INTERNSHIP REPORT ON

Allied BANK of PAKISTAN

Internship Report submitted to the Faculty of Management &

Administrative Sciences in Partial Fulfillment of the Requirements for
the Degree of Master of Business Administration.

Program & Session:

Master of Business Administration

UNIVERSITY OF GUJRAT
Date of Submission
15/9/2013
Name of Program Coordinator
Signature of Program Coordinator_________________

ACKNOWLEDGEMENTS
Feeling grateful or appreciative of someone or something in your life actually
attracts more of the things that you appreciate and value in to your life.
Northrup Christiane
First of all I am indebted to the Lord of our life & of everything in the universe for
His help in the project. The task was impossible without Almighty Allahs help and
concurrence. I am also thankful to my Parents for their tiresome efforts in
bringing us to this stage.
I wish to express my profound gratitude & sincerest appreciation to the respected
branch manager, Mr. Mateen Dar for his persistent guidance, constructive
criticism, friendly discussions & continuous encouragement throughout the
design phase, which gave me a kind of enthusiastic feelings towards the
accomplishment of this report.

I am also grateful to the Allied Bank of Pakistan Ali Pur Chatha Branch number
0235 Gujranwala as they have been really supportive and co-operative during my
internship which enabled me to complete this report.

TABLE OF CONTENTS

ACKNOWLEDGEMENTS............................................................................................................................
EWECUTIVE SUMMARY:...........................................................................................................................
1.1

PART I (INTRODUCTION).......................................................................................................
1.1

1.2

Objectives of studying the Organiation.......................................................................................5

OVERVIEW OF ORGANIZATION...........................................................................................
1.2.1Brief History..................................................................Error: Reference source not found
1.2.2Nature of the Organiation................................................................................................11
1.2.3Business Volume............................................................................................................12
1.2.3.1 Rewards & Honors..........................................................................................15
1.2.4Product/Service Lines.....................................................................................................17
1.2.5PESTL Analysis..............................................................................................................18
1.2.6Contribution to Economic Development.........................................................................20

1.3

ORGANIZATIONAL STRUCTURE........................................................................................
1.3.1Organizational Hierarchy Chart......................................................................................21
1.2.2Number of employees.....................................................................................................22
1.2.3Main Offices.................................................................................................................... 22
1.3.4Introduction of all Departments.......................................................................................25
1.3.5Comments on Organizational Structure..........................................................................32

1.4

PART II (INTERNEE WORK)

...............................................................................................

1.4.1 Branch Introduction.........................................................................................................34

1.4.2Branch Hierarchy.............................................................................................................35
1.4.2.1 Detail of Supervisors................................................................................................36
1.4.3 Weekly Timetables......................................................................................................37-47
1.4.4Detailed description of activities performed......................................................................47
1.4.5Summary of Learning.......................................................................................................67

2.

CONCLUSIONS OF THE REPORT...........................................................................................

2.1 Summary of key conclusions..............................................................................................59
2.2 General observations about Banking sector.......................................................................60
2.3 SWOT Analysis ..................................................................................................................62

3.

RECOMMENDATIONS..............................................................................................................

4.

REFERENCES..........................................................................................................................

Executive Summary:
I chose Allied Bank of Pakistan for my internship after careful consideration as it
is the leading commercial bank of Pakistan.
This is the age of specialization; every person must be capable in his/her
particular field. Some practical experience is necessary to enter the field because
only education given in the universities is not enough to compete with the world
wide changing situation. The field work is difficult and complicated. This is a good
reason why the students of master administration are being given a fair chance
to get the practical area in which students have to enter after completing
education.
Internship is a vital part of Master of Business Administration program. This
report is a result of six week practice as internee at Allied Bank of Pakistan Ali
Pur Chatha Branch number 0235. Experience was full of knowledge regarding
various facets of banking sector. This report consists of practical experience,
which I attained during internship program.
At the commencement of internship at ALLIED BANK OF PAKISTAN ALI PUR
CHATHA BRANCH NUMBER 0235 GUJRANWALA, I was aware of what I am
going to learn and observe. People usually use to say that practical works is
quite different from books or what has been educated in colleges and

universities. In real life, one has to get in touch with public, and how to deal with
them, its not taught in colleges and not in books even. Its what you get through
practical work when you enter in market.
All the information in this report is based upon my observation, interviews and
practical involvement in different tasks during my internship at ALLIED BANK OF
PAKISTAN ALI PUR CHATHA BRANCH NUMBER 0235 GUJRANWALA

This report is being divided into twoparts:

First is introductory portion which introduces the reader with the aim, scope and
objective of choosing and studying ALLIED BANK OF PAKISTAN ALI PUR
CHATHA BRANCH NUMBER 0235 GUJRANWALA and then organizational
Structure, organizational hierarchy chart, how many employees work in the
organization, the location of the main offices of the organization. Introduction of
all departments of the organization is described.
Second part is related to my internee work and introduction of the branch where I
worked in, the detail of supervisors and branch departments is given. In the last,
observations

regarding

the

banking

sector, the

SWOT

analysis,

final

Recommendations & Suggestions are given to overcome loopholes& troubles

that are being faced by Allied Bank of Pakistan Ali Pur Chatha Branch number
0235 Gujranwala.

1.1

INTRODUCTION

Allied Bank of Pakistan is one of the largest commercial bank operating in

Pakistan. It has redefined its role and has moved from a public sector
organization into a modern commercial bank. The Bank's services are available
to individuals, corporate entities and government. While it continues to act as
trustee of public funds and as the agent to the State Bank of Pakistan (in places
where SBP does not have presence). It has diversified its business portfolio and
is today a major lead player in the debt equity market, corporate investment
banking, retail and consumer banking, agricultural financing, treasury services
and is showing growing interest in promoting and developing the country's small
and medium enterprises and at the same time fulfilling its social responsibilities,
as a corporate citizen.

1.1.1 Objectives of studying the Organization

The primary purpose of this study is to fulfill the requirements of the four
yearshonors degree in master of business administration. For this purpose each
student of this particular course was required to undertake training in a relevant
organization selected by them, for a period of 1 to 6 weeks.

The secondary purpose of this internship is to understand how the theoretical

knowledge can be applied to the practical situations and examine an
organizations financial issues and identification of its opportunities/ problems
and also suggestion of corrective measures. This internship is also very
necessary to gain confidence and become aware of the mechanism of an
organization. As an internee I want to achieve following objectives during my
internship and organization study:
i.
ii.

To familiarize with a business organization.

To familiarize with the different departments in the organization and

iii.

their functioning.
To enable myself to understand how the key business process are

iv.

carried out in organization.

To understand how information is used in an organization for decision

v.
vi.

making at various levels.

To relate theory with practice.
I was also keen to gain professional experience in an actual testing

vii.

environment.
I want to develop my skills in the application of theory to practical work

viii.

situations.
To develop

ix.
x.

my

attitude

conducive

to

effective

interpersonal

relationships.
To acquire good work habits and sense of responsibility.
To enhance my learning experience by application of fundamental
concepts previously learned.

xi.

To observe, analyze and interpret the relevant data competently and in

a useful manner.

xii.

To develop my interpersonal communication.

xiii.

I want to enhance my knowledge of the discipline of banking

administration.

