CHAPTER 1

INTRODUCTION

1.1 Introduction of the Study

The student of BBA (Hons) studying courses leading to degree in Business
Administration are required to undergo an internship program of two months duration.
This is an essential academic requirement. Comprehensive report written is required to
submit to the IBMS, The University of Agriculture Peshawar, fallows the internship.
This report is properly evaluated on the basis of its description and analytical
capabilities by internal and external examiner. Allied Bank Limited (ABL) is selected
for its being the pioneer and leading financial institution of Pakistan.

1.2 Background of the Study

The student of BBA (Hons) are required to submit an internship report after
completing there internship. This report is then evaluated on the basis of our degree
requirements. Allied Bank limited is the first bank incorporated on the soil of Pakistan.
It was incorporated in Lahore before independence in 1942 as Australasia Bank under
the chairmanship of Khwaja Bashir Bux, renamed as Allied Bank of Pakistan Limited
in 1974 and allied bank limited in 2005.

1.3 Purpose of the Study

Internship in an organization is requirement of BBA (Hons) degree. Student works in
an organization for a specific period of time and writes a concrete report about that
organization. As ABL is one of the oldest and well-established bank in the public
sector, so I preferred ABL in order to get more and more knowledge of the organization
(ABL). My internship in ABL had certain objectives such as:
i. To describe and know about working of ABL
ii. Understand Analysis of Financial Performance of ABL
iii. To Understand the Branch Problems
iv. To give recommendation for the improvement of Branch
v. Develop analytical skills for organizational analysis and financial analysis etc.

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1.4 Scope of Work
The scope of work is based on complete observation of Allied Bank Limited operation
during internship. I worked in the fallowing departments of the branch.
Clearing Department
Deposit department
i) Current Deposits

ii) PLS Deposits (PLS saving A/C, PLS term deposit.)

Advances department
i) long term
ii) short term
Remittances department

1.5 Methodology of Study

The most important task was to collect more quality information about the organization
as much as possible during the internship. Methodology tools used were:

1.5.1 Primary Data

i. Personal observation
ii. Discussion with bank personals

1.5.2 Secondary Data

i. Annual Reports
ii. Manuals of Bank
iii. State Bank manuals
iv. Books
v. Internet

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1.6 Scheme of the Report
The report has been divided into six chapters .Chapter one contain a brief
introduction of the report and chapter two contains brief history of Allied bank Limited
and also about services offered .Chapter three explain organization structure briefly
Chapter four contain the financial analysis of ABL Univeristy Town branch Peshawar.
Chapter five consist of SWOT analysis. And the last chapter six include important
finding, recommendation and conclusions.

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CHAPTER 2
OVERVIEW OF THE ORGANIZATION

A bank is a budgetary establishment which manages cash and credit. it is composed on

a business entity framework basically for the winning of benefit. Business banks
acknowledge stores from individual, firms and organizations at a lower rate of premium
and gives at a higher rate to the individuals who need it. As indicated by Crowther, "A
bank is a firm which gathers cash from the individuals who have it save. It loans cash to
the individuals who required it." In the expressions of Mr. Stopping, "A bank is a firm
that takes stores from family and firm and makes credits to other family unit and firms."

In current age, business banks additionally play out some different exercises examined
letter.

2.1 Banking in Pakistan

In July 30, 1948 banking began in Pakistan after the choice of planning the State Bank
of Pakistan. From that point, this area begins colossal development. 1974, the greater
part of the banks were nationalized by the legislature with the expectation that new
period of development could be accomplished through it. Anyway the procedure of
nationalization is turn around since 1991, up till now, MCB, ABL, HBL and UBL have
been privatized.

2.2 History of ABL

Unified Bank was the primary Muslim bank which has been built up in the region that
progresses toward becoming Pakistan later on.

Set up in December 1942 as the Australasia Bank in Univeristy Town Branch Peshawar
with a paid-up offer capital of Rs. 0.12 million under the Chairmanship of Khawaja

4
Bashir Bux, the Bank pulled in stores equal to Rs. 0.431 million in its initial eighteen
months of business.

At the time, the Bank's absolute resources added up to Rs. 0.572 million. Today, Allied
Bank's paid up Capital and Reserves add up to Rs. 10.5 billion, stores surpass Rs. 143
billion and absolute resources measure up to Rs. 170 billion.

2.2.1 The Pre Independence History (1942 - 1947)

In the mid 1940,s the Muslim social order was to comprehend the prerequisite for its
dynamic help in the fields of trade and industry. In 1880,s Hindus had set up a
coordinating proximity in the regions of industry, trade and business and were
especially managing in the Sub-territory zone.

It was particularly disturbing for Khawaja Bashir Bux to hear that "Muslims couldn't be
productive agents". He wandered up that challenges and stands out in structure up this
first Muslim bank by the name Australasia Bank Limited in Punjab, The fundamental
estimation of the Bank meant Rs 0.12 million, which was raised to Rs. 0.5 million
preceding the completion of the principle year of action and before the completion of
30th June 1947 capital extended to Rs. 0.673 million and stores raised to Rs 7.728
million.

2.2.2 Australasia Bank (1947 - 1974)

Australasia Bank was the primary totally operational Muslim bank in Pakistan on
August fourteenth, 1947. In any case, it was truly hit by the turmoil ridden situations in
East Punjab. The Bank was identified with the Pakistan Movement. At the period of
independence all of the branches in India, (Amritsar, Batala, Jalandhar, Ludhiana, Delhi
and Angra (Agra)) were closed down. New branches were opened in Karachi,
Rawalpindi, Peshawar, Sialkot, Sargodha, Jhang, Gujranwala and Kasur. Subsequently,
the framework spread to Multan and Quetta too. The Bank financed trade material and

5
sustenance grains thusly, accepted a basic employment in keeping up buyer supplies in
the midst of the early significant lots of 1948 affected by fits of commotion. Despite the
troublesome conditions winning and the huge set back in the Bank's business in India,
Australasia Bank made an advantage of Rs. 50,000 in the midst of 1947-48.

Before the completion of 1970 it had 101 branches. Tragically, it lost 51 branches in the
unit of East Pakistan. Nevertheless, the Bank did well paying little mind to losing a lot
of its points of interest and before the completion of 1973 had 186 branches in West
Pakistan.

