ABL FULL REPORT

INTRODUCTION
Commercial banks play a role of vital importance in the economic growth of a country. Banks
mobilize idle savings of public and provide finance to various sectors of economy. In spite of
vital importance, there was shortage of branches of commercial banks in the areas of sub-
continents, which now constitute Pakistan. “When Pakistan got independence, there were only
487 branches of commercial banks, which were further reduced to 195 as at 30/09/47 due to
shifting of a number of branches to India or U.K. The Reserve Bank of India, which was made
responsible to exercise control over banking sector in both the dominions, did not perform its
duties properly in Pakistan.
Allied Bank is the first Muslim Bank to have been established on the territory that became
Pakistan.
Established in Dec, 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 ABL paid up capital and reserves amounted to Rs 10.5 billion deposits
exceeds Rs 143 billion and total assets equal to Rs 170 billion the Allied Bank story is one of
dedication commitment to professionalism, adoption to changing environmental challenges
resulting into all round growth and stability, envied and aspired by many.
1.2 BACKGROUND OF THE STUDY
The Department requires an internship based on the theoretical and practical learning of student.
The concern of this report is to study and analyze the performance of Allied Bank Limited
(ABL) in the banking industry of Pakistan. Main purpose of this program is to make students
familiar with the practical work, as there is great difference between what they have learnt during
their BBA and how the job is practically done.

Another important aspect of the internship program is that internee is placed in most of the
departments of the organization through job rotation. It provides a glance of each department, as
the period is too short for learning in detail.
The report is a reflection on my experience when I was internee in ABL, Jehangira. ABL has
maintained a steady growth over the sixty years span of its operations. After its nationalization in
1974, it was denationalized in 1991 and the employees became the owners of ABL, through the
unique concept of ESOP (Employees Stock Ownership Scheme).
1.1 OBJECTIVES/ PURPOSE OF THE STUDY
The main essence of the study is to get the overall information and practicing within the
organization to get some knows how about the practical work.
 A partial fulfillment as a requirement for the completion of BBA (Hons) degree.
 To objectively observe the operations of Allied Bank of Ltd in general and the operations
of ABL, Jehangira in specific.
 To apply the learned knowledge in practical life.
 To aware to marketing strategies used in banks.
 To make recommendations or implementation plans for the improvement of the
operations of ABL, Jehangira in the light of our professional studies.
 To gather relevant information then interpret and analyze it in a useful manner.
 To define and describe various functions of the bank.
 To highlight the outline facilities and products offered by ABL to its customers.
 To analyze the bank through different techniques i.e. Horizontal, Vertical, Trend and
SWOT analysis.
1.4 IMPORTANCE OF STUDY
Banks play a central and very important role in the economic life of a country, that’s why
they are considered as the lifeblood of modern economy. Today no one can deny the

importance of banking in the economy. They facilitate and expedite trade and commerce
and provide a variety of services that one can’t imagine without banks. Banks offer a
wide number of services to make the day to day transactions easier.
I have chosen the Allied Bank Limited for my internship because it has a large network
of domestic and foreign branches. Besides this, ABL plays an important role in the
economic development of Pakistan
1.5 NATURE OF THE STUDY
The study is critical in nature. It was conducted to investigate critically into the
operations of Allied Bank Ltd and it also explains that how ABL provides facility of
online banking to its customers. The annual reports or the consolidation data of the Bank
has not been focused in specific because it does not reflect on the operational
performance of branches. However, they have been referred to as when and where
required.
1.6 SCOPE OF THE STUDY
 It enlightens the consumer banking functions at the ABL Jehangira branch.
 It will help the present and prospective students of the department in making assignments
and writing reports on the ABL.
 It can also provide help to ABL’s management in identifying their Strengths,
Weaknesses, Opportunities and Threats.
 It can also provide assistance to students seeking financial data for analysis.
 It will help to study the consumer buying behavior.
 The marketing approaches will help to improve the bank relations with the customers.
1.7 METHODOLOGY OF THE REPORT
The methodology for the collection of information and data was based on:

1.7.1 COLLECTION OF DATA:
Sources of Primary data:
 Personal Observation.
 Interviews of Bank Personnel.
 Interactions with the customers
Sources of Secondary data:
 Annual Reports
 Previous internship Reports.
 Brochures.
 Books.
 Web sites.
1.7.2 Research Approaches
Keeping in view my limitations during and the nature of the study, two research approaches were
adopted. These research approaches are:
Sampling Unit
 Manager of ABL Jehangira branch.
 Staff of ABL Jehangira branch.
 Customers of ABL Jehangira.
 Personnel from Regional operations department.
 ATM coordinators
Sample Size
 All the customers coming into the Bank.

 Branch managers.
 Staff members.
 Personnel from operation department.
 ATM coordinator of different branches
1.7.3 Sampling Procedures
The sampling procedure used was non-probability judgmental and convenience procedure.
1.7.3.1 Contact Method
Personal contact method was used as a contact method, which included:
 Interviews with managers and personnel from operations department.
 Interviews with staff members.
 Interviews with staff related to ATM
1.8 LIMITATIONS
The Study was subject to the following limitations, the absence of which could have made this
report more accurate, systematic and factual:
 Lake of published Marketing/Financial data.
 Lack of ATM’s back hand information with staff.
 Access to data.
 The non cooperative behavior of staff members.

1.8 SCHEME OF THE REPORT
The report has been divided into five chapters. A brief introduction of these chapters is given
below:
Chapter 1 This chapter contains a brief introduction of the report.
Chapter 2 this chapter is about the brief history of ABL from its establishment till now.
Chapter 3 This Chapter is about Research methodology used.
Chapter 4 This chapter is about analysis of ABL.eg. SWOT, PEST, Critical
Chapter 5 This chapter is about findings and recommendations.

CHAPTER-2
Literature Review

OVERVIEW OF ALLIED BANK
2.1 DEFINATION OF BANKING
There are various views about the world “bank”. One view is that it is derived from an Italian
word “banquet” which means a “bench”. The other point of view is that it has originated from
the German word which mean “banc” which means a “joint stock firm”. Like many other
subject and social sciences, no precise definition can be given for the study of banking; different
authors have definition and described this subject keeping in view the particular function of
banking, different in function performed by old institutions and modern banking, but the basic
idea is the same, banking has now become a multi services organization with wider scope and
area of influence.
 According to Gilbert:
“A bank is a dealer in capital or dealer in money. He is an
intermediary party between the borrowers and lenders.”
 According to Samuelson:
“Commercial banks provide certain services for customers and in
return receive payments from them.”
 According to Holder:
“The modern banker is primarily a dealer in credit.”
 According to Crowther:
“Bank is a dealer of debt, his own and of other people.”

In the view of the above definitions, in simple words a bank can be defined as an
institution dealing in money, accepting deposits and advancing loans.
2.2 EVALUATION OF BANKS
The present form of banking business is a result of continues improvement in
activities of different persons and societies during different periods of times. As regards
the growth of modern commercial bank, it can be traced to as early as 600 BC.
G.CROETHER in his famous book, “AN OUTLINE OF MONEY”, has traced the
history of modern English commercial banking. According to him, the present day banker
has three ancestors.
2.2.1 The Merchants
The earlier stage in the growth of banking can be traced to the working of merchants.
These merchants were traders in commodities. The trading activities were carried on by
them from one place to another. It was risky for the traders to carry metallic money with
them self for payment. The traders with the high reputation begin to issue receipts which
were accepts as titles of money. These receipts or letters of the transfer also called
“Hundi” in indo Pak sub continued were the 1st mode of payments. The merchant
banking thus forms the earliest stage in the evaluation of modern banking.
2.2.2 The Goldsmiths
The second stage in the growth of banking is normally traced to earlier goldsmiths. These
goldsmiths are also called “seths” in India seeds to received gold and silver for safe
custody 2. The goldsmiths began receipt for the metallic money kept with them. These
receipts with the passage of time became payable to the bearer on demand. In this way
the goldsmith’s notes became the medium of exchange and a mean of payment. The
goldsmith thus can rightly be termed as the fore-runners of the modern banks note.

