Table of contents

1. Introduction of Organization 2. History of Organization 3. Branches/Net Work 4. Management System 5. Products of Services 6. Functions of Department 7. Financial Analysis 8. Work Done by Job 9. Conclusion 10.Problems & Recommendation 11.References

PRODUCTS
PRODUCTS OFFERED BY ABL Branch offers products towards the customers. The following products are available for the customers: Lockers Cheques Book Allied Cash+ Card Demand draft (DD) Payment order (PO) Online Banking

LOCKERS ABL branch given its customers the facility of lockers, so that they can secure their important things in the lockers, for example gold, important documents or anything which a person wants to keep safely. ABL lockers are available in three different sizes large, medium, and small on a yearly fee. There is no need to open account to get the facility of lockers. SAFE DEPOSIT LOCKERS INSURANCE The bank has already informed its safe deposit locker holders through half yearly statement of accounts. Maximum insurance ceiling provided for each category of lockers is mentioned hereunder: Serial number 1: 2: 3: Small Medium Large Locker size Annual locker rent (current) Rs. 1500/Rs. 2000/Rs. 4000/Maximum loss coverage/Limit Rs. 500,000 Rs. 1,000,000 Rs. 1,500,000

CHEQUE BOOKS Cheque book issued according to the nature of account .There are two types of cheque books, the first one is of 25 leaves and the second one is of 50 leaves. For current account 50 leaves book we issued and for saving account there are 25 leave book. The charges will be rupees 125 for 25 leaves and 50 leaves cheque book charges are 250 rupees. Cheque book issued after one week for opening of account, the first cheque book is free and if customer wants to reissue next cheque book. ALLIED CASH + CARD Allied bank ATM Debit card, also referred to as Allied Cash+, can be used to withdraw cash and may also be used as a debit card at merchant locations / service outlets having ORIX POS terminals and displaying the ORIX logo. Through this card you can have an experience of Cashless shopping at thousands of merchant locations. Get instant cash and check balances. Here is what they have to offer:

Round-the-clock cash withdrawals

You can make withdrawals up to Rs: 25000 in a day (depending upon your deposit)

Balance inquiry and mini statement of account The ATM screen will reveal the balance in your account. A mini statement Comprising last 8 transactions can also be obtained from the ATM.

Pin change You can now easily change your Pin at regular basis to maintain security.

Utility bill payment facility You can easily paid telephone, electricity bills from the branch ATMs without wasting time.

Funds transfer facility You can easily transfer cash from ATM machine with in seconds .

DEMAND DRAFT Demand draft is one of the most popular banking instrument in the trade circles to settle business deals and transferring funds from one place to another. 89/6-R provide this facility to their customers PAY ORDERS Pay Order is a bank instrument issued by a bank in Pak rupees at the request of a customer through banking channel. 1 LINK NETWORK In continuation of ALL TIME BANKING SERVICES, with the country wide network of 779 branches, ABL has also enhanced ATM services by joining the 1-LINK SWITCH which has following member banks. AL BARAKA ISLAMIC BANK ALLIED BANK LIMITED ASKARI COMMERCIAL BANK LIMITED ATLAS BANK LIMITED BANK AL HABIB LIMITED BANK ALFALAH LIMITED BANKISLAMI PAKISTAN LIMITED CRESENT COMMERCIAL BANK LIMITED DUBAI ISLAMIC BANK PAKISTAN LIMITED EMIRATES GLOBAL ISLAMIC BANK LIMITED FAYSAL BANK LIMITED FIRST DAWOOD ISLAMIC BANK LIMITED HABIB BANK LIMITED KASB BANK LIMITED MEEZAN BANK LIMITED NATIONAL BANK OF PAKISTAN SONERI BANK LIMITED STANDARD CHARTERED BANK PAKISTAN LIMITED UNITED BANK LIMITED MYBANK LIMITED

The card holders of ABL are thus able to access member banks ATMs for balance inquiry and can withdrawal simultaneously vice versa. The card holders member banks can access ABLs ATM machines. Every ATM which is connected with 1-LINK SWITCH has a logo which indicates that 1-LINK SWITCH member can access the ATM. TYPES OF ACCOUNTS AND PACKAGES OFFERED BY ABL The different types of accounts offered by ABL are: PLS saving account (profit and loss saving account): Current account: Mutual Fund ABA account (Allied business account)

PLS SAVING DEPOSIT Branch offers PLS savings account facility to its customers with the following attractive features. Attractive return up to 1% per annum

Free online transaction, DD, PO for depositors maintaining average monthly balance of Rs: 25000(M) and above during the previous month. CURRENT ACCOUNT Branch offers current account facility for individuals as well as institutions and commercial customers. Free online transactions, DD, PO for depositors maintaining average monthly balance of Rs: 25000 (M) and above during the previous month.

Mutual Fund
Income fund For those seeking Periodic Returns on your investments? If you would like to receive income based on the performance of ABL-IF on a monthly, quarterly/ half yearly or annual interval then Flexible Income plan is what you should opt for. If you would like to receive regular/fixed income on your investment on a monthly, quarterly/ half yearly or annual interval, as per your preference then Fixed Income plan* (a Systematic withdrawal plan) is the option for you. Dividends in the form of Bonus Units only, as and when declared For those seeking capital growth on their investments? The Unit value grows in line with the growth in NAV. If you would like your investment to grow over a period of time with redemption at your discretion, then Growth Units are the option for you. Dividends in the form of Cash or Bonus Units, as and when declared

*As a result of operation of this Clause, the capital invested may deplete in case sufficient returns are not earned to cover the amount required by the Unit Holder. Salient Features: Minimum investments can be as low as Rs. 5,000/- for Growth Units and Rs. 500,000/- for Income Units. Further re-investments can be made from as little as Rs.1,000/- only. No lock in period - Ease of withdrawing money anytime Exemption from Zakat on submission of relevant Affidavit. Benchmark: 1 Month KIBOR Cash fund Investment options: Income Units (minimum investment of Rs. 500,000 required) Suitable for investors looking for regular income on investment. Flexible Income Plan If you would like to receive income based on the performance of ABL-CF on monthly, quarterly, half yearly or annual intervals then Flexible Income Plan is what you should opt for. Your return will vary with funds performance during that period. Fixed Income Plan If you would like to receive regular/fixed income on your investment on monthly, quarterly, half yearly or annual intervals, as per your preference then Fixed Income Plan is the option for you. Distribution in the form of Bonus Units only, as and when declared.

Growth Units (minimum investment of Rs 5,000) For investors who prefer capital growth on investments The unit value grows in line with the growth in NAV. If you would like your investment to grow over a period of time with redemption at your discretion, then Growth Units are the option for you. The management company shall calculate the redemption value to be paid to the Unit Holder(s) based on the redemption price of the business day. Salient Features: Minimum Investment Rs.5,000/-(Growth Units) Subsequent Investment Rs.1,000/Load (Front End/Back End) Nil Minimum Investment Period No minimum holding period. Redeem at will. Pricing Mechanism Backward Encashment Same day* Otherwise the constitutive documents provide for six working days to pay redemption proceeds Tax Exempt As per current tax laws** Tax Credit Up to Rs.100,000/- for salary individuals (as per Current Tax Law)

Why invest in ABL-Cash Fund: Low risk investment with no exposure to stock market or long term debt securities. Aims to provide safe and consistent returns via investment in sovereign and AA or above rated entities. Competitive returns with no minimum investment period. Ideal for cash management and parking short term funds. Same day redemption* Otherwise the constitutive documents provide for six working days to pay redemption proceeds Options for monthly, quarterly, and semi-annual income plans. Tax efficient returns and tax credits***. Can be used as collateral to avail bank financing. *For same day redemption, duly completed redemption form should be submitted latest by 9.30 am Please read Clause 4.5.5 of the Offering Document for Terms & Conditions for facilitation of same day redemptions. **No tax is applicable on returns if investment in mutual fund is held for more than one year. form of cash or bonus units, as and when declared.

