INTERNSHIP REPORT

Allied Bank Limited

University of Gujrat

2014

Every praise is due to Allah alone the merciful and teachings of His Prophet (Peace and
blessings be upon him) who, for ever, a torch of guidance and knowledge of kindness
as whole.
I would like to thank,
Almighty Allah whose blessings are always with me.
To my teachers at all my stages of study who always guided me in right direction.
To all my friends from whom I learned much.
To the staff of the Allied Bank Limited DC branch, who fully cooperated with me in the
completion of my Internship.

MBA 3.5yrs

Table of Contents
Brief Executive Summary of the Internship............................................5
Part-1........................................................................................................
Introduction.............................................................................................6
Over view of the organization..............................................................7
Brief history..........................................................................................7
Nature of the organization................................................................... 8
Business volume, Rewards................................................................. 9
Products / services line......................................................................11
PEST Analysis...................................................................................20
Contribution of organization towards economic development......... 21
Organizational structure........................................................................22
Organizational hierarchy chart.......................................................... 22
Number of employees-------------------------------------------------------------23
Main offices........................................................................................23
Introduction of all departments..........................................................23
Comments on organizational structure............................................. 24
Part-2........................................................................................................
Internee work.....................................................................................25
Weekly timetables.......................................................................... 26
Summary of learning......................................................................34
Conclusion of report....................................................................... 35
SWOT Analysis.............................................................................. 36
Recommendations......................................................................... 39
References.....................................................................................41

Executive Summary
MBA 3.5yrs

This report is based on internship in Allied Bank Limited. It is a famous and apparent
bank of Pakistan. This is the report based on my internship period and all the time which
in have spend in the Allies Bank Limited and learn a lot about the banking sector
activities and it will help a lot for me in future times and will be help in practical life .in so
many ways as it has been described in the report contents and all this based on
personnel learning.
This report contains SWOT analysis, PEST analysis, and overview of Allied Bank
Limited. There are also stated the activities which I performed during my internship in
the branch. In this report also discuss the industry analysis of banking system in
Pakistan. The problems in this branch are also discussed. Recommendations are also
provided for the problems which founded

PART-1
1-INTRODUCTION
MBA 3.5yrs

1.1 Background of Studies:

As part of the academic requirement for completing Master of business administration
the students are supposed to have six weeks training with any recognized organization.
The core idea of the internship in any organization is to that the students should know
the basic rules, practices and the discipline of banking organization, for that reason I
have undergo six weeks internship in Allied Bank Limited Dc road Gujranwala branch
1.2 Purpose of study:
The interior purpose is to collect related information to organize internship report on
National Bank of Pakistan. To observe, analyze and interpret the suitable data broadly
and in a productive manner.

To work practically in an organization.

To develop interpersonal communication.

1.3 Scope of Studies:

As a trainee in Allied Bank Limited the main objective of my study research was to know
about the general banking dealings in the branches of Allied Bank Limited. The main
activities, involved in the operation of the Allied Bank Limited Branches are remittances,
deposits, advances and transaction regarding foreign exchange. At the same time I
have covered the different aspects of overall functions of Allied Bank Limited in this
report.
1.4 Objective:
Purpose of the internship is training and growth of the students. Internship enabled the
students to know the practical state in which the banking sector operates. It
has also guided the students to get better their decision making power so as to
use the resources in a excellent manner to get maximum profit.

MBA 3.5yrs

2- OVERVIEW OF THE ORGANIZATION

2.1 BRIEF HISTORY OF ALLIED BANK LIMITED:

ABL is the first Muslim Bank established on territory that later on became
Pakistan. It was established on December 3, 1942 as Australasia Bank at
Lahore with capital of 0.12 million. At that time the chairman was Kh. Bashir
Baksh. ABLs story was one of the dedications, commitment to
professionalism and adaptation to changing environmental changes.
The bank's history is divided into many phases. During 25 years of united
Pakistan the bank advanced forward in all areas of its activities. 1970s were a
difficult decade for all Banks of Pakistan. In 1971 East Pakistan was
separated and Australasia Bank lost its 50 branches and a lot of capital as
well. Nevertheless the growth remained steady.
In 1974 all the Banks were nationalized including Australasia Bank. The small
provincial Banks were merged into Australasia Bank. On 1 July 1974 the new
entity was renamed as ABL of Pakistan Limited. Then it started its operations
as Public sector financial institution.
The government floated its 10 % of the shares in the open market in past and the ratio
became 60: 40 and in potential they trying to make it 55: 45.
In 1999 national bank celebrated its golden jubilee during the last fifty years bank has
made significant strides in the financial services industry in Pakistan.
In 1999 its market share was around 22% and it leftovers the biggest financial institution
in Pakistan

