Parents
&
Teachers
For their love, affection and guidance
ACKNOWLEGDEMENT
All praise to Almighty Allah, the most merciful and compassionate, who give me skills
and abilities to complete this report successfully.
I pay all of my praises to the Great Prophet of Islam, Hazrat Muhammad (P.B.U.H) with
whose name my heart is enlightened and I feel the surging waves of real mirth, deep
down my soul.
I am also thankful to the management staff of Allied Bank Khayban-e-Jinnah, Lahore for
being cooperative during my internship and providing me information of report and I
would specially thank Mr. Muhammad Umar Asaf Jah (Operation manager, Allied
Bank Khayban-e-Jinnah, Lahore) for his support and involvement in helping me
prepare this report and completing my internship.
I would like to extend my gratitude to my internship advisor, Ms. Ayesha Aziz for her
advices, appreciations, and valuable suggestions in my work, which made it possible to
complete my Report.
TABLE OF CONTENTS
SUMMARY
This report gives a complete view about my internship of six weeks. The report contains
a brief introduction to Allied bank limited with its mission vision and values. ABL is a
broad based bank, providing his services for all type of customers, have a large network
of branches in & outside of the city. All branches are computerized and connecting
through each other through Internet. Looking at its business processes it has three
basic departments and which is further divided into sub departments. Allied bank chain
of command of branches starts from chief manager and further it goes to operation
manger who deals with all the department officers. I have worked in operation
department of Allied bank Khayban-e-Jinnah Lahore branch so the report gives a good
locker department, billing department etc. This report gives information on all operations
or activities held in these departments of Allied bank. SWOT analysis of ALLIED BANK
shows that it has large number of strengths and some of weaknesses and threats. The
bank should give attention to this drawback. But bank has lot of opportunities to improve
its quality of services, and do efficient banking. Bank should give proper attention to
overcome its threats. In last i have well understanding with all the information given in
this report.
INTRODUCTION
TO
ORGANIZATION
OVERVIEW
Before giving the history of Allied bank it’s important to know that from where the word
Bank as originated. Basically the name bank has derived from three words i.e. BANCO,
BANCU, BANQUE and BACK. Bancu is an Italian word which means desk/ bench
used by Florentine bankers, who used to make their transactions above a desk covered
by a green tablecloth. The word BANCU is originated from Ancient Roman Empire
where moneylenders would set up their stalls in the middle of enclosed courtyards
called macella on a long bench called a bancu, from which the words banco and bank
are derived. According to French experts, it has been derived from the French word
‘Banque’. Whereas Germans say that the word Bank has been derived from the
German word ‘Back’, which means ‘Joint stock fund’. The given figure gives a picture
of origin of word bank.
Bank
(English)
When talk about banking in Pakistan at the time of independence in 1947 the banks
services were very badly affected and by June 30, 1948, the number of offices of
scheduled banks came down to only 81 in the territories comprising Pakistan; but by
December 31, 1973 there were following 14 scheduled Pakistani commercial banks with
3323 offices all over the Pakistan and 74 offices in foreign countries.
National Bank of Pakistan
Habib Bank Limited.
Habib bank (Overseas) Limited.
United Bank Limited.
Muslim Commercial Bank Limited.
Commerce bank limited.
Standard bank Limited.
Australasia bank limited.
Bank of Bahawalpur Limited.
Premier bank limited
Pak bank limited.
Sarhad Bank limited
Lahore commercial banks limited.
Punjab Provincial Cooperative bank limited.
The facts show that commercial banking has made tremendous progress and achieved
a phenomenal growth since independence and that the commercial banks have duly
played a vital role as a mobilizer of people's saving to constitute the most important
source of financing in country economy. However it was felt that these banks failed to
ensure that the resources so mobilized by them flow in those sectors of economy where
they would produce the goods and services needed badly by a very large number of
people in Pakistan.
GENERAL DEFINITIONS
Allied Bank is the first Muslim bank, to have been established on the territory that
became Pakistan. Established in December 1942 as the Australasia Bank at Lahore
with a paid-up share capital of Rs. 0.12 million under the Chairmanship of Khawaja
Bashir Bux, the Bank had attracted deposits, equivalent to Rs. 0.431 million, in its first
18 months of business. Total assets then amounted to Rs. 0.572 million. Today Allied
Bank's paid up Capital & Reserves amount to Rs. 10.5 billion, deposit exceeded Rs.