1.2

OVERVIEW OF THE ORGANIZATION

1.2.1 Brief History

Allied Bank is bank is a Commercial bank in Pakistan. Allied Bank with its
registered offices in Karachi and Lahore is one of the largest bank within
the cpontry with over 800 branches connected to an online network. It was
first Muslim bank established in Pakistan before independence 1942 with
the name of Australasia Bank. It was Named as Allies Bank of Pakistan
from Australasia bank Limited in 1974, and Sarhad Bank ltd, Lahore
Commercial Bank Ltd and Pak Bank Ltd were also merged in it.

1.2.2 Nature of the organization

ALLIED BANK OF PAKISTAN ALI PUR CHATHA BRANCH NUMBER 0235
GUJRANWALA offers a commercial banking and interrelated services in Pakistan
as well as outside of Pakistan. ALLIED BANK OF PAKISTAN ALI PUR CHATHA
BRANCH NUMBER 0235 GUJRANWALA acts as an agent of the State Bank of
Pakistan where SBP does maintain its own branches. In those places it provides
all facilities of clearing house and other related, to commercial banks in that area.
In addition it is also an agent to the government and custodian of government
treasury and government transactions. It also acts as a trusty to the National
Investment Trust, a premier financial institution charged with the responsibility of
mobilizing small saving in the country.
Allied Bank of Pakistan Ali Pur Chatha Branch number 0235 Gujranwala provides
to its customers the following benefits; saving accounts, home financing,
personal loans, ATM and debit cards, financing facility for stock investors,
Internet based home remittance service, cash against gold, and personal
accident insurance these benefits is very useful for customers.

ALLIED BANK OF PAKISTAN ALI PUR CHATHA BRANCH NUMBER 0235

GUJRANWALA also offers Islamic banking services and provide international
banking trade services like letters of credit, trade financing, international
payments

and

collection

services,

structured

trade

finance,

document

presentation and payment services, pre and postshipment financing, bankto

bank reimbursements, documentary credits, import finance, shipping guarantees,
and cash management solutions.

1.2.3 BusinessVolume
Allied Bank of Pakistan is the largest commercial bank in Pakistan with total
asset size of PKR 1,014 billion 2011
at the end of 2011 accounting for nearly 14
percent of the industry's (all commercial banks) total asset base. It has become
Total Assets
1,035,025
the first ever bank of the country to cross the `One Trillion Rupee bench mark
Deposits
832,152
with more than 14413 employees and 1286 branch network across Pakistan and
Advances
477,507
23 overseas branches and representative offices in 10 countries.
Investments
301,324
Shareholders' Equity

103,762

Pre-Tax Profit

24,415

After-Tax Profit

17,563

Earnings per Share (PKR)

13.05

2010
Total Assets

944,583

Deposits

727,465

Advances

475,243

Investments

217,643

Shareholders' Equity
Pre-Tax Profit
After-Tax Profit
Earnings per Share (PKR)13.05

94,142
21,300
17,562

2009
Total Assets

817,758

Deposits

624,939

Advances

412,987

Investments

170,822

Shareholders' Equity

81,367

Pre-Tax Profit

23,001

After-Tax Profit

15,459

Earnings per Share (PKR)11.49

2008
Total Assets

635,133

Deposits

501,872

Advances

316,110

Investments

139,947

Shareholders' Equity

53,045

Pre-Tax Profit

26,311

After-Tax Profit
Earnings per Share (PKR)

17,022
12.65

2007
Total Assets

762,194

Deposits

591,907

Advances

340,319

Investments

211,146

Shareholders' Equity

69,271

Pre-Tax Profit

28,061

After-Tax Profit

19,034

Earnings per Share (PKR)

14.15

1.2.3.1 Awards and Achievements

2012

3rd Global Human Resource Excellence Award - 2012" administered by

Global Media Links in collaboration with Better Pakistan.

"Listed in top 1000 banks of the world for the year 2012" by the world
renowned The Banker magazine owned by the Financial Times Group,
London.

2011
2nd Global Human Resource Excellence Award - 2011" administered by
Global Media Links in collaboration with Better Pakistan.
Pakistan: Transaction of the Year Award - 2011, awarded by Islamic
Finance News, for two wind farm projects of 50MW each in which the
bank acted as international inter-creditor agent (for the Islamic
Development Bank, the Asian Development Bank and syndicates of local
banks).
Transaction of the Year Award - 2011, awarded by CFA Association of
Pakistan for the private placement and offer-for-sale of Engro Foods
Limited.
"Bank of the Year" awarded for the year 2011 by the world renowned "The
Banker" magazine owned by the Financial Times Group, London
"Top Corporate Finance House (Fixed Income) Award of the Year
2011", awarded by the "CFA Association of Pakistan".
Allied Bank of Pakistan Ali Pur Chatha Branch number 0235
Gujranwala Awarded Best Emerging Markets Bank 2011
Awarded By Global Finance Magazine

2010
Bank of the Year awarded for the year 2010 by the world renowned The
Banker magazine owned by the Financial Times Group, London
"Runner up of Corporate Finance House (Fixed Income) Award of the Year
2010", awarded by the "CFA Association Pakistan".

 ALLIED BANK OF PAKISTAN ALI PUR CHATHA BRANCH NUMBER

0235 GUJRANWALA is awarded President of Pakistan Trophy, a top slot
award by Federation of Pakistan Chambers of Commerce and Industry in
2010.
ALLIED BANK OF PAKISTAN ALI PUR CHATHA BRANCH NUMBER
0235 GUJRANWALA is awarded Prime Minister of Pakistan Trophy, a
top slot award by Lahore Chambers of Commerce and Industry in 2010
2009
Among the global leading banks, ALLIED BANK OF PAKISTAN is the only
Pakistani bank appearing in top 500 banks of the world in The
Banker magazine owned by the Financial Times Group, London
Bank of the Year awarded for the year 2008 by the world renowned The
Banker magazine owned by the Financial Times Group, London
2008
Worlds Best Foreign Exchange Bank 2008 awarded by worlds leading
financial journal Global Finance
2007
Stable AAA/A-1+ (Triple A/A-One Plus) rating (Standalone Basis) by JCRVIS (July 2007)
Best Return on Capital for 2006 amongst all Banks in Asia. - Banker
Magazine in July 2007

1.2.4 Product/Service Lines

Allied Bank of Pakistan Ali Pur Chatha Branch number 0235 Gujranwala is today
a progressive, efficient, and customer focused institution. It has developed a wide
range of consumer products, to enhance business and cater to the different
segments of society.
Products offered by ALLIED BANK OF PAKISTAN ALI PUR CHATHA BRANCH
NUMBER 0235 GUJRANWALA are:

Premium Aamdani
Premium Saver
Saibaan
Advance Salary
Cash Card
Investor Advantage
Cash n Gold
KisanTaqat
Kisan Dost
PakRemit
Protection Shield

ALLIED BANK OF PAKISTAN expand its range of products and services to

include Shariah Compliant Islamic Banking products, now available at their
dedicated Islamic Banking Branches at Karachi, Lahore and Peshawar.

