Vision, Mission & Values

Vision

• To become a dynamic and efficient bank providing integrated solutions

In order to be the first choice bank for the customers.

Values

• Integrity
• Excellence in service
• High performance
• Innovation and growth

Mission

• To provide value added services to our customers

• To provide high tech innovative solutions to meet customers

requirements.

• To create sustainable value through growth, efficiency and diversity

for all stakeholders

• To provide a challenging work environment and reward dedicated

team members according to their abilities and performance

• To play a proactive role in contributing towards the society

History of Allied Bank of Pakistan
ABL was established in Lahore before independence in 1942 Allied Bank Limited
is one of the largest banks in Pakistan with more than 700 Branches connected
to an online network. In August 2004 the Bank was restructured and the
ownership was transferred to Ibrahim Group.

Overview
Allied Bank is the first Muslim bank to have been established on the territory that
became Pakistan. The bank has seen many phases of changes since it came
into being.

Established in December 1918 with the name “Australasia Bank” at Lahore with a
paid-up share capital of Rs. 0.12 million under the Chairmanship of Khawaja
Bashir Bux, the Bank had attracted deposits equivalent to Rs. 0.431 million in its
first eighteen months of business. Total assets then amounted to Rs. 0.572
million. Today Allied Bank's paid up Capital & Reserves amount to Rs. 10.5
billion, deposits exceed Rs. 143 billion and total assets equal Rs. 170 billion. The
Allied Bank's story is one of dedication, commitment to professionalism,
adaptation to changing environment resulting into all round growth and stability,
envied by many.

The Pre Freedom History

In the early 1940s the Muslim community was beginning to realize the need for
the active participation in the field of trade and industry. The Hindus had since
the late 1880s established a commanding presence in industry, trade and
commerce in the undivided Sub-continent. 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 a hard thing to swallow for Khawaka Bashir Bux to hear 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 December 1918; 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 of 30th
June 1947 capital increased to Rs. 0.673 million and deposits raised to Rs 7.728
million.

Australasia Bank

Australasia Bank was the only fully functional Muslim Bank on Pakistan territory
on August 14, 1947.It was severely hit by the riots in East Punjab. The bank was
identified with the Pakistan Movement. At the time of independence all the
branches in India, (Amritsar, Batala, Jalandhar, Ludhaina, Delhi and Agra) were
closed down. New Branches were opened in Karachi, Rawalpindi, Peshawar,
Sialkot, Sargodha, Jhang, Gujranwala and Kasur. Later its network spread to
Multan & Quetta. The Bank financed trade in cloth and food grains and thus
played an important role in maintaining consumer supplies during riot affected
early months of 1948. Despite the difficult conditions prevailing and the
substantial set back in the Bank’s business in India, Australasia Bank made a
profit of Rs 50,000 during 1947-48.

By the end of 1970 it had 101 branches. Unfortunately it lost 51 branches in the
separation of East Pakistan. The bank did well despite losing lot of its assets. By
the end of 1973 the bank had 186 branches in West Pakistan.

Allied Bank (1974 to 1991)

In 1974, the Board of Directors of Australasia Bank was dissolved and with the
union of Lahore Commercial Bank and Sarhad Bank it was renamed as Allied
Bank. The first year was highly successful one: profit exceeded the Rs 10 million
mark; deposits rose by over 50 percent and approached Rs 1460 million.
Investments rose by 72 percent and advances exceeded Rs 1080 million for the
first time in bank history. 116 new branches were opened during 1974 and the
Bank started participation in the spot 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 Rs 1.46 billion,
and Advances and investments from Rs 1.34 billion to Rs 22 billion during this
period. It also opened three branches in UK.

Allied Bank (1991 to 2004)

As a result of privatization in September 1991, Allied Bank entered in a new

phase of its history, as the world’s first bank to be owned and managed by its
employees. In 1993 the “First Allied Bank Modaraba (FABM)” was floated.

After privatization, Allied Bank registered an unprecedented growth to become

one of the premier financial institutions of Pakistan. Allied Bank’s capital and
reserves were Rs. 1.525 (Billion), assets amounted to Rs. 87.536 (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 reconstruction, the Bank’s ownership was
transferred to a consortium comprising Ibrahim Leasing Limited and Ibrahim
Group.

Today the Bank stands on a solid foundation of over 88 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 offers various technology-based products and
services to its diversified clientele through its network of more than 700
branches.
2005 to Onward

In May 2005 Ibrahim Leasing Limited (ILL) was amalgamated and vested in
Allied Bank Limited. ILL shareholders were issued ABL shares in lieu of the ILL
shares held by them. Application for the listing of ABL shares in all the Stock
Exchange Companies of Pakistan was made.