2.2.3 The Money Lenders
The third stage of in the development of banking arose when the goldsmiths become the
money lenders. By experience the goldsmith came to know that they could keep a small
portion of the total deposit for meeting the demand of customers for cash and the rest
they could easily lend. They allowed the depositor to drew over and above the money
actually standing to their credit.
Like any other institution, as the result of different activities of merchants, goldsmith and
money lenders. They are considered to be the real founder and ancestors of modem
banking business. In the fact, all the basic or primary function of present banks, like
accepting of deposits, advancing of loan and money creation are similar with that of
merchants, goldsmith and money lenders. Now a day, the commercial banks are now
multi-service organizations and play a very important role in the financial markets and
economic development of the country.
2.3 EARLY GROWTH AND DEVELOPMENT OF BANKING
Important of money as the medium of exchange and necessity of controlling was realized
since the human society begin “Babylonian” were the firth development of the banking
system as early as 2000 BC Banking activities of the same nature was started in the third
century BC. In the Roman Empire and continued through 3rd century AD But with the fall
of this kingdom, these institution were totally finished from that part of the Europe.
Banking activities in either from remained in China, Egypt and subcontinent.
During the middle of the 12th century, banking spread in different European countries
particularly in Italy, “Bank of Venice” is probably the first public banking institution
founded in 1157. Similarly Bank of Barcelona funded in the 1407. “Bank of England”

was founded in England in 1694. All these were public bank and their principle function
were dealing with foreign exchange.
Development of the modern banking, especially in England was started by Jewish
merchants who migrated from Lombard in Italy in the 14th century, but the goldsmiths are
considered the real ancestors of present day banking system. During the second half of
the 18th century various relating to banking came into beginning and banks spread in all
important countries of the world. During the first half of the 21st century banking
underwent great changes and great verity of function came under the range of banking
business.
In the subcontinent indo Pak, foundations of modern banking were laid in 18th century in
Calcutta when with the help of European banker’s first bank “Bank of India” was
established. After that government of India founded “Bank of Bengal” also new opening
at Madras and Bombay. Imperial “Bank of India” was founded in 1921, where as
“Reserve Bank of India” was established in 1935 with the power as the central bank.
2.4 IMPORTANCE OF BANKING
Banks play very important role in the economic life of a nation. The growth of the
economy is dependent upon the soundness of its banking system. Although banks do not
create new wealth but borrow, exchange and consume. These make generation of wealth.
In this way they become most effective partners in the development of that country.
To encourage the habit of saving and to mobilize these savings is its basic purpose.
Banks deposit surplus from the public and then advances these surpluses in the form of
loans to the industrialists, agriculturists, businessmen and unemployed people under
different schemes so that they set up their own business. Thus banks help in capital
formation.

If there are no banks, then there would be concentration of wealth in few hands and great
portion of wealth of a country would be idle. We can take bank just like a heart in the
economic structure and capital provided by it is like blood in it. As long as the blood is
in circulation, the organs will remain sound and healthy. If the blood is not provided to
any organ then the organ would become useless. So if the finance is not provided to
agriculture sector or to industrial sector, it will be destroyed.
Loan facility provided by bank works as an incentive to the producer to increase
production. Banks provide transfer of payment facility, which is cheaper, quicker and
safe.
2.5 DEVELOPMENT OF BANKING IN PAKISTAN
At the time of partition of indo-Pak subcontinent in 1947 Pakistan inherited a poor and
weak system of banking. It was due to the fact, that most of the important sectors of the
economy including banking were controlled by Hindus, at the time of partition these non-
Muslim banker transferred the bank resource to India. At the time of independence, there
were only two Pakistani banks that were Habib Bank Limited and Australasia Bank. At
this stage, Pakistan had 631 branches of scheduled bank and 411 offices of non-scheduled
banks.
It was not possible to set up the central bank immediately after independence, hence it
was agreed that Reserve Bank of India will act as central bank of Pakistan till 30th
September 1948. But it fails to safeguard the interest of Pakistan’s banking affairs. It was
now felt that establishment of the country’s won central bank is the only situation for the
removal of financial difficulties and for sound development of banking system in the
country. As a result of this, STATE BANK OF PAKSITAN, being the central bank of
the country was established in 1st July 1948, inaugurated by the Quaid-e-Azam
Muhammad Ali Jinnah, the first Governor general of Pakistan, with the head office at
Karachi.

State Bank of Pakistan, in addition to its normal duties as Central Bank, played a very
important role in the development, controlling and modernizing the bank system of the
country. With this development, new commercial banks with country wide branches were
established. Sooner they extended their branches to foreign countries, moreover,
specialized financial institutions like IDBP, ADBP, PICIC, NDFC, HBFC were also
created to help and finance the particular sectors of the economy like industry, agriculture
and housing.
After 1990, the banks are in the process of privatization like other units of economy as a
matter of policy of the ruling Government. This step was taken in view of poor
performance and other weakness in the banking sectors. A privatization commission was
set up in January 1991, who privatized allied bank ltd. In addition to this policy,
government has allowed the establishment of new private bank in august, 1991 as a result
of many new banks like INDUS BANK, MEHRAN BANK and SONERI BANK are
established having their branches almost in all important cities of the country with the
largest banking facilities and efficient administration.
2.6 Commercial Activity of Pakistani Banks
Up till 1973, 14 Pakistani commercial banks have been operating and functioning
all over the country. These joint stock banking companies functioning under
banking companies let. In 1974, most of the commercial banks were merged and
reorganized into five banks.
1- Habib bank limited.
2- United bank limited.
3- National bank of Pakistan
4- Muslim commercial bank limited

5- Allied Bank limited.
Commercial banks constitute the most important sources of institutional credit in
the economy of Pakistan. It has been the largest deposit institution and the main
source of short-term credit and financial activities of the bank have been divided
into two categories as:
1- Schedule banks
2 - Non schedule banks
All schedule banks are the members of the clearinghouse arranged and supervised
by the state bank of Pakistan. The statutory cash resave requirements of schedule
banks are now maintained at 5% of their total demand and twice liability in
Pakistan.
The commercial banks are required to submit weekly and monthly return about
their financial position of Atatwe bank. The state bank in their credit and
investment policies also guides the commercial banks. The commercial banks can
maintain their liquidity of cash by rediscounting their bills of exchange from the
State Bank.
The non-schedule banks are not entitled to receive accommodation from the state
bank. As the commercial banking system in Pakistan was based on three kinds of
banks as
1- Pakistani commercial banks
2- Foreign banks

3- Indian banks
Now the base has been diverted to the three new bases as:
1- Private banking
2- Govt own banks
2- Foreign banking
By now the commercial banks are operating with the concept of providing short
term finance to trade, commerce and industry to enable these sectors to expand
their productive activities.
2.6 History of ABL
Allied Bank is the first Muslim Bank to have been established on the territory that
became Pakistan.
Established in Dec, 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 ABL paid up capital and reserves amounted to
Rs 10.5 billion deposits exceeds Rs 143 billion and total assets equal to Rs 170 billion the
Allied Bank story is one of dedication commitment to professionalism, adoption to
changing environmental challenges resulting into all round growth and stability, envied
and aspired by many.
2.7.1 THE PRE INDEPENENCE HISTORY (1942 TO 1947)

The early 1940’s the Muslim community was beginning to realize the need for active
participation in the field of trade and industry. The Hindus has since the late 1880’s
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 Pakistan in
Dec, 1942. By the name of Australasia Bank Limited.
The initial equity of the bank amounted to Rs 0.12 million, which was raised to Rs 0.5
million by the end of first full year of operation and by the end 30th June 1947 capital
increase to Rs 0.673 million and deposits raised to Rs 7.728 million.
2.7.2 AUSTRALASIA BANK (1947 TO 1974)
Australasia bank was the only fully functional Muslim bank of 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 movements’ .At the time of independence all the branches in India were
closed down .New branches were opened in Karachi, Rawalpindi, Peshawar, Sialkot,
Sargodha, Thang and Kasur. Later on its network spread to Multan and Quetta. The bank
financed trade and cloth and food grains and thus played an important role in maintaining
consumers supplies during riot affected early months of 1948.
Despite the difficult conditions prevailing and the substantial set back in the bank
business in India, Australia bank made a profit of Rs 50,000 during 1947 to 1948.

By the end of 1970 it had 101 branches in the separation of cast Pakistan. The
bank did well in despite losing lot of it assets by the end of 1973 the bank had 186
branches in West Pakistan.
2.7.3 Allied Bank (1974 to 1991)
In 1974 the board of directors of Australasia Bank was dissolved and the bank
was renamed as “Allied Bank” the first year was highly successful one, profit exceeded
the Rs 10 million marks, deposits rose by over 50 percent and approached Rs 1460
million. Investment rose by 72% and advance exceeded Rs 1080 million for the first time
in bank history. 116 new branches were opened in the sport procurement, agriculture
program of the government. Those seventeen years of the bank saw a rapid growth.
Branches increased from 353 in 1974 To 748 in 1991 deposits rose from 1.46 billion and
advances and investments this period. It also opened three during in UK.
2.7.4 ESOP Revolution
(Employee stock ownership plan)
Under the philosophy of ESOP ownership of an enterprise is transferred to its
employees who are in an advantageous position in running the enterprise. The added
advantage of ESOP that it strengthens the workers stake in the free enterprise system, in
job securities, better profitability & unique corporate culture symbolizing family feelings
& professional fraternity.
September 10,1991 is the historical date as on this date the bank became the
country’s 1st bank to be reconstituted as an institution jointly owned by its employees
through the unique concept of Employees Stock Ownership plan [ESOP] developed by
the Allied Management Group headed by Mr. Khalid Latif enabled the bank staff to react
creatively to the privatization challenge. More than 7500 staff members acquired a share

