Allied Bank Limited

INTERNSHIP REPORT
CIBG, Allied Bank Limited 7E/3 Main Boulevard, Gulberg 3 Lahore
9/7/2011
HIRA SALEEM MBA (2010-2012) Roll # 830
Page |1 Internship Report on CIBG, ALLIED BANK LIMITED
Table of Contents
Executive Summary .......................................................................... 2 Allied Bank Limited History and Evolution ..................................... 2 Mission, Vision and Core Values ..................................................... 3 Hierarchy of the Company ............................................................... 5 Allied Bank Limited (CIBG) Departments ....................................... 6 Weekly Log of Duties ....................................................................... 7 Learning Conclusions .................................................................... 13 Bibliography................................................................................... 14
Written By: HIRA SALEEM
Executive Summary
I have completed my internship of 6 weeks in Allied Bank Limited, Corporate branch. My internship started on 10th June, 2011 and ended on 23rd July, 2011. This tenure brought great experience and learning. I chose this organization to get appropriate training of banking as I am much more interested in this field of work. Working in a corporate branch was an interesting experience. Allied bank is among 14 prestigious banks of Pakistan. Formerly, it was started by the name of Australia bank in 1942 in Lahore and was the 1st bank started in Pakistan. Later, its name changed to Allied Bank limited. Now it is enjoying its 63 years of existence and has built good position among its competitors. This report covers the brief history of company, core values, mission and vision, hierarchy of the company, introduction to its department, weekly record of work and Learning conclusion.
Allied Bank Limited History and Evolution

The 1st bank to be established in Pakistan was Allied bank Limited, formerly by the name of Australia Bank in 1942. After the incorporation of four banks its name was changed to Allied Bank Limited. In 2004, the management control of the bank was taken over by Ibrahim leasing limited. In 2005, Ibrahim leasing limited was amalgamated and vested into Allied Bank Limited. It was also listed on all stock exchanges in Pakistan in 2005. Today, the bank has its concrete origin of 63 years and offering commercial banking and retail services with more dedication to work and customer services. It has largest network 800 online branches operating in various cities of Pakistan that offers numerous technology-based products.
Allied bank has 6 basic Groups:

Commercial and Retail banking group Corporate and Investment banking group Consumer and Personal banking group Treasury Asset Management Core Banking
Mission, Vision and Core Values

Vision
To become a dynamic and efficient bank providing integrated solutions in order to be the first choice bank for the customers.
Mission
To provide value added services to our customers To provide high tech innovative solutions to meet customers requirements. To create sustainable value through growth, efficiency and diversity for all stakeholders. To provide challenging work environment and reward dedicated team members according to their abilities and performance. To play proactive role in contributing towards society.
Core Values
Integrity Excellence in Service High Performance Innovation and Growth
Allied Bank Limited (Corporate and Investment Banking Group)

Corporate and Investment banking group of Allied bank controls the banks loan portfolio. Currently, it holds the leading position in corporate lending. It provides financial services to public/private sector small/large sized firms. The services included in Corporate and Investment banking group is management of cash, providing and arranging finance, trade products, corporate finance products, corporate advisory and customer services on every bank related issue.
Hierarchy of the Company

Board of directors
President
Group Chiefs
Senior Executive Vice President
Vice President
Assitant Vice President
Officers Grade ( 1,2,3)
Tellers
Allied Bank Limited (CIBG) Departments

Operations Department
Cash Department
Remittance Department
Account Opening Department
Clearing Department
Utility Billing Section Cash Receiving Section
Inward Clearing
Payment Section
Outward Clearing
Trade Finance Department
Import Department
Export Deparment
Running Finance Department
Credit Department
My Weekly Log of Duties

