Internship Report On Allied Bank Limited 2009

INTERNSHIP REPORT ON ALLIED BANK LIMITED 2009

INTERNSHIP REPORT ON

SUBMITTED BY: IMTIAZ LATIF ROLL NO.603 Bs.Com (Hons) 2006-GCUF-919-621 SESSION 2006-10

COLLEGE OF COMMERCE

GOVERNMENT COLLEGE UNIVERSITY FAISALABAD 5TH October 2009

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INTERNSHIP REPORT ON ALLIED BANK LIMITED 2009

In The Name of ALLAH, The Compassionate, The Merciful.

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INTERNSHIP REPORT ON ALLIED BANK LIMITED 2009

DEDICATION

“The Holly Prophet Mohammad (PBUH) from

where all systems and standards for quality can be downloaded

directly,

which

are

applicable

everywhere; from daily life to the dynamically changing business environment”. & “My Dear parents and Teachers who taught me the true meaning of life”

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INTERNSHIP REPORT ON ALLIED BANK LIMITED 2009

PREFACE We are living in a time of extraordinary change. The environmental and economic threat is frightening large on the entire sphere of Pakistan economy. Pakistani firms must design and make better products and services and should find better ways to market them. What was once regarded enough is no longer competitive. What were once limitless resources are now to be used more efficiently. Today an organization is on the leading edge.

I have tried my best to peep into the generic as well as real cumulative problems faced by the pioneer of banking industry in Pakistan. Several chapters have been included in the report but they seem to be very conventional in nature giving supplementary justification to the fact that ABL is the most conventional of the conventional bank.

Imtiaz Latif Roll # 603

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INTERNSHIP REPORT ON ALLIED BANK LIMITED 2009

ACKNOWLEGEMENT

I would like to acknowledge extremely valuable assistance provided by all the Officers and other staff members for their great cooperation. They provide the proper guidance and support time to time which helps me a lot to work in such competitive environment and the timely completion of assignments. The office working environment is very good.

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INTERNSHIP REPORT ON ALLIED BANK LIMITED 2009

TABLE OF CONTENTS SR.NO

DESCRIPTION

PAGE

1

EXECUTIVE SUMMARY

08

2

INTRODUCTION TO ORGANIZATION

09

3

Vision, Mission & Core Values

09

4

Meaning of Bank

10

5

History of Allied Bank Pakistan

11

6

Branch Network & Provincial Headquarters

14

7

Corporate Information

15

8

ORGANIZATIONAL STRUCTURE

17

9

Management System of ABL

17

10

Allied Bank Management

17

11

Management Hierarchy

19

12

Functional Hierarchy

20

13

Staff order of Ashrafabad Branch

21

14

ABL RETAIL PRODUCTS

22

15

Commercial

23

16

Consumer

31

17

Corporate

35

18

OWN PRACTICAL WORK

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INTERNSHIP REPORT ON ALLIED BANK LIMITED 2009

SR.NO 19

DESCRIPTION SWOT ANALYSIS

PAGE 40

20

Strengths

41

21

Weaknesses

43

22

Opportunities

44

23

Threats

45

24

FINANCIAL STATEMENT ANALYSIS

46

25

Financial Statements

47

26

Vertical Analysis

51

27

Horizontal Analysis

52

28

Ratio Analysis

53

29

SUGGESTIONS & RECOMMENDATION

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INTERNSHIP REPORT ON ALLIED BANK LIMITED 2009

EXECUTIVE SUMMARY

This document provided details of my achievements in term of practical implementation and understanding of working environment in banks. Allied Bank is amongst the leading commercial banks in the country and has always played a pioneering role in introducing innovative. Technologybased banking services. The role played by its human resources is highly valued, both in terms of their skills and dedication in implementing unique banking services. Allied Bank Limited was the first bank to be established in Pakistan. It started out in Lahore by the name Australasia Bank before independence in 1942; was renamed Allied Bank of Pakistan Limited in 1974 and then Allied Bank Limited in 2005. In August 2004, because of capital reconstruction, the Bank‟s ownership was transferred to a consortium comprising Ibrahim Leasing Limited and Ibrahim Group. Today, with its existence of over 60 years, the Bank has built itself a foundation with a strong equity, assets and deposit base. It offers universal banking services, while placing major emphasis on retail banking. The Bank also has the largest network of over 700 online branches in Pakistan and offers various technology-based products and services to its diverse clientele.

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INTERNSHIP REPORT ON ALLIED BANK LIMITED 2009 INTRODUCTION TO ORGANIZATION ABL is one of the largest banks in Pakistan, serving the Country for over 60 years in all spheres at banking and financial Services. Allied Bank Limited operates by the following Vision, Mission & Values:

VISION  To become a dynamic and efficient bank providing integrated solutions in order to be the first choice bank for the customers.

MISSION 

To provide value added services to our customers.



To provide high tech innovative solutions to meet customers‟ requirements.



To create sustainable value through growth, efficiency and diversity for all stakeholders.



To provide a challenging work environment and reward dedicated team members according to their abilities and performance.



To play a proactive role in contributing towards the society.

CORE VALUES 

Integrity



Excellence in Service



High Performance



Innovation and Growth

ABL has emerged as one of the foremost-privatized financial institutions in Pakistan to gear up its operations to meet the demands of the future.

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INTERNSHIP REPORT ON ALLIED BANK LIMITED 2009 MEANING OF BANK Some authors write that the word bank is derived from Italian word “bancus” OR “banque” which means a bench. Because in the old days the Jews were used to make Banking settlements by sitting on the benches & to deal the exchange of money in the Market place. When any one of them becomes insolvent means that he is unable to fulfill his requirements. Then his bench was destroyed by the customer & this practice given birth to the word “BANKRUPT”. Some other Authors are of the opinion that the word bank is derived from a German word “back”, which means “Joint Stock Fund”. & when the major part of Italy was occupied by the German then this word „back‟ was Italianized in to the word Bank. However, no confident record is available to believe upon. Therefore, we are not in a position to give any bounded meanings to bank inspire of all these we can define bank as follow: 1. The imperial dictionary defined a bank as “An establishment for deposits & issue of money & also for granting loans discounting bills & facilitating the transaction from one place to another place”. 2. It is an institution, which deals with money. 3. It buys & sells the uses of money. In other words, we can say “A bank is an institution for exchange of money, transferring funds by domestic & foreign bills of exchange.” We can also say that it is a pipeline through which money moves into & on of circulation. Shortly & conclusively we can say that the “Bank is an institution that facilitates the matters in which the money is involved”.

Meaning of Banking The Banking companies‟ Ordinance, 1962 defines Banking as “Banking means accepting for the purpose of lending or investment, of deposits of money from public, Repayable on demand or otherwise and withdrawal by checks, drafts, order, or otherwise.

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INTERNSHIP REPORT ON ALLIED BANK LIMITED 2009 HISTORY OF ALLIED BANK PAKISTAN Allied Bank was the first Muslim bank to have been established in Pakistan. Established in December 1942 as the Australasia Bank in Lahore with a paid-up share capital of Rs. 0.12 million under the Chairmanship of Khawaja Bashir Bux, the Bank attracted deposits equivalent to Rs. 0.431 million in its first eighteen months of business. At the time, the Bank‟s total assets amounted to Rs. 0.572 million. Today, Allied Bank's paid up Capital & Reserves amount to Rs. 10.5 billion, deposits exceed Rs. 143 billion and total assets equal Rs. 170 billion.

