ABL GIF04MBIT0001

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Vision

“To become a dynamic and efficient bank providing integrated solutions

In order to be the first choice bank for the customers.”

Mission

• To provide value added services to our customers.

• To provide high tech innovative solutions to meet customers

requirements.

• To create sustainable value through growth, efficiency and diversity

for all stakeholders.

• To provide a challenging work environment and reward dedicated

team members according to their abilities and performance.

• To play a proactive role in contributing towards the society.

Values

• Integrity

• Excellence in service

• High performance

• Innovation and growth

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History of ABL

Allied Bank is the first Muslim bank, to have been established in December

1942 as the Australasia Bank at Lahore with a paid-up share capital of Rs. 0.12 million

under the Chairmanship of Khawaja Bashir Bux, the Bank had attracted deposits,

equivalent to Rs. 0.431 million in its first eighteen months of business. The Allied

Bank's story is one of dedication, commitment to professionalism, adaptation to

changing environmental challenges resulting into all round growth and stability, envied

and aspired by many.

In 1947, when Bank was in growing age, it had to undergo a shocking event whichdivided Asian sub-continent into two independent states namely Pakistan and India.

Allied Bank, being the only Muslim Bank on the soil of Pakistan, lost over 50% of its

operations and assets which were on the soil of India. So in 1947 all the branches in

India were closed down .

The management undauntedly faced the multiple challenges resulting from huge human

and financial losses on the one hand and the task of providing the newly emerged

nation with efficient and effective payment system and banking facilities to all sectors

of economy .

In 1971, the Bank lost more than half of its assets and network due to crises. The Bank

not only survived this serious crisis but also regained its financial strength maintaining

the growth rates in key performance indicators.

In 1974, the Board of Directors of Australasia Bank was dissolved and the bank was

renamed as Allied Bank. The first year was highly successful one: 116 new branches

were opened during 1974 and the Bank started participation in the spot procurement

agriculture program of the Government. Those seventeen years of the Bank saw a rapid

growth.

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In 1991 the branches increased from 353 in 1974 to 748 in 1991. In September 1991 the

Government divested portion of its shareholding and handed over the control and

management of the Bank to its employees. The financial health of the Bank deteriorated

during employees’ management compelling SBP to remove the employee directors by

its nominees in August, 2000.

During 2004, as advised by the Privatization Commission, the State Bank of Pakistan

(SBP) undertook reconstruction of the Bank’s capital whereby the Ibrahim Group, as a

result of bidding process, took over control of the Bank by virtue of acquiring 325

million shares of the Bank, representing 75.35% of the enhanced share capital. TheBank is now well positioned to expand, grow and diversify its portfolio of products and

services.

In May 2005 Ibrahim Leasing Limited was amalgamated by transfer to and vested in

with and into Allied Bank Limited. ILL shareholders were issued ABL shares in lieu of

the ILL shares held by them. ABL was formally listed and trading of the shares of the

Bank commenced w.e.f. the following dates.

Islamabad Stock Exchange 8th August 2005

Lahore Stock Exchange 10th August 2005

Karachi Stock Exchange 17th August 2005

Now all shareholders of Allied Bank Limited can trade in the shares of the Bank at their

free will.

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Corporate information:

Board of Directors

Mohammad Naeem Mukhtar (Chairman)

Sheikh Mukhtar Ahmad (Director)

Mohammad Waseem Mukhtar (Director)

Abdul Aziz Khan (Director)

Sheikh Jalees Ahmed (Director)

Nazrat Bashir (Director)

Farrakh Qayyum (Director)

Tasneem M. Noorani (Director)

Mubashir A. Akhtar (Director)

Kamal Monnoo (Director)

Khalid A. Sherwani (President / CEO)

Audit Committee

Farrakh Qayyum (Chairman)

Mohammad Naeem Mukhtar (Member)

Abdul Aziz Khan (Member)Company Secretary

Zia Ijaz

Auditors

M. Yousuf Adil Saleem & Co.

Chartered Accountants

Ford Rhodes Sidat Hyder & Co.

Chartered Accountants

Legal Adviser

Haidermota & Co.

Barristers at Law and Co

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Central Office

Bath Island, Khayaban-e-Iqbal, Main Clifton Road,

Karachi – 75600

Phone: 111-110-110

Head Office/Registered Office

8-Kashmir/Egerton Road, Lahore

Phone: 6360073

Organ gram

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Products and Services:

Following is the brief information about its Products & Services that ABL provides to

its customers. First of all we will discuss about its Products shortly. ABL is providing

these

Products:-

• Accounts

• Alternative delivery Channels

• Consumer Product

• Lending Products

• Corporate Leasing

• Accounts1. Rupee Deposit Account

Rupees Deposit Accounts can be opened with a nominal amount and

furthermore, there are no limits on the maximum balance. Allied Bank pays

the most competitive rates of profit on PLS Savings Account. Funds can be

deposited into this account through cash, cheques and other financial

instruments drawn on any bank or any other branch of Allied Bank. A

deposit receipt is issued when funds are lodged in PLS Special Notice

Deposits or PLS Term Deposits. The longer the period of holding the

receipt, the higher the rate of return. Allied Bank also issues Deposit at Call

receipt to the customers. The beneficiary of the Deposit at Call receipt may

be the depositor himself or a third party. The Deposit at Call suitable for

making down payment, security deposits, etc. The Deposit at Call receipt is

paid on demand.

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2. Foreign Currency Accounts

Allied Bank offers the highest rate of return on Foreign Currency Deposits

in the Country. Accounts can be opened in US Dollar, Pound Sterling, Euro,

and Japanese Yen at designated branches. All Pakistani nationals residing in

Pakistan and outside Pakistan can also open Foreign Currency Accounts.

Resident Firms, Companies including Investment Banks can open accounts.

3. Allied Basic Banking Account

In order to provide basic banking facilities to low income people in

Pakistan, Allied Bank has introduced “Allied Basic Banking Account”

(ABBA).This account can be opened with an initial deposit of Rs 1000/=.

The account is a non_ remunerative account with no minimum balance

requirement. The account will be closed automatically if the balance

remains “zero” continuously for one year. The statement of the account will

be issued on yearly basis. There are no service charges on the said account

for a maximum 2-withdrawals and 2 deposits during a calendar month.