Week 1
Operations: I started my internship from the Operations Department that handles its 4 major sub departments: 1) Cash Department 2) Remittance Department 3) Account Opening Department 4) Clearing Department My whole first week was spent in Remittance Department. On the very first day my supervisor, Mr Ali Armaghan Asad explained me the duties and functions of remittance department. On 2nd day of my internship, I started to gain particle knowledge by working directly for the remittance department. Remittance department actually performs the function of transferring funds from one place to another so that customers can meet their financial requirements. I issued the instruments like Payment Order and Demand Draft for the purpose of funds transfer. Payment order is used for fund transfer within the same branch and city or we can say for local payments whereas demand draft is issued for transfer for funds to other branch and city. I also learnt how to fill up the request form for the issuance of instruments, what important things to be mentioned on the form and what security parameters to be taken in order to avoid misuse and duplication of instruments. I respond to customer queries about their account balances and statements. I also attend customers and issue them their required account statements. Moreover, I posted advices. Advices are received when there is some mistake in posting, for instance, an amount is debited but did not credit or the bank failed to post an amount due to some network failure. Posting advices need
complete accuracy in posting the amount. So I had to be more active and accurate while doing this work.
Week 2
Account opening: In the 2nd week I was sent to Account Opening Department. Mr Yasir Amin was the Account Opening Officer. He gave me an introduction to different accounts such as: 1) Saving Account 2) Current Account 3) Fixed Deposit Account Then he told me about the requirements to open an account. With different type of accounts, the requirement of document changes. Documents required for opening all current accounts in local or foreign currency are application forms, specimen signature cards, computerized national identity card or the passport with photograph, birth certificate and bay form and know your customer form also known as interview form. If the CNIC does not contain photograph then the bank will obtain any other document such as driving license that have photograph in addition to CNIC. As it was a corporate branch, individual accounts were opened infrequently. They had joint stock companys accounts. State Bank of Pakistan had planned the prerequisites to open an account. They have listed certificates and documents essential for account opening. For the individual account opening, CNIC has to be taken and other documents depend on the type of profession he/she is doing. In account opening department, I also learnt to keep records of cheque books, maintaining records, deducting charges, stop cheque payments and issuance of lockers also.
Week 3
Clearing: My 3rd week of internship was spent in Clearing Department. Clearing department supervisor on 1st day explained me about two clearing types i.e. 1) Inward clearing 2) Outward clearing There subtypes include: 1) Same day clearing 2) Intercity clearing 3) Normal/Local clearing Basically, in clearing department cheques of other branches and other banks are sent for purpose of collection and cheques of other branches are paid as well. Cheques received for the same day clearing are paid and sent for collection in the same day. They are most prioritize and were collected in 1 st drawer. Same day clearing was sent before 9:30 a.m. I was told to sort out the cheques, to stamp them and to be precise while posting those cheques. As same day clearing time was very short so I had to be fast but accurate. Some of the bank branches are listed for same day clearing. The branches which are not listed for same day clearing and cheques those have amount less than RS 500,000 were paid in normal clearing. In intercity clearing, cheques of out of city branches were sent. Stamp of intercity clearing was affixed on cheques received for intercity. My duty was to receive cheques from customers and to check out the necessary details mentioned on cheques like whether the cheque figure matches with the deposit slip figure, whether the customer had signed the deposit slip and most important thing was to check if the cheque was not postdated. I also kept the record of returned cheques in returned cheques
P a g e | 10 Internship Report on CIBG, ALLIED BANK LIMITED
register. These cheques were returned to their account holder due to some issue, like they had insufficient funds in their account or some other reason.
Week 4