Stock Fund
The Unit value grows in line with the growth in NAV.This helps your investment to grow over a period of time with redemption at your discretion. Dividends in the form of Cash or Bonus Units, as and when declared. The Management Company shall calculate the redemption value to be paid to the Unit Holder(s) based on the Redemption Price of that day

Salient Features:
Minimum investment from Rs. 5,000/-

Encashment anytime Tax Exempt (as per Current Tax Law) Tax Credit of up to Rs.100,000/- for salary individuals (as per Current Tax Law) Suitable for investors with a long term horizon

Islamic Fund
Investment options: Income Units (minimum investment of Rs. 500,000 required) Suitable for investors looking for regular income on investment. Flexible Income Plan If you would like to receive income based on the performance of ABL-CF on monthly, quarterly, half yearly or annual intervals then Flexible Income Plan is what you should opt for. Your return will vary with funds performance during that period.

Fixed Income Plan

If you would like to receive regular/fixed income on your investment on monthly, quarterly, half yearly or annual intervals, as per your preference then Fixed Income Plan is the option for you. Distribution in the form of Bonus Units only, as and when declared. Growth Units (minimum investment of Rs 5,000) For investors who prefer capital growth on investments The unit value grows in line with the growth in NAV. If you would like your investment to grow over a period of time with redemption at your discretion, then Growth Units are the option for you. The management company shall calculate the redemption value to be paid to the Unit Holder(s) based on the redemption price of the business day. Distribution in the form of cash or bonus units, as and when declared.

Salient Features:
Minimum Investment Rs.5,000/-(Growth Units) Subsequent Investment Rs.1,000/Load (Front End/Back End) Nil Minimum Investment Period No Minimum Holding Period Required Pricing Mechanism Forward Encashment Within 2-6 working days Tax Exemption As per Current Tax Laws* Tax Credit Up to Rs.100,000/- for salary individuals (as per Current Tax Law)

Why invest in ABL-Islamic Cash Fund: Low risk investments to provide safe and consistent Halal returns. Invests only in Shariah compliant short term government securities, money market instruments and deposits. No Minimum investment period. You can encash whenever you want. Easy encashment within two working days. However the constitutive documents provide up to six working days.

No direct or indirect exposure to stock market or long term debt instruments. Minimum investment from Rs.5,000/- (for Growth Units) only. Options for monthly, quarterly and semi-annual income plans. Tax efficient returns* and tax credits * No tax is applicable on returns if investment in mutual fund is held for more than one year. ALLIED BUSINESS ACCOUNT Branch offers a banking experience beyond expectations. Allied business account is a non-profit current account with countless benefits and services. If you are a business man, trader or an individual Allied business account is an ideal proposition for you. Minimum average balance Transaction limit Eligibility Rs:10000/- monthly No limit All individuals and institutions

AVERAGE MONTHLY BALANCE

SERVICES

CHARGES

Rs: 500,000 and above

Online/Manual remittance

Free

Rs: 500,000 and above

Outward Cheque return

Free

Issuance of Rs: 500,000 and above DD/TT/PO/OBC/Expression collection Free

ADDITIONAL BENEFITS 24 hours helpline service Free internet banking facility SMS transaction alerts

ATM/DEBIT card for cash withdrawals through any ATM and debit transactions at various retail outlets

PREMATURE ENCASHMENT

No profit shall be paid from the date of issue, if en-cashed before completion of 6 months. In case encashment take place after 6 months, In case encashment takes place after 6 months, the profit is to be paid for completed half year on the prescribed rates and 6% for the completed months as per the projected rates.

SERVICE QUALITY TRAINING GIVEN TO THE EXISTING EMPLOYEES IN THE BRANCH SERVICE QUALITY TRAINING Branch is focusing on quality customer services to deliver the best customer experience. The aim of the Service Quality Group is to create Service Awareness across the bank where every individual has the willingness to help both internal and external customers and provide prompt services while adopting a personalized approach. To put this in effect, the role of the service quality group is to conduct service oriented training programs, which would be conducted across the customer touch points. The participants were the CSOs, Branch Managers, CSM and Tellers. The aim of this training was to develop the skills and knowledge of our frontline staff on delivering consistent courteous behavior, which would consequently build trust and confidence in branch customers.

FUNCTION OF DEPARTEMENTS

CURRENT SAVING DEPARTMENT In ABL Khyber bazaar 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. COMPUTER OPERATIONS In ABL Khyber bazaar branch the computer section performs several duties that are as under; 1. Daily Transactions to be

To record all the transactions in case of deposits made by the people and also record all the withdrawals made by the people or customers. Each transaction has to recorded in its appropriate head of account with the help of prescribed codes. 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. 3. Advices To record all advices received from other branches. Most of the-inter branch or intra branch- remittances are subject to ultimate receipt of advices from the corresponding branch to materialize the transactions. These advices also have to be recorded in computer. 4. Statements To close the daily record a number of statements have to be printed out. like: Days transactions (sequence) Overdrawn facilitated a/c statement Markup sheet Inter branch transactions Detail of PLS and Current a/c Statements

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.

ACCOUNT DEPARTMENT 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. KINDS OF ACCOUNT There are numbers of account that ABL offers to its customer keeping in mind their needs and dealing 1. SAVING BANK ACCOUNT P & LOSS ACCOUNT . In Pakistan the saving Bank accounts are know 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 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. 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. 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.

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. 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. 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. I. 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. II. Cheque Book After completing formalities for opening saving and current a cheque book s 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. ADVANCES DEPARTMENT

LENDING PRINCIPLES The basis 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 principals: Safety Principle

It means that the lended money will come back along with interest or service charges etc. The borrower should not invest the money borrowed in unproductive or speculative business. Liquidity Principle

The money which has been lended to the borrower should be returned to the bank on demand or as per repayment schedule provided by the client. The sources of repayment should be clear and definite Purpose Principle

The purpose of the advances should be legitimate and productive. It should be ensured that the banks, funds are not being utilized for speculative business. The credit restrictions by the central bank should not be violated & it should also be ensured. It is always beneficial for the bank to finance for short-term requirements. Profitability Principle

The end result of every business activity should be to earn some profit. Similarly the bank must get some profit out of the activity of lending so that the depositors could get their shares as well as the shareholders could earn something for their investments.. Security Principle

The proposal should be dealt on its merit not on security. The security should be considered a safety for the bank only in case of unexpected emergencies. All the relevant documents of securities must be obtained & got valuation of the property or any other security should be assessed correctly. Spreading of Risk Principle It is always safe for the bank to spread the risk in large number of borrowers instead of loaning huge amount to few big shots, it is better to obtain different types of securities instead of concentrating on one security.. National Interest and Suitability Principle

It is our moral as well as legal obligation to ensure that no loaning is running counter to national interest. It is also our duty to ensure that our lending policies are not against the social conditions or bindings 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.. LIEN Lien is the bank right to with hold 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.

By 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.

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 can not offer any collateral security except his personal security then the accommodation is called Clean Overdraft.

Types of finance 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.

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.

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.

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.

REMITTANCES DEPARTMENT Another important department in ABL Khyber bazar 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: 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 than above procedure will be adopted to transfer his money. 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. 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.

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: 1. 2. 3. It is a Negotiable Instrument. Filling a form and depositing 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.

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 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. 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.

FOREIGN CURRENCY DEPARTMENT Like Pak rupees account the foreign currency has many accounts like Saving account Current account Term deposit account. The bank deal in three type of foreign currency account 1. Dollar 2. Euro 3. Pound The account is open with 1000 dollar if it is less 5-dollar per month is deducted. For opening the account NIC & introduction is required of the same bank. If any person wants to import goods from foreign, an account is required and for international trading the FC is needed. ABL provide foreign currency on Pak rupee at booking rate and the central office sent Rates In foreign currency department the remittance is sent through Foreign Telegraphic Transfer. The account holder can sent the amount in foreign bank account. If any transaction is made the daily report is given to the central office Karachi daily. Different accounts can b open like joint account or company account. The thankful letter is sent for opening the foreign currency account to account holder and introducer. When any transaction is made the bank inform stock exchange daily. The foreign currency note is counted and recorded in the cash memo book. The people in the foreign country sent the amount through S.W.I.F.T. Weekly and monthly report of all the transaction is given to the stock exchange. Cheque book is also issued to the account holder & the foreign currency Account number is given to him. In this FBC & FBR is done. Debit Credit Voucher is used. The charges are deducted while closing the foreign currency account. And the cheque book is return while closing the account. The branch sent excess foreign currency to its main branch. If any branch needs foreign exchange they sent to this branch. 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 inter city 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, 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 inter city 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.