Additional transactions will be subject to a service charge as per Bank’s

schedule of charges for every withdrawal/deposit, while there is no limit for

free of charge withdrawals from ATM.

1. Alternative Delivery Channels

1. Allied Cash + Card

Allied Bank ATM Card, also referred to as "AlliedCash+", can also be used

as a debit card at merchant locations/service outlets having ORIX POS

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Terminals and displaying the ORIX logo. To obtain your AlliedCash+ card,

just open your account with any branch of Allied Bank.

2. Online Banking

Allied Online is a unique service offering from Allied Bank Limited.

Through Allied Online, your account in Allied Bank is available to you from

any of our branches country-wide.

3. Internet Banking

Banking at your fingertips! Allied Direct Internet Banking offers you the

convenience to manage and control your banking and finances - when you

want, where you want to! It's Simple, Convenient, Secure and Faster. So,

just get clicking.

4. Helpline

Since the launching of Allied Cash+ Debit Card on January 27th 2003,

Allied Bank embarked on the path of value added consumer products.

Customer related services were being provided through our ATM-Wing

situated at Central Office Karachi.

As the numbers of AlliedCash+ Card increased, so did the services related

inquiries, complaints and requests from our customer. Hence, to facilitate

and to offer Quality Service to our customer, Allied Bank decided to

provide Toll Free Number Customer Services through 0800-22522.

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2. Consumer Products

Master CardYou 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 it's

Master Card to anyone meeting the eligibility criteria. With the Allied Bank

Master Card you will be assured of a service meeting the highest

international standards maintained by Master Card.

3. Lending Products

1. Seasonal Finance

Seasonal Finance facility is allowed against pledge of produce of Cash

Crops harvested in that particular crop season. The delivery of pledged

stocks/goods is made against appropriate cash payment.

2. Import Export Business

Allied Bank provides highly efficient trade finance services for

import/export business for our clients/customers through large number

of authorized branches where trained and motivated staff is available to

handle the business on behalf of customer.

3. Running Finance

It is a short term loan allowed by the bank for a period of one year. The

running finance account can be operated and daily sale proceeds can be

deposited into the account.

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• Corporate leasing

Allied Bank Limited commenced lease operations upon amalgamation with

Ibrahim Leasing Limited. Facilities include leasing for machinery, commercial

vehicles, vehicles and equipments. The Bank provides lease facilities for

balancing, modernization, replacement and expansion schemes to corporate and

commercial clients in all industrial enterprises.

Services:

1. Home Remittances

The Bank having a network of 735 branches all over Pakistan, undertakes to

provide safe and instant payment of remittance from expatriates, routed

through designated foreign exchange companies and correspondent banks

with whom special arrangements have been made in this regard. Through

the Allied Express Service, Allied Bank ensures that beneficiaries' Accounts

in Allied bank branches are credited with in 48 hours of receiving home

remittance information from overseas.

2. Remittances

Allied Bank can transfer funds to the remotest part of the country for

payment/credit to the customer himself or a third party, through

Telegram/Telex/Telefax for payment/credit on the same/next day.

Telegraphic transfers can also be made abroad in Foreign Currency.

Carrying cash to strange alien location can prove to be risky as a single

incident can render one without monetary backup of any sort. Hence

travelers’ cheques are introduced by banks in order to protect against anycontingency.

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3. Hajj Services

The Bank serves the intending pilgrims by helping them in performing this

religious obligation. The Hajj forms and other related services are provided

by the bank. However, the terms and conditions for accepting the Hajj forms

from intending pilgrims are in accordance with the Hajj Policy announced

by the government, each year. Hajj applications are available with all

branches.

During Hajj season, immediately after the Hajj policy is announced by the

Government of Pakistan.

4. Utility Bills

All branches of the Bank collect utility bills of electricity, gas and

telephones. For convenience of the customers, Utility Bills are collected by

the branches during banking hours and also in the evening-banking on all

working days. Bills can be paid through Cash or Cheques. Consumers may

drop bills with crossed Cheques into a drop box available at the branches

under "Cheque Drop-in" system.

Utility Bill payment facility - Pay your telephone, electricity, and gas utility

bills on any of our ATMs without having to wait in long queues outside

your branch.

5. Lockers

Allied Bank Lockers are available in three different sizes Small, Medium

and Large on a yearly fee. Locker holders need not have an account in the

Bank.

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6. Commodity Operation

It is a Cash Credit Financing to Government Department for procurement

of various commodities, as per allocation of the limits by SBP on

Government of Pakistan Guarantee.

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ATM Network

1) 1 Link Network

2) M Net Network

3) Online Branch Network

1) 1 Link Network

In continuation of ALL TIME BANKING services, with the country wide network

of 735 branches, we are pleased to announce that ABL has enhanced ATM services

by joining the "1-Link Switch" which has members of the Banks that are included in

the 1 Link Network .

2) M Net Network

The Allied Bank Allied Cash + card could be used in an M_Net .In Pakistan ,the

M_Net ATMfacilities can be availed at any of banks and locations that are included

in M Network .

3) Online Banking Network

ABL also provide its customer the Online banking facilities.

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Hierarchy of ABL Satellite Town

Branch ,Gujranwala .

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Functions Performed by these employees are

Manager

In ABL the main functions performed by the manager are account opening ,lockers

operations , provide the service of providing credit to the different parties and also issue

the letter of guarantee in the favor of the institution on the demand of the customer ..

Officer Grade 2

This employees is performing the functions of online transactions ,filling of demand

draft ,Call at deposit receipt ,payment orders ,all types of slips filling .

Officer Grade 3

This employee is performing the functions of clearing ,inter city clearing ,OBC,IBC

and posting of all the transactions .

Cashier

Cashier is performing the functions of collecting the bills ,deposit the cash and the

deposit of the cheques of different banks .

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Sir Naveed Sheikh Manager

Sir Hafiz Waheed Officer Grade 2

Miss Naghamana Officer Grade 3

Sir Shahid Cashier

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Practical Exposure in Different departments of

ABL

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Bank Main

Departments

Clearing Department

Customer Service

Department

Cash Department

Credit Department

General Department

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Clearing Department

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In this department I have learnt about the clearing ,intercity clearing ,OBC.I have also

learnt about the procedure of sending and receiving of the clearing as well as the

important documents required for these functions .

