Project of

Hassan Ashraf 08108031

Muhammad Atif 08108032
Usman Raza 08108030
Kamran Ashraf 08108039
Salman Nasir 08108006
Rashid Rafique 08108047

Money, Banking & Finance Course Code

Submitted to;
Mr, Nadeem Altaf Nasir

Contents
EXECUTIVE SUMMARY
 Acknowledgment

“To Him belongs the dimension of the Heavens and the Earth, it is He who
gives life and death and He has power over all things.”
(Al-Quran)

All acclamations are to Allah, the most Merciful and Compassionate, who has
empowered and enabled me to accomplish this task successfully.

After that I submit my earnest thank to my affectionate parents, who pray for my
success and always been a source of encouragement for me. Secondly, I am grateful
to my prestigious institute that made this learning opportunity a part of my
education, especially I would like to thank my Professors as the knowledge
imparted by them enable me to gain knowledge and learning exposure of the
organization in the best way.

Also I express my appreciation to all staff members of Allied Bank of Pakistan who
are very cooperative guided us a lot and also I express my greatest gratitude
to my kindhearted supervisor Mr. Nadeem Altaf Nasir of Money banking and
finance.
 Introduction of ABL (LTD)
Allied Bank was the first Muslim bank that has been established in Pakistan in December
1942 as the Australasia Bank in Lahore with a paid-up share capital of Rs. 0.12 million
under the Chairmanship of Khawaja Bashir Bux, the Bank attracted deposits equivalent to
Rs. 0.431 million in its first eighteen months of business.

At the time, the Bank’s total assets amounted to Rs. 0.572 million. Today, Allied Bank's
paid up Capital & Reserves amount to Rs. 10.5 billion, deposits exceed Rs. 143 billion
and total assets equal Rs. 170 billion.
The Bank’s journey has been about dedication, commitment,
professionalism and adapting to environmental changes,
leading to its immense growth and stability.

A view of Khawaja Bashir Bux's Residence that was the first

branch of Australasia Bank came into existence. It is these
factors that have made it a Bank the rest look up to.

Today, all Allied Bank Limited shareholders can trade in the Bank’s shares at their will

and the Bank stands on a solid foundation of over 63 years of its existence having a strong

equity, assets and deposits base offering universal banking services with higher

focus on retail banking.

 Introduction of UBL

UBL Priority Banking

Concept

Signature, UBL’s Priority Banking service, is born out of the desire of customers’ today for a
comfortable and personalized environment to discuss an array of financial services, whether of a
business or personal nature. It suits clients who come from varied backgrounds and have different
lifestyles and career aspirations. What unites them is a common desire for success and efficient
management of their finances and personal wealth.

UBL has recognized this gap and decided to offer a unique form of preferred banking. Launched as an
independent brand, Signature offers focused and personalized wealth management services for
selected, high net-worth individuals in a completely secure and congenial atmosphere.

Ambiance

All Signature Lounges present a richly modern ambiance, wrapped in UBL's warm and hospitable
culture as well as its progressive global outlook.

Every Signature lounge is securely housed in an independent section of an existing UBL branch and has
a separate entrance. The facade, branding and colors heighten this distinction and add elegance to the
lounge. The lounge is available exclusively to Signature Customers. With internet access, a selection of
general interest and financial publications and complete audio and video entertainment, these lounges
are designed to provide relaxation to our customers, even while they wait to meet their dedicated
Relationship Manager. Refreshments, hot and cold, are at hand for them to savor as they experience
UBL Signature Priority Banking.

Private meeting rooms equipped with standard business facilities such as phone, fax, internet service
and photocopier are available to facilitate and expedite any work requirement.
 Products
In line with the Bank’s aim to provide a host of products and services to its
customers, substantial ground work has been done to establish a strong consumer
banking business. Furthermore, to achieve this objective, professionals from across
the industry have been recruited into areas of product development, sales, credit
policy, research, consumer analytics, call centers and service quality departments.

Phone Banking:
Allied Bank is focused on delivering exceptional services to its customers that would
strengthen the relationship and build Loyalty. To make banking experience quick, efficient,
secure and easy, Allied Bank of Pakistan now offer its customers
24/7 Phone Banking Services.

Allied Phone Banking provides its customers immense comfort!

In addition, Allied customers can also avail a host of services through automated
Allied Phone Banking (IVR/Self Service Banking) that lets them use their telephone
keypad to inquire about their financial balance/transactions.

Allied Phone Banking Services:

Dial - 0800-22522 to get absolute Banking freedom

Branch Banking:

1. Inquiry

 A/C balance
 Statement details
 Product information

2. Transactions

 Cheque book request

 TPIN issuance & re-issuance
 ATM PIN issuance & re-issuance
 PO/DD & Bank certificate
 Funds transfer
 Offered Services of UBL    

   
Account Opening — immediate and hassle-free account opening.

Lockers — Free of charge.

Financial Services — Complete range of banking products as well as Islamic

Banking (UBL Ameen), Insurance (UBL Insurers) and Fund Management Services
(UBL Fund Managers) (to be added later).

