BRANCHES & ATMS

Online Banking facilities are available to customers maintaining accounts at all online branches across the country. Following facilities are available

Cash Deposit for immediate credit to a remote branch.

Remote Cheque Encashment from any online branch.

Instant Funds Transfer between any 2 online branches.

Remote Balance Inquiry and Statement of Account.

Additionally, account holders of all online branches can obtain Allied Cash+Shop Visa Debit Card for use

at ATMs as well as at POS terminals.

Click Here to view the List of Branches Open on Saturdays.

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Home Remittances To Pakistan

o Business Banking Corporate and Investment Banking Transaction and Business Accounts Home Remittances to Pakistan Savings & Term Deposits Cash Management Solutions

Trade Services SME Financing Agriculture Financing

HOME REMITTANCES TO PAKISTAN

Allied Express – Home Remittance Distribution Service

ABL has been significantly important in helping the growth of home remittances to Pakistan through its

streamlined and trusted services. We are working continuously to develop innovative ideas into service

features that allow us to process and payout remittances even faster resulting in greater customer

satisfaction.

ABL’s real-time online branch network – one of the largest networks in Pakistan, consists of over 830

branches in 300 cities and town, providing comprehensive domestic distribution of remittances to

Beneficiaries across Pakistan.

A host of renowned international banks, exchange houses and money transfer companies from across

the world, including the Middle East, Europe, Asia-Pacific and North America, have been using our

services with utmost trust and satisfaction.

A number of options are available to non-resident Pakistanis through our service, including Direct Credit

to Account, Cash Payment over the Counter and issuance of Allied Express cheques, a payment

instrument that is honored across the entire ABL network of branches.

Please contact us to explore the ABL home remittances value proposition on +92-21-35301043

or allied.express@abl.com. For a more detailed review of what we do and how we do it, you may

download the presentation from this link.

Allied ExpressPDFDownload

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EXTENDED HOURS BANKING

Helping Customers Do Their Banking by Extending Our Branch Business Hours

ABL is pleased to offer Extended Hours Banking Services for its valued customers.

The following selected branches will remain open from 9:00am to 8:00pm from (Monday to Friday) and

from 9:00am to 5:00pm on Saturdays:

S. No.

Branch Name

AddressPhone Number

City

1Tariq Road, Branch

Plot No 26-C Block-II, PECHS, Karachi

(021)34554409 (021)34544163

Karachi

2Haidery Market Branch

Sooqul Aman Apartments, Block G North Nazimabad, Karachi

(021)36647892 (021)36705223

Karachi

3Liberty Market, Branch

S26-C Umar Anwaar Amin Mension Liberty Market, Lahore

(042)35717244 (042)35789826

Lahore

GO

4Y-Block, DHA Branch

142-Y, Commercial Area, DHA, Lahore Cantt

(042)35732082 (042)35692478

Lahore

5Chowk Bazar, Dalgran, Branch

Chowk Bazar Dalgran, (U-1379-1380) Rawalpindi

(051)5767132 Rawalpindi

Extended Hours Banking facility has been introduced for the convenience of customers, with an aim at

accommodating their busy schedules and making their modern-day banking tasks even simpler & easier.

Keeping the doors open for Extended hours services reflects our commitment of continually providing

better financial solutions and tailored-services centered around our customer requirements, which will

enable them to do banking at convenience whilst suiting their life-cycle needs.

The branches will continue to offer regular banking services (except FX transations) during extended

hours, which include:

Cash receipt transaction

Cash payment transaction

Online transactions

Collection of utility bills

Issuance of demand draft / pay order

Clearing of cheque and other related instruments, and other banking services.

ONLINE BANKING

Enjoy Real-time Online Banking service at any Allied Bank Branch. Allied Bank is the only bank in Pakistan offering 100% online branch network. Wherever you go around the country, you can access and do transaction through your ABL bank account from any Allied Bank Branch.

Deposit Cash for instant credit into the account

Withdraw Cash through cheque from any ABL Branch

Make Balance Enquiry and get Account Statement from any Allied Bank Branch

Transfer funds from one ABL account to any other ABL account across the country

Maximize the productivity of your business or financial management with Allied Bank’s Online Banking

facilities. It is a secure, efficient and convenient way to collect your payments faster, optimize the timing of

disbursement of funds, and maintain better control over your funds.

CUSTOMER SUPPORT

The better we treat our customers, the more we do for them, the better relationship we enjoy with them.

At Allied Bank, we give our customers diversified options to interact with us and let them experience the

joy of banking with us, every time they contact us through any of our touchpoints.

Interact with Allied Bank for information, queries, suggestions, complaints because we love to learn from

our customers

Email us

General Info: info@abl.com.pk

Human Resource: Group.Chief.Hr@abl.com.pk

Complaint Management Unit: complaint.management@abl.com.pk

Call us

0800-22522 – Allied Phone Banking

Security Center

Confidentiality of our customers is foremost at Allied Bank.

We adopt multi-faceted approach to security and ensure the provision of safety patches and responsible

awareness to our customers to fight off any possible threats.

The advance of web technologies has brought the society countless advantages, but the cyber world also

provides opportunity to a sinister side as well. As technology became more and more integrated in our

lives, the potential risk has also grown in parallel, be it from hacked computers or harvested personal

information.

At Allied Bank’s Security Center, you can read about latest fraud alerts, preventive measures and

information on how to remain protected from all potential threats.

DOWNLOADS

In this section you will find the various documents released by Allied Bank. All documents are available in PDF format.

Financial ReportsDownload and view latest Financial Reports of the Bank

Schedule of ChargesDownload our latest Schedule of Bank Charges applicable to the current half of the year

PublicationsRead all about our products, services and events by downloading our latest publications

Forms and CollateralThese include all the Forms and Collateral of our launch till date.

Knowledge BankingIn depth insights into your host of subjects and case studies, helping you to develop great ideas and

nurture them to fruition.

Articles and MagazinesA selection of recorded articles and magazines covering a wide range of topics of interests

Profit RatesDownload the latest Profit Rates of the deposit products

OTHER SERVICES AT ALLIED BANK

Hajj Services

Hajj Service at Allied Bank is available to all pilgrims. The forms and other related services are provided

by the Bank. Hajj applications are available with all branches during Hajj season, immediately after the

Hajj policy is announced by the Government of Pakistan

Demand Draft

Demand draft is a popular banking instrument in the trade circles to transfer funds from one place to

another. Allied Bank offers speedy issuance and payment of drafts at the branches.

Pay Order

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

named payee.

HOME REMITTANCES TO PAKISTAN

Allied Express – Home Remittance Distribution Service

ABL has been significantly important in helping the growth of home remittances to Pakistan through its

streamlined and trusted services. We are working continuously to develop innovative ideas into service

features that allow us to process and payout remittances even faster resulting in greater customer

satisfaction.

ABL’s real-time online branch network – one of the largest networks in Pakistan, consists of over 830

branches in 300 cities and town, providing comprehensive domestic distribution of remittances to

Beneficiaries across Pakistan.

A host of renowned international banks, exchange houses and money transfer companies from across

the world, including the Middle East, Europe, Asia-Pacific and North America, have been using our

services with utmost trust and satisfaction.

A number of options are available to non-resident Pakistanis through our service, including Direct Credit

to Account, Cash Payment over the Counter and issuance of Allied Express cheques, a payment

instrument that is honored across the entire ABL network of branches.

Please contact us to explore the ABL home remittances value proposition on +92-21-35301043

or allied.express@abl.com. For a more detailed review of what we do and how we do it, you may

download the presentation from this link.

SAFE DEPOSIT LOCKERS

Allied Bank’s Safe Deposit Lockers Safeguard Your Valuables to Assure Your Peace of Mind & Confidence.

Lockers are available at Allied Bank’s branches for all our account holders with singly as well as joint

operating instructions. As an additional security and track recording, whenever our account holders visit

their locker, they are supervised by our cordial staff along with the verification of signatures to ensure

safe, verified and vigilant entry.

If you are an Allied Bank Account holder, contact your branch and avail the locker facility now.

Some key features and charges of Allied Bank’s safe deposit lockers are,

Key features

Wide Availability

Lockers are insured according to their size.

Privacy and comfort to operate lockers

Lockers available in various sizes. i.e. Small, Medium , Large and Extra Large with flexible rental fee.

Lockers are rented out for a minimum period of one year.

The rent will be recovered from your deposit account maintained with us.

Direct debits for locker rentals from your account provides convenience and hassle-free payment of

annual fee.

Charges

S. # Locker SizeAnnual Locker Rent (Current)

Security Deposit

1. Small Rs.2,000/- Rs.25,000/-

2. Medium Rs.3,000/- Rs.50,000/-

3. Large Rs.4,000/- Rs.75,000/-

4. Extra Large Rs.5,500/- Rs.1,00,000/-

NOTE: Security Deposit is Refundable at the Time of Vacation of Locker.

To check availability of a locker at your nearest ABL branch, please download the “List of Branches with

Lockers” below:

AGRICULTURE FINANCING

The Bank, under the guidelines of the State Bank of Pakistan, extends short, medium and long term

Agriculture credit facilities to farming community of Pakistan on easy terms to increase the credit flow to

Farm and Non-Farm segments of Agriculture sector.

Farm credit is extended for the purpose of production of crops to meet working capital expenses and

Development of Agri land.

Non-Farm Credit facilities are offered for Livestock (Cow, Buffaloe, Goats, and Sheep etc.), Poultry

(Eggs, Day Old Chicks, Layer, Broiler, Hatchery) and fisheries (inland and marine, excluding deep sea

fishing).

Farm Loans

Production Loans

Inputs like seeds, fertilizers, pesticides, weedicides, herbicides, labour charges, water charges,

vegetables, floriculture, forestry etc.

Working capital finance to meet various farming expenses.

Development Loans

Improvement of agricultural land, orchards, etc.

Construction of Godowns

Purchase of Tractors, Machinery & other equipments

Installation of Tube wells

Farm Transportation, etc.

Non-Farm Loans

Livestock

Working Capital

Purchase of animal fodder and feeds, Vaccinations, Vitamins and other medications for animals including

artificial insemination

Overhead expenses i.e. labor, fuel, electricity etc.

Term Loan

Purchase of mature milk yielding buffaloes/cows, Purchase of Young animals for rearing for dairy farming

Purchase of Milk storage chilling tanks and milk carrying containers, feed grinders, tokas, feed mixing

machines and feed/milk containers etc.

Construction/Procurement of permanent sheds, water tanks, water pumps etc.

Poultry

Working Capital

Purchase of Eggs, Birds / Day old chicks, bird feed and feed raw material and vaccination

Overhead expenses i.e. labor, utility bills, Cost of fuel for generators & vehicles, transportation etc.

Term Loan

Purchase of Equipment/Machinery for Broiler/Layer farm & Hatchery

Farm construction for broiler, layer, hatchery and procurement of other items required for the

establishment of poultry farming industry etc.

Agriculture Revolving Credit Scheme

Loan Tenure: 3 Years (Clean up once a year)

One time documentation for 3 years

Loan limit will be based on the Indicative per Acre limit prescribed by ABL/SBP and/or requirement of the

applicant

Development Loans/Finances (Term Loans)

Loan Tenure: up to 7 years

Repayment: Monthly/Quarterly/Bi-Annual/Lump sum

Selection Criteria

Valid CNIC Holder

Preferably be an account holder with ABL

Have a permanent residence and be a self-cultivator

Not be a defaulter of any other Financial Institution/Clean ECIB

Be reputable in the business

Have ‘Repayment Capacity’

Be able to produce proper securities

Click Here to download a list of Designated Branches for flexible agricultural financing solutions.

WOMAN BANKING

Feel the comfort ….while you experience the services at our Women Branches

Allied Bank has introduced exclusive women branches to facilitate women to handle their financial

matters in comfortable homely environment.

Two branches are already opened in Lahore & Faisalabad and more to follow in your cities:

Branch Addresses:

Z-Block, DHA, Lahore

Main Susan Road, Madina Town, Faisalabad

Features:

All female staff

Comfortable environment

Coffee lounge

Kids play area

YOUTH BANKING

A great way for children and youth to get started with saving and lifestyle banking, including free access to ABL Internet Banking!

As a youth or student, you have unique banking needs. Whether you’re looking for value, flexibility or the

ability to save for the future, ABL offers a variety of accounts to help give you what you need. Our

exclusive Youth Branch incorporates a variety of youth-focused activities such as micro-savings, financial

education and entrepreneur development to empower youth in Pakistan.

Why Youth Branch:

Considering there are now over a billion people in the developing world between the ages of 12 and 24,

this is a critical time to harness young people’s capacity for learning and provide them with solid financial

services and understanding that will help lift themselves and their families out of poverty. The Youth

Branch was developed to help financial service providers meet this growing need for products and

services tailored to young people.

The purpose of Allied Bank Youth Banking is:

To secure the provision of opportunities for young people

To make grants to young people to bring about positive change in their own communities

To promote and support high quality learning opportunities

To help young people reach their full potential

To sustain Allied Bank Limited as the leading advocate of young people-led management of resources,

community action and decision-making.

Features:

Cordial Staff

Unique yet Comfortable Ambiance

Internet Facility

Students Area

SAVINGS & TERM DEPOSITS

Manage your funds with us… Meet your financial goals and Grow your Savings!

Have you managed to put aside some cash – What Now?

Your Savings stuffed into a mattress will never grow. But money deposited in a Savings Account or in a

fixed term, works for you by earning interest – and is also a lot safer. The longer that saving stays in your

account, the more you’ll make out of it.

Saving Accounts give you the ability to earn profit along with the flexibility to withdraw funds whenever

you require offsetting a financial emergency or need. The profit is earned as per the mechanics of Saving

Accounts which are mostly on the basis of Minimum Deposit maintained in the account.

Alternatively, investing in a term deposit product gives you a safety of knowing that your profit will not

fluctuate.

Term Deposit Mechanics

Term deposits are investment options offered by banks where you deposit your savings for a certain

‘term’ or period of time – upon which it would earn a particular percentage as profit. Let’s say you decide

to place your deposit for a term of 1 year at Allied Bank. Your deposit will be kept secured till the maturity

date. If you do need to withdraw your funds prior to its maturity date, then there are pre-mature

encashment charges that will apply.

At the maturity date of your term deposit, you may choose,

To withdraw your principal deposit along with the profit that your savings earned or,

You roll over the funds altogether or partially for another term to gain more profit.

There is a core principle that relates to the term deposit i.e. The longer the period of time for which you

are prepared to commit your funds with the bank, the better will be the rate and greater will be the income

Our Term Deposits can help you reach your savings goal.

CREDIT & DEBIT CARDS

Range of payment instruments and channels offered by Allied Bank has significantly contributed to service our customers.

A decade ago, it wasn’t all that unusual to be out for dinner or at the cash counter at a grocery store and

suddenly realize that you don’t have enough cash to cover the bill.

Today, we can conveniently pull out a debit or credit card and settle the bill electronically there and then.

It is difficult now to imagine a time when the card-based payment option were not available.

Debit cards are issued with a bank account so the money spent or withdrawn, is automatically deducted

from the account. It is a convenient alternate to cash, especially when it is directly used for shopping at

merchant locations on their POS (Point of Sale) machines.

With Credit Card, you can spend more than you have, or leveraging the credit balance, you can

reschedule your payments as per your convenience and typically get better rewards and better insurance

protection. Credit cards allow spending while paying the money back later.

Our customers using debit and credit cards enjoy the convenience that these cards bring in, for improved

financial management.

DOMESTIC REMITTANCE – PAY ANYONE

Around 2,000 Pay Anyone transactions are carried out every month!

Domestic Remittance is a significant financial service and a need for many people across Pakistan. It is

important for families, friends or acquaintances to have a convenient banking channel for remitting money

that is safe, fast and reliable. Our new addition on Allied Direct platform is the service called “Pay Anyone”

through which our customers can send/pay money to anyone in Pakistan.

How does it work

Allied Direct customers will be able to remit money from their accounts via 2 modes of payments,

Through Cash to be collected from any Allied Bank Branch all over Pakistan

Through a banker’s cheque (Allied Express Cheque) delivered to the specified beneficiary’s address and

payable at any branch of ABL.

BANCASSURANCE

 

“Investments and Protection plans at Allied Bank” Dreams.. worth saving for!

Alsurance

Il’m

Anmol Rishtey

ALSURANCE

Your Future Secured, Your Responsibilities Fulfilled

Overview

Because life is so unpredictable accidents can happen when you least expect them. An accident can

have a serious financial impact and we may have never thought about the financial consequences to us

and our family if we were involved in a serious accident.

Allied Bank and New Hampshire Insurance Company introduces Alsurance, a unique and exclusive

product that provides financial assistance to you and your family from accidents and incidents that, God

forbid, befall you.

Features:

Lowest ever premium: Rs. 6 per day

Highest protection up to: Rs. 7,500,000

14-day free trial period.

No medical tests required.

Covers your entire family.

Expenses for accident or terrorism related injuries covered

Why?

We are always concerned about the welfare of our children, our parents, and our family. Although, we

cannot prevent any incident or accident from happening, we can at least provide some solace in the form

of monetary relief, so that financial obligations can be met in the event a calamity may occur.

ABL as a responsible financial partner remains committed not only to your financial well being but also to

obligations that you or your family may face unexpectedly in the event of such an incident.

Product Benefits

Low Minimum Premium

Alsurance provides great benefits for as low as Rs. 2,160 per annum, which is Rs. 6 a day.

Lump Sum Payment

In case of an Accidental Death or Disability, the claim is paid out lump sum basis so that your family can

maintain their lifestyle and take care of any immediate financial responsibilities.

Family Coverage

Alsurance provides flexible plans for individuals as well as for families – which include spouse and

children.

Reimbursement for accidental or terrorism related injuries

In the event of an accidental or terrorism related injuries, your expenses for medical care are reimbursed.

Ease of Payment

Alsurance offers you both annual payment and monthly payment option, so you can choose a payment

plan that suits you best.