MBA 3.5yrs

2.2 Nature of the organization:

Allied Bank Limited is a banking organization, a public limited company listed in Karachi
Stock Exchange (KSE), Islamabad Stock Exchange (ISE), and Lahore Stock Exchange
(LSE).
Allied Bank Limited is the largest commercial bank of Pakistan. The bank handles
treasury transactions on behalf of the government of Pakistan as an agent to the State
Bank of Pakistan. The bank has a network of 964 branches in Pakistan.

2.3 Business Rewards Honors:

Best Retail Bank in Pakistan 2011 By The Asian Banker

Best Domestic Investment Bank in Pakistan 2009 By The Asset Magazine Hong
Kong

Best Equity House in Pakistan 2008 By The Asset Magazine Hong Kong

MBA 3.5yrs

The Banker magazine UK, honored ABL with the The Banker Deal of the Year
2008 Pakistan award

The Corporate Finance House of the Year, 2007-2008 by the CFA Association of
Pakistan, the local body of the CFA Institute, USA.

The Corporate Finance House of the Year, 2006-2007 award by the CFA
Association of Pakistan, the local body of the CFA Institute, USA.

The Corporate Finance House of the Year, 2005-2006 by the CFA Association of
Pakistan, the local body of the CFA Institute, USA.

2.4 SERVICES
.

Hajj Services

Hajj Service at Allied Bank is available to all pilgrims. The forms and other related
services are provided by the Bank. Hajj applications are available with all branches

MBA 3.5yrs

during Hajj season, immediately after the Hajj policy is announced by the
Government of Pakistan

Demand Draft
Demand draft is a popular banking instrument in the trade circles to transfer funds
from one place to another. Allied Bank offers speedy issuance and payment of drafts
at the branches.

Pay Order
Our customers can walk-in to any Allied Bank branch and make Pay Order to
transact payment to a named payee.

Allied Bankers Cheque

Allied Bankers Cheque (ABC) replaces traditional payment instruments like Demand
Drafts and Pay Orders. This instrument provides added assurance as its unlikely to
be returned unpaid due to lack of funds.

2.4.4 TRAVELER'S CHEQUES

Negotiability:
Pak Rupees Travelers Cheques are a negotiable tool
Validity:
MBA 3.5yrs

There is no limit on the period of validity

Encashment:
At all 200 branches of ABL
Limitation:
No limit on buy
Safety:
ABL Travelers Cheques are the safest way to carry our currency

2.4.5 PAY ORDER

ABL provides other grounds to transfer customers money using their services. Their
pay orders are a secure and simple way to move customers money from one place to
another. And, as usual, their charges for this service are very competitive.
Issuance of Pay order
1. for ABL Account Holder

MBA 3.5yrs

Rs. 50/- (Flat)

2. for ABL Non-Account Holder
Rs. 100/- (Flat)
Rs. 25/- (Flat) from student for payment of fee favoring educational institution
Issuance of duplicate Pay order
for ABL
Account Holder
Rs. 100/- (Flat)
2. for ABL Non-Account Holder
Rs. 150/- (Flat

2.4.6 MAIL TRANSFERS

Shift your money safely and rapidly using ABL Mail Transfer service. And they also offer
the most competitive charge in the market.

2.4.7 FOREIGN REMITTANCES

To make easy its customers in the area of Home Remittances, National Bank of
Pakistan has taken a number of actions to:

MBA 3.5yrs

Increase home remittances through the banking scheme

New Features:
The existing system of home remittances has been revised/significantly improved and
well-trained ground functionaries are posted to provide well-organized and consistent
home remittance services to nonresident Pakistanis at 15 overseas branches of the
Bank besides Pakistan International Bank (UK) Ltd., and Bank Al-Jazira, Saudi Arabia.
Zero Tariffs: ABL is providing home remittance services without any
charge.
Strict monitoring of the system is done to ensure the climax
possible security.
Special courier services are hired for speedy delivery of home
remittances to the beneficiaries.