Islamic Banking Deposit Scheme (Current deposit, PLS deposit scheme)

Murabaha
Ijarah (Leasing)
In addition to Shariah acceptable standard general banking services, following
services are also being offered at the Islamic Banking Branch:
Letter of Credit Facility
Handling of Remittances

Issuance of Bank Drafts and Pay Orders

Collection of Export Bills
Collection of Local Bills
Government Collections
Utility Bills Collection

Bank services include:

ALLIED BANK OF PAKISTAN Online
ALLIED BANK OF PAKISTAN ALI Helpline

1.2.5 PESTL Analysis

1.2.5.1

Political and legal environment:

Banks are strongly affected by the political and legal considerations. As the
political instability prevails with in the country it badly affects the working of the
bank. This also has its greatest influence on the profit of the bank and can be
result in reduction of profit. So to reduce the influence of political environment on
any business sector following rules must be applied
To protect banking companies from unfair competition.
To protect consumers from unfair business practices adopted by banking
companies
To protect the interest of the society from unbridled business behavior.

1.2.5.2

Economic trends:

As target of any bank is to maximize its profit and satisfied its customers.
Because of this target banking market requires better consumer market in
volume along with higher borrowing power.
This borrowing power depends on:

Consumer income.
Saving rates.
Consumption patrons.
Rates of interest.
Budget deficit.
Exchange rates.
Cost of living.
Inflation.

1.2.5.3

Socio-cultural environment:

A society is shaped by beliefs, norms and values. People in a society

consciously and unconsciously interact with themselves,others, organization,
society and nature. Following are the main factors which arise because of
change in socio-cultural environment:
Consciousness about services
Concern for environment
Improved customer relation
1.2.5.4

Technological factors:

Forces of technological advancement have played the most dramatic role in

shaping the lives of people. The rate of change of technology has greatly affected
the rate of growth of economy. New technology is creating deep rooted affects
which could be observed in long run. The improvement techniques involved in on

line banking. In brief PEST analysis affects the overall banking companies and
provides us the information about the external macro condition.

1.2.6 Role of ALLIED BANK OF PAKISTAN in Economic

Development
Banks play significant role in promoting the economic activities and economicdev
elopment of a country. Industry, agriculture, trade, commerce and many other ec
onomic activities are highly dependent on banks. Banks help in mobilization of
money. They also help in promoting the growth of internal resources for
development by attracting deposits into productive loan and investment. Banks
not only collects the savings of the people but also give loans for the
development of industry, trade and commerce. ALLIED BANK OF PAKISTAN has
been playing a major role in financing and developmental activities in Pakistan. It
helps in the growth of economy in all spheres of our national life. It has
contributed significantly to economic growth of the country and has served to
trade and industry in wide sphere of operations. The ALLIED BANK OF
PAKISTAN was the first bank to introduce scheme of credit to small borrowers
like farmers etc., for the promotion of agriculture. The bank advances liberal
credit for rural and agricultural development. Small short-term loans are given to
the farmers free of interest. These advances can be in the shape of fertilizers,
seeds and agricultural implements. The ALLIED BANK OF PAKISTAN is able to
attract large amount of deposits through its large number of branches all over the
country and thus is able to provide large amount of loans to different sectors. The
ALLIED BANK OF PAKISTAN ALI PUR CHATHA BRANCH NUMBER 0235
GUJRANWALA is also providing finances to small-scale industries for the period
up to five years; it has introduced the peoples credit facilities to the common

man at the large

andmore liberal scale than before. The main objective of this scheme is to make
acontribution toward building up of a developing nation. The ALLIED BANK OF
PAKISTAN ALI PUR CHATHA BRANCH NUMBER 0235 GUJRANWALA also
helps
to promotethe establishment of new companies by underwriting their shares. The
bank also contributes towards the earning of foreign exchange though its foreign
exchange business in Pakistan and abroad.

1.3

ORGANIZATIONAL STRUCTURE

1.3.1 Hierarchy chart of ALLIED BANK OF PAKISTAN ALI PUR

CHATHA BRANCH NUMBER 0235 GUJRANWALA

PRESIDENT

DIRECTORS / SEVPS

PROVINCIAL CHIEFS/SEVPS

REGIONAL CHIEF / EVP

ZONAL CHIEF / SVP

VICE PRESIDENT

ASSISTANT VICE PRESIDENT

OFFICE GRADE

GRADE
I

SPERVISORS

GRADE
II

FOREIGN EXCHANGE HEAD

1.3.2 Number of Employees

GRADE
III

OPERATIVE STAFF

There are currently 41413 qualified employees working in Allied Bank of Pakistan
which have always played a key role in the continuous success of the
organization in all fields.
The numbers of employees working in the ALLIED BANK OF PAKISTAN ALI
PUR CHATHA BRANCH NUMBER 0235 GUJRANWALA are sixteen along with
two MTOs which have different designation according to their qualifications.

1.3.3 Main Offices

The ALLIED BANK OF PAKISTAN head office is located in Karachi. Its branch
details are given below:

ISLAMIC BANKING BRANCHES

Karachi Branch
Hyderabad Branch
Lahore Branch
Faisalabad Branch
Rawalpindi Branch
Peshawar Branch
Muzafarabad (A.K.) Branch
Mir Pur (A.K.) Branch
OVERSEAS BRANCHES (23)

United States of America (2)

France (1)
Germany (1)
Bahrain (1)
Bangladesh (4)
Kingdom of Saudi Arabia (1)
Hong Kong (2)
Republic of Korea (1)
Japan (2)
Afghanistan (4)
Turkmenistan (1)
Kyrgyzstan (1)
Azerbaijan (1)

REPRESENTATIVE OFFICES
USA (Chicago)
Bahrain
France
Germany

Kingdom of Saudi Arabia

South Korea
China (Beijing)
Uzbekistan (Tashkent)
Turkmenistan
Kyrgyz Republic
Afghanistan
Azerbaijan
Bangladesh
ALLIED BANK OF PAKISTAN REGIONAL OFFICES (Extensive Local
Coverage)
Karachi (South)
Karachi (West)
Hyderabad
Larkana
Sukkur
Quetta
Gawadar
Lahore (Central)

Lahore (East)
Gujranwala
Sialkot
Faisalabad
Jhang
Sargodha
Multan
Bahawalpur
Dera Ghazi Khan
Sahiwal
Rawalpindi
Jhelum
Gujrat
Peshawar

Federal Capital Islamab

Mardan
Dera Ismail Khan

1.3.4 Departments of the Organization

There is a difference between the numbers of departments in different branches
of Allied Bank of Pakistan Ali Pur Chatha Branch number 0235 Gujranwala. The

main branch of Allied Bank of Pakistan Ali Pur Chatha Branch number 0235
Gujranwala has following departments
Clearing House Department
Remittance Department
Computer Department
Deposits Department
Credit Department
Account Opening Department
Cash Department
Government Department

I.

Credit Department

The credit department collects and files every available bit of information
concerning people or firms that borrow money. This material consists of financial
reports, press clippings, personal interviews, and statements of condition and, in
fact, every item that has even a remote bearing upon the standing of borrowers.
It requires technical training of a high order properly to classify and analyze this
data. The creditin charge, naturally, in selecting his customers knows that he may
be asked to extend credit. He first satisfies himself that the factors of character
and capacity are such as to justify confidence. This information is obtained from
personal knowledge of the borrower, and by information obtained through other
banks, through "the trade" and by agency reports. If all this information is
satisfactory, the capital factor is studied in the borrower's financial statement of

condition, which balance sheet should be taken off at regular intervals. It must
show a sufficiently "liquid" position to satisfy the banker that his loancan and will
be repaid when due.

i.

