INTERNSHIP REPORT ON

ALLIED BANK LIMITED

BRANCH MANSEHRA (0257)

FAIZAN KHAN

ROLL NO: 32220

BBA (HONS) MARKETING

DEPARTMENT OF MANAGEMENT SCIENCES

HAZARA UNIVERSITY MANSEHRA

SESSION: 2013-2018
 INTERNSHIP REPORT ON
ALLIED BANK LIMITED
BRANCH MANSEHRA (0257)

This internship report is submitted in partial fulfilment of the requirements

for the degree of bachelor of business administration awarded by
Hazara University Mansehra.

DEPARTMENT OF MANAGEMENT SCIENCES

HAZARA UNIVERSITY MANSEHRA
Session: 2013-2018

2
 INTERNSHIP REPORT ON
ALLIED BANK LIMITED
BRANCH MANSEHRA (0257)

APPROVAL SHEET

Supervised by:

Signature: ___________________________________

Name: MR. ATTAULLAH

Designation: LECTURER

Organization: ___________________________________

External examiner: ___________________________________

Name: ___________________________________

Signature: ___________________________________

DEPARTMENT OF MANAGEMENT SCIENCES

HAZARA UNIVERSITY MANSEHRA

SESSION: 2013-2018
i
DEDICATION

ii
 ACKNOWLEDGEMENT
First of all, I want to express all my humble thanks to ALLAH who is very sensitive about each
and every activity of all his men and without whose help, I am unable to accomplish any
objective in my life. All respect to his Holy Prophet HAZART MUHAMMAD (Peace Be
Upon Him) who brought the light of knowledge when the humanity was wandering in the
desert of ignorance.

Secondly, I am grateful to my prestigious institute that made his learning opportunity a part of
our education, especially. Internship coordinator MR. Imran who not only guided me well but
also helped me in finding such an excellent place for internship. I am also thankful to all other
teachers as the knowledge imparted by them enables me to gain knowledge of the organization
in best way.

I would also thank to all the staff of Allied Bank, particularly Mr. Rana Riaz Ahmad who gives
me an opportunity to work in the bank and gave me a chance to explore my knowledge.

I submit my earnest thanks to my affectionate parents, who always remains at my back to

support me, I can never give the return of their un tired struggle for me, but I can only prove
myself as they expect from me. And I am also grateful to all other family members and all my
friends for their moral boosting and spiritual support during my study and especially in this
internship program. I went to pay gratitude to all persons, who had helped me in completing
this support.

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 EXECUTIVE SUMMARY

This report is about my internship program with Allied Bank Limited. In this comprehensive
report, I have discussed about every major aspect of the bank, which I observed and perceived
during my internship program. In this report you will find the detail about the bank right from
its incorporation to the current position. Along with it, the processes, policies and procedures
of the bank are also discussed in detail.
During my internship program, I mainly worked in General Banking & Finance. All the
departments have been discussed in detail and all the policies and procedures have been
described thoroughly.
As the main purpose of internship is to learn by working in practical environment and to apply
the knowledge acquired during the studies in a real world scenario in order to tackle the
problems using the knowledge and skill learned during the academic process, In this report the
detailed analysis of the organization has been done and all the financial, technical, managerial
and strategic aspects have been evaluated to analyze the current position of the organization.
Along with it, the background analysis, the prevailing competition analysis, the business
process analysis, and the internal environment and external environment of the organization
have been discussed and the recommendations for the improvement have been made wherever
required. In the end the learning and experiences section consists of all the policies, processes,
practices and procedures which I have undergone through and learned during my internship
program.

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v
 CHAPTER 01

INTRODUCTION TO REPORT

1
 1.1. Background of report:

The study is about the general operations and management of Allied Bank Mansehra, and

focuses on the Marketing policy of the bank, which was conducted through interviews in the

branch. Each student of BBA (Hons) in (Department of Management Sciences) must undergo

an eight weeks internship program in any organization to know the business environment in

real time and know what kind of changes brings the marketing department in the management

activities. The real purpose of this internship program is to provide an opportunity for students

to see the practical applications of their professional background studies.

1.2. Purpose of study:

Purpose of the study was two pronged.

1. General Purpose:

• To get acquaintance to the banking operations.

• To know what sort of changes IT brings in managerial activities.

• To see the application of our Professional studies especially.

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 2. Specific Purpose:

Specific purpose includes

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

 To objectively observe the operations of Allied Bank of Ltd in general and the
operations of ABL, Mansehra in specific.
 To make recommendations or implementation plans for the improvement of the
operations of ABL, Mansehra in the light of our professional studies.

1.3. Nature of study:

The study is critical in nature. It was conducted to investigate critically into the operations of

Allied Bank Ltd and it also explains that how ABL provides facility of online banking to its

customers. The annual reports or the consolidation data of the Bank has not been focused in

specific because it does not reflect on the operational performance of branches. However, they

have been referred to as when and where required.

