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Transcript of final Report
Executive Summary
Bank Alfalah was incorporated in 1997 and was privatized by the Government of
Pakistan. The Abu Dhabi Group bought the majority shares of the bank and so
got the rights to control the bank’s operations. Since the privatization of the bank,
Bank Alfalah has implement different policies to make it one of the best banks of
Pakistan, which included introducing new products and services and increase its
operations by opening new branches in Pakistan. Bank Alfalah is dealing in
Foreign Currency Accounts, Foreign Remittances and Foreign Bills for
Collection, imports and Export. But the Branch in which I worked it deals in
Pakistani rupee transaction in foreign currency was not the practice of this
branch. I did my 8 weeks internship at Bank Alfalah Islamic Banking Group,
Kotabdul Malik Branch. This branch is established in 2008 and major in
Operations. I worked there in Account opening department and remittances
department. I also Spent some of my time at Clearing Department and
understood the procedure of Islamic Banking. The over all experience at the
bank was good. Infact the maximum Customer of the branch were Individuals
and businesses entities. Most of the businesses have their Salary accounts and
saving accounts there. As the branch has been established in an Industrial Area
so many of the Employer Companies are enjoying the services of the bank.
During my internship Program, I found that due to the effective customer service
and proper Guidance the number of customer are increasing day by day. The
competitors of BAFL are also in aggressive position. The Economic and Political
conditions of the country are very disturbing; the high inflation and law and order
situation affects every business including Alfalah. Bank Alfalah has seen a rapid
growth in its activities by introducing a range of products and services and
showing its presence in the country by opening new branches and in future
should keep this momentum and always strive to become the best.
THE CARING BANK Page 1
Company Background
Bank Alfalah Limited (“BAL”) is a private bank in Pakistan owned by the Abu
Dhabi Group. Bank Alfalah was incorporated on June 21, 1997 as a public limited
company under the Companies Ordinance 1984. Bank Alfalah is registered at
both Karachi and Lahore Stock Exchange with a ticker name of “BAFL”. Its
banking operations commenced from November 1, 1997. The bank is engaged in
commercial banking and related services as defined in the Banking companies
ordinance, 1962, with the registered office at B.A.Building, I.I.Chundrigar Road,
Karachi.
Since its inception, as the new identity of H.C.E.B (Habib Credit and Exchange
Bank Limited) after the privatization in 1997, the management of the bank started
implementing strategies and policies to carve a distinct position for the bank in
the market place.
This was further strengthened with a partnership with the Abu Dhabi Group which
owns 70% of Bank Alfalah shares. This allowed the bank to invest more in
revolutionary technology to increase its range of products and services,
perceiving the requirements of their customers and matching them with quality
products and service solutions.
Bank Alfalah has gone through different phases over the years. Its name and
been changed in the following sequence.
Bank of Credit and Commerce and International (BCCI)—1972
Habib Credit and Exchange Bank—1992
Bank Alfalah—1997
Bank of Credit & Commerce International (BCCI) was a Pakistan based bank,
established by Mr. Agha Hassan Abdi from UBL, in association with U.A.E and
Europe. BCCI has its branches in 74 different countries of the world. It had its 3
branches in Pakistan, Karachi, Lahore and Rawalpindi.
THE CARING BANK Page 2
The Lahore branch was opened on 15th December1978. This branch was
opened at that time when some other international banks like Citi Bank, Bank of
America, and American Express etc. were already working.
But within a few years this branch crossed mostly all the other banks in case of
deposits, advances, imports and exports dealings, guarantees, traveler‘s cheque
sales etc. In 1991, the BCCI was banned, when it was accused by European
countries that the bank was involved in some illegal operations with Gulf
countries. The major reason behind European accusation was that BCCI was of
Islamic mode. Therefore, the bank was closed due to international pressure.
In July 1991, the branches of BCCI in Pakistan at that time were taken over by
The Ministry of Finance and SBP. All three branches were given under Habib
Bank Limited.
After valuation of its assets for 15 million dollars, which were named as Habib
Credit and Exchange Bank (HCEB) and these were working as subsidiary of
Habib Bank Limited.
Following the privatization in 1997, Habib credit and Exchange Bank assumed
the new identity of Bank Alfalah on June 21st, 1997 as a public limited company
under the Companies Ordinance 1984. Its banking operations commenced from
November 1st, 1997. The bank is engaged in commercial banking and related
services as defined in the Banking companies ordinance, 1962.
The bank is currently operating through 282 branches. This includes 48 Islamic
banking branches and 7 foreign branches in Bangladesh, two in Afghanistan and
one offshore banking unit in Bahrain with the registered office at B.A.Building,
I.I.Chundrigar, Karachi. The bank is listed on the Karachi and Lahore Stock
Exchange with a ticker name of “BAL”.
PACRA, a premier rating agency of the country, has rated the bank
For long term „ AA‟ (double A)
For short term A1+ (A one plus)
THE CARING BANK Page 3
Introduction
Central Background Information
Banking is one of the most sensitive businesses all over the world. Banks play an
important role in the economy and are considered as the backbone of an
economy in every country and Pakistan is no exemption. Banks are custodian to
the assets of the general masses. The banking sector plays a significant role in a
contemporary world of money and economy. It influences and facilitates many
different but integrated economic activities like resources mobilization, poverty
elimination, production and distribution of public finance.