Clearing Department

As part of their daily business activity, banks receive cheques and other financial
instruments from their customers drawn on other banks, to be collected and
credited to their accounts. Similarly, banks receive cheques/instruments from
other banks, deposited by customers of the banks drawn on the customers of the
drawee banks. Therefore, the banks act as Collecting Banks when they send
cheques/instruments for collection and as paying Banks, when they receive
cheques/instruments for collection from other banks. Since each bank receive
and sends cheques/instruments for collection to and from an number of banks,
the process of settlement would clearly be very cumbersome and time
consuming if every cheques/instrument had to be sent by the collection bank to
each of the drawee banks or branch upon which different collection items are
drawn and to individually pay the proceeds to each of the bank sending
cheques/instrument in for collection. Therefore, the banks have evolved what is
called the Bankers Clearing arrangement.
The Clearing System enables cheques to be paid or cleared centrally and
settlement made for receivables and payables between the banks. The SBP coordinates clearing activity through its offices, called the Clearing Houses, set up
in big cities and towns. Where SBP does not maintain its own office, some other
bank, usually Allied Bank of Pakistan Ali Pur Chatha Branch number 0235
Gujranwala performs this function. But the clearing house facility is available
only for cheques/instruments drawn on banks situated within the same
city/clearing house area.

ii.

Remittance Department

The Remittance department deals with the transfer of money from one place to
another. Funds transfer facility or remittance of funds is one of the key functions
of the banks all over the world. Remittances through banking channels save time,
costs less and eliminate the risks involved in physical transportation of money
from one place to another. Allied Bank of Pakistan Ali Pur Chatha Branch number
0235 Gujranwala transfers money in the following ways.

Pay Order
Demand Draft
Mail Transfer
Telegraphic Transfer
Pay Slip
Call Deposit Receipt
Letter of Credit
TravelersCheque

The Job responsibilities & requirements of remittance department include:

Responsible for money transfers, issuance of pay-orders & drafts,
collection items, maintenance of cheque books & ATM cards and all
other counter specific products and services
Ensure highest level of customer service in a professional and
competent manner
Must ensure that the activities are carried out strictly in accordance
with the laid down procedures/processes, and SBP/Compliance
guidelines
Responsible for Cash, Clearing, Inland remittances including Demand
Drafts and Pay Orders
Ensure high standards of customer services within the assigned
turnaround time
Ensure compliance with SBP's regulations and internal controls

 Handling cash, clearing, local remittances, and other related activities

at branch level

iii.

Account Opening Department

The opening of an account is the establishment of banker-customer relationship.

This department performs the duty of opening accounts for customers. It also
issues checkbooks to customers. A person who wishes to open an account with
the bank has to fill an account opening form obtained from any branch of Allied
Bank of Pakistan Ali Pur Chatha Branch number 0235 Gujranwala. The bank
officer tactfully obtains information about character, integrity, responsibility,
occupation and the nature of business of the perspective customer. Any
individual, who has attained the age of majority and is of sound mind can open
and maintain his/her account. Two or more individuals may open an account
jointly. Similarly, business organizations such as sole proprietary concerns,
partnership firms, and limited liability companies as well as non-profit
organizations like clubs, trusts, societies, associations and NGOs etc., may open
their accounts. The documents required for Allied Bank of Pakistan Ali Pur
Chatha Branch number 0235 Gujranwalas Account opening are showed as
Annexed VII at the end of this report.
The following requirements are necessary for opening an account.
Identification of the new customer.
Ascertaining the genuineness of the stated occupation business of the
customer.
Determining the correct residential and permanent address.
Completion of all relevant columns of the Account opening form.
Proper completion of documentation.

Functions of Account Opening Department

Providing account opening form according to the customer's
requirements,
Guide the customer about the requirements of the account opening

and form filling,

Check the forms whether they are correctly completed or not,
Preparing checklist,
Stamping on the form,
Maintaining account opening register,
Pasting of forms in register after release from general banking in

charge,
Issuance of cheque books,
Issuance of accounts maintenance certificate,
Closure of account
Verification of signature in case of cheque presented before releasing
of account opening from SS card is not yet scanned

iv.

Cash Department

All physical movement of cash in the bank is made through the cash department.
As bank is borrowing and lending institution, therefore cash is the top most
priority of Bank. Another aspect is that cash department is for the security
purpose, security in a sense that there should be no embezzlement of funds or in
money leaded to bank by any party or person. The efficiency of bank is also
related to this department the more efficient the bank is the stronger and busy is
the cash department. Cash department perform following functions
Cash department owes its important to the fact that it is a major point of contract
between the bank and the customer, the banks most valued relationships. This
department is the showcase of the bank and conveys the first impressions about
the banks commitment to professionalism in its systems and procedures and to

courteous and efficient customer service. Normally cash department performs

following functions

Collection of funds
Acceptance of deposits
Collection of utility bills
Payment of checks
Remittances
Act according to any standing instructions
Transfer of funds from one account to another
Verification of signatures
Posting
Handling of Prize bond

The two main activities of cash department are as follows:

Deposit cash in customers a/c
Make payments from customers a/c

v.

Deposits Department

The primary function of Allied Bank of Pakistan Ali Pur Chatha Branch number
0235 Gujranwala is to accept and receive surplus money from the people, which
they willingly deposit with the Bank. Like all other Banks, Allied Bank of Pakistan
Ali Pur Chatha Branch number 0235 Gujranwala also take incitation to attract as
much depositors as it can. The deposit department accepts/collects deposit from
accountholders.
The Allied Bank of Pakistan Ali Pur Chatha Branch number 0235 Gujranwala
offer different deposit schemes to its customers, which includes the following:

Current Deposits
PLS Saving Deposits
Fixed Deposit Account (Time Deposits)
Foreign Currency Account

 ALLIED BANK OF PAKISTAN ALI PUR CHATHA BRANCH NUMBER

0235 GUJRANWALA Premium Aamdani
Foreign Currency Account
National Income Daily Account (NIDA)

vi.

Pension Disbursement Department

The Allied Bank of Pakistan Ali Pur Chatha Branch number 0235 Gujranwala is
Pakistans leading institution which performs the function of pension payments or
disbursements to pensioners. The pension disbursement department is
responsible for making pension payments to Government Pensioners. The
person who wants to receive his/her pension from Allied Bank of Pakistan Ali Pur
Chatha Branch number 0235 Gujranwala can open an account with any branch
of Allied Bank of Pakistan Ali Pur Chatha Branch number 0235 Gujranwala. The
bank performs this function through Demand Draft Purchase. This department
performs following functions:

vii.