143 billion and total assets equal Rs. 170 billion. The Allied Bank's story is one of
dedication, commitment to professionalism, adaptation to changing environmental
challenges resulting into all round growth and stability, envied and aspired by many.
VISION
MISSION
VALUES
Integrity
Excellence in service
High performance
Innovation and growth
ORGANIZATIONAL
CHARTS
CHAIN OF COMMAND (Top to Bottom)
Central office
Head Quarters
REGIONAL
OFFICES
Branches
Sub-Branches
CHAIN OF MANAGEMENT (IN BRANCH)
Chief
manager
Operation
manager
In branch there is two main authorities whose check all the activities in the branch.
These personalities are chief manager and operation manager of the branch.
CHIEF MANAGER
OPERATION MANAGER
CENTRALIZATION
In ABL decentralized system is used. The top management delegated theirs authority to
Group’s Head of different Departments. Then they further delegated their authority.
In branch the Chief Manager has authority to run all functions of the branch, then he
delegate his authority to CSM to check the bank matters
DECISION MAKING
Chief Manager makes all the policies of the branch and important decisions with the
help of operation manager.
The operation manager makes decision about day-to-day activities.
TECHNOLOGY
In ABL software called Linux is used. All the electronic activities is performed through
this software. It is vary fast way of communication
Its result is very accurate. All the Online, draft payment, and other activities are
performed through this software.
BUSINESS PROCESS
ANALYSIS
There are three basic departments of ABL and which is further divided into sub
departments. Basic departments are:
Operation department
Credit department
Foreign trade department
OPERATION DEPARTMENT
Accounts department
Clearing department
Foreign exchange department
Billing department
Locker department
ACCOUNTS DEPARTMENT
ACCOUNT OPENING
1. All accounts opened in ABL are required proper introduction from the account
opener
2. It should be thoroughly verified that customer profile has been completed as
required.
3. The account openers must sign account opening forms in the presence of customer
service manager or chief manager.
4. If there is some mistake in filling account opening form than its necessary to take the
sign of account opener because it is to confirm that the information was not changed
in his absence.
The CSM will perform due procedure and ensure to Know Your Customer principles will
be responsible for customer interviewing.
1. Individual accounts in case the CNIC does not contain a photograph, the bank
should obtain other documents like Driving License.
2. In case of salary account, attested copy of his service card is required.
3. Full particulars of occupation should be mentioned.
4. If a blind person is properly introduced, then this account should be opened with
a photograph affixed on the account opening form as well as the specimen
signature card.
5. In case of illiterate person, attested passport size photograph of the new account
holder besides taking the right and left thumb impression on the specimen
signature card.
UNCLAIMED ACCOUNTS
1. Those current and PLS Saving accounts which remain inoperative for 10
years from the last date of operation are classified as unclaimed account
2. In case of term or time deposits, its date of in operation are counted from the
Dates of their expiry of tern
CHEQUEBOOK ISSUANCE
1. To facilitates customers to withdrawal cash from their account cheque books are
provided to account holders.
2. The cheques are the most important, convenient and well-established medium of
modern banking used for withdrawals of funds.
POLICY
Cheque books against new account shall be issued against requisition form after
account opening is approved by the officer.
STOP PAYMENT
The given information covers the stopping payment, and returning the specific cheques,
un-paid.
POLICY
Stop payment instructions shall be received in writing, however instruction on
telephone are also entertained provisionally which must be confirmed by letter.
Charges shall be recovered for each stop payment instruction as per bank’s
latest schedule of charges.
Stop payment instructions shall remain in the system for bank cheques until the
cheque in question are presented and returned or the account is closed.
ACCOUNT CLOSING
DRAFT PAYMENT
Drafts drawn in PAK rupees crossed and restricted for credit to payees A/Cs are
generally received through “CLEARING” or on special collection bank.
Quite a number of drafts not bearing restrictive endorsements and crossing are
presented at ABL counter for encashment. Proper identification is needed for
such draft
Pay order is bank instrument issued by a bank in PAK rupees at the request of
the customer to transact payment to named payees through banking channel.
Generally payment against such cheques (pay orders) is restricted to “Payees
account” and as such is required to be enrooted through a Bank Account locally.