in the bank. The articulation of the ESOP is a landmark in the financial history of
Pakistan-indeed of the entire world .It is a practical step ensuring an increase in workers
participation and in productivity a means for enhancing an equitable redistribution of
financial assets & an effective strategy for achieving the cherished goal of national self-
reliance.
 BASIC PRINCIPLES of ESOP
The basic principle and features underlined by Mr. Khalid Latif when he
launched this scheme countrywide and positive response of the government, press and
public at large.
i. ESOP means employee stock ownership plan.
ii. ESOP combines knowledge, experience and efforts of the people.
iii. ESOP gives employee job security, better prospectus for the career, family feeling and
sense of loyalty and share in the progress and prosperity of an entity.
iv. 7500 people spread over more than 750 branches raised the slogan of ESOP.
v. ESOP is customer oriented.
vi. ESOP is motivational tool, which disciplines the people, prevents wastage of resources
and ensures better and efficient customers service standards.
vii. ESOP envisages management control and ownership of the enterprise for the employee,
by the employees and of the employees.
viii. ESOP provides protection to the family retirement. It is an umbrella, which
automatically opens as soon as there is a rain. ESOP shows loyalty to the organization.
ix. ESOP is a team work.
2.7.5 Allied Bank (1991 to 2004)
As a result of privatization in September 1991. ABL 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 ABL Modaraba (FABM) was floated.

After privatization, ABL registered an unprecedented growth to become one of
the premier financial institutions of Pakistan Allied Banks capital and reserves were Rs
1.525 (Billion) and assets amounted to Rs 87.53 (Billion) and deposits were Rs 76.038
(Billion) Allied Bank enjoyed an enviable position in the financial sector of Pakistan and
was recognized as one of the best amongst the major banks of the country. In August,
2004 as a result of capital recons traction the bank’s ownership was transfers to a
consortium comprising Ibrahim leasing limited and Ibrahim Group.
Today the Bank stands on a solid foundation of order 63 years of its existence
having a strong equity, assets and deposits base offering universal banking services with
higher focus on retail banking. The bank has the largest network of online branches in
Pakistan and offer, various technology based products, and services to its diversified
clientele through its network of more than 700 branches.
2.7.6 ABL (2005)
In May 2005 Ibrahim leasing limited was amalgamated by transfer to and vested
in with and into Allied Bank Limited. 111 share holders were issued ABL shares in lien
of 111 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 with respect to the following date.
Islamabad Stock Exchange 8th August 2005
Lahore Stock Exchange 10th August 2005
Karachi Stock Exchange 17th August 2005
So all the share holders of ABL can trade in the shares of the Bank at their free will.

2.7.7 ABL (2007)
Mohammad Aftab Manzoor has taken charge as CEO and President of the Bank on
August 13th 2007. He is an ex-president of MCB Bank Ltd.
2.7.8 Today
Today, with its existence of over 60 years, the Bank has built itself a foundation with a
strong equity, assets and deposit base. It offers universal banking services, while placing major
emphasis on retail banking. The Bank also has the largest network of over 700 online branches in
Pakistan and offers various technology-based products and services to its diverse clientele.
2.8 VISION
To become a dynamic and efficient bank providing integrated solutions and the
first choice of bank for all customers.
2.9 MISSION
 To provide value-added services to our customers
 To provide high-tech innovative solutions to meet customer requirements
 To create sustainable value through growth, efficiency and diversity for all stakeholders
 To provide a challenging work environment, and reward dedicated team members
 To play a proactive role in contributing towards the society
2.10 OBJECTIVES OF ABL

All scheduled banks are involved in any type of business activities to accomplish
certain types of objectives. So the main objectives of ABL include.
 To provide much needed banking facilities to traders and industrial and economics
development of the country.
 To improve customer services. i-e to provide efficient services.
 To create employment opportunity in the country to guide and assist overseas workers of
the country to invest their savings in profitable schemes.
 To seek and participate in the capital market of Pakistan by way of subscription their
pooled resources in the leading stock exchanges of the country.
2.11 VALUES
 Integrity
 Excellence in Service
 High Performance
 Innovation and Growth
ABL has emerged as one of the foremost-privatized financial institutions in Pakistan
endeavoring to gear up its operations to meet the demands of the future.
2.10 NETWORK OF BRANCHES
The ABL setup consist of total 735 well furnished branches and its administration is playing to
extend its network within the country, which will help and facilitate ordinary people, investors
industrialist in case of traveling from one city to another.
In December 1983, there were 1623 branches whereas in 1974 it had only 1238 branches and in
December 1999 there were 1417 branches.
Central Group

Regions Number of Branches
Faisalabad 35
Sargodha 35
Lahore 34
Gujranwala 34
Lahore, City 33
Multan 31
Sahiwal 25
Sialkot 23
Bahawalpur 22
Gujrat 21
Jhang 18
Rahim Yar Khan 12
TOTAL 323
NORTH GROUP
REGIONS NUMBER OF BRANCHES
Rawalpindi 40

Peshawar 40
MirPur 33
Mardan 32
Islamabad 30
Abbottabad 20
Muzaffarabad 18
Kohat 17
Total 230
South Group
REGIONS NUMBER OF BRANCHES
Karachi, Sadar 32
Karachi, Nazimabad 32
Karachi, City 31
Quetta 31
Hayderabad 24
Sukkur 21

Nawabshah 17
Total 188
2.11 OVERSEAS BRANCHES
ABL has been very active in increasing its overseas branches network. Banks in
Lebanon are mainly playing a traditional role of society's financial go-between. They are
playing this role in an open and liberal financial market which promotes competition, and
since peace was reestablished in 1991, the concerned official authorities, the Association
of banks and banks have made considerable efforts to improve fundamentally the
competitive structure and means of operations of the Lebanese banking industry. With 54
active commercial banks and 9 specialized medium and long term credit banks, the
Lebanese Banking sector currently employs about 16,500 individuals in 844 branches
conveniently spread throughout the country, and manages the equivalent of USD 75
billion in assets nation-wide.
Foreign representation is important and considerable and it is either in the form of
a foreign bank maintaining branches in Lebanon (10 banks) or equity stakes in several
local banks. 16 foreign banks have also a representation office in Lebanon.
2.12 CORPORATE INFORMATION OF ABL
BOARD OF DIRECTORS (ABL)
 Mr. Mohammad Naeem Mukhtar (Chairman)
 Mr. Sheikh Mukhtar Ahmad
 Mr. Mohmmad Waseem Mukhtar
 Mr. Abdul Aziz Khan
 Mr. Sheikh Salees Ahmad
 Mr. Farrakh Qayum

 Mr. Nazrad Bashir
 Mr. Khalid A Sherwani (President and Chief Executive Officer)
Audit Committee.
Mr.Farrakh Qayyum Chairman
Mr. Mohammad Naeem Mukhtar. Member
Mr. Abdul Aziz Khan. Member
Company Secretary
Mr. Aijaz.
Auditors
Mr.Yousuf Adil Saleem & Co
Chartered Accountants
Ford Rhodes Sidat Hyder & Co
Chartered Accountants
Legal Adviser
Haider Mota and Company
Advocates and Solicitors
Shares Registrar
Technology trade (Pvt)Ltd

Central Office
Bath Island, Khayaban-e-Iqbal, Main Clifton Road
Karachi-75600
Phone: 111-110-110
Head Office/Registered Office
8-Kashmir/Egerton Road Lahore
Phone:042- 6360073
Website
www.abl.com.pk

President
Senior Vice President
Vice President
Executive Vice President
Senior Executive Vice
President
[rosodmemtPresident
Regional General Manager
Managerxecutive Vice
President
Branch Manager
2.14 MANAGEMENT HIERARCHY
The management hierarchy represents the different positions and designations in
the hierarchy of the ABL. However, this is not the reporting hierarchy but merely
represents the positions and grades on the basis of seniority and grades.