ABL was formally listed and trading of the shares of the Bank commenced
W.E.F. the following dates.

Islamabad Stock Exchange 8th August 2005

Lahore Stock Exchange 10th August 2005
Karachi, Stock Exchange 17th August 2005
Now all shareholders of Allied Bank Limited can trade in the shares of the Bank
at their free will.
 BOARD OF DIRECTORS

Mr. Mohammad Naeem Mukhtar

Chairman

Mr. Sheikh Mukhtar

Mr. Mohammad Waseem Mukhtar
Ahmed
Director
Director

Mr. Sheikh Jalees Ahmed Mrs. Nazrat Bashir

Director Government Nominee Director

Mr. Abdul Aziz Khan Mr. Farrakh Qayyum

Director Government Nominee Director

Mr. Khalid A. Sherwani

President & CEO
 Organizational Chart

CHAIRMAN

CHIEF EXECUTIVE OFFICER (CEO)/PRESIDENT

SENIOR EXECUTIVE VICE PRESIDENT (SEVP)

SENIOR VICE PRESIDENT (SVP)

EXECUTIVE VICE PRESIDENT (EVP)

ASSISTANT VICE PRESIDENT (AVP)

OFFICERS GROUP (OG1, OG2, OG3)

SUPPORTING STAFF
COMPETITIVE STRATEGY
Allied Bank strongly believes that the customers can be attained and retained
only by providing them the services they want. Allied bank’s competitive
strategies are focused on making their existing customers loyal because they
believe that it is their existing customers who attract new customers. Allied Bank
uses KYC (Know your customer) forms to have complete acquaintance with their
new customers.

TARGET MARKET

Allied Bank’s main focus is not on the retail banking but on the corporate banking
rather. In the retail banking they target salaried individuals, housewives, retired
individuals and anyone who has the potential of providing legal deposits to the
bank.

Corporate customers being the main target of the bank get handsome packages
of loan and other financial services. The bank’s main source of revenue earning
is also the corporate sector customers.

VARIETY in PRODUCTS
Allied bank has skillfully crafted their products to use them as their core
competencies and also as their tools for competitive strategy. The products
include Agricultural Finance, Import Export Business/Trade Finance, Running
Finance, and Demand Finance. These products serve multiple purposes to bank.

SERVICES as COMPETITIVE TOOLS

Same is the case with the services offered by Allied Bank. Services are the main
tool through which the bank acquires new customers and retain them. These
services are not merely ment to earn profit, but also to keep pace with the
changing needs of the customers and modern day’s banking trends. These
services include Home Remittances, Remittances, Hajj Services, Utility Bills,
Lockers and Commodity Operations. Along with these core services provided by
the bank, online banking and Internet banking serve as supplementary services.

These products and services are mainly directed towards customer satisfaction
and ABL uses it for the customer satisfaction as their competitive strategy. Some
of the many benefits availed by the customers are mentioned as follow in bank’s
own style.

ONLINE FACILITY

Now the bank gives you the absolute convenience of instant access to a host of
banking facilities and personalized services 24 hours a day, 7 days a week, 365
days a year.

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

ONLINE FEATURES

By Allied bank Online you can;

1 Check your account

balances
2 Transfer funds between your own accounts and to a third party
account
3 You can use your card for loan account payments
4 Check transaction history of your accounts
5 Get your account statement through fax
6 Receive information on various Allied bank products and services
7 Find out status of your card or loan application
8 Request balance or reference certificate
9 Get currency exchange rates
10 Issue stop payment instructions
 11 Report loss of your cheque book
12 Request change in address and telephone numbers

CONVENIENCE

Why visit the bank when you can better use your precious time to meet other
commitments? With ONLINE, our special discounted charges also offer you
substantial savings.

Give yourself the advantage of breakthrough innovation and cutting edge and get
time on your side.

TOLL FREE NUMBER

Connect to Allied bank ONLINE by dialing from anywhere within Pakistan. Your
call costs you nothing because it is toll free. This just goes to show that we at
Allied bank always put your interests first.

Dial now to discover just how Allied bank can make you’re banking experience
even more enjoyable and rewarding.

By offering all of the above ABL makes its way through the tough competition of
the day. This helps the bank to keep pace with growing needs of its customers
and anticipate their future needs and manage them accordingly in time thus to
make sure that the quality is not compromised and the customers get what they
want
Business Process Analysis
PRODUCTS OF Allied bank

Allied bank offers a wide range of products geared towards the customers. The
following products are available for customers:

• Rupees Deposit Accounts

• Foreign Currency Accounts
• Allied Cash+ Card
• Online Banking
• Internet Banking
• Credit Card
• Advances/Financing
• Services

 HUMAN RESOURCE MANAGEMENT

Management of people at work is very important in every organization,

because organizational goals and objectives are achieved by co-ordination of
people working in that organization.
 Human resources office of ABL is an important office of the entire
administrative setup. This office manages whole administrative matters relating
to personnel right from recruitment to selection, pay, promotion, etc. to retirement
matters.

