This report is dedicated to my

Parents

&

Teachers

For their love, affection and guidance

ACKNOWLEGDEMENT

All praise to Almighty Allah, the most merciful and compassionate, who give me skills

and abilities to complete this report successfully.

I pay all of my praises to the Great Prophet of Islam, Hazrat Muhammad (P.B.U.H) with

whose name my heart is enlightened and I feel the surging waves of real mirth, deep

down my soul.

I am also thankful to the management staff of Allied Bank Khayban-e-Jinnah, Lahore for

being cooperative during my internship and providing me information of report and I

would specially thank Mr. Muhammad Umar Asaf Jah (Operation manager, Allied

Bank Khayban-e-Jinnah, Lahore) for his support and involvement in helping me

prepare this report and completing my internship.

I would like to extend my gratitude to my internship advisor, Ms. Ayesha Aziz for her

advices, appreciations, and valuable suggestions in my work, which made it possible to

complete my Report.

TABLE OF CONTENTS

SUMMARY

This report gives a complete view about my internship of six weeks. The report contains

a brief introduction to Allied bank limited with its mission vision and values. ABL is a

broad based bank, providing his services for all type of customers, have a large network

of branches in & outside of the city. All branches are computerized and connecting

through each other through Internet. Looking at its business processes it has three

basic departments and which is further divided into sub departments. Allied bank chain

of command of branches starts from chief manager and further it goes to operation

manger who deals with all the department officers. I have worked in operation

department of Allied bank Khayban-e-Jinnah Lahore branch so the report gives a good

information about operation department like accounts department, clearing department,

locker department, billing department etc. This report gives information on all operations

or activities held in these departments of Allied bank. SWOT analysis of ALLIED BANK

shows that it has large number of strengths and some of weaknesses and threats. The

bank should give attention to this drawback. But bank has lot of opportunities to improve

its quality of services, and do efficient banking. Bank should give proper attention to

overcome its threats. In last i have well understanding with all the information given in

this report.

INTRODUCTION

TO

ORGANIZATION

OVERVIEW

Before giving the history of Allied bank it’s important to know that from where the word

Bank as originated. Basically the name bank has derived from three words i.e. BANCO,

BANCU, BANQUE and BACK. Bancu is an Italian word which means desk/ bench

used by Florentine bankers, who used to make their transactions above a desk covered

by a green tablecloth. The word BANCU is originated from Ancient Roman Empire

where moneylenders would set up their stalls in the middle of enclosed courtyards

called macella on a long bench called a bancu, from which the words banco and bank

are derived. According to French experts, it has been derived from the French word

‘Banque’. Whereas Germans say that the word Bank has been derived from the

German word ‘Back’, which means ‘Joint stock fund’. The given figure gives a picture

of origin of word bank.

When talk about banking in Pakistan at the time of independence in 1947 the banks

services were very badly affected and by June 30, 1948, the number of offices of

scheduled banks came down to only 81 in the territories comprising Pakistan; but by

December 31, 1973 there were following 14 scheduled Pakistani commercial banks with

3323 offices all over the Pakistan and 74 offices in foreign countries.

Banco-BancusBanque Back

Bench Joint Stock Fund

Bank(English)

National Bank of Pakistan

Habib Bank Limited.

Habib bank (Overseas) Limited.

United Bank Limited.

Muslim Commercial Bank Limited.

Commerce bank limited.

Standard bank Limited.

Australasia bank limited.

Bank of Bahawalpur Limited.

Premier bank limited

Pak bank limited.

Sarhad Bank limited

Lahore commercial banks limited.

Punjab Provincial Cooperative bank limited.

The facts show that commercial banking has made tremendous progress and achieved

a phenomenal growth since independence and that the commercial banks have duly

played a vital role as a mobilizer of people's saving to constitute the most important

source of financing in country economy. However it was felt that these banks failed to

ensure that the resources so mobilized by them flow in those sectors of economy where

they would produce the goods and services needed badly by a very large number of

people in Pakistan.

GENERAL DEFINITIONS

Generally the term BANK is defined as:

“Banks are institution that enjoys the public money doing nothing for the public”.

According the banking ordinance 1962 sec (6):

"Banks mean the acceptance of deposit for the purpose the lending or the investment of

deposit of money from the public repayable on demand or otherwise withdraw able by

cheques, drafts, orders, and otherwise".

So the BANKER is defined as:

“A person who carries on the business of banking and extend services to the general

public related to banking operations”.

When we talk about the bank, customer is always there, so a CUSTOMER is

defined as:

“Any person who has an account with the bank or whose money is accepted by the

bank or who takes loan from the bank is called a customer of the bank”.

