds of year ago by money lenders and exchangers. 1.6Meaning of Bank:
Some authors write that the word bank is derived from Italian word bancus OR banque which means a bench. Because in the old days the Jews were used to make banking settlements by sitting on the benches & to deal the exchange of money in the market place. When any one of them becomes insolvent means that he is unable to fulfill his requirements. Then his bench was destroyed by the customer & this practice given birth to the word BANKRUPT. Some other Authors are of the opinion that the word bank is derived from a German word back, which means Joint Stock Fund. & when the major part of Italy was occupied by the German then this word back was Italianized in to the word Bank.
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Internship Report 2012 However, no confident record is available to believe upon. Therefore, we are not in a position to give any bounded meanings to bank inspire of all these we can define bank as follow.
The imperial dictionary defined a bank as An establishment for deposits & issue of money & also for granting loans discounting bills & facilitating the transaction from one place to another place. It is an institution, which deals with money. It buys & sells the uses of money.
In other words, we can say A bank is an institution for exchange of money, sanctioning credit, transferring funds by domestic & foreign bills of exchange. We can also say that it is a pipeline through which money moves into & on of circulation. Shortly & conclusively we can say that the Bank is an institution that facilitates the matters in which the money is involved. 1.7Meanings of Banking:
The Banking companies Ordinance, 1962 defines Banking as Banking means accepting for the purpose of lending or investment, of deposits of money from public, repayable on demand or otherwise and withdrawal by checks, drafts, order, or otherwise.
2- History and Background:

Allied Bank was the first Muslim bank that has been established in Pakistan in December 1942 as the Australasia Bank in Lahore with a paid-up share capital of Rs. 0.12 million under the Chairmanship of Khawaja Bashir Bux, the Bank attracted deposits equivalent to Rs. 0.431 million in its first eighteen months of business. At the time, the Banks total assets amounted to Rs. 0.572 million. Today, Allied Bank's paid u p Capital & Reserves amount to Rs. 10.5 billion, deposits exceed Rs. 143 billion and total assets equal Rs. 170 billion. The Banks journey has been about dedication, commitment, professionalism and adapting to environmental changes, leading to its immense growth and stability. A view of Khawaja Bashir
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Internship Report 2012 Bux's Residence that was the first branch of Australasia Bank came into existence. It is these factors that have made it a Bank the rest look up to.
2.1- The Pre-independence History (1942-1947): In the early 1940s, the Muslim community was beginning to realize the need for its active participation in the fields of trade and industry. Since the late 1880s, Hindus had established a commanding presence in the areas of industry, trade and commerce and were especially dominating in the Sub-continent area. Banking, in particular, was the exclusive forte of Hindus and it was popularly and wrongly believed that Muslims were temperamentally unsuited for this profession. It was particularly upsetting for Khawaja Bashir Bux to hear that: Muslims could not be successful bankers. He decided to step-up to that challenge and took the lead in establishing this first Muslim bank by the name Australasia Bank Limited in Punjab, which was to become Pakistan in December 1942. The initial equity of the Bank amounted to Rs 0.12 million, which was raised to Rs. 0.5 million by the end of the first 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.
2.2- Australasia Bank (1947-1974): A view of the building in Lahore that once housed the Australasia Bank branch, Australasia Bank was the only fully operational Muslim bank in Pakistan on August 14th, 1947. However, it was 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, Ludhiana, Delhi and Angra (Agra)) were closed down. New branches were opened in Karachi, Rawalpindi, Peshawar, Sialkot, Sargodha, Jhang, Gujranwala and Kasur. Later, the network spread to Multan and Quetta as well. The Bank financed trade in cloth and food grains thus, played an important role in maintaining consumer supplies during the early months of 1948 affected by riots. Despite the
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Internship Report 2012 difficult conditions prevailing and the substantial set back in the Banks 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. But the Bank did well despite losing a lot of its assets and by the end of 1973 had 186 branches in West Pakistan.
2.3- Allied Bank (1974-1991): In 1974, the Board of Directors of Australasia Bank was dissolved and was renamed Allied Bank after the amalgamation of four banks. The first year was highly successful; profit exceeded Rs. 10 million, 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 the banking history. 116 new branches were opened during 1974 and the Bank started participating in the Governments spot procurement agriculture program. Those seventeen years saw a rapid growth for the Bank. Branches increased from 353 in 1974 to 748 in 1991. Deposits rose from Rs. 1.46 billion and Advances & Investments from Rs. 1.34 billion to Rs. 22 billion during this period. It also opened three branches in the U.K.
2.4- Allied Bank- A New Beginning: In November/December 1990, the government announced its commitments to the rapid privatization of the banking sector. Allied Banks management under the leadership of Mr. Khalid Latif decided to react positively to the challenge. In September 1991, Allied Bank Limited entered in the new era of its history a worlds first bank to be owned and managed by its employees. The 850 executives and 7200 staff members spread over 800 branches throughout the Pakistan established in high degree of cooperation and family feelings.
2.5- Allied Bank (1991-2004):