The Pre Independence History (1942 to 1947) In the early 1940s, the Muslim community was beginning to realize the need for its active participation in the fields of trade and industry. Since the late 1880s, Hindus had established a commanding presence in the areas of industry, trade and commerce and were especially dominating in the Sub-continent area. Banking, in particular, was the exclusive forte of Hindus and it was popularly and wrongly believed that Muslims were temperamentally unsuited for this profession.

Australasia Bank (1947 to 1974) Australasia Bank was the only fully operational Muslim bank in Pakistan on August 14th, 1947. However, it was severely hit by the riots in East Punjab. The Bank was identified with the Pakistan Movement. At the time of independence all the branches in India, (Amritsar, Batala, Jalandhar, Ludhiana, Delhi and Angra (Agra)) were closed down. New branches were opened in Karachi, Rawalpindi, Peshawar, Sialkot, Sargodha, Jhang, Gujranwala and Kasur. Later, the network spread to Multan and Quetta as well. The Bank financed trade in cloth and food grains thus, played an important role in maintaining consumer supplies during the early months of 1948 affected by riots. Despite the difficult conditions prevailing and the substantial set back in the Bank‟s business in India, Australasia Bank made a profit of Rs. 50,000 during 1947-48. By the end of 1970 it had 101 branches.

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INTERNSHIP REPORT ON ALLIED BANK LIMITED 2009 Unfortunately, it lost 51 branches in the separation of East Pakistan. But the Bank did well despite losing a lot of its assets and by the end of 1973 had 186 branches in West Pakistan.

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

Allied Bank (1991 to 2004) As a result of privatization in September 1991, Allied Bank entered a new phase, and became the world‟s first bank to be owned and managed by its employees. In 1993 the “First Allied Bank Modaraba” (FABM) was floated. After privatization, Allied Bank became one of the premier financial institutions of Pakistan. Allied Bank‟s capital and reserves were Rs. 1.525 billion; its assets amounted to Rs. 87.536 billion and deposits to Rs. 76.038 billion. Allied Bank enjoyed an enviable position in Pakistan‟s financial sector and was recognized as one of the best amongst the major banks of the country. In August 2004, as a result of capital reconstruction, the Bank‟s ownership was transferred to a consortium comprising Ibrahim Leasing Limited and Ibrahim Group. Today, the Bank stands on a solid foundation built over 63 years of hard work and dedication, giving it a strong equity, an asset and deposit base and the ability to offer customers universal banking services with more focus on retail banking. The Bank has the largest network of online branches in Pakistan and offers

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INTERNSHIP REPORT ON ALLIED BANK LIMITED 2009 various technology-based products and services to its diverse clientele through its network of more than 700 branches.

Allied Bank (2005 to Date) In May 2005, Ibrahim Leasing Limited dissolved and the company was vested into Allied Bank Limited. ALL the shareholders were issued ABL shares instead of the all shares held by them. An application for the listing of ABL shares in all the Stock Exchange Companies of Pakistan was made; ABL was formally listed and the Bank‟s share trading began on the following dates:  Islamabad Stock Exchange 8th August 2005  Lahore Stock Exchange 10th August 2005  Karachi Stock Exchange 17th August 2005 Today, all Allied Bank Limited shareholders can trade in the Bank‟s shares at their will.

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INTERNSHIP REPORT ON ALLIED BANK LIMITED 2009 Branch Network There are Four Provincial Headquarters of Allied Bank Limited situated at Lahore (Punjab), Karachi (Sind), Peshawar (NWFP & Azad Kashmir) and Quetta (Baluchistan). 800 domestic branches. Arrangements with large number of Correspondent Banks/Exchange Companies. Over 200 branches for Foreign Currency Accounts. Over 70 branches for trade finance. Large number of branches for Inland Remittances. Large number of branches for Rupee Travelers Cheques.

Provincial Headquarters PUNJAB: 196/Upper Mall, Lahore SINDH: Jubilee Insurance House, I.I. Chundrigar Road, Karachi NWFP: 1st floor, State Life Building, The Mall, AZAD KASHMIR: Peshawar Cantt. BALUCHISTAN: C.C. & I Building, Zarghoon Road, Quetta.

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INTERNSHIP REPORT ON ALLIED BANK LIMITED 2009

CORPORATE INFORMATION Board of Directors Mohammad Naeem Mukhtar Chairman

Sheikh Mukhtar Ahmad Mohammad Waseem Mukhtar Abdul Aziz Khan Sheikh Jalees Ahmed Farrakh Qayyum Government Nominee

Nazrat Bashir Government Nominee

Tasneem M. Noorani Mubashir A. Akhtar Pervaiz Iqbal Butt Mohammad Aftab Manzoor Chief Executive Officer

Audit Committee Sheikh Mukhtar Ahmad Chairman

Farrakh Qayyum Member

Mubashir A. Akhtar Member

Sheikh Jalees Ahmed Member

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INTERNSHIP REPORT ON ALLIED BANK LIMITED 2009 Company Secretary Waheed-Ur-Rehman, FCA Auditors M. Yousuf Adil Saleem & Co. Chartered Accountants

KPMG Taseer Hadi & Co. Chartered Accountants

Legal Adviser Haidermota and Company, Advocates and Solicitors

Shares Registrar Technology Trade (Pvt.) Ltd.

Central Office Bath Island, Khayaban-e-Iqbal, Main Clifton Road, Karachi – 75600 UAN: (92 21) 111-110-110

Head Office/Registered Office 8-Kashmir / Egerton Road, Lahore UAN: (92 42) 111-110-110

Website & Email Website: http://www.abl.com

E-mail: [email protected]

Toll Free Number 0800-22522

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INTERNSHIP REPORT ON ALLIED BANK LIMITED 2009 ORGANIZATIONAL STRUCTURE Management System of ABL Successful and profitable banking management depends on two principal factors. a. The manner in which the functions of banking, that is the acquiring of deposits, the investing or converting such deposits into earning assets, and the servicing of such deposits, are performed b. The degree to which officers and employees contribute their talents to the progress and welfare of the bank in discharging duties and responsibilities.

Allied Bank Management Banks are managed by board of director or similar group of men who are responsible to the owners, creditors and the government for the well being of their institutions. The government selects all or some of directors of ABL. Management of ABL are given as follows:  Asim Tufail (Group Chief, Consumer & Personal Banking)

 Fareed Vardag (Chief Risk Officer)

 Iqbal Zaidi (Group Chief, Compliance)

 Mohammad Abbas Sheikh (Group Chief, Special Assets Management)

 Mohammad Aftab Manzoor (Chief Executive Officer)

 Muhammad Jawaid Iqbal (Group Chief, Corporate & Investment Banking) 

Muhammad Shahzad Sadiq (Group Chief, Audit & CRR)

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INTERNSHIP REPORT ON ALLIED BANK LIMITED 2009

 Muhammad Yaseen (Group Chief, Treasury)

 Mujahid Ali (Group Chief, Information Technology)

 Shafique Ahmed Uqaili (Group Chief, Human Resources)

 Khawaja Mohammad Almas (Head, Core Banking Projects)

 Tahir Hassan Qureshi (Chief Financial Officer)

 Tariq Mehmood (Group Chief, Operations)

 Waheed ur Rehman (Company Secretary)

 Zia Ijaz (Group Chief, Commercial & Retail Banking)

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INTERNSHIP REPORT ON ALLIED BANK LIMITED 2009 MANAGEMENT HIERARCHY The management hierarchy represents the different positions and designations in the hierarchy of the ABL. However, this is not the reporting hierarchy but merely represents the positions and grades on the basis of seniority and grades.