2.2.3 Allied Bank (1974 - 1991)

In 1974, the Board of Directors of Australasia Bank was separated and was renamed
Allied Bank. The vital year was extremely productive; advantage outperformed Rs. 10
million, stores rose by in excess of 50 percent and pushed toward Rs. 1460 million.
Hypotheses rose by 72 percent and advances outperformed Rs. 1080 million
unprecedented for the money related history. 116 new branches were opened in the
midst of 1974 and the Bank started checking out the Government's spot procurement
cultivating framework.

Those seventeen years saw a quick improvement for the Bank. Branches extended from
353 of each 1974 to 748 out of 1991. Stores climbed from Rs. 1.46 billion, and
Advances and Investments from Rs. 1.34 billion to Rs. 22 billion in the midst of this
period. It in like manner opened three branches in the U.K.

2.2.4 Privatization (1991 – 2004)

In light of privatization in September 1991, Allied Bank entered another stage, and
transformed into the world's first bank to be guaranteed and directed by its laborers. In
1993 the "Main Allied Bank Modaraba" (FABM) was floated. After privatization,
Allied Bank wound up one of the head budgetary associations of Pakistan.

6
Banded together Bank's capital and stores were Rs. 1.525 billion; its points of interest
meant Rs. 87.536 billion and stores to Rs. 76.038 billion. Joined Bank valued a
fortunate position in Pakistan's cash related portion and was seen as a champion among
the best among the genuine banks of the country.

In August 2004, as a result of capital revamping, the Bank's ownership was traded to a
consortium including Ibrahim Leasing Limited and Ibrahim Group.

Today, the Bank stays on a solid foundation worked over 63 years of tireless work and
commitment, giving it a strong esteem, preference and store base and the ability to offer
customers far reaching monetary organizations with more focus on retail banking. The
Bank has the greatest arrangement of online branches in Pakistan and offers diverse
advancement based things and organizations to its various client base through its
arrangement of more than 766 branches.

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2.2.5 Today (2005 to date)
In May 2005, Ibrahim Leasing Limited broke down and the organization was vested
into Allied Bank Limited. Every one of the investors were issued ABL shares rather
than the all offers held by them. An application for the posting of ABL shares in all the
Stock Exchange Companies of Pakistan was made; ABL was formally recorded and the
Bank's offer exchanging started on the accompanying dates.
2.3 Business Volume
i. 59 hundred million deposits
ii. Customers 3500 upto 4000
iii. Waking customer visiting customer two hundred
iv. Net profit 350 million

2.4 Products and services

ABL offer fallowing products and services

2.4.1 Online Banking

Unified Online Banking is an interesting administration being putting forth from Allied
Bank. Through this administration, your record in Allied Bank is accessible to you from
any of our branches countrywide. Regardless of where you are in the nation and
whichever branch your record is kept up at, you can have your check gotten the money
for at any of our 757 online branches situated in 250 urban communities. You can
likewise utilize the administration, from any branch, to store money for moment credit
into your record or some other record in Allied Bank. Thus, the record to-account
Funds Transfer office is likewise accessible for moment settlement.

Your check drawn from a remote branch for credit into a recipient's record or
encashment of a predetermined sum can likewise be exhibited by a third individual at
any branch. Likewise, making a Balance Inquiry and getting an Account Statement are
extra administrations accessible to Account holders from remote branches.

8
Partnered Online gives a protected, productive and advantageous office for making
installments to recipient accounts from any of our branches countrywide. Corporate
clients requiring store accumulation or a payment office can utilize it for money the
board administrations.
2.4.2 Internet Banking
Banking is now at fingertips! Allied Direct Internet Banking offers the convenience to
manage and control customer banking and finances - when they want, where they want.
It's Simple, Convenient, Secure and Faster.
Some of the advantages of Allied Direct Internet Banking are:

2.4.2.1 Simple and convenient

Easier navigation and help provided at every step so customer can make full use of this
service. With Allied Direct convenience is just a click away.

2.4.2.2 Secure and faster

Encrypted with latest tools and technologies, Allied Direct is the choice for secure and
fast Internet Banking.

2.4.2.3 24x7 Access

Customer now have access to their account 24 hours a day, 7 days a week. They can
transfer funds or pay bills, even when it's a holiday.

2.4.3 Lending Products

2.4.3.1 Seasonal Finance

ABL give money specifically crop seasons. The conveyance of stocks/products is

made against proper money installment. The essential reason for this fund is to
address the issues of little ranchers who required cash to develop their yields and
to bolster their family up to the season of reap. Thusly they take advances from
ABL to sell their item ahead of time.

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2.4.3.2 Agriculture Finance

Bank under Agriculture Finance Scheme expand short, medium and long haul,
ranch and non-ranch credits. The homestead credits are stretched out for creation
(data sources) and improvement purposes. Non-ranch credits are took into
account animals (goats, sheep, dairy cattle and so on) poultry, production line
including social ranger service and fisheries (inland and marine barring profound
see angling).

2.4.3.3 Import, Export Business/Trade fund

United Bank Limited gives exceedingly effective exchange money administration

for imports/sends out organizations for clients through huge number of approved
branches where prepared and propelled staff is accessible to deal with the business
for the benefit of clients.

2.4.3.4 Running Finance

Running Finance is a transient credit permitted by the bank for a time of one
year. The running fund record can be worked and day by day deal continues can
be stored in the record. The markup is deducted on the results of every day
remarkable equalization. The running account is reasonable for meeting everyday
budgetary necessities of the organizations.

2.4.3.5 Demand fund

Sought after fund, the bank dispense in singular amount or as per the concurred

Payment calendar and it is repayable according to the concurred portions, which

could be month to month, quarterly, semiannual or yearly.

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2.4.4 Allied Master Card
Allied Bank, under license from Master Card International USA, issues its Master Card
to any one meeting the eligibility criteria. Allied Bank is of the view the time has come
to bring about a radical change in the Pakistani Credit Card industry. Being a successful
individual, customer deserves a life unrestricted by cash limitations. Allied Bank
Master Card has no extra costs. It has a simple application procedure and a fastest
processing time. It is accepted in more then 16000 establishment’s ion Pakistan and
over 17 million retailers across the world. It provides the customer complete financial
independence.