1.4. Scope of study:

The study covers two areas with its variables, which affects the operations of the branch

directly, or indirectly. These two areas of variables are:

 Branch specific variable.

 Bank specific variable.

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The branch specific variables are the variables under the control of the branch management

and directly affect its operations e.g.

 Layout of the branch.

 Customers’ relations.

 Departments in the branch

 ATM

 Online banking.

The bank specific variables are those variables, which are not in control of the branch

management e.g.

 History of ABL

 Services provided by ABL

 Role of ABL

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 1.5. Methodology:

Both primary and secondary have been used in the compilation of this report. The methodology

used is as under:

During the compilation of this report, I relied mainly on the primary data. The tools used for

the collection of primary data are interviews and observation. To get primary data I also

performed some practical work.

The secondary data was mainly used for as a background material and for purpose of

references. The major sources of secondary data were the annual report 2017; other printed

material of the Bank and internet played a vital role as a source of secondary data.

1.6. Limitations:

The Study was subject to the following limitations, the absence of which couldhave made this

report more accurate, systematic and factual:

 Lake of published financial data.

 Lack of ATM’s back hand information with stuff.

 Access to data.

 The non-cooperative behavior of some managers and staff members.

 My weak financial position.

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 CHAPTER 02

INTRODUCTION TO THE ORGANIZATION

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•

7
ABL is one of the largest banks in Pakistan, serving the Country for over 60 yearsin all spheres at

banking and financial Services

2.1. Vision:

To become a dynamic and efficient bank providing integrated solutions and the first choice of bank

for all customers.

2.2. Mission:

 To provide value-added services to our customers

 To provide high-tech innovative solutions to meet customer requirements

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

stakeholders

 To provide a challenging work environment, and reward dedicated team members

 To play a proactive role in contributing towards the society

2.3. Values:

 Integrity.

 Excellence in Service

 High Performance

 Innovation and Growth

ABL has emerged as one of the foremost-privatized financial institutions in Pakistan endeavoring to

gear up its operations to meet the demands of the future

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 2.4. 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.

2.5. Meaning of banking:

The Bank Companies Ordinance of 1962 defines Banking as "Banking" means accepting for

the purpose of lending or investing deposits of money from the public, reimbursable to sight or

otherwise and withdrawal by means of checks, drafts, orders or others.

2.6. History of ABL:

Established in December 1942 as the Australasia Bank at Lahore with a paid-up share capital of PKR

0.12 million under the Chairmanship of Khawaja Bashir Bux, and his business associates, including

Abdul Rahman Malik who was amongst the original Board of Directors, the bank had attracted

deposits, equivalent to PKR 0.431 million in its first eighteen months of business. Total assets then

amounted to PKR 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

9
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.

2.7. Important statistics about ABL:

Customer 4,506k

No. of employees 7,000

Branches 750

Utility booth 50

Airport booth 5

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Total clients in mansehra 2,00,000

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12
13
 2.8. Main objective:

The main objective of the bank is to accept deposits and provide loans to its customers and also

to be more efficient in providing services. The bank maintained its commitment to most efficient

and personalized services to its customers. Allied Bank of Pakistan introduces many

remunerative schemes for its depositors and introduce computer services for the first time in the

banking history of Pakistan. Allied bank gives advances to small, medium and Big industries,

commercial establishment, agriculture, construction companies and other needy persons. Allied

bank collects electricity gas and telephone bills from public and over hundred branches of Allied

Bank Ltd. deal in foreign exchange were facilities are given to financial and commercial so its

ultimate objective is to receive funds from the depositors and provides loans\credit facilities to

different sector including trade, industry and agriculture in its most branches.

2.9. Introduction to departments:

2.10. ABL Mansehra BRANCH:

(Branch code = 0432)

I did my internship of eight weeks in ABL Mansehra BRANCH from 04-05-2016 to 30-07-16.

It is a small branch of the ABL that has not yet been decorated. I chose this branch for two

reasons. First, I think a small branch can find more learning opportunities. Second, it works in

different departments of ABL in the same branch near my home.

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So, I have a chance to briefly understand each department

2.11. Current saving department:

In ABL Mansehra Branch current saving department mainly deals with cheques, vouchers and

advices. First of all a cheque holder have to present his/her cheque to the person responsible for

issuing the tokens. . Then cheque is passed on to the computer operator to entry it in computer.

Afterward it will go for signature verification after which it will be given to cashier for payment.

2.12. Account department:

2.13. Deposits is the life of Bank:

Bank borrowing funds from outside parties is more important because the entire banking system

is based on it. Receiving of deposits is a basic function of all commercial banks. Commercial

banks do not receive these deposited for safekeeping purpose only. When the bank receives the

amount of deposited as a depositor, it become the owner of it. The bank may therefore use these

deposits, as it deems appropriate. But there is an implicit agreement that the amount owned by

the bank will be paid back to the depositors on demand or after a specified period of time.