CLEARING DEPARTMENT
CLEARING
Clearing is a process whereby bankers settle their mutual accounts for claim arising on
account of various instrument presented by one bank drown on the other.
Where the SBP has its offices; the clearing has controlled and managed by the SBP. At
other places, this function is performed by the NBP. The assembly of representatives of
the member banks is the CLEARING HOUSE.
Clearing house in every city has its own timing for exchange of cheques and for return
of unpaid cheques.in cities where NIFT is functional the cheques deposited drown on
ABL branches/ other banks of the area are delivered to NIFT for clearance.
CASH TRANSFER CHEQUES: are those, which are, drowning on the same
branch, which they are received.
TRANSFER DELIVERY CHEQUES: are those, which are, drowning on other
branches of the bank in the same city.
COLLECTION CHEQUES: are those proceeds of which are collected from
outstation banks
ACCEPTANCE OF CHEQUES
Cheques is crossed but not specially crossed to any other bank
Cheques is not damage or torn
Cheques is not post dated or stale.
Amount in word & figures is the same.
Nothing on cheques indicates that the account holder is not entitled to
receive the amount
Cheques is drown on branch of a bank functioning with in the city
INWARD CLEARING
The inward clearing instruments are received by the branches along with a jotting sheet
and the following steps are taken by the branches:
a. Fresh jotting is taken by the branch, of all cheques are received inward clearing
and the total is got tallied with the total of jotting sheet provided by the NIFT in
the inward clearing register.
b. The clearing in authorized officer checks special crossing; clearing stamp and
endorsement on each instrument.
c. For the cheques honored the following transactions are passed.
Dr. Concerned account
Cr PAK account
SPECIAL CLEARING (SAME DAY CLEARING)
a. Same day clearing includes the cheques received by authorized branches of
member banks with in the 4 KM radius area of NIFT office.
b. The cheques of 500000/- & and above received by the branches in early hours.
c. The charges for the same day clearing are received by the collecting branches
from the customer where as they are no charge for local clearing
POLICY
1. All receipt of foreign currency for credit to the foreign currency accounts and
payments out of such accounts is required to be reported to Treasury. COK on a
daily basis and to State Bank of Pakistan on monthly basis.
2. All non resident accounts fro “Classification Of Deposit” purpose should be
identifiable as “Non-Resident accounts”
3. In view of excessive shipment and insurance cost, the banks may charge
handling commission against deposit of foreign currency.
4. Minimum balance for opening of saving account/ issuing of term deposit shall be
advised by the central office Karachi.
PROCEDURE
1. Customer sign on foreign currency account opening form, specimen signature cards
in the presence of CSM.
1. The customer due diligence is completed to determine the true identity of the
customer.
2. Opening of account is approved by CSM
3. A “10” digit account is created in the system, detail such as account title, address
and type of account.
4. Pay in slip for depositing cash filled up and check for correctness all information
Cash Department deals with the Cash Receipts, Cash Payments and Utility Bills
(Telephones Bills, Soi Gas, & Electricity Bills).
LOCKERS
Lockers/ services are extended at several branches, to facilitate customers to protect
their valuables form ever increasing threats to security.
SAFETY STANDARDS PERTAINING TO LOCKER’ VAULT
1. Lockers are placed in the standard strong vault fitted with the grill door and heavy
door. Combinations separate from main cash vault.
2. Armed Security Guards are deployed in the branch day and night.
3. Lockers rooms are secured from all sides and constructed as per specification of
the bank for lockers.
4. Branch having Lockers display sign board “lockers available” in the branch lobby.
LOCKERS KEYS
1. Keys of un-rented locker and spare locks, if any, is entered in the register and
stored in the cabinet placed in the lockers vault under dual control these keys
are taken when lockers are required to be rented.
2. Access to locker’s room is allowed to the lessees only prohibited to the staff
not connected with the lockers.
3. Stock of the keys pertaining to un-rented is physically verified quarterly and
balance on the monthly.
CREDIT DEPARTMENT
I haven’t worked in credit department but giving brief introduction to it. ABL financing
department is very strong and involved in many types of financing, but there are two
most important, Cash & Running financing.
ABL makes many type of Loaning for their customer. This Loaning is against Pledge,
(Property or Security).Flexibility on interest rate is depend on the size of the
Loan.ABL makes 50% loan on 100% security.