In clearing department I have learnt that an employee is performing the following

functions

Clearing

• Inter City Clearing

• OBC ( Outward Bills Collection )

• IBC(Inward Bills Collection )

Definition of Clearing

“It mean ABL bank has received the cheques of different banks for deposit

from its account holders . These account holders have received these

cheques from different parties with whom they are dealing .These parties

have accounts in different banks . These cheques are sent to those banks

where different parties have accounts, to check whether those parties have

sufficient balance in their account or not.If the parties have the sufficient

balance in their account the relevant banks pass the cheques by sending

the advice that is the proof that cheques have been passed (Parties have

the sufficient balance in their accounts ).The whole process is calledclearing “.

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Types of Clearing

• Local clearing

• Intercity clearing

• OBC(Outward Bills Collection)

• IBC(Inward Bills Collection)

1) Local Clearing

In Clearing the cheques are sent for clearing in those cities that are under the district of Gujranwala .

Local clearing is divided into two parts

• When bank sends cheques for clearing

• When bank receives cheques for clearing

a) Procedure when bank sends cheques for clearing

Enter all the cheques in the clearing register that are received by

bank from its account holders (customers) and send the cheques

for clearing .These cheques have been written in the clearing register

in this manner.(Account number of the accountholder ,Bank name ,

Cheque no. amount. And sum up all the amount of the cheques that are

sent for clearing.

b) Procedure when clearing is received

WhenABL bank receives the cheques for clearing first of all it checks theaccounts of the account holders. If they have the sufficient balance in their

respective account ,then ABL bank will pass the cheques and make

an advice.Otherwisethe bank will return the cheques and also intimate the

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reason of return through “memo” document.

Documents required when clearing sends

When all the cheques are enter in the clearing register ,next step is filling the

following documents in sequence wise

a) Document Bundle Cover : Clearing

b) Summary /Delivery Receipt

c) Add list

a) Document Bundle Cover : Clearing

The important information that are required for filling the document bundle

cover: clearing are date ,Stamp of the branch ,no of the instruments (how

many instruments sent for clearing ,Total amount in Rs ,authorized

signature of one officer is also required.

b) Summary /Delivery Receipt

Next step is also filling the Summary Delivery Receipt in

which :Dare ,total clearing instruments no ,stamp of the

branch ,one additional thing that is required in this delivery receipt

is seal number .

c) Add list

If the number of the instruments that are sent for clearing is

more than one than add list is made .

In Add list amount of all the instruments are written down

and add all these amount of instruments and also write their

total answer .

Stamps required for clearing

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Stamps required for clearing are Branch Stamp , Clearing Stamp, On the

back of the cheque Payee’s account will be credited stamp is required .

2) Inter city Clearing

The procedure of the intercity is same as the local clearing .

Definition

“It mean that customers who have accounts in ABL are dealing with

different parties .Sometimes these parties belongs to other cities and

these cities are not under the district of Gujranwala. So these chequesare send to other cities banks (or cities that are not under the district

of Gujranwala)for clearing .It is known as Intercity Clearing .”

Documents required when intercity clearing sends

Documents required for intercity clearing is same as documents required

for the clearing .

Stamps required for the Intercity clearing

Following are the stamps required for the clearing

• Branch stamp

• Clearing Stamp

• Inter City Branch

• On the back of the cheque payee’s account will be credited

stamp is required.

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3) OBC (Outward bills collection )

Definition of OBC

“There are some areas in Pakistan where Nift is not providing its fast

service so the cheques are sent through courier for clearing in that

areas ”

OBC is divided into two parts

a) When OBC is sent for clearing

b) When OBC is received for clearing

a) When OBC is sent for clearing

When the OBC is sent for the clearing first of all the cheques are

entered in the OBC register.Then the other instruments are maintain.

These instruments are mentioned below

b) When OBC is receives

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Documents required when the OBC sends for clearing

When the OBC is sent for clearing these instruments are required :

Inter Branch cleaning Bills Schedule ,the Debit and the Credit voucher .

Details of the documents

Inter Branch Clean Bills Schedule

In Inter Branch Clean Bills Schedule :stamp of the branch ,date , address of the

ABL branch where OBC sent ,amount in rupees are mentioned .In special

instructions portion bill no cheque no drawee (name of the bank) and the amount

in Rs is also mentioned .

Debit voucherIn Debit voucher the OBC charges are mentioned .

The minimum charges of OBC is Rs 50

Sometimes it depends upon the amount

For example if the amount of the OBC is Rs 100,000 OBC charges will

be deducted in this way.

100,000*.20/100=200

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This amount is transferred to the bank’s income account commission

Rs 75(postage charges) is also transferred to the bank’s income

account postage .So the total income of the bank from OBC is

Commission + Postage

Rs200+ Rs75=Rs275

So the Dr voucher is filled in this manner Dr transfer to the customer

account who wants to send the OBC .Contra to the Bank’s income

account . This method of deducting the charges are applied when OBC

is passed .When OBC is returned then Rs 275 are deducted.

Credit Voucher

Two Credit vouchers are maintained

In first credit voucher

Rs 200 is Cr Bank’s commission account and in contra account

account no of the customer is mentioned.

In second voucher

Rs 75 is Cr Bank’s postage account and in contra account

account no of the customer is mentioned .

Cheques Return

Sometimes the chequesthat are send for clearing are not passed due to many reasons .

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These are the reasons

Reasons of Return of cheques

Some times the cheques that are sent for local clearing or intercity

are returned (these cheques are not passed ).

Insufficient balance

If the balance is insufficient in drawee’s account, then the

cheque is returned .

Payment stopped by the drawer

Sometimes the drawer stops the payment due to many reasons

so the cheques are not passed .

Incomplete

Sometimes the customers don’t not fulfill all the requirement

and the things are incomplete so the cheques are not passed.

Drawer’s signature differs

The signatures are verified by the customer service manager

very carefully .Sometimes the signatures of the party do not

match with its original signature re .For this reason the cheques

are returned.

Alteration in date /figures/words requires full signature

Sometimes there is alteration in date due to this reason the

cheques are returned .

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Postdated

If the date that is mentioned on the cheque is one day after,

the cheque will not be not passed .