2.4.5 Home Remittances

ABL having a system of 766 branches everywhere throughout the Pakistan,

attempts to give protected and moment installment of settlements from ostracizes,
directed through planned remote trade organizations and journalist keeps money
with whom extraordinary course of action have been made in such manner.
Through Allied Express Service, ABL guarantees that recipients account in Allied
Bank offices are credited with in 48 hours of accepting home settlements data
from abroad.

2.4.6 Remittances

"Remittance" signifies sending cash via mail or some other technique. It might
likewise be characterized as "installment sent via mail to an inside for handling".
ABL Univeristy Town Peshawar Branch additionally gives the office of exchange
of assets from one bank to other branch and starting with one spot then onto the
next spot. The exchange of store is the duty of settlements division.

2.4.6.1 Outward Remittances

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At the point when a bank sends a Telegram, Mail or Demand Draft to another
bank (concerned branch) for installment to the client is called outward
settlements. The client pays charges on the counter. The sender is required to
apply through a structure in which he will give all the vital insights regarding the
sender and recipient. The mark of the client is checked and applicable reports are
connected according to trade control guidelines.

2.4.6.2 Inward Remittances

Whenever wire, Mail and Demand Draft are drawn on ABL branch, it is called
internal settlements. Bank charge retaining assessment and commission as
indicated by the rate determined in the calendar of bank charges. Unified Bank
can exchange reserve to the remote piece of the nation for installment to the client
himself or outsider. Transmitted Transfer can likewise be made abroad.
2.4.7 Online Branch Network Interconnection
Online Banking facilities are available to customers maintaining accounts at all online
branches across the country. The following facilities are available:
Cash Deposit for immediate credit to a remote branch.
Remote Cheque Encashment from any online branch.
Instant Funds Transfer between any 2 online branches.
Remote Balance Inquiry and Statement of Account.
Additionally, account holders of all online branches can obtain the Allied Cash+Shop
Visa Debit Card for use at ATMs as well as at POS terminals.

2.5 Competitors

Competitors of Allied bank ltd of Pakistan are all scheduled banks, which are
listed/trading under Banking Companies Ordinance 1962.

Competitive Banks are as under:

i. Habib Bank Limited

ii. United Bank Limited

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 iii. Muslim Commercial Bank Limited
iv. Allied Bank Limited
v. Askari Commercial Bank Limited
vi. Soneri Bank Limited
vii. Khybaer bank
viii. Standard charter
ix. Bank Al-Habib Limited
x. Meezan bank
xi. Alfalah Bank
xii. Faysal bank
xiii. Bank of Panjab

CHAPTER 3
ORGANIZATION STRUCTURE

3.1 Organizational Structure

Hierarchical structure is the system that characterizes the limits of the formal
association. An appropriate authoritative structure for the idea of the association
prompts better execution. The new authoritative structure of the bank comprises an
exhausted of chiefs and an official board of trustees as the administering bodies. The
Allied Bank Limited has 766 branches in 250 urban communities. The head office is
operationally accountable for focal undertakings including the designation of intensity
and specialist to the territorial head quarters everywhere throughout the nation.

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Source: ABL Annual Report 2018

Table No 3.1 Allied Bank Limited Branch Network

Total 223
Central 11 Groups
Regions Branches

Gujrat Region 21

Sialkot Region 24
Gujranwala Region 34
Gulberg Region, Ramdas Bazar Peshawar 38
City Region, Ramdas Bazar Peshawar 35
Faisalabad Region 35
Sargodha Region 36

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Regions Branches

Jhang Region 19
Multan Region 31
Sahiwal Region 25
Bahawalpur Region 22
Rahimyar Khan Region 12
Jhang Region 19
Multan Region 31
Sahiwal Region 25
Total 109
Source: ABL Annual Report 2012

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Table No 3.2 Allied Bank Limited North Group
Regions Branches
Abbottabad Region 21
Kohat Region 17
Peshawar Region 40
Mardan Region 32
Islamabad Region 31
Rawalpindi Region 44
Mirpur Region 33
Muzaffarabad Region 18
Total 236
South Group
Regions Branches
Hyderabad Region 25
Nawabshah Region 17

Sukkur Region 21
City Region, Karachi 33
Karachi 33

Nazimabad Region, Karachi 35

Quetta Region 34
Total 198

Source: ABL Annual Report 2012

ABN Amro Bank KASB Bank Limited Al Baraka Islamic Bank

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 Allied Bank Limited Meezan Bank Limited

Allied bank ltd of Pakistan Askari Commercial Bank Limited

NIB Bank Limtied Atlas Bank Limited

Habib Bank Limited Tameer Micro Finance Bank Limtied

PICIC Commercial Bank Limited MyBank Limited

Soneri Bank Limited Bank Alfalah Limited

Standard Chartered Bank Pakistan Bankislami Pakistan Limited

Limited
Union Bank Limited Crescent Commercial Bank Limited

Dubai Islamic Bank Pakistan Limited Emirates Global Islamic Bank Limited

Faysal Bank Limited First Dawood Islamic Bank Limited

United Bank Limited Bank AL Habib Limited

Table 3.3 ALLIED BANK LIMITED

Source: ABL Annual Report 2012
Table 3.4 ATM Service Charges
1 Issuance of ATM Card Nil
2 Half-yearly usage fee Nil
3 Replacement of card Rs.250/-

3.2 Number Of Employees

Table 3.5 Number of Employees
Year 2010 2011 2012
No. Of Employees 8325 8713 8986

Table 3.6 Staff Strength

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Staff Strength Total
Permanent 8986
Temporary/On Contract/Trainee 142
Outsourced 3505

Total Staff Strength 12633

Source: ABL Annual Report 2012

3.3 Head Office

The Head Office of ABL is arranged in Karachi. All branches and territorial
workplaces work as indicated by the standards and guidelines issued by the
Head office now and again. The Head Office of ABL, which is essentially in
charge of making approaches and execution of arrangement choice incorporates.
3.3.1 Groups review
3.3.1.1 Corporate and investment Banking:
The Corporate and investment Banking group (CIBG) focus on attracting and servicing
large customers. Have expertise in providing exemplary customized and personalized
service to corporate customers under the relationship management concept which is
basically catering to all the customer needs through one-window operations.