Some silent features of these Loans are: -
A. CASH FINANCING
This is a seasonal financing.
Have large amount
This loan is makes against pledge (stock). The consumer cannot sale his
stock without the permission of the bank.
B. RUNNING FINANCING
This is regular financing.
Have large amount
This loan is depend on the condition of the business
C. AGRICULTURE FINANCING
This is a regular loan
Heavy amount
It is makes against the Pass Book of the land
The customer cannot sale his land without the permission of the bank
D. CONSUNER FINANCING
Interest rate is high on consumer financing
There are many type of loans under consumer financing
I) Home loans II) Education loans III) Car loans
LETTERS OF CREDIT
All export except those specifically exempted in the import policy, are subject to
compulsory Letters Of Credit/ registration of contracts with the banks.
A letter of credit is defined as negotiable instrument issued by a bank at a request of the
customer, undertaking to repay the negotiating bank, subject to compliance of all terms
and conditions specified therein.
Payment under LC is made either on presentation of a draft drawn at sight
accompanied by document as specified in the credit. Or by acceptance of a “bill of
exchange” for payment of maturity of the issuance period (30, 90, 120 days)
SWOT ANALYSIS
AND
COMPETITIVE
STRATEGIES
SWOT ANALYSIS
STRENGTHS
Salaries of the employees at ABL are now very reasonable. The newly hired
graduates are paid very smart salaries that enhance their capabilities.
The rates of interest on financing schemes at Allied Bank Limited are very low as
compared to other PRIVATE Banks that helps a lot in attracting customers
towards ABL.
Allied bank starts more and more schemes for their customers.
It has arrangements with large number of Correspondent Banks/Exchange
Companies.
Entertainment facilities are available in the Bank when customer goes to the
Bank and wait for a longer time. These facilities are newspaper, magazines, etc.
Auditing is done twice time monthly. There is also surprise audit after 4 months
or 3 months.
WEAKNESSES
Customers have to wait for a long time in rows; even no proper sitting arrangement
is given to the customers.
The advertisement facility is not so good to attract the proper clientage and to
reflect the true image of the bank. It creates more ambiguity among the customers
about the policies and the facility rendered by the bank.
The IT is not good of ABL. Systems get hanged and customers has to wait.
ONLINE SYTEM is not as good as mostly branches are link down whenever
transaction is needed.
Advances rate of Allied Bank is also very low with respect to its competitors..
Top management sometime show very harsh behavior with employee, it makes
Dissatisfaction in job.
The staff is less in this branch so in the absence of any staff is really difficult to
handle the work load.
OPPORTUNITIES
Bank can provide attractive saving schemes; he can attract more customers for
saving their money into the bank
ABL online system is available in every branch; by improving it more the bank
capture more market shared
ABL has a large number of branches, if management provides highly qualified
staff, and quality of service; they get a leading position in banking sector
An ABL ATM service is free from charges, through to this service he can take a
dominant step in his success but it also needs some improvement.
ABL classified Loans are very short. So he can make more loans for increasing
their revenue
By applying a good technology in every branch, he can give more customer
satisfaction
THREATS
COMPETITIVE STRATEGIES
It’s not so easy for banks now days in this global competition to survive and make a
good place in the market. They need high-quality strategies to deal with it and keep up
the competition.
ABL Bank had embarked upon a two-pronged strategy of adopting a rationalization
program to bring down costs, introduce innovative products and offer good services to
customers.
Measures, which have already been implemented, are set out below:
With the objective of achieving decentralization and cutting down expenses, the
decision-making has been reduced from four to two tiers. 68 controlling offices,
comprising of 4 provincial, 18 circle and 46 zonal offices have been consolidated
into 16 regional offices.
With a view to improving efficiency and right sizing the ABL network, 66 branches
have been closed or merged.
.
Treasury operations have been re-organized on a modern technology platform.
The Bank now plans to focus on further strategic objectives, as set out below:
Anticipating customer needs, ABL is increasing its focus on new products and services
through leveraging its extensive branch network. The Bank is introducing various types
of financing structures tailored to the capital investment requirements of its corporate
clients as well as small & medium sized enterprises.
2. Focus on consumer banking:
Making use of its computerized network of branches, the Bank plans to enhance its
market share and profitability via focusing on consumer banking products and
services as well as integrating e-banking into its delivery channels.