President

Senior Vice President

Vice President

Executive Vice President

Senior Executive Vice

Regional General Manager

Branch Manager

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INTERNSHIP REPORT ON ALLIED BANK LIMITED 2009 FUNCTIONAL HIERARCHY The functional hierarchy represents the reporting order in the hierarchy of ABL. The hierarchy has president and directors at top management level and officers Grade I, II and Grade III at the lower level management of ABL. The middle level management consists of regional general Manager and Regional Controller of Operations. These positions are not fixed. Any person in the hierarchy above the branch manager can be appointed as RGM and controller operations.

President and CEO

Board of Directors

Head of Department

Regional General Manager

Controllers of Operations

Branch Manager

Office G-I, II & Other Lower Staff

Number of Employees The organization have minimum of 12000 Employees.

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INTERNSHIP REPORT ON ALLIED BANK LIMITED 2009 STAFF ORDER OF ASHRAFABAD BRANCH

The staff order of the Ashrafabd branch is as follows:

Branch Manager

Customer Service Manager

Officer

Teller

Cashier

Messenger

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INTERNSHIP REPORT ON ALLIED BANK LIMITED 2009

ABL PRODUCTS

COMMERCIAL PRODUCTS CONSUMER PRODUCTS CORPORATE PRODUCTS

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INTERNSHIP REPORT ON ALLIED BANK LIMITED 2009 COMMERCIAL The Commercial & Retail Banking Group (CRBG) offers a variety of asset and liability-based retail products to its customers. The Group‟s main focus has been on introducing various financing and investment products for its valuable clientele, and contributing to the steady growth of the financial industry.

Deposit Account Various deposit accounts are as follows:

i.

PLS Account Allied Bank offers the PLS Savings Account facility to its customers with the following attractive features.  Attractive return of up to 5.00% per annum  Free Online Transactions, DD/TT/PO for depositors maintaining an average monthly balance of Rs. 2.500 (M) & above.  Free issuance of cheque book at the time of account opening.

ii.

Current Account  Allied Bank offers the Current Account facility for individuals as well as for institutions and commercial customers.  There are free Online Transactions, DD/TT/PO for depositors maintaining an average monthly balance of Rs. 0.5 (M) & above.  Free issuance of cheque book at the time of account opening.

iii.

Allied Basic Banking Account In order to provide basic banking facilities to its lower-middle class customers, Allied Bank has introduced the “Allied Basic Banking Account” (ABBA).  Account can be opened with an initial deposit of Rs 1,000/=  It is a non-remunerative account with a no minimum balance requirement.  The Statement of Account is issued on a yearly basis.  The account will be closed automatically if the balance remains “zero” for one year.  No service charges on the account for a maximum of 2-withdrawals and 2deposits during a calendar month. Additional transactions will be subject

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INTERNSHIP REPORT ON ALLIED BANK LIMITED 2009 to a service charge as per the Bank‟s Schedule of Charges for every withdrawal/deposit.  Unlimited withdrawals from ATMs.

iv.

Allied Business Account Allied Business Account is a non-profit current account with countless benefits and services. If you are a businessman, trader or an individual, Allied Business Account is an ideal proposition for you.

If the Avg. Balance of the previous months is: Rs.100,000 & above

Rs.500,000 & above

v.

Features & Benefits

Online/Manual Remittances Issuance of DD/TT/PO/OBC & Express Collection Online/Manual Remittances Outward Cheque Return Issuance of DD/TT/PO/OBC & Express Collection

50% relaxation on charges as per Schedule Of Charges 50% relaxation on charges as per Schedule Of Charges Free Free Free

Foreign Currency Deposits Allied Bank offers the facility of opening Current, Savings and Term deposit Accounts. Foreign Currency accounts can be opened in US Dollar, Pound Sterling, Euro, and Japanese Yen at designated branches.

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INTERNSHIP REPORT ON ALLIED BANK LIMITED 2009

vi.

Monthly Profit Plus Saving has now become all the more appealing with our Monthly Profit Plus Scheme, which earns you monthly profits on investments. The scheme is designed for a period of 1 Year with the following profit rates:

vii.

Tenure

1 Year

Profit Rate

10.00% p.a.

Profit Payment

Rs.833 * per month

Rewarding Term Deposit A term deposit scheme which gives a high rate of return and the flexibility of various tenure. Investment can be made with the minimum of PKR 25,000 only. Rate Of Profit:

viii.

Deposit Amount

1 Month

3 Months

6 Months

12 Months

Rs. 25,000 & Above

7.00%

9.00%

9.50%

10.50%

Allied Advance Profit scheme In keeping with our objective to bring you new and innovative services and banking products, we now introduce Allied Advance Profit Scheme that gives the entire profit upfront. Product Specifications: Minimum Investment Required – Rs.25, 000 Investment Terms: 18 months Auto roll-over (optional) Profit Payment:  Profit of Rs.13, 500 (on an investment of Rs.100, 000) will be immediately credited in the customer‟s current account.

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INTERNSHIP REPORT ON ALLIED BANK LIMITED 2009

ix.

Behtar Munafa Account If you want a chequing account that earns you attractive returns, paid on monthly basis, then this is the account for you. Rate of Profit:

x.

Up to Rs.5,000,000

5.00%

Rs.5,000,001 to Rs.25,000,000

6.00%

Rs.25,000,001 to Rs.50,000,000

7.00%

Rs.50,000,001 to Rs.100,000,000

8.50%

Rs.100,000,001 to Rs.250,000,000

9.25%

Rs.250,000,001 to Rs.500,000,000

10.00%

Rs.500,000,001 & above

10.50%

Behtar Munafa Term Deposit If you want to fix your money now to secure your future, this is the product for you. Rate of Profit: BEHTAR MUNAFA TERM

1 Month 3 Months 6 Months

1 Year

6.00%

8.00%

8.50%

9.50%

Rs.5,000,001 to Rs.25,000,000 6.50%

8.50%

9.00%

10.00%

7.00%

9.00%

9.50%

10.50%

7.50%

9.50%

10.00%

10.75%

8.00%

10.00%

10.50%

11.00%

DEPOSITS (3739): Up to Rs. 5,000,000

Rs.25,000,001 to Rs.50,000,000 Rs. 50,000,001to Rs. 100,000,000 Rs.100,000,001& Above

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INTERNSHIP REPORT ON ALLIED BANK LIMITED 2009 xi.

Allied e-Savers Accounts Saving has never been so flexible! The Allied e-Savers Account is a unique savings plan where you can earn returns as high as 7.5% with the convenience of 4 withdrawals a month!

