Table of contents:

 Industry Profile
 Company profile
 Company business processes
 Competitors
 Company departmental functions
 SWOT analysis of the company
 Identification of plausible problem
 Recommendations for a suitable course of action
 Conclusion
 Bibliography
 Appendices
 Acknowledgement

First of all ,I want to express all my humble thanks to Allah

who is very sensitive about each and every activity of all
his men and without whose help I am unable to
accomplish any objective in my life .All respect to his Holy
Prophet HAZRAT MUHAMMAD (peace be upon him) who
brought the light of knowledge when the humanity was
wandering in the desert of ignorance
Secondly, I am grateful to my prestigious institute that
made his learning opportunity a part of our education .
I would also thank to all the staff of Allied Bank who give
me an opportunity to work in the bank and gave me a
chance to explore my knowledge .
I submit my earnest thank to my affectionate parents,who
always remain at my back to support me , I can never give
the return of their untired struggle for me ,but I can only
prove myself as they expect from me. And I am also
grateful to all my family members and all my friends for
their moral support during my study and especially in this
internship program .I want to pay gratitude to all
persons,who had helped me in completing this support.
Nimra Khalid
314 1972
 EXECUTIVE SUMMARY
This report is about my internship program with Allied Bank
Limited. In this comprehensive report , I have discussed about
every major aspect of the bank which I observed and preceived
during my internship program .In this report you will the report
about bank right from its incorporation to the current position .
Along with it the processes , policies and procedures of the
bank are also discussed in detail.
During my internship program I mainly worked in General
Banking & Finance .All the departments have been discussed in
detail and all the policies and procedures have been described
thoroughly.
As the main purpose of internship is to learn by working in
practical environment and to apply the knowledge acquired
during the studies in a real world scenario in order to tackle
the problems using the knowledge and skills learned during the
Academic process, In this report the detailed analysis of the
organization has been done and all the financial , technical,
managerial and strategic aspects have been evaluated to
analyze the current position of the organization
In the end the learning and experiences section consist of all
policies and processes which I have undergone through and
learned during my internship program.
INTRODUCTION TO INDUSTRY PROFILE
INDUSTRY PROFILE
Pakistan’s national business environment is characterized by
abundance of semi-skilled and low wage labour ,moderate
natural resources, poor infrastructure , high rates of corruption
, poor governance, moderate level of industry collaboration and
low scientific research on the factor side . The contest of the
firm strategy and rivalry can be described as highly regulated
bureaucratic business environment, high tariffs , no substantial
presence of foreign companies and static corporate culture.
A bank is a place where they lend you a shadow in fair
weather and ask for it back when it begins to rain.
Robert Frost
Banking sector is always a very important sector for every
economy .Same is the case with Pakistan . Bank perform
various duties which are dissimilar in nature .The primary and
most important duty is to provide a safeguard for national asset
.Other functions include profit making from the public funds
and lending of money to the burrowers . The while of the
economy and financial transactions are carried out through
banking institutions these days. Banking system in Pakistan
have developed a lot in the past few years. Pakistan today has a
very good banking network in all over the Pakistan
compromising of a State Bank, which is a federal entity and has
a central role in the banking sector of Pakistan. State bank has a
very wide range of various private and national commercial and
other banks that deal in specific areas such as consumer
finance, agriculture and other financial institutions. State bank
also regulate banking sector through its policies and physical
inspection. However Banking System of Pakistan has adopted
rough and tough policies.

Pakistan on the time of its creation i.e in 1947 did not have a
good banking system in it. Pakistani banking sector portrayed a
marvelous performance in first two decades and got a good
banking system. State Bank of Pakistan was constituted on 1st
July 1948. The role of central bank is to regulate, observe and
monitor and control the activities and all operations of all the
commercial banks in Pakistan. State bank of Pakistan has many
a set of regulations which are to be followed by all other banks
in the country these regulations are called “Prudential
Regulations”. Prudential Regulations are updated time to time
to ensure the implementation of the current scenario.

Other important banking decisions such as discount rates and

minimum reserves which must be maintained by every bank
are also made by the state bank of Pakistan. State bank also
hold the federal reserve of the country and also lend money to
the government and other commercial banks in the country.
One of the bad patch in the history of Pakistani banking
industry was the Zulfiqar Ali Bhutto’s era. He decided to
nationalize all the private banks. After nationalization of the
banks, their efficiency was severely affected. They became the
victims of political interference and pressures. This became a
reason of the lowering nation’s currency of Pakistan and due to
the devaluation in the currency balance of payments was
severly hurt.