3.3.1.2 Commercial and Retail Banking:

The Commercial and Retail Banking Group (CRBG) centers around keeping pace with
the quickened development and advancement in the financial business and developing
specialization giving different item and administrations to the verity of target
showcases and wanted development rate is accomplished in creating business resources
and cost proficient preparation of stores.
3.3.1.3 Treasury
The treasury group is actively involved in fund management through transactions in
inter bank market and management of investment in government securities and equities.
The group is also responsible for managing regulatory reserve requirements.
3.3.1.4 Risk Management

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The essential target of hazard the executives bunch is to comprehend the hazard profile
of different organizations to start and propose chance breaking points so as to total and
control credit showcase and operational hazard over the bank.
3.3.1.5 Audit and Inspection
Internal audit and inspection has a pivotal role in defending organization from financial
indiscipline and mismanagement. As a part of good governance practice the Audit and
Inspection Group primarily perform its function independent of the management and
reports to the Audit committee of the bored of Directors.

3.3.1.6 Special Assets Management

SAM focuses on reducing level of Non Performing loans to an optimum level within
minimum possible time. Finance group plays a central role in strategic decision
making, transparent financial reporting and enhancing the economic values of the bank.
It also provides support to the business groups in performance analysis and lunching
new products.

3.3.1.6 Operations
Operational group maintain the smooth running of the bank and provide support to the
management concerning any operational issue.

3.3.1.7 Information technology

Allied Bank is committed to serve its clients with banking solutions based on the state
of art technology. Over the past few years, the bank has taken the strategic decisions to
concentrate of technology. Going into this direction, the bank has recruited the highly
experienced professionals to accomplish the bank technology requirements.

3.3.1.8 Human Resources

Human resource group focus on the objectives of developing, implementing and
supporting programs that adds value to the bank human assets. Leading to improve
employee welfare, empowerment, growth, and retention while being committed to its
management and overall satisfaction of its customer, employees and share holders.

19
3.4 Introduction of the Department

Unified Bank restricted gives its administrations to the residents of Peshawar from all
the more then 10 years. It catches a major piece of the pie and mindful conduct and
imperative piece of the way of life, character and business rehearses. Being one of the
main bank, and give customer esteem included item and administrations, yet in addition
advance a corporate culture that holds fast to the most noteworthy moral gauges, and
create predominant yet feasible returns for the investors when all is said in done. This
report is about ABL Bank Road Mardan. Because of its area, it draws in more clients.
The bank is well known for its administrations and items which they offer to the
network.
3.4.1 Management and Operations
ABL hired talented and experience people for management in ABL University Town
Branch Peshawar. They work in a group to ensure the safe and smooth conduct of bank
operational activities. The management also focuses on business objectives and goals,
beside this ABL also having an Audit and Inspection Department which check the bank
day to day operations.

3.4.2 Departments at ABL G.R Road Branch Peshawar

ABL University Town Branch Peshawar consist of the fallowing departments

3.4.3 Deposits Department

According to the meaning of "bank" under segment 5 (b) of the "Banking Ordinance
1992" one of the primary capacity of a bank is to acknowledge stores. Stores are the
foundation of any bank. Different elements of the bank rely on the sort and measure of
stores. ABL Bank Road Mardan offer fallowing accounts;Current Account
i. PLS Saving Account
ii. Allied Basic Banking Account
iii. Allied Profit Plus Deposit Account
iv. Allied Profit Plus Term Deposit

3.4.4 Remittances Department

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"Remittance" signifies sending cash via mail or some other technique. It might likewise
be characterized as "installment sent via mail to an inside for preparing". Current
business pattern request quick development of assets starting with one geographic end
then onto the next. Most recent innovation and information correspondence frameworks
make such exchange conceivable within minutes. Settlements bureau of ABL Bank
Road Mardan play out the fallowing capacities;

3.4.4.1 Demand Draft

DD is a debatable instruments issued by a part of a bank suffocate on another part of a
similar bank.

3.4.4.2 Telegraphic Transfer

Exchange of assets to another part of a similar manage an account with the assistance of
test numbers. On the off chance that the test number concurs, the bank makes
installment to the gathering.

3.4.4.3 Pay Order

Pay request is financier check issued supporting a named recipient. It is an unequivocal
request to pay a total of cash to the expressed individual. Before following up on the
utilization of a Pay Order, the client's record balance is checked or money gotten by the
measure of Pay Order and different charges. Pay request leaf is composed and crossed
(whenever required) and marked by tow approved people. At that point it is sent to the
objective branch. It can likewise be dropped by the solicitation of candidate.
3.4.4.4 Traveler Cheque
It is a draft suffocates by the holder on the issuing bank for round sum. The holder
signs the check within the sight of the issuing bank. In the event that you are going in
your very own nation and don't wish to convey a lot of cash with yourself, you can get
an explorer check from any part of a business bank.

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"Rupees Traveler check" is one of the most helpful item propelled by Allied Bank,
which has a magnificent market reaction. With the utilization of government demands,
ostensible commission is likewise charged on issuance of “Traveler Cheque”.

3.4.5 Credit Department

One of the fundamental elements of a business bank is to stretch out credit to the
individuals who need it. Through credit expansion, banks quicken different divisions of
economy. Credit choice, appropriate control of money and on time recuperation of
credits is the principle obligations of credit division. In such manner, the credit
approach of a bank assumes critical job since it give the general structure, obligations,
specialists and encourage basic leadership. Credit office execution is liable to a
characterized approach on layaway control and practiced by the SBP. SBP impact the
credit choice through the weapons of bank rate, open market activity, variable save
prerequisites, credit limitations and prudential guidelines.
Facilities offered by Allied Bank Limited Ramdas Bazar Peshawar are;
i. Seasonal Finance
ii. Running Finance
iii. Demand Finance
Beside this, ABL also extend credits to their own employees for different purposes.
3.4.6 Clearing Department
Just open check is gotten the money for on the bank counter. Installment of crossed
check can't be made on the counter. Its installment is conceivable through gathering
financiers. The capacity of clearing office is separated into two fundamental classes
Inter Branch Transactions
Inter Branch Transaction are the transactions between two branches of the
same bank.
i) Inter Bank Transactions
Transaction between two branches of two different banks

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CHAPTER – 4
FINANCIAL ANALYSIS
4.1 Financial Analysis

Financial Analysis is an assessment of the association's past budgetary execution and its
prospect for what's to come. It comprises of applying explanatory apparatuses and other
important date to acquire valuable data. The fiscal summaries with the joined timetable
and chief's report on past execution and future prospect give conservative data.