Plans

Silver GoldPlatinum

Diamond

Accidental or Terrorism Related

Death or Permanent Total Disability

Rs.1,500,000Rs.3,000,000

Rs.5,000,000 Rs.7,500,000

Medical Expense Reimbursement

Rs.300,000 Rs.500,000 Rs.750,000 Rs.1,000,000

Policy TypePremium Amount

Individual Annual Rs.2,160 Rs.4,080 Rs.6,720 Rs.9,90

Family Annual Rs.4,440 Rs.8,760 Rs.14,016 Rs.20,520

IL’M

Your Child Education Assured

Your Child’s Future is Precious

Be it an aspiring lawyer, a caring doctor or a skilled engineer – whatever your child aspires to become

tomorrow, we make sure it comes true. ILM (Child Education Plan) ensures your promise of better

education gets fulfilled no matter what the future holds for you

Allied Bank, with EFU Life Assurance Ltd, introduces “IL’M”, a savings plan that helps you meet your

child’s future education expenses.

Features:

Education Bonus

Freedom to customize

14 Day Free-Look Period

Fund Acceleration Premium (FAP)

Built-in Benefits:

Accidental Death and Disability Benefit upto Rs. 5,000,000

Continuation Benefit

Regular Education Fund Benefit

Why?

Education costs that are already exorbitant will further soar because of uncontrollable inflation. Saving

adequately and then prudentially investing those savings will give you the financial ability to fulfill the

promise of a better education to your children, even if you are not around to see it.

When Should You Start?

The earlier you start saving the better your child’s future will be. So build a steady saving from as low as

Rs.6,000 per annum with ILM After all, you work hard to earn your money; it’s only fair that your money

should work hard for you in return.

Milestones to Look-out for

School Fees: Rs. 70,000-Rs. 100,000 per year

University Education: Rs. 300,000-Rs. 500,000

These are approximate costs for good local schools and universities. These costs are substantially high

right now and will be even higher by the time your child reaches these milestones.

Product Features and Benefits:

Low Minimum Premium

I’LM gives you the opportunity to start saving for your child with as low asRs. 6000 per annum, which is

less than Rs. 20 a day.

Built-in Accidental Death and Disability Cover

The plan provides immediate funds in case the assured parent dies due to an accidental cause or suffers

permanent disability. The amount of payout is equal to 10 times the basic annual premium with a

maximum payout limited to Rs. 5 million.

Regular Education Fund Benefit

Withdrawals linked to key education related events can be made. They are allowed after completion of 5

policy years and a maximum 10% of the fund value at each time can be withdrawn.

Education Bonus

The plan provides valuable education bonuses during the plan term to boost the fund accumulation.

Starting from the 11th policy year, a bonus is allocated as a percentage of the average Basic Plan

contribution paid.

The extra unit allocation, in addition to the basic plan contribution, is as follows:

Applicable in Policy Year Extra Unit Allocation

11 25%

16 40%

21 60%

Fund Withdrawal Option

At maturity, the plan provides the accumulated fund value, which can either be taken in a lump sum or in

2, 3 or 4 equal annual installments.

Continuation Benefit

In the unfortunate event of death of the assured parent during the savings term, EFU Life continues to

make the contributions towards the plan so that the future planning of the child is not affected and the

targeted funds are available when needed.

Optional Benefits

Income Benefit

Waiver of Premium

Illustration

Plan with a 25 year term: For a 35 year old male, an annual premium of Rs. 15,000 and a built-in

Accidental Death and Disability benefit (providing sum assured of Rs. 147,400), the expected cash values

would be as follows:

Policy Year

Return On Investment

@ 6% p.a.unit @ 8% p.a.unit @ 10% p.a.unit

growth rate growth rate growth rate

1 3,485* 3,550* 3,616*

2 14,581 14,927 15,276

3 29,290 30,216 31,159

4 44,858 46,705 48,607

5 61,336 64,488 67,775

10 159,437 176,784 196,103

15 294,524 345,996 407,431

20 477,484 597,038 750,438

25 728,356 972,393 1,309,840

The policy cannot be surrendered until two full years premiums have been paid.

A portion of premium is invested in earlier years.

If the policyholder chooses the optional rider i.e. Income benefit, for an annual premium of Rs.945, a

regular quarterly income of Rs. 3,750 will be given to the family to meet the recurring child expenses in

case of death of the parent during the plan term.

Accessibility

In case higher funds are needed, the client has the flexibility to fully or partially withdraw the accumulated

fund value anytime after two full years premiums have been paid.

Unit Accumulation and Investment Fund

Every contribution paid towards the plan is invested in an internal investment fund of EFU Life called the

“EFU Managed Growth Fund”. The objective of the Fund is to maximize capital growth by investing in a

balanced portfolio spread across a wide range of shares, government and other fixed interest securities

and cash.

Fund Acceleration Premium (FAP)

You can make an additional lump sum contribution to the plan besides your regular Premium, to enhance

its cash value, at any time during the policy term.

Applicable Ages and Terms

The plan is available to individuals of 18 years to 60 years of age. The minimum savings term available is

10 years while the maximum is 25 years. The savings term has to be selected in such a way that the

maximum age of the customer at the end of the savings term is not more than 70 years.

Disclaimer

This product is underwritten by EFU Life. It is not guaranteed or insured by Allied Bank or its affiliates and

is not an Allied Bank product.

EFU Life is registered and supervised by Securities and Exchange Commission of Pakistan.

The contributions in the plan are invested in EFU Managed Growth Fund.

The cash values have been worked out at assumed growth rates of 6%, 8% and 10% per annum.

Depending upon the performance of the underlying investments in the EFU Managed Growth Fund, the

actual values may be higher or lower than the ones shown in the table.

The past performance of EFU Managed Growth Fund is not necessarily a guide to future performance.

Any forecast made is not necessarily indicative of future or likely performance of the funds and neither

EFU Life nor Allied Bank will incur any liability for the same.

A personalized illustration of benefits will be provided to you by our sales representative. Please refer to

the notes in the illustration for detailed understanding of the various Terms and Conditions.

Service charges and taxes will be applicable as per the Bank’s “Schedule of Charges” and taxation laws

as stipulated by the relevant authorities.

A description of how the contract works is given in the policy provisions and conditions. This product

brochure only gives a general outline of the product features and benefits and the figures used above are

indicative and for illustration purposes only.

Contact Information:

EFU Life Assurance Ltd

Main Office: 37-K, Block 6, PECHS Karachi-75400, Pakistan

Tel: (021) 111-EFU-111 Fax: (021) 4535079 Toll Free: 0800-33800

E-Mail: info@efulife.com Website: www.efulife.com

Allied Bank Limited

Bancassurance Department (CRBG)

ABL Head Office, 3 Tipu Block, New Garden Town, Lahore.

Contact No: 042-35880043 – Ext. 32102

Email: banca@abl.com

ANMOL RISHTEY

Your Biggest Responsibility Assured

Dreams are Very Precious

You have provided for the best possible education, a virtuous upbringing and fulfilled your child’s dreams

so far. You aspire to give them the best when it’s time for their wedding and like every parent, you also

desire to fulfill their most cherished dream.

Allied Bank, with EFU Life Assurance Ltd, introduces “Anmol Rishtey”, a Marriage Savings Plan that helps

you meet the expenses of your child’s most important day.

Features:

Marriage Support Bonus

Freedom to customize

14 Day Free-Look Period

Fund Acceleration Premium (FAP)

Built-in Benefits:

Accidental Death and Disability Benefit upto Rs.5,000,000

Continuation Benefit

Engagement Bonus

Will your Savings Suffice?

You are a loving and responsible parent but are you sure your savings for her big day will suffice? Is your

hard earned money working as hard as you? Are you sure that with the rising inflation and living costs

your savings will meet the expenses when the wedding day arrives?

What Should you Do?

You can start as early as when your child is born or when your daughter is in her teens. The earlier you

start saving, the more easily you will be able to meet the expenses of her big day. So build a steady

saving from as low as Rs. 6,000 per annum with AnmolRishtey. After all, you work hard to earn your

money; it’s only fair that your money should work hard for you in return.

Product Features and Benefits

Low Minimum Premium

AnmolRishtey gives you the opportunity to start saving for your child with as low as Rs. 6000 per annum,

which is less than Rs. 20 a day.

Built-in Accidental Death and Disability Cover

The plan provides immediate funds in case the assured parent dies due to an accidental cause or suffers

permanent disability. The amount of payout is equal to 10 times the basic annual premium with a

maximum payout limited to Rs. 5 million.

Engagement Bonus

At the end of 15 years, EFU Life will add an “Engagement Bonus” to the plan equal to 20% of the average

basic plan premium paid.

Marriage Support Bonus

The plan provides valuable Marriage Support bonuses during the plan term to boost the fund

accumulation. Starting from the 11th policy year, a bonus is allocated as a percentage of the average

basic plan contribution paid.

The extra unit allocation, in addition to the basic plan contribution, is as follows:

In Policy Year Extra Unit Allocation

11 20%

16 30%

21 50%

Continuation Benefit

In the unfortunate event of death of the assured parent during the savings term, EFU Life continues to

make the contributions towards the plan so that the future planning of the child is not affected and the

targeted funds are available when needed.

Plan Maturity

At maturity, the plan provides the accumulated fund value, which can either be taken in lump sum or be

left to accumulate with EFU Life for a maximum period of 1 year.

At the end of the one-year period, EFU Life pays the accumulated value and a “Maturity Investment

Bonus” of 20% of the annual average premium.

Access to savings at all times

The plan provides complete access to the accumulated fund value at all times. After the contributions

have been paid for two full years, the fund can be withdrawn for its full or partial value.

Unit Accumulation and Investment Fund

Every contribution paid towards the plan is invested in an internal investment fund of EFU Life called the

“EFU Managed Growth Fund”. The objective of the Fund is to maximize capital growth by investing in a

balanced portfolio spread across a wide range of shares, government and other fixed interest securities

and cash.

Fund Acceleration Premium (FAP)

You can make an additional lump sum contribution to the plan besides your regular Premium, to enhance

its cash value, at any time during the policy term.

Applicable Ages and Terms

The plan is available to individuals of 18 years to 60 years of age. The minimum savings term available is

10 years while the maximum is 25 years. The savings term has to be selected in such a way that the

maximum age of the customer at the end of the savings term is not more than 70 years.

Optional Benefits

Income Benefit

Waiver of Premium

Illustration

For a 35 year old male, AnmolRishtey plan with a 25 year term, an annual premium of Rs. 15,000 and a

built-in Accidental Death and Disability benefit (providing sum assured of Rs. 147,400), the expected cash

values would be as follows:

Policy Year

Return On Investment

@ 6% p.a.unit growth rate

@ 8% p.a.unit growth rate

@ 10% p.a.unit growth rate

1 3,485* 3,550* 3,616*

2 14,581 14,927 15,276

3 29,290 30,216 31,159

4 44,858 46,705 48,607

5 61,336 64,488 67,775

10 159,437 176,784 196,103

15 294,524 345,996 407,431

20 477,484 597,038 750,438

25 728,356 972,393 1,309,840

*The policy cannot be surrendered until two full years premiums have been paid.A portion of premium is

invested in earlier years.

If the policyholder chooses the optional rider of Income benefit, for an annual premium of Rs.945, a

regular quarterly income of Rs. 3750 will be given to the family to meet the child expenses incase of death

of the parent during the plan term.

Disclaimer

This product is underwritten by EFU Life. It is not guaranteed or insured by Allied Bank or its affiliates and

is not an Allied Bank product.

EFU Life is registered and supervised by Securities and Exchange Commission of Pakistan.

The contributions in the plan are invested in EFU Managed Growth Fund.

The cash values have been worked out at assumed growth rates of 6%, 8% and 10% per annum.

Depending upon the performance of the underlying investments in the EFU Managed Growth Fund, the

actual values may be higher or lower than the ones shown in the table.

The past performance of EFU Managed Growth Fund is not necessarily a guide to future performance.

Any forecast made is not necessarily indicative of future or likely performance of the funds and neither

EFU Life nor Allied Bank will incur any liability for the same.

A personalized illustration of benefits will be provided to you by our sales representative. Please refer to

the notes in the illustration for detailed understanding of the various Terms and Conditions.

Service charges and taxes will be applicable as per the Bank’s “Schedule of Charges” and taxation laws

as stipulated by the relevant authorities.

A description of how the contract works is given in the policy provisions and conditions. This product

brochure only gives a general outline of the product features and benefits and the figures used above are

indicative and for illustration purposes only.

E-BANKING SERVICES

“Electronic touchpoints to do banking round the clock” Banking on your fingertips!

As customers become more technology literate, Allied Bank delivers services that fit customers’ lifestyles

and offer more choice as to where, when and how they conduct transaction. Our customers are digitally

enabled and have less time to connect, interact and transact.

We, at Allied Bank differentiate ourselves not just by offering multi-dimensional channels to our customer

but also by enhancing their experience of utilizing those channels and find them convenient and familiar.

Our e-Banking services make us well positioned in creating better everyday life for our customers. We

have gathered a wealth of experience and expertise in providing electronic transactions to our individual

and corporate clients. We handle more than 23 Million electronic transactions annually.

‘Security’, ‘Speed’ and ‘Ease of use’ are the principles of e-banking infrastructure. At Allied Bank, we are

committed to our ability to speed our customers through to a successful transaction and improve their

efficiency levels while carrying out their financial decisions. Electronic services vary domestically as well

as globally but the challenge resides in delivering solutions that are efficient, providing customers with the

convenience and confidence they require in performing transactions.

ALLIED DIRECT – INTERNET BANKING

“Over 120,000 satisfied customers have registered for Allied Direct – Internet Banking”

Banking is now 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! It’s Simple, Convenient, Secure

and Faster.

Why Use Allied Direct – Internet Banking:

Allied Direct – Internet Banking gives customers 24-hour access to their Nationwide accounts. Here are

some of the services that will help save time and effort:

View and manage your account whenever and wherever you like.

Set up, manage and pay your bills.

Transfer money between your Nationwide accounts instantly.

Faster payments.

Top-up your mobile phone numbers

Go paperless, as you can view statements online.

Be up to do your banking, including paying bills and more, any day, any time, all from the privacy of your

own home, office or anywhere you have an internet connection. Sign-In or Sign-Up Now!

For Help and Support, please call the ABL Customer Center on: 0800-22522.

How to Sign Up for Allied Direct – Internet Banking

It only takes a few minutes to register. Please follow the steps, if you already have an account and ATM /

Debit Card; and start banking online:

Register yourself on Allied Direct website using the online registration process. A confirmation will be sent

to your given email addresses on registration and after approval of your request for using this service.

Once your request is approved, an ACTIVATION KEY will be sent to your email address. Use this

Activation Key to activate your account.

Activate your account by visiting your nearest Allied Bank ATM. After entering your ATM PIN Select

“Internet Banking” under “Other Services”. You will need to key in 8 digits Activation Key

received through email. On successful activation, you will get a message on ATM screen as well as on

paper receipt.

Once your Internet Banking is activated, visit our website. After entering the User ID, Activation Key and

other information, you will be required to specify the password to log in to Allied Direct. After the

verification of the information, you will be able to enjoy a host of benefits including Funds Transfer and

Online Bill Payments with few simple clicks.

E-SHOPPING

Shopping is more fun with Allied Bank!

The “e-Shopping” facility at ABL offers online payment facility linked to the online stores serving as a

payment gateway.

Allied Bank’s tie-up with a leading shopping websites facilitates convenient and secure online shopping

for you. Just choose your products online and pay conveniently through Allied Direct – Internet

Banking service.

Steps to Avail “e-Shopping” Service:

Visit the shopping site

Make your desired purchases

Click on “Dues Payment” in the horizontal navigation bar at the top

Enter the following information: Order Number, Description of Purchased Item, Amount, and Financial Pin

Click “Proceed” button

A confirmation screen will appear. Before confirming the transaction, double-check the Order

Number and Amount entered. Click “Confirm” to execute the transaction.

Ratings of Allied Bank Limited

June 30, 2012 

The Pakistan Credit Rating Agency (PACRA) has upgraded long-term rating of Allied Bank Limited to

“AA+” (Double A plus) [Previous Rating: “AA”]. The short-term rating of the bank is already at the highest

level i.e. “A1+” (A One plus). The rating of the unsecured, listed and subordinated TFC-II (PKR 3,000

Million) has also been upgraded to “AA” (Double A) [Previous Rating: “AA-”]. The ratings denote a very

low expectation of credit risk emanating from a very strong capacity for timely payment of financial

commitments.

Reply by M.Tariq Malik on December 12, 2011 at 10:43pm

HISTORY OF ALLIED BANK LTDABL is the first Muslim Bank established on territory that later on became Pakistan. It was established on December 3, 1942 as Australasia Bank at Lahore with capital of 0.12 million. At that time the chairman was Kh. Bashir Baksh. ABL’s story was one of the dedication, commitment to professionalism and adaptation to changing environmental changes.

The bank's history is divided into many phases. During 25 years of united Pakistan the bank advanced forward in all areas of its activities. 1970’s were a difficult decade for all Banks of Pakistan. In 1971 East Pakistan was separated and Australasia Bank lost its 50 branches and a lot of capital as well. Nevertheless the growth remained steady.

In 1974 all the Banks were nationalized including Australasia Bank. The small provincial Banks were merged into Australasia Bank. On 1st July 1974 the new entity was renamed as ABL of Pakistan Limited. Then it started its operations as Public sector financial institution.

Different Phases of the Bank Are as Follows:

THE PRE INDEPENDENCE PERIOD (1942-47)

Australasia Bank had the unique distinction of being closely identified with some of the country’s most Prominent leaders of the freedom moment. Such as Mian Mumtaz Daultana (Board of directors), Mian Iftikhar Hussain and Maulana Zafar Ali Khan.

The bank originally started its operation in the garage of Khawaja Bashir Baksh’s bungalow (who was the chairman) near the Lahore Railway Station. But the success of Bank enforced the directors to open its another branch in Anarkali on 1st March 1944. Kh. Bashir was first chief executive. He was the person who was really working in its development. His sincerity of purpose can be judged from his great moments.

Another branch was opened at Amaratsar in 1945. In June 1946, the bank earned the status of scheduled bank. During 1946-47 many other branches were opened at Mcleod Road Lahore, Jallandhar, Ludhiana, Agra and Delhi.