Now Pakistani banks are prospering and providing very good

customer services to its customers like online banking and
mobile banking etc. ATM cards and debit and credit cards have
entirely changed the banking experience in the country. Now
there are more private banks than government banks and they
all are working well. Pakistan has the one of worlds’ strongest
banking system which has a sound stand from the recent world
crisis of banking system in America and other European
countries.

The strongest bank in the United states will survive only so long
as the people will have sufficient confidence in it to keep their
money there.
Construction

Electricity, Gas & Water

Trade (wholesale & Retail),

Resturants & Hotels
Transport, Storage &
Communication
Financing, Insurance & Business
Services
Community, & Personal Services

Agriculture, Forestry & Fishing

Mining & Quarring

 INTRODUCTION TO COMPANY PROFILE
COMPANY PROFILE

The brief history organization

Allied bank is the first muslim bank to have been established on
the territory that became Pakistan . Established in December
1942 as the asia bank at Lahore with a paid up share capital of
Rs. 0.431 Million in its first eighteen month of business. Total
asset then amounted to Rs.0.572 million. Today Allied Bank’s
paid up Captal & Reserves amount to Rs. 10.5, deposit
exceeded Rs. 143 billion and total assets equal Rs.170 billion.
The Allied bank story is one of the dedication and commitment
to the professionalism adaptation to changing environmental
challenges resulting into all round growth and stability envied
and aspired many many.

The Pre Independence History (1942 to 1947)

In the early 1940’s 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
1880’s established a commanding presence in these
areas and industry ,trade and commerce in the undivided
subcontinent was completely dominated by them
.Banking in particular was an exclusive enclave of the
Hindus and it was widely believed and wrongly so, the
Muslims were tempramentally unsuited for this
profession.

Australasia Bank (1947 to 1974)

Australasia Bank was the only fully functional Muslim Bank on
Pakistan territory on August 14 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, Ludhiana , Delhi
and Agra) were closed down . New branches were opened in
Karachi, Rawalpindi, Lahore ,Sialkot , Sargodha , Jhang ,
Gujaranwala and Kasur. Later, its network spread to Multan
and Quetta . The bank financed trade in cloth and food grain
and thus played an important role in maintaining consumer
supply during riot affected early months in 1948. Despite the
difficult condition prevailing and the substantial set bank in the
bank’s business in India . Australasia Bank made a profit of Rs
50,000 during 1947-1948. By the end of 1970 it had 101
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 (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 employes. In
1993 the “First Allied Bank Modaraba (FABM) was
floated.

Allied Bank (2005)

In May 2005 Ibrahim Leasing Limited was amalgamated by
transfer to and vested in with into Allied Bank Limited. ILL
shareholders were issued ABL shares in lieu of the ILL shares
held by them .

ESOP Revolution
(Employee stock ownership plan)
Under the philosophy of ESOP ownership of an enterprise is
transferred to its employees who are in advantageous position
in running the enterprise . The added avantage of ESOP that it
strengthens the workers stake in the free enterprise system in
job securities better profitability and unique corporate culture
symbolizing family feelings and professional fraternity.
September 10,1991is the historical date . As on thiss date bank
become the country’s 1st bank to be reconstituted as an
institution jointly owned by its employees through the unique
concept of Employees Stock Ownership.

Privatization
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 institution of
Pakistan .
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.
IMPORTANT STATISTICS ABOUT ABL

Total customers
Employees
Total Branches
Utility Booths
Airport Booths
Total Clients in Lahore Region

OBJECTIVE OR PURPOSE OF INTERNSHIP

Two cogent reasons/ purposes of the study are following.

General Purpose/ Objective

 To get acquaintance to the banking operations.
 To know what sort of changes Finance brings in managerial activities.
 To see the application of our Professional studies especially.

Specific Purpose/ Objective

Specific purpose of the study includes:

 A partial fulfillment as a requirement for the completion of BBA.