2.15 FUNCTIONAL HIERARCHY
The functional hierarchy represents the reporting order in the hierarchy of ABL.
The hierarchy has president and directors at top management level and officers Grade I,
II and Grade III at the lower level management of ABL. The middle level management
consists of regional general Manager and Regional Controller of Operations. These
positions are not fixed. Any person in the hierarchy above the branch manager can be
appointed as RGM and controller operations.
President and CEO
Board of Director
Head of Departments
Regional General Manager Controllers of Operation
Branch Manager
Office G-I, II and other lower Staff

2.16 A BRIEF INTRODUCTION TO ABL JEHANGIRA:
Allied Bank LTD. Jehangira Branch was established in 7, November 1995. Its
location is very ideal in the center of city. Mr. Hammad Khattak the manager, the branch
is working under the management of him. He has a lot of knowledge and experience in
banking field. Branch is fulfilling the needs of that area of the city. There is online
banking system and latest technologies are being used in banking system. Banks provides
all services to its customers. All the staff is hard working and efficient. Profit of the
branch is growing with time.
2.17 DEPATMENTS OF THE BRANCH
ABL Jehangira branch has set their department in the following manner.
Account Department:
 Prepare Financial statements of branch
 Administration of branch
 Maintain book’s of accounts
 Branch budget
Deposits Department:
 Opening and maintenance of accounts
 Rupee Travelers Cheques
Customer Service Department:
 Providing services regarding banking matters
 Customer Complaints & their Handling

Remittances Department:
 Inward Remittance
 Outward Remittance
 Foreign Remittance
 Demand Draft
 Pay Order
 Mail Transfer
 Telegraphic Transfer
Cash Department:
 Receipts/Payments of cash
 Cash Management
 ATM Functions
 Sorting of Cash
Bills and Clearing Department:
 Inward/Outward Clearing
 Issuance of Cheque Books and ATM cards
 Outward bills for collection (OBC)
 In ward bill collection (IBC)

Organizational Structure of ABL, Jehangira
BRANCH MANAGER
CASH DEPARTMENT ACCOUNT
DEPARTMENT
REMITTANCE
DEPARTMENT
CREDIT DEPARTMENT
MICRO FINANCE CREDIT

CHAPTER-3
Research MeThodology

METHODOLOGY OF RESEARCH
The report is based on two months internship program in abl. The methodology reported for
collection of data is primary as well as secondary data. The biggest source of information is
personal observation while working with staff and having discussion with them. Formally
arranged interviews and discussions also helped me in this regards.
3.1 What is research?
Research can be defined as the search for knowledge, or as any systematic investigation, with
an open mind, to establish novel facts, solve new or existing problems, prove new ideas, or
develop new theories. The primary purposes of basic research (as opposed to applied research)
are documentation, discovery, interpretation, or the research and development of methods and
systems for the advancement of human knowledge. Approaches to research depend on
epistemologies, which vary considerably both within and between humanities and sciences.
3.2 Data Sources
Both primary and secondary have been used in the compilation of this report. The
methodology used is as under:
During the compilation of this report, it is relied mainly on the primary data. The tools used for
the collection of primary data are interviews and observation. To get primary data and also
performed some practical work. The secondary data was mainly used for as a background
material and for purpose of references. The major sources of secondary data were the annual
report 2007; other printed material of the Bank and internet played a vital role as a source of
secondary data.

3.3 Research Approaches
Keeping in view limitations during and the nature of the study, two research approaches
were adopted. These research approaches are:
 Survey.
 Observation as.
 Participant observation and
 Non-participant observation.
3.4. Sampling Plan
Details of the sampling plan used during this report are given below.
3.5. Sampling Unit
The sampling unit constitutes of the following.
 Manager of ABL Jehangira branch.
 Staff of ABL Jehangira branch.
 Customers.
 Personnel from Regional operations department.
 ATM coordinators
3.6. Sample Size
The sampling size constituted of
 All the customers coming into the Bank.
 Bank Managers.
 Staff members.
 Personnel from operation department.

 ATM coordinator of different branches
3.7. Sampling Procedures
The sampling procedure used was non-probability judgmental and convenience
procedure.
3.8. Contact Method
Personal contact method was used as a contact method, which included:
 Interviews with staff members.
 Interviews with staff related to ATM
 Observations
3.9 Interviews:
An interview is a conversation between two people (the interviewer and the interviewee) where
questions are asked by the interviewer to obtain information from the interviewee.
 Interviews with manager and other staff members
 Interviews with the customers of the branch
 Discussion with ATM staff
Persons that were interviewed during the study:
Branch Manager:
Mr. Hammad Khattak

Operation Manger:
Mr. Fazlullah
Cashier:
Mr. Hamidullah
Remittance:
Mr. Faiz Aftab
Clearance Officer:
Mr. Ibrahim Khan
ATM co-ordinater:
Mr. Ahmad Amin
And Personal From Regional Office
3.10 Observation:
Observation is either an activity of a living being, such as a human, consisting of receiving
knowledge of the outside world through the senses, or the recording of data using scientific
instruments. The term may also refer to any data collected during this activity. An observation
can also be the way you look at things or when you look at something.
Observation was done during the internship period in which we collect lot of information about
the bank and the branch.

3.11 LIMITATIONS
The Study was subject to the following limitations, the absence of which could have
made this report more accurate, systematic and factual:
 Lake of published financial data.
 Lack of ATM’s back hand information with staff.
 Access to data.
 The non cooperative behavior of manager and staff members.
 Not sharing of confidential data
 Limited time
 Limited resources
 Limited experience

CHAPTER-4
Overview and ANALYSIS of Banking Services

4.1 SERVICES OF ALLIED BANK LTD.
4.1.1 All-Time Banking
Allied Bank has introduced the Allied Cash last year also referred to as ATM card. The customer
will now have the convenience of withdrawing cash from any of ABL’s ATMs (Auto Taller
Machine) conveniently located in major cities at any time of the day or night even on closed
days/holidays. Other services include customer being able to inquire about the balance of his/her
account or printing an abbreviated (mini) statement showing the most recent eight transactions
up to the previous working day.
In order to obtain Allied Cash+ Card, the customers simply have to fill out prescribed
Application form available at selected Allied Bank Branches in Karachi and Lahore. The dully-
filled form should be handed over the Manager of the Branch where the customer is maintaining
his account. Non-account holders would first have to open an account with Allied Bank to have
access to this facility. The Customer can feel absolutely safe his Allied Cash + Card because it
can only be used with the Personal identification Number (PIN), which is given to him by the
bank. Graphical representations have been employed, where appropriate, for ease of
understanding.
4.1.2 Allied Umrah Aasan
This unique scheme facilities those persons, who cannot afford to incur the lump sum expenses
for Umrah. It allows the intending pilgrims (Aazmeen) to make payment of Umrah charges in
monthly installments. Its salient features are:
 It is free of interest and markup.
 Using this scheme family, relatives and household servants can be sent for Umrah.
 Around 2500 Aazmeen are to be sent for Umrah every month.
 Lucky winners of the draw are duly informed by their respective branches.

 Total package for Aazmeen from Karachi is being Rs. 55,000. Aazmeen from Lahore and
Islamabad will have to pay an extra Rs. 10,000/- for Airline fare.
 Umrah packages are of 10 days duration. The charges include Airline return ticket.
 Fee Visa, family accommodation and traveling within Saudi Arabia (Jeddah to Makka,
Makka to Madina and Madina to Jeddah).
 Application for whole Family/Group can be filed through a single Application Form. All
applicants of a family/group are sent for Umrah even if only one member of that
family/group is declared successful in the draw.
 Due to any reason if Umrah Applicant needs to withdraw his/her application, he/she will
given a refund of all money deposited through installments till that time.
 At the time of submitting the application Aazmeen has to deposit Rs. 2,000 per person as
first installment. Rest of the money is to be deposited through monthly installments of Rs.
2,000/- person on every 5th day of the month.
 If an Applicant wins in the draw he/she is required to pay the balance amount through
monthly installments on returning from Umrah.
 Aazmeen have to submit a copy of their NIC Cards and Passports with the application.
 Applicants have to deposit the monthly installment using deposit slips still 5th of every
month. Defaulters will not be included in the draw.
4.1.3. Master Cards
The customer can now become the holder of a true Credit Card here in Pakistan. Allied Bank
under license from Master Card International, U.S.A. issues its Master Card to anyone meeting
the eligibility criteria. With the Allied Bank Master Card the customer is assured of a service
meeting the highest international standards maintained by Master Card.
The Allied Bank Master Card helps the customer pay without the complications of cash or
checks. It doesn’t cost the customer anything if he pays in full within the due date, but if he

decides to spread the payments over several months a service charge @ 2.50% per month is
charged. Allied Bank – Master Card is safer than cash and simpler than checks.
The customer has been an account holder with the Allied Bank to apply for the Allied Bank –
Master Card that is available to the customer for an initial fee of Rs. 2,000/- (Rs. 500/-
membership fee + Rs. 1,500/- annual fee). Once the customer obtains his card, he simply
presents it at Shops, Supermarkets, Hotels, Pharmacies, Nursing Homes, restaurants, Petrol
Pumps and hundreds of other establishments which display the familiar Master Card sign
throughout Pakistan and abroad.
Once purchases are made, the customer signs a voucher and that’s it he is not required to take
extra troubles. Every month the customer receives a statement showing details of transactions,
outstanding and the minimum amount due. The statements also give the last date for payment so
the customer can avoid paying service charges.
In order to avoid disruption in use of the card, it is essential that a least minimum payable
amount of the bill be paid regularly. In case the required payment is not received the operation of
the Master Card is automatically, suspended by the system. In such case, the card is activated
after receipt of overdue payment only.
4.1.4 Allied Tahafuz Deposit Scheme
Brings the customer unparalleled life insurance covers along with attractive monthly profit.
Minimum Deposit amount – Rs. 50,000/- or multiples thereof. Insurance cover up to - Rs.
5,000,000/. As Competitive rate profit. The features of this scheme are:
 Prospective client who will maintain a return free deposit for at least 3 months shall
eligible to avail interest free/mark-up free finance.
 Payment of profit on monthly basis, automatic renewal on face value.
 Life insurance up to 5 times of the customer’s deposit amount with no extra cost.