The borrowed capital of the bank is than the bank own capital. Bank’s borrowing is mostly in

the form of deposits. These deposits are lend-out to different parties. Larger the difference

between the rate at which these deposits are borrowed and the rate at which they lend-out the

greater will be the profit margin of the bank. Larger the funds lend-out the greater will be the

return earned on them and greater the amount of return on these deposits earned greater will be

the profit for the bank. It is because of this interrelated relationship. Deposits are referred to as

the “life blood small” for any banking sector.

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 2.14. Kinds of account:

There are numbers of account that ABL offers to its customer keeping in mind their needs and
dealings

1. Saving bank PLS account:

In Pakistan the saving Bank accounts are know as profit and profit and loss sharing accounts

(PLS A/C) fowling the illumination of bank. The owners of such account are not allowed to

withdraw money more than once are twice a week. In case of withdrawal of large sum, the

depositor is required to give to prior notices a week or two. Thus the bankers are not required

is always available to bank for giving to loans to their customers. Thus these deposits also serves

as source of credit certain by the commercial banks

2. Current account:

There is no limit of withdraw of money from these accounts. In practice the bankers do not allow any
profit to such deposits in Pakistan. The customers are required maintaining the minimum credit
balance in their account in case of failing incidental charges are recovered from defaulters. This is
because the depositors may withdraw current deposits at any time and as such the bank is not entirely
free to employ such deposits. In general, the bank allows the overdraft facilities to current account
holders & the prevailing rate of markup is charged from these customers.

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

16
 3. Term deposit account:

These deposits are also called as time deposits because these deposits are based on the fixed duration.
The period for which these deposits are kept with bank are ranged from seven days to ten years in
light of the agreement between the customer and the banker. The profit allowed on these account
depend on the duration longer the duration of the deposits the higher will be the rate of profit.

The operation of fixed account is different from saving & current accounts. Every time money is
deposited with the bank an application from filled and the bank issue a fixed deposit receipt for
amount deposited along with specific period. Fixed deposit receipt is given to the depositor and the
bank retains the counterfoil of the same receipt.

Fixed term deposits may be in the joint names of two or more person. The payment to one of those
people will not discharge by the bank without the authority of others.

2.15. Opening and operation of bank account:

As discuss earlier there is a prescribed procedure for opening different types of account . Following
steps re followed while opening a new account.

1. Application from account opening:

A person who wishes to open a bank account is required to complete this from the personal

information is to be furnished. The application signs the declaration to effect that he has understood

the rules and regulation of the bank.

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 2. Introduction:

As required by the banking law the new customer needs to be introduced by the account holder

of the same branch where the account is being opened. The manager or any other bank officer

may introduce the new customer if they know them personally.

i. Signature card:

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

ii. Cheque Book

Upon completion of the account opening procedure, a cheque book is issued to the customer to

withdraw cash from his account when needed. Cheque contains a minimum of 10 leaves and a

maximum of 100 leaves. Bank also collects the consumption tax on the check.

2.16. Department of Advances:

1. Lending principles:

The basis function of the bank is to accept deposit and lend money to the borrowers against a

spread so to be able to give some profit to the depositors as well as to earn profit for the bank.

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

principals:

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 i. Safety Principle:

It means that the lended money will come back along with interest or service charges etc. The

borrower should not invest the money borrowed in unproductive or speculative business.

ii. Liquidity Principle:

The money which has been lended to the borrower should be returned to the bank on demand or as

per repayment schedule provided by the client. The sources of repayment should be clear and definite

Loans to the borrower shall be refunded to the bank on demand or on the repayment schedule

provided by the customer.

iii. Purpose Principle:

The purpose of the advances should be legitimate and productive. It should be ensured that the

banks, funds are not being utilized for speculative business. The credit restrictions by the

central bank should not be violated & it should also be ensured. It is always beneficial for the

bank to finance for short-term requirements.

iv. Profitability Principle:

The end result of every business activity should be to earn some profit. Similarly the bank must

get some profit out of the activity of lending so that the depositors could get their shares as well

as the shareholders could earn something for their investments

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 2.17. Finance types:

1. Short-Term Finance:

Allied Bank Ltd. receives the saving of the people and lends it for short term to its customers. Short-

term finance is generally given for a period of one year or less in duration.

2. Medium-Term Finance:

The duration range of the intermediate term finance is from one year to three years. It is also called

term loan. Intermediate term finance is usually given for the expansion of an existing business or

for the purchase of new equipments.

3. Long Term Finance:

This type of finance is required for the period of more than five years. Long term finance is generally

given for the compilation of big projects, for the construction of building and for the purchase of

machineries.

2.18. Producer of Applying for Loan:

Any customer who applies for loan should have an account (usually current account) with ABL

branch concerned. That account must be in running position. When approval from head office is

given, branch gives tern & condition to the party. Bank does not advance 100% loan against a

security, rather the profit margin is different in different type of loan.

2.19. Remittances department:

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Another important part of the ABL Mansehra branch is the remittance department. The remittance

department transfers money from one bank to another and from one place to another.