2.4.8 SHORT TERM INVESTMENTS

ABL now offers excellent rates of profit on all its short term investment accounts.
Whether you are looking to spend for 3 months or 1 year, ABL Is rates of profit are
extremely attractive, along with the safety and service only ABL can provide.
National Income Daily Account (NIDA)
The scheme was launched in December 1995 to attract corporate customers. It is a
current account scheme and is part of the profit and loss system of accounts in
operation throughout the country.

MBA 3.5yrs

2.4.9 EQUITY INVESTMENTS

ABL has accelerate its actions in the stock market to improve its economic base and
restore investor confidence. The bank is now regarded as the most active and main
player in the development of the stock market.
ABL is involved in the following:
I nvestment into the capital market
Introduction of capital market accounts
ABLs involvement in capital markets is estimated to increase its earnings, which would
result in improved returns offered to account holders.

2.4.10 COMMERCIAL FINANCE

Let them help make your dreams become a reality
Their dedicated team of professionals really understands the needs of professionals,
agriculturists, large and small business and other segments of the economy. They are
the customers best supply in making ABLs products and services work for them.

MBA 3.5yrs

2.4.11 TRADE FINANCE OTHER BUSINESS LOANS

1.
2.

AGRICULTURAL FINANCE
CORPORATE FINANCE

AGRICULTURAL FINANCE
ABL provides Agricultural Finance to solidify faith, commitment and pride of farmers who
produce some of the best agricultural products in the World.
Agricultural Finance Services:
I Feed the World program, a new product, is introduced by ABL with the aim to assist
farmers make best use of the per acre production with minimum of required input.
Select farms will be made role models for other farms and farmers to follow, thus
helping farmers across Pakistan to increase production.
Agricultural Credit:
The agricultural financing strategy of ABL is aimed at three main objectives:

Providing reliable infrastructure for agricultural customers

assist farmers utilize funds efficiently to further develop and achieve

better production
offer farmers an integrated package of credit with supplies of
necessary inputs, technical knowledge, and supervision of farming.

Agricultural Credit (Medium Term):

Production and development
Watercourse improvement
Wells

MBA 3.5yrs

Fencing
Solar energy
Equipment for sprinklers
Farm power
Development loans for tea plantation

Farm Credit:
ABL also provide the following subsidized with ranges of 3 months to 1 year on a
renewal basis.
Operating loans
Land improvement loans
Equipment loans for purchase of tractors, farm implements or any
other equipment
Livestock loans for the purchase, care, and feeding of livestock

Production Loans:
Production loans are intended for basic inputs of the farm and are short term in nature.
Seeds, fertilizers, sprayers, etc are all covered under this plan.
CORPORATE FINANCE
Working Capital and Short Term Loans:
ABL specializes in as long as Project Finance Export Refinance to exporters Preshipment and Post-shipment financing to exporters Running finance Cash Finance
Small Finance Discounting & Bills Purchased Export Bills Purchased / Pre-shipment
/ Post Shipment Agricultural Production Loans
Medium term loans and Capital Expenditure Financing:

MBA 3.5yrs

ABL provides financing for its clients capital expenditure and other long-term
investment wants. By sharing the risk associated with such long-term investments, ABL
expedites clients try to improve and expand their operation thereby making possible the
completion of their clients vision. This type of long term financing proves the banks
belief in its client's capabilities, and its commitment to the country.
Loan Structuring and Syndication:
Allied Bank leadership in loan syndicating stems from ability to form strong relationships
not only with borrowers but also with bank investors. Because they understand their
syndicate partners asset criteria, they help borrowers meet considerable financing
needs by enabling them to reach the banks most interested in lending to their particular
industry, geographic location and structure through syndicated debt offerings. Their
syndication capabilities are complemented by their own capital strength and by industry
teams, who bring specialized information to the structure of a transaction.

Cash Management Services:

With Allied Banks Cash Management Services (in process of being set up), the
customers sales collection will be channeled through vast network of ABL branched
spread across the country. This will enable the customer to direct their companys total
financial position right from your desktop computer. They will also be able to take
benefit of ABL outstanding range of payment, ejection, liquidity and investment
services. In fact, with ABL, youll be provided the whole thing, which takes to manage
your money flow more accurately.