Amount in words and figure differs

If the amount in words and figures are not same then the

cheque is also returned .

Cheque should not contain extraneous matter

Only fulfil the requirements that are demanded in filling the

cheques. Do not mention any sort of unnecessary things.

Revenue stamp required

If the cheques are not properly stamped.

Acceptor/Drawer deceased

If the drawer is deceased the cheques are returned .

Clearing stamp required

If the clearing stamp is missing the cheques are returned .

• Account closed

If the account of the drawer is closed then the cheques are not

passed .

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• Crossed to two banks

If the cheques are crossed by two banks then the cheques are no passed

Procedure of Returning the ChequesSome documents are required for this purpose

Memorandum

• Add list

• Bundle cover : Clearing Return

a) Memorandum

Memorandum is also known as “ memo”. In this document first of all

branch stamp ,date .Cheque no of the return instrument ,account number

of the customer ,amount in ruppees ,reasons for return are also required .

b) Add list

If the cheques that are returned are more than one than add list is

made in which amount of the return cheques and their total amount is

mentioned .If there is only one cheque for return then add list is

not made .

Next instrument is divided into two categories

Bundle cover : Clearing Return

If the intercity is returned then Bundle Cover : Clearing Return (pink color ) is required

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Bundle Cover : Inter city Clearing Return

If the clearing is returned then the Bundle cover : Intercity Clearing

return (green color) is required .In this document date , Branch stamp ,

no of instruments returned ,total amount of returned instruments in

Rs is mentioned ,authorized signature of one officer is also required .

Staple all these instruments with the cheque that is returned.

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Customer Service

Department

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In Customer Service Department I have learnt that an employee is performing the

following main functions

• Slips Filling

• Online transaction services

• Filling of Call at deposit receipt and demand drafts

• Supervision

• Other important services provided by this department

1) Slips Filling

Some customers have current accounts in the bank and they want to deposit

cash or cheque in their accounts. For this purpose they fill the

current account deposit slips.

a) Current Account Deposit Slip

For filling current account deposit slip

• Date ,Month, Year is mentioned .

• Account number of the customer .

• Title of account(name of customer )

• Total amount in Rs .

• Amount in rupees (words ) is also mentioned .

• In the portion of Particulars

Cash has been written if the customers want to deposit cash .

If the customers want to deposit the cheque in that case

bank name , cheque number of the bank are also written.

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filling the counter slip in the same manner.

b) PLS Saving Account Deposit slip

Some customers have saving accounts in the bank and they want

to deposit cash or cheque in their accounts. So they fill the PLS

Savings Account Deposit slip. This slip is filled in the same

manner as current account deposit slip is filled.

2) Online Transaction Services

Sometimes the customers want to send the amount to their parties account which

are in different cities through very fast service known as Online Service

(computerize system ) .For this purpose the remote branch code is very necessary

where the amount isto be sent. The thing that is much important is that the remote

branch where the amount is sent should also be ABL branch . The amount can’t

be transferred to other banks through Online Services.

For Online Transaction Services online inter branch transaction

slip is filled

Information required for filling the online inter branch transaction slip

Applicant name is required

It mean the name of the customer who wants to transfer the amount

through online .

ID card number

The ID card number of the customer is also required who wants to

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transfer the amount .

Remote Title

In this head mention the name of the party(or firm) whose account

has been credited .Remote account number is also required for online

transaction.

Remote Branch

The branch where the customer wants to transfer the amount and also

mention the code of that branch, total amount in words as well as in

figures are also mentioned.

Types of Instruments

There are three types of instruments issued by the bank on the demand of the

customers.

• Demand Draft

• Call at deposit receipt

• Payment Order

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a) Demand Draft

Definition

“Demand draft means the instrument that the bank has issued to the

customer on their demand for out of city. “

Documents required for Demand Draft

i. Demand draft slip

ii. Demand draft block

iii. Demand draft register

i) Information required for filling the Demand Draft Slip

First step is to fill the demand draft slip in which

o DD number

o Total amount of the draft

o In whose favor

o Branch address as well as code is also mentioned .

ii) Information Required for Filling the Demand Draft Block

o Total amount in words (rupees )

o Total amount in Rs(figures)

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o Mention the name of the party in whose favor the draft is filled.

o Name and branch( code) of the city where draft is sent .

For example if the customer is filling the draft in favor of a

party which is in Lahore , the bank mentions the address of its branch

which is in Lahore and also mentions its code. Both these documents

are signed by two authorized officers of the bank.

iii) Demand Draft Register

All the particulars about the draft must also be entered in the Demand

Draft Register for banks own record .

b) Call at Deposit Receipt

Definition

“Call at deposit receipt is also an instrument which is issued by the bank

on the demand of the customer for within city “.

Documents required for Call at deposit receipt

i. Credit transfer voucher

ii. Call at deposit receipt block

iii. Call and deposit register

i) Credit transfer voucher

For the call at deposit receipt first of all credit transfer voucher is

maintained in which amount of the CDR,as well as the CDR number

and mention the name of the party in whose favor the CDR is

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maintained .

ii) Information required for the Call at Deposit Receipt block

Date

o Amount in words

o Amount in Rs (figures)

o Name of the person in whose favor the CDR is being issued .

o Name of the customer on whose account the CDR is being issued.

iii) Call at deposit receipt Register

All the particulars about the Call at deposit must also be entered in the

Call at deposit receipt Register for banks own record .

Payment order

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Other services provided by this department

The customer service manager does majority of his work on the

computer .On the computer screen some important heads are defined .

Basically these heads are the important functions performed by the

manager.Specific Number is assigned to these important functions .

1) Account Inquiry

2) Cash Transactions

3) Transfer transaction (XFR)

4) Account Statement

5) Supervision

6) Customer Status

When manager wants to enter any of the above- mentioned head he only

enters the number .

1) Account inquiry

If the account holder wants to know about the total balance in his/her account, customer service manager tells him/her about the total

balance, after checking from the computer .By entering the account

number of the account holder .The screen will display the

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Name of the account holder .

Status of the accountholder(active or inactive).

Total balance of the account holder

Cheque books leaves

It is important to tell the total balance to that customer who hold the

account and not to disclose this information to any other person because

this information is very confidential.