Making Pension Payments

Opening of Account of Pensioner
Entry of amount paid to pensioner in Government Pensioners Register
Verifications of Signatures of Pensioners
Making Demand Draft Purchase Register

Accounts Department

Accounts Department of the bank can be considered the most important

department. This department is basically concerned with processes and activities
of recovering, sorting, summarizing and reporting data resulting from the whole
day transactions of all the departments. Actually the process of this activity starts
from the preparation of all the required vouchers by different related
departments. When these vouchers are prepared, these are posted into
respective computer terminals by the relevant departments. Before merging, a
batch list is printed out by Computer Department and duly checked by the

respective departments. After this, merging stage comes, after which a proof list
is printed out. This is the stage, where Accounts Department starts performing
its function. Proof list is checked by the Accounts Department.

viii. Government Department

Gov.Department is used to perform the functions which are for issued the loans
to Gov. and other services for the government.

1.3.5 Reviews about theOrganizational Structure

To Exercise different functions, management has powers as well as restrictions
to act and behave according to the instructions provided and take into account
when these instructions were amended. To check the proper implementation
board has made a committee named as Steering committee that will check and
respond to BOARD. The list of powers and limits is given as follows:
Powers
The president has authority that he may delegate higher limit to an individual or
Regional Management Committee by name and the powers so delegated. The
powers are to be exercised against all types of acceptable securities
and collaterals within the parameters of Prudential Regulations, Banking Laws
etc. and the powers are subject to SBP restrictions, policies, and regulations in
vogue and amended from time to time.
Limitations
The president is empowered to exercise unlimited financial powers vide BOD
decision. All purchases are strictly said to be as per banks rules and the
procurement policy. To check expenses are under budget, Regional Management

Committee on monthly basis review all the expenses and a statement thereof to
be sent to the Chief of Operations Group, Head Office.

PART II
1.4 Internee Work

1.4.1 ALLIED BANK OF PAKISTAN ALI PUR CHATHA BRANCH

NUMBER 0235 GUJRANWALAs
I did my internship at Allied Bank of Pakistan Ali Pur Chatha Branch number 0235
Gujranwala and the duration of this internship was six weeks. During these six
weeks of internship I performed and observed different activities in the different
branch departments. My joining date in ALLIED BANK OF PAKISTAN ALI PUR
CHATHA BRANCH NUMBER 0235 GUJRANWALA from 18/7/13 to 28/8/13.
In Gujranwalas district ALLIED BANK OF PAKISTAN ALI PUR CHATHA
BRANCH NUMBER 0235 GUJRANWALA has almost thirty branches. The
ALLIED

BANK

OF

PAKISTAN

ALI

PUR

CHACHTA

BRANCH

0235

GUJRANWALA commenced its operations in approximate years 1967 or 1968 as

it is unclear about its exact launch date. The current manager of the branch is Mr.
Mateen Dar and total employees strength is sixteen.

Branch Details

Branch Name
Branch Code
Address
Phone
Fax
Tehsil
District
Region
Province
Swift Code
Status
Email
Reporting to SBP
Branch Category

1.5

Ali pur Chachta Branch

0235
Gujranwala
053-9260155
9260157
Gujranwala
Gujranwala
Gujranwala
Punjab
--Online
manager0235@alliedbank.com.pk ,
opsmanager0235@alliedbank.com.pk
CHEST
III

BRANCH HIERARCHY

Mr. Mateen
Dar AVP

Mr.
AsimRaza
Operations

Mr. Atta
Ullah
Complianc

Mr.
Waseem
Govt
Dept.

Mr. Nouman
Clearance
Dept.

Ms.
FarihaJav
ed
Remittan

Mr. Asif
Butt
Deposit
Incharge

Mr.
AwaisRaf
q Credit
Dept.

Mr. Mir
Sarfraz Cash
Depart.

Ms. Fatima
CFO

Mr. Sohail

Shakeel
Ahmed

Mr. Shoaib

AzamMun
eer

Unskilled
workers

2 Office Boys

Ms. Asifa
3 Guards

1.4.2 MY SUPERVISORS:
Ms. FarihaJaved
(Officer Grade II)
Mr. Shoukat Ali
(Assistant Vice President)

 Mr. Nouman
(Management Training Officer)
Ms. Ghulam Fatima
(Officer Grade II)
Mr. AwaisRafiq
(Officer Grade II)
Ms. Asifa
(Officer Grade I)

1.4.3 THE DEPARTMENTS I WORKED IN:

In the branch, departments do their jobs in accordance with the bank regulations
and policies depending on their size and business volume. Given below are the
departments I worked in:
Clearing Department
Remittance Department
Deposits Department
Credit Department
Account Opening Department
Government Department

Six week schedule of internship at Ali pur branch is given at the next page which
describes the day to day record of my activities and work accomplishments.
1.4.4 DETAILED DESCRIPTION OF THE ACTIVITIES OF THE

BRANCH DEPARTMENTS I WORKED IN

1.4.4.1 DEPOSIT SLIPS

With the help of deposit slips, customers can deposit any amount of cash,
cheque, demand deposit, pay order etc. into their account. I was instructed
specifically to take into account the following information while filling deposit slip:
The correct date indicating when the amount is deposited. If the amount is
deposited today then date should be the same day.
Account Number given to the individually to account holders by the bank.
The title of account which may be the account holders name or the name
of his firm.
Amount given in figures and words on the slip should match each other.
Currency should be mentioned whether euro, PKR, US$.
Any instrument number (cheque #, demand deposit #, pay order # etc.)
should be mentioned.
Signature by depositor at the left bottom of the slip.
After filling deposit slip I used to give receipt to the specific account holder and
voucher was then placed in pink basket for bank further proceeding.
There were basically two types of deposit slip:
Current account deposit slip was available for only current account holders
only. It was available in blue color. Current account holders could use this
slip for depositing their amount into account.
PLS Saving Deposit Slip was available in green color for all other account
holders either it is saving, term deposit etc.

1.4.4.2

CHEQUES

With the help of cheque one can withdraw any amount of cash. It was the clear
instruction from my supervisor Mr. Nouman that there should be no error, cutting
or overwriting whilst writing a cheque. That is why I paid full attention while filling

cheques because a little mistake of mine in any word and spell can create
problems resulting in customer dissatisfaction.
The information to be provided when writing cheques was
Name of the Bearer.
Date when it should be withdrawn.
Amount in Words and Figure.
Three signatures or thumb impressions.
It is human nature that mistakes are made despite of full alertness or attention.
Thus if any mistake in cheque occurred then it was mitigated by getting signature
by account holder. There is a permission of almost 3 mistakes otherwise cheque
will be rejected.

1.4.4.3 ONLINE PAYMENT

With the help of online payment, one can send its amount to any branch of
ALLIED BANK OF PAKISTAN which is online within few minutes.
Features of Online Payment
Money is only transferred from one branch to another branch of the same
bank.
Payer and Payee bank is the same but branches are different.
It is an unconditional form of payment.

Procedure for Online Payment

For online payment, a form was filled by the customer providing the following
information:
Name and Account number of Receiver/ Beneficiary.
Amount which was transferred.
Place and Branch code where amount is payable.
The mode in which money is to be paid i.e. cash or through cheque.
Name and Account of the individual sending the money.
Online Payment can be sent by account holder and non-account holder both. For
non-account holder a copy of CNIC is required.
Online charges are not same for both account holder and non-account holder.

