INTERNSHIP REPORT Allied Bank Limited (ABL)

47 Pages·2012·1.32 MB·English

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INTERNSHIP REPORT
Allied Bank Limited (ABL)
ISLAMABAD, PAKISTAN

Submitted By
Syed Ahsan Ali Zaidi
Mcxxxxxxxxx
Session 2009 – 2011

Submission Date 12th Jan 2012

Virtual University Of Pakistan

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………All vu39 member’s especially my cute little sweet fellows who
told me that report is nothing but a “sir dard” :D ….
I did nothing as I did my efforts,
&
Special Thanks Goes To
Mr. Lonely
:p red alert
The people who helped me out
Hibba, Sohnie, Seph, ayisha, sweety cuteey, fizza pervaiz

THANK YOU SO MUCH!

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First of all, I want to express all my humble thanks to ALLAH who is very sensitive about each
and every activity of all his men and without whose help, I am unable to accomplish any
objective in my life. All respect to his Holy Prophet HAZART MUHAMMAD (Peace Be Upon
Him) who brought the light of knowledge when the humanity was wandering in the desert of
ignorance.
Secondly, I am grateful to my prestigious institute that made his learning opportunity a part of
our education, especially. Internship coordinator MR. Imran who not only guided me well but
also helped me in finding such an excellent place for internship. I am also thankful to all other
teachers as the knowledge imparted by them enables me to gain knowledge of the organization in
best way.
I would also thank to all the staff of Allied Bank, particularly Mr. Rana Riaz Ahmad who gives
me an opportunity to work in the bank and gave me a chance to explore my knowledge.
I submit my earnest thanks to my affectionate parents, who always remains at my back to
support me, I can never give the return of their un tired struggle for me, but I can only prove
myself as they expect from me. And I am also grateful to all other family members and all my
friends for their moral boosting and spiritual support during my study and especially in this
internship program. I went to pay gratitude to all persons, who had helped me in completing this
support.
Muhammad Chatta

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MBA (Finance)

EXECUTIVE SUMMARY

This report is about my internship program with Allied Bank Limited. In this comprehensive
report, I have discussed about every major aspect of the bank, which I observed and perceived
during my internship program. In this report you will find the detail about the bank right from its
incorporation to the current position. Along with it, the processes, policies and procedures of the
bank are also discussed in detail.

During my internship program, I mainly worked in General Banking & Finance. All the
departments have been discussed in detail and all the policies and procedures have been
described thoroughly.

As the main purpose of internship is to learn by working in practical environment and to apply
the knowledge acquired during the studies in a real world scenario in order to tackle the
problems using the knowledge and skill learned during the academic process, In this report the
detailed analysis of the organization has been done and all the financial, technical, managerial
and strategic aspects have been evaluated to analyze the current position of the organization.
Along with it, the background analysis, the prevailing competition analysis, the business process
analysis, and the internal environment and external environment of the organization have been
discussed and the recommendations for the improvement have been made wherever required.

In the end the learning and experiences section consists of all the policies, processes, practices
and procedures which I have undergone through and learned during my internship program. This
report also contains my perceptions about the employees’ satisfaction, motivation level and the
working environment of the organization.

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Index Description Page
1 OVERVIEW OF ORGANIZATION
BREIF HISTORY OF ORGANIZAITON 9
HIERACHY CHART OF THE ORGANIZATION 13
BUSINESS VOLUME 14
PRODUCT LINES 15
COMPETITORS 16
INTRODUCTION OF ALL THE DEPARTMENTS 17
COMMENTS ON THE ORGANIZATIONAL STRUCTURE 33
2 PLAN FOR THE INTERNSHIP 34
3 TRAINING PROGRAM 35
DETAIL DESCRIPTION OF TASKS ASSIGNED 36
4 RATIO ANALYSIS 38
Bank Ratios DFIs
1) Net Profit Margin
2) Gross Spread Ratio

3) Non Interest Income to Total Income Ratio
4) Spread Ratio
5) Return on Assets (ROA)

6) Du Pont Return on Assets Ratio
7) Return on Total Equity (ROE)
8) Debt Ratio

9) Debt / Equity Ratio

10) Times Interest Earned Ratio
11) Advances / Deposits Ratio

12) Operating Cash Flow Ratio

13) Dividend per Share

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14) Earning per Share

15) Price/Earning Ratio

5 FUTURE PROSPECTUS 55
6 CONCLUSION 56
7 RECOMMENDATION FOR IMPROVEMENTS 57
8 REFRENCES & SOURCES USED 58
9 ANNEXES

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OVERVIEW OF THE ORGANIZATION

A. The Brief History Organization

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 eighteen 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.

The Pre Independence History (1942 to 1947)

In the early 1940s the Muslim community was beginning to realize the need for the active
participation in the field of trade and industry. The Hindus had since the late 1880s established a
commanding presence in these areas and industry, trade and commerce in the undivided Sub-
continent was completely dominated by them. Banking, in particular, was an exclusive enclave
of the Hindus and it was widely believed, and wrongly so, that Muslims were temperamentally
unsuited for this profession. It was particularly galling for Khawaja Bashir Bux to hear the gibe
that “Muslims could not be successful bankers”. He decided to respond to the challenge and took
lead in establishing this first Muslim bank on the soil of Punjab that was to become

Australasia Bank (1947 to 1974)

Australasia Bank was the only fully functional Muslim Bank on Pakistan territory on August the
14th, 1947. It had been severely hit by the riots in East Punjab. The bank was identified with the
Pakistan Movement. At the time of independence all the branches in India, (Amritsar, Batala,

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Jalandhar, Ludhaina, Delhi and Angra (Agra)) were closed down. New Branches were opened in
Karachi, Rawalpindi, Peshawar, Sialkot, Sargodha, Jhang, Gujranwala and Kasur. Later it
network spread to Multan & Quetta. The Bank financed trade in cloth and food grains and thus
played an important role in maintaining consumer supplies during riot affected early months of
1948. Despite the difficult conditions prevailing and the substantial set back in the Bank’s
business in India, Australasia Bank made a profit of Rs 50,000 during 1947-48. By the end of
1970 it had 101 branches. Unfortunately it lost 51 branches in the separation of East Pakistan.
The bank did well in despite losing lot of its assets. By the end of 1973 the bank had 186
branches in West Pakistan.

Allied Bank (1991 to 2004)

As a result of privatization in September 1991, Allied Bank entered in a new phase of its history,
as the world’s first bank to be owned and managed by its employees. In 1993 the “First Allied
Bank Modaraba (FABM) was floated.
Allied Bank (2005 to date)

In May 2005 Ibrahim Leasing Limited was amalgamated by transfer to and vested in with and
into Allied Bank Limited. ILL shareholders were issued ABL shares in lieu of the ILL shares
held by them. Application for the listing of ABL shares in all the Stock Exchange Companies of
Pakistan was made. ABL was formally listed and trading of the shares of the Bank commenced
w.e.f. the following dates.

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V i s i o n

To become a dynamic and efficient bank providing integrated solutions in order to be the first
choice bank for the customers

M i s s i o n

(cid:1) To provide value added services to our customers
(cid:1) To provide high tech innovative solutions to meet customers’ requirements
(cid:1) To create sustainable value through growth, efficiency and diversity for all stakeholders
(cid:1) To provide a challenging work environment and reward dedicated team members
(cid:1) according to their abilities and performance
(cid:1) To play a proactive role in contributing towards the society

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