Bancassurance — Teaming up with a life insurance company to provide a

comprehensive portfolio of investment products.

Faster TATs — Fast track processing of all consumer product applications.

Travel Advisory — In collaboration with travel agencies of repute.

Net Banking — An Internet banking portal offering a simple, convenient and secure
method of accessing bank accounts on the Internet.

UBL e-statements — Which makes it easier for the Signature Customer to get their
statement of accounts and automated transactional debit/ credit alerts right into their
inbox.

Internet Access Zone — Utilize the convenient Internet Access Zone where the
customer can check their email, surf the web or transact through Internet Banking for
their banking and investment requirements.

Free Transfers — to bank accounts.

Online Branches — United Bank Limited is one the largest private bank in Pakistan
with an expanding Branch Network of more than 1100 Branches with almost 900
online branches.

Free SMS Banking — SMS alerts to keep you updated.

Consolidated Monthly Account Statement — will be provided to the Signature

Priority Customer on request.

ATM’s — there are more than 380 Onsite & Offsite ATMs that are strategically
located across the country for our customers’ convenience. PB customers will also
have access to CCDM machines, helping them to deposit money when branch
operations are off.

UBL Ameeen Islamic Banking — A wide range of Shariah compliant financial

products and services are also available to Signature Customers in the area of Retail,
Consumer, Corporate Banking and Trade Services in addition to e-banking, Visa
Debit Card and Online Banking through more than 900 Online UBL branches across
Pakistan, under the brand name of UBL Ameen

UBL Fund Managers — Wealth Management facilities are available for Signature
Customers in shape of Customized Portfolio Management, Liquidity Management,
Capital Appreciation, Investment Options and Islamic Funds managed by your
personal Relationship Manager.

UBL Insurers — The Products offered to its Signature customers includes Personal
Accident coverage which covers Death and Disability caused by an accident, Home
Insurance cover for buildings & contents and a Comprehensive Motor Insurance.
VARIOUS BANK DEPARTMENTS:
Allied Bank of Pakistan distributed its functions into various groups these are as follows:

Audit & Inspection Group:

Vision:

To transform internal audit function of Allied Bank Limited in to an IT enabled risk based
audit and management consultancy function providing value added services and management
consultancy to the board and senior management.

Mission:

Our mission is to provide an independent, objective assurance and consulting services

to management designed to add value and improve operations of the bank, dedicated
to providing assistance to the management in effectively and efficiently accomplishing
its objectives by bringing a systematic, disciplined approach to evaluate and improve
the effectiveness of risk management, control, and governance processes.

Terms of Reference:
One of the prime responsibilities is the satisfactory implementation of the internal
control over financial reporting. The committee also determines appropriate measures to
safeguard bank’s assets, ensures consistency of accounting policies, reviews financial
statements and recommends appointment of and coordinates with external auditors.

The committee is also responsible to ascertain the internal control system including financial
and operational controls, ensuring adequate and effective accounting and reporting structure,
determining and monitoring compliance with the best practices of the corporate governance.

Implementation of the management testing plan, assessing the testing results and
advising appropriate corrective action is also a major responsibility of Audit Committee.
 Risk Management Group:

Goals:

The goals of RMG are to understand the risk profile of each business area, to propose risk
policies, risk measurement methodologies, and risk limits in order to aggregate and control
credit, market and operational risks across the Bank. In pursuance of these goals, RMG has
taken up the challenge of building an effective Risk Architecture.

Terms of Reference:
The primary functions of Risk Management Committee (RMC) is the monitoring
of management’s adherence to prudent and sound risk policies, assessing the ever changing
risk profile and providing risk appetite to the business units.

It also ensures development of risk management principles to build stakeholders confidence,

safeguard and enhance reputation. The committee approves risk limits for Credit, market and
operational risks, Credit approval grid and proposals regarding rescheduling/write-offs
and filling of recovery suits. Overseeing of certain management committees and groups
is also undertaken by the RMC.

The Committee also monitors the initiatives and expenses pertaining to Basel II and
up gradation of Risk Management Systems.

Structure of RMG:

Risk management functions have been segregated by business specialization i.e. Credit Risk,
Operational Risk, Market Risk, Credit Administration, Risk Architecture and Risk Analytics.
Risk Analytics:
Risk Analytics is an integral part of the credit process. The objective of Risk Analytics is to
limit portfolio concentrations, reduce volatility, achieve optimum earnings and create
shareholder value. It also incorporates portfolio strategy and planning. The Risk Analytics is
a relatively new concept in Pakistan, and the function at ABL has started managing portfolio
risk through launch and usage of risk rating model, design and launch of a new Credit
Application Package, that ensures a risk-based approach to credit presentations and allows
pursuing systematic data gathering with a view to migrating to advanced approaches.
Credit Administration:

Credit Administration’s role is to minimize losses that could arise due to security and
documentation deficiencies. The Credit Administration unit constantly monitors the security
and documentation risks inherent in the exiting credit portfolio. This function operates
through eight regional departments located all over the country.
All these functions are operating in tandem to improve and maintain the health of the lending
portfolio and keeping aggregate risk within the Bank’s overall risk taking capacity. Credit
Risk:
Credit Risk Management at ABL is divided in to two branches;
1. Corporate & Financial Institutions Risk
2. Commercial & Retail Risk