 Premium shall be paid by the bank.
 Full payment of claim in case of – Death – Permanent total Disability.
 Eligibility Age – 18 to 64 years.
 No medical examination for:
- Deposit up to Rs. 500,000/- and age up to 60.
4.1.5 Allied Karzas Scheme (No Interest/Markup)
Allied Bank moves a step forwards by introducing interest free banking through Allied Karzas
Scheme. The aim of this scheme is to provide an opportunity to the depositors to take advantage
of a real Riba Free economic environment and avail:
 Prospective client will maintain a return free deposit for at least 3 months shall be
eligible to avail interest free/mark-up free finance.
 Deposit amount Rs. 100,000/- and multiples thereof.
 Minimum deposit period, 3 months with automatic rollover facility.
 Premature encashment allowed, without any penalty/charge.
 Minimum deposit period for eligibility of finance, 3 months.
 Maximum period of finance, 6 months.
 Maximum period to avail finance, 12 months from the maturity of deposit.
 Every month (30 days) completed by the deposit shall be taken into account for
calculation of entitlement of finance.
 Finance proposal processing fee Rs. 100/- (non-refundable) plus documentation cost
on actual basis.
 In case of default/delay in repayment @ 0.055% per day (20.075% p.a._ to be placed
in charity A/C.

 Formula for calculation of entitlement of finance.
- Same amount of finance for half the period of deposit or
- Same period of finance for half the amount of deposit.
4.2 OTHER SERVICES
 Home Remittances
The Bank having a network of 755 branches all over Pakistan, undertakes to provide safe and
instant payment of remittance from expatriates, routed through designated foreign exchange
companies and correspondent banks with whom special arrangements have been made in this
regard. Through the Allied Express Services, ABL ensures that beneficiaries’ Accounts in ABL
branches are credited with in 48 hours of receiving home remittance information from overseas.
 Hajj Services
The Bank serves the intending pilgrims by helping them in performing this religious obligation.
The Hajj forms and other related services are provided by the bank. However, the terms and
conditions for accepting the Hajj forms from intending pilgrims are in accordance with the Hajj
Policy announced by the government, each year. Hajj applications are available with all branches
during Hajj season, immediately after the Hajj policy is announced by the Government of
Pakistan.
 Utility Bills
All branches of the Bank collect utility bills of electricity, gas and telephones. For convenience
of the customers, Utility Bills are collected by the branches during banking hours and also in the
evening banking on all working days. Bills can be paid through cash or checks. Consumers may
drop bills with crossed checks into a drop box available at the branches under “Checks Drop-in”
system.

 Agricultural Finances
Bank under Agricultural Financing Schemes envisaged by he State Bank of Pakistan extend
short, medium and long term, farm and non-farm credits. The farm credits are extended for
production (inputs) and 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).
 Lockers
Allied Bank Lockers are available in three different sizes Small, Medium and Large on a yearly
fee. Locker holders need not have an account in the Bank.
 Import Export Business/Trade Finance
ABL Provides highly efficient trade finance services for import/export business for our
clients/customers through large number of authorized branches where trained and motivated staff
is available to handle the business on behalf of customer.
 Allied Bank Rupee Travelers Checks
Carrying cash to strange alien location can prove to be risky as a single incident can render one
without monetary backup of any sort. Hence banks introduce traveler’s checks in order to protect
against any contingency.
 Seasonal Finance
 Running Finance is a short-term loan allowed by the bank for a period of one year. The
running finance account can be operated and daily sale proceeds can be deposited into

the account. The markup is recovered on the products of daily outstanding balance. The
running finance is suitable for meeting day-to-day financial needs of the business.
 Cash Finance is allowed against pledge of goods. The delivery of goods is made against
payment.
 Demand Finance is disbursed in lump sum or in accordance with the agreed
disbursements schedule and it is repayable as per the agreed installments, which could be
monthly, quarterly, biannual or annual.
4.3 List of main Clients
There are three main client are categorized these are
 Individuals
 Joint
 Partnership
Individual
Individual clients are only one person accounts. This accounts are opened are called the
individuals accounts.
Joint
In case of joint accounts there are two or more accounts are used. Application mentions that how
much person will operate the accounts.
Partnership Accounts
For partnership accounts is use as a company or agreement accounts of two are more people
groups. Partnership accounts are along with the application form signature card.
 Registration Certificate

 Agreement among the partnership
 Commencement of business.
4.4 COMPETITORS’ ANALYSIS AND COMPARISON:
Quality level, Service description & features, core competencies of competitors
Allied Bank is among the 5 GIANTS (Top ranked banks) of the country. It has direct
competition with the following banks:
o National Bank of Pakistan
o Habib Bank LTD.
o Muslim Commercial Bank LTD.
o United Bank LTD.
All these banks have almost equal revenue as of Allied Bank and they have almost same number
of branches operating in every area of the country. Moreover Allied Bank mainly focuses on
corporate clientele, while all these 4 banks are more focused towards consumer portfolio and
consumer market. Allied Bank does not use electronic media or other important modes for the
promotion of its services, whereas other banks use different means for efficient marketing of
their services.
Core Competencies:
All the above mentioned banks have almost equal revenue as of Allied Bank and they have
almost same number of branches operating in every area of the country. Moreover Allied Bank
mainly focuses on:
1. Corporate clientele, which helps in generating large amounts of revenue as corporate clients
have much more to invest. While all these 4 banks are more focused towards consumer portfolio
and consumer market.

2. Allied Bank does not use electronic media or other important modes for the promotion of its
services, whereas other banks use different means for efficient marketing of their services.
3. Allied bank has the largest online banking system.
Comparison:
Allied bank is the only bank in Pakistan which does not charge a person some extra money if
heshe withdraws money from another bank’s ATM. while all its competitors charge some
amount upon withdrawal from other ATMs rather than their own ATMs.
Allied Bank emphasizes on quality and hence there is an online ATM repair system which keeps
track on all the ATMs of Allied back resent all over Pakistan. As soon as a Problem is detected
in any of the machines, a team is sent on the spot to identify and fix the problem to ensure
quality service to the privileged customers.
4.5 Marketing and Sales
ABL Bank has its decentralized marketing setup, as each department has its own marketing plan
and strategies. It prepares different schemes for its customers time to time in order to enhance the
business of the bank. At branch level, the operations department follows marketing practices. At
each branch of bank officers are available to provide marketing activities of their products.
They make customer calls and personally visit the potential customer to convince them to invest
in ABL.
4.5.1 STRUCTURE OF THE MARKETING DEPARTMENT
Allied Bank gives the employer choice. The whole ABL family comprises of committed and
dedicated members with passion to serve in their respective functional areas. When I talk about
the structure of marketing department in ABL it is very clear that the Auto financing department,
agriculture department, Consumer finance department and the marketing departments in Allied

Bank is a commercial bank. The marketing career path is full of challenges and opportunities.
The Bank has absolutely open culture where members share and communicate freely the most
important asset of ABL is its people.
4.5.2 MARKETING OPERATIONS
Before discussing marketing operation of Allied Bank, I want to clarify Marketing and the
Marketing Department and their difference. Marketing might best be defined as
“All organized efforts, activities and expenditures designed to, first, acquire a customer and,
second, maintain a customer.”
The Marketing Department:
“Marketing department is a unit of organization, traditionally charged with carrying out specific
tasks that are deemed to be "marketing”
Marketing
Department
Customer Service
Department
Head of CS
Depatment
Jounior Officer
Agriculture
Department
Head of Agri.
Department
Grade 1 Officer
Jouior Officer
Auto Finance
Department
Head of Auto
Fnance
Deptment
Jounior Oficer
Consumer
Finance
Department
Head of
Consumer
Finance

Marketing involves a range of processes concerned with finding out what consumers want, and
then providing it for them. These are involves four key elements, which are referred to as the
4P's of marketing Mix. A useful starting point therefore is to carry out market research to find
out about customer requirements in relation to the 4Ps.
 Right Product
 Right Price
 Right Place
 Right Promotion
Marketing operations of ABL is to identify the needs and wants of the consumer and provide the
right product, right price, right place and right promotions.
Allied Bank is mainly focus on this points that how to aware the customer on their product and
service and how to convert their need into demand and aware the customer or target audience
about organization. For this purpose the ABL use different promotion scheme, such
advertisement banner through different communication media like internet and newspaper for
convey their message to target audience.
Marketing operation are performed by the employees working in these departments like auto
finance department, agriculture department, consumer financing department and customer
service department. The target of this department is to increase in the deposit of the bank as
compared to competitors. The employee is very talented and knows the value of customer e.g. in
agriculture department the head and junior officer provide detail about the agriculture products
and they do marketing in the shape of banners new ad and try to create the attraction of the
customer toward the organization.
The main function of marketing Departments are
 Give equity opportunities to all applicants.
 Recommend reward and promotion for the employees