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 Assets Management Department Mutual Funds

A mutual fund is an entity that pools the money of many investors and then invests them in different securities. Investments may be in shares, debt securities, money market securities or a combination of these. On behalf of the investors / unit-holders, these securities are professionally managed by a fund manager, working effectively to generate a return from investments.

Why Mutual Funds

Professional Management Mutual funds hire full-time, high-level investment professionals. Funds can afford to do so as they manage large pools of money. The managers have real-time access to crucial market information and are able to execute trades on the largest and most cost-effective scale. Diversification Mutual funds invest in a broad range of securities. This limits investment risk by reducing the effect of a possible decline in the value of any one security. Mutual fund unit-holders can benefit from diversification techniques usually available only to investors wealthy enough to buy significant positions in a wide variety of securities. Low Costs A mutual fund let's you participate in a diversified portfolio for as little as Rs.5,000/-, and sometimes less. And with a no-load fund, you pay little or no sales charges to own them. Liquidity In open-ended schemes, you can get your money back promptly at net asset value related prices from the mutual fund itself Choice of schemes There are many schemes to choose from depending on the amount of risk you can take, or the return you expect.

Types of Mutual Funds There are wide varieties of Mutual Fund Schemes that cater to the needs such as financial position, risk tolerance and return expectations of an investor. BYSTRUCTURE

Open-End Funds: The fund does not have a fixed pool of money. At the end the day new units are issued to the investors, while some are redeemed back. Closed-End Funds: These types of fund have a fixed pool of money which was collected during the initial public offer. An investor wishing to buy or sell units subsequent to the IPO has to go to the secondary market.

Allied Bank Limited Balance Sheet

2005

ASSETS Cash & balances with 6,678,026 13,356,055 treasury Banks Balances with other Banks 2,650,166 4,847,899 5,550,148 7,333,002 3,497,054 Lendings to financial 5,770,842 2,324,839 10,172,242 8,392,950 1,444,143 institutions Investments 22,104,425 17,239,156 25,708,194 8,625,915 39,431,005 Advances 44,777,538 69,838,392 85,976,895 99,179,372 100,780,162 Operating fixed assets 1,979,919 2,595,023 3,192,862 3,810,331 5,128,428 Deferred tax assets Other assets 1,425,986 1,459,716 2,732,641 3,812,788 5,535,038 85,386,902 107,167,540 145,099,907 166,033,588 182,171,885 LIABILITIES Bills payable 973,703 1,227,093 1,315,680 1,839,077 2,627,051 Borrowings from financial 15,903,055 13,781,555 10,562,338 14,964,087 17,553,525 institutions Deposits and other accounts 61,656,607 83,318,795 118,794,690 131,839,283 143,036,707 Sub-ordinated loans 1,000,000 2,999,700 2,998,500 2,997,300 Liabilities against assets 37,350 14,159 1,459 subject to finance lease Deferred tax liabilities 806,753 526,866 567,217 736,298 471,519 Other liabilities 962,592 1,282,980 2,271,393 2,603,113 3,219,796 80,340,060 101,151,448 136,512,477 154,980,358 169,905,898

2006 2007 2008 Rupees in thousands 8,762,866 11,766,925 14,879,230

2009

NET ASSETS Share capital Reserves Un-appropriated profit Surplus on revaluation (Net to Tax)

5,046,842 1,141,680 2,759,599 3,901,279 1,145,563 5,046,842

6,016,092 1,255,848 4,317,301 5,573,149 442,944 6,016,093

8,587,430 1,507,018 5,862,074 7,369,092 1,218,338 8,587,430

11,053,230 2,004,333 5,814,754 1,799,979 9,619,066 1,434,164 11,053,230

12,265,987 3,006,499 6,948,336 2,144,810 12,099,645 166,342 12,265,987

Allied Bank Limited Profit & Loss From 2005-2009 2005 4,073,715 1,379,609 2,694,106 308,528 308,528 2,385,578 38,066 -36,555 7 315,471 601,992 3,054,529 3,900,332 2006 2007 2008 2009 4,487,206 8,780,698 12596921 15143241 1,117,206 4,278,374 6977313 8685624 3,370,000 4,502,324 5619608 6457617 277,398 638,547 1128137 3920240 376 1128513 4491095 1501 3921741 2535876

Mark-up / return / interest earned Mark-up / return / interest expensed Net mark-up / interest income Provision(Non-performing loans & Advances) (Reversal) / provision for impairment in the value of investments Bad debts written off directly Net mark-up / interest income after provisions Non mark-up / interest income Fee, commission and brokerage income Dividend income Income from dealing in foreign currencies Gain on sale of investments Other income Total non-markup / interest income Non mark-up / interest expenses Administrative expenses Other charges Total non-markup / interest expenses Profit before taxation Taxation current prior years'

524,775 37,658 112,808

708,377 26,318 180,992

838,561 51,143 356,218

1013660 109326 584344 112474 321758 2139254 6630349 3277353 6141 3283494 3346855 3346855 983875 -

1072868 137079 655761 2361251 336809 4565496 7101372 4789536 12051 4801587 2299785 2299785 98535 -233950

278,512 953,753 3,339,331 1,436,304 1227 1437531 1901800 1901800 873,639

540,193 99,825 177,648 206,819 1,633,528 1,552,566 4,688,057 5,452,898 1,845,179 138 1,845,317 2,842,740 2,842,740 876,089 2,591,985 1,832 2,593,817 2,859,081 2,859,081 828,774 -188,247

 Deferred Profit after taxation Un-Appropriated profit brought forward Profit available for appropriation Appropriations: Statutory reserve Capital reserves (reserve for issue of bonus shares) Revenue reserves Proposed cash dividend

-74,904 798735 1103065 1103065 220,613 114,168 539,948 228,336 1,103,065

43,611 196,558 919,700 837,085 1,923,040 2,021,996 1,923,040 2,021,996 384,608 251,170 404,399 497,315

113006 1096881 2249974 1617597 3867571

-245812 -381227 2681012 1799979 4480991

1,036,092 894,229 251,170 226,053 1,923,040 2,021,996 www.abl.com.pk

7.3

Ratio Analysis With a greater understanding of the balance sheet and how it is constructed, it can be looked

now at some techniques used to analyze the information contained within the balance sheet. The main way this is done is through financial ratio analysis. Financial ratio analysis uses formulas to gain insight into the company and its operations. For the balance sheet, using financial ratios (like the debt-to-equity ratio) can show a better idea of the companys financial condition along with its operational efficiency. It is important to note that some ratios will need information from more than one financial statement, such as from the balance sheet and the income statement. The main types of ratios that use information from the balance sheet are financial strength ratios and activity ratios. Financial strength ratios, such as the working capital and debt-to-equity ratios, provide information on how well the company can meet its obligations and how they are leveraged. This can give investors an idea of how financially stable the company is and how the company finances itself. Activity ratios focus mainly on current accounts to show how well the company manages its operating cycle (which include receivables, inventory and payables). These ratios can provide insight into the operational efficiency of the company.

7.3.1

Current Ratio

This ratio indicates the business liquidity position over specific period of time. It measures ability to meet current debts with current assets. It is calculated as.

Current Ratio = Current Assets / Current Liabilities 2005 2006 2007 2008 2009

C. Assets C. Liabilities Current Ratio

15,099,034 16,876,758 0.89

15,935,604 15,008,648 1.06

27,489,315 11,878,018 2.31

30,605,183 14,964,087 2.05

31,297,252 20,180,576 1.55

As we see the current ration of Allied bank we increase every year from 2005 to 2008 but if we see 2009 in that year downward tread current ration decrease from 2.05 in 2008 to 1.55 in 2009. in 2003 the current ratio is 0.89 which increase in 2006 to 1.06 due to decrease in current liabilities although current assets decreases in 2006 but current liabilities decrease more than current liabilities the reason of decrease in current assets is due to decrease in lending to financial institutions also in this year bank made less investment compare to last year. In 2008 bank also borrow less compare to last year. In 2009 current ration increase very high compare to other years. The reason is same that in this year current assets increase very much and current liabilities decrease very much compare to last year. This is due to the same reason of last year. In 2007 again current ration increase which is good sign for Allied bank. But in 2009 it decrease due to liquidity problem and this year Allied bank clear its bill which are due on him. ABL has maintained and constructed funds to settled short debts and is in sound position.