Slabs

Profit Rate

Rs. 400,001 up to Rs. 500,000

7.50%

Rs. 300,001 up to Rs. 400,000

6.00%

Rs. 200,001 up to Rs. 300,000

5.00%

up to Rs.200,000

5.00%

Note: All profits payable are subject to applicable Zakat and Govt. Levies and changes in the Bank‟s policy from time to time.

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INTERNSHIP REPORT ON ALLIED BANK LIMITED 2009 Agriculture Finance The Bank, under the Agricultural Financing Scheme, as decided by the State Bank Of Pakistan, extends short, medium and long term, farm and non-farm credits. The farm credits are extended for production (inputs) and development purposes. Non-farm credits are allowed for livestock (goats, sheep, and cattle), poultry and factories including social forestry and fisheries (inland and marine, excluding deep sea fishing). Details are as follows:

Farm Loans a. Production Loans 1. Inputs like seeds, fertilizers, pesticides, weedicides, herbicides, labor charges, water charges, vegetables, floriculture, etc. 2. Working capital finance to meet various farming expenses. b. Development Loans  Improvement of agricultural land, orchards, etc.  Construction of Godowns  Tractors, Machinery & other equipments  Tube wells  Farm Transportation, etc.

Non-Farm Loans  Livestock  Poultry  Fisheries  Forestry

Other Services These other services provided by ABL.  Utility bill  Lockers  Hajj Services

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INTERNSHIP REPORT ON ALLIED BANK LIMITED 2009 Internet Banking Banking is now at your fingertips! Allied Direct Internet Banking offers you the convenience to manage and control your banking and finances - when you want, where you want! It's Simple, Convenient, Secure and Faster. So, just get clicking! Some of the advantages of Allied Direct Internet Banking are:

i.

Simple and Convenient Easier navigation and help provided at every step so you can make

full use of this service. With Allied Direct convenience is just a click away.

ii.

Secure and Faster Encrypted with latest tools and technologies, Allied Direct is the

choice for secure and fast Internet Banking.

iii.

24x7 Access You now have access to your account 24 hours a day, 7 days a

week. You can transfer funds or pay bills, even when it's a holiday.

Online Banking Allied Online Banking is a unique service being offering from Allied Bank. Through this service, your account in Allied Bank is available to you from any of our branches countrywide.

Corporate Leasing Allied Bank started lease operations when it integrated with Ibrahim Leasing Limited. Facilities include leases for machinery, commercial vehicles and equipments. The Bank provides lease facilities to corporate and commercial clients in all industrial enterprises for balancing, modernization, replacement and expansion schemes.

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INTERNSHIP REPORT ON ALLIED BANK LIMITED 2009 Allied ATM Network Allied Bank has a vast network of over 460 ATMs installed in over 130 cities, which continues to grow at a rapid pace.

1-LINK ATM Additionally, Allied Bank is a member of the „1-LINK ATM sharing switch‟ comprising of over 2,000 ATMs nationwide, therefore, giving its Allied Visa Debit Card holders access to even more ATMs across the country.

M-Net Network The Allied Visa Debit Card can also be used at M Net ATMs, for cash withdrawal.

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INTERNSHIP REPORT ON ALLIED BANK LIMITED 2009 CONSUMER In line with the Bank‟s aim to provide a host of products and services to its customers, substantial ground work has been done to establish a strong consumer

banking

business.

Furthermore,

to

achieve

this

objective,

professionals from across the industry have been recruited into areas of product development, sales, credit policy, research, consumer analytics, call centers and service quality departments. The consumer portfolio, comprising the debit card, credit cards, auto loans, personal loans and mortgages will be established phase by phase. However, we are confident that our strengths, together with our largest network of online branches, a superior technology platform, a big customer base and the Consumer Personal Banking Group (CPBG), will take the Bank‟s profitability to new heights.  Visa Debit Card  Allied Visa Credit Card

Visa Debit Card Some features of Allied Visa Debit Card are as under:

Get Cash You are always on the move, now your bank account is too. You can use your Allied Visa Debit Card to withdraw cash directly from your bank account from over 3,500 ATMs in Pakistan.

Shop Anywhere Use the Visa power of your Allied Visa Debit Card to shop at over 49,000 retailers in Pakistan and over 27 million retailers internationally.

Dine Out Go to all your favorite restaurants and order whatever you want without having to worry about how much cash you have in your pocket.

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INTERNSHIP REPORT ON ALLIED BANK LIMITED 2009 Enjoy Traveling Imagine traveling without carrying cash. With your Allied Visa Debit Card, you can buy your plane tickets and do all your shopping abroad without worrying about spending too much or running out of cash.

Fuel Up Now you can fuel up your car without emptying your wallet. Pay for all your fuel purchases with your Allied Visa Debit Card.

Have Fun Whether you feel like taking the family to see a movie at the cinema or treating some friends to a night of bowling, you can do it all and more with your Allied Visa Debit Card.

Stay Alert Now, be more secure and keep better track of your spending. With your Allied Visa Debit Card, you can get SMS alerts when you make transactions on your Card. You can also access the details of your transactions via internet banking at http://www.abl.com.pk so you are always updated and alert.

Activation Instructions Please follow the instructions stated below so that you are able to use your Card at any merchant outlet or Visa ATMs. 1. Kindly sign the signature panel on the back of your Card in permanent ink as soon as you receive it. 2. To activate your Card, please call Allied Phone Banking. 3. Enter the PIN provided to you in order to use the Card at ATMs.

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INTERNSHIP REPORT ON ALLIED BANK LIMITED 2009 Allied Visa Credit Card Welcome to the world of privileges, benefits and savings with your Allied Visa Credit Card. In order to cater to your growing financial needs we are proud to introduce Allied Visa Credit Card with The Lowest Service Charge ever! So now you can save money where it counts and spend lavishly at your favorite places with greater flexibility, convenience and most important-Affordability! With your Allied Visa Credit Card you can enjoy a variety of state-of-the-art features and unmatched value by spending at over 49,000 merchants across Pakistan and 27 million merchant outlets worldwide! And what more, you can also use your credit card at over 1 million ATMs internationally. There are two types of Allied Visa Credit Card: a. Allied Visa Gold Credit Card

b. Allied Visa Platinum Credit Card a. Allied Visa Gold Credit Card With your Allied Visa Gold Credit Card every Pakistani can now enjoy the benefits of a Gold Card internationally with unmatched savings greater flexibility, convenience and security.

Features Buy Now, Pay Later With your Allied Visa Gold Credit Card, your free credit period allows you to pay for your purchases up to 50 days after the date of purchase. So now you can buy all the things you want - whenever you want - at your own convenience. Flexible Repayment When paying your credit card bill, your Allied Visa Gold Credit Card gives you the option to either pay the entire amount according to your statement or a minimum of 5% of your total outstanding balance. Cash Advance Facility As an Allied Visa Gold Credit Card member, you are entitled up to 75% of your available credit limit in cash. Just go to your nearest ATM with the VISA or PLUS sign and avail the facility of withdrawing cash 24 hours a day.