2) Cash Transaction

All the cash transactions are done under this head .For example When

the customer deposits the cash in his account ,first of all the posting

is done and the posting department marks the document number and the

supervision number on the voucher .The customer service manager

enters the document number in the computer. The computer will display

the account number and name of the person and customer service

manage will credit his account with the amount that is mentioned on

the voucher .Then computer will inquire you about the supervision

number .The manager enters the supervision number. After entering the

supervision number the computer will again inquire about another

formality .The manager enters “y” (yes) and thus the process of cash

transaction is complete.

3) Transfer transaction(XFR)

When the customer service manager has done the transfer transactions

on the demand of the customer then he uses this head known as tranfer

transaction (XFR).

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4) Customer Account Statement

Sometimes the customer wants to know about the overall information

about his/her account datewise.For this purpose they want the account

statement of their account to know about how many amount they have

withdrawn the manager enter the date from the account and how many

amount they have deposited in their account.

The manager enters the date (from which ) the customer wants to get

the statement and enters his account number .It is obligatory for the

bank to provide the account statement to the customer after every

six months .

But if the customer wants this statement before six months

the bank will charge Rs 50 .This amount is sent to the bank income account .

5) Supervision

For supervision the customer service manager enter the document

number then the computer will display the name ,aaccount no of the

account holder. Then the Cr the account of the account holder then

manager enter the supervision number then the supervision is done.

6) Status Classification

Status classification of customer account

Active Status

The manager also tell the accountholder about their current

status .Sometimes the status of the accountholder is active. It

means that the customer is dealing with the bank and doing

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transactions regularly .

Dormant Account

Sometimes the status of the account-holder is inactive it

means the customer is not dealing with the bank for last six

months. So the customer account is “dormant or inactive

account “

Dr &Cr block

Sometimes the customer intimates the banker to block

his(Dr/Cr) .Sometimes the customer has lost his cheque and

he fears that somebody may get his cheque passed

illegally .For this purpose Dr block is used .

Deceased Account

If the banker gets information about the death of a person

who has an account in the bank, such account is called

deceased account .

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41

Cash Department

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Although all the departments of the bank are important but this

department of the bank is very important .The customers and other

public are linked with this department .In this department I have learnt about

following main functions :

a) Bill collection

b) Passing of cheques

c) Debit and Credit Register maintenance

a) Bills Collection

Although all the departments of the bank are important but this

department of the bank is very integral. The customers and other

public are linked with this department because this department collect

consumer bills .

Role of Cashier in collecting bills

I have learnt the cashier collect the bills from the customer and carefully

checks the due date of the bill and the amount of the bill..If the bills are

collected on due date then well and good If the cashier collects the bills

after due date then the cashier is fined.

The amount of the bills is entered in the register .The amount

of the bills is also entered in the computer . The amount that is

entered in the register must match with the amount that is entered

in the computer.

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b) Passing Of Cheques

If the customers wants his cheque to be enchased pass .The cashier

enters the account number of the customer and Dr the number of the

cheque, he also verifies the signature of the customer . If the signature

of customer is verified and there is sufficient balance in the account

then the cheque is passed and the customer collect the amount (cash)

that is written on the cheque .

If the customer wants to deposit cash in his account then she/he first of all fills

the slip and signs on the slip . The authorized officer verifies customer ‘s

signatures and also signs on the slip . Then the cashier collects the amount from

the customer and Cr the customer’s account .

c) Payment and Receipt Register

In the (Dr) payment register the cashier writes the amounts of those cheques

that are enchased by the customers, account number and the cheque number .

In the receipt register the cashier writes all the amounts that are deposited by the

customers .He adds all this amount in the previous cash in hand and deducts

today’s payment Then he will get the final amount , if this amount is greater

than Rs 500000 then the branch send this amount to its main branch otherwise it

retain it .

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44

General Bank Department

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d) Particulars of Account

In this head mention the

Title of account

It means to mention the name of the customer who wants to open the

account .

Initial Deposit

In this head mention the initial amount which the customer wants to

deposit in his account .

NIC/passport No

In this head mention the NIC /Passport No of the customer which is

necessary .

Occupation /Business

Mention the business or profession of the customer who wants to

open the account .

•

Residential Address .Mention the complete address of the customer .

National Tax No

If the customer has the national tax no also mention it.

• Contact No

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Mention the new customer’s telephone number(office &residence ) ,

mobile number and email address .

e) In Case of Minor

Mention the date of birth of the minor .His/Her date of attaining

maturity is also mentioned .Name of the guardian is mentioned .

f) Operating Instructions

In this head mention the instructions about the account operation .

If the customer wants to open the account singly then he/she will choose

the option the account singly .In this case mention that single person will

operate the account .If the joint account will open then in this case

mention the option either or survivor .

g) Zakat deduction

If the customer wants to pay the zakat then choose the option “yes”.

If the customer want that the zakat should not deducated from his/her

account then an affidavit /declaration will be submitted to

the manager.

h) Address of contact person /Next of kin

Name and address and telephone number of the kin is

required .

i) Special instructions

If the customer wants to mention the special instructions about the

account operation and other things then fill this head .

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j) Other bank services to be used

If the customer wants to use other services of the bank mentionthem.

k) Introducer

In this head the information about the introducer is required .Introducer is

the person who introduces the new customer .It is necessary for the introducer

that he has the account in that bank.

l) Nature of account

Nature of the account is mentioned Following are the nature of

accounts.

• Individual

• Partnership (registered/unregistered)

• Autonomous Bodies

• Joint Stock Company (public/private)

• Non trading organization /clubs /Associations

• Others .

The customer will choose any one from the above mentioned options .

m) Personal information

In this head the personal information of the customer is mentioned.

Name of the persons (if more than one) are mentioned who are authorized

to operate the account .

.

Cheque book issued head is not filled because the cheque books are provided

to the customer after one week.

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b) Know your customer document

This document is also necessary for the opening of account .This document is

divide into three sections .

Section A

Section B

Section C

A section

a) Account Number

In this head mention the account number of the customer.

b) Title of Account

Mention here the name and CNIC .

c) Addresses

In this head the complete residential address of the customer is

mentioned .Contact no is mentioned in the telephones and the

emails head .

d) Purpose of opening the account

In this head purpose of opening the account is also mentioned Personal Saving

Business

Others (Specify)

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e) Occupation

In this head mention the occupation of the person .

f) Source of Income

In this head mention the source of income of the customer

Salary

Family Business

Investments

Rentals

Agriculture

Professional

Inheritance and others .