At independence the industrial and commercial sectors were underdeveloped but ABL contributed a lot in the development of these sectors.

AUSTRALASIA BANK IN PRIVATE SECTOR (1947-74)

It was the only full functional Muslim Bank on the land of Pakistan. On August 14, 1947 bank was identified with Pakistan moment. Many of its Board of Directors were prominent Muslim League leaders. Jallandhar and Ludhiana branches were attacked by rioters because of Muslim staff appointed in these branches of bank. But when the Pakistan flags wee hoisted on the branches then all the banks in India were closed down. With this, the bank lost a lot of capital and its deposits and almost 6 branches. During 1948 new branches were opened at Karachi, Rawalpindi, Peshawar, Sialkot, Sargodha, Jhang, Gujranwala and Kasur. But later on its branches were spread to Multan and Quetta. At that time, the bank financed trade in cloth and food grains and thus maintained consumer’s supplies during the riot effected early months of 1948. Australasia Bank made a profit of

50,000/= in 1947-48.

In August 1948, Australasia Bank became the first Pakistani Bank to successfully negotiate and open L/C for a Sialkot based importer of books. So it also made correspondence relations with Midland (UK), Chase Manhattan (USA) and Lloyds (India).

During the treasury functions of Federal Govt. of Pakistan and it also acted as Banker to several local Govt. Bodies and to the Punjab University during this period. Treasury functions were taken by National Bank of Pakistan in 1949.

In 1950-51, Chairman was replaced with his own brother Kh. Sharif Baksh.

During 1955-56, Mr. Naseer A. Sh. became the Chairman of Board and close working relationship was forged between the new Chairman and Managing Director. This partnership proved in modernizing its operations and consolidating its financial position.

In 1963, Bank had 29 branches in various cities. And deposits were 89 million and advances were 66 million. Bank was mainly concerned with general banking and trade financing (including foreign exchange transactions). It helped a lot in development of small and medium sized business houses. These were Nishat, Crescent, Pak Cement, Haroon traders, Takht Bhai Sugar, Insaf, Punjab soap, Pak fruit and Saboor Oil Mills etc.

In 1964, 13 new branches were opened including 3 in East Pakistan. In 1965, 17 new branches were opened and over 83 % of gross profit for the year was earmarked for development expenditure in connection with opening of new branches.

In 1966 bank opened 26 new branches and doubled its reserved funds. For the first time in history, its advances were increased to Rs. 160 million and deposits raised by almost 58 % exceeding Rs. 232 million mark. In 1966, Central Office was built in Karachi but Head Office remaining at Shah Chiragh Building, Lahore.

16 new branches were opened in 1967 and 20 in 1968. Respectively their funds were increased gradually. 21 new branches were opened in 1971. But separation time the 51 branches were lost by the bank which was a big loss.

ALLIED BANK: PUBLIC SECTOR YEARS (1974-91)

Under the Nationalization Act of 1974, 14 scheduled banks were taken over by the Government. Australasia Bank’s Board of Directors was dissolved and the bank was renamed as Allied Bank of Pakistan Limited. Sarhad Bank,

Lahore Commercial Bank and Pakistan Bank Limited were merged into Australasia Bank. At time of merge, ABL was second highest among all the banks Nationalized in 1974.

Allied Bank’s first Executive Board was constituted of Mr. Iqbal A. Rizvi as President, Mr. Ajmal Khalil as Joint President and Mr. Khadim Hussain Siddique as member. In 1974 Mr. I.D. Junejo and Mr. Safdar Abbas Zaidi joined the Board later. 116 new branches were opened in 1974 and it started participation in commodity Operation program of Government.

In 1970’s Bank played an important part of agricultural area loans and other loans. In 1976 Mr. Ajmal replaced Mr. Rizvi as Chief Executive and President. During 1974-77, 361 new branches were opened and 230 of these were located in villages and small towns. It also opened its foreign branch in London, near the Bank of England. In 1980 the Bank of England granted Allied Bank recognition as a full fledge Bank under the U.K. Banking Act.

In 1981, President was changed. In 1984, again new president was come to know. He tries to increase the international business. It also initiated a major counter program. In 1985, mainframe computer was installed and effective management system was developed. During this period profitability was increased. New President Mr. Maqbool introduced different schemes in 1987-88. In 1989, new 13 branches were installed.

Over 1991, 745 branches were there in all over the Pakistan.

Permalink Reply by M.Tariq Malik on December 12, 2011 at 10:43pm

A NEW BEGINNING

In November/ December 1990, the Government announced its commitments to the rapid privatization of the Banking sector. Allied Bank’s management under the leadership of Mr. Khalid Latif decided to react positively to this challenge. In September 1991, ABL entered in a new era of its history as world’s first bank to be owned and managed by its employees. The 850 executives and 7200 staff members spread over 750 branches throughout the Pakistan established a high degree of cooperation and family feelings

After this, it grows more and more, even at present it has 900 branches throughout the country and 4 foreign branches in U.K.

Allied bank Objectives:

Allied bank has following objectives:

i) Main objective of Allied bank is to earn profit.

ii) To provide services to their customers and assistance in the development of commerce and trade.

Allied bank also have another responsibility to give service to their communities. It watches the growth and development of his community especially the commerce and business of the area.

Read more: ALLIED BANK LIMITED – INTERNSHIP REPORT - Virtual University of Pakistan http://vustudents.ning.com/group/fini619internshipreportfinance/forum/topics/allied-bank-limited-internship-report?commentId=3783342%3AComment%3A1010400&groupId=3783342%3AGroup%3A59249#ixzz25CYeD8WP

Reply by M.Tariq Malik on December 12, 2011 at 10:43pm

MANAGEMENT SYSTEM OF ABLSuccessful and profitable banking management depends on two principal factors.

a) The manner in which the functions of banking, that is the acquiring of deposits, the investing or converting such deposits into earning assets, and the servicing of such deposits, are performed.

b) The degree to which officers and employees contribute their talents to the progress and welfare of the bank in discharging duties and responsibilities.

Allied Bank Management

Banks are managed by board of director or similar group of men who are responsible to the owners, creditors, and the government for the well being of their institutions. The government selects all or some of directors of ABL. Management of ABL are given as follows:

Bank’s Information

1. Directors:

Rashid M. Chaudhry is the chairman and Mohammadi Yaqoob is secretary of ABL, are also the board of directors.ABL’s other directors are M. Saleem Shaikh, S. Jauhar Husain, I.A. Usmaini, Raja Raza Arshad, Mohammad Saleem Sethi, Athar Mahmood Khan. Stockholders elect the directors for a term of one year and they are eligible for re-election. Voting is cumulative, that is, each shareholder has the right to vote the member of shares owned by him. The boards may format major policies and select officers to execute them. They may supervise these officers, review their act.

2. Executive Committee

Executive Committee consists of Rashid M. Chaudary (president), M. Salim Shaikh, S. Jauhar Husain, I. A. Usmain, Naveed Masud, Bilal Mustafa, M. Saleem Khan Durrani, Ashfaq Hassan Qureshi, Shariqe Umar Farooqi (secretary).

3. Officers:

Officers are selected by the directors to manage their banks. An officer’s relationship to the board is that of an employee to an employer. Chief Officer (Rashid M. Chaudary) of ABL is known as Chairman, Senior Executive Vice President (M. Saleem Sheikh, S. Jauhar,). They are also members of the board of director and are large shareholders. They are in a position, to dominate the bank's policies as well as its administration.

The Chief duty of the chairman is to lend the bank's funds. This work is often subject to little supervision by the board of directors.

STRUCTURE OF ABL LIMITEDNo bank can be expected to operate efficiently unless all employees with in a department, division or section know:

A) From whom they are to receive the work they are to do.

B) What they are supposed to do with the work after they receive it.

C) How they are supposed to handle the operation of item.

D) When they are supposed to do work, perform the operation.

E) To whom they give the item or function after finishing it.

To perform the functions efficiently the bank has its Head Office in Karachi, which is controlled by the president of the Bank. The bank has regional office under head office in major areas of the country. Regional Chief heads this office. The region Consist of many zonal offices with a zonal chief. There are many branches in a zone to carry

the functions effectively and performing customer services locally.

ABL Ltd. is functionally organized into divisions and divisions are further divided into department and sections. Every province has its own regional office and zonal offices. Executive vice president heads the divisions and departments are further headed by OGI (Officer of Grade I). Manager heads branches.

BRANCH NETWORKThere are Four Provincial Headquarters of Allied Bank Limited situated at Lahore (Punjab), Karachi (Sind), Peshawar (NWFP & Azad Kashmir) and Quetta (Baluchistan).

PROVINCIAL HEADQUARTERSPUNJAB:7E/3, Main Boulevard, Gulberg, Lahore

SINDH:Jubilee Insurance House, I.I. Chundrigar Road, Karachi

NWFP:1st floor, State Life Building, The Mall,

AZAD KASHMIR:Peshawar Cantt.

BALUCHISTAN:C.C. & I Building, Zarghoon Road, Quetta.

CIRCLESThere are 22 circles of ABL through out the country under which 46 zones are present. Their detailed is as follows:

City Circle KarachiZones 3

Branches 36

Sadar Circle KarachiZones 2

Branches 37

Nazimabad Circle KarachiZones 2

Branches 34

City Circle HyderabadZones 2

Branches 34

Commercial Circle HyderabadZones 2

Branches 37

Sukkur CircleZones 2

Branches 33

City Circle LahoreZones 2

Branches 47

Project Circle LahoreZones 2

Branches 29

Gujranawala CircleZones 3

Branches 73

Islamabad CircleZones 2

Branches 27

Rawalpindi CircleZones 2

Branches 43

Jhelum CircleZones 2

Branches 46

Faislabad CircleZones 2

Branches 46

Sargodha CircleZones 3

Branches 67

Multan CircleZones 2

Branches 66

Bahawalpur CircleZones 2

Branches 41

City Circle PeshawarZones 2

Branches 27

Cantt Circle PeshawarZones 2

Branches 47

Mardan CircleZones 2

Branches 31

Abbottabad CircleZones 2

Branches 38

Azad Kashmir CircleZones 2

Branches 50

Quetta CircleZones 1

Branches 36

Foreign Branches 4Total Branches 929

TRAINING ACADEMIESAllied Bank Limited has five training academies, two in Lahore, two in Karachi, and one in Islamabad. In these training academies the new as well as the existing staff get training. When a new employee comes in ABL then most often he is sent to any of these academies for training. The training period may be minimum of one-month upto maximum of one year. The training period depends upon the nature of the job. During the training the new employees are acquainted with all the necessary information about their jobs.

When any change occurs in the policies of the Bank, then the seminars are held in these academies in which employee as well as executives participate to get information about the new policies of the Bank. For example if the Bank policy regarding the financing schemes change then the Managers of the Advances Section are invited in these seminars. They learn about the new changes and then implement these changes in their branches.

In these academies a permanent staff is present for the training of employees. However, if requires, subject specialists are invited to deliver lectures on certain subjects. For example the Bank has a contract with Sajjad Associates which send its executives to deliver lectures on project financing. Exams are also held in these training academies.

ORGANIZATIONAL STRUCTURE (MULTAN CIRCLE)

ALLIED BANK OF PAKISTAN

JAHANIAN BRANCH

The Branch of ABL Ltd. is responsible to provide all services to its customer. This branch is located in Jahanian.

FUNCTIONS OF JAHANIAN BRANCH OF ABL LTD

There are following functions which are performed by Allied bank Limited Jahanian Branch.

ACCEPTS DEPOSITS

The Bank provides deposit facility to its customers. The types of deposits are:

a) PLS Saving Account:

In this type, the depositor shares profit and loss with the bank.

b) Fixed Deposits

They bear high profit, but these can only be withdrawn after a fixed period of time

c) Current Accounts

No profit is paid on these deposits but amount could be withdrawn without any restriction.

Branch Setup

REMITTING OF FUNDS

The Bank provides the facility to its customers for remitting large amounts of money in the form of bank drafts, T telegraphic Transfers and Mail Transfers to where ever the customers want.

Permalink Reply by M.Tariq Malik on December 12, 2011 at 10:44pm

The Senior Vice President heads the personnel department. Its head office is at Karachi. All the policies and rules, regulations etc. This department deals about personnel.

HIERARCHY OF POWERSenior Vice President.

Vice President.

Assistant Vice President.

Officer.

CATEGORIES OF WORKERSThe work force in the personnel department is as follows:

Officers

Clerical staff

Non-clerical staff

OFFICERSOfficers are designated according to their grades.

Executive grade.

Sr. grade-I

Sr. grade-II

Sr. grade-III

Officer grade-I

Officer grade-II

Officer grade-III.

CLERICAL STAFFCashiers

Assistants

Senior Assistants

Typists

Steno typists

Steno graphers

Telephone operators

Telex operators

Godown keepers

NON-CLERICAL STAFFDrivers

Messengers

Guards

Godown Chowkidars.

Sweepers

ELIGIBILITY CRITERIA FOR PROMOTIONS

From Clerical to Officers Cadre

QUALIFICATION LENGTH OF SERVICE

Graduate two years

Intermediate four years

Matriculate six years

From Typist and Stenotypist and Stenotypist to Stenographer Cadre

Confirmed staff in clerical cadre.

Required shorthand typing speed.

Stenotypist 80/45 words per minute

Stenographer 120/45 words per minute

From Clerical to Non Clerical Cadre

QUALIFICATION LENGTH OF SERVICE

Intermediate one year

Matriculate two years.

For the purpose of promotion it is important consideration that an employee has rendered service in rural areas.

PROBATIONARY PERIOD

The probation period varies for various posts. It is usually from 1 to 2 years.

CONFIRMATIONS

After the probation period comes the confirmation period. The branch manager refers him/her for confirmation. The confirmation of various post rights rests with the zonal/area chief. For big posts the confirmation is centralized by central office Karachi. Confirmation is made after 1 year of probationary period.

PHYSICAL ACTIVITY

The personnel department also takes case of physical activities of the employees. They encourage the employees in physical games like cricket,

Football, tennis, hockey etc. They hold regional and zonal competitions. For

Publicity purposes the bank also employs famous players to play on behalf of the bank. In this way the bank on the other side provides financial help to our talented boys.

EMPLOYEES MATTERS

ABL policy is very socialistic about its employees, its motto is:

“Every employee is the owner of the bank”

Literally the bank has given power to even an officer to sell the ABL assets; the authority of an employee is unlimited. This attitude encourages the employees to get most involved in to the bank affairs. ABL also provides lot of facilities to the employees. Here is a list of loans and leaves, which can be granted to the employees:

LEAVES

Casual leave

Sick leave

Maternity leave

Disability leave

Privilege leave

Extra ordinary leave

Hajj and Ziarat leave

Leave preparatory leave

CAUSAL LEAVE.

One can take fifteen days causal leave in one year, five days maximum at a time. The unvalued leaves are not granted in coming next year. These leaves should be availed in the respective year.

SICK LEAVE.

There is a criterion for sick leave.

With full pay the staff can take 12-month sick leave in the entire service of his life with out pay the staff can request the sick leave, as he/she requires.

MATERNITY LEAVES.

The maternity leave is granted once in three years. It’s for female employees. It varies from 15 days to three months. The bank gives full pay during the leave.

DISABILITY LEAVES.

The disability leave is conditional to following rules:

The disability is caused during the service of the employee.

It is brought into the notice for prompt action with in three months of its occurrence.

Its period lies between one day to 24 months as recommended by the doctor.

Six month pay is granted and afterwards its half pay.

PRIVILEGE LEAVES.

Privilege leave is granted one per eleven days in a year and accumulated up to 90 days.

EXTRAORDINARY LEAVE.

This leave is with out pay. When sick leave is unsatisfactory or some special occasions occurs, when no leave is due then the extra leave is granted.

HAJJ AND ZIARAT LEAVE.

It is provided after completing five years of the service. Its period extends to one month. It’s on full pay basis.

PREPARATORY AND RETIREMENT LEAVE.

It’s the kind of leave which is allowed to a person retiring from the service for the period of leave earned and due up to 90 days.

· AUTHORITY FOR LEAVE SANCTIONING

Causal and privilege leave or sanctioned by mangers, zonal chief, but all other is dealt in the central office Karachi.

PROMOTION PLANS

OFFICERS.

Normally promotion is done on seniority basis. A promotion is due after a person has completed three years in the same grade.

CLERICAL AND NON CLERICAL STAFF.

It’s on the basis of their length of service and the written tests and qualifications.

QUALIFICATION LENGTH OF SERVICE

Matriculate. Six years service.

Intermediate. Four years service.

Graduate. Two years service.

More over interviews and tests also contribute in promotion.

LOANS FOR EMPLOYEES

Allied Bank has a long list of loans, which it offers to its employees. The hire the post is, the more facilities are given to the employees.

Loans are as follows.

PROVIDENT FUND LOAN.

Provident Fund loan is loan which is given after the retirement of the employees. Its is equal to own contribution plus the interest on the amount. Three basic salaries plus banks own contribution.

OLD OPTION BENEFITS .

In P.F.L a lumps is taken in this case and the pension is not given.

New option benefit.

In case of option pension, loan against general provident fund is allowed equal to own contribution and 3 months basic salaries.

CONVINCE LOANS.

The convince loan include scooter loan, car loan, cycle loan. Etc.

The car loan is equivalent to 12 basic salaries, which is sanctioned to officers, executives drawing basic salary of. RS. 1250. Month. Such loans bear interest of ten 10% pa. They are recoverable in 120 monthly installment

MOTOR CYCLE LOAN.

Such loans are sanctions to lower grade officers and clerical, non-clerical staff. The limit of the loan is not more then Rs. 10,000. It is conditioned that the employees have completed 3 years of service in the bank. Motor Cycle loan is interest free loan.

HOUSE BUILDING LOANS.

This loan is given if the employees have completed of full 5 years of service, as a confirmed officer. It is equal to 80 months salary.

FACILITIES

MEDICAL FACILITIES

Banks provides medical facilities to its employees. It also has fixed amount, which is limited in order for tremens of employees. The record of medical expenses is maintained at zonal office and monthly statement is sent to central office Karachi.

TRAVELLING ALLOWANCE

There is facility of TA. /DA. For employees who go on official visit out side the city.