INTERNATIONAL BANKING
ABL is at the head of international banking in Pakistan which is proven by the fact that
ABL has its branches in all of the major financial capitals of the world. Additionally, ABL
MBA 3.5yrs

have recently set up the Financial Institution Wing, which is placed under the Risk
Management Group. The role of the Financial Institution Wing is:

To effectively manage ABLs exposure to foreign and domestic

correspondence
Manage the monetary aspect of ABLs relationship with the
correspondents to support trade, treasury and other key business

areas, thereby contributing to the banks profitability

Generation of incremental trade-finance business and revenues

The lowest rates on exports and other international banking

products
Access to different local commercial banks in international banking

ABL offers:

2.5 PEST Analysis

Political:
Privatization policy and deregulation.
shock of subsidized credit affecting and NCBs.
MBA 3.5yrs

 Employment practices, Unions, Associations.

Political Interference and harassment.
incident of high taxation on banking industry.

Economical:
Constraints in mobilization of public savings because of inflation.
Staff cost.
Operating cost.
Bad debts

Social & Cultural:

Insufficient human resources.
Cultural strain to savings.
Defaulters lobby.
Declining education and work ethics.
Insufficient accountability.
Sufficient empowerment.

Technological:
Insufficient communication infrastructure.
Insufficient computer facilities.
Insufficient IT training

MBA 3.5yrs

2.6 Contribution of Organization towards Economic

Development:

Allied Bank Limited is playing a very important role in development of

Pakistan economy; Allied Bank Limited is making an initiate role in
development of agriculture sector. This is the main production sector in the
Pakistan and makes important input in GDP of Pakistan. The character of
responsibilities of the bank is different and distinct from the other banks.
Allied Bank Limited also deals the treasury transaction of the government of
Pakistan

as

an

agent

to

the

State

Bank

of

Pakistan

federal/provincial Government receipts on their behalf.

3- Organizational Structure

3.1- HIERARCHY OF ALLIED BANK OF LIMITED

MBA 3.5yrs

for

handling

3.2 Number of Employees:

MBA 3.5yrs

There are 14 numbers of employees in National Bank of Pakistan

3.3 Main offices:

The Head Office of the Allied Bank Limited is at Karachi. ABL carries on its business all
the way through a wide set up of branches those are situated in the country and out of
the country very competently and in point of fact. All branches execute their functions
under the rule of home Regional Offices and regional offices are proscribed by the Head
Office situated a excellent building in the heart of Karachis center.
ABL has a wide home branch network consist of more than 200 branches situated in all
over the country. ABL has also more than 24 branches out of the country.

Introduction of all departments

Following are departments in ABL:

1. Deposit Department
2. Account Opening Department
3. Bills Remittance Department
4. Cash Department
5. Clearing Department
6. Credit Department
7. Government Department
8. HR Department

3.5 Comments on Organizational structure

MBA 3.5yrs

Structure of Allied Bank Limited is Bureaucratic Structure;

it is a structure that pressure highly routine operating tasks achieved through
specialization, in this structure much formal rules and regulations are followed, tasks are
grouped into functional departments, centralized authority, narrow spans of control, and
decision making that follows the chain of command. The structure of Allied Bank Limited
is very centralizes decision are taken on time, Policies are issued by the head office and
is implemented within the bank as per the guidelines.
There is a branch manager who looks after the overall working of the branch and who
directs the working of the bank according to the instructions. It has the capacity of
novelty response to altering environment, high ability of clash resolution. Every person
within each department is assigned various tasks which increase their duty performing
ability via job rotation. No department has interference in the working of other
department. It increases the efficiency of the department, as there is no external
involvement by any person. Neither they are responsible to any person with whom they
are not directly concerned.
This reduces the ambiguities and complexities. The works are correctly assigned and
delegated. Everyone knows whom to report in case of urgent situation and what to do in
time of crisis. The officers are well coordinated and assist each other in their work.
There exists a friendly work atmosphere. Everyone is given promotion opportunity.
Overall, the environment of ABL bank is very well established and admirable. The way
the organizations structured is brilliant.

MBA 3.5yrs

Part-2
4- Internee work

4.1 Introduction of Office Branch

Allied Bank Limited is situated at DC road Gujranwala. This is the posh area of the city.
There is a large business in that branch because the branch is in the highly business
area.
I started my internship in Allied Bank Limited at 19-05-2014 and it was completed at 3006-2014.

4.2 Details of Supervisors:

I was worked under 2 supervisors the names of those kind people are

M. Shahbaz Cheema
Malik Imran Shehzad

LEARNING AS A STUDENT INTERNEE:

1 WEEK
Date
19-05-2014
MBA 3.5yrs

Activity
I serve whole day in Govt. dept. and saw what type of work

Supervisor

is done in this dept.