Pakistan has a well-developed banking system, which consists of a wide variety
of institutions ranging from a central bank to commercial banks and to
specialized agencies to cater for special requirements of specific sectors. The
country started without any worthwhile banking network in 1947 but witnessed
phenomenal growth in decades to come. By 1970, it had acquired a flourishing
banking sector. Nationalization of banks in the seventies was a major upset to
domestic banking industry of
the country, which changed the whole complexion of the banking industry. With
irrational decision at the top, all the commercial banks were made subservient to
the political leadership and the bureaucracy. The commercial banks thus lost
their assets management equilibrium, initiative and growth momentum. They
ceased to be a business concern and became big bureaucracies.
Today, the banking sector is providing financial solutions to the masses
and is growing and becoming a solid partner in the development of the
Pakistani economy, this growth potential has seen different acquisitions in
the banking sector, with the Standard Chartered and Union Bank being the
most prominent.
THE CARING BANK Page 4
Islamic Banking
History
The history of Islamic banking from its recorded inception is less than 40 years
old. From a humble beginning in a small village in Egypt in the late 60’s, it has
spread to the four corners of the world. By normal standards in a time span that
is less than half a century it could have hardly been expected to establish
foothold in Muslim world, let alone make its presence felt in Muslim-minority
countries. Yet such has been its phenomenal rate of growth that not only is it
taking firm roots in its homestead, but is also attracting genuine interest among
the standard bearers of conventional banking and in swathes of land where
Muslims are a small minority only.
Still there is much ground left to cover. In Pakistan, Islamic Banking is less than
3% of the Banking sector. Even in the Gulf states, where it has a larger footprint,
in no single country is the volume of Islamic banking more than a third of the
entire sector.
Many blame Islamic Banking small share against conventional banking to a
smaller portfolio of products. A standard complaint against Islamic banks is that
they do not have the same variety of financial instruments as found in
conventional banking. Though valid to an extent, this popular jeremiad needs to
be seen in the perspective of Islamic Banking brief history against more than two
centuries of conventional banking adopted in full force across the globe, its
competition against an entrenched system of banking and the constraints within
which it must operate.
Notwithstanding, Islamic banking is still growing at more than twice the growth
rate of conventional banking worldwide, and while it may not have the latter’s
plethora of financial products, its repertoire of Islamic financial products is
steadily increasing.
THE CARING BANK Page 5
Riba
It has been argued in vain for long in some circles that the prohibition in Islam is
that of excessive interest only. Or that it is the interest on consumptive loans that
has been forbidden and as
such loans extended for commercial purposes are entitled to an excess over the
principal amount lent. Such tendentious arguing fails to give due understanding
to verses 278 and 279 of Surah Al-Baqarah (quoted below).
“O ye who believe! Be afraid of Allah and give up what remains (due to you)
from Riba (usury) (from now onwards) if you are (really) believers! 2:278
And if you do not do it, take notice of war from Allah and His Messenger!
But if you repent, you shall have your capital sums 2:279
However, this does not mean that Islam prohibits any gain on principal sums. In
Islam, profit is the recognized reward for capital. When capital employed in
permissible business yields profit that “excess over capital” becomes the rightful
and just claim of the owner of the capital. As a corollary, the risk of loss also rests
exclusively with the capital and no other factor of production is expected to incur
it.
Basic Islamic Instrument
Musharakah
Musharakah is one of the two ideal modes of Islamic financing. The other one
being Mudarabah. Musharakah is a contractual relationship formed through
mutual consent of the parties for sharing of profits and losses in a joint venture.
THE CARING BANK Page 6
Mudarabah
Like Musharakah, Mudarabah is also a form of partnership. Whereas all partners
in Musharakah contribute capital, under Mudarabah partnership is formed
between provider of capital and provider of expertise or human resource.
Proportions for sharing profit are decided upfront. Losses are incurred solely by
the partner contributing capital.
Murabaha
Murabaha is a non-participatory mode of Islamic financing where the bank sells
the asset required by its client to the client on cost-plus basis. The asset is first
purchased by the bank and the bank incurs
he risk of any loss or damage to the asset as long as the asset remains under its
ownership.
Ijarah
Under this facility a client may take on rent, property, vehicle or any other real
asset belonging to the bank. The bank transfers the right of use of the asset to
the client, while retaining the ownership of the asset. The client pays periodic rent
to the bank for the use of the asset.
Salam
Salam is a contract of advanced payment against deferred delivery of goods.
Goods paid for in advance by the buyer are delivered by the seller after an
interval of time.
Istisna
Manufacture of a specific product against precise specifications by a
manufacturer for delivery to buyer. It is necessary that the price of the product
and product specifications are fully agreed upon by the manufacturer and the
buyer, and that the material required for manufacture is arranged by the
manufacturer.