 Select the most suitable person for the marketing function
 Requiting is one merit
4.5.3 FUNCTIONS OF MARKETING DEPARTMENT:
There are following function of marketing Department
 Focus on the Customer
 Manage a Budget.
 Give equity opportunities for all the applicants.
 Select the most suitable person for the marketing function.
 Recommend reward and promotion for the employees
 Create New Ideas.
 Communicate Internally.
 For the purpose of selection conduct interviews, tests
 Set the Strategy, Plan the Attack, and Execute.
 Monitor the Competition
 Own the Brand
 Find & Direct Outside Vendors.
4.6 SEGMENTATION STRATEGY
Allied Bank of Pakistan segment in market as geographical demographic the size of the market is
very wide as compares to other markets. So, in geographical segment of the ABL is dividing
their segment as religion and cities atmosphere. The most of the population of Pakistan is
Muslim so it offer both Islamic banking and commercial banking for religious group it offer
Islamic banking free of interest rate and for secular group it offer the commercial banking In
demographic segment it divide the market into age income education occupation and nationality.
And other is workings as a leader of the bank and performing the clearance department functions

ABL is offer different product for different segment to target customer in demographic segment.
it is divide the market into age wise for example student 18-30 and retired or pensioner 40-65
For student Allied Bank provide some special deposit account ABL has also segment their
market in occupation the target audience that are related to agriculture. Some details of ABL
segmentation are following:
o Geographic Segmentation:
Allied Bank has 735 online branches all over Pakistan. The Bank has divided its branches into
four regions:
o North Zone
o Central Zone 1
o Central Zone 2
o South Zone
Every branch is linked online with the other branch across the country.
o Demographic Segmentation:
1. Age:
Allied Bank targets all those customers above 18 years of age.
2. Gender:
Allied Bank provides its services to all of its customers regardless of their gender.
3. Social Class:

Allied Bank mainly targets corporate level. But it provides its banking services to
people of every class.
o Behavioral Segmentation
Knowing the behavior of its customers and giving them the best is vital for every
organization. So as Allied Bank deals with all kind of people either literate or illiterate.
So in this regard Allied Bank has given name to some of its schemes and accounts in
urdu. E.g.Behtar Munafa Account, Allied Bachat Scheme which by name gives the
concept to an illiterate customer that what kind of benefit lies in this particular product or
service?
4.7 TARGET CLIENTS
ABL main focus is to encourage the people to serve the people. The goal is to reach a subset of
the population who may be interested in your particular product. This focus group of people is
your target market. The target market of ABL is given below which is based on
Objective of the organization which it wants to achieve target market of commercial bank is
 Customer having deposit
 Customer who wants to purchase vehicle
 All agriculture related
 Customer desires different loan
 School college and business industries
 Financial invertors
 Consumer having interested to purchase on leasing
 Religious group interested in Islamic Banking
 Group of people needs to get banking services such as utility bills collector

In the term of targeting the market is used when that market is the target at which you aim of all
your marketing efforts. The markets you are trying to reach are people with common
characteristics that set them and apart as a group. There are two important factor to consider
when selecting a target market segment are the
 Attractiveness of the Products
 Resources and capabilities
4.8 BCG MATRIX
The BCG matrix or also called BCG model relates to marketing. The BCG model is a well-
known portfolio management tool used in product life cycle theory. BCG matrix is often
used to prioritize which products within company product mix get more funding and
attention.
The BCG model is based on classification of products (and implicitly also company business
units) into four categories based on combinations of market growth and market share relative
to the largest competitor.
BCG STARS (high growth, high market share)
- Stars are defined by having high market share in a growing market.
- Stars are the leaders in the business but still need a lot of support for promotion a
placement.
- If market share is kept, Stars are likely to grow into cash cows.
BCG CASH COWS (low growth, high market share)

Cash cows are in a position of high market share in a mature market.
- If competitive advantage has been achieved, cash cows have high profit margins and
generate a lot of cash flow.
- Because of the low growth, promotion and placement investments are low.
- Investments into supporting infrastructure can improve efficiency and increase cash flow
more.
- Cash cows are the products that businesses strive for.
BCG DOGS (low growth, low market share)
-Dogs are in low growth markets and have low market share.
-Dogs should be avoided and minimized.
- Expensive turn-around plans usually do not help.
BCG QUESTION MARKS (high growth, low market share)
- These products are in growing markets but have low market share.
- Question marks are essentially new products where buyers have yet to discover them.

ABL DATA
Division
Relative market
share
Industry
growth rate BCG Matrix
ABL HIGH LOW CASH COW
Corporate
banking HIGH LOW CASH COW
Islamic
Online services HIGH HIGH STARS
Personal
Virtual
banking LOW HIGH ?
Interpretation
The ABL bank made substation progress, recording strong growth in revenue and earnings. ABL
is one of the leading banks in Pakistan with the market share of 12.5% in industry. ABL was
once in stars but it didn’t utilize its profits there was a chance of horizontal integration by
purchasing RBS shares which wasn’t available due to the problem in rates of the shares. Hence
ABL lies in the cash cows. Product development and diversification may be attractive strategies
for ABL however retrenchment and divestiture are appropriate.
4.9 MARKETING MIX:
4.9.1 PRODUCT
PLANNING, DEVELOPMENT AND MANAGEMENT

Product planning is making decisions about the features that are needed to sell a business's
products, services, or ideas to the customers. When any new product is launched by the ABL
then the planning development and management of the product is perform.
Before Launching the new product management will continuously observe the market need and
wants and plan for the product that can achieve the organization goals and objective Companies
must be constantly modifying existing products and developing new ones. most new products are
modifications of or extensions to existing ones the introduction of a new product is a strategic
decision which should be guided by the company’s goals and a new product introduction strategy
when the organization think that there product is not achieving organization goal then they
decide to create new product or to modify it
The management should keep the following point when developing new product is best
developed
 The first two stages provide a focus for generating new-product ideas and
a basis for evaluating them.
 The next three stages deal with ideas and are the least expensive.
 must satisfy key financial criteria
 should also be compatible with production capabilities, satisfy legal
requirements, and fit with corporate goals and objectives
 must be compatible with environmental standards
 must fit with the company’s marketing structure
Product management is an organizational lifecycle function within a company dealing with the
planning or marketing of a product or products at all stages of the product lifecycle. The role of
product management spans many activities from strategic to tactical and varies based on the
organizational structure of the company each product has life cycle introduction growth maturity
and decline when a product reach at maturity level management try to keep maintain this level
the branch manager is tray to manage the product and tray to provide their best management to

their customer and provide them good and better environment. When the bank see that product or
service is not filling customer need then they develop a new product or modify it the key point is
how to manage the product it depends on management how the present their product to customer
to achieve their goal.
4.9.2 POSITIONING
ABL is having a unique position in the mind of the people because of the good repute in the
market. In marketing, positioning has come to mean the process by which bank try to create an
image or develop the minds of their target market for its product, brand, or organization. It is the
relative competitive comparison' their product occupies in a given market as perceived by the
target market.
Allied Bank of Pakistan has strong positioning in the mind of their customer or target market due
to its product unique attribute characteristic feature and superior service. Top management
always tries to differentiate their product and service using different Promotion scheme. To
communicate their audience and create strong identity, smarter name, crisper new colors and
fresh new look are an insight to our views on banking. The aim to provide innovative financial
solutions to customers, with the security of knowing they are dealing with one of the strongest
financial institutions in the country.
A carefully crafted business positioning strategy can be used as a guideline for judging the
appropriateness of all marketing programs, especially for promotion, advertising, and PR events.
It will ensure that our business image is consistent to your target buyers/end users and help to
build an enduring, memorable (and hopefully unique) message to sell your business products.
2.9.3 PRICING
Pricing Strategy is one of the four Ps of the marketing mix. This marketing mix strategy is
different from other because it is the only revenue generating element amongst the 4ps, the rest
being cost centers.