This function ensures that the risk exposures undertaken match the risk appetite of the Bank,
and that proper credit approval procedure are adhered to. Identification and Monitoring of
problematic exposures and to take proactive measures to minimize the financial loss to the
bank is also a responsibility of this function.
Market Risk:
Market Risk is defined as any fluctuation in value of the portfolio resulting from changes in
market price and market parameters, such as interest rates, exchange rates and share prices.
The Bank intends to build an effective Market Risk Management unit to independently
identify measure, monitor and control the potential losses that may arise from the Bank’s
activities in financial market.
Operational Risk:
It includes risks that primarily arise from internal processes of the Bank. Operational Risk
Management unit is developing an effective system for identification of critical risk areas,
and developing processes/controls to mitigate these risks.
SWOT Analysis
 Strengths

1. Brand name: earned a reputation for extending quality services.

2. Allied Bank Limited was the first Muslim bank to be established in Pakistan.
3. Allied Bank Limited proudly extends its ovation over the nationwide or
internationally by opening new and more branches to facilitate the customers
and having more than 850 branches in Pakistan.
4. Allied Bank has become the first bank to participate in the Sustainability Finance
Facility of the IFC’s Global Trade Finance Programme. IFC is a member of the
World Bank Group.
5. The bank is passionate about high performance, innovation and delivering value to
its customers.
6. With a vision to make ABL one of the most technologically advanced organization
in the country with ability to provide real time services to its client the BOD
embarked to implement state of the art Core Banking Solution TEMENOS at ABL,
that is working in more than 500 locations worldwide.
7. ABL has opened the Management Development Center MDC that caters to the
growing needs of ABL staff through computerized training workshops and
seminars.
8. Training needs analysis to be conducted on annual bases to identify training gaps.
9. ABL has the large network of ATM throughout the nation.
10. ABL do the time to time monitoring over its different wings and groups to
increase efficiency.
11. The Bank has the most experienced and the least experienced staff, which is a
good combination of experienced heads and exuberance of youth.
12. Successfully launching new Product Lines.
13. With the objective of achieving decentralization and cutting down expenses, the
decision making has been reduced from two to four tiers. 68 controlling offices,
comprising of 4 provincial, 18 circle and 46 zonal offices have been consolidated
into
16 regional offices.
14. A centralized Special Asset Management Division has been established
for expeditious recovery and settlement of non-performing loans.
15. ABL offers the privilege of using thousands of ATMs of all banks without the
extra charge of Rs 15 to its customers.
16. At ABL the customers who have more than one account can have the facility of
the same account number only the suffix is changed for the easy remembrance.
17. For employees entertainment and relaxation, ABL gives the facility that the
employees may get the 36 medical leaves and 1-month vacation in one year with
their pay.
 Weaknesses:

1. ABL did not introduce any Islamic product.

2. The controls of Heads are not effective.
3. In spite of the presence of technology many jobs are done manually.
4. ABL is not enhancing the new obligors.
5. Fewer incentives in back office as compared to the branches.
6. ABL credit group do not sanction the loan to the lawyers, politicians and the
female having no blood relative.
7. In back offices the employees are less so it creates more work burden on the
existing one.

Opportunities:

1. The policies of the new government to uplift the economy and pursue financial
sector reforms are expected to yield positive results in the banking industry of the
country. The ABL is well praised to avail promising opportunities.
2. As a result of different steps taken by the government regarding the betterment of
the economy, small borrowers are attracted to get the financing and start business.
So, the ABL has an opportunity to attract the customers by giving them more
attracted schemes.
3. They have wide area network in all over the Pakistan, if ABL can made it possible
the fast delivery of funds from abroad through online banking, it can cover the
major market of Pakistan which still is capturing by “Hundi”.

Threats:

1. The biggest threat in the banking sector is the continuous downfall of the
country economy since the last few years.
2. Other treat which ABL faces is the policies of the Government; tax charged on
the income of banking co. is much than the income of other companies.
3. 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.
4. As the situation of Frontier Province of Pakistan is not sound and ratio of
dacoity cases in branches is high so it is the big threat to the Bank.
5. The default ratio of customers who are availing the credit facilities from the ABL
is very high due to the economic recession in Pakistan.
6. Also the threat of new entrants exists there.
 Structure of the Project

Purpose
It shall tell the reader what you will do. E.g. “The aim of this study is to
analyze the core activities of the main bank and its comparison with other
bank with respect to products or services they are offering. Their marketing
strategies and success stories if any.
Method
You can use two types of data for gathering information.
i) Primary data
ii) Secondary data
. Analysis of Banks
• Detail of different department in the selected banks.
• Range of products offered by all two bank department wise.
• Comparison with respect to products and the rates they are
offering.
• Success story if any
• Marketing strategy
• SWOT analysis
• Key competitive advantage of main bank over other
• Current problems and Future prospects
A short note on survival of banks in current financial crunch.
9. Conclusions
10. Recommendations
11. Bibliog