EDUCATION ALLOWANCE

Education allowance is given to the children of the employees and employees as well. The maximum allowance for one employee will be RS. 450. App. Per month for maximum three children.

HOUSE ALLOWANCE (RENT)

House rent allowance is upto 90% of basic salary at all stages. The house rent allowance differs according to the areas and its rates.

LOCAL COMPENSATORY ALLOWANCE

Local compensatory allowance is given in accordance with areas of work such as Islamabad and Karachi maximum Rs. 200 and at Lahore, Rawalpindi, Peshawar and Quetta it is Rs.100 per month.

CONVEYANCE ALLOWANCE

The conveyance allowance is given to the employees in accordance of their designation.

DOMESTIC SERVICE

The Allied Bank provides the services to top men in the bank such as Executive Vice President, Sr. Vice President, Vice president and Asst. Vice President etc.

They also provided by Mali/Chowkidar and furnishing the house is also bank facility.

TELEPHONE ALLOWANCE

There is fixed amount of telephone bills for executives/officers, which is paid every month to them.

PENSION/GRATUITY FACILITY

The pension is given when an employee completes his ten years in the bank. The gratuity is given if employee qualify the rules then he can ask for the pension of 15 year at one go.

PROMOTIONS

Upto clerical staff the promotions are on tests and their daily work/efficiency and their length of service. The promotion of officers is with seniority.

RECRUITMENT

After the Privatization of ABL central office at Karachi is dealing with the appointments to different officers posts. And the central office also fills other executive posts. For certain posts the executives also have right to appoint the qualified persons. But the main criteria of appointment are by test and interviews.

Allied Bank has a criteria already prepared for the appointments of employees. the criteria involve:

Academic work.

Extra curricular activities

Working experience.

The candidates must be the citizens of Pakistan and the state of Jammu and Kashmir should not be more than 25 and less than 18. However in certain cases the age can be relaxed. Normally the citizen for under developed areas of Pakistan has the age relaxation. The executives also have the power to employ an over age person etc.

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Reply by M.Tariq Malik on December 12, 2011 at 10:45pm

Advances department of a bank provides many facilities to various individuals and businessmen against charging the interest from them.

It is the usual practice of the back level it examines the perusal characteristics of the borrower and the reputation and scope of the business, he is doing or going to start.

However, there are there ways normally used to seem the account.

1. Pledge

2. Mortgage

3. Hypothecation

1. PLEDGE

Pledge is a contract between the borrower and the back whereby the goods are transferred into the banker's possession while the ownership remains in the possession of the borrower. This possession remains with the bank until the payment of loan is dully made. In case of default, the back can sale the goods after giving the notice.

2. MORTGAGE

Mortgage is a contract whereby the interest in any specified immovable property is transferred to the banker in order to give the security for the payment of debts.

3. HYPOTHECATION

Hypothecation is a term where goods are charged for the purpose of security. But the possession and ownership remains with the owner of the goods.

CATEGORIES OF ADVANCES

The bank can make the advances in the following three ways.

1. Overdraft

2. Loan

3. Cash Credit

1. OVERDRAFT

Under such arrangement the customer is allowed to withdraw the amount excessive from his balance. But the limit of amount is sanctioned by the manager and given for a fixed period.

2. LOAN

When the bank make the advances in a lumpsum, to be repaid in lumpsum or in forms of installments with interest at any future date, is known as loan. These loans may be of short and long term.

3. CASH CREDIT

These advances are made against the security of the goods which may be made like in the form pledge or hypothecation. The bank credits the borrower's account with the amount making as loan. The amount can not be withdrawn in lumpsum. While interest is paid on the amount withdrawn from the bank.

TYPES OF LOANSThe Bank provides the facility of two types of financing.

1. Funds based Financing

2. 2. Non Funds based Financing

FUNDS BASED FINANCINGThe type of Financing in which the funds of the Bank are directly involved is called Funds based Financing.

There are following types of Funds based Financing.

· Running Finance

· Cash Finance

· Demand Finance

· Demand Finance against Foreign Currency Account

· Demand Finance to Staff

· Finance Against Local Manufactured Machinery

· Allied Equity Building Plan

· Unorganized Sector Financing Scheme

· Housing Finance

· Agricultural Finance

· IDA Financing

· Consortium Finance

· Finance Under Small Business and Small Industries

· Overseas Employment Financing Scheme

· Finance Against Trust Receipt

· Term Finance Certificates

· Finance for Government Operations

1. RUNNING FINANCEPURPOSERunning Finance is short-term loan usually given for the working capital management. The running finance is suitable for meeting day to day financial needs of the Business. The running finance account can be operated and daily sale proceeds can be deposited into the account.

SECURITYThe Bank requires following types of securities in running finance.

PRIMARY SECURITYThe primary security requires by the Bank is stock. Bank hypothecates a specific amount of stock, that is, stock remains in the custody of borrower, but the lien is of Bank. The borrower is responsible for keeping and managing the stock well and providing the regular stock reports to the Bank. The Bank advances a certain percentage of the value of the hypothecated stock as loan after keeping some margin.

PERSONAL GUARANTEESUnder the SBP laws, ABL can give the loan to the extent of Rs. 50,000 on two personal guarantees along with the primary security.

PRINCIPLE SECURITYIf the loan required by the borrower is greater than Rs. 50,000 then the Bank requires some collateral security along with the Primary security. The security taken as collateral is usually immovable. However, according to ABL laws, the agricultural land cannot be taken as collateral security. In some rare cases it may also happen that a creditworthy firm may keep some moveable security as collateral but provided that it is very easily encashable, e.g. defense saving certificates etc.

MARK-UPNormally the cost of running finance is 14% but it is negotiable and may vary. 1-% rebate is given to a client who gives three times more business to Bank than his limit. Furthermore, 1% more rebate is given to a client who exports three times more than his limit.

Limit means the maximum amount of finance, which is sectioned from the Bank authorities in favor of client.

PERIODRunning finance is usually given for a period of one or less than one year.

REPAYMENT SCHEDULEThe borrower has to repay the loan on the daily sail proceeds of stock. It is necessary for the borrower to adjust the account on the date of expiry of loan period. However, Bank may give a period of one month after the maturity of loaning period, so that the borrower may repay the loan during this period. This period is called ‘Date of Final Adjustment’.

2. CASH FINANCEINTRODUCTIONCash finance is the account of the Bank. It is like the current account. In this account a certain amount of cash is available for the borrowers at all the times. A limit is first sanctioned to the borrower and then, on his needs, the amount is transfer from cash finance account to the borrower’s current account from where he can withdraw the money. This transfer of cash from the Bank’s cash finance account to the borrower’s current account is just the paper transaction and the borrower takes the finance in no time. The borrower can take finance unto his limit sanctioned by Bank’s authorities. However, the Bank cannot keep the cash finance account greater than 30% of its equity.

PURPOSECash finance is normally giver for seasonal needs e.g. in Cotton season, Rice season etc. But in some cases it can be given for regular needs.

SECURITYFollowing securities are required by the Bank.

PRIMARY SECURITYThe primary security required by the Bank is stocks. But unlike running finance, in which the stock is hypothecated, here the stock is pledged by the Bank. The stock pledged is kept with

the Bank at the cost of the borrower. Usually the stocks are kept at the warehouses of the Borrower Company, but certain representative of Bank as Inspector is always there to keep a check on the stock. The Bank advances certain percentage of the pledge stock after keeping some margin.

PRINCIPLE SECURITYLike running finance, some collateral security is taken as principle security.

MARK-UPThe Mark-up of cash finance is normally 14%, but is negotiable.

PERIODThe maximum period for cash finance is one year.

REPAYMENT SCHEDULERepayment of the loan is made after the completion of loaning period, along with the markup.

3. DEMAND FINANCEPURPOSEDemand finance is usually given for the financing of new Projects. For example, if a person wants to open the Floor mill or textile mill, he can get the demand finance from the Bank.

MODE OF FINANCEDemand finance is given in installments to the borrower. First installment is given to purchase the land, then second installment is given for the construction of building and finally the remaining amount is paid to the supplier to install the Machinery.

SECURITYThe Bank requires the following types of securities.

PRIMARY SECURITYNo primary security is required as the finance is given for the new projects and the Borrower Company has no existing stocks with it.

PRINCIPLE SECURITYLike running and cash finance, some collateral security is required as principle security. This collateral may be land, building or machinery.

MARK-UPNormally 14% but negotiable.

PERIODDemand finance is usually given for the long-term period e.g. for two years, five years or even upto fifteen years.

REPAYMENT SCHEDULEThe repayment of loan is made in installments. A grace period of one year is given, after the maturity of loaning period. But this grace period can be extended to two years. The installments may be quarterly, semi annually or annually. The markup is also included in these installments.

IMPORTANT FEATUREDemand finance is given on the basis of debt equity ratio which 40-60. It is standard ratio. It means that a borrower can finance 60 percent of its project cost through demand finance scheme. But the remaining 40 percent should be financed himself.

4. DEMAND FINANCE AGAINST FOREIGN CURRENCY ACCOUNTPURPOSETo attract the foreign currency, ABL has offered this scheme. This scheme is useful for those Foreign currencies account holders who don’t want to incash their currency, but at the same time want to start a new project. So they can get the required finance against their foreign currency.

SECURITYThe security for this scheme is the foreign currency of the borrower, which is prevailing in his foreign currency accounts. The Bank advances a certain percentage of the foreign currency as loan after keeping its margin. The Bank charges a Lien on this Foreign Currency Account of the borrower.

MARK-UPMark-up of this scheme is 13.0%.

PERIODDemand finance against foreign currency is given for one-year period.

REPAYMENT SCHEDULENo installments are made on the repayment of the loan. After the completion of the loaning period (i.e. one-year) he whole amount along with the markup is paid back.

5. DEMAND FINANCE TO STAFFPURPOSEThis scheme has been started to give the benefit only to the employees of Allied Band Limited. If any employee of ABL wants to start a new project then he will be given the demand finance on the priority bases.

SECURITYSome collateral security is required such as land building or machinery.

MARK-UP AND PERIODThe Mark-up is less than 14% but not fixed. The demand finance to staff is given for long term period. It may be upto 15 years.

REPAYMENT SCHEDULERepayment is made in installments. The installment may be quarterly, semi annually or annually.

6. FINANCE AGAINST LOCALLY MANUFACTURED MACHINERYPURPOSEThis scheme has been started by State Bank of Pakistan. The basic purpose of this scheme is to encourage the local manufacturers and to boost up the local industry. Usually people buy the machinery of out side the country due to non-availability of that in Pakistan. To produce the machinery in the Pakistan this scheme is introduced so that people will buy it from their own country.

SECURITYLand, building and machinery are mortgaged with the Bank.

MARK-UPTo encourage the investors the Mark-up on this scheme is comparatively very low, which 12.0%.

PERIODThe maximum period for which this finance is given is 8 years. A grace period for the repayment of loan is also given which is maximum of two years.

REPAYMENTThe repayment of loan is made in installment, which may be semi annually or annually. The amount, which the ABL finances to borrower, is refund to it by SBP. The ABL acts only as the Sponsor. So the periodic installment of the repayment of the loan are paid back to SBP.

PROCESS OF GIVING THE FINANCE TO THE BORROWERAccording to the scheme the total finance is not given to the borrower once. Instead of it, he is given the finance in three different installments and these installments are subjected to the installation of the machinery. Allied Bank Limited has no recognized supplier (manufacturer of machinery). So the client himself goes to any supplier, gets quotations of machinery from him and shows these quotations to the Bank. Then the Bank’s Engineers visit the supplier and examines his capability of installing the machines. After his approval, the quotations are accepted and loan is sanctioned to the borrower. As a first installment, a cheque of normally 30% of total finance is given to the borrower. In response the supplier installs the 50% of machinery. After this, another cheque of 40% of total finance is given to the borrower and at this time the supplier installs the remaining 50% of machinery. The remaining 30 % of finance will be given to the borrower when the project starts working.

7. ALLIED EQUITY BUILDING PLANPURPOSEThe equity building plan has specially been designed to help accelerate the industrial pace in the country. The plan is primarily designed to provide financial assistance to those

professionals, technocrats and overseas Pakistanis who are planning to set up their own industrial units.

Through this executive plan the investors will be able to build up their 30% to 40% equity over a specific period of time and after taking 60% to 70% from the Bank, will be able to put up their own industrial projects.

SALIENT FEATURESEquity investment can be made both in local as well as well foreign currency.

Plan periods are 3 years and 5 years in local currency and 18 months 24 months in foreign currency.

Minimum monthly deposit in local currency for 3 years plan would be Rs. 8,000 and for five years Rs. 5,000. For both plan periods the monthly deposits would be acceptable in the multiple of Rs. 1,000.

Minimum monthly deposit in U.S. Dollars would be $ 680 and $ 515 for 24 months and 18 months plan period, respectively. Similarly, minimum monthly deposit in Pound Sterling would be 360 Pounds and 280 Pounds for 18 months and 24-month plan period, respectively.

At any stage if the customer decides not to invest his funds in a project, he shall be offered to place his funds in any other scheme of the Bank.

ADVISORY FACILITYThe Bank will also extend on request of the investors’ consulting/advisory facility in selection of project free of cost.

RATE OF RETURNThe deposit installments for the first year will be placed in PLS-SB Deposit Account and thereafter transferred to PLS-TDR Account for the remaining period of investment. The rate of return on PLS-SB and PLS-TDR will be in accordance with the half yearly rates of profit declared by the Bank. The rate of profit as announced by Bank on 31st December 1997 is 8%.

8. UNORGANIZED FINANCING SCHEMEPURPOSEThis scheme has been started for the following purposes:

To assist the entrepreneurs in the Unorganized sector and to increase their productivity.

To encourage expansion in employment level within the Unorganized sector.

To participate in community development work and help build country's economy through the Unorganized sector.

SALIENT FEATURESThe scheme aims at elevating and enhancing the earning capacity of small men.

Under the scheme, financial assistance is provided to individuals or group of individuals requiring capital to establish a new business or expand his existing enterprise.

FINANCING UNDER THE SCHEME.The financial assistance will be given for meeting working capital requirements and fixed investments. Under this scheme the maximum amount of financial assistance to the individual borrower is Rs. 25,000 and to group of borrower is Rs. 50,000. This loan can be obtained from designated zonal offices and branches of Allied Bank throughout the country.

9. HOUSING FINANCEPURPOSEThe Bank extends Housing Finance to customers, under the scheme envisaged by the State Bank of Pakistan. The housing finance can be given for the following purposes:

* For the construction of new houses or flats.

* For the purchase of new houses or flats.

SECURITYThe housing finance is given to the customers against the mortgage of land or building. The mortgaged land may that one on which the hose is to be built or it may be any other.

LIMITThe housing finance can be made to a person once in his or her lifetime. The finance is considered for an amount of more than Rs. 150,000 and up to Rs. 300,000. The finance is admissible maximum up to 60% of the value of the house or flat to be constructed or purchased.

PERIODThe housing finance is given for a maximum period of 15 years.

REPAYMENTThe hosing finance is repayable in the installments and has to be paid back during the maximum period of 15 years.

10. AGRICULTURAL FINANCEPURPOSEBank under agricultural financing scheme envisaged by the State Bank of Pakistan extends short, medium and long-term credit. The Bank gives two types of credits, i.e. farm and non-farm credit. Farm credits are extended for production (inputs) and the development purposes. Non-farm credits are allowed for livestock (goats, sheep and cattle), poultry, factory including social forestry and fisheries (inland) and marine excluding deep-sea fishing).

LIMITAgricultural finance is given on the basis of cultivated area. Bank normally advances Rs. 2,000 per acre (cultivated). But this amount varies from crop to crop i.e. different for "Rabbi" and "Kharif" crops.

PERIODThe agricultural finance is given for both short and long-term periods.

RATE OF MARKUPFor short-term agricultural finance the rate of markup is 11%. For long term and high value financing, the rate is normally 14% but it is negotiable.

TYPE OF LOAN MARK-UP

Production loan (including sugar cane loan) upto the maximum of Rs. 25,000/-

12% per annum

Production loan (including sugar cane loan) above Rs. 25,000/-

12% per annum

Production loan (including sugar cane loan) upto Rs. 50,000/- against guarantee of two creditworthy parties.

14% per annum

Financing against guarantees of Processing Units

14% per annum

Tractor 11% per annum

Other development loans 13% per annum

11. INTERNATIONAL DEVELOPMENT AGENCY FINANCING.PURPOSEInternational Development Agency provides finances to the different Banks in Pakistan to encourage the industry. These Banks then forward this finance to their customers. Allied Bank also has such financing scheme. IDA gives this finance on concessional rates, normally ranges from 6% to 7%. ABL then gives this finance to its customers.

SECURITYThe Bank gives this finance by mortgaging land, building or machinery.

MARK-UPThe Bank charges 14% markup on this financing. From this 14%, SBP charges 2-3% from the Bank.

PERIODIDA finance is given for long term basis. The maximum period of this financing is 10-12 years.

REPAYMENTRepayment is made on installments, which may be semiannually or annually.

12. CONSORTIUM FINANCE.When the project cost is high, usually several banks under a lead bank form a consortium to finance the project. ABL participates in such consortium financing. The Bank itself has constituted such consortium and is playing a lead role. The Bank is a lead bank in multimillion consortium financing to Pakistan Steel Mills Corporation, Sui Northern Gas Pipelines Limited, etc.

13. FINANCE UNDER SMALL BUSINESS & INDUSTRIES.ABL has started this scheme in order to support the small business owners, e.g. welders, electricians, etc. The Bank advances the loan of minimum Rs. 25,000 and of maximum Rs. 50,000. The loan is repayable in installments which may be quarterly or semiannually.

If some one wants to start a very small business, e.g., a shopper making factory, a plastic toys making factory, etc, then he can take finance from the Bank through this scheme. The maximum limit of finance given by this scheme is of Rs. 300,000.

14. OVERSEAS EMPLOYMENT FINANCING SCHEMESALIENT FEATURESThe scheme extends financial assistance to emigrants going abroad for employment through Overseas Employment Corporation (CEO) in meeting their preliminary expenditures.

The maximum finance of Rs. 15,000 and Rs. 25,000 is made available to unskilled and skilled emigrants, respectively.