Online facility
Now the bank gives you the absolute convenience of instant access to a host of banking
facilities and personalized services 24 hours a day, 7 days a week, 365 days a year.
Simplify the way you bank and experience a higher level of convenience.
Online features
The toll free number connects to Allied bank by dialing from anywhere within Pakistan.
Call costs nothing to the customer and they can easily contact the staff of allied bank.
By offering all of the above ABL makes its way through the tough competition of the
day. This helps the bank to keep pace with growing needs of its customers and
anticipate their future needs and manage them accordingly in time thus to make sure
that the quality is not compromised and the customers get what they want.
WHAT I LEARNED AT ABL
LEARNED AS AN INTERNEE
Although the operations of a single bank are very wide but the branch in a specific
location do not provide all those services and functions as per the requirement of the area
or the customers residing in that area. As an internee, I worked in the following fields of
departments;
The person who desires to open an account with allied Bank Limited has to submit the
application for account opening on a prescribed form along with the initial deposit. The
accounts document requirement should be fulfilled properly. If for any reason the
account is opened with incomplete documents or information, or if the bank requires any
further information at any time, the bank may contact the account holder and get the
required information. Only one account in a particular type can be opened in the same
name.
The detailed procedure of the opening of account with Allied Bank Limited is given in
the following;
First of all, the customer gives an application on a prescribed format to open an
account with the bank.(in business account)
The responsible person on account opening seat will enquire that customer that
why he wants to open that particular account, and where he resides, if he lives far
from the area of the bank, the person might be suspicious.
The question must arise in the mind of the banker that why he chooses our branch
instead of opening an account at the nearest branch to his area.
After that an account opening form is given to the person to fill it completely.
Account opening form should be duly signed. The specimen of signature card is
given to customer and that must be filled carefully.
Copy of CNIC or Passport, Original must be seen by the Account Opening Officer
and copy attested by him.
The certificate from the employer of the customer must be obtained to confirm that
he works over there.
The person opening the account must mention the amount depositing at the time of
opening of account.
The customer must also have to fill the KYC (know your customer form).
After completion of the above procedure, the account opening officer checks all the
form carefully and send it to customer services manager and chief manager and
give an account number.
After that, a letter of thanks is sent to the customer as well as to the introducer. It is
also a way to confirm the customer ’s address.
The major information that the customer has to fill in is given in the following.
Branch Code
Date of Opening of Account
Nature of Account (For Example, Current, PLS, Foreign Currency, Joint
Account etc.)
Passport size photograph of the person duly attested.
Name of the person or Firm
Initial Deposit
Purpose of Opening of Account
Addresses of Next to kin
Clear signature of the person.
The procedure of issuance of cheque book to the new customer or to the existing
customer is given in the following:
The issuance of cheque book to the new customer is issued after the account is
opened.
Cheque book is received from COK after 5 or 6 days of account opening.
The cheque book register is maintained where the serial number of issued
cheque-books is recorded.
The book of normally 25 leaves is issued to the profit and loss account holder
and of 100 leaves is issued to the current account holder.
The book contains the account number and the title of account.
The officer stamps the account number on each and every leaf of the book and
counts the number of leaves as well.
After that, the title of account is written in the front page of book and in the
specific leaf in the cheque-book, which is used to take another cheque-book.
That specific leave is usually in the middle of the cheque-book.
The officer takes the signature of the receiver of cheque-book on the issuance
register and also mentions whether it is issued to holder or bearer.
Acknowledgment is signed by the customer.
The existing account holder comes to the bank with that particular leaf which is
present in all the cheque-books; the existing account holder fills that leaf carefully
and gives it to the officer issuing the cheque books.
The leaf contains the following information:
• Title of Account / Name of the account holder
• Account number
• Date
• Signature of account holder
• Serial number of the cheque-book of which is a leaf of.
Then all the procedure of issuance of the cheque-book is the same as that of the
new account holder.
But only one thing will be different, that is the confirmation of the signature of the
account holder so as to confirm that the cheque-book is going to be issued to the
real account holder.
The deposit of cash to the account of the same person or to the account of
another person in the same branch of the bank is done through the deposit slip,
which is easily available at the counter of the bank.