ABL use different price strategy for different products and service to achieve the organization
financial goals for each product. It use different strategy when any new product is lunched by the
ABL the top management of the bank must the see the marketing objective. Before selecting a
suitable price for a product, the marketer is needed to review the company's objectives. The
more clearer the company's objectives the more easily to set a price
Following are the possible pricing objectives
 Survival
 Maximum current profit,
 Maximum market share,
 Maximum market skimming,
 Product quality leadership.
Following are the steps in setting price for a product
 Selecting the pricing objectives
 Estimating costs;
 Analyzing the competitors' costs, prices and offers
 Selecting a pricing method;
 Selecting the final price.
4.9.4 PROMOTION
Allied Bank uses many tools for the promotion of its products or services like:
 Advertising (through print and electronic media)
 Public relations
 Customers Relation
4.10 PEST Analysis:

Political:
 Worse law and order situation in the country
 Political Interference and harassment.
 Incidents of high taxation on banking industry.
Economical:
 Constraints in mobilization of public savings because of inflation.
 Staff cost.
 Operating cost.
 Bad debts.
Social & cultural
 Inadequate human resources.
 Cultural strain to savings.
 Defaulter’s lobby.
 Declining education and work ethics.
 Inadequate accountability.
 Adequate empowerment.
Technical
 Inadequate communication infrastructure.
 Inadequate computer facilities.
 Inadequate IT training.

4.11 SWOT Analysis
SWOT is the abbreviation of four words these are “S” stands for strength “W” stand for
weaknesses “O” stands for opportunities and “T” stand for threats. Strength and weaknesses are
the internal factors of the organization and these are also known as the micro factors but the
opportunities and threats are the external factors and these are known as the macro factors. Micro
factors are the controllable factors but the macro factors are uncontrollable.
Whenever the organizations come into a form, they have to know about their strength and
weaknesses. Then they have to find out their opportunities and then they come to know about
their threats but according to the latest theory the word SWOT is known as WOTS. According to
this theory, first of all the organizations know their weaknesses, then they get knowledge of their
opportunities that they have in the particular sector and then they have come to know about their
competitors and at the last they think about their strengths.
The easiest way to know about any organization is the SWOT analysis. So to reveal the hidden
factors I did a SWOT analysis of the Allied bank. It is not the SWOT analysis of ABL as a whole
but only of the branch where I worked. Many aspects are same almost in every branch of the
Allied bank.
4.11.1 STRENGTHS
LARGE NUMBER OF BRANCHES
Allied bank has maximum number of branches in all over Pakistan. It has more than 735
branches connected to each other through an online network and most of the branches are
working at the main business points.

VARIETY in PRODUCTS
Allied Bank has many products for almost all type of customers. So, it depends on the customer
that which product he likes and in which sector he wants to invest depending on whether a
person is salaried one or a businessman. It also gives the companies the facilities of collection
accounts. ATM and Credit cards, online transfer, DD, TT, Rupee Traveler cheques are the main
products available for customers.
ONLINE FACILITY
Allied bank is providing the facility of online banking. This facility allows a customer to send or
deposit money through cash or a cheque to an account of any other branch of ABL. It also gives
the facility of balance inquiry and cash with drawl from a certain account of any other branch of
ABL through cheques.
SECURE BANKING
The online banking feature provides less chances of fraud. Because whenever some transactions
take place, they can be checked any time and their receipts are receipts are given to the
customers. Moreover, to prevent illegal acts, the person who transfers any amount submits his
copy of NIC to the bank.
LOCKERS FACILITY
Many banks provide the facility of lockers but not in their all branches but Allied bank is the
only bank that provides the lockers facility to their customers at their all branches.
CUSTOMER CARE CENTER
Allied bank has customer care center for its customers. They have toll free numbers on which
customers can dial and they have not to pay anything for it. This center also provides the facility
to the customers on spot and helps them whatever the matter is.

FOREIGN EXCHANGE
Allied bank provides the facility of foreign exchange to its customer. The customers may also
open their accounts in foreign currency. The bank provides the facility of letter of credit and
other export/import facilities to its customers. The customers may get the facility of money
exchange on the current rates. To get the latest rates, the head office provides them with the fax
facility of daily rates of foreign currency.
SAME ACCOUNT NUMBER FACILITY
At Allied bank the customers the person who has more than one account can have the facility of
the same account number only the suffix is changed. This facility provides the customer with
easy remembering of the account number.
PAID LEAVES
For employees the relaxation is that the employees may get the 36 medical leaves and 1-month
vacation in one year with their pay in case of some emergency.
SECURE ENVIRONMENT
Cameras are installed in all the branches of the bank to ensure security of its customers and
employees. Also security guards are available throughout the day. Cameras are installed in front
of the cash counters. These cameras are switched on all the time. The branch manager can see all
the activities while sitting in his office on a display monitor. If something goes wrong then the
manager can buzz the security alarm immediately.
ACCOUNT OPENING an EASY PROCESS
At Allied bank it’s very easy to open an account just an introducer and a copy of NIC is required.
Customer just needs to fill up account opening forms and can enjoy the facilities of any type of
account the want. This is the strength of Allied bank facilitates all of its customers.

EMPLOYEES’ REPLACEMENT
In every branch of Allied bank the back up of every employee is there in case of emergency if
some officer is not available at the bank, some other person will back him up. That person is
always well familiar with the responsibilities of that officer.
LOW RATE OF INTEREST
Allied bank offers loans to its customers on very low rates. This thing invites the customers to do
a business with ABL.
SUPPORTIVE ENVIRONMENT
The staff of the ABL is very much cooperative. This thing enhances its performance very much
by facilitating its customers and also by helping colleagues and sharing workload.
4.11.2 WEAKNESSES
INCENTIVE SYSTEM
Most of the staff in the Allied Bank is not completely satisfied with the inducements. This
dissatisfaction sometimes leads to less motivated employees in banking which in turn can affect
its business efficiency. Moreover, permanent staff is not given any performance related
incentives. As a result of this, an inefficient manager or employee is earning the same as an
efficient employee who is the real asset for the organization

INCREMENT IN WORKFORCE’S PAY
The other main weakness of the Allied bank is that there are mostly no annual increments to their
employees’ salary. This thing leads to the dissatisfaction of employees.
LATE PROMOTIONS
The other thing that for the employee’s point of view is a weakness in Allied bank is that the
employees are promoted after a big period against the schedules specified by the bank.
LOW PRODUCT CREDIBILITY
Allied Bank has still not got the edge where the consumers become loyal to its products and
services. Mostly customers become its customers out of no reason than request from a personal
banker. And talking about consumer banking, though credit cards awareness in our middle class
society has gradually improved but not up to the point where they can compare the features that
one Bank is offering and other is not. Truth must be said, most customers do not even know the
points behind the term “interest free days”. The point is, consumers do not know of the product
being offered so how can they rely on the product.
4.11.3 OPPORTUNITIES
The Allied Bank is having a great opportunity to emerge as the best bank of the country by
giving best possible services to its customers. The banking sector is improving day by day and
consumer banking is making great revolutions in the banking sector. Allied Bank is still working
in the corporate sector and it’s missing a big market share of consumer banking. If it enters this
market then this bank can become the biggest and the most efficient bank of Pakistan.
o Make Personal loans
o Car leasing
o Reduced transaction charges
o Use of media for promotion

2.11.4 THREATS
COMPETITORS
Allied Bank has the threats from their competitors in the banking sector, from the Govt. policies
and from the current economic conditions of the country:
The main competitors in the banking sector are the Bank-Alfalah, Faysal Bank, Muslim
Commercial Bank, PICIC Commercial Bank, NBP, UBL etc Due to the tough competition the
bank is forced to sanction the loans at the reduced rates and other services at minimized cost This
reduces the profit margin which is a big hurdle in the way of innovation and extended customer
services.
GOVERNMENT POLICIES
Other threat which ABL: faces is the policies of the government. Tax charged on the income of
banking companies is much higher than on the income of other companies. The strict regulations
issued by the central bank, revenue authorities and other concerned authorities are also a big
threat to the bank. The Govt. revises the tax policies on continuous basis, which often are not in
the interest of the industry including the banking sector.
POLITICAL CIRCUMSTANCES
Political conditions in Pakistan have been unstable since a very long period. Continuous changes
of regimes in the political affairs are great threat towards the healthy growth of the whole
industry.
TRADE and INDUSTRY CONDITIONS
Sudden rise and fall in the trade and industry conditions and stock exchange business of the
country also adversely affect the growth of banking sector. Unemployment, unfavorable balance

of trade, decreased per capita income; inflation and deflation, recession and boom are the source
to the handicapped progress of banking sector.
POLICIES of ABL
Another threat to the bank’s progress is its own policy. Bank is not concentrating on improving
its overall process. There is still lack of highly qualified staff in the bank. And the employees are
given promotions on reference basis, which causes frustration among employees and overall
graph of the performance comes down. So ABL should reconsider their policies so that the bank
may remain in the race.
4.12 MARKET SHARE OF ABL
ABL is Pakistan’s second largest bank by market share 25% its assets are of PKR 550 bln
(apprx.)(US$ 7.02 billion) in 2011, and the largest by market capitalization having a market
capitalization of US$ 1.8 billion. The Bank has a customer base of approximately 4.5 million and
a nationwide distribution network of 700 branches, including 10 Islamic banking branches, and
over 500 ATMs, in a market with a population of over 160 million.