The invested individuals need to translate this data about execution of the organization
using monetary devices. The fundamental motivation behind money related
examination is to give clear image of the firm monetary position by contemplating the
relationship and correlation between the things in the announcement. Keeping in view
its significance, I have translated the fiscal summaries of ABL in the fallowing way.
Table No 4.1 ALLIED BANK LIMTED BALANCE SHEET FROM 2014 -2018
ASSETS 2018 2017 2016 2015 2014
Cash and balances with 23,653,754 29,739,857 23,039,577 14,742,504 10,842,519
treasury banks
Balances with other banks 2,097,611 668,449 1,705,445 3,292,038 1,477,972

Lendings to financial 15,793,183 18,419,241 19,050,239 5,777,382 16,175,000

Institutions
Investments 82,433,998 83,958,463 46,953,241 44,830,058 57,321,020

Advances 213,020,108 168,407,280 144,033,634 110,946,972 59,484,812

Operating fixed assets 11,150,129 7,548,628 6,445,111 4,720,344 2,552,174

Deferred tax assets 1,031,049 662,431 638,168 680,093 1,122,017

Other assets 17,388,612 10,705,374 10,161,361 7,180,269 5,950,969

Total Assets 366,568,444 320,109,723 252,026,776 192,169,660 154,926,483

LIABILITIES
Bills payable 2,952,490 3,494,384 2,278,007 2,448,620 2,534,363

Borrowings from financial 27,778,151 22,933,656 18,410,425 9,693,785 12,538,430

institutions
Deposits and other 297,474,543 263,972,382 06,031,324 161,907,491 126,391,752
Accounts
Sub-ordinated loans 2,498,000 2,499,000 2,500,000 – –

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Other liabilities 13,629,361 7,332,059 5,119,267 5,084,528 3,206,094

Deferred tax liabilities – – – – –

Total liabilities 344,332,545 300,231,481 234,339,023 179,134,424 144,670,639

NET ASSETS 22,235,899 19,878,242 17,687,753 13,035,236 10,255,844

REPRESENTED BY
Share capital 6,463,644 5,386,370 4,404,642 4,404,642 4,404,642

Share premium – – – 4,316,324 10,640,031

Reserves 5,804,776 6,050,713 6,133,209 1,019,899 716,562

Unappropriated profit / 8,475,791 6,971,308 5,607,796 1,658,829 (6,313,635)

(Accumulated losses)
Surplus on revaluation of 1,491,688 1,469,851 1,458,106 1,635,542 808,244
assets – net of tax
Total Equity 22,235,899 19,878,242 17,687,753 13,035,236 10,255,844

Source: ABL Annual Report 2018

Table No 4.2 ALLIED BANK LIMTED BALANCE SHEET FROM 2014 -2018
ITEMS 2018 2017 2016 2015 2014
Mark-up/Return/ 30,594,020 21,201,422 17,215,507 9,846,657 5,244,710
Interest earned
Mark-up/Return 16,549,601 10,019,004 6,793,101 2,024,659 794,105
/Interest expensed
Net Mark-up/ 14,044,419 11,182,418 10,422,406 7,821,998 4,450,605
Interest income (a)
Provision against non- 1,372,155 2,712,936 583,305 413,352 1,519,682
performing loans and
advances - net
Provision for diminution 1,840,249 719 (14,623) 17,014 (26,832)
in the value of
investments - net
Bad debts written off 2,736 1,187 136,189 154,359 44,294
directly
Total (b) 3,215,140 2,714,842 704,871 584,725 1,537,144

Net Mark-up/Interest 10,829,279 8,467,576 9,717,535 7,237,273 2,913,461

income after
Provisions (a-b)=c

NON MARK-UP/INTEREST INCOME

Fee, commission and 2,299,024 2,062,677 1,353,888 1,220,362 1,255,153
brokerage income
Dividend income 1,426,378 147,184 193,255 46,146 15,230

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Income from dealing in 230,060 194,879 282,285 250,224 265,345
foreign currencies
Gain on sale of securities 150,537 1,439,387 376,792 124,383 49696

Unrealized gain/(loss) on 3,201 (1,463) (30,180) 25,706 68

revaluation of investments
classified as held for
trading – net
Other income 59,934 77,435 273,028 263,599 154,682

Total Non-markup/ 4,169,134 3,920,099 2,449,068 1,930,420 1,740,174

Interest income (d)
Total (c+d)=e 14,998,413 12,387,675 12,166,603 9,167,693 4,653,635

NON MARK-UP/INTEREST EXPENSES

Administrative expenses 8,145,506 6,018,346 5,290,578 4,252,337 4,108,172

Provision against other 214,284 119,579 205,307 39,828 150,179

assets - net
Provision against off- 190,824 39,805 2,546 79,095 (93,427)
balance
sheet obligations - net
Other charges 390,877 256,869 7,078 18,999 7,009

Total non-markup/ 8,941,491 6,434,599 5,505,509 4,390,259 4,171,933

Interest expenses
Extra-ordinary/ – – – – –
unusual items
PROFIT BEFORE 6,056,922 5,953,076 6,661,094 4,777,434 481,702
TAXATION
Taxation 1,963,061 1,876,918 2,263,844 1,744,062 289,929

PROFIT AFTER 4,093,861 4,076,158 4,397,250 3,033,372 191,773

TAXATION
Unappropriated profit/ 6,973,227 5,607,796 2,731,979 (6,313,635) (6,471,127)
(losses) brought forward
Transfer from surplus on 17,541 32,701 19,452 19,882 14,989
revaluation of fixed assets
– net of tax
Total 6,990,768 5,640,497 2,751,431 (6,293,753) (6,456,138)