The scheme also covers doctors, engineers, professors and highly technical individuals.

REPAYMENT SCHEDULEThe finance under the scheme is repayable in ten equal monthly installments.

The first installment is payable within 60 days from the date of financing.

ELIGIBILITYPersons only drawing salary equivalent to Pak Rs. 5,000 p.m. And above will be eligible for availing the finance under this scheme.

The applicant will undertake to regularly canalize home remittance through Allied Bank or its Correspondent bank.

15. FINANCE AGAINST TRUST RECEIPTThe Bank delivers the imported consignment to the importers against the execution of the trust receipt by him. Suppose an importer imports certain commodities, from abroad through Bank L/C. But it has not the enough finance to release the documents from the Bank and in turn release the consignment. So he asks the Bank to release his documents and he will repay the Bank’s amount from the sale proceeds of the consignment. In turn, he deposits the receipts of the sale proceeds to the Bank. This is called finance against trust receipt.

16. TERM FINANCE CERTIFICATESTerm finance certificates are redeemable equity based instruments issued by the Bank. In TFC the rate of markup is determined through mutual agreement between the Bank and the Sponsors of the company in between the minimum and maximum rates determined by the SBP. The TFC may be for short or long terms.

17. FINANCE FOR GOVERNMENT COMMODITIES OPERATIONSThe Bank gives finance to the Government for purchase of different commodities. The Government then sells these commodities and repays the loan to the Bank. For example Bank may give finance to the Government to import wheat and when Government sells this wheat to the floor mills, it repays the loan to the Bank.

In addition to above mentioned financing schemes, the following finances schemes are also available, which will be discussed in Foreign Exchange Department.

Export Finance

Finance Against Foreign Bills Negotiated

Finance Against Foreign Bills Purchased

Finance Against Documents (Sight)

Finance Against Imported Merchandize

Finance Against Inward Bills purchased

NON-FUND BASED FINANCINGThe type of financing in which the funds of the Bank are not involved is called "Non-Fund Based Financing". Under non-fund based financing, the following schemes are available in Allied Bank Limited.

Letter Of Guarantee

Performance Bonds

Bid Bonds

Letter Of Credit (Inland)

Letter Of Credit (Import)

1. LETTER OF GUARANTEEThe Bank issues the letter of guarantee in local and foreign currency and thereby undertakes the responsibility on behalf of the customer for the debt, default or miscarriage by the customer, whether such requirement is domestic or overseas. There are many types of Letter of Guarantee.

Suppose a person wants to purchase pesticides from Pan Pacific on credit and Pan Pacific says to him that we will provide you the pesticides, if you give us the bank guarantee, so that if you will not be able to pay the amount on the specific date, the bank will pay the amount on your behalf. So that person will come to the Bank and the Bank will give him the guarantee after fulfilling its requirements.

The Bank also issues the Letter of Guarantee in favor of collector of custom. Suppose person imports some inventory as raw material, but the collector of custom says that this imported inventory is not the raw material but the finished goods. So he charges the custom duty on this inventory by considering it as the finished goods. As the custom duty on the imported finished goods inventory is more than the raw material, so the importer will protest it and the matter is taken to the court. Now the court asks the collector of custom to release the inventory of importer and at the same time ask the importer to give the bank guarantee in favor of collector of custom. So the Bank gives the guarantee that if later on the court gives the decision against the importer, he will pay the full duty. If he becomes default, then the Bank will pay the amount.

SECURITYThe Bank issues the Letter of Guarantee by either mortgaging the security or keeping the security as collateral. Besides this, the Bank may also issue the Letter of Guarantee by hypothecating the stock. The type of security depends upon the credit worthiness of the customer.

PERIODNormally the Letter of Guarantee is issued for the period up to 1 year.

COMMISSIONThe Bank charges a commission fee on the issuance of Letter Of Guarantee which is o.45% quarterly.

2. PERFORMANCE BONDSPerformance Bond is a type of guarantee which a Bank issues in the favor of technical know how of its customer. Suppose a person engaged in construction, made an agreement to construct a building within six months. Now suppose, if the owner of the building is not satisfied with the technical ability of the constructor and he is not sure that the constructor will be able to construct the building within six months, then he may ask the constructor to make

him available with the Bank guarantee. Now the Bank issues the performance bonds on seeing the technical abilities of the customer and gives guarantee that he will construct the house within a period of six months.

3. BID BONDSBid bond is also a type of guarantee that is issued in support of the customer who is getting a contract from any company. Suppose a person gets a contract from corporation of worth one million and promises to pay the amount of contract in four installments. But the corporation may ask him to give the Bank guarantee. So the contractor comes to the Bank and the Bank issues the Bid bond in his favor and gives guarantee that the contractor will pay the amount of contract. Bid bonds are issued in both local and foreign currency.

The following non-funds based schemes will be discussed in foreign exchange department

Letter of Credit (Inland)

Letter of Credit (Import)

RECOVERY OF LOANSIf the loans are not returned within their maturity period, then Bank adopts the following process.

First of all the Bank will personally request the customer to repay the loan.

After this, first legal notice is sent to the customer. If the customer does not respond to this first legal notice, then after fifteen days the second legal notice is sent to him.

In the third step the Bank sue the customer in the court. Two types of courts have been setup under two difference ordinances, especially to hear and decide recovery suits i.e.

1. Special Courts (banking)

2. Banking Tribunals

Special courts were established under the banking companies (recovery of loans) ordinance 1979 to hear allowed interest-based system of Financing.

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Reply by M.Tariq Malik on December 12, 2011 at 10:45pm

INTRODUCTIONIn the very beginning of this era people were not aware of foreign exchange. All the foreign money was kept at hand and this idle money did not contributed in the Pakistan economy at that time. But in 1991 foreign department introduced was introduced by the government of that time. After being introduced people deposited their currency in the Bank. It was the amount equal to the total Pak Rupees that were in the circulation in the economy of Pakistan.

After the foreign currency accounts were opened, the economy gradually improved because foreign currency contributed a lot. Before the facility of foreign currency accounts, nearly 60% foreign currency was held by the people as idle.

ABL FOREIGN CURRENCY ACCOUNTSIn Allied Bank Limited, Foreign Currency account can be opened in four major currencies.

US Dollar

Sterling Pound

Japanese Yen

Deutsche Mark

CRITERIA FOR OPENING FOREIGN CURRENCY ACCOUNTThere are not hard and fast rules for becoming the Foreign Currency Account holder. Bank wants only introduction of the Client and very little about the background. I.D card is also not necessary, if someone has; well and good, otherwise no restriction will be there for him. Minimum requirements are not also fixed F.C.Accounts. It can be operated by 10$ only. But other Banks may have some limits on minimum requirement.

INCENTIVES TO FOREIGN CURRENCY ACCOUNT HOLDERSThe following incentives will be granted to the Deposit Holders who maintain a Foreign Currency Deposit with minimum balance of US. $50,000/- or Japanese Yen 5,000,000/- pr P. Stgk.35, 000/-or D.M 75,000/-

The branches Authorized to deal in Foreign Exchange and maintain Foreign Currency Accounts will ensure that the following services will be rendered by the bank to the Foreign Currency Account Holders in above category, free of charge/or reducing the commission in certain transactions as mentioned against each item.

Issuance of Foreign traveler Cheques to the Account-holders to the debit of there Foreign Currency Accounts.

Remittance abroad through Foreign Currency Accounts commission @US $2/-per US 1000/and telegraph transfers charges are 200/-

Issuance of Balance Confirmation Certificates (free of charge)

Delivery of Cheque Books Registered Mail (free of charge)

Issuance of Proceeds Realization Certificates (free of charge)

FEATURES OF FOREIGN CURRENCY ACCOUNTS.There will be legal protection for the account holders.

According to foreign exchange rules and regulation every citizen of Pakistan, either within the Pakistan or outside the Pakistan, can open the foreign currency account.

Resident firms and Resident Companies including investment Banks can open Foreign Currency Accounts.

All foreign nationals and foreign Companies in Pakistan or abroad can open Foreign Currency Accounts.

Opening of Foreign Currency Accounts in the joint names of residents/non-residents is permissible. Foreign Currency can be deposited by:-

* Remittance received from abroad

* Traveler Cheques

* Foreign Currency Notes

* Foreign currency bearer Certificates

There will be no restriction and questioning to him about the currency, which he wants to deposit that from where he got that money.

No Zakat will be deducted on these accounts; no Income Tax deduction, no Wealth Tax deduction will be there.

These incentives reinforce and motivated the people to invest in foreign currency accounts rather to keep the foreign currency idle.

Foreign currency accounts can easily be transferred from one person to another, one place to another, with in the ABL Branches or in other Bank. This facility is not available in Pak Rupee account.

The account holder can transfer the funds freely, in any currency to any part of the world.

Traveler Cheques can be issued for abroad to the account holders without any limit.

Foreign currency Accounts can be used for payment of purchases at Duty Free shops.

Foreign Exchange Bearer Certificates and U.S. Dollar Bearer Certificates can be purchased from Foreign Currency Accounts.

FOREIGN DEPOSITS SCHEMESDeposit Schemes of Foreign Currency Accounts are very much related with Pak Rupees Accounts such as saving deposit, current deposit and fixed deposits.

SAVING ACCOUNTSIn these accounts there is no Minimum limit for opening the account and the Bank offers certain rates of interests on all Foreign Currency Accounts.

RATE OF INTERESTS ON SAVING ACCOUNTSFor Dollar, 6.5% rate of interest is offered

For Sterling, Pound 8% rate of interest is offered

For Deutsche Mark, 4.2 % rate of interest is offered

For Yen 1% rate of interest is offered

FIXED DEPOSITSPERIODFixed deposit facility is also provided to clients. These deposits can be for three months, less than six months, six months, less than twelve months, twelve months, two years, three years, four years and for five years.

Rate of InterestRates of Interests are different for different Currencies for different Periods.

CURRENT DEPOSITSMultiple withdrawals of any part of balance can be made on demand. Funds can be credited into the current deposit account in the form of cash, Cheques and other financial instruments drawn on any bank or other branch of ABL. The current account is suited to meet both domestic and business requirements of the customer.

FINANCING SCHEMES

In foreign exchange department both Fund-based and Non-fund based Financing schemes are present. First Non-based financing schemes are discussed.

Non-fund based Financing schemesLetter of credit (Import)

Letter of credit (Inland)

First of all Letter of Credit is explained.

LETTER OF CREDITLetter of credit (L/C) is the type of guarantee, which the Bank extends on behalf of its customer in favor of the exporter.

PROCESS OF L/CSuppose a person wants to import certain commodities from abroad. He asks the export to send the commodities and he will pay the amount later after receiving the commodities. But the exporter asks the importer to give him the Bank guarantee. Suppose the importer is the very loyal and creditworthy customer of ABL, so he will come to ABL and will ask the Bank to open a letter of credit in favor of exporter. The Bank will now issue a letter of credit in favor of exporter on behalf of its customer and promises to stated amount if the customer becomes default. In return the Bank keeps some security from the customer. This security may be any property, machinery etc. The Bank will send this letter of credit to its any correspondent Bank in that country and asks the Bank to give this L/C to that exporter. The L/C contains specifications of the imported commodities along with other necessary details. Now the correspondent Bank will inform the exporter about the L/C. The exporter will receive the L/C and after seeing all the requirements of the contract, ship the commodities to the importer according to specified manner discussed in L/C. After shipping the commodities the exporter will go to the correspondent Bank or any other Bank and will receive money after handing over the documents to the correspondent Bank. The correspondent Bank will give him the money after analyzing the documents of shipment. Then correspondent Bank will send a covering letter and documents of shipment to the Allied Bank Limited. This covering letter specifies that the correspondent Bank has given the amount to the exporter and documents of shipment are sending to ABL. After receiving the documents ABL contacts the importer and tell him that his commodities have arrived and his documents of consignment are with the Bank. Now he can take these documents of shipment by paying the specified amount of L/C to the Bank and can release his consignment. The Bank charges certain rate of commission on the days, which start from the payment to exporter by the correspondent Bank till the day of payment by the importer. This is called Letter Of Credit Import.

TYPES OF L/CThere are many types of L/Cs but two are of most importance.

SIGHT L/CIf the L/C specifies the payment to the exporter immediately after the shipment of consignment to the importer, then it is called “Sight L/C”.

USANCE L/CIf the L/C specifies the payment to the exporter within specific period of time after the shipment of consignment to the importer, then it is called “Usance L/C”.

L/CS ESTABLISH BY ABLABL establishes following kinds of confirmed and irrevocable letters of credit.

Sight credit

Usance letter of credit

Reimbursement letter of credit

Revolving credit

Transferable credit

Deferred payment standby L/C

Term credit

Negotiation credit

LETTER OF CREDIT (IMPORT)The Bank in order to finance commerce and trade, extends its prestige financial strength by establishing overseas letters of credit, on behalf of the customers and thereby undertakes to pay the amount stated on the letter of credit or accepts a bill of exchange on behalf of customer, in return for delivery of the commercial and shipping documents.

LETTER OF CREDIT (INLAND)The Bank, in order to finance trade and commerce within the country establishes inland letter of credit and thereby undertakes to pay the amount stated on behalf of its customer, in return for the delivery of commercial and other documents provided there documents are strictly in accordance with the terns and conditions of the letter of established by the Bank.

Fund based Financing SchemesAmong fund based financing schemes, the following schemes are present:

Export Finance

Finance Against Foreign Bills Negotiated

Finance Against Foreign Bills Purchased

Finance Against Documents as Security

Finance Against Imported Merchandise

Finance Against Inward Bills purchased

1. EXPORT FINANCEThe Bank makes available finance for export. This finance may be pre-shipment or post-shipment.

PRE-SHIPMENT FINANCINGThe pre-shipment finance is to meet the financial requirements of the export order before shipment. Suppose a person who exports certain commodities to various countries, receives a huge order to export. The importer will send him the L/C through his Bank, which has many correspondent banks here. Let ABL is one of them. Now if the exporter has not enough finance to meet the export order, then he will come to ABL and will get the financing against L/C of the contract and by pledging some security. After shipping the consignment to the importer, the exporter will take the documents of shipment to the Bank and will ask it to collect the amount from importer. This is pre-shipment financing.

POST-SHIPMENT FINANCINGThe Bank makes post-shipment finance available after shipment of export consignment. Usually in case of usance L/C, the post-shipment financing is made.

Suppose an exporter has usance L/C in his favor which shows the payment of exported consignment after a period of say 6 months, but the exporter needs money now. So he will go to the Bank and ask them to purchase or the shipping documents and give him the finance. So the Bank will give him the finance by purchasing the shipping documents. This is post-shipment financing.

2. FINANCE AGAINST FOREIGN BILLS NEGOTIATEDWhen the exporter exports the commodities and gets the L/C from the correspondent Bank of the importer’s Bank let it be any Bank other than ABL and the L/C is open L/C. Now after the shipment of exported consignment the exporter has the option to negotiate the shipping documents with any Bank and gets the amount of exported commodities. Suppose it comes to ABL. Then ABL on seeing the repute and good will of the importer’s Bank will negotiate the shipping documents and will give the finance to the exporter.

3. FINANCE AGAINST FOREIGN BILLS PURCHASEDSuppose the importer sends the usance L/ C in favor of exporter here. The usance L/C specifies the payment to the exporter after the 6 months. But if the exporter wants to get the amount now. So he will go to the Bank and asks the Bank to purchase the documents. Now the Bank will purchase the documents at discount and give him the finance. The difference between the purchase price of these foreign export bills and the amount due against these foreign bills is the profit of the Bank.

4. FINANCE AGAINST DOCUMENTS AS SECURITYIn this type of financing the Bank accepts shipping documents from the exporter and finance against that documents by seeing the worth of the documents. It keeps the documents as security but not purchases it. Bank also takes some security by the borrower.

5. FINANCE AGAINST INWARD BILLS PURCHASEDThe Bank also extends finance against bills of exchange drawn by the beneficiary of inland letter of credit provided such Bill of Exchange and other related documents are strictly in conformity with a term and conditions of letter of credit.

6. FINANCE AGAINST IMPORTED MERCHANDIZEThe bank extends facility of clearing the consignment through its approved clearing agents and considers finance against pledge of consignment imported through the Bank. This is called Finance against Imported Merchandize.

7. EXPORT REFINANCINGIt means to finance the persons for export purposes. Government introduced this scheme on the basis of bad conditions of exports as compared to the imports. Before this scheme the Exports of the country were very poor. All the money was spend on the imports. To increase the exports this scheme was introduced. Under this scheme only those goods are manufactured which the Government allows. Rate of Markup offered is very less as compare to others. Once the ABL has financed the customer, then the State Bank of Pakistan will return it to ABL after two or three days, so it is called the refinancing. Period of payment for this scheme is 150 days but for the carpets, it is extended to the 180 days.

8. FORWARD COVERWhen a customer deposits the foreign currency in a Bank then the Bank has to send this foreign currency to SBP on daily basis. In return SBP gave an equivalent amount to the Bank in Pak-rupees. When the client comes back to withdraw his money the Bank gets back the foreign currency from SBP and it gives it back to the client. All these transactions occur in paper. Now it may happen that the rate at which the Bank deposits the foreign currency, say US$ in SBP is lower than the rate at which the Bank gets back the US$ from SBP. It means that Bank may suffer loss. To avoid this loss the Bank makes an agreement with the SBP. According to this agreement the rate at which the Bank deposits the foreign currency in SBP, gets back the currency at the same rate regardless of the period of time. This is called Forward Cover. The SBP charges certain rate of commission on forward cover of different currencies. Currently the rate charged at US$ is 5.25% and at Pound Sterling is 4.5%.

Read more: ALLIED BANK LIMITED – INTERNSHIP REPORT - Virtual University of Pakistan http://vustudents.ning.com/group/fini619internshipreportfinance/forum/topics/allied-bank-limited-internship-report?commentId=3783342%3AComment%3A1010400&groupId=3783342%3AGroup%3A59249#ixzz25CZuwfYE

Reply by M.Tariq Malik on December 12, 2011 at 10:45pm

The bank provides its customer various products & services, to cater there need of investments, and other social or business requirements. These Product & Services offered by the bank are as follows:

LOAN FOR COMPUTERNow a days ABL is also standing with the government of Pakistan in spreading the IT education through financing in the purchase of computer. ABL provides computer to those professionals who are interested to get computer related education.