1.4.4.4 DEMAND DRAFT

Demand draft is a tool through which individual can make payment from one
bank account to another. In this case, the drawer (the person writing the draft)
and drawee (bank giving money) bank is the same but branches are different.
Demand drafts are considered as a relatively secure method for transferring
funds or money. The major difference between demand drafts and normal
cheques are that demand drafts do not require a signature in order to be cashed
also known as Remotely Created Cheques.
For online payment, customer was required to fill voucher providing the following
information:
Name of the individual (Receiver/ Beneficiary).
Account number of Receiver (Optional).
Amount of cash which is to be transferred.
Specify the mode in which money is to be paid i.e. cash or through

cheque.
Name and Account of the individual sending the money.
Place (branch name or code) where amount would be payable.

CHARGES: Charges were paid by customer other than their sending amount as
follow:
PKR 50 was charged up to the amount of PKR 50,000.
PKR 100 was charged up to the amount of PKR 100,000.
If the amount exceeded PKR 100,000 then 0.50% commission of amount
was charged by the bank.
Fixed Daak charges of PKR 75 and Federal Excise Duty is the 5% of
Commission.
Demand draft was only issued in the case of submission of total charges or
amount by account and non-account holders.

1.4.4.5 PAY ORDER

This was another mode for funds transfer. For pay order, customer was required
to fill voucher providing the following information:

Name and Account number of the individual (Receiver/ Beneficiary).

The exact amount to be payable.
The mode in which money is to be paid i.e. cash or through cheque.
Name and Account of payer.

CHARGES:
Pay Order charges for non-account holder are not same as Online Charges,

these are:
i.

Commission charged for the pay order was 200/- and the Federal
Excise Duty was PKR 32/- (FED on each 100RS is 16)

Pay Order for branch account holder were as follow:

ii.

Commission charged for the pay order was 50/- and the Federal
Excise Duty was PKR 16/-

Only after submission of amount including charges by account or non-account

holder was Pay Order issued.

1.4.4.6 Mail Transfer and Telegraphic Transfer

Mail Transfer was the mode used when a customer wish to transfer money from
his account in Center 'A' to either his own account in Center 'B' or to somebody
else's account.
In this mode of transfer, customer was required to fill an application form similar
to the one for demand draft, sign a charge slip or gave a cheque for the amount
to be transferred. The Bank then sent an order to its branch at center 'B' to
deposit the said amount in the account number designated by him.
The term Telegraphic Transfer or Telex Transfer, often abbreviated as 'TT'. This is
similar to the Mail Transfer except that the message is sent to center 'B' by way
of a telegram and the money is deposited the next day. The mode of instructions
nowadays is the fax. For TT / MT payment, a form is filled by the customer in
whom following information was mentioned:
Name and Account number of Receiver/ Beneficiary.
Amount which is transferred.
Place and Branch code where amount was to be sent.
Mode in which money is to be paid i.e. cash or through cheque.

 Name and Account of the individual sending the money.

While Telegraphic Transfer, bank has its own responsibility for sending amount.

1.4.4.7 ISSUANCE OF CHEQUE BOOK

A cheque book will not be issued till the customer deposits the amount into its
account. When he deposits his amount then a cheque book will be issued where
account number and title is printed. Mr. Adil while giving cheque book to
customer recorded its entry on Cheque Book Register.
A Cheque Book can be issued by consisting of 25, 50 and 100 Leaves and
rupees 3 are charged as per leave from customer.
i.

Loss of cheque book

If a customer, in a case, lost his/her cheque book then a requisition slip was filled
first. Signature of account holder was verified and the lost cheque books serial
number was immediately cancelled and a new cheque book was to be issued.
When cheque book is lost then customer was required to inform the concerned
officers by writing an application. Otherwise it can create problems for the
account holder.

1.4.4.8 CLEARING
The electronic system eliminates the use of paper bills, checks, and mail, and it
reduces the time and cost incurred presenting bills and collecting payments.
Many of the clearing houses belong to the Automated Clearing House network to
provide an electronic alternative to the traditional paper-based check clearing
systems. Clearing is the process of transmitting and reconciling payment or
transfer instructions, confirming payment orders, or the security transfer

instructions prior to settlement. Settlement is the discharge of obligations with

respect to the transfer of funds or securities between two or more parties.
Following instruments were presented at the clearing department:
i.
ii.
iii.

Cheques
Demand drafts
Pay orders
TYPES OF CLEARING
Local

Inward

Outwar
d

Intercity Clearance:
When a cheque came for clearance that was outside from the range that
ALLIED BANK OF PAKISTAN ALI PUR CHATHA BRANCH NUMBER 0235
GUJRANWALA set, it would be under the intercity clearing. This type of
clearing had some charges.
Local Clearance:
When a cheque came for clearance that was inside the range, it would be
under the local clearing. This type of clearing was free from all charges.
i.

OBC (Outward bank collection)

In OBC cheques were drawn on other banks that were outside the range. For this
purpose, ALLIED BANK OF PAKISTAN ALI PUR CHATHA BRANCH NUMBER
0235 GUJRANWALA Bank took NIFT services and made CCs.

Recording in the Register

When a customer provided a cheque, which was drawn on other Bank or Branch
of different cities, it was recorded on a register that was called Bills Register.
After recording, bank sent that cheque for intercity clearance.
Stamping
I used to place three different stamps on cheque. Two stamps were posted at the
front of cheque that was crossing & clearance and one on the back that was
endorsement.
i. Crossing Stamp (Indicated that cheque is under the possession of Bank)ii.
Clearing Stamp (Indicated that cheque is presented for clearance and it has
complete in all aspects and fulfill all requirements)
iii. Endorsement Stamp (Indicated that Payee's account will be credited on
realization for Bank).

Bundle Cover
Then cheques were attached with a Bundle Cover page in which total amount &
instrument number are mentioned and sent to the NIFT of that city. NIFT directly
presented cheques to the concerning bank/ branch.
Delivery Report
When cheques were presented to the then next day it sent a Delivery Report
which showed that the cheque had been delivered.

After the Clearance, all cheques would be delivered to the main branch of
ALLIED BANK OF PAKISTAN. Main Branch will then send an advice to the Bank
Square. On the basis of that advice all accounts are credited.
CC (cheques for clearance)
Where the NIFT service was not available CC would be sent for clearance of
cheque.

Record in the Register

For the Clearance of Cheques all cheques were recorded on Bills register and
CC number was allotted to those cheques. If these cheques were for any other
branch of ALLIED BANK OF PAKISTAN ALI PUR CHATHA BRANCH NUMBER
0235 GUJRANWALA then they were directly sent to the branch of that city and if
cheques were for any other bank's branch then they were sent to ALLIED BANK
OF PAKISTAN ALI PUR CHATHA BRANCH NUMBER 0235 GUJRANWALAs
Main Branch at that city where the bank sent these cheques for local clearance.

ii.

IBC (Inward bank collection)

In IBC cheques were drawn on Bank. Branch of that city confirmed about that
Cheque through fax which were drawn on ALLIED BANK OF PAKISTAN ALI PUR
CHATHA BRANCH NUMBER 0235 GUJRANWALA and follows the reverse
procedure as to outward bank collection

Following are the reasons given below due to which cheques could be rejected
for clearance purposes:
Cheques can be returned due to different reasons:
Payment stopped by drawer.
Discrepancy of mount in words and figures.
Cheque postdated/ out of date.
If there was no clearing banks endorsement.
If there was no clearing stamp.
If crossing stamp was not placed.
Account closed.
Insufficient fund.
Not drawn on that branch.
No title of account.
Different or incomplete or absence of drawers signature.
Cheque was incomplete etc.