PROFIT AVAILABLE 11,084,629 9,716,655 7,148,681 3,063,326 (6,264,365)

FOR APPROPRIATION

Source: ABL Annual Report 2018

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4.1.1 Trend Percentages

The adjustment in the fiscal report things from a base year to fallowing years are
communicated in term of Trend Percentages to demonstrate the surviving and course of
progress. The pattern investigation thinks about the monetary history of a firm for
examination. By taking a gander at the pattern of a specific proportion, one sees
whether the proportion is falling, rising or smashing moderately steady.
Table No 4.3 Horizontal analysis of ABL during the period 2014-2018
ASSETS 2018 2017 2016 2015 2014
Cash and balances with treasury banks 100% 135% 212% 274% 218%
Balances with other banks 100% 222% 115% 45% 141%
Lending to financial institutions 100% 35% 117% 113% 97%
Investments 100% 78% 82% 146% 144%
Advances 100% 186% 242% 283% 358%
Operating fixed assets 100% 184% 252% 295% 435%
Deferred tax assets 100% 60% 57% 59% 91%
Other assets 100% 120% 170% 179% 292%
LIABILITIES
Bills payable 100% 96% 89% 137% 116%
Borrowings from financial institutions 100% 77% 146% 182% 220%
Deposits and other accounts 100% 128% 163% 208% 235%
Other liabilities 100% 158% 159% 228% 425%
Total 100% 123% 160% 207% 238%
NET ASSETS 100% 127% 172% 193% 216%
REPRESENTED BY
Share capital 100% 100% 100% 122% 146%
Share premium 100% 40% 0 0 0
Reserves 100% 142% 855% 844% 810%
Surplus on revaluation of assets – net of 100% 202% 180% 181% 182%
tax
Total equity 100% 127% 172% 193% 215%
Source: ABL Annual Report 2012

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4.1.1.1 Interpretation

Deposits with the SBP are maintained to fulfill with the legal requirement issued from
time to time. These deposits are stated to meet the smallest cash reserve and capital
requirement.

The ratio of cash balance with the central bank is accumulative from the base year to
2016 which is good sign for the bank, but decreases in 2017 due to the State Bank
policy.

Cash balance with other banks is decreasing which effect the liquidity. An increasing
ratio is required for the bank. Landing to financial institutions are the bank assets.
Growing ratio will be cost-effective sign for the bank.

Bank invests the deposited funds. The investment decreased in 2014 but then started
rising again. This means that the bank is investing must of its cash which will earn
profits for the investors. The amount of other assets increases which means that the
bank liquidity position is strengthening.

Bills payable is a liability that is growing with a constant and satisfactory pace but in
2018, the bills payable position is good. The bank barrowing from other institutions are
increasing which is not a good indicator for the bank. The change in net assets position
is good through out the period. Total equity represents the shares of the owner that is
increasing which means that people are wiling to invest in ABL.

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Table No. 4.4 Horizontal analysis of ABL during the period 2014-2018
ITEMS 2018 2017 2016 2015 2014
Net Mark-up/Interest income 100 175% 234% 250% 315%
Provision against non-performing loans 100 27% 38% 178% 90%
and advances - net
Bad debts written off directly 100 320% 300% 20% 25%
Net Mark-up/Interest income after 100 248% 333% 290% 370%
Provisions
NON MARK-UP/INTEREST INCOME
Fee, commission and brokerage income 100 97% 107% 164% 183%
Dividend income 100 300% 402% 512% 600%
Income from dealing in foreign 100 94% 106% 73% 86%
currencies
Gain on sale of securities 100 250% 715% 900% 302%
Other income 100 170% 175% 50% 38%
Total Non-markup/Interest income 100 110% 140% 225% 239%
Total non-markup/Interest expenses* 100 105% 131% 154% 214%
PROFIT BEFORE TAXATION 100 900% 1300% 1212% 1225%
Taxation 100 600% 750% 650% 677%
PROFIT AFTER TAXATION 100 1500% 2000% 2100% 2200%

NON MARK-UP EXPENSES 2015 2016 2017 2018

Administrative expenses 8,145,506 6,018,346 5,290,578 4,252,337

Provision against other assets - net 214,284 119,579 205,307 39,828

Provision against off-balance sheet obligations – net 190,824 39,805 2,546 79,095
Other charges 390,877 256,869 7,078 18,999

Total non-markup/Interest expenses 8,941,491 6,434,599 5,505,509 4,390,259

Source: ABL Annual Report 2012

4.1.1.2 Interpretation
Net Mark-up/Interest income are increasing but provision against non-performing loans
in increased in 2016 which is unfavorable. The bank controlled this in 2011 because a
low ratio is required. Bad Debts are decreased that contributed to increase the earnings
of the bank. Net Mark-up/Interest income after Provisions has increased drastically
which is good.

Increasing trend of commission through out the period good sign as advances have been
increased and also the commission rate has been increased. The dividend income of the

28
bank drastically increases since 2008. It shows the bank investment in different
securities. Total Non-markup/Interest income increases due to these activities.

Total non-markup/Interest expenses also increases but it is satisfactory. Profit before

taxation increases in a huge amount in 2014 and then a stable increase which shows the
good performance of the bank. The net income of the bank also increases. The good
results of the bank is may be as a consequent of privatization but the good performance
of the management also contribute to it.

4.1.2 Vertical Analysis

Common size analysis expresses comparison in percentages. The use of common size
analysis makes comparison of firms of different size much more meaningful. Common
size percentages are often called as “component percentages” or “100 percent
statement” because each statement is reduced to the total of 100. Each percentage
shows the relation of the individual item to its respective total.