THE CARING BANK Page 7
Bank Alfalah Islamic
Company Information
Great journeys begin with but a single step and mighty oaks are born out of
humble seedlings. Bank Alfalah – Islamic Banking Division (BAL-IBD) – presently
a division of Bank Alfalah Limited – is gearing up to become a separate, full-
fledged Islamic Banking entity. BAL-IBD offers to its customers a broad range of
Islamic products under personal, consumer and corporate banking modes. The
array of Islamic instruments at the disposal of BAL-IBD is equipped to provide
efficient and satisfying solutions to our customers’ needs. Our Islamic products
are Shariah-compliant carrying the seal of approval of the Centre of Islamic
Economics, an institution vested with powers to attest authenticity and legitimacy
of Islamic banking products in Pakistan.
BAL-IBD has entered into a Shariah Consultancy agreement with the Centre of
Islamic Economics, Karachi, which is a noted and well-known seat of learning for
Shariah scholars and a prominent institution dealing in Shariah Advisory
services. Besides assisting in advancement of the Division’s product portfolio, the
Centre also stamps approval of the Division’s conduct of business following
periodic audits. These audits are in addition to those carried out by the State
Bank of Pakistan and the internal audits undertaken by the Division itself.
Performance
Bank Alfalah’s Islamic Banking Division (BAL-IBD) started operations in 2003
and at its yearend reflected a modest capital base of Rs 100 million and deposits
totaling Rs 113.7m.
By following yearend, BAL-IBD’s equity had risen more than 4 times to Rs 569m
and the balance sheet footing had swelled to Rs 7,799 million. Deposit size had
grown from less than Rs 114m to over Rs 7,229 million. The pace of frenetic,
triple digit growth was continued over the next twelve months as equity more
than doubled to Rs 1,278 million from Rs 569m.
THE CARING BANK Page 8
Assets also recorded a more than 100% growth, climbing to Rs 15,634 million
from Rs 7,799 million. Deposits alone failed to double – rising to Rs 12,476m
from Rs 6,548 million – yet managing a healthy 90% increase. Financial results
as of June 30, 2006, reflect growth but at more modest pace.
Total balance sheet size fell shy of Rs 18 billion – Rs 17,970m vs Rs 15,634m –
and deposits climbed to Rs 14,111 million, rising Rs 1,635 million in six month’s
period. Income for the 6-month period was Rs 111.23 million.
Bank Alfalah Islami overall structure is in the following way.
Personal Banking
Personal Accounts
Bank Alfalah – Islamic Banking Division (BAL-IBD) offers Current, Savings and
Term Deposit facilities to its customers seeking personal banking relationships
with the following features:
Facility Minimum
balance
Profit Zakat deductions
Current deposit PKR 10,000/= Nil Not applicable
Musharakah
Savings
deposit
PKR 5,000/= Tiered structure, 6
monthly pay-out
Applicable
Musharakah
Term deposit
PKR 50,000/= Tiered structure, 6
monthly pay-out
Applicable
All profits subject to 10% withholding tax
On-line cash deposit facility at all branches of Bank Alfalah
On-line transfer facility between all branches of BAL-IBD
THE CARING BANK Page 9
Remittances
Foreign and local remittances are both available. Foreign remittances are
available in the following currencies: US dollars, Pound Sterling and Euro.
Locker services
Locker services are offered at select branches. Lockers are available in three
sizes – small, medium and large. Annual charges for the lockers are as follows:
Small Rs 1,000/-
Medium Rs 2,000/-
Large Rs 3,000/-
Lockers are available to account holders and carry an insurance value of
Rs .250, 000/-
Corporate Banking
Murabaha Finance
Types
o Local purchases: For purchase of locally available goods
o Imported goods/commodities/assets
Mode of repayment
o Immediately in cash
o On a mutually agreed future date
o Spot Murabaha (Import)
o Deferred Sale Murabaha
THE CARING BANK Page 10
Trade Finance
Imports
o Letter of Credits
o Import Murabaha Finance
o Full range of services related to imports e.g. Contract registration,
Import bills for collection, Shipping Guarantees and Advance
payments against imports.
Exports
o Export Murabaha Finance
o SBP Islamic Export Finance Scheme
o Other export related services e.g. Collection of export bills,
Negotiation under Sight LCs, Advising/Confirmation/Transfer of
Letter of Credits opened by other bank.
Bank Guarantees
A host of Guarantee types are offered by BAL-IBD including performance,
financial and payment guarantees. BAL-IBD also issues guarantees securing
financing facilities to be availed from Islamic Banks and/or Conventional Banks’
under Islamic modes of financing.
Consumer Banking
Alfalah Musharaka Homes
Alfalah Hilal Card
Alfalah Car Ijarah
THE CARING BANK Page 11
Islamic Financing Is Asset-Based Financing
A key feature of Islamic banking is that unlike conventional banks which deal
primarily in money and financial securities, Islamic financing is related to an asset
that is a feature of the transaction, and quite often the principal feature itself.
From this springs an important distinguishing feature of Islam
wherein Islamic financing is always based on illiquid assets that have intrinsic
value. Profit to Islamic financing is generated through bonafide sale of these
assets.