I worked with Mr. Shahbaz Cheema. He told me that this
20-05-2014

section performs the most important job of customer

dealing. Then I filled the GOVT. DEBIT SCROLL and
GOVT. CREDIT SCROLL all of the day.
3rd day I filled 12 scroll of different category
(Provisional, Federal, Railway passport, A-tax, P-tax,

21-05-2014

domical, FBR). We can enter 30 vouchers on one scroll and

take original scrolls for attachment with final report.
4thday I work in Govt. dept. and filled 18 scrolls of different
category all of the day. And at the end of the day I learnt to

22-05-2014

make summary of the all Govt. Collection and Govt.

Payments. And learnt to fill the Govt. cheque and transfer
the cash to cash office.
I worked independently and fill all scrolls of different
category. And at the end of day prepare the summary of the
day (Govt. Collection and Govt. Payments). And I filled

23-05-2014

cheque and submit the cash office.

All the employees of the dept. were more cooperative and I
learnt much from this dept about Govt. collections and
pension.

2 WEEK
Date
26-05-2014

Activity
, I filled the payment order cheques and also the vouchers
who are above mentioned. I also deal with the customers
who requested for making demand draft, mail transfer,
telegraphic transfer and payment order. The bank charges
Exchange, federal excise duty, commission and withholding
tax from the customers. There are different rates for

MBA 3.5yrs

Supervisor

account holders and non-account holders.

I entered the all type of vouchers in the computer. There
are different sheets for every voucher. I also enter the
27-05-2014

responding advices in the computer for demand draft, mail

transfer and telegraphic transfer. Dealing with customers
and making of vouchers go throughout the week.

I learn the new thing which was cheking of balance of

28-05-2014

account holders. I checked the current balance of account

holders and the salary debited in their account of the
previous month.
I did all above works and also printed the reports of the

29-05-2014

recorded work. Daily reports should be equal by both sides

debit and credit. And I also entered the travelers cheques
This was my last day in this section. I spent the nine hours
in the bank. The whole day I did all the works of the section
making of vouchers, entering of vouchers, entering of

30-05-2014

travelers cheques, checking of balance, making of reports

and balancing the reports.
I worked with honesty and with the mind of learning in the
department. I learnt much from the section and my time
spent here was beneficial for me.

3 WEEK
Date
02-06-2014

MBA 3.5yrs

Activity
I spend this week in Deposit Department.

Supervisor

I serve the whole week in Deposit dept. and saw that what
type of work is done in this dept.
This department has 4 sub sections.
1. Check approval
2. Check posting section
3. Payment section
4. Receipt section
I filled the vouchers of cash deposit and check deposit.
03-06-2014

Approximately I filled 30 vouchers. I also did the total of last

six months payment and receipt balance. I made the
summary of every month on separate page.
I worked in check posting section. Check is posted in EBS

04-06-2014

(electronic banking system). I posted the cash payment and

cash received. And I also checked the balance of
customers.
I only filled the vouchers. I filled app. 17 vouchers.

5-06-2014

And on the computer. I checked the data of account holders

and checked the account holders signature.
I did the same things in the dept. I spent the whole day in

06-06-2014

the bank. I also did work on EBS. At the end, I compared

the total of cash payment with Mr. Saeed Butt and cash
receipt with Mr.Rasheed Ahmad.

4 WEEK
Date
09-06-2014

Activity
The manager sent me to the credit department. Credit
department has two sub sections namely;
1. Credit section
2. Retail section

MBA 3.5yrs

Supervisor

I attached with Mr.Malik Imran shahzad. Whole day I typed

the some letter with him; letter about for the agriculture
proposal.
Second day of the week, Mr.Malik Imran shahzad. told me
about the Retail section that this section works for retail
banking. He told me that this section operate three function
10-06-2014

namely;
1. ABL SAIBAAN
2. ABL KAROBAR
3. ABL ADVANCE SALARY
Third day of the week in the NBP, Mr.Malik Imran shahzad.
told me about NBP advance salary. NBP gives up to 20
month advance salaries to GOVT. employees and Semi
GOVT. employees also. But NBP preferred GOVT.

11-06-2014

employees. And this loan gives to only permanent Govt.

employ not contract based employee. And here is a
reference also compulsory. And I was updating the account
holder name.