29
Table No. 4.5 Horizontal analysis of ABL during the period 2014- 2018
ASSETE 2014 2015 2016 2017 2018
Cash and balances with treasury banks 7% 7.6% 9.1% 9.2% 6.4%
Balances with other banks 1% 1.7% 0.67% .2% .5%
Lending to financial institutions 10% 3% 7.5% 5.7% 4.3%
Investments 37% 23% 18.6% 26.2% 22.4%
Advances 38% 57.7% 57% 52.6% 58.11%
Operating fixed assets 1.6% 2.4% 2.5% 2.3% 3%
Deferred tax assets 1% .3% .5% .2% .2%
Other assets 4.4% 4.3% 4% 3.3% 4.7%
Total Assets 100% 100% 100% 100% 100%
LIABILITIES
Bills payable 1.6% 1.2% 0.9% 1% 0.8%
Borrowings from financial institutions 8% 5% 7.3% 7.1% 7.5%
Deposits and other accounts 81% 84.2% 81.7% 82.4% 81%
Sub-ordinated loans 0 0 0.9% 0.7% 0.6%
Other liabilities 2% 2.6% 2% 2.2% 3.7%
Total liabilities 92.6% 93% 93% 93.7% 93.9%
SHAREHOLDERS EQUITY
Share capital 2% 2.2% 1.7% 1.6% 1.7%
Share premium 4% 2% 0 0 0
Reserves 1% 1.2% 2.6% 1.8% 1.5%
Unappropriated profit(Accumulated 0 1% 2.2% 2.8% 2.3%
losses)
Surplus on revaluation of assets – net of .4% .5% 0.5% .45 0.4%
tax
Total Equity 7.4% 7% 7% 6.3% 6.1%

ITEMS 2014 2015 2016 2017 2018

Total revenue 100% 100% 100% 100% 100%
Total non-markup/Interest expenses* 89.6% 47.6% 45.2% 52% 60%
PROFIT BEFORE TAXATION 10.4% 52.3% 54.7% 48% 40%
Taxation 6.2% 19% 18.6% 15% 13%
PROFIT AFTER TAXATION 4.2% 33% 36.1% 33% 27%
Source: ABL Annual Report 2012

30
4.1.2.1 Interpretation
Cash and balances with treasury banks increases up to 2016 but decreased in 2017
which is not a good sign for the bank. Balances with other banks ratio are high in 2018
but low in other years. One of the reason is that bank’s advances ratio is very high and
bank has invested major of its share on advances side. Over all, ratio of current assets
of the bank increases which is good sign for the bank.

Major part of the liabilities side is Deposits and other accounts, which means that the
customer deposit accounts have increased. Bills payable and Borrowings from financial
institutions shows a decreasing trend.

4.1.2.2 Interpretation
Total non-markup/Interest expenses are on decreasing trend .it is because of the
decrease in administrative expenses. As a result, profit before taxation increased up to
2016, but decreased in 2017 and then a farther decrease in it. It is a result of pressure on
global economy in 2018. Due to this reason, the profit after taxation also decreased in
2018.

4.1.3 Ratio Analysis

A proportion is a quantitative connection between tow extents of a similar kind. In
proportion investigation, the budgetary proportions of the firm to identify significant
activity contrasts. Another famous technique for proportion examination is to contrast
the company's budgetary proportions with the business normal. There is no uncertainty
that money related proportions are a helpful guide for administrative basic leadership.
Tell us compute a portion of the key monetary proportions of the ABL for the year
2014-2018 and attempt to comprehend proportion examination. These proportions are
determined from the " Balance Sheet” " and Income statement of ABL 2014-2018.

31
4.1.4 Current Ratio
Current Ratio = Current Assets / Current Liabilities
Table 4.6 Current Ratio
Year 2014 2015 2016 2017 2018
Current Ratio 1.02 1.03 1.03 1.02 1.07
Source: ABL Annual Report 2018
Fig. No. 4.1 Current ratio 2014-2018

4.1.4.1 Interpretation
This ratio shows the relationship between current assets and current liabilities i.e. how
much of the current assets we have to offset a dollar current liability. The above graph
shows that the current ratio in 2014 was high but decreased in 2015 and 2016. Then it
increased in 2017 and 2018. It means that the liabilities of the bank are improved. This
comparison of the current ratio signifies a strong measure of short term debt paying
ability 2016 as compared to 2017 and 2018. At bank is at a strong position in 2018 to
satisfy its short term debts due to the increase in the investing activates.

32
4.1.5 Return On Equity (ROE)
RoE = Net income / Average Owner Equity
Table 4.7 Return on Equity
Year 2014 2015 2016 2017 2018
RoE Ratio 14% 18% 17.5% 14% 2%
Source: ABL Annual Report 2018

Fig. No. 4.2 RoE 2014-2018

4.1.5.1 Interpretation
The return on total equity measure the return to both common and preferred
stockholders. The ratio in 2014 is worse which was not good for the bank. The ratio
increased in 2015 and 2016 indicating the net profit margin trends and good
performance of the bank and efficiency, and then decline in 2017 and 2018
respectively. it means that the bank give large amount to its shareholders.

33
4.1.6 Return On Assets (ROA)
Return on assets = Net Income / Average Assets
Table 4.7 Return on Assets
Year 2014 2015 2016 2017 2018
RoA ratio 1.1% 1.5% 1.7% 1.2% 1.11%
Source: ABL Annual Report 2018
Fig. No. 4.3 EoA Ratio 2014-2018

4.1.6.1 Interpretation
The return on total equity measure the return to both common and preferred
stockholders. The ratio in 2014 is worse which was not good for the bank. The ratio
increased in 2015 and 2016 indicating the net profit margin trends and good
performance of the bank and efficiency, and then decline in 2017 and 2018
respectively. It means that the bank give large amount to its shareholders.

34
4.1.7 Investment/Deposit Ratio
Investment-deposits ratio = investment/ deposits × 100
Table 4.8 Investment/Deposit Ratio
Year 2014 2015 2016 2017 2018
Ratio 45.35% 27.68% 44.28% 31.80% 27.71%
Source: ABL Annual Report 2018
Fig. No. 4.4 Investment-deposits ratio 2014-2018:

4.1.7.1 Interpretation
Investment and deposit ratio shows either the organization is using the deposits
efficiently or not. The ratio is its highest point in 2014 as compared to other years
which means that the bank fully utilizes its deposits and invests large amounts of
deposits to generate revenues for its investors. It may be also because of the
privatization of the bank. The ratio decreases in next three years indicating that the
bank is not properly investing the deposits. In 2017, the bank management emphasis on
more investment activities then issuing advances.