Last five year financial statements of ABL

7.3.2

Leverage Ratio Financial leverage is the extent to which a company is financed with debt. The amount of

debt a company uses has both positive and negative effects. The more the debt, the more the company will have trouble in meeting in its obligations. Thus the more debt, the higher is the profitability of financial distress and bankruptcy. On the other hand debt is the major source of financing and banking industry typically uses the higher percentage of debt. Debt financing provides significant tax advantage and its transaction costs are low than that of equity. Leverage ratios

measure the amount of financial leverage. Commonly used leverage ratios are debt to ratio, and debt to equity ratio. Financial leverage is concerned with the proportion of debts to its equity. Higher the leverage, higher the profitability as with the increase in leverage the financial risk increases.

7.3.3

Debt Ratio

This ratio shows the percentage of debt to the total assets. It also indicates the proportion of rights of the outsiders on the assets of the business.

Debt Ratio

Total Debts / Total Assets 2,005 2,006 101,151,448 107,167,540 0.94 2,007 136,512,477 145,099,907 0.94 2,008 154,980,358 166,033,588 0.93 2,009 169,905,898 182,171,885 0.93

Total Debts Total Assets Debt Ratio

80,340,060 85,386,902 0.94

The debt ratio of Allied bank is very constant through out the last 5 years only little bit change in last 2 years compare to 2005, 2006 and 2007. this ration exhibit that slight increase in 2006 with gradual decrease over the next few years up to 2009, balance sheet indicates that substantially less than 95% of the organizations assets were financed by out side which has shown gradual decrease in 2007,2008,2009 from 94.08% in 2007 to 93.27% in 2009.

7.3.4

Debt to Total Capitalization Ratio

It is the ratio which is also used to measure the financial leverage or risk of any business. It shows a proportion or percentage of business total debts to its shareholders funds.

Debt to Equity Ratio =

Total Debts / Share holders Equity + debt 2005 2006 2007 2008 2009

Total Debts Equity(D+E) Debt to Equity Ratio

80,340,060 101,151,448 136,512,477 154,980,358 169,905,898 3,901,279 20.59 5,573,149 18.15 7,369,092 18.53 9,619,066 16.11 12,099,645 14.04

The debt to equity ration shows Conservative approach to debt/equity ratio indicates smaller amount of funds came from shareholders equity than outsiders provided comparison between the years shows that the ratio has considerably decreased which shows credibility of the organization and stakeholders protection. In 2005 debt to equity ratio is 20.59 which decrease in 2006 to 18.15 in 2006 again rise due to increase in total debt in this year bank total deposit increase very much due to change in rate before this bank pays less interest rate but due to rate change in market Allied bank also change it and attract more customer. In 2008 this ration goes down and same trend in 2009 the reason is stakeholders investment in bank.

INTEREST COVERAGE RATIO Any business may measure its ability to pay interest out of its annual profit interest and taxes in number of times with the help of interest coverage ratio. If the ratios trend shows increasing trend, then definitely the business ability to pay interest enhances.

Interest Coverage= Earning before interest and taxes / Interest Expense 2005 EBIT Interest Expense Interest Coverage 2006 2007 2,859,081 4,278,374 0.66 2008 3,346,855 6,977,313 0.47 2009 2,299,785 8,685,624 0.26

1,901,800 2,842,740 1,379,609 1,117,206 1.37 2.54

Profits before taxes available to cover interest expense have been fluctuating unevenly through 20052009. 1.37 In 2005, it increased to 2.54 in 2006. the reason of this increase is that this year Allied bank make huge profit this not only Allied bank but every bank this year make huge profit due to grooming of banking sector. Decrease was indicated in 2007 to 0.668, 0.479 and 0.264 in next respective years. In next all year this ration trend is downward the main reason of this is increase in interest rate and also competition in banking sector.

TOTAL ASSET TURNOVER This ratio shows the efficiency of the business in relation to its total assets. In other words it indicates the revenue generated in number of time by utilizing all assets. TAT= total revenue / Total Assets

2005

2006

2007

2008

2009

Net sales Total Assets TAT

4,073,715

4,487,206

8,780,698

12,596,921

15,143,241

85386902

107,167,540

145,099,907

166,033,588

182,171,885

0.04

0.04

0.06

0.07

0.08

ABL has shown consistent development in ability to general sales using available assets. With slight decrease in 2007 as compared to 2006 and 2005. ABL has shown improvement and increase in total assets turn over which is a healthy contribution. 6% in 2007, 7.6% in 2008 and 8.3% in 2009. The reason of improvement is that total assets of Allied bank goes up every year which due to opening of new branches.

NET PROFIT MARGIN This ratio indicates the earning capacity of business in percentage against its total revenue. In other words, we can say that a company is earning net amount in rupees against every Rs.100 of revenue generated. If the net margin profit increases its shows the increase in the profitability state of business.

Net profit margin= Net profit after taxes / total revenue *100

2005 Net profit after taxes 1,103,065

2006 1,923,040

2007 2,021,996

2008 2,249,974

2009 2,681,012

Net sales

4,073,715

4,487,206

8,780,698 12,596,921

15,143,24 1

Net profit margin

27.07

42.85

23.02

17.86

17.70

Return on sale increased from 27% to 42.85% in 2006. In the following years despite of increase in sales, net profit has decreased, to 23.03% in 2007, 17.86% in 2008 and 17.7% in 2009. Possible reason may be increase in operating expenses and increase in inflation rate.

LIQUIDITY QUCIK RATIO Quick Assets refer to the most liquid assets which readily be converted into cash. Quick assets to deposits ratio show how much liquid money is in hand to meet obligations without going to the creditors or the money market. The minimum Cash Reserve Requirement by SBP for commercial banks is 5% & 15% in the form of Govt. securities. Liquidity Quick Ratio = Quick Assets / Total Deposits x 100 2005 Quick Assets Total Deposits Liquidity Quick Ratio 6,678,026 61,656,607 10.84 2006 8,762,866 83,318,795 10.51 2007 11,766,925 118,794,690 9.90 2008 14,879,230 131,839,283 11.28 2009 13,356,055 143,036,707 9.34

In our case, the ratio is much above the benchmarked level and ranges between 38 48%. It reflects very positively on the liquidity of the Bank. Bank is well equipped to pay back in case all the deposits are called without going to the debtors.

RETURN ON INVESTMENT It shows the net profit earned against utilization of total assets in term of percentage. This is an important ratio to measure the profitability as well as optimal utilization of available assets.

ROI= Net profit after taxes / Total assets * 100

2005 Net profit after taxes 1,103,06 5 Total Assets 8538690 2 ROI 1.29

2006 1,923,040

2007 2,021,996

2008 2,249,974

2009 2,681,012

107,167,5 40 1.79

145,099,9 07 1.39

166,033,5 88 1.35

182,171,8 85 1.47

ROI has shown uneven variations in 2005, 2006 and 2007 with considerable stability in 2008 and 2009. In general again country economic condition, competition in banking sector and organizational restructuring may be the affective causes.

ADVANCES TO DEPOSITS RATIO A steady increase in the advances has been observed over the years. It is a very good sign as deposit money is not sitting idle and is used in a viable manner. The gap in deposits and advances figures is because of investment in securities, bank preferably invests in govt. securities, which are risk free. The Bank seems to be a regular borrower from the inter bank market; the bank borrowing are increasing over the years but this increase can be neglected because the balance sheet shows the bank borrowing figure of the last day of income year, this might have been returned the very next day, so it is not as such alarming.

Advances to Deposits ratio =Advances / Deposits + Borrowed Funds x 100

Advances Borrowings Deposits Advances to Deposits

2005 44,777,538 15,903,055 61,656,607 57.73

2006 69,838,392 13,781,555 83,318,795 71.92

2007 85,976,895 10,562,338 118,794,690 64.46

2008 99,179,372 14,964,087 131,839,283 66.55

2009 100,780,162 17,553,525 143,036,707 62.75

In the year 2005 the ration is 57.73 which is increasing in the year 2006 i.e. 71.92. in the year 2007 there is a decline at 64.46 then again increase in year 2008 at 66.55. in the year 2009 it is on 62.75 which is in decrease.