Conventional banking, on the other hand, is free of such limitations. It lends
money and makes its earnings through this act of lending. Its earnings are
unconcerned with the economic fate of its lending.
Branch Network
Alfalah bank Islami has 13 branches in Lahore, 14 in Karachi, 3 in Islamabad ,3
in Rawalpindi.2 in multan.1 in Peshawar,4 in Faislabad along with these Islamic
bank is working in Total 24 cities of Pakistan.
The Head Branch is in at Uni Tower, I. I. Chundrigar Road, Karachi.
I completed my Internship at Bank Alfalah Islami Kotabdul Malik Branch
Sheikhupura. This single branch is in operation in this city.
THE CARING BANK Page 12
THE CARING BANK Page 13
V I S I O N
“To be the premier
Organizations operating locally
and internationally that provided
the complete range of financial services
to all segments under one roof”
THE CARING BANK Page 14
MISSION
“To develop and deliver the most innovative products, manage
customers experience, deliver quality service that contributes to
brand strength, establishes a competitive advantage and enhances
profitability, thus providing value to the stakeholders of the bank
Chief Executive Officer
Co-Chairman Central Management Committee
Group Heads
Regional Managers
Area Managers
Branch Manager
Operations Managers
Organizational Hierarchy
Fig.1
THE CARING BANK Page 15
A general hierarchy of bank which is showing about the main authorities of Bank
Alfalah Limited who are controlling its management in Pakistan. Bank’s
management is divided into different groups, regions and areas. Co-chairman is
providing supervision to group heads that are responsible for controlling the
affairs of different groups.
Board of Directors
The board of directors has the authority in guiding Bank affairs and in making
general policies. Some directors are the personnel of the Bank Alfalah Limited
follows.
H.E. Sheikh Hamdan Bin
Mubarak AlNahayan
Chairman
Mr. Mohammad Saleem
Akhtar
Chief Executive Officer
Mr. Abdulla Nasser
Hawalileel Al-Mansoori
Mr. Abdulla Khalil Al Mutawa
Mr. Ikram Ul-Majeed
Sehgal
Mr.Khalid Mana Saeed Mr. Nadeem Iqbal Sheikh
THE CARING BANK Page 16
Management
Board Advisory Committee
Mr. Abdulla Khalil Al Mutawa Director
Mr. Khalid Mana Saeed Al Otaiba Director
Mr. Bashir A. Tahir Member
Mr. Ganpat Singhvi Member
Mr. M. Iftikhar Shabbir Secretary
Board Audit Committee
Mr. Abdulla Khalil Al Mutawa Director
Mr. Khalid Mana Saeed Al Otaiba Director
Mr. Bashir A. Tahir Member
Mr. Ganpat Singhvi Member
Mr. M. Iqbal Saifi Secretary
Auditors
KPMG Taseer Hadi & Co.,
Chartered Accountants
Registered / Head Office
B. A. Building
I. I. Chundrigar Road
Karachi.
THE CARING BANK Page 17
Chain Of Command
Fig.2
THE CARING BANK Page 18
Chief Executive Officer
Executive Incharge
Strategic Planning & Global
Marketing
Executive Incharge
International &Treasury Division
Executive Incharge
Human Resources Division
Executive Incharge
IT Division
Executive Incharge
Credit Division
Executive Incharge
System & Operation Division.
Executive Incharge
Establishment & Administration
Executive Incharge
Credit Monitoring Division
Executive Incharge
Business Development Division
S.A.M./ Car Finance/ Leasing
Executive Incharge
Legal Affairs Division.
Executive Incharge
Audit & Inspection Division
Executive Incharge
Finance Division
Executive Incharge
Corporate Banking,
SME Financing & Home Loans
Executive Incharge
Islamic Banking Division
Now 13byears after being incorporated, Bank Alfalah has emerged as one of the
foremost financial institution in the region, endeavoring to meet the needs of
tomorrow today, operating through more than 200 branches in 74 cities nation
wide, with total employees exceeding 7000. Bank Alfalah also expanded its
network internationally by opening branches in Afghanistan, Bangladesh and
Bahrain to further improve its image as a premier banking institution.
Celebrating 10 Years of Bank Alfalah
Fig.3
THE CARING BANK Page 19
About the Bank
A. Human Resource Planning
B. Policies
C. Core Values
D. Communication
E. Marketing
F.Managerial Practices
Human Resource Planning in Bank Alfalah
Human Resource Planning is the process of assuring that right type of people
with right capabilities are available when required. HRD of Bank Alfalah has to
care all the important activities. It is engaged in the process of hiring, firing,
training, development and all other related activities. HRD is also engaged in
process of designing and evaluating the jobs and determining a pay structure for
the jobs.
Terms of Employment
The following are the four categories
1 Regular (M.T.Os, C.R.Os)
2 Contractual (B.D.Os)
3 Temporary
4 Casual
Job Analysis and Design
In the job analysis, HRD of BAL plays the key role in the job identification,
respective duties and responsibilities. They systematically collect, evaluate, and
organize the information about jobs. Basically job analysis is review of job from
which they analyze the performance of employee and on the basis of this
performance they give rewards and benefits.