1.4.4.9 Account opening

My next activity for learning was the opening of accounts. The procedure for
opening of account was as follow:

A person who wanted to open an account in ALLIED BANK OF PAKISTAN ALI

PUR CHATHA BRANCH NUMBER 0235 GUJRANWALA was required to fill the
account opening form and there should be no cutting and overwriting. Account
could be opened at the name of customer or in the name of her/his business. It
could be opened in any type of accounts like: Current, Saving, Basic bank
account etc. and in any currency of Pak Rupee or a Foreign.
When form was filled then signatures/ thumb impressions were taken from
customers at minimum three places. Two signatures were done at the specimen
signature card and at least one signed on the account opening form. Signatures
done by the customer were required to be the same as on the ID Card. If a
customer wanted to do a different signature, it must require getting permission
from Manager first.
Reference
Customer also came with anothers individual reference who was already the
account holder of bank called introducer. The introducer verified the integrity,
reliability and honesty of customer. If the introducer did not sign on form,
customer would not be able to open his/her account in ALLIED BANK OF
PAKISTAN ALI PUR CHATHA BRANCH NUMBER 0235 GUJRANWALA.

Assigning of Account Number

At this stage, account number was assigned to the customer.
Closing of account
There could be different reasons for closing of account by Bank:

 If the account holder had no balance in its account and did not even try to
deposit any amount.
If account holder had involved in any unfair means.
Account could also be closed by the will of account holder itself

i.

Procedure for Closing of Account

A request letter for closing of account was written by account holder.

Rupees 250 was charged.

Cheque book and ATM Card was taken back.

1.4.5

SUMMARY OF LEARNING

I chose to do an Internship to gain valuable work experience in the field of my

major (finance). Six week internship at the ALLIED BANK OF PAKISTAN ALI
PUR CHATHA BRANCH NUMBER 0235 GUJRANWALA help me polished my
oral and written communication skills, customer service skills, teamwork skills,
organizational skills and various computer skills helpful in developing cash
scrolls, government scroll, intercity clearance lists, account opening etc. .
Diplomacy and persuasion are the other skills that I owe to my internship
because it is really important to get everyone on board with you when you have
some dream idea or project and you wish to realize your dream into reality. I
gained confidence in speaking my opinions and mind of thought with other
people. I learned how to manage my time effectively and out of all the general
skills being an active listener was the most important. The last professional skill
that the manager advises me was always to be open-minded, you may know

what you want to do with your degree, but the position may not be available in
the area. Develop other skills than those specific to what you want to do with
your degree.
Here I would particularly want to mention appreciate the whole branch staff (who
has substantial experience within the banking sector) who allowed me to
understand how the things I have learned about finance, marketing and money
and banking in classes can actually be implemented on a day-to-day basis in the
real world. I feel that I have a better understanding of banking sector after
observing and practicing the bank routine activities all along the six week
duration. I cannot describe how grateful I am to have the experience of doing an
Internship directly related to my subject.
I fulfilled the responsibilities of doing remittance, account opening, pension
disbursements, loan sanctioning, clearance, checking the a/c balances with the
help and guidance of respective supervisors.
I feel like my Internship most benefited my career goals by giving me experience
in what a job in practical would really be like. Also, I think this experience
prepared me to better obtain a job in my career field and to succeed in that
career. Internship gave me an opportunity to apply fundamentals learned in the
classroom to real-world banking issues and thus gave me an edge against
competition when entering into the work force. The Internship aided my career
goals in that it helped raise my energy, enthusiasm and intellectual interest for
situations that are often in need of a fresh perspective.
The experience I gained helps me remove hesitation and boost my confidence to
continually pursue for the excellence because overall the internship system itself
is specifically designed to give a student convenience, flexibility and real world
experience prior to graduation.. It will greatly influence my interaction with people

on a professional level and in a way that I would never have the chance to do in
the classroom. Last but not least it would look great on my resume.
Different financial, management, marketing and money & banking concepts that I
learned in the class greatly put me at ease from the start of the internship
because I was already familiar with most of the activities and procedures
performed there. I believe that students should do an Internship to put the skills
and information that they learned in their classes to practical use as it aids us in
learning new skills, developing our professional interests, expanding our personal
network and gaining valuable work experience.

2. CONCLUSION
The Allied Bank of Pakistan Ali Pur Chatha Branch number 0235 Gujranwala
plays a key role in the strategic national development. The bank has historically
been the financial arm of the government and has enjoyed the blessings of state
support in the form of huge public sector funds and deposits.
In contrast to other banks populating the financial services (FSI) sector, ALLIED
BANK

OF

PAKISTAN

ALI

PUR

CHATHA

BRANCH

NUMBER

0235

GUJRANWALA is mandated to uphold public interest. It is critical too as all other

banks and ALLIED BANK OF PAKISTAN ALI PUR CHATHA BRANCH NUMBER
0235 GUJRANWALA in public sector have been closed down or merged with
ALLIED BANK OF PAKISTAN ALI PUR CHATHA BRANCH NUMBER 0235
GUJRANWALA.
In contrast to other banks populating the FSI sector, ALLIED BANK OF
PAKISTAN ALI PUR CHATHA BRANCH NUMBER 0235 GUJRANWALA is
mandated to uphold public interest. It is critical too as all other banks and NBF in

public sector have been closed down or merged with ALLIED BANK OF
PAKISTAN ALI PUR CHATHA BRANCH NUMBER 0235 GUJRANWALA.
The current management of Allied Bank of Pakistan Ali Pur Chatha Branch
number 0235 Gujranwala was hired purely for their international experience,
business orientation to turn around a purely public institution into a sustainable
and commercially viable bank serving public interest along the lines of a large
modern commercial bank.
The Allied Bank of Pakistan Ali Pur Chatha Branch number 0235 Gujranwala has
effective budgeting system in place. Annual budget of the bank is approved by
the Board and monthly comparisons of actual results with the budget are
prepared and reviewed by the senior management.
The Allied Bank of Pakistan Ali Pur Chatha Branch number 0235 Gujranwala has
a comprehensive framework of written policies and procedures on all major areas
of operations such as Credit, Treasury Operations, Finance, Internal audit and
Compliance approved by the Board.
The Allied Bank of Pakistan Ali Pur Chatha Branch number 0235 Gujranwala
provides sustainable financing for growth of industries of critical national
importance such as energy, education, healthcare, transport, shipping, Research
& development.