COMMERCIAL BANK is:

“Commercial Banks are the corporations authorized by law to receive deposits and pay

such funds to others on order discount and negotiate promissory notes, drafts, bills of

exchange, and other evidences of debt; to lend money on real or personal security; to

make collectives; and conduct such other moneyed transactions as are not inconsistent

with its charter or the law under which it operates”.

HISTORY OF ALLIED BANK

Allied Bank is the first Muslim bank, to have been established on the territory that

became Pakistan. Established in December 1942 as the Australasia Bank at Lahore

with a paid-up share capital of Rs. 0.12 million under the Chairmanship of Khawaja

Bashir Bux, the Bank had attracted deposits, equivalent to Rs. 0.431 million, in its first

18 months of business. Total assets then amounted to Rs. 0.572 million. Today Allied

Bank's paid up Capital & Reserves amount to Rs. 10.5 billion, deposit exceeded Rs.

143 billion and total assets equal Rs. 170 billion. The Allied Bank's story is one of

dedication, commitment to professionalism, adaptation to changing environmental

challenges resulting into all round growth and stability, envied and aspired by many.

VISION

To become a dynamic and efficient bank providing integrated solutions in order to be

the first choice bank for the customer.

MISSION

To providing value added services to our customer

To provide high teach innovative solutions to meet customer’s requirements

To provide a challenging work environment and reward dedicated team members

according to their abilities and performance

To create sustainable value through growth, efficiency and diversity for all

stakeholders

To play a provide role in contributing towards the society

VALUES

Integrity

Excellence in service

High performance

Innovation and growth

ORGANIZATIONAL

CHARTS

CHAIN OF COMMAND (Top to Bottom)

South ZoneNorth Zone

Central 1 Zone Central 2 Zone

REGIONAL OFFICES

Branches

Sub-Branches

Head Quarters

Central office

CHAIN OF MANAGEMENT (IN BRANCH)

Chief manager

Operation manager

CD Officer

Billing Officer

CashierAdvance Officer

Clearing Officer

CONTROL OF BRANCH

In branch there is two main authorities whose check all the activities in the branch.

These personalities are chief manager and operation manager of the branch.

CHIEF MANAGER

He makes the policies of the bank

He found the new business for the bank

He taking the steps for the growth the old business

He must keep check & balance in the bank

He regularly check the bank affairs

He meet with different personalities and attract them from bank saving benefits

He check the overall performance of the bank staff

OPERATION MANAGER

He is responsible for all day too day activities

He helps to Chief Manager for different activities

He is supervised of all other sub-departments

He control the matters that are related with staff

He solve the staff problem

He make the surety of staff for theirs jobs

He provide the customer services

He is responsible for check & balance of his branch

CENTRALIZATION

In ABL decentralized system is used. The top management delegated theirs authority to

Group’s Head of different Departments. Then they further delegated their authority.

In branch the Chief Manager has authority to run all functions of the branch, then he

delegate his authority to CSM to check the bank matters

DECISION MAKING

Chief Manager makes all the policies of the branch and important decisions with the

help of operation manager.

The operation manager makes decision about day-to-day activities.

TECHNOLOGY

In ABL software called Linux is used. All the electronic activities is performed through

this software. It is vary fast way of communication

Its result is very accurate. All the Online, draft payment, and other activities are

performed through this software.

BUSINESS PROCESS

ANALYSIS

There are three basic departments of ABL and which is further divided into sub

departments. Basic departments are:

Operation department

Credit department

Foreign trade department

For the figure check Annexure ( ) Page ()

OPERATION DEPARTMENT

Operation department is further sub-divided in to:

Accounts department

Clearing department

Foreign exchange department

Billing department

Locker department

For the diagram check Annexure () Page ()

ACCOUNTS DEPARTMENT

ACCOUNT OPENING

1. All accounts opened in ABL are required proper introduction from the account

opener

2. It should be thoroughly verified that customer profile has been completed as

required.

3. The account openers must sign account opening forms in the presence of customer

service manager or chief manager.

4. If there is some mistake in filling account opening form than its necessary to take the

sign of account opener because it is to confirm that the information was not changed

in his absence.

The CSM will perform due procedure and ensure to Know Your Customer principles will

be responsible for customer interviewing.

1. Individual accounts in case the CNIC does not contain a photograph, the bank

should obtain other documents like Driving License.

2. In case of salary account, attested copy of his service card is required.

3. Full particulars of occupation should be mentioned.

4. If a blind person is properly introduced, then this account should be opened with

a photograph affixed on the account opening form as well as the specimen

signature card.

5. In case of illiterate person, attested passport size photograph of the new account

holder besides taking the right and left thumb impression on the specimen

signature card.

DORMENT (IN-OPERATIVE) ACCOUNTS

The accounts inoperative for 1 year are called dormant accounts. When the CSM

checks it’s necessary to send a letter to remind the account holder.