THE CARING BANK Page 20
Job Analysis
Job Description Job Specification
Fig.4
Job Description
In BAL, virtually against every job, job description is prepared. The main features
of job description are
1 To whom the employee is responsible.
2 What are the Job Grade, title, and location of the job.
3 Job Summary and duties. It briefly describes which are the duties of the
employees, their responsibilities and brief introduction of the job.
4 Working conditions.
Job Design
As we know that jobs are more than a collection of tasks recorded on a job
description. While designing the job, HR Department specify the work activities of
the individual. However designing the job in the Banking sector is a complex
function because of variety of factors that enter into arriving at the ultimate job
structure
Once the job analysis exercise has been practiced successfully, and job
description for each job is prepared, then HRD’s job does not end. It starts from
this activity and engage in estimating the demand and supply of human
resources.
THE CARING BANK Page 21
Recruitment
Recruitment is basically attracting the employees and encouraging them to apply
for the job. Human resource department is responsible for the recruiting process.
First of all they analyze that it is essential to do recruitment or there is alternative
to recruitment. i.e. contracting
Methods used or internal recruitment
For internal recruitment they use to inform their employees that there is any job
exists and also use job bidding which help the employees to apply for a vacant
job who think that they have enough capabilities for doing the job. Then after
internal methods they will go for external recruitment.
Method used or external recruitment
Most important source of their external recruitment for the purpose of filling low
level jobs are advertisements and fresh students from universities. On the other
hand for management and executive level they recruit the experience people.
Selection
In BAL, the selection process is a series of steps through which applicants pass.
The process starts from the review of applications and resumes, then after
analyzing the resumes they take the preliminary interview as the next step to find
out that whether this employee have potential or not according to the related job.
Then there are tests for employees. After the tests there are detail interviews for
the employees. These interviews are structured and there are group interviews
for the employees. After the interviews Successful candidates are selected.
Orientation
Once the selection process is completed, new employees are oriented in order to
become productive contributors. Orientation improves the rate at which the
employees are able to perform their job.
THE CARING BANK Page 22
Training and Development
The Bank continues to follow its strategy of hiring batches of young and energetic
Management Trainees who are sent to Training and Development Center for
training in all areas of banking. Training of the seventh batch is expected to
commence in May 2005. At the same time, short courses are continually
conducted for other team members to not only enhance their skill level but also
increase their performance potential.
Career Development
Bank Alfalah is committed to the personal welfare and professional development
of all its employees. The management realizes that proper career development is
essential, not only for a more productive and satisfied work force but also for a
excellent corporate culture.
Career planning is very important aspect for development of the employees. By
career planning employee's career goals are set and to achieve them. The bank
feels the responsibility to develop the careers of their employees so that they
would be able to get themselves high and high in corporate hierarchy. Then the
principle aim of career development programs is to help employees, analyze their
abilities and interests to better match personal needs for growth and
development with the needs of the organization.
Performance Appraisal
Performance appraisal is the process of reviewing the individual performance.
First of all, bank set some standards for different level of employees and direct to
their employees to do work according to these standards and evaluating their
performance.
Period
In BAL performance appraisals are usually prepared after every six months,
performances of every employee is to be reviewed and on the basis of these
performances compensations and benefits are determined.
THE CARING BANK Page 23
Performance Appraisal methods
Which are being used in Bank are
1 Essay about employee performance description
2 Work standard
Policies of Bank Alfalah Limited
Alfalah Bank since its establishment has been providing excellent services all
because of the strengthened policies and strategies set out by its Broad
and Management. These police cover all grounds of good banking, following is
the road map to their success
1. Customer satisfaction will always remain the number one benchmark; the
aim is to maximize value for clients by offering high quality financial
solutions that best meet their current needs and long-term goals.
2. Bank is continuously looking for expansion in terms of deposits so highly
dedicated Business developments Officers (B.D.Os) are being hired.
3. To maintain sufficient resources over a long period of time and utilize them
in productive way. This can be done through Liquidity Management and
Credit Risk Management.
4. To promote strong and ethical business practices in the industry by
focusing more on effective collaboration with stakeholders.
5. The corporate policy focuses on striking the optimum balance in
organizational workflows and processes
6. Bank Alfalah is committed to the personal welfare and professional
development of all team members and sharing expertise and operational
excellence across the groups.
7. The Bank is fully aware that branch network has direct impact on the
business so; an intensive branch network will be established all around
the Country.
THE CARING BANK Page 24
Core Values of Bank Alfalah
Bank Alfalah is firmly grounded with a corporate philosophy that
incorporates five solid values, which each individual associated with the
bank. These Values and Business Principles provide the framework within
which they carry out their operations abides by.
1.Humility
Bank encourages a culture of mutual respect and treat both for team
members and customers with humility and care.
2.Integrity
Integrity means a synergic approach towards abiding the core values.
United with the force of shared values and integrity, Bank Alfalah form a
network of a well-integrated team.