The ABL doesn’t have its human resources department in every branch,
rather all its personnel activities, no matter how trivial they are controlled by
human resources department at Head Office, Karachi.

 CLASSIFICATION OF ABL:

The categories of services in ABL are classified as under:

 Category A
Chief Executive
President
Executive Vice President (EVP)
Senior Vice President (SVP)
Vice President (VP)
Assistant Vice President (AVP)

 Category B
Officer Range 6
Officer Range 5
Officer Range 4
Officer Range 3
Officer Range 2
Officer Range 1

 Category C

Clerical Staff
 Category D
Drivers
Guards
Chowkidars
Peons
Sweepers

 RECRUITMENT:

Recruitment is the process searching for prospective employees and

stimulating them to apply for jobs in the organization.

Human Resource Officer is responsible for the recruitment of personnel

for almost all the departments of ABL. When any department require personnel it
put, its demand before this office along with the job specification. Human
Resource Office first tries to locate the desired person from within the various
sections of the bank. If it fails to find a desired person than it hires from outside.
Appointment to different grades are prescribed by board of directors from time to
time selections are made on the basis of merit and merit is determined on the
following basis:

i. Educational qualification

ii. Professional qualification

iii. Place of resident location of branch where staff is required.

iv. Experience in banking.

v. Experience in the position and job description in the case of specialized

position.

vi. Past achievement in marketing.

vii. Marks obtained in the written test.

viii. Marks secured in final interview.

 SELECTION AND HIRING PROCESS:

After the applications have been received call letters are issued to the
candidates.
The various steps involved in the selection process are:

1. Preliminary interview.

2. Intelligence test.

3. Interview.

4. Investigation of background of the candidates.

5. Merit list.

6. Preliminary selection.

7. Approval by competent authority.

8. Physical examination.

9. Placement.

PROBATION AND CONFIRMATION:

An employee selected by the Bank may be placed on probation for a

period of six months or it may be extended if it so required usually for the officer’s
probation period is six months and for non-clerical staff it is three months.

On the satisfactory period or extended period of probation the employees

concerned may be confirmed in any grade.

 TRAINING:

After the employee has been recruited, selected and inducted they are
trained and developed to better fit the job in the organization. No one is perfect fit
at the time of hiring and some training an education must take place. Banking
industry is backbone of every economy; therefore the need of trained personnel
in this typical service industry is much more important. ABL has one training
institute in Lahore, suitable training method increase the quantum of learning
within a given period of time.

The bank provides on the job training facilities to employees through job
rotation to in different department as per requirement training more emphasis is
in practical.

There is a four months off the fob training at the ABL Training Academy
Lahore. Which is followed by four months on the job training.

 PROMOTION:

Promotion cannot be claimed as a matter of right as on the basis seniority

but on the basis of performance. Main criteria for promotion are the performance
and skills of the individuals though seniority is also taken into consideration but it
is of secondary importance. ABL has defined perfect career paths for its
employees and the staff gets promotion accordingly in their grades by way of
transferring from one position to the other. Normally employee is promoted to the
next grade after 3 years but promotion is totally based on 3 years performance of
the employee.

 SALARY ADIMINISTRATION:

One of the most difficult functions of personnel management is that of

determining those rates of monetary compensation. Not only is this one of the
most complex duties but it is one of the most significant to both the organization
and the employee. It is important to the organization because wages and salaries
often constitute the greatest single cost of doing business. Salary package
offered by ABL is quite attractive in the market.
 An employee draw the pay of the range to which he is appointed from the
date of appointment to such grade.

 PERFORMANCE APPRAISAL:

As the name indicates, performance appraisal is evaluating the

performance of the employees for given period of time. It is a systematic
evaluation of the individual with respect to his performance of employees as ABL
is appraised on the basis of Annual Confidential Reports. A Performa made by
head office is send to immediate superior for filling. There are three different
types of appraisal proformas used for evaluating the performance of an
employee in ABL:

1. Executive

2. Officers

3. Clerical Staff

Increments are decided on the basis of these appraisal reports according

to the performance role in the development and encouragement of the staff.

In ABL the performance of the employees are evaluating on the graphic or

linear method.