Trade Finance: In the 4th week of my internship I was transferred to trade finance. Under trade finance department they had 3 sub departments: 1) Export department 2) Import department 3) Running finance department I was asked to begin with exports department. Assistant exports manager, Miss Shabina Tabassum introduced me few concepts, such as 1) Letter of credit 2) Advising of LC 3) Export Forms. LC is the written guarantee made on behalf of importer bank to make payment to exporter if importer doesnt make the payment and to ensure that importer will get the goods. There are basically 4 parties involved: Importer, Exporter, Importers bank and Exporters bank. I came to know how these parties come into interaction and how bank provides the guarantee named as letter of credit to make sure that goods will be delivered to importer and payment would be made to exporter. I was asked to advise LC. Through advising LC its authentication is ensured. Charges are subtracted and then it is moved to beneficiary. I issued E-forms which are one of the important documents that have four copies, original, duplicate, triplicate and quadruplicate. Bank holds the original and duplicate copy. Triplicate copy is sent to State Bank of Pakistan when export proceeds are realized and quadruplicate copy is submitted to shipping company for the
issuance of bill of lading. E-forms are issued on written request by customer. Then signature is verified and e-form is issued. Proper record is maintained with receivers signature.
Week 5
Imports: In 5th week I was moved to Imports department for three days and then sent to re-finance department. In import finance department, bank offers financial resources to importer for specific time interval. In this time interval importer recovers the sale proceeds of imported goods from the buyers. I learnt about two import finance facilities i.e. Finance against imported merchandise and Finance against trust receipts. Besides import finance facilities, I learnt about different LCs which is described below: Revolving LCs: Revolving LCs allows opening the number of LCs of a specific amount within a definite time period, when the preceding LC is settled by the importer.
Usance LCs: Under ULCs, drawn drafts are of a specific period mentioned in LC and are payable by the importer on their outstanding dates. Period is of maximum 180 days.
Deferred Payment LCs: They are comprehensive form of ULCs. The credit in these can go beyond 6 months and exporter doesnt draw draft or bill of exchange on importer. These LCs are usually opened to import heavy goods and machinery. Re-Finance: For few days I worked in Re-finance department supervised by Mr Imran Nazir, which deals with post shipment and pre-shipment finances. I learnt about two finance resources i.e. Packing finance and Finance against foreign
bills of exchange. Packing finance is offered to exporters involved in exporting goods that are not covered by SBP finance export re-finance scheme. Packing finance is sponsored by banks own resources and normally, attracts higher mark-ups. Finance against foreign bills of exchange is also funded from the banks resources. And have commercial mark-up rates. This finance is for post shipment.
Then I was given the duty to check whether the re-finance facilities are settled. It requires thorough checking because State Bank of Pakistan have put penalty for each day if not adjusted on the same day of export realization.
Week 6
Credit: In my last week of internship, I was transferred to Credits department headed by Mr Faisal Hanif. There I had a complete introduction to credits department and the procedures to calculate the markup received and receivable on every quarter. It really needs a keen attention to produce precise results and demands more hard work as everyday there was a start or end of quarter of some customer. Operations: In the last two days, I was called back to Operations Department to handle the clearing operations because clearing Officer Mr Fakhar Malik was on leave. They have confidence in me so they handle me whole responsibility of clearing department. I worked independently. Now I find myself more efficient in doing this work and enjoyed more because I already had enough practice of whole 1 week in clearing operations.
Learning Conclusions
In my six weeks internship, I learnt about how flexibility is important in work, and how to handle multi tasks at the same time. My calculation skills were improved as well. It made me punctual. My communication skills were enhanced as communication skills are the basic requirement of banking sector jobs because it involve customers dealing and interaction with staff. Moreover, I learnt how to deal with customers. Whole day there was rush of customers. I was taught to handle all customers very patiently. Never lose temper; this is counted as the biggest weakness of an internee. Anyhow, this period was good and full of learning. This internship experience built sense of responsibility and accuracy in me. I really enjoyed working in Allied Bank Limited.
Bibliography
(n.d.). Retrieved August 20, 2011, from http://www.abl.com: http://www.abl.com/thebank/default.asp http://www.abl.com. (n.d.). Retrieved August 20, 2011, from http://www.abl.com/corporate/

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INTERNSHIP REPORT

CIBG, Allied Bank Limited 7E/3 Main Boulevard, Gulberg 3 Lahore

HIRA SALEEM MBA (2010-2012) Roll # 830

Page |1 Internship Report on CIBG, ALLIED BANK LIMITED

Written By: HIRA SALEEM

Page |2 Internship Report on CIBG, ALLIED BANK LIMITED