12-06-2014

Fourth day of the week in the ABL I attached with Mr.

Zubair sarwer. First of all he told me about BCIL (business
credit information limited). This institute is provide the
worthiness about the customer and told all information
about customer/creditors to the bank.
Sir told me about all 5 types of loan.
Cash Finance: it has two types
Hypothecation in which customer can use his property but
charge of property with bank.
And in Pledge position and charge of property both

MBA 3.5yrs

property of bank. And charge 13 to 14 % interest.

Running Finance: Sir told me that under this, ABL offers
TDR (term deposit receipt), Cash margin, DSC (defense
saving certificate). And bank interest charges annually.
Demand Finance: in the demand finance ABL offer more
than 3 years loan
Agricultural Finance: they are purposive, long term,
seasonal.

I learned much in Credit Dept About loans and Advance

13-06-2014

salary.
Now, I am aware about actual procedure of credit

5 WEEK
Date

Activity
I had learn about collection of transfer cheques, so I
perform this duty during the day. I collected 60 transfer
cheques. I also filled vouchers for the deposit of cash and
cheque. I also helped (officer in the department) in issuing

16-06-2014

new cheque books to the customers. The bank issues

cheque books at the spot also if any customer demands.
These cheque books are stamped by the officer including
bank branch code and account number. Otherwise order is
placed to head office and they send within one week

17-06-2014

MBA 3.5yrs

2nd day of the week, I handled the work of officer in

Supervisor

customer dealing department. As routine I filled vouchers

for the customers who came for cash and cheques deposits
in their own accounts and also collect 70 transfer cheques.
I also helped in opening new accounts for the new
customers. We almost open 10 to 15 accounts that day.
3rd day of the week, as per routine I worked in the
department. That day I filled almost 30 to 40 vouchers for
the customers, who came to deposit cash and cheques in
18-06-2014

their personal accounts. I also helped in opening new

accounts for the customers. That day we opened almost 10
to 12 new accounts.
4th day of the week, as usual I helped in issuing new
cheques books and opening new accounts for the new
customers. We almost opened 5 to 6 mew accounts that

19-06-2014

day. I also filled vouchers for the customers who want to

deposit cash and cheques in their personal accounts in the
bank branch. I filled almost 40 to 50 vouchers for cash and
cheques deposits.
I have done my routine work filling the vouchers for the
customers who came for cash and cheques deposit and
entered them into register as record. I almost filled 20 to 30

20-06-2014

cash vouchers and 40 to 50 cheques vouchers all the day.

Then I helped the officer in issuing cheque books.
I learned much in Account Opening Dept About the
procedure of account opening and cheque book.

MBA 3.5yrs

6 WEEK
Date

Activity
This was my 6 week in ABL and first day in foreign
th

23-06-2014

exchange department. Foreign exchange is very important

department in the bank.
Supervisor gives me a lecture about foreign currency
accounts. And he also told me about the whole procedure

24-06-2014

of inward remittance and outward remittance. He told me

that the ABL deals only four types of currency accounts.
He told me about the process of outward remittance. This
process is similar to the inward remittance, but only the

25-06-2014

parties name will change. The ABL is Senders bank, the

person is sender and the person in the other country is
beneficiary and his bank is beneficiary bank.
He told me that the ABL also deals in import and export.

26-06-2014

27-06-2014

So, Sir gave me lecture about import process and which

documents are required for import. An importer must have
a foreign currency account in ABL
He told me that the requirement to open foreign currency
account.

MBA 3.5yrs

Supervisor

I learned how the deposit and payment data entered in the

system. I also did this work app. 1 hour. The amount is paid
and received according to the daily rate of ABL.

4.4 Summary of Learning

4.4.1 Skills Gained from Internship:
As we are the students and from books we only come to know about things and for
learning we have and need the practical things which I gain in working in the Allied Bank
it was the learning experience for me. I acquire a lot of knowledge such as (opening of
account, filling of cheque, filling of cash slip etc.

4.4.2 Responsibilities during Internship:

As far as concern with the responsibilities which I have undertaken during my internship
then I say that its not an easy job for the reason that banks have to deal with cash so
the responsibility always exists in that field. The other responsibility which I feel exists in
the operation department because this department has to deal with all departments

4.4.3 Influence on Future Career:

In this world for living life is very though thing so for spending good life experiences
assist a lot which comes from practical so the internship is all about acquiring practical
knowledge and I think for a person bright future waiting if his or her study and practical

MBA 3.5yrs

knowledge match. By doing the internship in Allied bank I learned a lot and this will help
me a lot in creation my carrier.