Remittances in the collection department. ABL pays a public check only on the counter and checks

are forbidden. ABL transfers funds from one place to another by:

1. Mail Transfer:

When a customer requests the bank to transfer his money from this bank to any other bank or

the branch of some other bank, the first thing he has to do is to fill an application form. In which

he states that he/she wants to transfer the money from this bank to that bank by mail. If the

customer is the account holder of the bank, operating personal will proceed further with steps

like:

 Writing a debit voucher for a/c holder’s a/c

 Preparing an advice in favor of stated bank/branch

 Writing credit voucher for GL

 Mail the advice If the customer is not the account holder of this bank, then firstly, he

has to deposit the money and than above procedure will be adopted to transfer his

money.

When customers ask banks to transfer money from banks to branches in other banks or other

banks, the first thing he needs to do is fill out the application form. In which he said he/she

would like to transfer the money from this bank to that bank by mail.

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 2. Telegraphic Transfer:

With the changing requirements of the customer, ABL has introduced the fastest transfer of

money. The sender is required to apply through a form in which he will give all the necessary

details about the sender and beneficiary. The sender deposits the money to be transferred plus

bank charges at the bank counter. The remittances officials send a telegram to concerned branch

with specified code words and the receiving branch makes payment to the beneficiary. Vouchers

are sent by ordinary mail to keep the record. On TT, no excise duty is charged only commission

and telegram charges are charged.

3. Pay Order:

Pay order is the most convenient simple and secure way of transfer of money. It is issued by,

drawn upon and payable by the same branch of the bank. It is neither transferable nor negotiable

and as such it is payable to the payee named there in. The following are the parties to a pay

order.

 Purchaser is a person, firm, company or local authority.

 Issuing/paying branch is one which issues/pays on presentation.

 Payee is a person named there in

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 CHAPTER 3

PRODUCTS AND SERVICES OF ABL

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 3.1. Services of ABL:

3.2. All-Time Banking:

Allied Bank has introduced the Allied Cash last year also referred to as ATM card.

The customer will now have the convenience of withdrawing cash from any of ABL’s ATMs (Auto

Taller Machine) conveniently located in major cities at any time of the day or night even on closed

days/holidays. Other services include customer being able to inquire about the balance of his/her

account or printing an abbreviated (mini) statement showing the most recent eight transactions up to

the previous working day.

In order to obtain Allied Cash+ Card, the customers simply have to fill out prescribed Application

form available at selected Allied Bank Branches in Karachi and Lahore. The dully-filled form should

be handed over the Manager of the Branch where the customer is maintaining his account. Non-

account holders would first have to open an account with Allied Bank to have access to this facility.

3.3. Allied Ummrah Aasaan:

This unique scheme facilities those persons, who cannot afford to incur the lump sum expenses for
Umrah. It allows the intending pilgrims (Aazmeen) to make payment of Umrah charges in monthly
installments. Its salient features are

Its outstanding features are:

 It is free of interest and markup.

 Using this scheme family, relatives and household servants can be sent for Umrah.

 Around 2500 Aazmeen are to be sent for Umrah every month.

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 Lucky winners of the draw are duly informed by their respective branches.

 Total package for Aazmeen from Karachi is being Rs. 45,000. Aazmeen from Lahore

and Islamabad will have to pay an extra Rs. 3,000/- for Airline fare.

 Umrah packages are of 10 days duration. The charges include Airline return ticket.

 Fee Visa, family accommodation and traveling within Saudi Arabia (Jeddah to Makka,

Makka to Madina and Median to Jeddah).

 Application for whole Family/Group can be filed through a single Application Form.

All applicants of a family/group are sent for Umrah even if only one member of that

family/group is declared successful in the draw.

 Due to any reason if Umrah Applicant needs to withdraw his/her application, he/she

will given a refund of all money deposited through installments till that time.

 At the time of submitting the application Aazmeen has to deposit Rs. 2,000 per person

as first installment. Rest of the money is to be deposited through monthly installments

of Rs. 2,000/- person on every 5th day of the month.

 If an Applicant wins in the draw he/she is required to pay the balance amount through

monthly installments on returning from Umrah.

 Aazmeen have to submit a copy of their NI Cards and Passports with the application.

 Applicants have to deposit the monthly installment using deposit slips still 5th of every

month. Defaulters will not be included in the draw.

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 3.4. Master Cards:

The customer can now become the holder of a true Credit Card here in Pakistan. Allied Bank under

license from Master Card International, U.S.A. issues its Master Card to anyone meeting the

eligibility criteria. With the Allied Bank Master Card the customer is assured of a service meeting

the highest international standards maintained by Master Card.

The Allied Bank Master Card helps the customer pay without the complications of cash or checks. It

doesn’t cost the customer anything if he pays in full within the due date, but if he decides to spread

the payments over several months a service charge @ 2.50% per month is charged. Allied Bank –

Master Card is safer than cash and simpler than checks.

The customer has been an account holder with the Allied Bank to apply for the Allied Bank – Master

Card that is available to the customer for an initial fee of Rs. 2,000/- (Rs. 500/- membership fee +

Rs. 1,500/- annual fee). Once the customer obtains his card, he simply presents it at Shops,

Supermarkets, Hotels, Pharmacies, Nursing Homes, restaurants, Petrol Pumps and hundreds of other

establishments which display the familiar Master Card sign throughout Pakistan and abroad.

Once purchases are made, the customer signs a voucher and that’s it he is not required to take extra

troubles. Every month the customer receives a statement showing details of transactions, outstanding

and the minimum amount due. The statements also give the last date for payment so the customer

can avoid paying service charges.

In order to avoid disruption in use of the card, it is essential that a least minimum payable amount of

the bill be paid regularly. In case the required payment is not received the operation of the Master

Card is automatically, suspended by the system. In such case, the card is activated after receipt of

overdue payment only.

26
 3.5. Allied Tahafoz Scheme of Deposit:

Brings the customer unparalleled life insurance covers along with attractive monthly profit.

Minimum Deposit amount – Rs. 50,000/- or multiples thereof. Insurance cover up to - Rs.

5,000,000/. As Competitive rate profit. The features of this scheme are:

• Prospective client who will maintain a return free deposit for at least 3 months

shall eligible to avail interest free/mark-up free finance.

• Payment of profit on monthly basis, automatic renewal on face value.

• Life insurance up to 5 times of the customer’s deposit amount with no extra cost.

• Premium shall be paid by the bank.

• Full payment of claim in case of – Death – Permanent total Disability.

• Eligibility Age – 18 to 64 years.

• No medical examination for: - Deposit up to Rs. 500,000/- and age up to 60.

It offers the customer unparalleled life insurance coverage along with an attractive monthly

profit. Minimum amount of deposit - Rs. 50k / - or multiples of that. Insurance coverage up to

Rs. 5 million as a competitive rate benefit.

3.6. Allied Karzas Scheme:

Allied Bank moves a step forwards by introducing interest free banking through Allied Karzas

Scheme. The aim of this scheme is to provide an opportunity to the depositors to take advantage

of a real Riba Free economic environment and avail

27
• Prospective client will maintain a return free deposit for at least 3 months shall be eligible to

avail interest free/mark-up free finance.

• Deposit amount Rs. 100,000/- and multiples thereof.

• Minimum deposit period, 3 months with automatic rollover facility.

• Premature encashment allowed, without any penalty/charge.

• Minimum deposit period for eligibility of finance, 3 months.

• Maximum period of finance, 6 months.

• Maximum period to avail finance, 12 months from the maturity of deposit.

3.7. Products:

1. Home Remittances:

With a network of 755 branches in Pakistan, the Bank promises to provide safe and prompt

remittances of foreign personnel and make special arrangements in this regard through

designated foreign exchange agencies and correspondent banks.

Through affiliate courier service, ABL ensures that the beneficiary's account at the ABL branch

is credited within 48 hours of receipt of the overseas remittance information.

2. Hajj Services:

28
Banks help pilgrims who want to visit by helping them fulfil this religious obligation. Hajj forms

and other related services provided by banks. However, the Hajj pilgrimage the terms and

conditions and the government promulgated each year policy is consistent policy.

After the Pakistani government announced the pilgrimage policy, Hajj can be applied to all branches

of the season.

3. Utilities Bill:

All branches of Bank charge utility bills for electricity, gas and telephone. For customer

convenience, utility bills are charged by the branch during bank hours and at night banks during

all business days. Bills can be paid by cash or cheques.

Consumers can cross check into the drop box at the branch under the "Checks Drop-in" system.

4. Agricultural Finances:

Banks under the Agricultural Financing Initiative envisaged by the Allied Bank of Pakistan

provide short-term, medium-term and long-term farm and non-farm loans. Farm credit is

extended for production (input) and development purposes.

5. Lockers:

ABL lockers are available in three different sizes of large, medium & small annual fee. Deposit holder

does not need to open an account with the Bank.

29
 6. Export Import Business:

ABL provides clients with efficient import and export trade financing services, providing

customers with trained and motivated employees to handle business through a large number of

authorized branches.

7. ABL Travelers Cheques:

Carrying cash to a strange alien spot may prove to be risky because a single event can leave one

without any monetary support. Therefore, the bank introduced traveler's checks in order to

prevent any accidents.

3.8. Seasonal finance:

1. Running Finance:

Operational financing is a one-year short-term loan allowed by the bank. A running financial

account can be run and daily sales proceeds can be credited to the account. Marks are recovered

on the day-to-day balance of products.

Operating funds are suitable for meeting the daily financial needs of the business.

2. Cash Finance:

Cash financing allows for the mortgage of goods. Delivery of goods.

3. Demand Finance:

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Demand financing One-time payment or payment in accordance with the agreed payment

schedule, and in accordance with the agreed instalments, monthly, quarterly, biennial or annual

payment.

4. Role of ABL in Banking Sector:

ABL is one of the most dynamic and aggressive banks in Pakistan's banking industry. This is due

to the impressive growth and development it has made over six decades.

Soon, the Allies grew into one of the country's leading banks, surpassing several other early banks

established by competitors.

5. Contribution Before/At the Time of Independence:

ABL was formed in response to the appeal of Muhammad Ali Jinnah because it is a Muslim

bank in the subcontinent. At the time of its independence, Pakistan had an urgent need for

banking services and experience, and ABL reached the limit and provided the best experience

in the development of emerging countries.

6. Commitment to Serve the Customers:

ABL takes a new approach to customer service, not the traditional way, which is

marketoriented, if the customer likes it. ABL's dynamic, radical and personalized banking style

is very different from the traditional business model then.

In fact, each and every aspect of ABL's behaviour reflects the prominence of these customer service

commitments.

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 7. Better Working Environment:

ABL provides employees with a better working environment and pay structure and facilities.

Incentives and rewards are to improve efficiency and better service to customers.

The competitive environment helps to introduce thorough specialization, which ultimately changes

the outlook for the industry as a whole.

8. Modern Banking Policy:

Pakistani banking expansion and development is significant. Until 1942, the development of the

banking sector included the stage of establishing the banking structure. The establishment of

ABL has opened a new era of banking system. This is a phased competition with established

giants. The banking industry has met the perverts.

Clients will naturally be attracted by banks to provide better and faster banking services. When

the coalition banks challenged the major banks that started the policy assessment, they were

surprised to find that they had a lot to change. They begin to change and adopt more modern

and relevant strategies.

9. Deposit Mobilization:

The banking industry and ABL in particular played an important role in helping to mobilize

savings. The importance of deposits in the total money supply continues to rise, highlighting

the commercial bank's contribution in this regard.

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From the very beginning, ABL has introduced a number of initiatives to improve the Bank's

deposit base. An important part of all the work is to popularize the banking habits of urban and

rural people and attract a large number of customers to orbit.

10.Branch Expenses:

Soon after commencing business by the end of June 1942, only few branches had been opened.

The management decided to broaden the geographical coverage so besides the cities, the bank

branched out into small towns & the far-flung, less development and unbaked areas of fulfill its

social responsibility. The branches in small town and villages have been vital help to the small

industrialists and business, industrial workers, farmer’s craftsmen and other persons of limited

means. The bank had extended its network to more than 650 by the end of Dec. 1973. At present

the number exceeds 819 branches.

3.9. Home Remittances Handled:

The Bank contributions in handling home remittances by over seas Pakistanis have also been

commendable.

3.10. Foreign Trade:

The bank has always played key role in the promotion of foreign trade especially in financing of
exports. The bank’ achievement in the area is really commendable, as it has not only to compete
with the domestic banks but with the large international financial agencies as well

3.11. Free of interest Banking:

The Islamization of economic system in Pakistan began from July 1979. In Jan 1981 the PLS

banking was launched. Interest free modes of financing had been introduced, and in the first

33
half of 1985 a number of measures over taken for complete charge over of the whole system of

domestic banking to non interest basis. And finally the process of transaction from interest base

to non-interest banking was completed. Since the banking companies are not allowed to accept

deposits (excluding foreign currency deposits) except on the basis of Profit & Loss sharing.

A separate department at the head office was set up which was later on upgraded into a full-

fledged Islamic banking division apart from supervising the Islamic banking operations. The

division has conducted research and has been able to add to the literature on Islamic banking,

both of theoretical and practical significance.

3.12. Computerization:

While mechanization in ABL, began as early as in 1950’s the bank also took the lead in

introducing computers in banking operation in Pakistan and now ABL is connected to its

branches through online banking

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 CHAPTER 2

SWOT ANALYSIS

35
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 he threats to its survival in order to grow and survive.

4.1. Strengths:

i. The branch office offers 3 machines of fax and more than 7 connections of telephone, making

communication between different branch offices easier.

ii. The branch links through the 755 branches online network, enabling it to better serve its

customers.

iii. This branch provides up-to-date computers to speed up your computer exertion.

iv. The branch is located in commercial center of Mansehra. This place gives the branch a

competitive advantage.

v. Commercial activities of branches in commercial districts have performed more than

residential areas. Thus increasing the number of clients.

vi. The branch has the most experienced staff and is a dynamic combination of experienced

executives and young executives.

vii. The branch is the main branch in the area, which is another addition point for branch. viii.

Hold a Hundi account and pay by check. This process provided an opportunity for branches

to make more Vantage customers bank customers

4.2. Weaknesses:

36
 i. Experienced branches, good staff, but training capacity cannot adapt to the rapidly changing

banking environment.

ii. Long-term customer contact is not sustained with customer.

iii. Technical training of employees is negligible, for example, in the absence of computers,

individuals without alternative training that can record daily transactions.

iv. The organization is very mechanized and does not provide the flexibility to encourage

creativity.

v. Lower-level employees are not cooperative with lower-level employees in other

departments.

vi. Manager's control does not work.

vii. Manager's discretion is low, can provide customers with more incentives and valueadded

services.

viii. Some employees lack commitment and professionalism. Staff always eager to leave the bank

as soon as possible. They are also considered later to start their actions. ix. Organizational

culture is not cooperative.

x. Some executives and some employees of senior management observed nepotism.

xi. The branch has no industrial accounts.

xii. The technical management of the branch office is low.

xiii. Mainly due to the lack of technical training staff available technology cannot be well

maintained. For example a scanner, although its usability has not been used for scanning

specimens for signature care.

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 xiv. Branch offices lack physical facilities such as clean toilets that may affect employee

performance xv. The design of a branch hinders the workflow on the one hand and exposes

the document on the other hand and anyone who enters the branch office can easily take it

away.

xvi. The file system is not up-to-date Wasting a lot of time searching

for even a week's worth of documents.

xvii. The staff spent are collecting more time than required. xviii.

Delay was observed due to non-compliance with the

procedures.

xix. Despite ABL, Mansehra branches lacked specialized counters or facilities in the area such

as:

• Investment advisory counters.

• Leasing.

• Credit services.

xx. The four branches of the Mansehra Allied Bank are closely linked, providing most of the

services differently.

xxi. No effort has been made to recover the outstanding debt. xxii. No facilities to receive

and respond to complaints and invitations.

xxiii. Foreign currency accounts are not accepted. These staff members have not been the

main reason for the negative reaction to the training of foreign exchange accounts.

38
xxiv. Customers came to TTs TCs and other banks do not receive Happy Sand, which

deprived the bank's revenue.

xxv. Some of the deficiencies at United Pakistani Bank affected the operation of Manila

Bank:

• Lack of functionality and proper research and development may scan micro and macro

environmental data for future planning and strategy.

• Financial audit, but the business audit did not get the attention it deserves.

• There are no procedures to encourage lower and middle management to create.

4.3. Opportunities:

i. The biggest opportunity for ABL, the Mansehra branch, is the largest number of Hindi

clients receiving their payments through ABL, Bank Mansehra branch. These customers

can easily convince themselves to open their accounts with ABL.

ii. A considerable part of the labour force in the area serves overseas. You can encourage

their families to use ABL as a remittance channel.

iii. Internet facilities in the area provide ABL with access to the internet. iv. The Bank has

basic infrastructure to facilitate online processes.

v. The location of ABL Mansehra Branch provides ABL with an opportunity to get more cost

deposits.

vi. The Group's survey of IT firms found that many companies are not satisfied with the

existing banks, so the Mansehra branch with its excellent quality of service and long

working hours can seize these customers

vii. Threats:

39
i. The biggest threat to the success of branch operations is that competitors' services are

better. Many private-sector banks have higher returns than Allied Bank.

ii. Depriving profits is yet another threat to Bank Mansehra success.

iii. One of the biggest for the ABL branch, Mansehra is the increasing rate of dissatisfied

customers. It was noted that most of these clients were not satisfied with the delays in

the service.

iv. The biggest threat to ABL Mansehra's division is the decline in staff morale. They think

they did not provide bonuses. They did not pay due attention to speaking at the annual

meeting. The proxy form is signed on behalf of them without letting them know.

v. High-pressure interest groups are evolving, posing a continuing threat to Allied banks.

40
41
 CHAPTER 05

FINDINGS AND RECOMMENDATIONS

42
The ABL critical analysis in the previous section is the representation of your past, mirror of

your present and an idea of your future. The past data of the branch of ABL Mansehra allowed

me to study the organization from a historical perspective and understand the inconvenience in

the banking operations. The study of the present ABL helped me to evaluate the organization

compared to its future and its competitors.

The data obtained from the analysis of its present and future in combination with my

professional studies resulted in some suggestions and implementation plans, which can help

increase the profitability and operational success of ABL, Mansehra branch.

Some of the main suggestions of findings are discussed.

5.1. Physical facilities:

Physical facilities or layouts are the most fundamental characteristics of an organization that

customers observe when they shape their opinions, opinions, or ideas about the organization.

As a result, each organization tries to give its customers a good first impression by showing

their physical facilities or layout.

Branch of the physical facilities to meet the requirements, to be changed in time to provide customers

a good environment.

Suggested changes and corrective actions are as follows:

• The lighting system must be improved and all lights that have been disabled must be replaced.

• Due to the failure of the bathroom, there is always a stink in the bank. Therefore, you must

wash your hands in order to remove this unpleasant smell.

43
 • Generators should be provided to branch offices to minimize disruptions due to blackouts.

• Newspapers should be offered to clients to avoid the pain of waiting for a long time.

• Cash counting machines can help reduce the time spent on cash

5.2. Availability of staff:

With no more employees, the bank's existing staff is overburdened. Branch staff must be

proportional to the customer, speed up the work process, avoid overloading of employees and

eliminate customer dissatisfaction due to work flow delays.

The additional staff required are divided into the following categories.

• More skilled workers should be added to existing staff.

• One staff assistant or two staff members have been trained in computer and have sufficient

foreign currency account training.

• A fourth-grade employee should be hired on a daily wage or contract basis to maintain the

filing.

5.3. Commitment of employees:

By introducing an effective performance appraisal system, employees' commitment capability

can be enhanced, and the achievements and services of our staff can be rewarded and

recognized.

The evaluation system must have the following characteristics.

44
 • Feedback:

Regularly available to employees to reward their efforts through rewards (bonuses) and public

appreciation.

• Uniform:

Assessment system All employees must be evaluated equally

• Objectivity:

The assessment system must be based on facts and figures and objectively assessed on the basis

of fact.

5.4. Simplification of advances:

The biggest source of bank income is prepayment. Advances from ABL, Mansehra branches

are declining, resulting in a decline in bank revenue. Banks should make pre-processes quick

and easy to meet customer requirements.

The following steps are recommended to streamline the advance procedures.

• Increase the Manager's discretion to prepay. 100,000.

• Speed up the investigation and verification process.

• Expand client base.

5.5. Concept of marketing:

45
The concept of marketing should be followed in every aspect of the organization.

In general, bank employees consider marketing to be a client, begging them to open an account

with a bank and to respect every one of his fair and unjust conduct. They should be taught that

marketing is more than just going to customers.

A client's canal, so being attracted to provide customer-oriented service, showing sympathy for your

client and personally joining him.

5.6. Client orientation:

Deposits are the main source of funds for commercial banks. Therefore, each bank's priority is to

increase the deposit amount and amount. The key to success is attracting new customers.

Real success is keeping old customers while attracting new ones because retaining customers is

more difficult than attracting new clients.

• Each depositor should be given the same important position, and there should be no

difference between the clients so that each client feels as important as the other clients.

• Employee attitude should be friendly to all customers. If the affected person is absent,

the client should be taken to the person or friendly guidance. The attitude of "not my

job" should not exist.

5.7. Mobilization of less cost deposits:

46
Cost analysis shows that 43% of bank charges are time deposits, which is a very high

percentage. In addition, the interest on the advance payment is Rs. 0.265 billion less than interest

on different deposits. 4.1 Million. Banks Should Launch an Activity to Get Less Cost

Deposits, High Current Accounts, and Low-Cost PLS Savings Accounts.

5.8. Information access:

The Bank ought to give data to all the present and potential clients identifying with the new

items, benefits, some administration's charge structure and different issues, which are probably

going to influence the clients. It ought to be ensured that all the client shave access to this data.

Passing on data is of no utilization, unless, there is some input from the clients.

The accompanying measures are proposed to actualize this recommendation.

• Booklet, fliers and other printed reports must be given to clients, which ought to give

all the data important to draw in and hold clients and to fulfil the client's requirement

for more data.

• Personal contacts with the clients can help in giving data to clients. Every one of the

clients must be given an opportunity to get the coveted data by individual contact with

the Bank staff.

• Complaint and recommendation box ought to be kept up at the entryway of the Bank

where the clients can call attention to disadvantages in the client's administrations and

set forward their proposals on his change of the administrations nature of the Bank.

47
 5.9. Performance audit:

The financial audit of the bank is conducted on a regular basis and is an unexpected routine

audit. However, performance and institutional audits are completely ignored or they should be

an integral part of our audit services. The direct result of ignoring the performance results are

the non-financial deficiencies of the organization, such as relations with customers, the lack of

necessary facilities, the motivation of employees and the control of the manager.

In view of the above, in order to maintain the competitiveness of the banks, to gain more

customers, more deposits and greater profitability, it is suggested that the banking performance

audits be carried out on a regular and surprise basis.

5.10. Increasing of deposits campaign:

The number of bank accountholders makes a significant contribution to bank deposits and

determines their volume, profits and bank size. As a result, ABL Mansehra branches must have

a clear plan to increase the number of accounts. The implementation plan provides details on

how to increase the number of accounts.

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Branch Profile:

Branch Allied Bank Limited Mansehra

Head Office Islamabad
Establish in 1980
Code of region 0351
Branch code 0257
Address Mansehra City
Telephone No 0997-920832
Fax Number 0997-321334
Manager Name Zahoor Ahmad
Working employee 6
Security guards 4

Abbreviations

ABL Allied Bank Limited

NBP National bank of Pakistan

BM Branch Manager

OM Operation manager

49
KPK Khyber pakhtoon khawa

D.D Demand draft

SBP State bank of Pakistan

PO Pay order

REFRENCES:

50
 Richard, O. C. and N. B. Johnson (2004). "High performance work practices and

Finance effectiveness: substitutes or compliments?" Journal of Business Strategies 21(2):

133-148.

 http://www.abl.com/thebank/marketing.asp

 http://www.abl.com/commercial

 Annual Report 2016

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