The customer will choose any one option according to his/her source of

income

g) Monthly Income

In this head four options are given ,the customer will select any one

option according to his /her income .

Section B

In this section mention the nature of the business /profession in detail .

Mention the geographical areas of the business

Section C

Mention the major transaction of the customer .Some options are given

the customer will choose any one

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Cash

Online

Clearing

D.D.issuance

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53

Lockers

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Lockers means the safe that are provided to the customers to keep their jewellery

,important documents in this safe .I have learnt about the types ,its initial deposits and

the important documents required for the lockers .

Allied Bank Lockers are available in three different sizes Small, medium

and large on a yearly fee. Locker holders need not have an account in the bank.

Types Of Lockers

There are three types of lockers

Small

Medium

Large

a) Small lockers

If the customer has a small locker in ABL bank .He has to pay

Rs 1500 as annual fee .The customer has to deposit Rs 3000 as

security in addition.

b) Medium Lockers

If the customer has a medium size locker ,he has to pay Rs 2000

as annual rent .The customer has to deposit Rs 3000 as security in

addition.

c) Large Lockers

If the customer wants to rent a large size locker,he has to payRs4000 as annual rent . .The customer has to deposit Rs 4000 as security

in addition.

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If the customer loses the key of the locker then he/she has to pay

Rs 2000 minimum. The depositors of current and saving accounts

will be entitled one rent free locker as detailed below .

Balance of Rs 1000(M) or above one small locker free

Balance of Rs 2500(M)or above medium locker free

Balance of Rs 5000 (M) or above one large locker free

Documents required for the Lockers

a) Memorandum of Letting of Safe

b) Letter of Continuity

c) Form No 337

a) Memorandum of Letting of Safe

In this document the Company’s safe no is mentioned

Class of the lockers are also mentioned

o C for small lockers

o Bfor medium lockers

o A for Large lockers

Name of the lessee is also mentioned.

b) Letter of Continuity

Date ,annual rent in words and in figures are mentioned in this

document.

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c) Form No 337

In this form the important information required is Name of the lessee ,locker No

class ,key no special instructions if any will be mentioned ,signature of the bank

officer is also required for this document .

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Credit Department

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Credit department is providing the credit to the parties. This department providing the

credit only for the business purpose .The parties who want to expand their business as

well as to purchase the heavy machinery for their business the bank will provide them

the credit .

The parties will pay the principal amount as well as the markup to the bank

.Sometimes the bank will also provide the credit against the mortgage or the pledge of

the assets(stocks) .After visiting this department I have full knowledge of credit

documents .

Documents required for the credit

• Exposure Summary

• Sanction Advice

• Group Facility Summary

• Basic Information Report

• Credit Memorandum

• Account profitiability Report

• Copy of account opening form

• Copy of last sanction advice and subsequent amendment ,if any

• Form 151_R Loan Application

Basic fact sheet

• Resolution of Board of directors in case of LTD.CO

• Memorandum &Articles of association in case of LTD.CO

• Balance sheet along with noted of auditors

• Cash flow statement

• Audit Report &compliance there to

• Valuation report not older then three years

• Forced sale value certificate

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• Stock report

• Legal opinion

• Other property documents

• Detail of security

• Assets declaration form of borrower

• Account statement

1) Small Exposures (Credit Application)

In this document the important information required is mentioned below

a) Exposure Summary

b) Obligor Tenor Profile (Rs million)

c) Stability Criteria

a) Exposure Summary

This head is again subdivided in to the following parts

1) Date of review

It means the date when the party wants to get the credit.

2) Next expiry date

It means the expiry date of the current credit facility

of the party.

3) Date of last Annual approval

It means the date of approval of the last credit

facility (Previous credit facility approval date) .

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4) Last expiry date

Mention the expiry date of last credit facility.

5) Extending unit & control unit

Mention the name of the unit(institution) which provides the credit

facility to the party as well as the control unit.

6) Group

Mention the name of the group who wants to get the

credit from the bank .

7) CM

Also mention the name of the manager who provides the credit

facility to the party.

8) Obligor Relationship Since

Mention the duration of the relationship of the bank with the obligor .

For how any months and years the banker has the relationship with

the obligor.

b) Obligor Tenor profile (Rs million)

In the next category of this document the following things are

mentioned .

1) Obligor NameIn this head mentioned the name of the party (obligor ) who wants

to get the credit facility .

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2) Obligor Tenor Profile

In this head mentioned the duration of the obligor .Either he wants

to get the credit for 1 year ,2 years,2_3years,3_5years or more

than 5 years .

3) Obligor Classified Exposure (RsMillion)

In this head mentioned the obligor status .It is further classified

into four types .

a) W.list

It means the obligor is under observation .He is not

financially strong.

b) SS(Sub Standard)

It means that the obligor business is not good , business is

sustaining loss.

c) DF(Doubtful)

The bank has doubt that the obligor is not in the position

to pay the principal amount as well as the markup .

d) Loss

The obligor is sustaining heavy loss .

c) Stability Criteria In this head mention the party reputation .Whether they fulfilled

their terms and conditions ,agreements or breached the agreements.

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2) Sanction Advice

When the manager has done all the formalities of collecting and

filling the credit documents the manager then sends the credit

proposal to the Credit Administration Department(CAD) .This

department sends all these documents to the regional head office of

the branch .This regional head office then sends all these documents

to the Credit Relationship(CRR), the head of this group overviews the

credit documents of the obligor carefully to analyze either this

party has the potential to repay the principal amount as well as the

mark up and also analyzes about the goodwill of the obligor and its

business .If all the things are fulfilled and fine then this group

passes the credit proposal of the obligor and intimates the regional

head of the bank .This department further intimates the Credit

Administration Department , which will also make the advice

known as the sanction advice .This advice is also the important

document of the credit proposal.

Important things mentioned in this document area) Obligor Name

In this head mentioned the name of the obligor e.g XYZ Flour Mills .

b) Business segment

In this head mentioned the segment of the business e.g SME.

c) Extending unitMentioned the name of the bank who provide the credit facility to the obligor .