ABL finances 80% of total cost while,

The clients have to bear 20% of total cost.

Markup is 14%

And the repayment period is 5 years.

TRAVELER CHEQUESAllied Bank issues Traveler Cheques both in foreign currency and in Pak

Rupees. The traveler Cheques issues in foreign currency are called ABL TravelerCheques while those issue in Pak Rupees are known as ABL Rupee Traveler Cheques.

DENOMINATIONABL Rupee Traveler Cheques are issued in the denominations of Rs 1,000, Rs. 5,000, Rs 10,000 and Rs. 50,000.

SERVICE CHARGESThe bank charges Rs 20 on the issuance of traveler cheque of any denomination.

REQUIREMENTThe Bank requires Identity Card on the issuance of the Traveler Cheque.

VERIFICATIONClient makes one sign on the Traveler cheque when he is purchasing it and the other sign is made when he will cash the cheque.

LOCKER   FACILITY The list of Lockers is maintained in the register. In this register the name of locker holder is mentioned along with the locker number. The key is provided to the locker holder called the Normal or Ordinary key. The Bank keeps himself one key himself. When the locker holder wants to operate to the locker, then he will operate the locker firstly entering the name in the register along with the initials. The date and time of the transaction will also be recorded in the register. Then the leaving time will also be recorded in the register.

Criteria for Acquisition of LockerThere are certain criteria for acquiring the locker facility.

OPENING FARMThere are opening farms, which are filled by the client to get the locker facility. In this form the name is mentioned along with the signatures of the locker holder. In the locker number is also mentioned on the farm.

SECURITYCertain security is kept by the while providing the locker facility. This security is in shape of the cash.

SIZES OF LOCKERSThere are four sizes of lockers, small, medium, large, or extra large, on which certain security is made and the locker holder pays the following amount of rent annually.

Locker Size Security Rent

Small Rs. 1,500 Rs. 750

Medium Rs. 3,500 Rs. 1500

Large Rs. 5,000 Rs. 2500

The key, which is with the Bank, is called Master key and the key, which is kept by the holder, is called normal key. A locker cannot be operated with one single key. Both the master and normal keys are required for operating the lockers. If the key is lost from the locker holder, then the locker holder will pay the entire recovery fee and the client launches FIR. If person wants to operate the locker, he will operate it alone.

ALLIED BANK MASTERCARDTypes of MasterCardAllied Bank issues two types of MasterCard.

Local MasterCard

International MasterCard

The normal limit of local MasterCard is Rs. 25,000, but it can be extended upto Rs. 50,000 only for creditworthy customers. The maximum limit of International MasterCard is Rs. 100,000. The Bank charges 8 to 10 % commission on the used amount.

It’s the any time shopping cardHaving the ABL MasterCard is likely having an account with hundreds of shops, restaurants, and hotel outlets all over Pakistan and abroad. The client no longer waits for his bonus to start shopping.

Lost card liabilityIf ABL MasterCard is lost or stolen, the cardholder will have to bear only the first Rs. 100 from the amount misused, provided the Credit Card Division of the Bank is notified immediately.

Its “Free Credit Card”If the total outstanding amount is settled by the due date, (approximately 15 days from the statement date), no mark-up is charged. This means that you enjoy a maximum of 45 days of “frees credit” from the date of transaction.

Free Personal Accident InsuranceAs a holder of prestigious ABL MasterCard, the Bank covers the client with the personal accident insurance value that Rs. 50,000/- in case of death or permanent disability.

It’s an Instant Cash CardABL MasterCard enables the cardholder to obtain the cash advance from his MasterCard account from any designation branch of ABL during banking hours, at a two percent service charge.

Extra Cards. Supplementary +As an ABL MasterCard holder, client can receive the extra cards with different names and signatures for two other eligible persons of his immediate family nominated by the client himself, may be his spouse. The two cards are absolutely free any membership fee.

It’s the Invaluable Expense PlannerThe sales slip client receives any time, when he makes a purchase and his monthly statement helps him to plan out his monthly expenses. Thus the client will never overshoot his Budget while holding the ABL MasterCard.

RATE OF CHARGESLocal Card Rate of ChargesMembership fee Rs 500 (flat)

Annual fee Rs 1,000 (flat)

Supplementary card fee Rs 500 per card

Cash advance 2.5 % per transaction

Replacement fee Rs 350

International Card rate of ChargesMembership fee Rs 500 (flat)

Annual fee Rs 1,500 (flat)

Supplementary card Rs 750 per card

Cash advance 2.5 % per transaction

Forex markup 1.25 %

Replacement fee Rs 350

UTILITY SERVICESThe banks also provide its customers the non-banking services, such as Collection of Utility bills, etc.

Utility bills can be paid through cash or cheques drawn on any branch of the branches at their convenience under "Cheque Drop-in" system. The Bank mails the bills after payment to the consumer.

HAJ SERVICESThe bank serves the intending pilgrims by helping them in performing their religious obligation. The Haj forms and other related services are provided by the bank.

However the terms and conditions for accepting the Haj forms from intending pilgrims are in accordance with the Haj Policy announced by the government each year

Read more: ALLIED BANK LIMITED – INTERNSHIP REPORT - Virtual University of Pakistan http://vustudents.ning.com/group/fini619internshipreportfinance/forum/topics/allied-bank-limited-internship-report?commentId=3783342%3AComment%3A1010400&groupId=3783342%3AGroup%3A59249#ixzz25Ca7AHQc

Reply by M.Tariq Malik on December 12, 2011 at 10:46pm

STRENGTHSAllied Bank Limited has certain strengths which are different from the other Banks.

· ABL is the first Muslim Bank of the world, which is owned and managed by its own employs. This is the biggest strength of the Bank. A feeling of ownership is present in every employ, which not only helps in increasing the productivity of employs but also creates sincerity with the Bank in them.

· Another strength is the high motivation of employees to their work because they know that what so ever they do, it will be in their own benefit. They know that the profit, which they will earn, will be distributed among all the employees. So they work with high motivation and concentration.

· Salaries are very reasonable, so the employees are not financially disturbed and they devote their selves fully to their work.

· They have wide area network in all over the Pakistan, so that they cover a lot of portion of cash transactions and make customer satisfied.

· The Bank has very strict rules and regulations about the customer’s complaints. The customers are treated as very special persons in the Bank.

WEAKNESSES· No entertainment facilities are available in the Bank when customer goes to the Bank and wait for a longer time. These facilities can be the newspaper, magazines, etc.

· Advertisement of ABL is not such goods as of other banks.

· Out look of the ABL branches is not attractive to the people.

OPPORTUNITIES· The policies of the new government to uplift the economy and pursue financial sector reforms are expected to yield positive results in the banking industry of the country. The ABL is very well praised to avail promising opportunities.

· As a result of the different steps taken by the Government regarding the betterment of the economy, small borrowers are attracted to get the financing and start small businesses. So, the ABL has an opportunity to attract the customers by giving them attractive schemes.

THREATS· First threat is that of political influence. Three boards of directors are of government. So that they can influence on the decisions of the ABL.

· The biggest threat in the banking sector is the continuous downfall of the country economy since the last few years. If this downfall remains for more few years then it may be the great hindrance in achieving the Bank’s objectives.

· The privatization of other banks is also a threat for the Bank. Due to the privatization of the different bank e.g. MCB, the competition has increased a lot. Furthermore many private banks have come in the sector due to which it is becoming more difficult day by day to attract the customers.

Read more: ALLIED BANK LIMITED – INTERNSHIP REPORT - Virtual University of Pakistan http://vustudents.ning.com/group/fini619internshipreportfinance/forum/topics/allied-bank-limited-internship-report?commentId=3783342%3AComment%3A1010400&groupId=3783342%3AGroup%3A59249#ixzz25CaVE5ty

Reply by M.Tariq Malik on December 12, 2011 at 10:46pm

FUTURE PLANSSome future plans of ABL are as follows:

· Installation of ATMs in every major city of the country.

· Computerization of all the branches through out the country. In the first instance a target of 250 branches has been set. Among them about all the branches of Lahore and Karachi have been computerized. In addition to this main branches of Bahawalpur and Rahim Yar Khan has also been computerized. Now the next target is Multan Circle

· Shares Investment Scheme i.e. Bank will trade in shares of different renown companies to earn profit.

· Purchase of Sick Units, rebuild them and make them profit earning institutions.

SUGGESTIONSFollowing are some observations and suggestions during the internship.

· When giving the loan, the Bank must carefully analyze the past six months transaction history of the borrower. This will help in judging the dealing behavior and financial status of the client. In most cases, this thing is not properly done and it is the major reason of default of many clients.

· The Bank should keep the proper cheque on stock which is hypothecated. A textile owner may ret the loan on same 10,00 bales of cotton from checking system of the Bank.

· The Bank should have the moving cameras in their branches for security purposes.

· The Bank should try to give more loans to the small borrowers as the past history shows that most of the loans given to the corporate borrowers have converted into bad debts.

· The Bank has a lot of financing schemes but there is very little advertisement of these schemes. So Bank should increase its advertisement.

· When any one comes to operate the lockers, then the things which he keeps in locker should be checked through metal detector for security purposes.

· Staff turnover particularly of trained staff results in financial and other losses. The amount spent by the bank on employment, induction and training of outgoing officers constitutes to beat till another officer should ready prove his work. The exodus of bank officers in the past has worsened the situation.

· Most of the bank employees are sticking to one seat only, with the result that they become master of one particular job and loose their grip on other banking operations. In my opinion all the employees should have regular job experience all outÄlook towards banking. The promotion policy should be adjusted.

· Refresher courses for the staff are most important in any international organization. All the employees should have these courses according to their requirements. Foreign experts can also be called for this purpose.

· Every year some of the employees should be sent for training to other countries and employees from other branches should be brought here. More reading material should be brought / provided in the reference Room, it should be relevant and its purpose should be to educate the employees with the advance studies in their field. The employees should be provided the opportunities to attend and participate in seminars and lectures on banking.

· With the internship letter should also be requested to provide us the financial reports. Because when we demanded the financial reports they said that this is confidential. And they are not allowed to provide these statements to any trainee.

Read more: ALLIED BANK LIMITED – INTERNSHIP REPORT - Virtual University of Pakistan http://vustudents.ning.com/group/fini619internshipreportfinance/forum/topics/allied-bank-limited-internship-report?commentId=3783342%3AComment%3A1010400&groupId=3783342%3AGroup%3A59249#ixzz25CadYPDG

CASH MANAGEMENT SOLUTIONS

Offering a wide range of transactional banking services to meet our Customer’s complex cash management needs.

Financial Institutions

ABL’s Financial Institutions team is in charge of establishing and maintaining institutional banking

relationships with correspondent banks across the globe. The division aims to facilitate all areas of

international banking operations inclusive of Trade, Treasury, Guarantees and nostro / vostro

relationships. ABL has internationally renowned banks such as JP Morgan Chase, Citibank, Standard

Chartered Bank, Deutsche Bank, Commerzbank, Mashreqbank etc. in its existing list of correspondent

banks, thus enabling ABL to adequately cover the need of its clients.

The bank also has trade finance facilitation agreements in place with International Finance Corporation

(IFC) Asian Development Bank (ADB).

Cash Management

The Cash Management team focuses on our Corporate customers’ need for Collections and Payments

across the country. Tailor- made products and transactional structures are developed for customers as

well as a host of MIS reporting options for receivables management and handling of disbursements/

payouts.

Through our value added proposition, ABL’s cash management team strives to deliver the best

combination of services to corporate clients and their suppliers, dealers, vendors and employees

nationwide

TRADE SERVICES

Import / Export Business

Allied bank, with its variety of export products and expertise, can help customers mitigate risks involved in

export transactions, which in turn, will help their export business flourish. We offer a wide range of import

products delivered by our expert trade team who ensures quick and efficient processing of transactions.

Below is a list of few services Allied bank provides to help any business having importing/exporting

needs:

Trade Finance

Allied Bank provides highly efficient trade finance services for import/export businesses through a large

number of authorized branches where trained and motivated staff is available to handle the business on

the customer’s behalf.

FINANCE/CREDIT FACILITY

These are short term credit facilities (maturity of up to one year) lent to customers to meet their day-to-day business/working capital requirements and finance their inventories, receivables, etc.

Generally, in addition to collateral security, these facilities also entail security in the form of hypothecation

of stocks and receivable/pledge of stocks.

GUARANTEES

On behalf of the customers, the Bank issues a guarantee in favour of the beneficiary, against the

performance of a particular job/contract, within a particular time.

DEMAND FINANCE FACILITY

This is a medium/long term credit facility available to establish new projects for BMR and capacity

expansion with a repayment term of more than one year, which can be paid back in installments. This

facility meets clients’ long term needs such as, financing factory constructions or machinery expenses.

FOREIGN BILL PURCHASE

This loan/facility is provided to exporters against their export bills under LC and a contract to facilitate

their cash flow, while they are waiting receipt of their payments.

SME FINANCING

At Allied Bank we can make all the difference to your bottom line

ABL has realigned its focus towards SME Business with a vision to capitalize on the bank’s countrywide

footprint and long-standing customer loyalty to become a preferred cum prudent provider of a “Total

Banking Solution” to the Small & Medium Market segment.

With this renewed focus and strategy, ABL offers its customers a wide range of products & services,

meeting the needs of various types of businesses. Having best available technology and a branch

network spread across the country, we are well positioned to cater to all sorts of business specific

requirements.

INTERNAL CONTROLS

The Bank’s management is responsible to establish and maintain an adequate and effective system of internal controls and procedures. The management is also responsible for evaluating the effectiveness of the bank’s internal control system that covers material matters by identifying control objective and reviewing significant policies and procedures.

The scope of Audit and Risk Review Group (A & RRG), independent from line management, inter-alia

includes, review and assessment of the adequacy and effectiveness of the control activities across the

Bank as well as to ensure implementation of and compliance with all the prescribed policies and

procedures. All significant and material findings of the internal audit reviews are reported to the Audit

Committee of the Board of Directors. The Audit Committee actively monitors implementations to ensure

that identified risks are mitigated to safeguard the interest of the Bank.

Operations Group is entrusted with the responsibility of expediting rectification of irregularities and control

lapses in branches’ operations and various controlling offices pointed out through audit reviews. Vigorous

efforts are made by Operations Group to improve the Control Environment at grass root level by

continuous review & streamlining of procedures to prevent & rectify control lapses as well as imparting

training at various levels. The Compliance Group, through its regional offices, ensures adherence to the

regulatory requirements and Bank’s internal policies and procedures, with specific emphasis on

KYC/AML.

The Bank’s internal control system has been designed to provide reasonable assurance to the Bank’s

management and Board of Directors. All Internal Control Systems, no matter how well designed, have

inherent limitations that they may not entirely eliminate misstatements. Also projections of evaluation of

effectiveness to future periods are subject to the risk that controls may become inadequate because of

changes in conditions or that the degree of compliance with the policies or procedures may deteriorate.

However, control activities are ongoing process that includes identification, evaluation and management

of significant risks faced by the Bank.

Recognizing it to be an ongoing process, the Management of Allied Bank has adopted an internationally

accepted Internal Control COSO Framework, in accordance with guidelines on Internal Controls from the

State Bank of Pakistan. Allied Bank has completed the first four stages of the internal control program as

per these guidelines, which include mapping and documentation of AS-IS processes and controls in the

form of detailed process flow charts, identification of gaps and requisite recommendations, development

of remediation plans and management testing plans. In addition, the management testing framework and

entity selection criteria have also been developed for ensuring an ongoing operating effectiveness of the

key controls. Currently the Bank is in the phase of implementing the management testing plans and

project initiatives, as planned. This will be followed by quality assurance and validation of the initiatives

completed.

The Board of Directors being ultimately responsible for the internal control system endorses the

management evaluation and efforts to adopt above mentioned internationally accepted standards in

improving controls and processes to ensure better risk mitigation.

Khalid A. Sherwani

Chief Executive Officer

Date: February 14, 2012

Allied Bank Limited Launches Mobile BankingThe Pakistani bank has partnered with Sybase 365 and AbacusConsulting to offer the service to its customers.

Tags: Allied Bank, Sybase 365, AbacusConsulting, ,

By Bryan Yurcan

@BryanYurcan

JUNE 18, 2012

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Pakistani financial institution Allied Bank Limited announced it has partnered with Sybase 365 and AbacusConsulting, a Pakistani professional services firm, to offer its customers mobile banking services.The partnerships will enable Allied Bank to integrate mobile banking capabilities into its current banking products and potentially tap into a large base of potential customers – there are approximately 130 million mobile users in Pakistan – particularly in remote rural areas where access to banks, ATMs and the Internet remains limited.

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“We have been looking for a service provider with global recognition for launching mobile banking services,” said Zia Ijaz, Group Chief Commercial and Retail Banking Group at Allied Bank. “With many successful mobile banking deployments in its portfolio, we are confident

that Sybase 365 is the right partner to help us develop and implement a robust mobile banking strategy to tap into the unbanked and under-banked population of Pakistan.”

Allied Bank opens 'All Females' branches

April 27, 2012

RECORDER REPORT

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 Allied Bank Limited recently inaugurated its two branches in Islamabad, enhancing its

network to 837 in Pakistan, offering real-time online services. The first ever 'All Females' branch was inaugurated at DHA Phase I, Rawalpindi Cantt by renowned television artist Laila Zubairi. 

Those who attended the inauguration ceremony included Waseem Mukhtar, Director Allied Bank; Zia Ijaz, Group Chief, Commercial and Retail Banking; Shahid Amir, Group Head, North, Allied Bank, senior management of the bank and dignitaries of the area. Soan Gardens, Islamabad branch was also inaugurated on the same day. Allied Bank has been rapidly expanding its branch network whereas old branches are being renovated to provide best customer experience in a uniform way. The Bank has been focusing on creating an enabling environment for the banking needs of all segments of the society, including women.-PR 

rganizational Structure

Branch Setup

What is inward and outward clearing in banking?what is the difference between inward and outward clearing?