 To objectively observe the operations of Allied Bank Ltd in general and the operations of ABL,
Regency plaza credit card Branch, Faisalabad in the light of our professional studies.
OBJECTIVES OF STUDYING THE ORGANIZATION ABL
The objectives or purposes of internship are to learn the existing accounting and finance practices being
followed in the bank. The main objectives are given as under:

1. To understand financial system of banking.

2. To understand role of ABL in financial system of country.
3. To understand the application of theoretical knowledge in practical life.
4. To attain specialization in banking and finance.
5. To understand application of Prudential Regulation issued by SBP.
6. I want to get job in bank so I selected Bank for Studying.
7. Allied bank is leading bank in the country.
8. To study the accounting and financial internal control system of Allied Bank limited.
9. To review its appraisal and auditing system.
10. To analyze the financial system and financial reports.
11. To study the role of ABL in banking sector of Pakistan.
12. To get thorough knowledge of different credits offered by the bank.
13. To be a part of competitive environment and enhance my skills.
14. To printout/ identify problems, opportunities and providing recommendation there on.
15. To develop understanding of finance and accounting function integrated, Allied Bank Limited is
an organization, which can help a student to learn finance and accounting practices in a system
fully equipped with latest technology to cater for the needs of present business environment.

Our Vision
To become a dynamic and efficient bank providing
integrated solutions and the first choice of bank for all
customers.

MISSION
 To provide value added services customers
 To provide high tech innovative solutions to meet
customer requirments
  To create sustainable value through growth,efficiency
and diversity for all stake holders
 To provide a challenging work environment, and
reward dedicated team members
 To play a proactive role in contributing towards the
society

QUALITY POLICY
We work together as a team for implementation and
continual improvement of total quality system in order to
achieve satisfaction of our internal and external
customers.

VALUES

 Integrity
 Excellence in Service
 High Performance
 Innovation and Growth
ABL has emerged as one of the foremost privatized financial
institutions in Pakistan endeavoring to gear up its operations
to meet the demands of the future.
 MAIN OBJECTIVE
The main objective of the bank is to accept deposit and to
provide loans to its customerand also to be more efficient in
providing services. The bank maintained its commitment to
most efficient and personalized services. Allied bank of
Pakistan introduces many remunerative schemes for its
depositors and introduce computer services for the first time
in the banking history of Pakistan .Allied bank gives advances
to small, medium, and big industries ,agriculture,
construction companies and other needy persons. Allied
bank collects electricity gas and telephones bills from public .

ORGANIZATIONAL CHART
The management hierarchy represent the different positions
and designations in the hierarchy of the ABL .However this is
not the reporting hierarchy but merely represents the position
and grades on the basis of seniority and grades

President

Senior Vice President

Vice President

Executive Vice President

Senior Executive Vice

Regional General

Branch Manager
 COMPANY INFORMATION
Board of Directors

 Muhammad Naeem Mukhtar (Chairman)

 Sheikh Mukhtar Ahmed (Non executive director)
 Muhammad Waseem Mukhtar (Non Executive Director)
 Abdul Aziz Khan (Non Executive Director)
 Dr Muhammad Sheikh (Independent Director)
 Zafar Iqbal (Independent Director)
 Nazrat Bashir (Independent Director)
 Tahir Hassan Qureshi (Chief Executive Officer)

MANAGEMENT TEAM
 Tahir Hassan Qureshi
(Chief Executive Officer)
 Owais Shahid
(Chief Corporate in Investment Banking)
 Asif Bashir
(Chief Commercial and Retail Banking Group-South)
 Muhammad Idrees
(Chief Islamic Banking Group)
 Sohail Aziz Awan
(Chief Digital Banking Group)
 Abid Anwar
(Chief Special Asset Management Group)
 Ahmad Faheem Khan
(Chief Tresury Group)
 Aizid Razzaq Gill
(Chief Risk Management Group)
 Tariq Javaid Ghumman
(Chief Banking Services Group)
 Mujahid Ali
(Chief Information Technology Group)
 Muhammad Farhan ullah Khan
(Chief Financial Officer)
 Saira Shahid Hussain
(Chief Human Resource Group)
 Muhammad Tabrayz Agha
(Chief Real Estate Engineering and Infrastructure
Development Group)
 Muhammad Mohsin
(Chief General Services and Security Group)
 Muhammad Raffat
(Chief Corporate Affairs)
 Imran Maqsood
(Chief Audit and Risk View Group)
 Ahmad Mansoor
(Chief Compliance Group)
Services of Allied Group

Product Lines
ABL facilitate its customers by providing different types of services. Here is the list of services provided
by the bank:

1) Current Account
2) Allied Business Account
3) PLS Saving Deposit
4) Allied Basic Banking Account
5) Foreign Currency Deposit
6) PLS Term Deposit Account
7) Allied Munafah Account
8) Behtar Munafa Account
9) Mahana Amdani Package
10) Behtar Munafah Term Deposit
11) Allied Bachat Scheme
12) Allied E-Savers Account
13) Home Remittances
14) Remittance
15) Hajj Services
16) Utility Bills
17) Lockers
18) Agriculture Finance
19) Import/ Export Business Trade Finance
20) Allied Bank Rupee Traveller Cheque
21) Seasonal Finance
22) A Running Finance
23) Cash Finance
24) Demand Finance
25) Corporate Leasing
26) All Time Banking
27) Online Banking
28) Internet Banking
29) Visa/ Credit Card
30) ATM Network
31) Helpline
 All time banking
Allied bank has introduced the allied cash also reffered to as ATM card . the customers will have the
convenience of withdrawing cash from any of ABL,s ATM ( auto teller machine ) conveniently
located in major cities at any time of the day or night even on closed days (holidays) . Other services
include customers being able to inquire about the balance of his\her account or printing an
abbreviated statement showing the most recent eight transactions up tp the previous working day.

Allied Umrah Asaan

 It is free of intrest and markup
 Lucky winners of the draw are duly informed by their respective branches
 Umrah pakage are opf 10 days duration
 Application for whole family can be filled through a single application form
 Aazmeen have to submit a copy of their NIC and passport with the application

Master Cards

The customer can now become the holder of a true credit card here in Pakistan. Allied Bank under
license from master card International USA issues its Master Card to anyone meeting in the eligibility
criteria . With the Allied Bank Master Card the customer is assured of a service meeting the highest
international standards maintained by Master Cards.

Allied Tahafuz Deposit Scheme

Brings the customer unparalleled life insurance covered along with attractive monthly profit . Minimun
amount deposit Rs 50,000 or multiplies thereof .Insurance cover up to Rs 5,000,000 .As competitive rate
profit .

The features of scheme are:

 Prospective clients who will maintain a return fee deposit for atleast 3 months shall eligible to
avail interest mark up free finance.
 Payment of profit on monthly basis automatic renewal on face value .
 Premium shall be paid by bank .
 Full payment of claim in case of Death
 Eligibility Age 18 to 64 years

Allied Karza Scheme

 Prospective client will maintain a return for atleast 3 months

 Minimum deposit period 3 months with automatic rollover facility.
 Premature encashment allowed without any charge
 Maximum period of finance is 6 months
 Maximum period to avail finance is 12 months
  Finance proposal processing fee Rs 100 plus document cost on actual basis

OTHER PRODUCTS

 Home Remittances

The bank having a network of 133 branches all over Pakistan undertake to provide
the safe and instant payment of remittance routed through designation foreign exchange companies
and banks whom with special arrangements have been made in this regard through the ALLIED Express
Services

 Hajj Services

The bank serves the intending pilgrims by help them in performing the religious
obligation . The Hajj forms and other related services are provided by the bank .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 .

 Agriculture Finances

Bank under agricultural financing schemes envisaged by the State Bank Of Pakistan
extend short , medium and long term ,farm and non farm credits.

 Lockers

Allied Bank lockers are available in three different sizes small, medium and large on a
yearly fee. Locker holders need not have account in the bank .

 Import Export Business And Trade

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

 Seasonal Finance
1. Running Finance
2. Cash Finance
3. Demand Finance

 Role of ABL in banking sector

1. Contribution before /at the time of Independence
2. Commitment to serve the customers
3. Better working environment
4. Modern banking policy
5. Deposit Mobilization
6. Home remittances handled
7. Foreign Trade
8. Interest free banking
9. Computerization
10. Utility Booths
11. Obligation to serve society

COMPETITORS
The following are the competitors of ABL which stands in cause of competing with its
diametrically opposed products

 National Bank of Pakistan

 Bank AL Falah
 United Bank Limited
 Muslim Commercial Bank
 Citi Bank
 Habib Bank Limited
 Faysal Bank
 Prime Commercial Bank
 Abn amro BANK
 Saudi Pak Commercial Bank
 Indus Bank
 Soneri Bank
 The Bank Of Punjab
 Khyber Bank
 Metropolian Bank
 Standard Chartered Bank
 Askari Bank

DEPARTMENTAL FUNCTIONS AT ALLIED BANK

1. General Banking Department

The general banking department performs functions of account
opening , deposits of cheques , demand draft , telegraph transfer,clearing, collection of utility
billsetc . It consist of following departments to perform its functions .
Cash Department
 Account Department
Remittance Department
Clearing Department

 Cash Department

It provide users with following facilities

Accept deposit

Collection of utility bills

 Account Department

One of the important function of bank is to accept deposit from general

public. Following are the types of accounts provided by the bank .