CHAPTER-5
Conclusion and Findings
CONCLUSIONS AND FINDINGS
The past data of enabled to study the organization in a historical perspective and
understand the nuisances in the banking operations. Study of the present of ABL helped me
evaluate the organization in comparison to its future and competitors. The data obtained from the
analysis of its present and future in combination with my professional studies resulted in some
suggestions and implementation plans, which can help to increase the profitability and
operational success of the ABL, Jehangira Branch.
Some of the major findings/suggestions are discussed.

5.1 PHYSICAL FACILITIES
The physical facilities or the layout are the most fundamental features in an organization, which
the customers observe in forming an opinion, perception or idea about the organization.
Therefore, every organization tries to make a good first impression on customers through the
presentation of its physical facilities or layout. The physical facilities in the branch are not up to
the mark, which requires timely changes to provide good environment to customers. The
suggested changes and corrective actions are gives below:
 The lighting system must be improved and all the out of use lights must be replaced.
 Generators should be made available to the branch to minimize the disruptions due to
power failure.
 Newspaper should be provided to the customers to avoid the pain of waiting long.
 A cash counting machine can help reduce the time spent in counting cash.
5.2 AVAILABILITY OF STAFF
The existing staff in the Bank is overburdened due to the non-availability of more staff. Staff in
the branch must be in proportion to the customer has so as to expedite the workflow, avoid
overloading of staff and remove the customer’s grievances arising mainly due to delay in
workflow.
The additional staff required is in the fallowing categories.
 More technically trained staff should be added to the existing staff strength.

 One staff assistant or grade 2 officers properly trained in computer and sufficiently
trained in foreign currency accounts.
 One employee of grade 4 should be hire on daily wages or contract, to maintain filing.
5.3 COMMITMENT OF EMPLOYEES
The decreasing commitment of employees can be increased by introducing an effective
performance appraisal system, which can reward and recognize the achievements and services of
employees for the Bank.
The appraisal system must have the following features.
 Feed Back:
Periodically provided to employees and recognizing their efforts through reward
(bonuses) and publicly appreciation.
 Uniform:
The appraisal system must be uniform in evaluating all the employees without any
discrimination.
 Objectivity:
The appraisal system must be based on facts and figures and objective evaluation of the
facts on grounds.
5.4 SIMPLIFICATION OF ADVANCES
The biggest source of the bank revenue is advances. The advances of ABL, Jehangira branch are
on him decreasing trend, causing a decrease in the revenue for the bank. The bank should make
the advance procedure simple and quick to meet the customer’s requirements. The following
steps are suggested for simplifying the advance procedure.
 Increasing the discretion of manager for the amount of advance to Rs. 100,000.
 Speeding up the process of investigation and verification.

 Expanding its customer base.
5.5 MARKETING CONCEPT
The concept of marketing should be followed in every aspect of the organization. Generally, the
bank’s staff considers that marketing is to go to customers, beg them for opening an account with
the Bank and to abide by his every just and unjust action
They should be taught that marketing is not only to go to customers only. A customer can also be
attracted by provided customer oriented services, showing empathy to your customers and
attending him personally.
5.6 CUSTOMER ORIENTATION
Deposits are the main source of funds for commercial banks. Therefore, the priority of every
bank is to increase the number and amount of deposits. The key to successful business does not
lie in simply attracting new customers. The real success is to maintain in the old customers and
attract new customers at the same time because retaining a customer is more difficult than
attracting new customers.
 Every depositor should be given equal importance and there should be no differentiation
between customers so that every customer feels himself as much important as the other
customer.
 The attitude of the staff should be friendly to all the customers. The customers should be
taken to the concerned person or guided friendly if the concerned person is not available.
The attitude of “that’s not my job” should not exist anymore.
5.7 MOBILIZATION OF LESS COST DEPOSITS

The analysis of expenses shows that 43% of expenses of the bank are the payments on fixed
deposits, which is a very high proportion. Apart from this the interest earned on advances Rs.
0.265 million is smaller than the interest paid on different deposits Rs. 4.1 millions
The bank should launch a campaign to get less cost deposits much as high amount current
account as well as low cost PLS saving accounts.
5.8 INFORMATION ACCESS
The Bank should provide information to all the present and potential customers relating to the
new products, services, some service’s fee structure and other matters, which are likely to affect
the customers. It should be made sure that all the customers have access to this information.
Conveying information is of no use, unless, there is some feedback from the customers. The
following measures are suggested to implement this suggestion.
 Brochures, hand outs, pamphlets and other printed reports must be provided to customers,
which should provide all the information necessary to attract and retain customers and to
satisfy the customer’s need for more information.
 Personal contacts with the customers can help in providing information to customers.
All the customers must be provided a chance to get the desired information by personal
contact with the Bank staff.
 Complaint and suggestion box should be maintained at the door of the Bank where the
customers can point out drawbacks in the customer’s services and put forward their
suggestions on his improvement of the services quality of the Bank.
5.9 PERFORMANEC AUDIT
The financial audit of the bank is conducted on regular basis both as a surprise and routine audit.
However, the performance and system audits are completely ignored which, otherwise, should
have been a compulsory part of the auditing services of the Bank. The immediate outcome of
ignoring performance outcome is shortcoming in the non-financial aspects of this organization

such as customer relations, lack of necessary facilities, motivation of employees, and the control
of manager.
In the light of the above facts it is suggested that the performance audit of the bank must be
carried out on both regular and surprise basis to keep the Bank competitive in the run of for more
customers, more deposits and high profitability.
5.10 CAMPAIGN FOR INCREASING THE DEPOSITS
The numbers of account holders in a bank make a significant contribution to the deposits of the
Bank and determine its business volume, profits and size of a bank. Therefore, ABL, Jehangira
branch must a clear plan for increasing the number of accounts. The details of plan for increasing
the number of accounts are given in the implementation plan.
5.11 INCREASES IN BUSINESS SHARE
Along with concentrating on increasing the customer base, the Bank must also emphasize on
securing the highest market share in other banking services such as issuance of letter of credit,
foreign exchange, remittances, bills identification of productive secure and easily realizable
advances etc. to achieve this strategy the Bank should have a clear plans with the consent of the
higher management. The plan must be divided into different periods – weekly, monthly,
semiannual and annual. Every stage of the plan must be monitored and controlled on regular
basis.
5.12 ATM NETWORK PROBLEM
Some problems with ATM network were found. Many customers have complaints that their
requests placed on ATMs don’t carry out. It is mainly because of bad PTCL lines. Distortion in
lines of PTCL restricts the execution of requests placed on ATM machines by customers.
Although there is a network of dedicated lines for ATM machines, a request may not be

successfully carried out because of complicated request processing. A successful execution of a
request needs to be approved from three places:
 The branch (online) with which the customer (placing the request) have the account.
 Main branch of that area (city).
 The head office (in Karachi).
So connecting to all of these three places simultaneously and getting the request approved is a
complicated process. However management claims that there is nothing wrong with processing.
The only problem lies with PCL lines. So to solve this problem the bank should hire technicians
who can work during public holidays to make the ATM useable while it shows any distortion.
5.13 CASH DEPOSITES USING ATM.
Now-a-days in foreign countries ATM machines are also used for deposits of money and
utility bills can b paid up through ATM. But in Pakistan these services have not been utilized yet.
So if ABL upgrades its ATM technology so definitely it will get the competitive advantage over
other banks.
5.14 NETWORKING AMONG BANKS.
In allied bank the networking is only done within the bank, means the customer can’t
transfer his funds to other bank through online. The account holder who has the debit card can
transfer his money to other bank account through ATM. But the customer who doesn’t have
account but someone gave him a Habib bank cheque to transfer it online through near situated
Allied bank. So the allied bank can’t transfer it to Habib bank via online. So I recommend an
idea that there should be a networking among different banks so that they can transfer funds via
online.
5.15 MANUAL VOUCHERS SYSTEM.

As all the ledger system and vouchers are made manually which is a much time
consuming job and it also requires much more efforts most importantly human error chances are
there that’s why if the organization implement “SAP FINANCE MODULE” in their current
saving department that will help them creating automatic vouchers and ledger if any transaction
is made by customer because SAP has the capability to keep all the records of a an individual at
just one place and it has the capacity to store much data.
5.16 ONLINE LOANS
It was found that there is no online facility to apply for a loan. Whereas, in other banks
especially in foreign banks the customer who has an account in the same bank, can apply for a
loan through internet. So that he can save his time from going physically to the bank.

5.17 BIBLIOGRAPHY
 ABL annual report 2009
 ABL annual report 2010
 www.abl.com
 www.google.com
 www.wikipedia.com
 Marketing Report of ABL 2008
 Head office of NWFP performance report (2007)
 ABL Head Office Notes 2002.
 ABL Operational Manual 2005, Peshawar
 Walt J.M. 11th edition, Organizational Management
 Griffin, Ricky W, (1997), management, 5th edition DAS,

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