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INTERNSHIP REPORT ON ALLIED BANK LIMITED 2009 Allied Easy Installments (AEI) The Allied Easy Installments (AEI) plan provides you with the facility to pay your outstanding card balance in equal and affordable monthly installments spread over 3, 6, 12, 18, 24, 30 or 36 months. So now you can easily afford anything from everyday household appliances to exotic vacations abroad. Balance Transfer Facility In case you have outstanding balances on other cards, consolidate these onto your Allied Visa Gold Credit Card with the lowest BTF rate and save more on your outstanding payments than ever before.

b. Allied Visa Platinum Credit Card With your Allied Visa Platinum Credit Card you can enjoy exceptional benefits and a host of local and international benefits like never before!

Features Visa Platinum Golf Fancy a game of golf? With your Allied Visa Platinum Credit Card, you can enjoy golf at its best with complimentary tee-offs, discounted green fees and access to some of the world‟s most celebrated golf clubs. Platinum Life Life is a unique platform that showcases exclusive programs and events specially designed for Visa Platinum Credit Cardholders. With your Allied Visa Platinum Credit Card, you are eligible to join this exclusive platform and avail many exciting services like Platinum Club, Platinum Dining, Platinum Golf, Experiential Travel and much more. Visa Platinum Club As a member of the Visa Platinum Club, you are part of an internationally reputed rewards program that provides an unmatched quality of services and customized luxuries to all Allied Visa Platinum Credit Cardholders. Visa Experiential Travel Your Allied Visa Platinum Credit Card now takes you further than ever before. With the Visa Experiential Travel Program, choose the package of your choice as you travel the world and enjoy exotic travel adventures catered especially to your taste. And also enjoy Allied Visa Gold Credit Card holder facilities.

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INTERNSHIP REPORT ON ALLIED BANK LIMITED 2009 CORPORATE The Corporate Investment Banking Group (CIBG) holds the Bank‟s loan portfolio and enjoys a leading position in corporate lending in the country. It offers a wide range of financial services to medium and large sized public and private sector entities. These services include, providing and arranging tenured financing, corporate advisory, underwriting, cash management, trade products, corporate finance products and customer services on all bank related matters. Vast amount of funds to large industrial and corporate sectors of the economy and because it has played a big part in major investment and corporate banking transactions Allied Bank is considered one of the top investment banks in the country today.

Corporate Banking CBG offers a wide range of financial services to medium and large sized public and private sector entities. CBG has expertise in providing exemplary customized and personalized service to its Corporate Customers under the Relationship Management concept, which is basically catering to all the customer needs through „One Window‟ operations. CBG has strategically placed its presence in all major corporate hubs of the country namely Karachi, Lahore, Islamabad, Multan and Faisalabad. It presently enjoys a leading position in corporate lending in the country and has played a key role in economic development of the country by providing large facilities, long term, short term, working capital etc in all the key sectors of the economy. Despite being a late entrant in Corporate Banking, CBG has not only able to position itself as one of the prime banks for the existing clientele but also created and cemented new relationships with several top tier names in the market.

Investment Banking ABL – IBG was established in 2005 and focuses on the Investment Banking market. It has the highest number of Successful Arrangement and Participation in Key Privatization & Acquisition Financing Transactions achieved

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INTERNSHIP REPORT ON ALLIED BANK LIMITED 2009 by any Investment Banking Group in Pakistan. It has already penetrated the investment banking market by taking the lead in a number of major transactions and arranging funding of more than US$ 6 billion to date. ABL – IBG is reputable for building business on the basis of strong corporate relationships and showing a clear understanding of Structured Finance. The team consists of dedicated and young professionals with extensive experience, who provide various Advisory & Arrangement Services to Corporate Clients. ABL-IBG has played an active role in Debt Origination and Distribution through innovative and tailor made solutions for its target customer base. It is also well known for having successfully completed mandates in a timely manner, and is regarded as one of the most active Investment Banking entities in the country today.

Financial Institutions ABL‟s Financial Institutions team shows a strong commitment to product and business development. Our client portfolio includes top domestic names, important regional players, top global financial institutions, leasing companies, modarabas, microfinance, the insurance sector and specialist money transfer companies. ABL's dedicated team of Financial Institution professionals brings a wealth of local and international expertise to all facets of this complex industry, and can serve as your single point of contact for a comprehensive set of products and services. As our institutional customers face continuing challenges, they look to ABL for comprehensive transactional banking solutions, greater operational efficiency and broad geographic coverage.

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INTERNSHIP REPORT ON ALLIED BANK LIMITED 2009 OWN PRACTICAL WORK During the course of my internship at Allies Bank of Pakistan Ashrafabad Branch Faisalabad (0494), I assisted the manager operations. Moreover I worked in the remittance department clearing Department and I learned:  Account Opening and Closing  Filling of deposit slips of various types of deposit, cheque, online transaction etc.  Preparation of Weekly and Monthly Position  Allied Express cash payment (Remittance paid on cash counter)  Arrangement of vouchers by segment of deposit types.  Calling and Checking of Cash, transfer, clearing, online Transactions from day end report.  Issuance of Pay Order, Demand Draft  Making of Pak A/C The purpose of the bank is to provide financial services to general public. And for this purpose different banks provide different services to the people in different forms. The main functions and services which ABL provides to different Peoples are as follows: Open different accounts for different peoples Accepting various types of deposits Granting loans and advances For proper functioning of branches and the overall bank has been divided in different departments. These departments handle different jobs so that division of work is there for improvement of functions and also it is easy to control the situation. The general division is as follows: Cash Department Deposit Department Clearing department

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INTERNSHIP REPORT ON ALLIED BANK LIMITED 2009 Advances Department Remittance Department Human Resource Department Technology Department Account Opening and Closing Department

DEMAND DRAFT: Demand draft is a written order drawn by a branch of a bank upon the branch of same bank to pay certain sum of money to or to the order of specified person. A demand draft may be issued against the written request of customer before issuing it must be seen that demand draft is in order.

PAY ORDER: A Pay order is written authorization for payment made in a receipt from issued and payable by the bank. To the person named and address. A record of all issued and paid should be maintained.

ACCOUNTS OPENING When a customer wants to open an account, the bank officer gives application form to him. All information, which is necessary to be known by the bank, is requirements of the application form. Some essential documents also require to be attached by the customer basically following information is required: Applicant‟s Name Date of Birth Nationality Identification No. Mother‟s name Residential Address Telephone Number Currency of Account Nature of Business Residential Status Special instructions regarding the account

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INTERNSHIP REPORT ON ALLIED BANK LIMITED 2009 Signature of the applicant

ISSUANCE OF CHEQUE BOOK When a customer opens an account with the bank he is provided with chequebook for withdrawals of account. A chequebook contains twenty five and fifty leaves. The chequebook also carries a requisition slip for issuance of new chequebook. The slip is duly filled and signed by the customer.

HOW TO CLOSE AN ACCOUNT: The account can be closed by the customer. The customer is required to submit an application for closing the account. Then the account is closed out and his balance is paid to him. The chequebook is returned to bank and the officer cancels the remaining cheques in chequebook.