Current Account

Saving Account

Pls Term Deposit

Special Notice Deposit

The classification is based on the duration and purpose for which the deposit are kept at the
bank .

 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 accidental charges are
recovered from defaulters

In ABL minimum account to open the account is Rs 500 .No profit is paid to account beside this
that the account holder has the facility to taking much money as he want.

Individual account is opened with the name of single person one person on whose name it is
opened only conduct it while two open joint account or partnership account.

 Saving Bank Account

 In Pakistan the saving bank account are known as Profit
and Loss Sharing Account. The owner of such account are not allowed to
withdraw money more than once or twice in a week

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 propotion of profit and its decision will be final
.Profit will be determined on daily product basis and will be paid on
monthly basis.

 Fixed Deposit Account

These deposits are also called as time deposit because

these deposits are based on fixed duration . The period for which these
deposits are kept with bank are ranged from seven days to ten years in
light of agreement between the customer and the banker .
 Remittance Department

One of the major function of bank is remittance .This department provides

this facility through the following instruments

Demand Draft

Telegraphic Transfer

Payment Order

Deposit at call

Clearing Department
 LENDING PRINCIPLES

The basic function of the bank is to accept deposit and lend money to the
borrowers against a spread so to be able to give some profit to the
depositors as well as to earn profit for the bank.

While lending the money to the borrowers the bank should observe the
following lending principles.

 Safety Principles
 Liquidity Principles
 Purpose Principles
 Profitability Principles
 Security Principles
 Spreading or Risk Principles
 National Interest and Suitability Principles

FUNCTIONS OF CREDIT DEPARTMENT

 LIEN
 By Cash Credit
 By Over draft

TYPES OF FINANCE
Short term finance
Medium term finance
Long term finance
  Short term Finance
ABL receives the saving of the people and lend it for short term to
its customers . Short term finance is generally given for a period of
one year or less in duration .

 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 existence business or for the
purchase of new equipments.

 Long Term Finance

This type of finance is required for the period of more than five years .
Long term finance is given generally for the compilation of big projects
for the construction of building and for the purchase of machineries.
 SWOT ANALYSIS
SWOT analysis is the abbreviation of four words
 S- STRENGTH
 W- WEAKNESS
 O-OPPORTUNITIES
 T- THREATS

Micro Factors

The strength and weakness are the internal factors of the

organization . They are also known as micro factors.

External Factors

The opportunities and the weaknesses are the external

factors and are also known as macro factors

Both these micro and macro factors are really effect the working of an
organization ,but the only difference is that micro factors are under the control of
the organization whereas the macro factors are not under the control of the
organization it self .

By doing SWOT analysis of the organization the present and future conditions and
status of the organization can be evaluated . To an organization it is very
important to know the strength of that organization so that they can be made the
competitive advantage of that firm against its competitors . Same is the case with
weaknesses that by knowing the opportunities and threats of a firm or an
organization , that organization can make plans for its future .It can avail the
opportunities and avoid the threats .

So following is the SWOT analysis of ABL bank from my view and the knowledge I
have about ABL.

STRENGTHS

 Network of 757 Branches

Allied Bank has a large number of branches that is 757 . It

has one of the largest networks all over Pakistan . All of its branches are
interlinked through an online system . And most of its branches are doing a very
good business and earning a lot of profit.

 Online Facility

ABL is providing an onloine facility to its customers,through its

facility customers can send or transfer cash or cheques to any other branch of ABL
through cheques.

 Secure Banking

The online banking facility provides less chances of fraud. Because

the receipts of any online transaction are given to customers at the time
transaction takes place and also can be checked any time . To make it much more
secure the NIC copy of the person is also submitted at the time of online
transaction but those customers who also have their accounts in the same branch
do not need to submit the copy of NIC as their copy is already attached with their
account opening form .

 Foreign Currency

ABL also provide its customers the facility of foreign exchange.

People can also open their accounts in foreign currency . Customers are also given
the facility of money exchange on current rates . The head office also provides the
foreign currency account holders the facility of the current rates of foreign
exchange through fax facility . The bank also provides the facility of letter of credit
and export/import facility to the customer.

 Variety of Products

ABL provides a variety of products to its customers . ATM,

DD, TT, PO, CREDIT CARD , TREVELLERS CHEQUE are its main products.
Ccustomers have a lot of variety of accounts . They can invest in any account of
their choice keeping in view that are they salaried persons ,businessman or
students etc . It also gives the