GROSS PROFIT MARGIN The gross profit is calculated by subtracting the mark up expenses from its markup income. The above ratios indicated the amount earned by NBP against each Rs. 100 of markup in order to meet the operating expenses of the business.

Gross profit margin= Gross profit / Net sales

2005 Gross profit Net sales Gross margin profit

2006

2007

2008 5,619,608

2009 6,457,617

2,694,106 3,370,000 4,502,324

4,073,715 4,487,206 8,780,698 12,596,921 15,143,241 0.66 0.75 0.51 0.44 0.42

With considerable increase in 2006 from 66% to 75% profits have decreased in the following years to 42.64% in 2009 due to competition in the banking sector and fluctuation in the economic stability has caused this decrease in gross profits.

RETURN ON EQUITY The percentage earning after paying taxes by any business against its shareholders funds can be measured with the help of return on equity. If there is an increase in ROE, it shows the stability of the business in terms of profit earning.

ROE= Net profit after taxes / Shareholders equity * 100

2005 Net profit after taxes Shareholders equity 3,901,279 1,103,065

2006 1,923,040

2007 2,021,996

2008 2,249,974

2009 2,681,012

5,573,149

7,369,092

9,619,066

12,099,64 5

Return on Equity

28.27

34.50

27.43

23.39

22.15

Return on shareholders equity has substantially decreased in 2007 and onwards from 34.5% in 2006 to 22.16% in 2009. Again possible reasons might be increased competition among banks and fluctuating economic conditions of the country. Highest return was achieved in 2004 with increase from 28.27% in 2005 to 34.5% in 2006.

CAPITAL ADEQUACY RATIO

Total eligible regulatory capital held Total risk weighted assets Capital adequacy ratio

38.1 76,680,848 63,960,748 38.2 586,894,116 555,979,573 13.07% 11.50%

FIXED ASSETS TO NET SALE This ratio is used to calculate the relation between the total sales to total fixed assets that mean how much sales to fixed assets. the following formula is used to measured it. FAT= Net Sales / Fixed Assets Particulars Net sales Fixed Assets FAT 2005 4,073,715 1,979,919 2.06 2006 4,487,206 2,595,023 1.73 2007 8,780,698 3,192,862 2.75 (Rs in thousand) 2008 12596921 3,810,331 3.31 2009 15143241 5,128,428 2.95

The relation b/w the fixed assets to net sale in FY-05 is 2.06 that is almost doubled to assets which is positive sign of organization development in next FY-06 it reduced and again 2.75 in FY-07 and tend to increase in FY-08 and again decline in FY-09

INCOME TO EXPENSE RATIO The income to expenses ratio used to measure the efficiency of bank how much expenses paid by bank to generate the income. In other word it shows relation between total income and total expenses and the following formula is used to calculate it. Income to Expense Ratio = Total income /Expense Particular Total Income Total Expenses Debt Ratio 2005 5,027,468 2,817,140 1.785 2006 612,734 2,962,523 0.207 2007 10,333,264 6,872,191 1.504 (Rs in thousand) 2008 14,736,175 10,260,807 1.436 2009 19,708,737 13,487,211 1.461

In the above table the performance of bank is batter in FY-05 but it decreased in FY-06 to due high competition and inflation the revenue is not increased and expenses increased and lead to decrease the bank performance. However in the FY-07 the performance of bank is increased by cuts in expenses and increased in revue and reach to batter position.

CURRENT ASSETS TO NET SALES This ratio is used to measure the performance of bank current assts to its income. What is total income in use of current assets? Hara it is concluded that how much current asset is productive to generate the sales. The following way is used to calculate it.

CAT= Net Sales /Total Current Assets Particulars Net sales Current Assets CAT 2005 4,073,715 15,099,034 0.270 2006 4,487,206 2007 8,780,698

(Rs in thousand) 2008 12596921 30,605,182 0.412 2009 15143241 18,297,252 0.828

15,935,604 27,489,315 0.282 0.319

In connection to current assets to sales the performance of bank is batter in FY-05 which gradually increased in the nest four year. It shows the batter management of current utilization for generation of revenue. In FY-09 the Total current assets to income is high and almost doubled to base year of 05. in the FY-09 the international economic recession but still bank performance is batter in relation to its current assets, that show the management assets best placement

NOTE Overall ABL has best performed in 2006 with increased net profits, return on equity, it is best to compare ratios with industry averages. Onwards 2006 ABL has converted their operations into fast

growing institution in Pakistan. The result can be seen in the years 2007 to 2009 but it is expected that the financial position will grow up in the year 2008.

HORIZANTAL ANALYSIS OF ALLIED BANK BALANCE SHEET FOR THE LAST FIVE YEARS ENDED 31 DECEMBER 2005 TO 2009 Rupees in thousands Assets Cash & balances with treasury Banks Balances with other Banks Lendings to financial institutions Investments Advances Operating fixed assets Deferred tax assets Other assets Liabilities Bills payable Borrowings from financial institutions Deposits and other accounts Sub-ordinated loans Liabilities against assets subject to finance lease Deferred tax liabilities Other liabilities Net assets Represented by Share capital Reserves Unappropriated profit Surplus on revaluation of assets net of tax 2005 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 2006 131.22 182.93 40.29 77.99 155.97 131.07 102.37 125.51 126.02 86.66 135.13 37.91 65.31 133.28 125.9 119.21 110 156.45 142.85 38.67 119.21 2007 176.2 209.43 176.27 116.3 192.01 161.26 191.63 169.93 135.12 66.42 192.67 3.91 70.31 235.97 169.92 170.15 132 212.42 188.89 106.35 170.15 91.27 270.43 192.91 219.01 175.56 210.71 246.56 125.19 219.01 58.45 334.49 211.48 243.04 263.34 251.79 310.15 14.52 243.04 2008 222.81 276.7 145.44 129.5 221.49 192.45 267.38 194.45 188.87 94.1 213.83 2009 200 131.96 250.3 178.39 225.07 259.02 388.16 213.35 269.8 110.38 231.99

www.abl.com.pk

Horizontal analysis balance sheet In the above analysis, for horizontal analysis we take year 2005 as a base, and all the other values are shown/calculated in percentage in subsequent years. Assets: As we can see that cash balances at bank, with treasury and with other banks has been increased from the year 2005 to 2008 very sharply, but in the year 2009, it falls to 200 and 132. the reason of this is In the year 2009, a major investment has been made in the expansion phase. It can be clearly seen from the heading investment, operating fixed assets and other assets. The generation of funds has been invested in order to expand the business in 2009. The investment was increased from 129% to 178% operating fixed assets from 192% to 259% and other assets 267% to 388% in the same year. It is a sharp increase. Even in the previous years 2006 to 2008. The rapid increase in the above heading was seen but not as much as in the year 2009, which justifies the decrease in cash balances at bank, with treasury and other banks. Lending to financial institutions was reduced to 40% in the year 2006 and then rapid increase was seen in 2007 but in the year 2009, a tremendous fall was recovered. The same reason can be predicted. So far as the advances are concerned, there was continuous increase from year 2006 to 2008, but in the year 2009, the position looked like stagnant. It shows the reliance of the bank is to expand the business. However, if we look overall assets situation, we can see a constant growth from the year 2006 to 2009. Hence, we can conclude that the banks assets position had been increasing year to year which lead to stability as well as growth.

Liabilities: The position of liabilities was very much similar to the assets. Bills payables, deposits and other accounts and other liabilities had shown a synonymous type of trends. The trends were continuously seen and shown in the following paragraph with figures. Bills payable were increased to 269% in the year 2009 as compare to year 2005 but from various increasing steps of 126% in2006, 135% in 2007 and 188% in 2008. Similarly, deposits were tends to increased to 135%, 192%, 213% and 231% in the years 2006, 2007, 2008 and 2009 respectively. It clearly had shown the attraction of new clients towards ABL. Other liabilities were also shown the similar trend and raised to 334% from 2005 to 2009.