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d) NTN

Mentioned the National Tax Number of the obligor (if any).

e) Industry type

Mention the industry type of the obligor business e.g flour mills

tobacco products, textile industry).

f) Legal Entity

It means the entity of the business (partnership ,sole

trader ,company )

g) Expiry date of the credit.

Mention the expiry date of the credit facility .For example if the

party gets the loan on 4thApril ,2007 .and the expiry of the credit is

31stMarch,2008 .

h) Facility

It mean the obligor will pay the mark up from the running finance of

the business .

i) Existing

It indicates the total amount of the credit that the obligor gets from

the bank .e.g Rs3000000, etc.

j) Proposed

It indicates the proposed amount of the credit .

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k) Net inc/dec

Here mention the increase /decrease in the existing and the proposed

amounts.

l) Days Overdue

Here mention how many days the obligor has delayed the amount of credit.

m) Security Description

In this head mention the security offered by the party.

For example if the party gets the credit against the hypothetication of

stocks ,and/or the mortgage of the property .

i) Hypothetication of stocks

In this head the bank will calculate how much

stocks the party will have for getting the loan .The ratio of the stock

75% the bank will retain 25%stock will retain the party. Suppose the

party gets the credit of Rs 3000000.Calculate in this way

75/100*3000000+3000000=5250000.

This value of stock will be kept by the party in their go down

against the credit .

ii) Property as Collateral

For the collateral of the property calculate in this way

25/100*3000000+3000000=375000

This value of the property will be kept by the bank as a colleteral.

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The important information about the property is also mentioned .

For example its marlas,where the property is situated, who owns

the property,who evaluated the value of the property ,date of

inspection of property, market value ,forced value of property is

also required .

3) Group Facility Summary

In this document mention the obligor name ,obligor code,

extending unit, industry type, proposed ,existing limits, fund based

expiry date of the credit

4) Basic Information Sheet

In this head mention the personal information of the obligor .e.g

Name,Adress&Tel# Date of

Establishme

nt

Busines

s

Segmen

t

Legal

Entity

Obligor

Relationshi

p Since

Date of

review

XYZ Mills Ratta

Road,GRW.055_39456

78

01.02.1999 SME Partnershi

p

18.10.1999 14.04.0

7

Also mention the obligor’s main products information ,its production

capacity, machinery make, model ,capacity utilization ,reputation and

quality of products.

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Mention the name of the shareholders their net worth

b) Share holders/partners

Director/Partner’s

Name

Shareholding

%

Guarantor

(Y/N)

Net

Worth

Shareholders(Other

than Directors)

ABC 33.33% Y 26.863(M) None

DEF 33.33% Y 8.334(M) None

GHI 33.33% Y 10.344(M) None

Total 100 Y

c) Management

66

Products Flour ,Maida ,Suji

Production Capacity 1250Bags per 24 HoursMachinery Make &Model Local imported

Capacity Utilization 100%

Reputation and Quality of Products They enjoy good market reputation and

believe to deal in quality products

Who are the key suppliers of the

company ‘s raw material

Food department &farmers are the main

suppliers.

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Name of the Parners

In this head mentioned the name of the partners who owned the

business.

Position

Mention the position of the partners .

Contact No

Mentioned the mobile no ,and other contact no of the partners .

o Remarks (Age Experience ,Qualification)

Mentioned the age as well as the experience of all the

partners. These information is also mentioned in this document .

d) Marketing reputation

In this head mentioned the name of the persons who knows the party

and dealing with the parties and ask their comments about the obligor .

5) Credit Memorandum

67

S.# Name Relationship

with obligor

Remarks

Person Company/bank

1 SFS Company Competitor Very Good Market Reputation

2 MSF Supplier Farmer Very Good Market Reputation

3 BSD Dealer Friend Very Good Market Reputation

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a) Purpose

In this head mentioned the purpose of the proposed facilities .

Discuss the structure of the purposed facilities in relation to the

obligor’s need. To meet with increasing financial needs of working

capital fo smooth running and further promotion of business .

b) Ways Out Analysis

In this head indicate ,for each facility ,the primary and secondary

(if applicable) way out .For example

c) Three years exposure trend

Mentioned how many total exposure to the obligor has changed

over the last 3 years .

d) Management Assessment

Provide the information who make the decision about the firms .

e) Financial Indicators

68

Facility Ways out Ways out Comments

Primary Secondary

Running finance Realization /

Deposit of

sale proceeds

of

hypothecation

stocks

Realization

of sale

proceeds of

mortgage

property

The obligor is running a

good remunerative and

progressive business and

partners possess sound

financial means

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the credit ,date of expiry .

Facilities enjoyed by sister concerns Form ABL

In this head mentioned the name of the branch as well as

the name of the concern ,amount of limit ,date of expiry

particulars of securities with present value ,overdues .

Limit requested for fresh sanction /renewal /enhancement

In this head mentioned the existing amount of the credit ,

particulars of securities offered with present value and

encumbrances if any .

Name of the guarantors

Name of the guarantors are also mentioned .

Details of immovable and moveable properties owned by the

borrowers /Guarantors

Also mentioned the detail of borrower moveable, immoveable

properties.

Business Committed

In this head mentioned the exports ,Imports, Collection remittances.

10) Borrower’s Basic Fact Sheet

In this document mentioned the address of the business place ,detail of the

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directors name of the partners ,contact number of the partners ,shareholding

amount %of shareholding ,exective director /partners ,name addresses ,

phone# and other important information is required .

11) Resolution of board of directors in case of LTD Co

In case of company the board of directors resolution is also

mentioned .

12) Memorandum &Articles of Association in case of LTD Co

In case of company the memorandum & articles in

is also mentioned.

13) Balance sheet along its noted of auditors

In this document mentioned the balance sheet of the business noted

of auditors.

14) Cash flow statement

In this mentioned about the cash statement of the business .

15) CIB report no older than three months

In this head mentioned the CIB report no older than three months .

16) Audit report and its compliance there to

Provide the banker audit report and its compliance there to.

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17) Valuation report not older than three years

Valuation report of the property is also mentioned that is not older

than three years.

18) Forced sale value certificate

Forced sale value certificate is also provide to the banker .