The depositor fills the deposit slip; it contains the tile of account, account number,
amount to be deposited, amount in figures and amount in words, signature of the
depositor etc.
The depositor then takes this slip to the cash counter and the cashier receives it
and pastes the received bank stamp over the both leaves of deposit slip.
One leaf is returned back to the depositor and the other leaf with amount to be
deposited is taken over by the cashier.
The procedure of withdrawal of cash is also very simple, but the concerned
officer and the cashier must be very careful while giving cash to the person
bearing the cheque.
The cheque is used for the withdrawal of cash usually. The person must fill in the
cheque carefully. Signature and the amount of the cash to be withdrawn must be
written carefully.
The cheque also holds two options, holder or bearer. The cheque then presented
to the cashier for withdrawal.
The Cashier will send that person to the officer for the confirmation of the
signature and the verification that whether his account contains the amount he is
asking to withdraw.
After verification, the cheque is taken from the customer and amount in the form
of cash is handed over to the person bearing the cheque.
For 100% verification, (if the person bearing the cheque is suspicious) the
account holder is contacted through telephone and then confirmation is taken
prior to the withdrawal.
The account holder of Allied Bank Limited is given the facility to take the facility of
ATM free of charge. But it is always at the discretion of the account holder to avail
the ATM facility or not. If he wants to avail the ATM facility, he has to check the
option in the account opening form about the issuance of the ATM card. In other
case, the procedure is as follows;
In case, the person has unchecked the option of ATM issuance at the time of
account opening, he follows the following procedure.
An application is filled to the customer services manager for the issuance of
ATM card, there must also be mentioned the title of account and the account
number.
The person is given a prescribed format for the issuance of ATM, the person
fills it, it usually contains the name of person, mother’s name, phone numbers,
mobile numbers, CNIC number, account number, type of account and signature
of the person etc.
The application will be processed in about 15-20 days and the application is
sent to the head office.
The head office issues the ATM cards to all the persons who have applied for
it. Within 15-20 days, the ATM cards are sent to the branch offices.
The persons, whose ATM cards are received, are contacted so that they
come and receive their ATMs.
An ATM issuance register is maintained in which the name of the ATM holder,
his account number, ATM card number is written. So when the customer gets the
ATM from the branch, the signatures are taken on the ATM register for
confirmation.
This is all procedures of application, issuance and cancellation of ATM cards by the
account holders of the Allied Bank Limited. ABL is providing the facility of using ATM
free of charge.
MISCELLANEOUS
The term miscellaneous includes the issuance of deposit at call, online slips,
different type of debit credit entries(VOUCHERS) ,and intercity and Pay orders,
demand drafts (outward bills for collection) etc. I was exposed to the practical
training of that particular area but I observed it and I would like to mention a brief of
them in the following.
CLEARING
“It is a process by which the counter-claims of bankers are set off and balances are
settled or cleared through the entries in the books of bank.”
Clearing house of SBP has shifted a lot of its work to a private institution
named as “National Institutional Facilitation Technologies” (NIFT).
NIFT collects all the cheques, demand drafts, pay orders, traveler
cheques from all the branches of all the banks within a city through its
carriers and send them to the branches on which these are drawn for
clearing.
The officer at the clearing counter inspects the cheque before accepting
them for collection through clearing house.
PROBLEMS ENCOUNTERED
The major problem was the hectic routine of the bank. I realized that practical life was
far different from books. The real problem I faced in the bank was the difference
between what I had learnt from the books and what was being practiced. Practical
application of the theories learnt during academic sessions was a great challenge,
which I overcame by the cooperation of the staff.
While doing my internship I have been through many experiences which I think has
greatly improved my skills. During internship when I have to handle few annoying
customers it taught me how to deal with it. Time management was improved and how to
handle your mistakes and have learned a lot from it. These things can help me in my
career a head. My internship was my first experience to the professional world and this
was a kind of training for me that how to survive in professional world and how to tackle
everything.
Internship helps me in learning new things and taught me there is always a space for
learning and we should learn at each stage a new thing which will be helpful further.
I have been talking to new customers and this finished my hesitation to talk to some
new person so it really improved my communication and interaction skills. So this will be
very useful for me further in my professional life.
SUGGESTIONS/
RECOMMENDATIONS
SUGGESTIONS/RECOMMENDATIONS