 TRANSFER:

ABL takes a lot of its employees so there are very few inter branch
transfer. Further different kinds of problems may crop up in transferring an
employee from one station to another station. Therefore transfers are rarely
made and are only on the managerial levels according to the requirements of
position. It may also be possible at the request of the employees.

 RETIREMENT:

An employee shall retire from service on attaining the age of sixty years,
provided that the board in a special cade may allow extension in its desecration.
At the time of retirement the worker are given their compensation on the form of
provident fund and gratuities.

 RESIGNATION:

An employee other than a probationary officer may resign from the

services of the bank after providing prior notice in writing or in lieu of notice pay
to the bank an amount equivalent to his substantive pay for the period of notice.

 TERMINATION OF SERVICES:

The bank may terminate the service of any employee or call upon him to
resign from the service of the bank. In either case he will be entitled no notice in
writing. Salary in lieu is given for the period as under:

90 days notice Category A to Category D for confirmed employees.

30 days notice Employees on Probation.

 DISCHARGE:

When an employee in the opinion of the management is incapable or has

ceased to be capable by reasons of infirmity of mind or body.

The competent authority may discharge him on medical ground and pay
him such compensation as may be decided by the board.

 DISCIPLINARY RULES:

It is a force that prompts individuals or group to observe rules regulation

and procedure, which are deemed to be necessary for the effective function of
the organization. Discipline; in ordinary conduct of affairs by the members
maintain harmony and peace in organization willingly.

1. Observance of rules.

2. Maintenance of secrecy.
3. Absence from duty.

4. Misconduct

5. Direct representation to director

6. Disobedience with any lawful and reasonable order of the supervisor i.e.
transfers.

7. Fraud and forgeries.

8. Damage or loss (bank property).

9. Sleeping while on duty.

10. Collection of money with in the office premises for any purpose not
approved by bank.

11. Striking.

12. Unauthorized use of bank property.

Any violation in these disciplinary rules result in different types of penalties

given below.

 PENALTIES:

An employee found guilty under any rule or any offense of misconduct is

liable to one or more of the following penalties.

1. Reprimand.

2. With holding for a specified period confirmation on promotion or increment.

3. Recovery form salary of the whole or part of any particular loss caused to the
bank by the employee.

4. Demotion to any lower grade.

5. Removal from services.

6. Termination by way of punishment.

7. Dismissal from services

8. Compulsory retirement from the service with or without retirement benefits.

 APPEAL

An employee who has been awarded penalty shall have right to appeal
before the competent authority.

 LEAVE

At ABL., following types of leave are granted to employee.

♦ SICK LEAVE

The annual entitlement is 30-calendar day’s sick leave. In the event of

prolonged illness the competent authority may sanction further sick leave up to a
period, not one ending the period of leave that has been lapsed.

♦ EARNED LEAVE

This leave is over 45 days in a calendar year. Maximum period of earned

leave, which can be taken at one time by an employee, is 60 days. Under special
circumstances at the discretion of chief executive.

EXTRA ORDINARY LEAVE

Extra ordinary leave can only be granted to an employee when no other

leave is available to him. An unauthorized leave at the discretion of the
competent authority is treated as extra ordinary leave. No pay allowance or any
other benefits or increments are given.

♦ MATERNITY LEAVE

Female staff is entitled to maternity leave for period not exceeding six
weeks. Time interval between first leave and last leave should not be less than
two months.
 ALLOWANCES.

The Grant of special pay or allowance to the holder of any post or to any
other employee shall require the sanction to the competent authority kinds of
allowances for employees at ABL are:
House rent allowance
Technical allowance
Utility allowance
Washing allowing (non-clerical staff)

 FRINGE BENEFITS
Medical facility
Facilities at residence
Leaves fare assistance
Grants of incentives for improving qualification every year
Increment (annual increase in the basic pay)
Cash prizes

 COMPENSATION

Allied Bank Limited offers three types of compensation to it’s workers.

PROVIDENT FUNDS

♦ Employees Insurance Scheme1

♦ Gratuity

PROVIDENT FUNDS
Provident fund scheme is funded by equal contribution from both employer
and employee at the rate of 8.50% of basic salary is deducted every month from
the salary of employee and is doubled by Bank. It is payable after retirement of
the employee.

♦ EMPLOYEE INSURANCE SCHEME

1
After confirmation ABL is given life insurance. The amount of insurance is
equivalent to 48 basic salaries of the employee. In this way, the worker feels
more secure and satisfied while working as ABL employee.

♦ GRATUITY

Employees who have completed 5 years of service are entitled to Gratuity after
retirement. Bank compensates the employees on the basis of one basic salary
for every completed year 10.