3.Team Work
Bank Alfalah team strives to become a cohesive and unified force, to offer
you, the customer, a level of service beyond one’s expectations. This
force is derived from participative and collective endeavors, a common set
of goals and a spirit to share the glory and the strength to face failures
together. The entire department heads work with their subordinates as
team members they provide them help and guide them to achieve their
goals.
4. Culture of Innovation
The Bank aim to be proactively responsive to new ideas, and to respect
and reward the agents, leaders and creators of change.
THE CARING BANK Page 25
Communication
The Communication in the branch is quite simple; the chief managers take
circulars from the Area Office viva Head Office and inform others in the branch
through a formal meeting, while the top management uses newspapers,
circulars, and weekly magazines, annual reports for downward communication.
The Branch manager can also inform top management about any query or
problem and in the same way subordinates can talk about anything that is
troubling them.
Marketing
No business activity can be planned without objectives therefore every company
has its own marketing objectives like, to achieve maximum market share, to
achieve desired volume and gain maximum profit.
In order to achieve such marketing objectives each organization has its own
ways and tactics. These ways and tactics help in achieving the pre-determined
goals of the organization.
Competitive Strategy of Bank Alfalah
The strategy used by the management to position BAL in such a way that it will
have distinctive advantage over its competitors.
Cost Leadership
Bank Alfalah adopted the strategy to be the cheapest services provider
(the cheapest rates for the services of Remittance, foreign trade etc), and
the lowest interest rates for their products.
Differentiation
The strategy an organization follows when it wants to be unique among its
competitors with unique products and value added services.
THE CARING BANK Page 26
Target Market
The target market, of Bank Alfalah Limited, is not only the conventional
consumers but the corporate sector as well.
Unique products and services
Bank Alfalah plans to introduce innovative and flexible financial products
and services.
Lowest Rates
The rates will be surely charged less then the completing products of other
banks e.g. UBL car financing.
Managerial Practices
Aggressive Banking
Bank alfalah expanding their network of Islamic Banking. Bank Al Baraka has
been serving the Islamic banking sector since 10 years and they have only 5
braches in Pakistan. On the other hand bank Alfalah has established 20
branches in a year.
Motivation
Bank Alfalah motivating their employees by giving them comprehensive benefits
and professional environment within the organization, which enhances the
performance of the employees. Bank motivates their employees by giving 3
bonuses in a year.
Benefits
Monitory Benefits
Monitory benefits are given to the employees on the basis of their performance
like salary rise, cash prize.
THE CARING BANK Page 27
Grade Promotion
Bank also provides benefit to their employees in the form of grade promotion.
Grade promotion motivates the employee to do their work efficiently and
effectively.
Abroad Posting
Bank benefit their employees by sending them on overseas posting where they
can enhance their professional skills and get handsome financial benefits in
terms of salary or fridge benefits.
Controlling
Bank has proper setup of controlling the day to day transactions and operational
affairs. Bank controls the operations through a proper check and balance system
and properly monitor the daily work.
Internal Control Unit
Bank has an Internal Control Unit that monitors the daily transactions within the
organization and keeps informing the management about the rules and policies
violation. Internal control unit has a proper check and balance on operations and
other bank departments.
Internal Audit
Internal audit is a tool to have a proper check on daily working in a bank. Internal
auditor has to point out the discrepancies found during audit. Internal auditors
hand over the audit report to the audit chief and he hand over that to the
management. Management overlook all the discrepancies and try to reduce the
violation and also took the necessary actions. Internal audit conducted in a bank
twice a year.
THE CARING BANK Page 28
External Audit
External auditors are the representatives of state bank of Pakistan. State bank
assigned them to audit the banks the find out the lapses or discrepancies
according to the rules and regulations of state bank of Pakistan. State bank
imposed penalty on bank if they found any discrepancies related to banking
practices or procedures. External auditor hand over the audit report to state bank
of Pakistan and SBP handover the report to the management along with the debit
advice in form of penalty and management overlook the discrepancies and take
necessary actions. External audit conducted once in a year. Bank Al Falah has a
Chartered Accountant Company on his panel who prepare and overview the
financial reports of the bank.
Customer Problems
It seems that the priority is given to the corporate customers in Bank Al Falah as
the individuals from middle class have to remind the management of certain
branch to do the needful for them. Customer is the king and customer always
right. Bank is earning profit from the customers. Bank should have a proper
relationship with corporate as well as individual customers. It is recommended
that the management should stress on having satisfactory relationship with
individual customers because they can also provide the revenue in term of profit.
Structure of the Organization
BAL is highly centralized and partially decentralized organization. All the
decisions are made by Board of directors, Members of Executive Committee and
Divisional Heads of the Bank Alfalah Limited. This centralized structure helps
them to make big decisions, while decentralized structure provides authority to
Area Mangers and Branch Managers to make any decision regarding their fields
of interest. Following is the structure of Bank Alfalah Limited:
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Kind of Organization
Bank Alfalah is a Public Limited Company, and provides financial services to
customers. It is all and all a customer-oriented organization. The banking
solutions are not only for the conventional consumer but also for the demanding
needs of the corporate sector.
Social Commitment
The Public Relation Division of BAL maintains effective rapport with the general
public by communicating the policies and schemes of the bank through press
and electronic media. Besides maintaining close relationship with journalists &
advertising agencies, the Division also receives the visiting dignitaries and
delegations from abroad.
BAL believes in serving the nation and building the country strong. BAL is always
at the forefront to support noble causes and promote the social & cultural
activities in the country. The Public Relation Division of BAL sponsors various
social, cultural and sports events to generate healthy activities in the society. It
also organizes religious programs to uphold the religious tradition of the people.
Mechanics of generating Profits
The mechanics of generating profits is the BAL’s valuable services e.g. Foreign
trade, Remittance, BTF and comprehensive and diversified products e.g. Auto
Finance, Home loan, Visa Card etc.
Morale of the Employees
The employees at ALFALAH BANK are self-motivated and the reason for their
such kind of motivation is the working environment which has to be conductive
for efficiency.
The morale of workers in Alfalah Bank is very high and this high morale is as a
result of keen interest and careful supervision of the top management. It is all
because of the healthy environment provided at all branches of the Bank and
very kind and neat relationship among the employees, and very satisfactory
compensation and benefit system.
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Employment Opportunities for new People
Bank Alfalah is creating opportunities for the new people as Bank Alfalah is the
fastest growing bank of Pakistan with the network of more than 200 branches,
covering 70 cities and all the employees are Pakistani. Bank follows a strategy of
optimum financial and quality human resource allocation in order to enhance the
performance. BAL is continually endeavors to hire numbers of undergraduates,
graduates and professionals.
Career Development
Bank Alfalah is an organization that provides opportunities for its staff to have a
challenging and rewarding long-term career. To this end the Human Resource
Department (HRD) encourages and motivates its employees to excel in the
responsibility that they have in the organization. BAL believes that creativity and
innovation comes from talent, knowledge and experience and it is endeavours to
provide and maintain an environment which not only nourishes these strengths
but also provides opportunities for the staff to have a career which has
multidimensional growth opportunities.
The overall direction of HRD has been towards nurturing the strengths of the
human capital to its maximum with a defining principal to help create a
progressive environment During 2004, workshops, skill development clinics and
seminars in the disciplines of Service & Attitude, Market Research & Selling,
Management & Communication, Credit & Finance, I.T. & e-Banking, Treasury &
Trade Finance, Global/ Domestic Banking Operations and on other diverse
subjects were conducted.
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Internal Structure of Bank
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Branch ManagerMr.Zahid Hameed
Operations Manager Mr.Tuheed Mumtaz
Relationship
ManagerMs.Ruba
ta Nadeem
BDOMurtaza
Ul Hassan
Remittence
Dpartment
Clearing OfficerMr.Imran Malik
Cash Room InchargeMr.Shoaib
Document
Incharge
Mr.Farhan
Other Staff
Guards,Teaboy,
Rider ,Sweeper
Description of various departments and Sections
Customer Relationship
Account Opening Department
This department is responsible for opening, closing of an account, issuance of
cheque books, handling customer request, dealing with the customer and
explains them the different type of accounts and their benefits for them. This
department has vary important position in operations because this is the first
impression of bank for customers.
The main document in this department is, of course, the Account Opening Form
(AOF) also known as relationship contract.
Procedure of Opening an Account
1. Completion of the Form
a. Basic customer information
i. Customer name
ii. Father name
iii. Mother maiden name
iv. CNIC number
v. National Tax number
vi. Current house no
vii. Permanent house number:
viii. Contac numbers
ix. Profession
x. Employer details
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b. Specimen Signature Card (S. S. Card)
c. Cheque book requisition
d. Operating instruction
e. Type of account
f. Currency for account
g. In case of death how will operate the account
h. Agreement on terms and conditions
i. Online account
2. Allotment of Account Number
3. Letter of thanks sent to customer
4. Issuance Of A Cheque book
5. Entry Of A cheque book
6. Acknowledgement of letter of thanks
7. Filling Of Account Opening Forms
8. Filling of Request
9. Maintaining the Computer Record
Accounts opening department is one of the departments that come under the
retail/general banking facilities provided by Bank Alfalah.
Major Deposit Account Products
The Alfalah Islamic Banking Kotabdul Malik branch is dealing in major deposit
product as follows
Current Account
Current Accounts are non-profit bearing accounts that have a minimum account
opening requirement of Rs.10.000.No Zakat is deducted on the account balance.
Furthermore all current account holders receive a Hilal card and there are no
restrictions on the number of withdrawals or deposits made to and from the
account. Sometimes upon instructions salary Account of an Individual require
initial deposit Rs.500
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Basic Banking Account (BBA)
Basic Banking Account was introduced by banks on an order by the State Bank
of Pakistan and is current in nature. There is no minimum balance requirement
for BBA, however initial deposit must be Rs 1000. Maximum two withdrawals and
deposits are allowed by cheque, while there is no restriction on ATM withdrawals.
Saving Accounts
1. Alfalah Musharka Saving Account
Musharka saving account is more suitable for individuals who wish to earn profit
on their savings and investment normally. Musharka saving Account offers
monthly Profit
Distribution and Profit calculation is on monthly average balance Bank Alfalah
Islamic is providing great flexibility these accounts because there are three type
of accounts offer under this category suiting almost every individual how wish to
invest and want to get better earning on his saving.