4.4.4 Correlate with Classroom:

In class room the things have been known to us and guided us by our teachers and by
doing internship I come to know in reality what the going on in banking system.

5- CONCLUSION OF REPORT

5.1 Conclusion
One of the largest online banks in Pakistan is Allied Bank Limited. It works according to
rules and regulations set by State Bank of Pakistan. If I say, future of overall Allied Bank
Limited is bright, it will not be wrong. But when talking about civil line branch of ABL in
Gujranwala, my point of view is totally changed. In my opinion, the future of civil lines
branch is in danger. Poor customer relationship management, poor customer dealing,
poor discipline are some factors which can harm the branch at macro level and can
become a major cause in the fall of civil lines branch in near future. But if branch
overcomes its weakness by utilizing its strength and opportunity available in market,
then it is a support to the drowning boat of civil line branch of ABL in Gujranwala. This is
the only way by which threats can be avoided. HR department has become helpless
due to rigid and non changing behavior of Employees. Old employees do not want
change actually. Civil line branch is the zonal branch which deals with all small

MBA 3.5yrs

branches in Gujranwala region, if any branch faces any problem; civil line branch
handles it as it is the head office in Gujranwala. Paper work of ABL is awesome, but
latest technology is as important as to survive in the market and to be in competition. If
ABL in Gujranwala covers all its weaknesses, and takes opportunities at right time,
surely it can be on the way of progress InshaAllah and will contribute in overall progress
of ABL at national level and as well as at international level.
Allied Bank Limited has too much strength, which are not available to the other
commercial banks in Pakistan. It has the largest market for improvement as it has
branches all over the countrys rural and urban areas. So it has the best access to the
public capital. The only thing remains is that the strengths and opportunities should be
capitalized in a scientific way to generate more of it. All the activities of the bank are
Best but the bank needs to solve the problem of online banking activities, which should
help the bank operations and will ease its way to become number one in banking sector.

5.3 SWOT Analysis

STRENGTHS

ABL one of the largest financial institutions of Pakistan with eight million of customer
base ABL holds 24.6% share of time and demand deposits in the country. Local
currency deposits comprise 67% of bank's total deposits while foreign currency
deposits account for the rest.

ABL has an extensive domestic branch network of 1276 (according to the latest
data) branches located all over Pakistan. The Bank also has a presence in 19
international locations including the USA, United Kingdom, Europe and the Far East.

ABL's total assets stood at Pak Rs.818 billion on December 2008. This included total
earning assets of about Pak Rs.639 billion with gross loan portfolio of Pak Rs.413

MBA 3.5yrs

billion. The bank also has an investment portfolio of Pak Rs.171 billion, which
comprises treasury securities, corporate bonds, shares and other securities.

ABL cash provision as percentage of nonperforming loans equal to 30% this

coverage factor for the non performing loans is the highest amongst the nationalized
commercial bank.

ABL is working as right arm government of Pakistan as it is responsible for all claims
of government for recovery as well as payment. All depositor of ABL are in relief that
their money security is guaranteed by government of Pakistan.

It acts as an agent of the Central Bank wherever the State Bank does not have its
own Branch.

WEAKNESSES

ABL staff especially at lower considers their work as burden. They usually waste
time in other task a part in performing their duty. Using government property for their
own need. They are reluctant to accept change brought by latest restructuring
efforts.

The general outlook and interior layout of branches are not as required according to
modern banking

ABL bearing up large burden in running those branches, which are not producing
any income but keep on adding expenditure.

ABL is relying on its traditional sources of income it has not taken benefit from
innovation in banking like introducing retail banking or consumer banking and using
any type of scheme to generate more deposits and producing more advances.
Further, more dont even continue its credit card due mismanagement and lack of
control.

ABL is far behind in offering modern banking facility like automated teller machines
then other commercial bank in Pakistan as only eighteen branches in all over
country have this facility.

MBA 3.5yrs

ABL has only a few on line branches. While from remaining branches data gathering
is time consuming, and not fool proof.

Quantum of settlement within different

branches is pending because of this updating daily record is becoming very difficult.

Customers have to fallow long lengthy procedure for opening of account as well
applying for debt. Which discourage most of the people to invest in ABL.