3 years ago Report Abuse

ronwizfr

Best Answer - Chosen by Voters

Wrong group but...

Assume Mr A with an account at the ABC bank issues a check for Mr X with an account at the XYZ bank. 

The check's data go into XYZ's computer system, and the sum is added to Mr X' account. Next the check is sent to bank ABC. This part of the compensating is called Outward Clearing.

Next the check's data go into ABC's computer system, and the sum is subtracted from Mr A's account. The amount is also subtracted from bank ABC's account at the National Bank and credited in XYZ's account there. This part of the compensating is called Inward Clearing.

3 years ago Report Abuse

Reply by M.Tariq Malik on December 12, 2011 at 10:46pm

1. ACCEPTANCE.

The action of the drawee signifying his intention to pay the bill on its maturity is called acceptance. The bill may be accepted by the drawee without addition of any word but it is customary to add the words accepted across its face indicating the date under the signature.

As stated above, acceptance is the act of accepting the term or usance bill of exchange by drawee, but the word is more commonly used to refer the accepted bill of exchange, though on behalf of his customer, as such bill accepted by the bank is known as bank acceptance. This item appears on the liability side of the bank’s balance sheet with contra on assets side for the bills (liability) accepted on behalf of the customers (importers) for whom documentary letters of credit have been issued.

2. ACCOMMODATION BILL.

A bill is called an accommodation bill when it is drawn, accepted or endorsed by a party with the object to oblige or accommodate another party without receiving any consideration for the same. The person putting his signatures lends his credit (without consideration) for enhancing the credit worthiness of the bill for the purpose of accommodating the other person, who may raise the funds by discounting the bill and is expected to meet the bill at maturity from his own source. But it should be clearly noted that in case of dishonour of the bill, the accommodation party (who has lent his credit) is liable to holder for value. By discounting an accommodation bill the bank becomes holder for value.

3. ADMINISTRATORS.

Administrator is a person, who is appointed by a competent court to administrate the estate of the deceased person who has left a will without naming any executor, or, the person named in will has died before the testation, or the person named in the will has refused to act as executor.

4. ADVICE.

An official intimation issued by a banker during the course of his business to the customer, other branches including overseas branches, banks and correspondents and his head office, is generally called an advice, such as credit advice (which is sent to the customer when a credit in his account has been received), debit advice (which is sent to the customer when his account has been debited for charges, mark up and debit raised in compliance of his instructions/standing orders), draft advice (when a draft has been issued), pak account advices (credit or debit) when branches accounts have been credited or debited.

5. AGENT.

As per contract act 1872, section 182, and agent is a person employed to do any act for another or to represent another in dealing with third persons. The person for whom such act is done, or who is so represented, is called the principal. Thus an agent has powers to bind his principal according to the terms of the authority. Before dealing with an agent, may have limited authority to act for some particular or special duty such as authority to purchase house only or to collect rent of a particular building or buildings. The authority given to a person may be for performance of multifarious duties, in that case the is regarded as general agent. Where un-limited powers are given to a person, he is called a universal agent and he can bind his principal by all his acts provided these are in accordance with the law of land.

6. ALLONGE.

A slip or a sheet of paper attached to a bill of exchange (or cheque) for the purpose of writing endorsements when the place on the back of the bill (or cheque) has been filled up with the endorsements of the parties through which the bill (cheque) has passed. In order to prevent fraudulent use of the allonge, the first endorsement on the allonge is recorded in such a way at the junction of the two documents that half of the endorsement is on the bill while other half is on the allonge. Since it is permissible to use copy (photo copy) of the bill in place of allonge, in certain countries, in view of which bill of exchange act 1882, section 32(i), provides that in a country where such a copy is recognized the endorsement written on the copy shall be deemed to have been written on the bill itself.

7. ALTERNATE PAYEE.

One of the two parties or one or some of the several parties to whom a negotiable instrument or an account is payable, is an alternate payee.

8. AMBIGUOUS INSTRUMENT.

Ambiguous means doubtful or of uncertain nature-difficult to distinguish or classify – obscure. Thus an ambiguous instrument is that which has been drawn in such a manner that it is doubtful to classify it as a bill of exchange or a promissory note. The holder may treat it either as a promissory note or bill of exchange and when option of the holder is in favour of any one of them ,in future , the instrument shall be treated accordingly . In the following cases the instrument is ambiguous where: (a) in the bill the drawer and drawee are the same person (b) the drawee mentioned in the bill is a fictitious person (c) Drawee mentioned in the bill is incapable of contracting (d) the instrument in the form of bill of exchange is not addressed to any person.

9. ARTICLES OF ASSOCIATION

In a document, which contain various regulations for the internal management of a company and terms and conditions regarding issues of shares, transfer of shares , alternation of capital , borrowing powers , general meeting , voting rights , appointment of directors and their powers, dividends, accounts, audit of accounts , winding up and others .

10. BANKER AND CUSTOMER.

The relationship of banker and his customer in primarily that of a debtor and creditor and not of a trustee and beneficiary. Customer on depositing money to the credit of his account with the banker banker becomes the creditor the banker becomes the debtor. On obtaining finance/loan, the position is reversed and the customer is then, the debtor and the banker the creditor. This relationship confers certain rights and duties to each others. One of the fundamental duty which sprung out of it, unless revoked, is honouring of customer’s cheques is technically in order and there is no legal bar on it. However, it is entirely in the banker’s discretion to allow overdraft (finance) to his customer.

11. BANKER’S BOOKS

It has been defined in S. 2(3) of the banker’s book evidence act, 1891 as under:-

“banker’s books include ledgers, day books, cash books, account books and all other books used in the ordinary business of bank”.

12. BANKER’S DRAFT.

Draft is an order cheque drawn by one branch of a bank upon itself i.e. on another branch of the same bank. It is a negotiable instrument and cannot be made payable to bearer.

13. BANKER’S LIEN.

Lien is a right in one man to retain the property held by him legitimately belonging to another against present and accrued claims (debt) till such claims (liability) are satisfied. Property ownership remains with the debtor (borrower) while the creditor (lender) keeps its possession.

14 BANKER’S RIGHT OF SET-OFF.

It is statutory right of bankers to combine two or more accounts enjoying same rights of the same customer, in order to arrive at the net balance due between them. Where a customer has more than one account at the same branch of a bank or at two or more branches of the same bank, the bank has a right to combine these accounts of the same customer to work out the amount due to him or from him. In order to exercise such right without notice a letter of set-off duly signed by the customer is obtained confirming the right of set-off without notice and to return cheques, which would overdue the combined balances.

15 BANKER’S REFERENCES.

It is a well-established practice amongst banks to exchange information regarding their customer’s mean, standing and credit worthiness. A bank usually collects such status opinion from another bank at the request of the customer or conversely other banks may refer for such an opinion about his customer.

It is also in practice that banks call such opinion for their own information respect of their new customers, special, when any financing is likely to be approved in their (customer) favour. The reference so made is called Banker’s Reference or Status Enquiry or Status Opinion.

16 CHEQUE-STATE AND POST-DATED.

As per practice, a cheque antedated by six months or more i.e. presented after six months which it was drawn is regarded as a stale cheque in Pakistan. On presentation such a cheque is

returned unpaid with the remarks that the cheque is out of data. A post-dated cheque is one, which bears the date after the day of issue i.e. the date given on the cheque has yet to arrive. The bank has no authority to pay a post-dated cheque until the due date. Post-dating of a cheque convert it from Demand Instrument to time instrument. On presentation such a cheque will be returned with cheque post-dated, it may be paid on or after the date mentioned on it.

17 CONTRIBUTORY NEGLIGENCE.

Where a banker has been found negligent in case and his customer (plaintiff) has also been negligent, he (customer) is said to have contributed to such a loss as well. The courts according to his contribution reduce the claim of the customer. Examples are: customer recklessly issuing blank signed cheques or by failing to exercise proper check over his clerk or agent, handling or writing his cheques books.

18 GARNISHEE AND GARNISHEE ORDER

Garnishee means a person who is Garnished and warned through a garnishee order. Garnishee order is process of law, which warns a garnishee (bank) to attach a debt (deposit) owing or accruing due at the time of service of order of his customer to paid to the person who has secured final orders against such customer.

A garnishee order “nisi” is issued first by the court, which means that this order will become final on a particular date unless set aside or invalidated by certain specified contingencies. Thus the bankers on service of such notice is required to attach all the debts due by him to the judgment debtor for payment to the judgment creditor as directed by the court. The banker has to attend the court for paying the debt or to show cause why it cannot be paid. On hearing the concerned parties the court issues garnishee order or set aside the earlier order i.e. garnishee order “nisi”. By issuing garnishee order absolute the garnishee is ordered to pay the debt due or accruing in satisfaction or part satisfaction or part satisfaction of the judgment debt.

On receipt of garnishee order “nisi” it should be carefully examined which account(s) of the customer has/have been attached and upto what extent? The amount earn\marked should be in the same mane or names of the customer as per garnishee order. The funds marked should be those, which are repayable on demand including those term deposits, for which notice for payments has been received before receipt of the order.

19. HOLDER

As applicable to bill of exchange, promissory note or cheque, means the payee or indorsee or bearer of an instrument who is entitled in his own name, to its possession and to receive or recover the amount from the parties thereto. Mere possession f the instrument would not entitle a person to recover its amount from the parties thereto, as in case of person finding a bearer instrument or a thief or forged indorsee. Even the payee of an instrument will not be entitled to receive the amount who has been restrained by the court orders. But where the instrument has been lost or destroyed its holder would be the person who was entitled to its possession at the time of its loss or destruction.

20. HOLDER IN DUE COURSE

Holder in due course is a person who fulfills the following four conditions.

(i) That he is holding negotiable instrument for value either as bearer, payee or indorsee.

(ii) That he got the possession of the instrument before the maturity i.e. before the amount mentioned therein became due.

(iii) That he took the negotiable instrument in good faith.

(iv) That he became the holder with due care or without notice of any defect in the title of the person (indorser/transferor) from whom he derived his title.

21. IMPERSONAL PAYEE.

Cheques drawn payable to “Cash or Order” or “Wages or order” etc., are instruments, which are payable to impersonal payee as these are not payable to any specified persons, these are paid to the drawer or his known agent only against an indorsement. Similarly cheques drawn in favour of “Income Tax or ordre or water rates or order” are payable to impersonal payee. In such cases, indorsement of concerned official is obtained before payment i.e. in the first case

from the income Tax officer and in the second case from the revenue officer or director revenue, water and sanitation agency, LDA, Lahore.

22. INCHOATE INSTRUMENT

Inchoate means begun but not completed or nt perfected. Inchoate instrument is an instrument, which is incomplete in some respect, e.g. a cheque issued with no payee stated thereon or bill form signed by a person and handed to another person to fill up and make into a complete bill.

23. INDORSEMENT

It is also spelt as endorsement. In its literal sense, it means to write at the back of an instrument. Technically it is to inscribe one’s signature on the back or face of a negotiable instrument i.e. cheque, bill, note etc., with the intention of transferring the instrument and the property therein. This act is, to indorse and the person signing it is called indorsement. The person specified in the instrument is called indorsee. The indorsement can be made by the holder of the instrument and its maker (when it is drawn o the maker’s order). A strange to the instument can not indorse it. It may be noted that no specific form has been prescribed by law for an indorsement, any form of words over the signature of the indorser, which imports intention to transfer the instrument, is sufficient.

24. INDORSEMENT - TYPES

(i) Indorsement in blank or blank indorsement or general indorsement.

An indorsement is described as indorsement in blank or blank indorsement when theindorser simply signs on the instrument without mentioning an indorsee. The effect of such an indorsement is tht instrument becomes bearer one unless it is converted into special indorsement or indorsement in full by writing over the signature of the indorser.

Example; “Muhammad Naeem-ud-Din.”

(ii) Special or full indorsement.

The indorser under his signature also states the name of person (indorsee) to whom such instrument is desired to be paid as per his order.

Example; “Muhammad Naeem-ud-Din.”

25. INSTRUMENT

A legal term used in banking and finance to denote cheque, draft, promissory note, bill of exchange, bond, shares certificates, bill of lading, trust receipt etc. the term also includes any kind of legal document by which some right is conferred or contract is expressed such as deed, grant etc.

26. MANDATE MANDATORY

A mandate is an official order, command or charge, but as applicable to banking it is a written authority given by a bank customer (the mandator) to another person (the mandatory) to sign cheques or conduct banking business on his behalf. Thus a mandatory is a person to whom a mandate or an authority is given. The person who gives the mandate is called the mandator. The relationship of banker and customer in this context is that of mandatory and mandator.

A mandate is terminated by the death, bankruptcy or mental incapacity of the person or one of the persons in case of joint account, who gave the authority. It should be noted that the person (the mandatory) who has authority to sign on behalf of other, has not, as a rule, any power to delegate that authority.

27. MATERIAL ALTERATION

Section 3(f) of negotiable instrument act, 1881 defines material alteration as “material alteration’” in relation to a promissory note, bill of exchange or cheque includes any alteration of the date, the sum payable, the time of payment, the place of payment, and , where any such instrument has been accepted generally, the addition of a place of payment without the accepter’s assent.

The list of material alterations given above is not an exhaustive and there may be some other alterations which one. As has been stated that “any alteration is material, which would alter the business effect of the instrument if used for any purpose for which such an instrument is used.”

28. MATURITY

Maturity as relating to banking and finance means: (a) state of being due (b) the time when a note or bill of exchange becomes due. Section 22 of negotiable instrument act, 1881, describes maturity as “the maturity of a promissory note or bill of exchange is the date at which it falls due. “three days of grace are allowed to every bill or note which is not payable on demand, at sight or after a certain event will be at maturity 3 days after the day on which it is payable.

29. MEMORANDUM OF ASSOCIATION.

Memorandum of association is Magna Charta of company. It detail the scope and conditions on the basis of which certificate of incorporation is given by the Registrar of the companies. The clauses and the conditions recited in the memorandum of association are fundamental and unalterable. Only certain specified particulars can be changed in accordance to the provisions of law. Objects of the memorandum can not go beyond the provision of the companies ordinance, but the articles of association, which contains bye-laws or regulations to control its internal management despite being limited to companies ordinance are also subordinate to memorandum. Since the memorandum is in the nature of a contract between the company or a persons dealing with the company is required to know the provisions of memorandum (and articles of association) of the company especially pertaining to the nature of business, extent of the powers of the company and directors and those concerning conduct and operation of banking transactions.

30. NEGOTIATION

Negotiation is a process by means of which an instrument is transferred from one person to another in such a manner that the transferee becomes its holder. Where the instrument is payable to the order, it is negotiated by necessary endorsement and by delivery. In case of a bearer instrument, negotiation is completed by delivery only.

31. NOT NEGOTIABLE

The phrase “not negotiable” does not restrict the transferability of cheque, but it destroys its characterity of negotiation and it cannot be negotiated in an ordinary way. It resembles a bill bearing a “restrictive indorsement”. As indicated in section 130 of negotiable instrument act 1881, the transferee of such a cheque does not acquire the rights of a holder by negotiation, he gets no better title than that of transferor.

32. NOT NEGOTIABLE CROSSING

An important feature of negotiable instrument is that bona fide transferee getting it in good faith and for value will acquire a good title despite any prior defect in the chain of title.

33. NOT PROVIDED FOR

The answer to the unpaid cheque indicates that the drawer was supposed to provide funds for payment of the cheque which he has failed to meet with.

34. NOT SUFFICIENT

The answer is used when the funds at the credit of customer are insufficient to clear the cheque presented for payment. This term is also likely to convey the idea that the customer is maintaining balance lesser than the amount of cheque as such use of term “not sufficient” should also be abandoned in favour of “Refer to Drawer”.

35. NOT TRANSFERABLE

The crossing of cheque “Not Transferable” restricts its characteristic of transferability as well as negotiability. The cheque bearing such crossing cannot pass from one person to another and no one else, but the payee of the cheque is entitled to the proceeds.

36. OBLITERATING A CROSSING

Obliterating means to rub of or to erase. So obliterating a crossing is quite different from opening of a crossing. This method is used by fraudulent people to deceive the banks to obtain cash payment on the counter. Since no particular safety rules can be prescribed for such cases but all the cheques presented for cash payment must be scrutinized carefully at every stage. More detailed scrutiny should be done of the cheques of big amounts presented by a stranger.

However, protection is available to the bank under section 89 of negotiable instrument act under the following circumstances.

(i) the alteration is not apparent and can not be noticed even with minute scrutiny.

(ii) The payment has been made in good faith and according to the apparent tenor of the cheque.

37. OPENING OF CROSSING

The act of drawer, canceling crossing of the crossed cheque by writing upon it “Pay Cash” under his signature is called opening of crossing. By this action a crossed cheque is converted into an open cheque and its payment can be obtained at the bank’s counter. It need not be presented through a bank in case it was crossed generally or to the specified bank in case it bore special crossing. Although no provisions exists in law for cancellation of crossing but writing of words “Pay Cash” in this way has recognition of the custom.

38. PAYMENT IN DUE COURSE

Section 10 of the negotiable instrument act, 1881 has laid down following conditions for a payment to be a payment in due course.

(a) That the payment should be made in accordance with the apparent tenor of the instrument.

(b) The person to whom it is made should be in possession of instrument.

(c) The payment should be made in good faith, without negligence and under circumstances, which do not afford a reasonable ground for believing that the person to whom it is made, is not entitled to reveive the amount.

Thus the payment to be in due course, must be according to the directions appearing on the face of the instrument as per intention of the parties. A payment cannot be a payment in due course if it is made before due date, to a person not entitled to it. A payment without good faith and without care and caution is not a payment in due course. The payment made on a forged cheque is not a payment in due course.

39. POWER OF ATTORNEY

Power of attorney is a written document by which authority is given by one person (donor) to another (donor) to act on his behalf either generally or for some specific transaction. The power of attorney contains, names, addresses, and descriptions of donor and the done, the reason or the purpose for giving the authority, and the scope of the authority.