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Internship Report 2012 As a result of privatization in September 1991, Allied Bank entered a new phase, and became the worlds first bank to be owned and managed by its employees. In 1993 the First Allied Bank Modaraba (FABM) was floated. After privatization, Allied Bank became one of the premier financial institutions of Pakistan. Allied Banks capital and reserves were Rs. 1.525 billion; its assets amounted to Rs. 87.536 billion and deposits to Rs. 76.038 billion. Allied Bank enjoyed an enviable position in Pakistans financial sector 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 Banks ownership was transferred to a consortium comprising Ibrahim Leasing Limited and Ibrahim Group. Today, the Bank stands on a solid foundation built over 63 years of hard work and dedication, giving it a strong equity, an asset and deposit base and the ability to offer customers universal banking services with more focus on retail banking. The Bank has the largest network of online branches in Pakistan and offers various technology-based products and services to its diverse clientele through its network of more than 700 branches.
2.6- Allied Bank (2005 to date): In May 2005, Ibrahim Leasing Limited dissolved and the company was vested into Allied Bank Limited. ALL the shareholders were issued ABL shares instead of the all shares held by them. An application for the listing of ABL shares in all the Stock Exchange Companies of Pakistan was made; ABL was formally listed and the Banks share trading began on the following dates i.e. Islamabad Stock Exchange August 8, 2005, Lahore Stock Exchange August 10, 2005 and Karachi Stock Exchange August 17, 2005. Today, all Allied Bank Limited shareholders can trade in the Banks shares at their will and 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.
2.7- Ibraheem Group Assumes Control Of ABL: Ibrahim Group, through its different companies and sponsors owns more than 75% of Allied Bank. The Group apart from interest in financial sector is engaged in manufacturing of yarn and polyester staple fiber, trading and power generation.
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Internship Report 2012 The consortium of Ibrahim Leasing Limited And Ibrahim Group, which has injected Rs. 14.2 billion into capital of Allied Bank of Pakistan for acquiring its 325 million additional shares, today assumed the control of the bank. The Governor, State Bank of Pakistan, Dr. Ishrat Hussain handed over the relevant documents to Mr. Mohummad Naeem Mukhtar, Authorized Attorney of the consortium at a simple ceremony held at SBP, Karachi. Among those who present at the ceremony were Deputy Governor, Mr. Tawfiq A. Hussain and senior officials of the State Bank of Pakistan, representatives of the Allied Bank and the consortium. Speaking on the occasion, the State Bank Governor has termed the successful reconstruction of ABL as beneficial both for the organization as well as for banking industry. He expressed the hope that the transfer of the management of ABL to a strategic investor will turnaround the bank and usher in a new era of growth and stability in the banking sector. He stressed upon the new Board of the Bank to run it professionally, prudently and with the highest standards of corporate governance. It may be recalled that the auction of 325 million additional shares as a part of reconstruction of Allied Bank of Pakistan was held under the chairmanship of the deputy Governor, State Bank of Pakistan, Mr. Tawfiq A. Hussain at Islamabad on 23rd July, 2004. In the auction, the consortium of Ibrahim Leasing Limited And Ibrahim Group were the successful bidder as they offered the highest bid of Rs. 14.2 billion for acquiring these additional shares, which constitutes 75.35% of the revised capital of ABL. On July 24, 2004, The Federal Government approved the scheme for reconstruction of ABL under section 47 of the Banking Companies Ordinance 1962. After the approval of scheme by the Federal Government, the State Bank issued the Letter of Acceptance (LOA) to the consortium of Ibrahim Leasing Limited And Ibrahim Group on July 26, 2004 in terms of which the full payment of Rs. 14.2 billion was made on August 19, 2004. On receipt of full payment by the Allied Bank of Pakistan Limited and verification of the sources of funds by the State Bank of Pakistan, the control of the Bank was handed over to consortium of Ibrahim Leasing Limited And Ibrahim Group.
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3- General Profile of the Allied Bank Limited:

Allied Bank Limited operates by the following Vision, Mission & Values:
3.1- Vision:
To become a dynamic and efficient bank providing integrated solutions and the first choice of bank for all customers. 3.2- Mission: To provide value-added services to our customers To provide high-tech innovative solutions to meet customer requirements To create sustainable value through growth, efficiency and diversity for all Stakeholders To provide a challenging work environment, and reward dedicated team members To play a proactive role in contributing towards the society
3.3- Core values: The core values of Allied Bank are these: Integrity Excellence in Service High Performance Innovation and Growth
3.4- Objectives: Allied Bank has following objectives: Prime focus to earn profit by providing values to its customers To provide superior services to its customers
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Internship Report 2012 To provide assistance in the development of the commerce and trade industry Focus on blending skills and experience towards creating an enabling Environment Core focus is to inculcate a culture of collaboration intended to deliver world class customer service
4- Branch Network:
Online banking has been started and there are 834 CRBG (customer retail banking group) and 4 CIBG (corporate and investment banking group) in 300+ cities. There are total 601+ ATMs working only from ABL ltd. There are 4 groups which are divided into 30 regions. The groups are as follows; Central group 1 Central group 2 North group South group 241 branches 118 branches 259 branches 215 branches
4.1- Branch Banking Job Assignment: BRM (Branch relationship manager) CSM (Customer service manager ) GBO (General banking officer ) o CD In-charge o Credit In-charge/Officer o Trade In-charge/Officer o Lockers In-charge/Officer o Clearing In-charge/Officer o Remittance In-charge/Officer
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4.2- Business Groups CRBG CIBG TG OG A&RRG CG RMG SAMG HRG ITG CAG BSIG FG (customer retail banking group) (corporate & Investment banking group} (treasury group) (operations group) (audit & risk review group) (compliance group, SQG ) (risk management group ) (special asset management group ) (human resource group ) (information technology group ) (corporate affairs group ) (business system implementation group ) (finance group ) Table 1: Performance & Achievements
Years
Profit
Deposits
Advances
TotalAssets Equity
NPLS
2010 2011
8.2 10.2
371.3 399.6
267.78 262.14
449.9 515.7
35.98 43.35
18.7 20.5
In 2011, ABL ltd achieved two prestigious awards; o Bank of the year in Pakistan in The bankers magazines o Best retail bank in Pakistan Asian banker
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5- Management:
5.1Board of directors: The people who draw the picture of the organization on the broader canvas of Strategy and planning, the pioneers of prosperity and world of wisdom that paves The path to long term success
Mr. Mohammad Naeem Mukhtar Mr. Mohammad Aftab Manzoor Mr. Khalid A. Sherwani Mr. Pervaiz Iqbal Butt Mr. Mohammad Waseem Mukhtar Mr. Farrakh Qayyum Mr. Sheikh Mukhtar Ahmed Mr. Abdul Aziz Khan Mr. Tasneem M. Noorani Mr. Sheikh Jalees Ahmed Mrs. Nazrat Bashir Mr. Mubashir A. Akhtar
Chairman (CEO) President & (CEO) Director Director Director Director Director Director Director Director Director
5.2-
Executive committee: President & (CEO) Senior Executive Vice President Head Credit Head I.T & Financial Officer Head Islamic Banking & Planning Division Head Human Resource Head Treasury Head Business Promotion Head Special Vigilance Unit
Mr. Khalid A. Sherwani Mr. M. Naveed Masud Mr. Akhter Ali Khan Mr. Tahir Saeed Effendi Mr. Mohammad Yaqoob Mr. Masud A. Sidique Mr. Anwar Zaki Mr. Khalid Mehboob Mr. Sayed Mujtaba Gillani
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5.3- The Management:

The brilliants whose passion is dedicated to discover newer ways to make The organization goals reality
Mr. Asim Tufail Mr. Fareed Vardag Mr. Iqbal Zaidi Mr. Mohammad Abbas Sheikh Mr. Mohammad Aftab Manzoor Mr. Muhammad Jawaid Iqbal Mr. Muhammad Yaseen Mr. Mujahid Ali Mr. Shafique Ahmed Uqaili Mr. Khawaja Mohammad Almas Mr. Tahir Hassan Qureshi Mr. Tariq Mehmood Mr. Waheed ur Rehman Mr. Zia Ijaz
(Group Chief, Consumer & Personal Banking) (Chief Risk Officer) (Group Chief, Compliance) (Group Chief, Special Assets Management) (Chief Executive Officer) (Group Chief, Corporate & Investment Banking) (Group Chief, Treasury) (Group Chief, Information Technology) (Group Chief, Human Resources) (Head, Core Banking Projects) (Chief Financial Officer) (Group Chief, Operations) (Company Secretary) (Group Chief, Commercial & Retail Banking)
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6- Products:
In line with the Banks aim to provide a host of products and services to its customers, substantial ground work has been done to establish a strong consumer banking business. Furthermore, to achieve this objective, professionals from across the industry have been recruited into areas of product development, sales, credit policy, research, consumer analytics, call centers and service quality departments.
6.1- Phone Banking: Allied Bank is focused on delivering exceptional services to its customers that would strengthen the relationship and build Loyalty. To make banking experience quick, efficient, secure and easy, Allied Bank of Pakistan now offer its customers 24/7 Phone Banking Services. Allied Phone Banking provides its customers immense comfort! In addition, Allied customers can also avail a host of services through automated Allied Phone Banking (IVR/Self Service Banking) that lets them use their telephone keypad to Inquire about their financial balance/transactions.
6.2- Allied Phone Banking Services:
Dial - 0800-22522 to get absolute Banking freedom 6.3- Branch Banking: 6.3.1- Inquiry A/C balance Statement details Product information
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6.3.2- Transactions
Cheque book request TPIN issuance & re-issuance ATM PIN issuance & re-issuance PO/DD & Bank certificate Funds transfer
6.4- Internet Banking: 6.4.1- Banking at your fingertips Allied Direct Internet Banking offers convenience to its customers to manage and control their banking and finances - when they want to, where they want to! So, just get clicking. Allied Direct Internet Banking is; Simple and Convenient Secure and Faster 24X7 Account Access
6.5- Online Banking: Allied Online Banking is a unique service being offering from Allied Bank. Through this service, account in Allied Bank is available to customers from any of ABL branches countrywide. No matter where customers are in the country and whichever branch their account is maintained at, customer can have their cheque cashed at any of ABL 757 online branches located in 250 cities. Customers can also use the service, from any branch, to deposit cash for instant credit into their account or any other account in Allied Bank. Similarly, the account-to-account Funds Transfer facility is also available for instant remittance. Customers cheque drawn from a remote branch for credit into a beneficiarys account or encashment of a specified amount can also be presented by a third person at any branch. Whats more, making a Balance Inquiry and getting an Account Statement are additional services available to Account holders from remote branches. Allied Online provides a secure, efficient and convenient facility for making payments to beneficiary accounts from any of ABL branches countrywide. Corporate customers requiring fund collection or a disbursement facility can use it for cash management services.
Department of Commerce Bahauddin Zakarya University Multan Page 23
7- Allied ATM Networks:

Allied Bank has a vast network of over 460 ATMs installed in over 130 cities, which continues to grow at a rapid pace. 7.11- Link Network: Additionally, Allied Bank is a member of the 1-LINK ATM sharing switch comprising of over 2,000 ATMs nationwide, therefore, giving its Allied Cash + Shop Visa Debit Card holders access to even more ATMs across the country. The "1-Link Switch" has the following Bank members:
ABN Amro Bank KASB Bank Limited Standard Limited Al Baraka Islamic Bank Bankislami Pakistan Limited Meezan Bank Limited Union Bank Limited Allied Bank Limited Crescent Commercial Bank Limited National Bank of Pakistan United Bank Limited Askari Commercial Bank Limited Dubai Islamic Bank Pakistan Limited Chartered Bank Pakistan NIB Bank Limited MyBank Limited Atlas Bank Limited Emirates Global Islamic Bank Limited PICIC Commercial Bank Limited Tameer Micro Finance Bank Limited Bank AL Habib Limited Faysal Bank Limited Soneri Bank Limited Habib Bank Limited Bank Alfalah Limited First Dawood Islamic Bank Limited
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Internship Report 2012 7.2M-NET Network:
The Allied Cash+Shop Visa Debit Card can also be used at M Net ATMs, for cash withdrawal.
The "M-Net Switch" has the following Bank members:
JS Bank (American Express Bank) Bank of Khyber Bank of Punjab Citibank First Women Bank Limited Habib Metropolitan Bank HSBC Bank Muslim Commercial Bank Saudi Pak Commercial Bank Prime Commercial Bank
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First Week: 8- FINANCIAL PRODUCTS:

8.1Types of finance: Short Term Finance
Medium Term Finance Long Term Finance
8.1.1- Short Term Finance:

Allied Bank Ltd. receives the saving of the people and lends it for short term to its customers. Short-term finance is generally given for a period of one year or less in duration.
8.1.2- Medium Term Finance:

The duration range of the intermediate term finance is from one year to three years. It is also called term loan. Intermediate term finance is usually given for the expansion of an existing business or for the purchase of new equipment.
8.1.2- Long Term Finance

This type of finance is required for the period of more than five years. Long term finance is generally given for the compilation of big projects, for the construction of building and for the purchase of machineries.
8.1.3- Producer of Applying for Loan:

Any customer who applies for loan should have an account (usually current account) with ABL branch concerned. That account must be in running position. When approval from head office is given, branch gives tern & condition to the party. Bank does not advance 100% loan against a security, rather the profit margin is different in different type of loan.
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9- Departments:
Allied Bank Chowk Nawan Shehr Branch Multan.
(Branch code = 0248) Address: Chowk Nawan Shehr Multan I did my internship of six weeks in ABL Chowk Nawan Shehr Branch (0248) from 03-07-12 to 13-08-12. It is one of the busiest branches of ABL, which is yet to be renovated. I selected this branch because of two reasons. First, its a retail branch and has a large volume so more opportunities to learn and secondly its near to my residence and is using TEMENOS software. In the same branch different departments of ABL are working. So I got the opportunity to know briefly about every department
9.1- Current Saving Department:

In ABL Branch current saving department mainly deals with cheques, vouchers and advices. First of all a cheque holder have to present his/her cheque to the person responsible for issuing the tokens. . Then cheque is passed on to the computer operator to entry it in computer. Afterward it will go for signature verification after which it will be given to cashier for payment.
9.2- Computer Operations:

In ABL Chowk Nawan Shehr Branch the computer section performs several duties that are as under;
9.2.1- Daily Transactions:

To record all the transactions in case of deposits made by the people and also to record all the withdrawals made by the people or customers. Each transaction has to be recorded in its appropriate head of account with the help of prescribed codes.
9.2.2- Vouchers:
To record all the vouchers made by the remittance department. Remittance department have to prepare debit and credit vouchers for about every transaction recorded in their department. Then these vouchers are sent to computer operator to record those in computer. Department of Commerce Bahauddin Zakarya University Multan Page 27
9.2.3- Advices:
To record all advices received from other branches. Most of the-inter branch or intra branchremittances are subject to ultimate receipt of advices from the corresponding branch to materialize the transactions. These advices also have to be recorded in computer.
9.2.4- Statements:
To close the daily record a number of statements have to be printed out. Statements like: Days transactions (sequence) Overdrawn facilitated a/c statement Markup sheet Inter branch transactions Detail of PLS and Current a/c Days transactions (a/c wise) Operative, Dormant, Inoperative and Unclaimed a/c All ATM transactions Detail of GL entries (official & non customer transactions) Summary of all a/c (debits, credits & balances) Profit due, transferred, disbursed, etc.
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Second & Third Week:

9.3- Account Department: 9.3.1- Deposits the Life Blood of a Bank:
Bank borrowing funds from outside parties is more important because the entire banking system is based on it. Receiving of deposits is a basic function of all commercial banks. Commercial banks do not receive these deposited for safekeeping purpose only. When the bank receives the amount of deposited as a depositor, it become the owner of it. The bank may therefore use these deposits, as it deems appropriate. But there is an implicit agreement that the amount owned by the bank will be paid back to the depositors on demand or after a specified period of time. The borrowed capital of the bank is than the bank own capital. Banks borrowing is mostly in the form of deposits. These deposits are lend -out to different parties. Larger the difference between the rate at which these deposits are borrowed and the rate at which they lend-out the greater will be the profit margin of the bank. Larger the funds lend-out the greater will be the return earned on them and greater the amount of return on these deposits earned greater will be the profit for the bank. It is because of this interrelated relationship. Deposits are referred to as the life blood small for any banking sector.
9.4- Types of Account:

There are numbers of account that ABL offers to its customer keeping in mind their needs and dealing
9.4.1- Saving Bank Account P & Loss Account

In Pakistan the saving Bank accounts are known as profit and profit and loss sharing accounts (PLS A/C) fowling the illumination of bank. The owners of such account are not allowed to withdraw money more than once are twice a week. In case of withdrawal of large sum, the depositor is required to give to prior notices a week or two. Thus the bankers are not required is always available to bank for giving to loans to their customers. Thus these deposits also serves as source of credit certain by the commercial banks. The rate or profit on this type of account varies from time to time. All the commercial banks declare the rate of profit every year that is paid on these accounts on the basis of their monthly credit balance. The bank will determine the proportion of profit & its decision will be final. Profit will be determined on daily product basis while it will be paid on monthly basis & will be paid on the minimum balance between the Department of Commerce Bahauddin Zakarya University Multan
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first day & last day of the month. Zakat will be deducted on the exceeding amount as exempted from the Zakat deduction. Taxes will be imposed according to the rules & regulation. In Pakistan post offices & national saving centers also maintain this savings bank account to encourage saving habits among the people. At the time of opening this account, a minimum amount of Rs.500 is to be deposited. Subsequently the account is opened & account number is located. The depositor is given a cheque book. The depositors who are wishing to close his account are required to present his cheques to the bank in order to draw the credit balance and to close the account. In this type of account you can open joint account also which can be operated by anyone.
9.4.2- Current Account:

There is no limit of withdraw of money from these accounts. In practice the bankers do not allow any profit to such deposits in Pakistan. The customers are required maintaining the minimum credit balance in their account in case of failing incidental charges are recovered from defaulters. This is because the depositors may withdraw current deposits at any time and as such the bank is not entirely free to employ such deposits. In general, the bank allows the overdraft facilities to current account holders & the prevailing rate of markup is charged from these customers. In ABL the minimum amount required to open the current account is Rs. 500. No profit is paid to account beside this that the account holder has the facility to taking s much money as he wants. Individual account is opened in the name of the single personal one person on whose name it is opened only conduct it. While two opens joint account and partnership account are more person and the bank fallow their instructions for the conduct of the account. Similarly limited companies can also open their current account.
9.4.3- Fixed Deposit Account/Term Deposits:

These deposits are also called as time deposits because these deposits are based on the fixed duration. The period for which these deposits are kept with bank are ranged from seven days to ten years in light of the agreement between the customer and the banker. The profit allowed on these account depend on the duration longer the duration of the deposits the higher will be the rate of profit. The operation of fixed account is different from saving & current accounts. Every time money is deposited with the bank an application from filled and the bank issue a fixed deposit receipt for amount deposited along with specific period. Fixed deposit receipt is given to the depositor and the bank retains the counterfoil of the same receipt. Fixed term deposits may be in the joint names of two or more person. The payment to one of those people will not discharge by the bank without the authority of others.
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9.5- Opening and Operation of Bank Account:

As discuss earlier there is a prescribed procedure for opening different types of account. Following steps re followed while opening a new account.
9.5.1- Application from for Opening of Accounting:

A person who wishes to open a bank account is required to complete this from the personal information is to be furnished. The application signs the declaration to effect that he has understood the rules and regulation of the bank.
9.5.2- Introduction:
As required by the banking law the new customer needs to be introduced by the account holder of the same branch where the account is being opened. The manager or any other bank officer may introduce the new customer if they know them personally.
9.5.3- Signature card:

At the time of opening an account a specimen signature card containing two signature of the customer is required which the manager of the branch attaches with application form. During the operation of account the signature is verified when the cheque is presented for payment.
9.5.4- Cheque Book:

After completing formalities for opening saving and current a cheque books issued to the customer for withdrawing cash from his or her account at the time of need. The cheque contains minimum 25 pages & maximum 100 pages. The bank also charges excise duty on cheque book.
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Fourth Week:
9.6- Remittances Department:
Another important department in ABL Chowk Nawan Shehr Branch is Remittances Department. The remittances department transfers the funds from one bank to other bank and from one place to another place. In remittances department the collection take place. The ABL made payment of only open cheques on the counter and prohibits the payment of crossed cheques. ABL transfers money from one place to another by the following means:
9.6.1- Mail Transfer:

When a customer requests the bank to transfer his money from this bank to any other bank or the branch of some other bank, the first thing he has to do is to fill an application form. In which he states that he/she wants to transfer the money from this bank to that bank by mail. If the customer is the account holder of the bank, operating personal will proceed further with steps like: Writing a debit voucher for a/c holders a/c Preparing an advice in favor of stated bank/branch Writing credit voucher for GL
Mail the advice, if the customer is not the account holder of this bank, then firstly, he has to deposit the money and then above procedure will be adopted to transfer his money.
9.6.2- Telegraphic Transfer:

With the changing requirements of the customer, ABL has introduced the fastest transfer of money. The sender is required to apply through a form in which he will give all the necessary details about the sender and beneficiary. The sender deposits the money to be transferred plus bank charges at the bank counter. The remittances officials send a telegram to concerned branch with specified code words and the receiving branch makes payment to the beneficiary. Vouchers are sent by ordinary mail to keep the record. On TT, no excise duty is charged only commission and telegram charges are charged.
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9.6.3- Pay Order:

Pay order is the most convenient simple and secure way of transfer of money. It is issued by, drawn upon and payable by the same branch of the bank. It is neither transferable nor negotiable and as such it is payable to the payee named there in. The following are the parties to a pay order. Purchaser is a person, firm, company or local authority. Issuing/paying branch is one which issues/pays on presentation. Payee is a person named there in.
9.6.4- Demand Draft:

Demand Draft is another way of transfer of money from one bank to another bank. Unlike pay order, a form is required to be filled for the issuance of the demand draft in which necessary particulars about the beneficiary and sender are given. The sender deposits the amount of DD plus commission and other charges on the bank counter, from where he is given a receipt and in accordance with this receipt he is issued. The following are the main essential of draft: It is a Negotiable Instrument. Filling a form and deposited the amount written on it prepare 2 Draft. It is a written order to its branches or to another bank to pay the stated amount on draft.
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Fifth Week:
9.7- Cash Department:
This is the most important and critical department in a Bank. There are two basic functions performed by the cash department. These are
9.7.1- Receipts:
An individual who has account in the Bank can deposit money in his account. For deposit of the money the individual has to fill the deposit slip in which the account holder writes his name, Account number, amount of the money both in figures and in words. After filling the deposit slip the Cash amount along with the deposit slip is submitted with the cashier. The cashier collects the cash and counts it and after verification the cashier stamps the deposit slip. One part of the deposit slip is given back to the customer and the other part of the deposit slip remains with the bank for the record purposes The cashier also record the deposits made by the customers in credit sheets daily. The deposits of all customers of the bank are controlled by mean of ledger account. Every customer has its own ledger account and has separate ledger cards in which his / her total record is kept. Bill collection is also one of the main functions of bank. Cashier has to prepare a list of bills serial number, a copy of which is to be sent to the corresponding organization.
9.7.2- Payments:
The procedure of clearance of a cheque or payments is as following. First of all the customer presents his cheque to the cashier the cashier records the account number and the amount, which is to be drawn. Then the cashier check the cheque number in the computer for the verification whether the account holder has such amount in his account which he is demanding or not. If the computer passes the cheque, the Passing officer signs the cheque and sent it to the cash counter then cashier pays the written amount to the customer and then in the end cashier records the amount paid in computer.
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Sixth Week:
9.8- Clearing Department:
In clearing process, if the account holder of ABL receives the cheque of other bank like City Bank, Habib Bank Limited etc., and he submits it in ABL branch to be cashed. At the same time the clearing process starts. First the bank name. Cheque number and the amount are written in the register. After this three kind of stamps are required first bank name stamp, secondly clearing stamp of next date and If the cheque is not local then the intercity clearing stamp is required. Some cheques are local and some are outstation. The institution N.I.F.T. provides the services in clearing the cheque. They send the different cheque to different banks. The N.I.F.T service is only in few cities, like Karachi, Lahore, and Rawalpindi. The cheque of inter city is send through N.I.F.T. And where, the N.I.F.T service is not available so the cheque is sent through T.C.S. The clearance of cheque is informed through advice. Some cheque is not passed so they should return so Rs. 100 is deducted and if the cheque is intercity then the postage charges is deducted. For this purpose the Debit & Credit voucher is used. When the cheque is cleared the today stamp is required. Some cheque is drawn on ABL. This is called outward clearing. These cheques will be entered in the outward clearing register. And the advice is sent for the clearance of cheques. The account holder account is credited.
9.8.1- Out ward Bill for Collection:

OBC means the cheque of other banks. When they sent OBC the OBC is credit & OBR is debited and the advice is made on that time, one copy is remain in the bank and the other copy is sent to the related branch. When they realized the opposite entry is made. It is entered in the OBC register. The income A\c commission is credited, and postage
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10-
SWOT Analysis:
The SWOT analysis is a comprehensive and critical overview of the operations, procedures, rules and regulations, services and other related activities, the analysis include the analysis of ABL Bank Nawan Shehr branche in the light of the entire branch and Bank specific variables which directly or indirectly affect the operations of the branch. The tool selected for the analysis of organization is SWOT analysis. SWOT analysis is an acronym that stands for Strengths, Weaknesses, Opportunity and Threats. This is a careful evaluation of an organizations strengths to avail an opportunity by overcoming its weaknesses and phasing out all he threats to its survival in order to grow and survive. 10.1- Strengths: The branch is situated in commercial area were business activities perform greater as compare to residential area. Thus it increases the number of customers. The Branch has the most experienced and the least experienced staff, which is a good combination of experienced heads and exuberance of youth. It holds the Hundi Accounts, where the payments are made through checks. This process provides an opportunity to the Branch to have more of the Hundi customers as the Bank customers. This branch is provided with 3 fax machines, more than 7 telephone connections, which makes communication easier with different branches The branch is linked through an online network of 755 Branches, thus enabling them to serve customer in better way. This branch is provided with latest computer which increases the speed of computer work. The branch is situated in the commercial hub of Multan. This location provides a competitive edge to the Branch.
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Internship Report 2012 10.2- Weaknesses: The branch lacks some physical facilities such as clean washrooms which can affect employees performance The layout of the branch is such that it is hindering the flow of work on one hand and the documents are lying exposed which can be easily taken away by any person entering the branch. The job distribution is not up to the mark. The immediate result of this immediate result of which is: The filing system is not up-to-date. Much time is wasted while searching for even a week old document. The staff spent more time in collections than required. Delays were observed because the prescribed procedures are not followed. Though ABL, Nawan Shehr branch in the area it lack specialized counters or facilities such as: Investment advisory counters; Leasing or leasing arrangements; Credit services.
The all branches of Allied bank in the city are closely located where most of the services offered are not at all differentiated. No efforts are made to recover the outstanding debts.
There is no facility for receiving and satisfying complaints and inviting suggestions. Foreign currency accounts are not entertained. The main reason for these negative responses that the staff is not trained in dealing foreign currency accounts. Customers coming to the Bank for TTs TCs etc. are not received with open hearts and thus deprives the bank of revenues. Some shortcomings on part of Allied Bank of Pakistan, which affects the operations of the Nawan Shehr branch:
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Internship Report 2012 There is a lack of functional and proper research and development, which could scan the micro and macro environmental data for future planning and strategy. Financial audits are conducted but operational audits have not received proper attention as much as it should get.
10.3- Opportunities:
A considerable portion of the labor force of the area is serving overseas. Their families can be encouraged to use ABL as channel for remittances. The Internet facility in the area provides an opportunity to ABL to get Online. The Bank has the basic infrastructure, which can facilitate the online process. The location of the ABL, Chowk Nawan Shehr branch itself provides an opportunity to ABL to get more and less cost deposits. The group from its survey and analysis of IT companies has found that there are many companies which are not satisfied with its current bank, so the Nawan Shehr branch with its superior service quality and long working hours can capture those customers.
10.4- Threats:
The biggest threat to the operational success of the branch is the better competitors services. Many private sector banks are offering higher rates of return to customers than Allied Bank of Pakistan. One of the biggest to the ABL, Chowk Nawan Shehr branch is the increasing rate of dissatisfies customers. Most of these customers were observed to be dissatisfied with the delays in their servicing. The greatest threats to the performance of ABL, Chowk Nawan Shehr branch are the decreasing morale of employees. They feel that they are not provided with bonuses. They are not given proper attention to have a say in the annual meetings. The proxy forms are signed on their behalf without letting them know. High-pressure interest groups are developing which poses a constant threat to Allied Bank.
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11- Findings and Recommendations:

The critical analysis ABL in the previous section is the representation of its past, mirror of its present, and an insight into its future. The past data of ABL Chowk Nawan Shehr branch enabled me to study the organization in a historical perspective and understand the nuisances in the banking operations. Study of the present of ABL helped me evaluate the organization in comparison to its future and competitors. The data obtained from the analysis of its present and future in combination with my professional studies resulted in some suggestions and implementation plans, which can help to increase the profitability and operational success of the ABL Chowk Nawan Shehr Multan. Some of the major findings suggestions are discussed.
11.1- Physical Facilities:

The physical facilities or the layout are the most fundamental features in an organization, which the customers observe in forming an opinion, perception or idea about the organization. Therefore, every organization tries to make a good first impression on customers through the presentation of its physical facilities or layout. The physical facilities in the branch are not up to the mark, which requires timely changes to provide good environment to customers. The suggested changes and corrective actions are gives below: The lighting system must be improved and all the out of use lights must be replaced. There is always a stinking smell in the Bank due to the out of order condition of washroom. Therefore the washroom must be brought into order to remover this unpleasant smell. Generators should be made available to the branch to minimize the disruptions due to power failure. Newspaper should be provided to the customers to avoid the pain of waiting long. A cash counting machine can help reduce the time spent in counting cash.
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11.2- Staff Availability:

The existing staff in the Bank is overburdened due to the non-availability of more staff. Staff in the branch must be in proportion to the customer has so as to expedite the workflow, avoid overloading of staff and remove the customers grievances arising mainly due to delay in workflow. The additional staff required is in the fallowing categories. More technically trained staff should be added to the existing staff strength. One staff assistant or grade 2 officers properly trained in computer and sufficiently trained in foreign currency accounts. One employee of grade 4 should be hire on daily wages or contract, to maintain filing.
11.3- Employees commitment:

The decreasing commitment of employees can be increased by introducing an effective performance appraisal system, which can reward and recognize the achievements and services of employees for the Bank. The appraisal system must have the following features.
11.3.1- Feed Back:

Periodically provided to employees and recognizing their efforts through reward (bonuses) and publicly appreciation.
11.3.2- Uniform:
The appraisal system must be uniform in evaluating all the employees without any discrimination.
11.3.3- Objectivity:
The appraisal system must be based on facts and figures and objective evaluation of the facts on grounds.
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11.4- Simplification of Advances:

The biggest source of the bank revenue is advances. The advances of ABL, Nawan Shehr branch are on him decreasing trend, causing a decrease in the revenue for the bank. The bank should make the advance procedure simple and quick to meet the customers requirements. The following steps are suggested for simplifying the advance procedure. Increasing the discretion of manager for the amount of advance to Rs. 100,000. Speeding up the process of investigation and verification. Expanding its customer base.
11.5- Marketing Concept:

The concept of marketing should be followed in every aspect of t he organization. Generally, the banks staff considers that marketing is to go to customers, beg them for opening an account with the Bank and to abide by his every just and unjust action. They should be taught that marketing is not only to go to customers only. A customer can also be attracted by provided customer oriented services, showing empathy to your customers and attending him personally.
11.6- Customer Orientation:

Deposits are the main source of funds for commercial banks. Therefore, the priority of every bank is to increase the number and amount of deposits. The key to successful business does not lie in simply attracting new customers. The real success is to maintain in the old customers and attract new customers at the same time because retaining a customer is more difficult than attracting new customers. Every depositor should be given equal importance and there should be no differentiation between customers so that every customer feels himself as much important as the other customer. The attitude of the staff should be friendly to all the customers. The customers should be taken to the concerned person or guided friendly if the concerned person is not available. The attitude of thats not my job should not exist anymore.
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11.7- Mobilization of Less Cost Deposits:

The analysis of expenses shows that 43% of expenses of the bank are the payments on fixed deposits, which is a very high proportion. Apart from this the interest earned on advances Rs. 0.265 million is smaller than the interest paid on different deposits Rs. 4.1 millions. The bank should launch a campaign to get less cost deposits much as high amount current account as well as low cost PLS saving accounts.
11.8- Information Access:

The Bank should provide information to all the present and potential customers relating to the new products, services, some services fee structure and other matters, which are likely to affect the customers. It should be made sure that all the customers have access to this information. Conveying information is of no use, unless, there is some feedback from the customers. The following measures are suggested to implement this suggestion. Brochures, handouts, pamphlets and other printed reports must be provided to customers, which should provide all the information necessary to attract and retain customers and to satisfy the customers need for more information. Personal contacts with the customers can help in providing information to customers. All the
customers must be provided a chance to get the desired information by personal contact with the Bank staff. Complaint and suggestion box should be maintained at the door of the Bank where the customers can point out drawbacks in the customers services and put forward their suggestions on his improvement of the services quality of the Bank.
11.9- Performance Audit:

The financial audit of the bank is conducted on regular basis both as a surprise and routine audit. However, the performance and system audits are completely ignored which, otherwise, should have been a compulsory part of the auditing services of the Bank. The immediate outcome of ignoring performance outcome is shortcoming in the non-financial aspects of this organization such as customer relations, lack of necessary facilities, motivation of employees, and the control of manager.
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In the light of the above facts it is suggested that the performance audit of the bank must be carried out on both regular and surprise basis to keep the Bank competitive in the run of for more customers, more deposits and high profitability.
11.10- Campaign for Increasing the Deposits:

The numbers of account holders in a bank make a significant contribution to the deposits of the Bank and determine its business volume, profits and size of a bank. Therefore, ABL, CHOWK NAWAN SHEHR branch must a clear plan for increasing the number of accounts. The details of plan for increasing the number of accounts are given in the implementation plan.
11.11- Increases in Business Share:

Along with concentrating on increasing the customer base, the Bank must also emphasize on securing the highest market share in other banking services such as issuance of letter of credit, foreign exchange, remittances, bills identification of productive secure and easily realizable advances etc. to achieve this strategy the Bank should have a clear plans with the consent of the higher management. The plan must be divided into different periods weekly, monthly, semiannual and annual. Every stage of the plan must be monitored and controlled on regular basis.
12.12- ATM Network Problem:

I have found some problems with ATM network. Many customers have complaints that their requests placed on ATMs dont carry out. It is mainly because of bad PTCL lines. Distortion in lines of PTCL restricts the execution of requests placed on ATM machines by customers. Although there is a network of dedicated lines for ATM machines, a request may not be successfully carried out because of complicated request processing. A successful execution of a request needs to be approved from three places: The branch (online) with which the customer (placing the request) have the account. Main branch of that area (city). The head office (in Karachi).
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So connecting to all of these three places simultaneously and getting the request approved is a complicated process. However management claims that there is nothing wrong with processing. The only problem lies with PCL lines. So to solve this problem the bank should hire technicians who can work during public holidays to make the ATM useable while it shows any distortion.
12.13- Cash Deposits Using ATM:

Now-a-days in foreign countries ATM machines are also used for deposits of money and utility bills can be paid up through ATM. But in Pakistan these services have not been utilized yet. So if ABL upgrades its ATM technology so definitely it will get the competitive advantage over other banks.
12.14- Networking among Banks:

In allied bank the networking is only done with in the bank, means the customer cant transfer his funds to other bank through online. The account holder who has the debit card can transfer his money to other bank account through ATM. But the customer who doesnt have account but someone gave him a Habib bank cheque to transfer it online through near situated Allied bank. So the allied bank cant transfer it to Habib bank via online. So I recommend an idea that there should be a networking among different banks so that they can transfer funds via online.
12.15- Online Loans:

I have found that there is no online facility to apply for a loan, whereas, in other banks especially in foreign banks the customer who have account in the same bank, can apply for the loan through internet. So that he can save his time from going physically to the bank.
12.16- Function of Credit Department:

The main function of the credit department is to lend money to the customer. Allied Bank Ltd. Lends money in the form of clean advances against promissory notes as well as secured advances against tangible and marketable securities. Beside these ABL also lend money against life policies and immovable property.
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12.16.1- Lien:
Lien is the bank right to withhold property until the claim on the property is paid. The bank looks at their lien as a protection against loss or overdraft or any other credit facility. In ordinary lien the borrower remains the owner of the property, but the actual or constructive possession remains with the creditor or bank though the borrower has no right to sell it.
12.16.2- Cash Credit:

In this the bank lends money to the borrower against tangible security. The total amount of the loan is not paid in one installment. The borrower has to pay markup on the amount borrowed. Cash credit is favorite loan for large commercial & industrial concern.
12.16.3- By Overdraft:
This the most common type of bank lending. When a borrower requires temporary accommodation, ABL allows its customer to withdraw an excess of the balance form their account which the borrowing customers have in credit and thus called overdraft. This facility is given to regular reliable & well established customer. When it is against collateral securities, it is called Secured Overdraft & when borrowing customer cannot offer any collateral security except his personal security then the accommodation is called Clean Overdraft
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References: References and sources used:

http://www.abl.com.pk/ Revise Credit hand book of ABL internal document. Data from credit approvals.
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Shahid ABL Internship Report-Final

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Internship Report 2012

INTERNSHIP REPORT ON ALLIED BANK LTD

Internship Report 2012

Internship Report On ABL Chowk Nawan Shehr Branch Multan

Signature External examiner Name

Department of Commerce Bahauddin Zakarya University Multan

Internship Report 2012

Department of Commerce Bahauddin Zakarya University Multan

Internship Report 2012

Department of Commerce Bahauddin Zakarya University Multan

Internship Report 2012

Department of Commerce Bahauddin Zakarya University Multan

Internship Report 2012

2- History and Background

3- General Profile of the Allied Bank Limited

Department of Commerce Bahauddin Zakarya University Multan

Internship Report 2012 5.3- The Management

7- Allied ATM Networks

10.1- Strengths 10.2- Weaknesses 10.3- Opportunities 10.4- Threats

Findings and Recommendations

11.1- Physical Facilities 11.2- Staff Availability

Department of Commerce Bahauddin Zakarya University Multan

Internship Report 2012

Department of Commerce Bahauddin Zakarya University Multan

Internship Report 2012

Department of Commerce Bahauddin Zakarya University Multan

Internship Report 2012 Online banking.

Banking System Today:

2- History and Background:

Department of Commerce Bahauddin Zakarya University Multan

Department of Commerce Bahauddin Zakarya University Multan

2.5- Allied Bank (1991-2004):

Department of Commerce Bahauddin Zakarya University Multan

Internship Report 2012

3- General Profile of the Allied Bank Limited:

Department of Commerce Bahauddin Zakarya University Multan

Department of Commerce Bahauddin Zakarya University Multan

Internship Report 2012

Department of Commerce Bahauddin Zakarya University Multan

Internship Report 2012

Internship Report 2012

5.3- The Management:

Department of Commerce Bahauddin Zakarya University Multan

Internship Report 2012

6.2- Allied Phone Banking Services:

Department of Commerce Bahauddin Zakarya University Multan

Internship Report 2012

Internship Report 2012

7- Allied ATM Networks:

Department of Commerce Bahauddin Zakarya University Multan

Internship Report 2012 7.2M-NET Network:

The "M-Net Switch" has the following Bank members:

Department of Commerce Bahauddin Zakarya University Multan

Internship Report 2012

First Week: 8- FINANCIAL PRODUCTS:

8.1.1- Short Term Finance:

8.1.2- Medium Term Finance:

8.1.2- Long Term Finance

8.1.3- Producer of Applying for Loan:

Department of Commerce Bahauddin Zakarya University Multan

Internship Report 2012

9.1- Current Saving Department: