History Allied Bank Limited

1 history

1.1 pre-independence period (1942-47)
1.2 australasia bank in private sector (1947-74)
1.3 allied bank: public sector years (1974-91)
1.4 privatization (1991-2004)
1.5 new beginning (2005-to-date)

history

abl first muslim bank established on territory later on became pakistan. established on december 3, 1942 australasia bank @ lahore capital of 0.12 million. @ time chairman kh. bashir baksh. abl’s story 1 of dedication, commitment professionalism , adaptation changing environmental changes.

the bank s history divided many phases. during 25 years of united pakistan bank advanced forward in areas of activities. 1970’s difficult decade banks of pakistan. in 1971 east pakistan separated , australasia bank lost 50 branches , lot of capital well. nevertheless, growth remained steady.

in 1974 banks nationalized including australasia bank. small provincial banks merged australasia bank. on 1 july 1974 new entity renamed abl of pakistan limited. started operations public sector financial institution.

different phases of bank follows:

the pre-independence period (1942-47)

australasia bank had unique distinction of being closely identified of country’s prominent leaders of freedom moment. such mian mumtaz daultana (board of directors), mian iftikhar hussain , maulana zafar ali khan.

the bank started operation in garage of khawaja bashir baksh’s bungalow (who chairman) near lahore railway station. success of bank enforced directors open branch in anarkali on 1 march 1944. kh. bashir first chief executive. person working in development. sincerity of purpose can judged great moments.

another branch opened @ amaratsar in 1945. in june 1946, bank earned status of scheduled bank. during 1946-47 many other branches opened @ mcleod road lahore, jallandhar, ludhiana, agra , delhi.

at independence industrial , commercial sectors underdeveloped abl contributed lot in development of these sectors.

australasia bank in private sector (1947-74)

it full functional muslim bank on land of pakistan. on august 14, 1947 bank identified pakistan movement. many of board of directors prominent muslim league leaders. jallandhar , ludhiana branches attacked rioters because of muslim staff appointed in these branches of bank. when pakistan flags wee hoisted on branches banks in india closed down. this, bank lost lot of capital , deposits , 6 branches. during 1948 new branches opened @ karachi, rawalpindi, peshawar, sialkot, sargodha, jhang, gujranwala , kasur. later on branches spread multan , quetta. @ time, bank financed trade in cloth , food grains , maintained consumer’s supplies during riot effected months of 1948. australasia bank made profit of

50,000/= in 1947-48.

in august 1948, australasia bank became first pakistani bank negotiate , open l/c sialkot-based importer of books. made correspondence relations midland (uk), chase manhattan (usa) , lloyds (india).

during treasury functions of federal govt. of pakistan , acted banker several local govt. bodies , punjab university during period. treasury functions taken national bank of pakistan in 1949. in 1950-51, chairman replaced own brother kh. sharif baksh.

during 1955-56, mr. naseer a. sh. became chairman of board , close working relationship forged between new chairman , managing director. partnership proved in modernizing operations , consolidating financial position.

in 1963, bank had 29 branches in various cities. , deposits 89 million , advances 66 million. bank concerned general banking , trade financing (including foreign exchange transactions). helped lot in development of small , medium-sized business houses. these nishat, crescent, pak cement, haroon traders, takht bhai sugar, insaf, punjab soap, pak fruit , saboor oil mills etc.

in 1964, 13 new branches opened including 3 in east pakistan. in 1965, 17 new branches opened , on 83% of gross profit year earmarked development expenditure in connection opening of new branches.

in 1966 bank opened 26 new branches , doubled reserved funds. first time in history, advances increased rs. 160 million , deposits raised 58% exceeding rs. 232 million mark. in 1966, central office built in karachi head office remaining @ shah chiragh building, lahore.

16 new branches opened in 1967 , 20 in 1968. respectively funds increased gradually. 21 new branches opened in 1971. separation time 51 branches lost bank big loss.

allied bank: public sector years (1974-91)

under nationalization act of 1974, 14 scheduled banks taken on government. australasia bank’s board of directors dissolved , bank renamed allied bank of pakistan limited. sarhad bank, lahore commercial bank , pakistan bank limited merged australasia bank. @ time of merge, abl second highest among banks nationalized in 1974.

allied bank’s first executive board constituted of mr. iqbal a. rizvi president, mr. ajmal khalil joint president , mr. khadim hussain siddique member. in 1974 mr. i.d. junejo , mr. safdar abbas zaidi joined board later. 116 new branches opened in 1974 , started participation in commodity operation program of government.

in 1970’s bank played important part of agricultural area loans , other loans. in 1976 mr. ajmal replaced mr. rizvi chief executive , president. during 1974-77, 361 new branches opened , 230 of these located in villages , small towns. opened foreign branch in london, near bank of england. in 1980 bank of england granted allied bank recognition full fledge bank under u.k. banking act.

in 1981, president changed. in 1984, again new president come know. tries increase international business. initiated major counter program. in 1985, mainframe computer installed , effective management system developed. during period profitability increased. new president mr. maqbool introduced different schemes in 1987-88. in 1989, new 13 branches installed.

over 1991, 745 branches there in on pakistan.

privatization (1991-2004)

in november/ december 1990, government announced commitments rapid privatization of banking sector. allied bank’s management under leadership of mr. khalid latif decided react positively challenge. result of privatization in september 1991, allied bank entered in new phase of history, world’s first bank owned , managed employees.

allied bank’s capital , reserves rs.1.525 (billion) , assets amounted rs. 87.536 (billion) , deposits rs. 76.038(billion). bank enjoyed enviable position in financial sector of pakistan , recognized 1 of best amongst major banks of country. in august 2004 result of capital reconstruction, bank’s ownership transferred consortium comprising ibrahim leasing limited , ibrahim group.

a new beginning (2005-to-date)

in may 2005 ibrahim leasing limited amalgamated transfer , vested in , allied bank limited. ill shareholders issued abl shares in lieu of ill shares held them.