However, borrowing from financial institutions had fallen in the year 2006 and 2007 but there is increased in year 2008 and 2009. it may be the change in the methods of borrowing by the treasury department of the ABL. Liabilities against assets subject to finance lease had reduced very quickly from 2005 to 2006 and even in the year 2007, the bank had no such liability. Deferred tax liabilities had shown uneven increase or decrease. It may be due to change amount of provision against deferred taxation. The net assets figure showed the best trends in the year 2006 as sharp increase were recorded. Afterwards, the trend of increase was not stopped but at a lower rate was observed.

Equity: The share capital of the ABL was increased from year to year but in 2009 a rapid fund raising was seen through issuing of new shares. The trust of investors enabled to bank to raise equity and to expand the network of ABL banking system in various parts of the country. As in the ratio analysis we have also observed the expansion phase of ABL was 2007 to 2009. in the same manner, the reserves of the bank directly proportionate to the share capital. The surplus on revaluation of assets was reduced to 38% in the year 2006 and then increased very quickly in the year 2007 to 106% but in the year 2009; the surplus was reduced to 14%. The cause of reduction was transferring the surplus to reserves as well as the amortization against such surplus.

HORIZANTAL ANALYSIS OF PROFIT AND LOSS STATEMENT FOR LAST FIVE YEARS ENDED 31 DECEMBER 2005 TO 2009

2005 Mark-up / return / interest earned Mark-up / return / interest expensed Net mark-up / interest income Provision against non-performing loans and advances (Reversal) / provision for impairment in the Net mark-up / interest income after provisions Non mark-up / interest income Fee, commission and brokerage income Dividend income 100 100 100 100 100 100 100

2006 110.15 80.98 125.09 89.91

2007 215.55 310.11 167.12 206.97

2008 2009 309.22 371.73 505.75 629.57 208.59 239.69 365.65 1270.63

102.25 128.04

195.12 163.5

365.77 1271.11 188.26 106.3

100 100

134.99 69.89

159.79 135.81

193.16 290.31

204.44 364.01

Income from dealing in foreign currencies Unrealized gain/loss on revaluation of investments Other income Total non-markup / interest income Non mark-up / interest expenses Administrative expenses Other provisions / write offs Other charges Total non-markup / interest expenses Extra ordinary / unusual items Profit before taxation Taxation current prior years' deferred Profit after taxation Unappropriated profit brought forward Profit available for appropriation Appropriations: Transfer to: Statutory reserve Capital reserves (reserve for issue of bonus shares) Revenue reserves Proposed cash dividend Unappropriated profit carried B/F Basic/ diluted earnings

100

160.44

315.77

518

581.31

100 100 100 100 100 100 100 100 100 100 100 100

63.78 171.27 140.39 128.47 11.25 128.37 149.48 149.48 100.28

74.26 162.78 163.29 180.46 149.31 180.44 150.34 150.34 94.86

115.53 224.3 198.55 228.18 500.49 228.41 175.98 175.98 112.62

120.93 478.69 212.66 333.46 982.15 334.02 120.93 120.93 11.28 328.17 -47.73 243.05

-58.22 -262.41 -150.87 115.14 104.8 137.33 174.34 183.31 203.97

100

174.34

183.31

350.62

406.23

100 100 100 100 100 100

174.34 220 191.89 110 174.34 145.33

183.31 435.6 165.61 99 183.31 152.85

0 0 0 0 0 85.19

0 0 0 0 0 101.59

www.abl.com.pk

HORIZONTAL ANALYSIS INCOME STATEMENT Markup/return/interest earned: The markup and interest income was slightly increased in the year 2006 but rapid increase was recorded in the subsequent years and even it went up to 371% in the year 2009 as compare to year 2005. The fast increase may be due to increase in investment in those portfolio, which yielded higher

returns. It may also be due to increase in the advances and loans given to the businessmen and various clients of ABL.

Markup/return/interest expensed the depositors trend towards ABL and expansion of the business put the trend over the period 2005 to 2009 in such a manner that it increased tremendously from year to year, especially this rapid trend was observed in the year 2008 i.e. 505% as compare to 310% in the year 2007. Obviously the increase in the deposits of the ABL the markup/interest expense ratio was increased.

Net markup/ interest income This head of income is derived by subtracting the interest/markup expense from interest/markup income. The trend here was looked to be very attractive and consistent, 125% in the year 2006, 167% in 2007, 208% in 2008 and 239% in 2009. from this we can conclude that ABL was making optimal utilization of available deposits and able to generate attractive profits.

Provision against non-performing loans and advances: The rapid and fast increase in provision against Provision against non-performing loans and advances caused by issuing new loans and advances to attract customers. As we have already discussed in various parts of the report that in the last few year, the competition environment has been created, which in turn competes to introduce new products. ABL was succeeded to add new clients and customers. It is a fact that increase in receivables put impact on chances of bad debts that may be the reason for increase in the Provision against non-performing loans and advances especially in the year 2008 and 2009.

Fee, commission and brokerage income: The last paragraph enumerated that ABL was successful by attracting new customers. The functionality of the bank was also increased which ultimately increased the fee, commission and brokerage income. The trend of increase was very consistent as 134% in year 2006, 159% in 2007, 193% in 2008 and 204% in 2009.

Dividend income Dividend income earned by the bank on account of investment made in stock markets. The rapid increase in the dividend income clearly indicates the policy of treasury department to make more investment in the risky business to get higher profitability. The policy of ABL looked very successful

as the dividend income was 364% in 2009 when we compare it to year 2005. However, the major change was observed in the year 2008 when a tremendous increase was indicated.

Income from dealing in foreign currencies

According to an article published in the management accountant edition NOV-DEC 2009, the business of foreign currency exchange was groomed in the last five year with a swing. The same trend can be seen from this analysis. The reason is to introduce a lot of branches to deal in foreign exchange, especially in the year 2008. In the same year, another reason might be the depreciation of local currencies against world reputed currencies like US dollars, UK pounds and EUROS.

Other income

Other income of the bank should be directly proportionate to increase in interest income as well as increase in the clients/customers of the bank. However, the trend in the ABL was quite opposite in the year 2006, which fell to 63% as compare to year 2005. but afterwards, the trend was established and a continuous increase was seen. The reason may be the total reliance of the bank on interest income.

Non-markup/interest expenses

Non markup/interest expenses head includes administrative expenses, other provisions/write-off and other charges, but the major portion is administrative expenses. The trend was looked alike the interest and non-interest income. The growth in the ABL not only increased the income portion but also increased the expenses portion. The constant increase up to year 2008 was recorded, but in 2009, the rapid increase was seen. The reason may be the same it the expansion phase of the ABL.

Profit before taxation and after taxation

The profit before taxation was increased to 149% in the year 2006 as compare to base year 2005. In the year 2007, a slight increase was recorded. But in the year 2007, again a rapid increasing trend was observed. However, 2009 was the year in which before taxation profit fell down to 120% as compare to 175% in 2005. The possible reason may be introduction of new branch in various cities resulting increase in operating cost. When operating cost increasing trend was higher than revenue

generation, then definitely impact in the form of reduction in profits can be there. The same was observed here. So far as, profit after taxes is concerned, it shows a similar trend of increasing. It was because of adjustments of provision for taxations current as well as provisions for deferred taxation. The continuous increase in after tax profit went up to 243% in year 2009 as compare to 2003% in 2008, 183% in 2007 and 174% in 2006 keeping in view the year 2005 as base.

Basic/diluted EPS

EPS in the years 2006 and 2007 was ideally increased but in the year 2008 it fell down to 85%. However, the slight increasing trend continuous. The decreases in EPS may be issue of new shares fro fund raising and introduction of new branches of the ABL throughout the country. But year 2009 against showed the growth in EPS as compare to year 2008.

VERTICAL ANALYSIS OF BALANCE SHEET FOR THE LAST FIVE YEARS ENDED 31 DECEMBER 2005 TO 2009 Assets Cash balances with treasury Banks Balances with other Banks Lendings to financial institutions Investments Advances Operating fixed assets Other assets 2005 8 3 7 26 52 2.34 1.67 100 Liabilities Bills payable Borrowings from financial institutions Deposits and other accounts Sub-ordinate loans Liabilities against assets subject to finance lease Deferred tax liabilities Other liabilities Net assets 2006 8 5 2 16 65 2.42 1.36 100 2007 8 4 7 18 59 2.2 1.88 100 2008 9 4 5 17 60 2.29 2.3 100 2009 7 2 8 22 55 2.81 3.04 100

1 19.79 76.74 0.74 1 1.19 100

1 13.62 82.37 0.99 0.23 0.52 1.26 100

1 7.74 87.02 2.19 0.02 0.41 1.66 100

1 9.65 85.07 1.93

2 10.33 84.18 1.76

0.47 1.67 100

0.28 1.89 100

Represented by Share capital Reserves Un-Appropriated profit Surplus on revaluation of assets net of tax

29.26 70.73 100

22.53 77.46 100

20.45 79.54 100

20.83 60.45 18.71 100

24.84 57.42 17.72 100 www.abl.com.pk

VERTICAL ANALYSIS OF BALANCE SHEET Assets In the vertical analysis the total value of assets are taken as a base in order to calculate percentage share of each head of account in the assets. The overall picture of the assets looked very stable. Cash and balance with treasury bank and with other banks showed a similar view. However, in the year 2009, the total percentage of cash balances declines to 7.33% with treasury and 1.92% to other banks. Lending to the financial institutions is only head of account under assets, which gave uneven idea. In the year 2004 it declined to 2.17 but thin in 2007 it increased to 7.01. Similarly in 2008 it reduced to 5.05 but again 2009 enhanced to 7.93. Keeping in view the base as total assets we can conclude that major portion of assets comprised of advances, about more than a half of total assets in each year. In year 2005, share of advances was 52.44% in 2006, 65.17% in year 2007, 59.25% in year 2008, 59.73% in year 2009. The total share was 55.32%. Another considerable contribution was of investment i.e. one quarter of total assets in approximation. Remaining about 25% share of total assets related to cash balances with treasury bank, with other bank lendings to other financial institution and other assets. The overall positions of assets are not fluctuating. Liabilities The major portion of total liabilities was of deposits and other accounts that was a good sign for ABL. In 2005, the deposits were about 76.74% of total liabilities, the share in year 2006 and 2007 tend to increase as in 2007, and total percentage of total assets was recorded at 87.02%. However, in the year 2008, the share was declined by 2% and then in 2009 by 1%. The diversion was transferred to borrowings from financial institution. The share of bills payable seemed to be very much stable as 1.21% in 2005 to 1.55% in year 2009 with slight increase and even decrease in year 2007. Subordinated loans share in year 2005 was nil, but from the year 2006 to 2009, it contributed between 1% to 2% shares to total liabilities. The remaining 2% to 3% share of total liabilities comprised of liabilities against assets subject to finance lease, deferred taxation and other liabilities. The liabilities against assets subject to finance lease were terminated in the year 2008 and also not

found in 2009. The percentage share of deferred tax liabilities decreased to 0.28% in the year 2009 as compare to 1% in year 2005. In short we can conclude that ABL was able to maintain its liabilities with stability. Shareholders equity From this section one thing looked very clear that in the year 2005 to 2008, the ABL has not any unappropriated profit. It means that after distribution of dividend. Banks policy is to transfer all the revenue reserves to Reserves Account. However, in the year 2008, the balance sheet showed unappropriated profit of 17% to 18%. But overall reserves remained constant. The major portion of the equity section was also recorded as reserve. The portion of share capital during this period tend to decrease due to high profitability, but in 2009 the issue of large amount shares converted the share to 24.85% as against in the year 2009

VERTICAL ANALYSIS OF PROFIT AND LOSS STATEMENT FOR LAST FIVE YEARS ENDED 31 DECEMBER 2005 TO 2009 Administrative expenses Mark-up / return / interest earned Non mark up income Fee, commission and brokerage income Dividend income Income from dealing in foreign currencies Gain on sale of investments Unrealized gain/loss on revaluation of investments Other income Total non-markup / interest income Total markup and non mark up income Mark up expenses Non mark up expenses Administrative expenses Other provisions / write offs Other charges Total non-markup / interest expenses PROVISIONS Provision (Non-performing loans & advances) (Reversal) / provision for impairment in the value of investments Bad debts written off directly Total expenses markup and non mark up 2005 81.03 10.44 0.75 2.24 0 0 5.54 18.97 100 27.44 28.57 0.02 28.59 2006 73.31 11.57 0.43 2.96 8.83 0 2.9 26.69 100 18.25 30.15 2007 84.98 8.12 0.49 3.45 0.97 0 2 15.02 100 41.4 25.08 0.02 25.1 2008 85.48 6.88 0.74 3.97 0.76 -0.02 2.18 14.52 100 47.35 22.24 0.04 22.28 2009 76.84 5.44 0.7 3.33 11.98 0.01 1.71 23.16 100 44.07 24.3 0.06 24.36

30.15

6.14

4.53 0.62

6.18 -0.35 5.83 72.33

7.66

19.89 0.01

6.14 62.17

5.15 53.56

7.66 77.29

19.9 88.33

Profit before taxation Taxation current prior years' deferred Profit after taxation www.abl.com.pk

37.83 17.38 -1.49 57.9 21.94

46.44 14.31 0.71 82.32 31.42

27.67 8.02 -1.82 1.9 19.57 19.57

22.71 6.68 0.77 15.72 15.27

11.67 0.5 -1.19 -1.25 -4.39 13.6

VERTICAL ANALYSIS OF INCOME STATEMENT For the whole income statement the combination of both markup/interest and non-markup/income was taken as a base. As we can see in the above analysis the total markup and non-markup income showed 100% in each year. All the other corresponding figures are based on it.

Income As earlier discussed, the income group was consisted of both markup income and non-markup income. The above analysis clearly indicated a major portion of total income was a markup income. And it should be as the business of banking is based upon it. In the year 2005, the share of markup income was 81.03% but it was reduced to 73.31% because of diversion towards gain on sale of investment. In the year 2007 and 2008 it again remained increased and stable. But again in year 2009, it fall down and the same reason was record. In short, we can conclude that ABL was succeeded to maintain the share of markup income to its total income. In the year 2006 and 2009, the decline was affected by gain on sale of investment. The non-markup income portion was about 20% in each year except in 2006 and 2009 against due to gain on Sales of investment. The non-markup income comprised of fee, commission and brokerage income, dividend, income from dealing in foreign currencies gain on sales of investment (almost negligible) and other income. The combination of all of these non-markup income portion showed same picture except fee, commission and brokerage income whose share were started to decline from the year 2007 to 2009. However, the year 2006 and 2009 figures were offset by gain on sale of investment as 8.83% in 2006 and 11.98% in 2009 as against 0.97% in year 2007 and 0.76% in 2008. The total expenses (both markup and non-markup) share to total income was 62.17%, thus leasing 37.83% profit before taxation. However, the ABL was succeeded to reduce the share of expenses to 53.56% leaving 46.44% for PBT. But from the year 2007 to 2009, the trend of expenses tends to increase. The increase in operating cost was due to expansion and introduction of new branches as discussed earlier. The tremendous increase in total expenses was recorded in the year 2007 by 18% but afterwards by 4% in 2008 and further 11% in 2009 the PBT for the year 2009 was minimum i.e.

11.67% as compare to all of the years mentioned in the profit. The decline in the PBT was not due to decrease in profitability but due to excessive operating cost incurred for expansion. Its ultimate effect is predicted to coming one or two years. Definitely, when all the branches will operate at its capacity level, the PBT share shall increase. In the year 2005, the proportion of both markup and non-markup looked same but year 2006 showed a different picture. Its operating (non-markup) expenses portion was 30% as against just 18% markup. The reason may be again the expansion phase, but onwards, the portion of markup income was more as compare to non-markup portion. Its reasons may be that the ABL was succeeded to hold major portion of business and to attract the depositors to make their investment there. Ultimate result can be seen from portion of markup expenses enhancement. The PAT share showed the same trend as we have discussed in PBT figures. The basic emphasis of the bank is PBT rather than PAT. As it is a fact that higher profit higher taxation. The bank was also succeeded to implement the policy of provision for taxation in good manner as that can be judged from PAT. Finally we can conclude that profitability and financial position of ABL were tend to increase from year to year and showed very stable position.

Work done by employee

I am working as investment consultantin ABL bank Queen road Sargodha. My department is Assets Management and I deal in Mutual fund. The objective of the ICs is to represent ABL AMC in both retail and corporate world, introducing the funds, getting investments and generating sales leads. They are supposed to guide the customer accordingly, explaining facts and numbers and reporting directly to their retail manager, providing timely reports, or as required. The ICs are placed in all the designated branches of ABL and are under the direct supervision of the ABL branch managers. ICs will utilize the first half of the day by being seated in their respective branches facilitating existing and prospective customers of thtat branch with the consent of the branch manager and second half will be utilized mostly for out of branch activities such as meeting and/or collectionof investment and/or redemptions. The functional responsibilities of the ICs are as follows: Bringing in fresh investments and to introduce new baseling customers to the AMC. Achieving the assigned monthly targets of investments and account opening. Ensure completion of all formalities as per know your customer (KYC) for new accounts

opened. Driving cross sales to the existing customers by providing investment opportunities. Making courtesy calls/visit to existing customers on periodical basis. Growing and managing his/her investment portfolio of individual/basic clients. Preparing and submitting periodical (daily/weekly/monthly) reports to his respective RM. Participating in all products and process related training sessions organized from time to time.

How To Invest 3 steps to Invest in ABL AMC Funds

Contact Us:

Call us on our Toll Free number 0800-ABLAM (225-26) to let our Investment Consultant guide you better. Visit ABLs designated Branches to be facilitated by our investment Consultant. Email us @: contactus@ablamc.com and we will answer all your queries. Visit us on our website www.ablamc.com for information and guidance.

Investment Process Forms

Our investment advisors will help you fill the required forms; o ABL-Funds Form 1 Account Opening Form o ABL-Funds Form 2- Investment Form o KYC Form (Know Your Customer Form)

Payment Mode

Payments can be made through Cheques / Demand Draft or Pay Orders Payments shall be made in favor of: "CDC-Trustee ABL Fund Name [Income Fund,Stock Fund, Cash Fund,Islamic Cash Fund]"

Documents to be attached

For Individuals: o Copy of CNIC ( Incase of Joint Application, CNIC of all applicants is required). o Zakat Affidavit ( Incase of exemption from Zakat)

For Corporate o Memorandum and Articles of Association/Bye Laws / Trust Deed. o Power of Attorney or other document authorizing the authorized signatory(ies) to sign the application. o Board Resolution authorizing the Investment. o Copy of CNIC(s) of the Authorized Signatory(ies).

Submission of Documents

You may submit your documents at the designated branches of ABL or Drop them / courier them at ABL AMCs Head Office: First Floor, 11-B, Lalazar, MT Khan Road, Karachi. Once we receive the documents, a registration number will be generated and allotted to you. Units will be issued against your investment on the applicable Net Asset Value (NAV) as per offering document. An introductory letter will be dispatched to confirm your investment in ABL AMC Funds.

How To Invest 3 steps to Invest in ABL AMC Funds

Contact Us:

Call us on our Toll Free number 0800-ABLAM (225-26) to let our Investment Consultant guide you better. Visit ABLs designated Branches to be facilitated by our investment Consultant. Email us @: contactus@ablamc.com and we will answer all your queries. Visit us on our website www.ablamc.com for information and guidance.

Investment Process Forms

Our investment advisors will help you fill the required forms; o ABL-Funds Form 1 Account Opening Form o ABL-Funds Form 2- Investment Form o KYC Form (Know Your Customer Form)

Payment Mode

Payments can be made through Cheques / Demand Draft or Pay Orders Payments shall be made in favor of: "CDC-Trustee ABL Fund Name [Income Fund,Stock Fund, Cash Fund,Islamic Cash Fund]"

Documents to be attached

For Individuals: o Copy of CNIC ( Incase of Joint Application, CNIC of all applicants is required). o Zakat Affidavit ( Incase of exemption from Zakat)

For Corporate o Memorandum and Articles of Association/Bye Laws / Trust Deed. o Power of Attorney or other document authorizing the authorized signatory(ies) to sign the application. o Board Resolution authorizing the Investment. o Copy of CNIC(s) of the Authorized Signatory(ies).

Submission of Documents

You may submit your documents at the designated branches of ABL or Drop them / courier them at ABL AMCs Head Office: First Floor, 11-B, Lalazar, MT Khan Road, Karachi. Once we receive the documents, a registration number will be generated and allotted to you. Units will be issued against your investment on the applicable Net Asset Value (NAV) as per offering document. An introductory letter will be dispatched to confirm your investment in ABL AMC Funds.

Conclusion
ABL is a leading market player in the financial sector in Pakistan. Despite of the fast changing market conditions and narrowing of traditional lucrative margins on loans, ABL is a bit slow in committing itself to seek out new opportunities and make its existing operations more efficient. The Electronic Technology Department (ETD) needs further improvement, developments and technologies by including new products and services. Although Phonic Banking, Online Banking, Internet Banking, Balance Transfer Facility, ATM (Auto Teller Machine), Online Availability of Different Application Form. All of them continue to receive encouraging response from the consumers but still considerable attention is required for further improvement. The ETD staff working at branch level is not fully trained because their technological skills are less developed for which the Bank along with the ETD has to make a complete, sound and separate training program to develop their skills. As staff being the principal asset of the Bank, should be groomed through professional development.

Knowledge of Risk Management is Missing: The main purpose of financial and Banking organization is to create valuable system by interacting with its environments, customers, constituents, suppliers, technology, competition, economy, government, etc. A valuable system is created by the conversion of a available resources i.e. human, financial, physical, and intangible assets into goods and services that fulfill the needs of the customers and save the vest interests of Banking and financial organization. Risk management performs all these diversified but integrated work to achieve maximum out-put. Managing risk is actually managing the organization, planning, organizing, directing and controlling organization systems and resources to achieve objectives. Managing risk must come from within and act to change the organization and its response to changes in the environment. Now many domestic Banks are hiring experts of risk management to secure their precious assets. Allied Bank Pakistan has created risk management group at head office but they must adopt this police at regional level to save the best interests of the Bank and enhance the chances of investments.

Recommendations

Recommendations are supposed to be the most important part of JObreport. A good report is said to be completed and important only when recommendations are given. To get suggestions, discussions have been conduct with the staff of ABL officers. The cooperative staff helped me a lot and provided me the basis for recommendations and also pointed out some areas, where the change for the development is essential. Despite of the fast changing market conditions and reduction of traditional profitable margins on loans, Allied Bank Limited is a bit slow in commit itself to seek out new opportunities and make its existing operations more efficient. For that purpose, I suggest the following recommendations.

The Bank should plan to enhance its ATMs and Internet Banking Services with new features like inter-branch funds transfer, and the payment of utility bills more quickly as they are doing. The Bank should also plan to setup a call center and Data Warehouse to enhance the timeliness and quality of services. The future focus of the ABL should be to improve the automation of the accounting processes and enhance the quality and effectiveness of MIS. Although the Banks products and Services are structured to cover and improve the quality of lives of all important towns and cities but the Bank should also start to explore new markets in the smaller towns in the rural areas of Pakistan for its Retail Banking products, supported by technology based services. The ABL should increase press coverage and advertising to create effectively market its corporate as well as product/Brand image. The H.R.M Department of the ABL should effectively increase its focus on providing in house training staff, which should be conducting training services all, year around to enhance professionalism and employee development. The marketing policies and strategies should be clearly written and communicated to all the staff members. The Branch Managers must make the use of the staff in pursing the organizational objectives.

References Annual Report of ABL 2009. Annual Report of ABL 2008. Annual Report of ABL 2007. Annual Report of ABL 2006. Annual Report of ABL 2005. Annual Report of ABL 2004. A Review from Daily The News. Iffland, Charles &Langueton, Pierre. (1996) International Banking, Irwin Book Co., New York. Khan Rana, SafdarHussain& Khan Rana, Ahmad Shabir. (1991) Banking Currency and Finance, IlmiKutabKhana, Lahore. SardarAslam (1999) Banking & Finance Principal (Retd) Govt College of commerce Abbottabad... Saeed, M Nasir. (1994) Economics of Pakistan, IlmiKutabKhana, Lahore. Siddiqi, Asrar H. (1998) Practice and Law of Banking in Pakistan, 6th Ed, Royal Book Co, Karachi. www.AlliedBank.com.pk www.sbp.org.pk