In ABL, most of the time merit not has importance in hiring of employees. Such
practices are black spot on the face of bank and resulted big losses and fraudulent
acts by ABL own employees.

OPPORTUNITIES
Reorganizing efforts going on in the ABL has open many opportunities for ABL to grow.
ABL current management has boarder vision. They have taken steps to improve
customer services, streamline internal procedure and creating a delectating climate for
technology initiative.
To achieve above mention objective they have created operation group

Starting of the retail banking initial working.

Setting of target for of making at least 300 branches country wide on line.

Closing of all those branches, which are burden on ABL.

Management to offer specialized services to major corporate including advisory and

debt syndication introduces the concept of relationship manager.

Comprehensive training programs has been develop to up grade the core banking
skills of the existing staff as well as integrate high quality hiring.

To improve the motivation of staff a merit-based culture is being promoted. Through

overhauling the manpower recruitment preservation and performance appraisal
system.

MBA 3.5yrs

These actions taken by current management provide a great opportunity for ABL for
making it future prosper and can make ABL not less than any modern commercialize
bank in Pakistan.

THREATS
Following are the major threats which national bank of Pakistan is facing:

Major threats ABL facing is from its competitor especially from denationalized
commercial bank. In which MCB is on the top of the list, The Bank provides 24 hour
banking convenience with the largest ATM network in Pakistan covering 15 cities
with over 100 ATM locations.

Retail banking and consumer banking resulting in the products such as credit cards,
housing finance and automobile finance lending to small individual consumers, and
purchases of automobiles, housing, and consumer goods are generally made on a
cash basis. These are causing another threat, if not counter will result in significance
loss of customers

Recently banks and other financial institutions have introduced innovative schemes
to attract deposits, like gift cheque scheme by ABL. These schemes offer prizes on
short and long term fixed deposits, through lucky draws.

Now banks are using technology which covers the distance no matter how far away
any one, through a satellite based, on-line real-time banking system and by offering
telephone banking, electronic funds transfer, E-Banking and other modern facilities.

6 Recommendations:

MBA 3.5yrs

Problems never exist without remedies. Allied Bank limited is not exception.
Understanding its complexities and the requirements of new millennium can solve the
problems faced by the bank in the era of modernization.
Following are the remedial measures suggested for the bank, which may bring it to
success:
Regulatory authority is highly needed concerning the disciplinary matters.
A committee of senior qualified expert staff should be physically present at bank
to receive complains by customers and catch the guilty person red handed.
Complain box should be such that no one can bring the compliant papers out of
box.
As only head office deals the pension, so this branch should provide facilities to
specially old aged pension holders to increase its good will.
Security cameras should be technically alright and latest.
Branch must review its strategy whenever any new entrance in market is visible
and whenever any product comes in market as substitute product of the products
of ABL.
ABL should introduce deposit mobilization products.
A check and balance should be imposed on all employees
A handsome amount of fine should be charge to the guilty employees.
training session should be held at different intervals in a financial year to make
employees more competent and get a competitive edge overall
Rules and regulations should be applied to all employees even to the top
management in any way.
Account opening, loan issuing and some other procedures should be more
convenient and flexible.
Make sure that all employees follow rules and regulations.
Any strategy implied for the overall benefit of organization should be accepted by
everyone, no one should have any objection on it.
MBA 3.5yrs

 Appraisal should be fair, transparent, and secured.

Separate information desk must be established in bank to facilitate the
customers.
Prompt reply to the queries of the customers.
Favoritism and nepotism should be strictly dealt. Any employee whether of lower
rank or upper rank found involved in favoritism and nepotism should be removed
on the spot.
A separate investigation team should be formed to investigate the market
situations and keep the working be up to date.
New qualified and competent employee must be hired to fill the gap.
All branches of ABL should be online for customer convenience and for best link
among all its branches.
Bank mangers should not encourage the influence of customers with huge bank
balance
Higher authority should be free from any influence and pressure by politicians
All branches should deal foreign exchange.
Internal audit should be held and executed fairly.
External audit is of tremendous importance. It should also be held fairly.
Differential products should be introduced by ABL.

Marketing Strategy should be improved.

Facilitation should be provided to civil line branch.

MBA 3.5yrs

7 Reference

Orientation books of ABL

www.scribd.com
www.wikipedia.com
VU course books
Conflict management
Human relations
Organizational development
And customers of ABL

MBA 3.5yrs