35
CHAPTER 5

SWOT ANALYSIS

The SWOT examination is an extensive and basic outline of the tasks,

methodology, standards and guidelines, administrations and other related exercises, the
investigation incorporate the investigation of ABL Bank Road Mardan in the light of
the whole branch and Bank explicit factors which legitimately or by implication
influence the activities of the branch. The instrument chose for the investigation is
SWOT examination.

5.1 SWOT Analysis

SWOT investigation is represents Strengths, Weaknesses, Opportunity and

Threats. This is a cautious appraisal of an association's qualities to benefit an open door
by defeating its shortcomings and eliminating every one of the dangers to its survival so
as to develop and endure.

5.1.1 Strengths

1. Employees of the Bank are also owners of the Bank, means the interest of the
Bank is also the interest of the employees.
2. Due to the interrelatedness of the Bank and that of the employees, it is much
easier to motivate the employees and raise their spirits.
3. The branch is situated in the commercial hub of Peshawar. This location
provides a competitive edge to the Branch.
4. The Branch has the most experienced and the least experienced staff, which is a
good combination of experienced heads and high spirits of youth.
5. It holds the Hundi Accounts, where the payments are made through checks.
This process provides an opportunity to the Branch to have more of the Hundi
customers as the Bank customers.

36
5.1.2 Weaknesses

1. The Branch has experience staff mixes however their preparation abilities are
not up to the necessities of the quick changing financial condition.
2. Long term contacts are not kept up with clients so it is likewise a shortcoming
of ABL.
3. As the bank's workers are the proprietors of ABL, it is hard to expel them.
4. The specialized preparing of the staff is immaterial methods without the PCs.
5. There is no legitimate vehicle leaving territory for the client so it is additionally
a shortcoming of ABL.
6. The discretionary forces of trough are low to offer more motivating forces and
esteem added administrations to its clients.
7. The job distribution is not up to the mark.
8. The branches of Allied bank in Peshawar are closely located where most of the
services offered are not at all differentiated.

5.1.3 Opportunities

1. The greatest open door is the more prominent number of Hindi clients who get
their installments through ABL. These clients can be effectively persuaded to
open their records with ABL.
2. A significant part of the work power of the region is serving abroad. Their and
their families can be urged to utilize ABL channel for settlements.
3. The Internet office in territory gives a chance to Allied Bank Ltd to get Online.
The Bank has the basic infrastructure, which can facilitate the online process of
ABL.
4. The area of the branch itself gives a chance to get more and less cost stores.

5.1.4 Threats

1. The greatest danger to the operational accomplishment of the branch is the

37
 better contender's administrations. Numerous private part banks are putting
forth higher rates of come back to clients than ABL.
2. One of the biggest threats is the increasing rate of dissatisfies customers. Most
of these customers were observed to be dissatisfied with the delays in their
servicing.
3. The greatest threats to the performance of ABL, are the decreasing moral of
employees
4. The Allied Bank Ltd, Univeristy Town branch Peshawar bonuses are not
provided to his employees.
5. Allied Bank Ltd are not given proper attention to his employees in the annual
meetings.

38
CHAPTER 6

CONCLUSION AND RECOMMENDATIONS

6.1 Conclusion
It is presumed that ABL has performed better there other commercial banks amid study
period The fundamental reasons are because of the way that ABL has conger history
huge experience of and bigger speculation with in our of the century anyway it is
normal that other commercial banks may perform better then ABL within a reasonable
time-frame. At long last with the accessibility of more and subtleties money related
data in future a comparable report may produce better outcomes and bits of knowledge
settling on data in insightful choice.

6.2 Recommendations
1. Debt to Equity ratio in the above table has a positive increment amid the
previous year’s acknowledge 2012. So it implies that ABL have a great deal of
chances to put resources into the market which can prompt a much productive
arrangement of the bank.
2. Due to the precarious financial states of the nation and interest rate are not
steady which affect the advantage turnover ratio. This infers ABL isn't
successfully utilizing its advantages for create incomes.
3. Comparison between the debts and assets talk uproariously the necessities of
expanding its both present and long-term resources. In any case, it is developing
with moderate pace.
4. Due to the enhanced item and item advancements has appeared great effect on
the net revenue.
5. Investing is the primary capacity of a bank. ABL understanding the requirement
for enhanced venture portfolio has accomplished a decent outcome.
6. Equity is the stores of the bank which they use on account of crises or it can
make a chance or testing diverse items in the market. ABL has satisfactory

39
 supply of value which demonstrates positive patterns amid the multi year
investigation.
7. Stores are the backbone of the bank. Banks generally make the advances from
its stores. The rates demonstrate that ABL has a positive chart against its stores
so it implies that they have a decent or positive advances portfolio.
8. ABL after privatization is currently considering looking into every one of its
capacities and activities all through the association. So center around
Assets management
Investments
Foreign reserves
Tax efficiency
Handling its liquid securities
9. Due to the solid hang on the illegal tax avoidance, presently the general
population have begun utilizing banking channels for the settlements. So it is
found in these years that numerous banks have grown exceptionally productive
frameworks for store exchange far and wide. It is presently a developing pattern
and gaining a great deal of incomes on the administration charges.
10. Government surveys its financial and monetary policies every once in a while.
Banks are required to receive changes so that it whenever or point, it don't
concurs with every others which can leave an awful effect on the general
activity of the bank.
11. 24 hours money get to is a standout amongst the most imperative elements of
the bank nowadays. ABL is required to build no of its ATM round the nation to
encourage its clients in time.
12. Lastly task financing is the connection among improvement and incomes. Bank
should start and execute proficient strides to improve its generosity and
advancement in nation.

40
 BIBLIOGRAPHY

 ABL Annual Reports 2008-2012.

 Gibson H. Charles. (1999). "Financial Statement Analysis". USA: McGraw
Hills. Pp. 71-73.

 Gitman (1997) "Financial Management”, 9th Edition, Mcc Graw Hill publishers.
Pp.75-77.
 http//:www.able.com.pk.31.07.2012.

 McGraw Hill Gibson, Charles H, (2012), 7th. Ed., Financial Statement Analysis,
Prentice Hall International Corporation. Pp.57-59.

 Saeed. N. (2001) "Money & Banking”, 2nd Edition, Mcc Graw Hill publishers.
Pp.43-45.

41