UNCLAIMED ACCOUNTS

1. Those current and PLS Saving accounts which remain inoperative for 10

years from the last date of operation are classified as unclaimed account

2. In case of term or time deposits, its date of in operation are counted from the

Dates of their expiry of tern

CHEQUEBOOK ISSUANCE

1. To facilitates customers to withdrawal cash from their account cheque books are

provided to account holders.

2. The cheques are the most important, convenient and well-established medium of

modern banking used for withdrawals of funds.

POLICY

Cheque books against new account shall be issued against requisition form after

account opening is approved by the officer.

STOP PAYMENT

The given information covers the stopping payment, and returning the specific cheques,

un-paid.

POLICY

Stop payment instructions shall be received in writing, however instruction on

telephone are also entertained provisionally which must be confirmed by letter.

Charges shall be recovered for each stop payment instruction as per bank’s

latest schedule of charges.

Stop payment instructions shall remain in the system for bank cheques until the

cheque in question are presented and returned or the account is closed.

ACCOUNT CLOSING

Accounts are generally closed for the under noted reasons: -

At the request of Account Holders.

Account running with zero or nominal balances

Accounts reflecting balance below minimum balance requirement are reviewed

periodically and the customers are advised to deposit more funds in their

accounted, falling with their accounts can be considered for closure.

Account holders shall be promptly intimated for closure of their account and

requested to return un-used cheque books.

Un-utilized cheque books surrender by the account holder shall be destroyed and

recorded in the system.

DEMAND DRAFT PAK RUPEES (PAYMENT FOR OUT OF THE CITY)

A draft is one of the most popular banking instruments in the trade to settle

business deals and transferring funds from one place to another place.

The bank has taken radical steps for a speedy issuance of draft through

automation and introduction of a more simplified procedure with is described

below.

DRAFT PAYMENT

Drafts drawn in PAK rupees crossed and restricted for credit to payees A/Cs are

generally received through “CLEARING” or on special collection bank.

Quite a number of drafts not bearing restrictive endorsements and crossing are

presented at ABL counter for encashment. Proper identification is needed for

such draft

PAYMENT ORDER (PAYMENT FOR WITHIN THE CITY)

Pay order is bank instrument issued by a bank in PAK rupees at the request of

the customer to transact payment to named payees through banking channel.

Generally payment against such cheques (pay orders) is restricted to “Payees

account” and as such is required to be enrooted through a Bank Account locally.

CLEARING DEPARTMENT

CLEARING

Clearing is a process whereby bankers settle their mutual accounts for claim arising on

account of various instrument presented by one bank drown on the other.

Where the SBP has its offices; the clearing has controlled and managed by the SBP. At

other places, this function is performed by the NBP. The assembly of representatives of

the member banks is the CLEARING HOUSE.

Clearing house in every city has its own timing for exchange of cheques and for return

of unpaid cheques.in cities where NIFT is functional the cheques deposited drown on

ABL branches/ other banks of the area are delivered to NIFT for clearance.

CATAGORIES OF CHEQUES/ INSTRUMENT

In every branch a number of cheques are received from customer for clearance and

credit to their account.

The cheques received may belong to any of the following categories:

Drawn on the same bank.

Drawn on some other branch of the bank in the city.

Drawn on some branch of other bank of the same city.

Drawn of some outstation branch of the same bank.

Drawn on some outstation branch of other bank.

Cheques drown on the same branch are handed over to the deposit/ CD department.

The endorsement may be:

i. Payee’s account will credit on realization.

ii. The officer will receive clearing cheques ‘will also receive other cheques means

for cash transfer’ transfer delivery and collection

CASH TRANSFER CHEQUES: are those, which are, drowning on the same

branch, which they are received.

TRANSFER DELIVERY CHEQUES: are those, which are, drowning on other

branches of the bank in the same city.

COLLECTION CHEQUES: are those proceeds of which are collected from

outstation banks

ACCEPTANCE OF CHEQUES

Cheques is crossed but not specially crossed to any other bank

Cheques is not damage or torn

Cheques is not post dated or stale.

Amount in word & figures is the same.

Nothing on cheques indicates that the account holder is not entitled to

receive the amount

Cheques is drown on branch of a bank functioning with in the city

INWARD CLEARING

The inward clearing instruments are received by the branches along with a jotting sheet

and the following steps are taken by the branches:

a. Fresh jotting is taken by the branch, of all cheques are received inward clearing

and the total is got tallied with the total of jotting sheet provided by the NIFT in

the inward clearing register.

b. The clearing in authorized officer checks special crossing; clearing stamp and

endorsement on each instrument.

c. For the cheques honored the following transactions are passed.

Dr. Concerned account

Cr PAK account

SPECIAL CLEARING (SAME DAY CLEARING)

a. Same day clearing includes the cheques received by authorized branches of

member banks with in the 4 KM radius area of NIFT office.

b. The cheques of 500000/- & and above received by the branches in early hours.

c. The charges for the same day clearing are received by the collecting branches

from the customer where as they are no charge for local clearing

CLEARING TRANSFER THROUGH NIFT

OUTWARD CLEARING

Clearing through NIFT has change the performance of clearing function all

together. The system does not differentiate between Clearing & Transfer delivery

cheques this necessitating the use of “CLERAING STAMP” for transfer delivery

instruments as well.

FORIEGEN CURRENCY ACCOUNTS

ABL deals with these foreign currencies:

DOLLER

EURO

POUND

SAVING AND TERM DEPOSIT ACCOUNTS (FOREIGN CURRENCY )

BANKS authorized to deal in foreign currencies are allowed to open foreign currency

accounts freely for:-

1. Pakistani nationals, resident in or outside Pakistan including those with dual

nationality.

2. Joint names of resident & non-resident.

3. Resident companies, investment banks / companies resident in Pakistan with

foreign share holding diplomatic mission and all international organization etc.

4. Polices and procedure pertaining to opening of Foreign Currency Accounts has

been outlined below.

POLICY

1. All receipt of foreign currency for credit to the foreign currency accounts and

payments out of such accounts is required to be reported to Treasury. COK on a

daily basis and to State Bank of Pakistan on monthly basis.

2. All non resident accounts fro “Classification Of Deposit” purpose should be

identifiable as “Non-Resident accounts”

3. In view of excessive shipment and insurance cost, the banks may charge

handling commission against deposit of foreign currency.

4. Minimum balance for opening of saving account/ issuing of term deposit shall be

advised by the central office Karachi.

PROCEDURE

1. Customer sign on foreign currency account opening form, specimen signature cards

in the presence of CSM.

1. The customer due diligence is completed to determine the true identity of the

customer.

2. Opening of account is approved by CSM

3. A “10” digit account is created in the system, detail such as account title, address

and type of account.

4. Pay in slip for depositing cash filled up and check for correctness all information

CASH & LOCKERS DEPARTMENT

Cash Department deals with the Cash Receipts, Cash Payments and Utility Bills

(Telephones Bills, Soi Gas, & Electricity Bills).

LOCKERS

Lockers/ services are extended at several branches, to facilitate customers to protect

their valuables form ever increasing threats to security.

SAFETY STANDARDS PERTAINING TO LOCKER’ VAULT

1. Lockers are placed in the standard strong vault fitted with the grill door and heavy

door. Combinations separate from main cash vault.

2. Armed Security Guards are deployed in the branch day and night.

3. Lockers rooms are secured from all sides and constructed as per specification of

the bank for lockers.

4. Branch having Lockers display sign board “lockers available” in the branch lobby.

LOCKERS KEYS

1. Keys of un-rented locker and spare locks, if any, is entered in the register and

stored in the cabinet placed in the lockers vault under dual control these keys

are taken when lockers are required to be rented.

2. Access to locker’s room is allowed to the lessees only prohibited to the staff

not connected with the lockers.

3. Stock of the keys pertaining to un-rented is physically verified quarterly and

balance on the monthly.

OPENING/ CLOSING OF LOCKERS VAULT

Opening and closing of lockers vault is supervised by two designed officers who

ensure that vault is opened in time in the morning and closed immediately after

the banking hours

Before closing the vault at the day end custodian ensures that: -

- No one is left in the vault and that every thing is in order.

- All electric appliances and equipment are switched off.

LOCKERS CAN BE RENTED TO ACCOUNT HOLDERS

1. Individual who must be adult and legal age

2. Joint enters with clear operations (single, jointly, either or survivor),

3. Companies. Corporation, Association, and Societies.

LOCKERS SHELL NOT TO BE RENTED TO :

MINOR

NON ACCOUNT HOLDER

BLIND

INSANE

CREDIT DEPARTMENT

I haven’t worked in credit department but giving brief introduction to it. ABL financing

department is very strong and involved in many types of financing, but there are two

most important, Cash & Running financing.

ABL makes many type of Loaning for their customer. This Loaning is against Pledge,

(Property or Security).Flexibility on interest rate is depend on the size of the Loan.ABL

makes 50% loan on 100% security.

Some silent features of these Loans are: -

A. CASH FINANCING

This is a seasonal financing.

Have large amount

This loan is makes against pledge (stock). The consumer cannot sale his

stock without the permission of the bank.

B. RUNNING FINANCING

This is regular financing.

Have large amount

This loan is depend on the condition of the business

C. AGRICULTURE FINANCING

This is a regular loan

Heavy amount

It is makes against the Pass Book of the land

The customer cannot sale his land without the permission of the bank

D. CONSUNER FINANCING

Interest rate is high on consumer financing

There are many type of loans under consumer financing

I) Home loans II) Education loans III) Car loans

FOREIGN TARDE DEPARTMENT

TRADE FINANCE –IMPORT

The import dealing is restricted to branches holding a Foreign Exchange License from

State Bank of Pakistan to deal In Import & Exports.

Import in Pakistan is regulated by “Foreign Trade Policy” announced by Ministry Of

Commerce, Government of Pakistan.

LETTERS OF CREDIT

All export except those specifically exempted in the import policy, are subject to

compulsory Letters Of Credit/ registration of contracts with the banks.

A letter of credit is defined as negotiable instrument issued by a bank at a request of the

customer, undertaking to repay the negotiating bank, subject to compliance of all terms

and conditions specified therein.

Payment under LC is made either on presentation of a draft drawn at sight

accompanied by document as specified in the credit. Or by acceptance of a “bill of

exchange” for payment of maturity of the issuance period (30, 90, 120 days)

SWOT ANALYSIS

AND

COMPETITIVE

STRATEGIES

SWOT ANALYSIS

SWOT analysis comprises Strengths, Weaknesses, Opportunities and threats. The

SWOT Analysis of Allied Bank Limited is as follows;

STRENGTHS

High motivation of employees to their work is strength. The sense of

belongingness is always present in the employees that they have to struggle for

their own survival.

Salaries of the employees at ABL are now very reasonable. The newly hired

graduates are paid very smart salaries that enhance their capabilities.

The rates of interest on financing schemes at Allied Bank Limited are very low as

compared to other PRIVATE Banks that helps a lot in attracting customers

towards ABL.

ABL is broad based baking for all type of customers

ABL network of branches is very large with 743 Branches

ABL Saving Schemes are very attractive

Branches are located on well placed

All branches with online system

ATM service is out standing and free of charges

Counter service is very good

All transactions time period is very short

Customer dealing is very well on every level

Allied bank starts more and more schemes for their customers.

It has arrangements with large number of Correspondent Banks/Exchange

Companies.

Entertainment facilities are available in the Bank when customer goes to the

Bank and wait for a longer time. These facilities are newspaper, magazines, etc.

Audit department is very good of ABL.

Auditing is done twice time monthly. There is also surprise audit after 4 months

or 3 months.

WEAKNESSES

Customers have to wait for a long time in rows; even no proper sitting arrangement

is given to the customers.

The advertisement facility is not so good to attract the proper clientage and to

reflect the true image of the bank. It creates more ambiguity among the customers

about the policies and the facility rendered by the bank.

Turnover of staff is high

The IT is not good of ABL. Systems get hanged and customers has to wait.

ONLINE SYTEM is not as good as mostly branches are link down whenever

transaction is needed.

Uncertainty of jobs is high (job rotation)

New staff is completely un-skilled

Selection of un-trained staff

There is no balance in job hours

Advances rate of Allied Bank is also very low with respect to its competitors..

Top management sometime show very harsh behavior with employee, it makes

Dissatisfaction in job.

The staff is less in this branch so in the absence of any staff is really difficult to

handle the work load.

ATM SERVICE is not so good as lots of complaints from customers regarding

general error or ATM CARD stuck in or some other problem.

OPPORTUNITIES

Bank can provide attractive saving schemes; he can attract more customers for

saving their money into the bank

ABL online system is available in every branch; by improving it more the bank

capture more market shared

ABL has a large number of branches, if management provides highly qualified

staff, and quality of service; they get a leading position in banking sector

An ABL ATM service is free from charges, through to this service he can take a

dominant step in his success but it also needs some improvement.

ABL classified Loans are very short. So he can make more loans for increasing

their revenue

By applying a good technology in every branch, he can give more customer

satisfaction

THREATS

In banking sectors competitions is increasing day by day due to entrance of new

banks with highly qualified staff and good technology, this situation can make a

problem for ABL growth

ABL has important accounts of many industrial companies, but due to these some

bad policies he can lose their accounts

ABL deal with Foreign Currencies is less to other banks. Due to this activity he can

lose their market share

The schemes of Other banks are more attractive from ABL, they offer higher rate

of interest

ABL has not a sufficing trained staff, this deficiency can create a threat for ABL

growth

There is a need of proper marketing because certain schemes face failure due

ignoring marketing of the product

Due to low entry barriers, there are more competitors, also the global competition

has increased

Financial environment is changing day by day, new technologies are introduced

by foreign banks that provide customers by efficient and quick services.

ATM service is affecting customers satisfaction they should consider it as an

important issue

The IT system needs to be improved.

COMPETITIVE STRATEGIES

It’s not so easy for banks now days in this global competition to survive and make a

good place in the market. They need high-quality strategies to deal with it and keep up

the competition.

ABL Bank had embarked upon a two-pronged strategy of adopting a rationalization

program to bring down costs, introduce innovative products and offer good services to

customers.

Measures, which have already been implemented, are set out below:

With the objective of achieving decentralization and cutting down expenses, the

decision-making has been reduced from four to two tiers. 68 controlling offices,

comprising of 4 provincial, 18 circle and 46 zonal offices have been consolidated

into 16 regional offices.

With a view to improving efficiency and right sizing the ABL network, 66 branches

have been closed or merged.

.

Treasury operations have been re-organized on a modern technology platform.

Expensive deposits have been reduced, improving the interest margin.

The Bank now plans to focus on further strategic objectives, as set out below:

1. Diversify products & services:

Anticipating customer needs, ABL is increasing its focus on new products and services

through leveraging its extensive branch network. The Bank is introducing various types

of financing structures tailored to the capital investment requirements of its corporate

clients as well as small & medium sized enterprises.

2. Focus on consumer banking:

Making use of its computerized network of branches, the Bank plans to enhance its

market share and profitability via focusing on consumer banking products and services

as well as integrating e-banking into its delivery channels.

Online facility

Now the bank gives you the absolute convenience of instant access to a host of banking

facilities and personalized services 24 hours a day, 7 days a week, 365 days a year.

Simplify the way you bank and experience a higher level of convenience.

Online features

By Allied bank Online you can;

1 Check your account balances

2 Transfer funds between your own accounts and to a third party account

3 You can use your card for loan account payments

4 Check transaction history of your accounts

5 Get your account statement through fax

6 Receive information on various Allied bank products and services

7 Find out status of your card or loan application

8 Request balance or reference certificate

9 Get currency exchange rates

10 Issue stop payment instructions

11 Report loss of your cheque book

12 Request change in address and telephone numbers

3. Increase employee productivity though training & new techniques

The Bank seeks to increase employee productivity through a combination of training

and implementation of modern human resource techniques. Frequent in-house and

external training programs are expected to help the Bank in maintaining and developing

an efficient work force.

4. Toll free number

The toll free number connects to Allied bank by dialing from anywhere within Pakistan.

Call costs nothing to the customer and they can easily contact the staff of allied bank.

By offering all of the above ABL makes its way through the tough competition of the

day. This helps the bank to keep pace with growing needs of its customers and

anticipate their future needs and manage them accordingly in time thus to make sure

that the quality is not compromised and the customers get what they want.

WHAT I LEARNED AT ABL

LEARNED AS AN INTERNEE

Although the operations of a single bank are very wide but the branch in a specific

location do not provide all those services and functions as per the requirement of the area

or the customers residing in that area. As an internee, I worked in the following fields of

departments;

General Banking especially in Account Opening

ATM card applications/issuance of ATM cards to customers

Cheque book issuance

Clearing

CDR/PO/DD

The detail of what I learnt and observed at the mentioned branch is given in the

following:

ACCOUNT OPENING PROCEDURE

The person who desires to open an account with allied Bank Limited has to submit the

application for account opening on a prescribed form along with the initial deposit. The

accounts document requirement should be fulfilled properly. If for any reason the

account is opened with incomplete documents or information, or if the bank requires any

further information at any time, the bank may contact the account holder and get the

required information. Only one account in a particular type can be opened in the same

name.

The detailed procedure of the opening of account with Allied Bank Limited is given in

the following;

First of all, the customer gives an application on a prescribed format to open an

account with the bank.(in business account)

The responsible person on account opening seat will enquire that customer that

why he wants to open that particular account, and where he resides, if he lives far

from the area of the bank, the person might be suspicious.

The question must arise in the mind of the banker that why he chooses our branch

instead of opening an account at the nearest branch to his area.

After that an account opening form is given to the person to fill it completely.

Account opening form should be duly signed. The specimen of signature card is

given to customer and that must be filled carefully.

Copy of CNIC or Passport, Original must be seen by the Account Opening Officer

and copy attested by him.

The certificate from the employer of the customer must be obtained to confirm that

he works over there.

The person opening the account must mention the amount depositing at the time of

opening of account.

The customer must also have to fill the KYC (know your customer form).

After completion of the above procedure, the account opening officer checks all the

form carefully and send it to customer services manager and chief manager and

give an account number.

After that, a letter of thanks is sent to the customer as well as to the introducer. It is

also a way to confirm the customer ’s address.

When all the procedure is completed, the customer is given a chequebook to

operate the account on normal basis.

All this procedure of opening of account to issuance of cheque book takes up to 5

to 6 days at ABL.

The major information that the customer has to fill in is given in the following.

Branch Code

Date of Opening of Account

Nature of Account (For Example, Current, PLS, Foreign Currency, Joint

Account etc.)

Passport size photograph of the person duly attested.

Name of the person or Firm

Initial Deposit

Purpose of Opening of Account

Addresses of Next to kin

Clear signature of the person.

ISSUANCE OF CHEQUE BOOK

The procedure of issuance of cheque book to the new customer or to the existing

customer is given in the following:

a). NEW ACCOUNT HOLDER

The issuance of cheque book to the new customer is issued after the account is

opened.

Cheque book is received from COK after 5 or 6 days of account opening.

The cheque book register is maintained where the serial number of issued

cheque-books is recorded.

The book of normally 25 leaves is issued to the profit and loss account holder

and of 100 leaves is issued to the current account holder.

The book contains the account number and the title of account.

The officer stamps the account number on each and every leaf of the book and

counts the number of leaves as well.

After that, the title of account is written in the front page of book and in the

specific leaf in the cheque-book, which is used to take another cheque-book.

That specific leave is usually in the middle of the cheque-book.

The officer takes the signature of the receiver of cheque-book on the issuance

register and also mentions whether it is issued to holder or bearer.

Acknowledgment is signed by the customer.

b). EXISTING ACCOUNT HOLDER

The existing account holder comes to the bank with that particular leaf which is

present in all the cheque-books; the existing account holder fills that leaf carefully

and gives it to the officer issuing the cheque books.

The leaf contains the following information:

Title of Account / Name of the account holder

Account number

Date

Signature of account holder

Serial number of the cheque-book of which is a leaf of.

Then all the procedure of issuance of the cheque-book is the same as that of the

new account holder.

But only one thing will be different, that is the confirmation of the signature of the

account holder so as to confirm that the cheque-book is going to be issued to the

real account holder.

DEPOSIT / WITHDRAWAL OF CASH

The deposit and withdrawl of cash to and from the bank account has the following

procedure to be followed by the account holder;

a). DEPOSIT OF CASH

The deposit of cash to the account of the same person or to the account of

another person in the same branch of the bank is done through the deposit slip,

which is easily available at the counter of the bank.

The depositor fills the deposit slip; it contains the tile of account, account number,

amount to be deposited, amount in figures and amount in words, signature of the

depositor etc.

The depositor then takes this slip to the cash counter and the cashier receives it

and pastes the received bank stamp over the both leaves of deposit slip.

One leaf is returned back to the depositor and the other leaf with amount to be

deposited is taken over by the cashier.

b). WITHDRAWAL OF CASH

The procedure of withdrawal of cash is also very simple, but the concerned

officer and the cashier must be very careful while giving cash to the person

bearing the cheque.

The cheque is used for the withdrawal of cash usually. The person must fill in the

cheque carefully. Signature and the amount of the cash to be withdrawn must be

written carefully.

The cheque also holds two options, holder or bearer. The cheque then presented

to the cashier for withdrawal.

The Cashier will send that person to the officer for the confirmation of the

signature and the verification that whether his account contains the amount he is

asking to withdraw.

After verification, the cheque is taken from the customer and amount in the form

of cash is handed over to the person bearing the cheque.

For 100% verification, (if the person bearing the cheque is suspicious) the

account holder is contacted through telephone and then confirmation is taken

prior to the withdrawal.

APPLICATION / ISSUANCE OF ATM

The account holder of Allied Bank Limited is given the facility to take the facility of

ATM free of charge. But it is always at the discretion of the account holder to avail

the ATM facility or not. If he wants to avail the ATM facility, he has to check the

option in the account opening form about the issuance of the ATM card. In other

case, the procedure is as follows;

In case, the person has unchecked the option of ATM issuance at the time of

account opening, he follows the following procedure.

An application is filled to the customer services manager for the issuance of

ATM card, there must also be mentioned the title of account and the account

number.

The person is given a prescribed format for the issuance of ATM, the person

fills it, it usually contains the name of person, mother’s name, phone numbers,

mobile numbers, CNIC number, account number, type of account and signature

of the person etc.

The application will be processed in about 15-20 days and the application is

sent to the head office.

The head office issues the ATM cards to all the persons who have applied for

it. Within 15-20 days, the ATM cards are sent to the branch offices.

The persons, whose ATM cards are received, are contacted so that they

come and receive their ATMs.

An ATM issuance register is maintained in which the name of the ATM holder,

his account number, ATM card number is written. So when the customer gets the

ATM from the branch, the signatures are taken on the ATM register for

confirmation.

CANCELLATION OF ATM CARD

If a customer wants o cancel his ATM card, the procedure is as follows:

The ATM card holder comes to the manager and gives an application for the

cancellation of ATM whether it is already is use or not.

The card is handed over to the manager, the manager punches the card and

make a hole or cut it and to make it useless and attach it with the application.

The application is then forwarded to the head office, where the ATM is

cancelled from the database.

This is all procedures of application, issuance and cancellation of ATM cards by the

account holders of the Allied Bank Limited. ABL is providing the facility of using ATM

free of charge.

MISCELLANEOUS

The term miscellaneous includes the issuance of deposit at call, online slips,

different type of debit credit entries(VOUCHERS) ,and intercity and Pay orders,

demand drafts (outward bills for collection) etc. I was exposed to the practical

training of that particular area but I observed it and I would like to mention a brief of

them in the following.

CLEARING

“It is a process by which the counter-claims of bankers are set off and balances are

settled or cleared through the entries in the books of bank.”

It is process through which one may receive the amount of a cheque

presented the bank while the cheque is drawn on any other bank.

This system is operating within a specific city transfers.

In Pakistan State Bank of Pakistan acts as clearing house.

Clearing house of SBP has shifted a lot of its work to a private institution

named as “National Institutional Facilitation Technologies” (NIFT).

NIFT collects all the cheques, demand drafts, pay orders, traveler

cheques from all the branches of all the banks within a city through its

carriers and send them to the branches on which these are drawn for

clearing.

A summary is prepared having the number of instruments and total

amount of cheques sent to a specific branch and similar summary is sent

to SBP where accounts are settled accordingly.

The officer at the clearing counter inspects the cheque before accepting

them for collection through clearing house.

Inspecting the cheque is

o That the cheque is not crossed

o The cheque is drawn on local bank

o The cheque is not mutilated or torn

o There in no unauthorized alteration in the cheque

o The amount in words and figures is same

o All alterations and addition or cancellation must bear drawer’s full

signatures

Scrutiny of pay in slip and counterfoils is;

o Depositor is a customer of bank

o The title and no of account is mentioned

PAY ORDERS ,CDR AND DEMAND DRAFTS

Allied bank has manual way of making all these. While making P.O, CDR or DD things

should be kept in mind:

No cutting on leaf and if any mistake get it signed by officer.

Get signed by 2 officers

Put tap on name of favoring and amount

Write “PKR not over ………”above or at end with specific red color pen

Two vouchers and made one is credit and other is debit

Pay order, CDR account is credit

Payees a/c credited

Stamps of payees a/c is necessary

Demand draft is different it only includes the application of DD and than

DD is issued.

PROBLEMS ENCOUNTERED

The major problem was the hectic routine of the bank. I realized that practical life was

far different from books. The real problem I faced in the bank was the difference

between what I had learnt from the books and what was being practiced. Practical

application of the theories learnt during academic sessions was a great challenge,

which I overcame by the cooperation of the staff.

HOW EXPERIENCE AFFECTS MY CAREER

While doing my internship I have been through many experiences which I think has

greatly improved my skills. During internship when I have to handle few annoying

customers it taught me how to deal with it. Time management was improved and how to

handle your mistakes and have learned a lot from it. These things can help me in my

career a head. My internship was my first experience to the professional world and this

was a kind of training for me that how to survive in professional world and how to tackle

everything.

Internship helps me in learning new things and taught me there is always a space for

learning and we should learn at each stage a new thing which will be helpful further.

I have been talking to new customers and this finished my hesitation to talk to some

new person so it really improved my communication and interaction skills. So this will be

very useful for me further in my professional life.

SUGGESTIONS/

RECOMMENDATIONS

SUGGESTIONS/RECOMMENDATIONS

Management must provide a good trained staff in all branches

Management should make the policies that helped in reducing the turnover of the

staff

Management must provide the training programs to the employees for improving

their skills

Management must take step in reducing the uncertainty in jobs

Bank should improve his IT Department

ATM facility should be provided in all cities

If the bank will reduced his Online commission, he can get more deposit

Bank can provide attractive saving schemes; for attracting more customers

ABL online system is very strong; by improving it more the bank capture more

market shared

ABL ATM services is free from charges, through to this service he can take a

dominant step in his success

ABL should see the ATM machine and its working.

By applying a good technology in every branch, he can give more customer

satisfaction

ABL must provide better service for their big account holders

Every person should be well known about his responsibility

Managers make surety of implementation of rules & regulations in his branch

Management makes the decision for improving in all the departments

Making attention on Foreign Currency Department

Management makes he policies that helped in reducing the turnover of the staff

Management must provide the training programs to the employees for improving

their skills

When any one comes to operate the locker the things should be checked through

metal detector before he/she puts in the locker.

ABL should work on the advertisement of its schemes.

Online transaction through branches needs to be improved so they should work

on the IT department.

There should be more staff in this branch as its covering more market but to

handle customers staff is less.

The security guards should check each and every person who enters in the bank

even if they know that person.

The bank is still depending on manual work to a great deal which causes slow

performance and increases the chances of mistakes.