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INTERNSHIP REPORT ON ALLIED BANK LIMITED 2009

SWOT ANALYSIS STRENGTHS WEAKNESSES OPPORTTUNITIES THREATS

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INTERNSHIP REPORT ON ALLIED BANK LIMITED 2009 SWOT ANALYSIS The SWOT analysis is a comprehensive and critical overview of the operations, procedures, rules and regulations, services and other related activities, the analysis include the analysis of ABL Bank Branches in the light of the entire branch and Bank specific variables which directly or indirectly affect the operations of the branch. The tool selected for the analysis of organization is SWOT analysis. SWOT analysis is an acronym that stands for Strengths, Weaknesses, Opportunity and Threats. This is a careful evaluation of an organization‟s strengths to avail an opportunity by overcoming its weaknesses and phasing out all the threats to its survival in order to grow and survive.

STRENGTHS Allied Bank Limited has certain strengths which are different from the other Banks. ABL is the first Muslim Bank of the world, which is owned and managed by its own employs. This is the biggest strength of the Bank. A feeling of ownership is present in every employ, which not only helps in increasing the productivity of employs but also creates sincerity with the Bank in them. Strength is the high motivation of employees to their work because they know that what so ever they do. It will be in their own benefit.

They

know that the profit, which they will earn, will be distributed among the employees. So they work with high motivation and concentration. Salaries are very reasonable, so the employees are not financially disturbed and they devote their selves fully to their work. They have wide area network in all over the Pakistan, so that they cover a lot of portion of cash transactions and make customer satisfied. The Bank has very strict rules and regulations about the customer's complaints. The customers are treated as very special persons in the

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INTERNSHIP REPORT ON ALLIED BANK LIMITED 2009 Bank. The branch is linked through an online network of BRANCHES, thus enabling them to serve customer in better way. This branch is provided with latest computer which increases the speed of computer work. The branch is situated in commercial area were business activities perform greater as compare to residential area. Thus it increases the number of customers. The Branch has the most experienced and the least experienced staff, which is a good combination of experienced heads and exuberance of youth. All Pakistan branch network in remote areas.

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INTERNSHIP REPORT ON ALLIED BANK LIMITED 2009 WEAKNESSES No entertainment facilities are available in the Bank when customer goes to the Bank

and

wait

for a

longer time. These

facilities can be the newspaper. Magazines, etc. The Branch has a good staff combination on the basis of experience, but their training capabilities are not up to the requirements of the fast changing banking environment. The technical training of the staff is negligible e.g. in case of the absence of computer there is no alternate trained personal who can record the daily transactions. The organization is very much mechanistic and provides no flexibility to encourage creativity. The organizational environment is not cooperative. In spite of the presence of technology many jobs are done manually such as the letters, drafts for fax messages and other calculations, which could be easily, done in MS Word and Ms Excel.

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INTERNSHIP REPORT ON ALLIED BANK LIMITED 2009 OPPORTUNITIS The policies of the new government to uplift the economy and pursue financial sector reforms are expected to yield positive results in the banking industry of the country.

The ABL is very well praised to avail

promising opportunities. As a result of the different steps taken by the Government regarding the betterment of the economy. Small borrowers are attracted to get the financing and start small businesses. So, The ABL has an opportunity to attract the customers by giving them attractive schemes. They have wide area network in all over the Pakistan, if ABL can make it possible the fast delivery of fund from abroad through online banking, it can cover the major market of Pakistan which still is capturing by 'Hundi'. A considerable portion of the labor force of the area is serving overseas. Their families can be encouraged to use ABL as channel for remittances. The Internet facility in the area provides an opportunity to ABL to get Online. The Bank has the basic infrastructure, which can facilitate the online process. The location of the ABL, Ashrafabad branch itself provides an opportunity to ABL to get more and less cost deposits.

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INTERNSHIP REPORT ON ALLIED BANK LIMITED 2009 THREATS First threat is that of political influence The biggest threat in the banking sector is the continuous downfall of the country economy since the last few years.

If this downfall remains for

more few sears then it may be the great barrier in achieving the Bank's objectives. High-pressure interest groups are developing which poses a constant threat to Allied Bank. The biggest threat to the operational success of the branch is the better competitor‟s services. Many private sector banks are offering higher rates of return to customers than Allied Bank of Pakistan. One of the biggest to the ABL, Ashrafabad branch is the increasing rate of dissatisfies customers. Most of these customers were observed to be dissatisfied with the delays in their servicing. New Privates Bank coped with emerging new Technology of IT.

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INTERNSHIP REPORT ON ALLIED BANK LIMITED 2009

FINANCIAL STATEMENTS

BALANCE SHEET PROFIT& LOSS A/C CASH FLOW STATEMENT

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INTERNSHIP REPORT ON ALLIED BANK LIMITED 2009

Balance Sheet As at December 31, 2008 Rupees in ‘000’

ASSETS Cash and 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 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

2008

2007

2006

23,653,754 2,096,779 15,793,183 82,631,118 212,972,008 11,134,436 1,029,223 17,369,691 366,680,192

29,739,857 668,449 18,419,241 83,958,463 168,407,280 7,548,628 662,431 10,705,374 320,109,723

23,042,011 1,703,011 19,050,239 46,953,241 144,033,634 6,445,111 638,168 10,161,361 252,026,776

2,952,490 27,778,151 297,475,321 2,498,000

3,494,384 22,933,656 263,972,382 2,499,000

2,278,007 18,410,425 206,031,324 2,500,000

13,620,616 344,324,578 22,355,614

7,332,059 300,231,481 19,878,242

5,119,267 234,339,023 17,687,753

6,463,644 5,804,776 8,536,697 20,805,117 1,550,497 22,355,614

5,386,370 6,050,713 6,971,308 18,408,391 1,469,851 19,878,242

4,488,642 6,133,209 5,607,796 16,229,647 1,458,106 17,687,753

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INTERNSHIP REPORT ON ALLIED BANK LIMITED 2009 PROFIT & LOSS A/C For The Year Ended December 31, 2008

Rupees in ‘000’ 2008 30,570,540 16,559,806 14,010,734

2007 21,201,422 10,093,010 11,108,412

2006 17,215,507 6,793,101 10,422,406

1,372,155

2,712,936

583,305

1,781,110 2,736 3,156,001 10,854,733

719 1,187 2,714,842 8,393,570

(14,623) 136,189 704,871 9,717,535

2,291,459 1,420,364 230,060 151,068

2,062,677 147,184 194,879 1,439,387

1,353,888 193,255 282,285 376,792

59,154 4,152,105 15,006,838

(1,463) 77,435 3,920,099 12,313,669

(30,180) 273,028 2,449,068 12,166,603

8,089,913 214,284 190,824 390,877 8,885,898 6,120,940 1,829,425 134,829 1,964,254 4,156,686 6,971,308

5,944,340 119,579 39,805 256,869 6,360,593 5,953,076 1,887,299 (10,381) 1,876,918 4,076,158 5,607,796

5,290,578 205,307 2,546 7,078 5,505,509 6,661,094 2,215,092 48,752 2,263,844 4,397,250 2,731,979

17,541 6,988,849 11,145,535

32,701 5,640,497 9,716,655

19,452 2,751,431 7,148,681

Basic earnings per share (in Rupees)

6.43

6.31

8.16

Diluted earnings per share (in Rupees)

6.43

6.31

8.16

Mark-up/Return/Interest earned Mark-up/Return/Interest expensed Net Mark-up/Interest income Provision against non-performing loans and advances net Provision for diminution in the value of investments net 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 securities Unrealized loss on revaluation of investments classified as held for trading - net Other income Total Non-markup/Interest income NON MARK-UP/INTEREST EXPENSES Administrative expenses Provision against other assets - net Provision against off-balance sheet obligations - net 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 Transfer from surplus on revaluation of fixed assets net of tax PROFIT AVAILABLE FOR APPROPRIATION

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INTERNSHIP REPORT ON ALLIED BANK LIMITED 2009

Cash Flow Statement For the year ended December 31, 2008 CASH FLOWS FROM OPERATING ACTIVITIES

Profit before taxation Less: Dividend income

2008

2007

2006

6,120,940 (1,420,364) 4,700,576

5,953,076 (147,184) 5,805,892

6,661,094 (193,255) 6,467,839

420,242

341,656

238,881

1,372,155

2,712,936

583,305

1,781,110 --190,824 20,711 214,284 (9,889) 2,736

719 1,463 39,805 --119,579 (14,297) 1,187

(14,623) 30,180 2,546 --205,307 (68,397) 136,189

Adjustments for non-cash charges Depreciation/amortization Provision against non-performing loans and advances (including general provision) – net Provision/(reversal of provision) for diminution in the value of investments – net Unrealized loss on revaluation of held for trading securities Provision against off balance sheet obligations – net Operating fixed assets written off Provision against other assets – net Gain on sale of operating fixed assets Bad debts written off directly

3,992,173

3,203,048

1,113,388

8,692,749

9,008,940

7,581,227

2,626,058 32,397 (45,939,619) (5,114,895)

630,998 203,250 (27,087,769) (292,887)

(13,272,857) 327,421 (33,546,354) (2,961,688)

(48,396,059)

(26,546,408)

(49,453,478)

(541,894) 4,767,184 33,502,939 6,074,203

1,216,377 4,845,011 57,941,058 2,145,627

(170,613) 8,496,595 44,621,056 640,267

43,802,432

66,148,073

53,587,305

4,099,122 3,535,489

48,610,605 (2,260,777)

11,715,054 (2,386,844)

563,633

46,349,828

9,328,210

1,347,298 (3,749,608) --1,362,722 (2,659,638) 155,480

(39,525,522) 2,782,945 (437,512) 149,956 (1,493,897) 63,021

(19,493,339) 16,953,404 --193,537 (1,997,685) 102,752

Net cash flows used in investing activities

(3,543,746)

(38,461,009)

(4,241,331)

CASH FLOWS FROM FINANCING ACTIVITIES Proceeds from issuance of sub-ordinated loan Repayment of sub-ordinated loan Dividends paid

--(1000) (1,753,971)

--(1000) (1,902,755)

2,500,000 --(1,096,654)

Net cash flows (used in) / from financing activities

(1,754,971)

(1,903,755)

1,403,346

Increase in cash and cash equivalents

(4,735,084)

5,985,064

6,490,225

CASH AND CASH EQUIVALENTS AT BEGINNING OF THE YEAR

29,842,093

24,302,648

17,753,472

510,618

64,999

123,950

(Increase)/decrease in operating assets Landings to financial institutions Held for trading securities Advances – net Other assets (excluding advance taxation) Increase/(decrease) in operating liabilities Bills payable Borrowings from financial institutions Deposits Other liabilities

Income tax paid Net cash flows from operating activities CASH FLOWS FROM INVESTING ACTIVITIES Net investments in available-for-sale securities Net investments in held-to-maturity securities Net investments in subsidiaries Dividend income Investments in operating fixed assets Proceeds from sale of fixed assets

EFFECT OF EXCHANGE RATE CHANGES ON CASH AND CASH EQUIVALENTS CASH AND CASH EQUIVALENTS AT END OF THE YEAR

25,617,627

30,352,711

College of Commerce G.C University Faisalabad

24,367,647

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INTERNSHIP REPORT ON ALLIED BANK LIMITED 2009

VERTICAL AND HORIZONTAL ANALYSIS

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INTERNSHIP REPORT ON ALLIED BANK LIMITED 2009 VERTICAL ANALYSIS of BALANCE SHEET Amount in “000”

ASSETS

Cash and balances with treasury and other banks Lending to financial institutions Investments Advances - net Operating Fixed assets Deferred tax assets Other assets Total assets

2006 Rs. %age 24,745,023 9.82%

2007 Rs. %age 30,408,306 9.50%

2008 Rs. %age 25,750,533 7.02%

19,050,239

18,419,241

15,793,183

7.56%

5.75%

4.31%

46,953,241 18.63% 83,958,463 26.23% 82,631,118 22.53% 144,033,634 57.15% 168,407,280 52.61% 212,972,008 58.08% 6,445,111 2.56% 7,548,628 2.36% 11,134,436 3.04% 638,168 10,161,361 252,026,776

0.25%

662,431

4.03% 10,705,374 100% 320,109,723

0.21%

1,029,223

0.28%

3.34% 17,369,691 100% 366,680,192

4.74% 100%

LIABILITIES Customer deposits Inter bank borrowings Bills payable Other liabilities Sub-ordinated loans Total Liabilities NET ASSETS

206,031,324 87.92% 263,972,382 87.90% 297,475,321 86.39% 18,410,425

7.86%

22,933,656

7.64%

27,778,151

8.07%

2,278,007 5,119,267 2,500,000

0.97% 2.18% 1.07%

3,494,384 7,332,059 2,499,000

1.17% 2.4% 0.84%

2,952,490 13,620,616 2,498,000

0.86% 3.96% 0.72%

100% 300,231,481

100% 344,324,578

100%

7.55%

19,878,242

6.62%

22,355,614

6.49%

4,488,642 6,133,209 5,607,796

1.92% 2.62% 2.39%

5,386,370 6,050,713 6,971,308

1.79% 2.02% 2.32%

6,463,644 5,804,776 8,536,697

1.88% 1.68% 2.48%

1,458,106

0.62%

1,469,851

0.49%

1,550,497

0.45%

234,339,023 17,687,753

REPRESENTED BY: Share capital Reserves Unappropriated profit Surplus on revaluation of assets

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INTERNSHIP REPORT ON ALLIED BANK LIMITED 2009 HORIZANTAL ANALYSIS of BALANCE SHEET Amount in “000”

ASSETS

Cash and balances with treasury and other banks Lending to financial institutions Investments Advances Operating Fixed assets Deferred tax assets Other assets Total assets

2006

2007

2008

Rs. %age 24,745,023 100%

Rs. %age 30,408,306 122.88%

Rs. %age 25,750,533 104.06%

19,050,239 100%

18,419,241

15,793,183

96.68%

82.90%

46,953,241 100% 83,958,463 178.81% 82,631,118 175.98% 144,033,634 100% 168,407,280 116.92% 212,972,008 147.86% 6,445,111 100% 7,548,628 117.12% 11,134,436 172.75% 638,168 100%

662,431 104.95%

1,029,223 161.27%

10,161,361 100% 10,705,374 105.35% 17,369,691 170.93% 252,026,776 100% 320,109,723 127.01% 366,680,192 145.49%

LIABILITIES Customer 206,031,324 100% 263,972,382 128.12% 297,475,321 144.38% deposits Inter bank 18,410,425 100% 22,933,656 124.56% 27,778,151 150.88% borrowings Bills payable 2,278,007 100% 3,494,384 153.39% 2,952,490 129.60% Other liabilities 5,119,267 100% 7,332,059 143.22% 13,620,616 266.06% Sub-ordinated 2,500,000 100% 2,499,000 99.96% 2,498,000 99.92% loans Total Liabilities 234,339,023 100% 300,231,481 128.11% 344,324,578 146.93% Net Assets 17,687,753 100% 19,878,242 112.38% 22,355,614 126.39%

REPRESENTED BY: Share capital Reserves Unappropriated profit Surplus on revaluation of assets

4,488,642 6,133,209 5,607,796

100% 100% 100%

5,386,370 6,050,713 6,971,308

120% 98.65% 124.31%

6,463,644 5,804,776 8,536,697

144% 94.64% 152.22%

1,458,106

100%

1,469,851

100.80%

1,550,497

106.33%

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INTERNSHIP REPORT ON ALLIED BANK LIMITED 2009

RATIO ANALYSIS LOAN TO DEPOSIT RATIO LOAN TO ASSET RATIO NET PROFIT RATIO RATE OF RETURN AT LOANS RETURN ON ASSETS RETURN ON EQUITY CAPITAL RETURN ON EQUITY

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INTERNSHIP REPORT ON ALLIED BANK LIMITED 2009

LOAN TO DEPOSITS RATIO FORMULA [Total Loans/Total Deposits]×100 (Rs. In Millions) 2006 2007 2008 Total Loans/Advances 144,033 168,407 212,972 Total Deposits 206,031 263,972 297,475 69.90% 63.79% 71.59% GRAPHICAL REPRESENTATION 71.59%

72

69.9%

70

Percentage

68 66

63.79%

64 62 60 58 2006

2007

2008

Years

ANALYSIS This ratio shows a relationship between loans and advances and reveals how much productively the deposits are used. Analysis shows an increase in loan to deposit ratio, because advances are also increasing sharply with the increase of deposits. This condition is favorable or the bank. If deposits increase by higher rate than an increase in loan then bank has to face difficulty.

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INTERNSHIP REPORT ON ALLIED BANK LIMITED 2009 LOAN TO ASSET RATIO FORMULA [Total Loans / Total Assets]×100 (Rs. In Millions) 2006 2007 2008 Total Loans/ Advances 144,033 168,407 212,972 Total Assets 252,026 320,109 366,680 57% 52.60% 58.08% GRAPHICAL REPRESENTATION

Percentage

58.08% 59 58 57 56 55 54 53 52 51 50 49

57%

52.6%

2006

2007

2008

Years

ANALYSIS Total advances of the bank increased from 2006 to 2008 and total assets also increased from in 2006 to in 2008. This parallel increase in advances provide us gradually increasing ratio.

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INTERNSHIP REPORT ON ALLIED BANK LIMITED 2009 NET PROFIT RATIO FORMULA [Net Profit / Return on Financing]×100 (Rs. In Millions) 2006 2007 2008 Net Profit 4156 4076 4397 Return on Financing 15006 12387 12166 27.69% 32.90% 36.14% GRAPHICAL REPRESENTATION

36.14%

40 35

32.90% 29.69%

Percentage

30 25 20 15 10 5 0

2006

2007

2008

Years

ANALYSIS The net profitability of the company is increasing from 2006 to 2008 as shown above. The increasing net profit trend shows the management‟s efficiency to control the operating cost and to maximize the net profit.

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INTERNSHIP REPORT ON ALLIED BANK LIMITED 2009 RATE OF RETURN AT LOANS FORMULA [Interest Income / Total Loans]×100 (Rs. In Millions) 2006 9,717 144,033 6.74%

Interest Income Total Loans

2007 8,467 168,407 5.02%

2008 10,854 212,972 5.09%

GRAPHICAL REPRESENTATION 6.74% 7 5.02%

6

5.09%

Percentage

5 4 3 2 1 0

2006

2007

2008

Years

ANALYSIS The rate of return at loans of the company is increasing. This shows that the bank is in good position when we compare the interest income of the company with its loan. The rate of return is increasing with the amount of total loans. This shows that the bank is earning favorable interest income on its loans.

College of Commerce G.C University Faisalabad

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INTERNSHIP REPORT ON ALLIED BANK LIMITED 2009 RETURN ON ASSETS FORMULA [Net Income / Total Assets]×100 (Rs. In Millions) 2006 4397 252,026 1.74%

Net Income after tax Total Assets

2007 4076 320,109 1.27%

2008 4156 366,680 1.13%

GRAPHICAL REPRESENTATION 1.74% 1.8 1.6

1.27%

1.4

1.13%

Percentage

1.2 1 0.8 0.6 0.4 0.2 0

2006

2007

2008

Years

ANALYSIS In return on assets ratio we evaluated whether the bank‟s management has earned a reasonable return with the assets under its control. The bank is required to increase its performance as the standard rate of return is 3% or more.

College of Commerce G.C University Faisalabad

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INTERNSHIP REPORT ON ALLIED BANK LIMITED 2009 RETURN ON EQUITY CAPITAL FORMULA: [Net Income / Equity Capital]×100 (Rs. In Millions) Net Income Equity Capital

2006 4,397 4,488 97.97%

2007 4,076 5,386 75.67%

2008 4,156 6,463 64.30%

GRAPHICAL REPRESENTATION

Percentage

97.97% 100 90 80 70 60 50 40 30 20 10 0

75.67% 64.3%

2006

2007

2008

Years

ANALYSIS The equity capital of the bank is increased every year while in 2007 the net income decrease and in 2008 the net income is also increased. Due to this the equity capital ratio has decreasing trend from 2006 to 2008. We cannot set any standard for the bank‟s return on capital because different capitals have different capacities.

College of Commerce G.C University Faisalabad

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INTERNSHIP REPORT ON ALLIED BANK LIMITED 2009 RETURN ON EQUITY FORMULA [Net Income/ Shareholder‟s Equity]×100 (Rs. In Millions) 2006 2007 2008 Net Income 4,397 4,076 4,156 Share Holders Equity 16,229 18,408 20,805 27.09% 22.14% 19.97% GRAPHICAL REPRESENTATION

30

27.09% 22.14%

25

19.97%

Percentage

20 15 10 5 0

2006

2007

2008

Years

ANALYSIS It is a tradition that stockholders have expected to earn an average annual return of 12% or more from equity investment in large companies. In this case we can see that the banks return on equity is up to the standard of the return on equity and the stockholders received favorable return from 2006 to 2008.

College of Commerce G.C University Faisalabad

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INTERNSHIP REPORT ON ALLIED BANK LIMITED 2009

SUGGESTIONS & RECOMMENDATIONS

ABL should provide technical training of the staff The circle of ATM machines should extend in all major cities of the Pakistan. ABL should encourage creativity. The book should have the moving cameras in their branches for securities purpose.

CONCLUSION This organization is well managed with organized structure and efficient employees. Due to its growth in online branch system, it has bright future in Financial Organizations.

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