40. REFER TO DRAWER.

The term “Refer to Drawer” is one of the mostly used answers for returning the cheque for conveying various reasons of dishonour i.e. “balance insufficient”, “balance under lien” or “service of garnishi order”. By stating this term the banker indicates to the presenter (payee) of a cheque, “we are not paying, go back to the drawer and ask why”, or else “go back to the drawer and ask him to pay”. The use of the term should always be with due care and would not be is leading to the presenting party which is to be construed properly by him, a any misunderstanding can cause damage to the credit of the customer.

41. SIGNATURE

Signature includes a person’s name, sign, cross or mark impressed or written by him. The signature of a customer (which must conform to the specimen provided to the bank) on cheque (or on a paper) is an authority to comply with his instruction; to pay cheque if otherwise in order or to debit his account.

42. TRAVELLER’S CHEQUES

Also known as international cheques. These are widely used by the persons traveling within the country or abroad. The instrument is preprinted in various convenient denominations of the currencies, in which these are issued. Most popular currencies are U.S. Dollars and U.K. pound sterling. They are not drawn on a particular bank or banks, but are encashable at all banks or authorised business houses and institutions through out the world.

Read more: ALLIED BANK LIMITED – INTERNSHIP REPORT - Virtual University of

Pakistan http://vustudents.ning.com/group/fini619internshipreportfinance/forum/topics/allied-bank-limited-internship-report?commentId=3783342%3AComment%3A1010400&groupId=3783342%3AGroup%3A59249#ixzz25CXVxw6Q

Reply by M.Tariq Malik on December 12, 2011 at 10:46pm

BANK’S FINANCIAL POSITIONFinancial position of the ABL can be judged from different financial heads that on which level it stands, with respect to the other banks.

Total AssetsTotal assets of the bank increased from Rs. 72 (billions) in 1997 to Rs. 89 (billions) in 1998, thereby increasing at the rate of 23.3% over the last year. This is the highest rate of growth for the last five years, and better than other banks..

AdvancesAdvance, net of provision, have increased from Rs. 36 (billions) in 1997 to Rs. 43 (billions) in 1998 thus increasing by 18% during the year. Though the advances to private sector have declined country-wide yet in case of Allied Bank share of credit to private sector remains unchanged as compared to previous year.

InvestmentsInvestments have increased from Rs. 20 (billions) to Rs 26 (billions) in 1998. Thus increasing by 27% during the year under review. It is encouraging to observe that during last two years the priority of the management has remained to increase investments after, of course, meeting the genuine credit needs of our customers.

The investment of 90% has been made in Govt. Securities which mitigates the default risk on statutory liquidity reserves and ensures safe return to our share holders.

DepositsThe peer banks floated various high cost deposit mobilization schemes during the year. However, Allied Bank, depending upon its quality of services and experienced field force successfully mobilized additional deposit of over Rs. 13 (billions) during the year reflecting a growth of almost 21% over the previous year.

EquityEquity has remained one of the main concerns of the management. In order to increase equity, the bank issued 100% right shares in 1995 and 25% in 1996, also ploughing back profits through bonus shares of 25% each in 1995 and 1996. In 1998, the management decided to

revalue land and buildings acquired by the bank several years’ back and were being carried at book value. However, the international properties of the bank have not been revalued. As a result of revaluation of the domestic land and buildings of the bank the reserves of the bank have increased by almost Rs. 1.5 (billions) thereby increasing the equity of the bank almost 100%. Now the total equity stands at 3.002 (billions).

ProfitabilityPretax profit of the bank increased from Rs. 29 million in 1997 to Rs. 170 million in 1998. Thereby reflecting a growth rate of almost 490%. The main reason for this profit increased was rise in yield from 387 million in 1997 to Rs. 769 million in 1998.

Performance Highlights of 1998

HEADS 1997 1998GROWTH Rs

GROWTH %

Capital & reserves 1515 3002 1487 198%

Deposits 63430 76541 13111 21%

Advances 36231 42719 6488 18%

Investments 20193 25605 5412 27%

Income 8397 8984 587 11%

Expenditure 8368 8814 450 9%

Pretax profit 29 170 141 490%

Total assets 72404 89358 16954 23.42%

The year 1997 had been very difficulty for Pakistan economy. The commercial banking industry has been reflecting declining trend in the pre-tax over the last three years due to ever increasing, quantum of non-performing assets, resent cost of funds and inter-mediation and declining manufacturing sector.

The beginning of 1998, however, has brought a ray of hope for economic revival. The emergence of new government with heavy electoral mandate has considerably restored the people’s confidence, which is reflected in the rise in the country’s stock price index after almost two years. The policies being pursued by the new government are expected to revive all sectors of the economy.

Operational reviewThe performance of ABL remained mixed and very improved during the year, 1998. Total assets (less contra) increased to Rs. 89.358 billion in 1998 indicating a growth of 23.4 % as compared with 1997. Declaration of 25% right shares together with rising reserves increased the equity of the Bank by RS. 170 million or 14.0% resulting in improved capital adequacy ratio of the Bank. Total deposits of the Bank reached to 76.541 billions showing a growth of 21% over last year. Investment and advances rose to Rs. 25.605 billion registering a growth of 27%. The growth in total income was only 11% (from Rs. 8.397 billion in 1997 to Rs. 8.984 billion in 1998). Whereas the growth in total expenditure was 22.5%(from Rs 8.368 billion in 1997 to Rs. 8.814 billion in 1998) resulting in a relatively lower pre tax profit for the year 1998.

The pre tax profit Rs. 170 million for the year was very much high as compare to the previous year figure out as 29 million in 1997. This increase in pre tax profit was due to higher margin by making lower (even normal) payment of return to depositor and other creditors.

International BusinessThe import business of the Bank leaped to Rs. 31.239 billion registering an unprecedented growth of Rs. 8.727 billion or 38.8% over last year’s imports. The export business, too, rose

from Rs. 15,393 billion to Rs. 17,892 billion indicating a growth of 16.2%. The Bank has also recorded a growth of 3.3% during 1998 in home remittances, which stands at Rs. 2.705 billion.

NetworkThe branch network continued to expand in 1998 and additional 29 branches were opened in the country. Total domestic and foreign outlets aggregate to 951 at the end of 1998.

Computerization & AutomationComputerization and Automation remained one of the top priority areas of the management. During the year 1998, additional seven ATMs were installed. Now a total of 28 ATMs are available in almost all major cities of Pakistan.

By the end of December 1996, computerized on-line branches were 48 while work on 20 branches to be computerized off-line whereas work on 99 branches to be computerized off-line was underway. But now in 1998 and 1999, many other branches have also been computerized in the country’s major cities. They aim to computerize all branches within 7 years.

In addition Allied Tele-banking Service was made available in Finance & Trade Center Branch, Karachi and Blue Area Branch, Islamabad.

Human Resource DevelopmentThe development of human resource continued to receive utmost attention of the Management. Towards this end the Bank inducted qualified personnel, such as MBAs & M.Coms who were also required to undergo vigorous extended training of the existing personnel training programs continued with main thrust on computer appreciation to

encourage computer usage in the Bank.

Bank: ALLIED BANK LIMITED - Analysis of Financial Statements Financial Year 2008 - 1Q Financial Year 2011

July 11, 2011

RECORDER REPORT

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 Established in Lahore in 1942, Allied Bank Limited is one of the largest banks operating in

Pakistan with a network of more than 800 branches located in almost 150 cities and towns. The bank offers a full range of retail, commercial and corporate banking services with a focus on service delivery through technology. 

Additionally, it also provides general banking services to agricultural, industrial and individual customers throughout Pakistan. Almost 89% of bank's deposit base is composed of deposits from the urban areas. The bank's fundamental strength lies in its strong lending capability, as well as providing a variety of financial services, which has allowed ABL to diversify and enhance its deposit base. 

The bank also conducts international operations in UK whereby it caters to the needs of the bank's

domestic corporate and other customers in financing import and export transactions. ABL's products include foreign letters of credit, guarantees, remittances, acceptances and collections. 

ABL has highest number of ATMs, which increased to 569 at December 31, 2010 (13% of the industry share) covering 145+ cities whereby, making it the widest geographical coverage for ATM-based service amongst all the banks in Pakistan. It has a completely online network of 806 branches. This accounts for 12% of the market share amongst the online branches in the country. 

Allied Bank has also been adjudged as "best bank" of 2009 by CFA Association of Pakistan in its 7th Annual Excellence Awards. It has also been ranked 1st in Pakistan and 9th globally by the Banker Magazine, UK for yielding best profits on capital. 

RECENT RESULTS (1Q11) 

Mark-up/interest income during three months period ended March 31, 2011 increased to Rs 12,298 million compared to Rs 10,934 million in the corresponding period of previous year, a rise of 12.5% attributable mainly to volumetric growth in earning assets. The corresponding YoY increase in mark-up/interest expense was 9.5%, as mark-up/interest expense grew to Rs 6,094 million during three months period ended March 31, 2011 over corresponding quarter of previous year. As a consequence, the net mark-up/interest income grew by 15.6% to Rs 6,204 million compared to the corresponding period of previous year. The provision expense declined to Rs 312 million during three months period ended March 31, 2011 compared to Rs 1,262 million in the corresponding period of last year. Non-mark-up/interest income during three months period ended March 31, 2011 reduced by 7.9% to Rs 1,447 million over the corresponding period, attributable to lower FX revenue YoY and lesser contribution of advisory and investment banking fee income in the total fee income. 

Deposits of the bank grew by 17.2% and stood at Rs 372,254 million as at March 31, 2011 compared to deposits of Rs 317,742 million at March 31, 2010. Given the prevailing circumstances, Gross Investments at Rs 129,919 million constituted much of the Bank's earning assets growth during the period ended on March 31, 2011, which increased by 34.3% over March 31, 2010 level. Gross Advances, keeping in line with prudent lending strategy were Rs 257,249 million as at March 31, 2011, a growth of 7% over the gross advances of Rs 240,359 million as at March 31, 2010. The balance sheet size stands at Rs 450,308 million as at March 31, 2011, while the equity of the Bank as at March 31, 2011 registered a growth of 30.7% over March 31, 2010 level to reach Rs 39,547 million. 

Profit before tax of ABL increased by 43.5% to reach Rs 3,851 million during three months period ended March 31, 2011 as compared to Rs 2,683 million in the corresponding period of previous year. Profit after tax also rose by 41.3% to Rs 2,511 million compared to Rs 1,777 million in the corresponding period. Resultantly, the EPS increased to Rs 3.21 during three months period ended March 31, 2011 compared to Rs 2.27 in the corresponding period of previous year. 

BANKING INDUSTRY IN FY10 

In FY10, during the second half, devastated floods derailed the economy further with total losses of USD 9-10 billion, of which USD 3-4 billion were in the agricultural sector. This combined with the electricity and gas shortages took a toll on the growth of economic activity during the year.  

The SBP also reverted to the increased discount rate, which it decreased during the start of the year due to the decreasing inflationary pressure, seeing the risks to the economy caused by high inflation and the structural fiscal deficit. Despite this, M2 grew because of the sharp increase in borrowings by the Government from the banking sector. 

At the same time, the lending to the private sector grew at 4.8% as compared to 1.8% in FY09. The credit was primarily for working capital requirements. On the other hand, the credit for fixed investment witnessed a decline. 

However, the banks were careful in lending to the private sector as the number of NPLs rose during the year by almost 14%. 

Financial performance (FY05-10) 

The bank realised an income (profit after tax) of Rs 8.225 million as compared to Rs 7.122 million in FY09 showing an increase of 16%. 

The interest income earned in FY10 was 9.414% high whereas the interest expense rose only by 0.026% which is negligible. The increase in the net interest income of the company is higher than the average for industry, which was 8%. The overall effect was 20.67% increase in net interest income mainly led by growth in average earning asset and improving deposit mix towards low cost core deposits. There was no increase in interest expenses because there were no significant changes in its sources ie the deposits, callable money borrowing, long-term borrowing or the short-term borrowings. 

The non-interest income declined by 4.8% in FY10 as compared to FY09. This was mainly due to the decrease in brokerage income, dividend income and a significant decline in the income coming from dealing in foreign currencies. However, there was an increase in income from the sale of securities but the overall impact was of the decrease in the incomes. 

The non-interest expenses of the bank increased by 22.7% due to the increase in all the expenses including the administrative expenses, provisions and other charges. 

Deposits grew by almost 13%, which equals the industry average of the banking sector. These mainly included the fixed customer accounts. The advances grew by 7.5 % as compared to FY09, which was way higher than the industry average of just 1%. 

The earnings profile of the bank shows marked improvement over the period under consideration. Over last few years there have been slight changes in the earnings ratios as most the elements increased promotionally. These have been mainly achieved through considerable improvements in equity and profits of the bank. The bank's interest and non-interest income continued to grow. The bank's performing advances were higher this time. The yield on the earning assets grew by 12% and the cost of funding also increased by 6%. Of the non-interest income, the highest increase came from fee, commission and brokerage income as well income from the purchase and sale of securities and the dividend income. 

The bank's earnings per share for the year ended 2010 were Rs 10.52, an increase of 15.5% as compared to the fiscal year 2009 which registered earnings per share of Rs 9.11. There were no significant changes in the return to deposits, return on assets and the return on equity. 

The graph above shows the market share of Allied Bank Limited in terms of deposits, advances and the total assets in the banking sector. Allied Bank's deposits account for 7.3% of the total deposits of all the banks whereas its advances account for 7.6%. ABL's total assets constitute 6.6% of the total assets of the banking industry. This proves that ABL has one of the major shares in the market and hence come under the top 5 banks of Pakistan. 

The bank has been able to contain the growth of its NPLs till the FY08. But in FY09, they rose significantly by 46%. When compared to the industry average of NPL growth, it was 27.2% which

means that the company's NPLs were much higher. Consequently, the bank also raised its provisions for the NPLs. 

For FY10, NPLs growth has been 13% and on a comparative basis it's a bit better than industry. The industry the average growth of NPLs has been close to 14%. 

There has been a growth in the deposits as well as advances and the equity of the company as compared to 2009. The overall debt of the bank, ie the liabilities increased by 6.6% whereas the equity and assets increased by 20% and 7.5% respectively. The increase in the debt was due to the increase in deposits and bills payable. The increase in the assets was primarily due to the increase in the investments registering a growth of 28%, mainly in risk-free MTBs. 

The CAR also increased to 13.84% at December 31, 2010 from 13.47% last year. The industry average for the ratio stood at 16%. The asset mix remained dominated by advances comprising 56% of the total assets at end-December 2010. 

The CASA ratio, which shows the current and saving deposits as a percentage of total deposits, was 70.43 in FY10 as compared to 68.8% in FY09. The increase was because of the increase in all kinds of deposits from the customer. 

All the liquidity ratios of the bank have been maintained at favorable levels varying slightly from FY09's ratios. 

Other than customer's deposits, the bank's funding source is the interbank money market and borrowing from other financial institutions in general. The earning assets of the bank have been growing all throughout. Higher deposits are being streamed into greater advances, investments and lending, all generating a higher return. 

While expanding the advances portfolio, efficient portfolio diversification has been a key consideration of Allied, always. This diversification has taken into account the volatility of various sectors by placing concentration limits on lending to these sectors, thereby ensuring a diversified advances portfolio. Cement, Agriculture and Electric Generation are major contributors to the advances portfolio. These sectors are considered to be the biggest contributors towards country's GDP as well. 

The solvency ratios of the bank have persistently shown a stable trend throughout 2005-2010. This indicates bright prospects of long-term sustainability of the bank. The solvency ratios of the bank for the last there years have been maintained in the vicinity of each other. The increasing equity portion of the bank explains this. The equity to assets and equity to deposits both have shown an upward trend because of the increase in equity, assets and deposits. However, the earning assets to deposits ratio has declined. 

The bank has been a consistent distributor of dividends. However, the rat (an increase of around 100%) has made this sector one of the most lucrative ones to invest. This increasing marketability profile is reflective of Allied's high yields on earning assets and favorable liquidity and solvency positions. The price to earning ratio increased in 2010 to 6.7 from 5.9 in 2009, which reflects that the earnings as well as the market price both have increased. The market value to book value showed a similar trend. The bank announced and paid dividends of Rs 4/share in both the years, ie, 2009 and 2010. Average price of ABL's share for the year 2010 was 59.13. The graph below shows the price fluctuation of ABL's shares for FY10. 

The beta is positively related to the market as its apparent from the graph with the red line. The market was closed for most of the period in the last quarter so there isn't any significant change seen

in prices. 

FUTURE OUTLOOK: 

As against the worldwide trend of low interest rates even zero-rated, Pakistan continued to follow stance of tightening of the monetary policy using the high interest rate as a tool to contain inflationary pressures at the cost of stalled economic activities. It can be noted that SBP already charging lower mark-up rate from exporters against export refinance facility under EFS in order to enable them to become competitive in the international market. The trade and industry however feels in order to ignite a spark in the dull and dreary economic conditions and to come out of the persisting recession the incentive of low interest should have been given to all stakeholders across the board to achieve the desired results. 

Some of the market expectations were that current discount rate at 15% is too high and we recently saw a reduction of 100 basis points. In fact, the cut in the interest rate was long overdue as done by other economies elsewhere as well as in the face of stability returned into macro situation under the IMF program. Trade experts feel that in current times low cost credit is vital to stimulate the economy and international trade. Pakistan exports have a combination which can be well suited to the current world economic situation, ie low value added goods have Income elasticity's and are least likely to be affected economic slowdown. 

Challenges faced by the economy, in general, and banking sector, in specific, include restrained liquidity, slow down of economic activity, and high inflation. Despite of these issues ABL has been able to maintain its profitability. The main focus of the bank during 2011 would be on quality of assets, effective liability management through enhancing the proportion of core deposits, controlling costs and improving efficiencies while making efforts to attain higher standards of service quality and building on our non-fund based income streams. 

COURTESY: Economics and Finance Department, Institute of Business Administration, Karachi, prepared this analytical report for Business Recorder.

DISCLAIMER: No reliance should be placed on the [above information] by any one for making any financial, investment and business decision. The [above information] is general in nature and has not been prepared for any specific decision making process. [The newspaper] has not independently verified all of the [above information] and has relied on sources that have been deemed reliable in the past. Accordingly, the newspaper or any its staff or sources of information do not bear any liability or responsibility of any consequences for decisions or actions based on the [above information].