2.1

General Observations about the Banking sector

Pakistans banking sector reforms have transformed the sector into an

efficient, sound and strong banking system. They have resulted in a more

efficient and competitive financial system. In particular, the predominantly

state-owned banking system has been transformed into one that is
predominantly under the control of the private sector. The legislative
framework and the State Bank of Pakistans supervisory capacity have been
improved substantially. As a result, the financial sector is sounder and exhibits
an increased resilience to shocks.
80 percent of the banking assets are held by the private sector banks and the
privatization of nationalized commercial banks has brought about a culture of
professionalism and service orientation in place of bureaucracy and apathy.
The banks that were losing money due to inefficiencies, waste and limited
product range have become highly profitable business. These profits are,
however, being used to strengthen the capital base of the banks rather than
paying out to the shareholders.
The quality of new assets has improved as stringent measures are taken to
appraise new loans, and assure the underlying securities. Online Credit
Information Bureau reports provide updated information to the banks about
the credit history and track record of the borrowers. Loan approvals on
political considerations have become faded.
The human resources base of the banks has been substantially upgraded by
the adoption of the principles of merit and performance throughout the
industry. Recruitment is done through a highly competitive process and
promotions and compensation are linked to training, skills and high
performance. The banks now routinely employ MBAs, M.Coms, Chartered
Accountants, IT graduates, economists and other highly educated persons
rather than Clerical and Non Clerical Workers. The banking industry has
become the preferred choice of profession among the young graduates.

Banking Technology that was almost non-existent in Pakistan until a few

years ago is revolutionizing the customer services and access on-line
banking, Internet banking, ATMs, mobile phone banking and other modes of
delivery have made it possible to provide convenience to the customers while
reducing the transaction costs to the banks. Credit Cards, Debit Cards, Smart
Cards etc. are a thriving and expanding business in Pakistan. Once the
RTGS is put in place, the payment system in Pakistan would enter a new
phase of modernization.
Competition among the banks has forced them to move away from the
traditional limited product range of credit to the government and the public
sector enterprises, trade financing, big name corporate loans, and credit to
multinationals to an ever-expanding menu of products and services. The
borrower base of the banks has expanded four fold in the last six years as the
banks have diversified into agriculture, SMEs, Consumers financing,
mortgages, etc. The middle class that could not afford to buy cars or
apartments as they did not have the financial strength for cash purchases are
the biggest beneficiaries of these new products and services.
And to make all this growth possible, the State Bank of Pakistan supervisors
are not only vigilant in their on-site inspection but they monitor the banks on a
continuous basis and can detect irregularities and violations fairly quickly. The
more deterrent effect of strong oversight by the supervisors is enough to
discourage such activities. The penalties imposed by the supervisors on
recalcitrant banks are quite severe.

2.2

SWOT Analysis

Strengths
Network in foreign countries:
ALLIED BANK OF PAKISTAN starts opening branches in foreign countries and it
has opportunities to develop them very strongly, like it open a branch in Kabul,
which proves to be very beneficial.
Gain economies of scale:
Being the bank with largest branch network and capital structure in
Pakistan.ALLIED BANK OF PAKISTAN can avail economies/of scale by
increasing monopolistic hold.
Conduct large workshops for Training and Development:
Due to its strong financial position the bank can conduct workshops for the
development of its staff effectively and can bear all the costs easily.
Support of SBP:
The SBP is providing complete Support to the ALLIED BANK by its different
policies and other supporting activities.
Better Competitive Position:
Having monopolistic hold on the economy the ALLIED BANK OF PAKISTAN
gain competitive edge over other banks, the bank maintain better financial as
well as physical and other non-physical advantages.
Market Recognition

For the second consecutive year, ALLIED BANK OF PAKISTAN was recognized
as the best bank in Pakistan by the prestigious periodical, " The Banker" UK (a
subsidiary of Financial Times Group).
Opportunities
It is an external situation, which an organization can benefit from. ALLIED
BANK OF PAKISTAN ALI can grab the following opportunities:
Growing policies of the Government on business and commerce sector
provides ALLIED BANK OF PAKISTAN an opportunity to efficiently meet
the business people's requirements of instant cash financing facilities.
Customer's feedback on different products and services has really
improved the bank's performance and encouraged the atmosphere for
other future policies.
ALLIED BANK OF PAKISTAN has an opportunity to expand its new
technological advancement like Tele bank and Internet banking facilities in
order to serve the customers more, efficiently. Especially E Banking is a
new opportunity which is a flourishing business in foreign countries and
can also be here, if ALLIED BANK OF PAKISTAN takes the initiatives.
Due to efficient and experienced management group, ALLIED BANK OF
PAKISTAN can improve and expand its foreign operations successfully.

Increasing need and potential of leasing in Pakistan provides ALLIED BANK OF

PAKISTAN an opportunity to utilize its skills and efficiencies in leasing business
as welt

Weaknesses
For general public interest concern there are no service standards benchmarks
and guidelines available in ALLIED BANK OF PAKISTAN. There is only re-

crafting of old documents only. The Allied Bank of Pakistan Ali Pur Chatha
Branch number 0235 Gujranwala is incurring large expenses in running those
branches, which are not producing any income and up gradation of human
resource is very slow.

Threats
It is an external situation posed to harm organization. ALLIED BANK OF
PAKISTAN ALI PUR CHATHA BRANCH NUMBER 0235 GUJRANWALA worries
about the following;
A tremendous number of foreign banks are opening their branches in the
country.
Also the increasing operations of private banks pose threat to ALLIED
BANK OF PAKISTAN ALI PUR CHATHA BRANCH NUMBER 0235
GUJRANWALA.
Highly specialized and attractive services offered by foreign banks to/their
customers.
Lack of consistency in Government's policies regarding business and
economic sector.
Growing global technological advancement.
Strict regulations of the Government over credit facilities to the customers
as well as to meet the prudential regulations.
Loss of confidence of overseas customers due to freezing of accounts.

3 RECOMMENDATIONS
The management should develop elaborate strategic plans for capitalizing
the available opportunities.

 One area where the bank has done some work is the improvement in
customer services. But to get the desired results, the bank should develop
long-term objectives and prepare appropriate courses in order to achieve
them.
The bank should maintain principle of professional management and
adhere to the sound and sophisticated banking rules and regulations to
build confidence of the people in the institution.
Regulatory authority should pay heed related to 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.
Security cameras should be placed to provide the customers with sense of
security.
A check and balance should be imposed on all employees violating rules
and regulations and a large 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 in order to get a competitive edge.
Separate information desk must be established in bank to facilitate the
customers and making 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 ALLIED BANK OF PAKISTAN ALI PUR CHATHA BRANCH
NUMBER

0235

GUJRANWALA

should

be

online

convenience and for best link among all its branches.

Internal audit should be held and executed fairly.

for

customer

REFERENCES

1. http://www.Allied Bank of Pakistan Ali Pur Chatha Branch number

0235 Gujranwala.com.pk/Publications/index.aspx, accessed 3 Jan
2013

2. http://www.scribd.com/doc/56505031/22/ROLE-OF-NATIONALBANK-OF-PAKISTAN-IN-ECONOMIC-DEVELOPMENT, accessed
5 Jan 2013

3. http://www.friendsmania.net/forum/mba-islamic-modefinanace/30301.htm, accessed 5 Jan 2013

4. http://dawn.com/2012/11/10/Allied Bank of Pakistan Ali Pur Chatha
Branch number 0235 Gujranwala-raises-loan-limit-for-govt-officials/,
accessed 21 Jan 2013
5. Face to face interviews with:
Branch manager Mr. Shaukat Ali, 15 Jan 2013 around 12 o clock
Management training officer Mr. Nouman, 15 Jan 2013 12:45am
Customer Facilitation Officer Ms. Ghulam Fatima, 15 Jan 2013 2:00am