19) Legal opinion

Legal opinion about the property and other assets of the

business is required .

20) Other property documents as per legal opinion in case of fresh

property

Other property documents are also required .

21) Detail of security

Detail of the security is also required .

22) Assets declaration form of borrower

Net worth of the borrower’s are also mentioned on individual

basis.

23) Account Statement

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Account statement of the business is also mentioned.

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74

SWOT ANALYSIS

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Internal Analysis

StrengthsWeaknesses

Opportunities Threats

External Analysis

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Strengths of ABL

• Fast Service

• Providing the staff comfortable environment

• Experienced Staff

• Satisfied their customers .

Weaknesses of ABL

• Not very qualified staff

• Shortage of Staff

• Not providing good quality computers to their staff

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Opportunities of ABL

• ABL availing the opportunity of lunching new schemes

• Providing good return on the principal amount

• ABL branch getting the first position in collecting deposits

Threats of ABL• Other banks providing good quality computers to their staff that is threat for

the ABL.

• Other banks have no shortage of staff and they provide fast service to their

customers as compared to ABL

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79

Financial ANALYSIS

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Ratios specific for bank

The year under consideration of 2005 and 2006.The ratios explain under this section are

as followings

• Earning assets to total assets

• Return on earning assets

• Net margin to earning assets

• Loans loss coverage

• Loan to deposits

• Deposit time capital

Earning assets to total assets

Year under consideration 2005 vs. 2006

Items include

Balance with other banks,

Lending to financial institutions,

Investment,

Advance,

Other assets,

Operating fixed assets,

• Deferred assets.

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This ratio explains who will a bank put its assets into work. Normally higher

performance bank have high ratio and vice versa.

Earning assets to total assets = Earning assets / total assets

2006 2005 %change

84% 86% No change

Comments

The bank most important assets are earning assets (lending to other institution, loans,

investments) etc. bank efficiency depends upon the worth & volume of the earning in

total assets. This ratio shows the performance of the bank that shows how well bank

puts its assets to earn high rate of profit. The result of this ratio shows the same results

in both years .their is a slide difference that is negligible. Only the balance to other

banks decreases with percentage of 48 % as compare the 2005 and 2006. All other

earning assets increase that is the

• Lending to financial institutions increase by 229.73%

• Investments increase by 4.5%

• Advances increase by 29%

• Total assets increase by 30.8%

Those show the performance of the bank .the bank utilizes their assets in proper

way and earning the profit. Because the only the minimum variation in the ratio.

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Return on earning assets


Items include

• Balance with other banks

• Lending to financial institutions,

• Investment

• Advance

• Net profit before tax

• It is the measure of profitability of any bank and quality of earning assets.

Return on earning assets = Net income before tax/earning assets

2006 2005 %change

3.1% 2.9% +ve

Comment

This ratio explains the control of management over the spread of interest income to

interest expenses. Higher ratio in 2006 indicates the controllability of management over

the interest income. In 2006 interest income is higher then 2005.

It is also the measure of profitability of any bank and quality of earning assets. The

ratio is higher in 2006 as compare to 2005. That increase occur due to major change in

markup that is 33% and the mark up increase because the advance of the bank increasethat is 29%.that show the bank have the more earning assets and the more earning

assets show the more profitability of the bank.

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Net margin to earning assets


Items include

• Balance with other banks

• Lending to financial institutions,

• Investment

• Advance

• Net margin

This ratio also related to profitability and also shows the control of bank over the

spread of interest income to interest expense.

Net margin to earning assets =net margin / earning Assets

2006 2005 %change

3.376% 1.843% +ve

Comments

This ratio explains the profitability pattern of the bank because the major earning of

bank and the expanse both are the mark up. The results of the 2006 shows that bank

properly control the spread of its revenue to its expense. The interest earned increase in

2005 33.35 % that show the bank performing the good as compare to 2005.that also

show the bank gives more loans that are recovered with interest .the interest expense

also increase in 2006 with 235.51%.but it have no more effect because the earning of the bank is also increase as compare to the expense.

Loans loss coverage

Year under -consideration 2005 vs. 2006

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Items include

• Provision against loans and advances

• Bad debts written off directly

• Pre tax income

.This ratio explain the capacity of the bank to cover its loan loss through its yearly

income higher the ratio better the result. This also explains the level of protection of all

depositors.

Who are involved in funds of bank or prospectively wants to involve in the funds of

bank. If we have more then one ratio answer it shows we can recover over net charges

off

• Quality of loan

• Efficiency of management

Loans loss coverage = Pre tax income/net charges off

2006 2005 %change

925.80% 841.53% +ve

Comments

The ratio provides the security to the deposit about the coverage of loss. Higher the

ratio indicates the better management of the bank and vice versa. Analysis of this ratio

show the bank is secure the bad debts of the bank is very low as compare to 2005.The

% age decrease in the bad debts is 14.9% that show the performance of the bank that

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they have the good dealing with customer and reduce the bad debts that is plus point for

bank. And the income before tax is increase in 2006 as compare to the 2005 that is

37.75%.that all figure show the good performance of the bank.

Loan to deposits


Items included

• Lending to financial institutions

• Advances

• Deposits and other accounts

Loan to deposits = Advances / deposits

Comments

This ratio related to assets to liability ratio because the major assets of the bank

involved in loans and major liability in deposits. Higher the answer shows the bank

strength against the risk.

The ratio is higher in 2006 as compare to 2005.this ratio act as the debt to coverage

ratio so when we see in this context then it is not good because some time it is difficult

85

2006 2005 %change

69% 72% +ve

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ratio is increase in 2006 as compare to 2005. we also take the percentage change in the

deposits and equity then that show that they both have the increase trend in 2006 as

compare to 2005.in deposit the %age increase is 27%.that show that have the more

return because when they invest that money in other financial institution then that give

more return and when see the equity then that also have increase trend that with %age

change is 25.67%.that show the bank have more margin of safety in 2006 as compare

to 2005.but when see the over all ratio trend the equity is more in 2006 as 2005.

. It show the capital structuring of bank high deposit

ratio in 2006 reflect more strength than 2005. High equity indicate margin of safety

available to the investor.

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88

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89

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90

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92

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93

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94

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95

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96

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