The Latest profit rates are shown as
Table.1
Amount-PKR July-2010
Minimum 0 to 9,999 5.03%
Maximum 100 Million & above 8.01%
In between these variable rates are available
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2. Falah Mahana Amdani Account
This account can starts from minimum Rs 10,000 and maximum you can invest
five million rupees. The benefit of this account is that you can withdraw your
money you don’t need to fix your amount for specific period of time. The profit is
paid on monthly basis on the minimum balance you maintain in that month.
Table 2
Amount-PKR July -10
10,000 to 15,000,000 9.03%
3. Falah Classic Saving Account
This account can starts from minimum Rs 10,000 and maximum no limit. This
account is the conventional saving account. Benefit of this account is that you
can withdraw your money you don’t need to fix your amount for specific period of
time. Profit is distributed bi-annually and profit calculation on monthly minimum
balance.
Table.3
Amount-PKR July-10
10,000 and above 5.06%
4. Falah Premium Saving Account
This account can starts from minimum Rs.100 maximum Rs.50, 000,000. This
account offers monthly profit distribution and profit is calculated on Daily balance.
Table.4
Amount-PKR July-10
Min 100 to 999,999 5.07%
Max 50,000,000 to 99,999,999 5.75%
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Term Deposit
Classic Saving
Mahana Amdani
Musharaka Saving Account
5. Term Deposit
In order to earn profit the client is required to keep his/her deposits with the bank
for some time. This period can be 7 days, 30 days, 3 month, 6 month, 1 year, 2
year and 3 years and 5 years. The profit rate starts from5.06% to 11.05%
depending on time span but the profit rate keep on changing on monthly basis.
The minimum limit for these accounts is Rs1,00,000 and maximum no limit.
Fig.6
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6. Royal Profit Account
Royal profit accounts are opened with a minimum balance requirement of Rs
50,000. The basic aim of this account is that the higher the balance the higher
the return, as profit is credited on a monthly basis. The profit paid to account
holders is as follows:
Profits paid on Royal Profit Account
Table.5
Amount Profit pa.
From Rs.50,000 to 999,999 2.50%
From Rs.1,000,000 to 4,999,999 3.50%
Rs.5,000,000 and above Negotiable
Internal Codes for Some Accounts
Table.6
Account Type Code
Current Account 020*****
FMA Account 359*****
Saving Account 036*****
Different Type of Accounts and Document Requirement
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Current Account
1. Sign on account opening form (AOF).
2. Sign on CNIC Verification.
3. Sign on CNIC Undertaking (if AOF sign differ from CNIC sign).
4. ‘Signature admitted’ stamp on SS card (Once for each person, e.g. incase
of joint account, admit both persons signatures separately).
5. ‘Signature admitted’ stamp on Rules and Regulations
6. ‘Signature verified’ stamp everywhere else on customer signature.
7. Attach Income Proof.
8. Attach Copy of Letter of Thanks to Customer + Introducer with TCS
Receipt with AOF.
9. Attach know your customer (KYC) form.
Saving Account
1. Everything under Current Account + Profit Sheet signed.
(Refer Table 7)
Company Account
1. Same as Current Account for stamping etc, but more documents are
obtained. As mentioned in table 2.
2. Separate KYC for company (KYC Format for Companies), and separate
KYC’s for People involved (KYC Format for Individuals), e.g. in a
partnership account with two partners, three KYC’s will be attached, one
for company and two for the partners.
(Refer Table 8)
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Minor Account
(Customer under 18 years of Age)
1. Get Form-B.
2. Get ID card of Guardian.
3. Get Income Proof of Guardian.
4. Get Signatures of guardian as per procedure for account opening.
Photo Account
(Sign weak, or in Weak Urdu)
1. Get Weak Signature indemnity signed.
2. Get Vernacular form signed (in case of Sign in Urdu).
3. Affix “Signed in Our Presence” Stamp.
4. Get two photos (One on SS Card, One on AOF).
5. Affix Photo Admitted Stamp on photos and sign twice.
6. Affix “All cheques to be signed in presence of bank officers” stamp
(Once on SS Card, once on AOF).
7. Can’t give and take mandate of account.
Thumb Impression /Parda Nashen ID card
1. Get two photos attested by town Nazim /Gazetted officer.
2. Get two CNIC attested by town Nazim/Gazetted officer.
3. Indemnity signed that I don’t have any other proof that this is my picture.
Online Account
All accounts are marked online except for FCY accounts. If you fill in the AOF.
Housewife Account
There is no need for any income proof, but if heavy transactions are to be carried
out, then get the source of income, i.e. husbands salary proof, proof of selling
land/property etc.
Student Account
Get Student ID card (Valid), fee challan /receipt etc.
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Table.7
Check List for Opening an Account
Sole Proprietor Partnership Company
1. NIC 1. NIC of all Partners 1. Copy of Certificate of
Incorporation (Attested by
Company Secretary)
2. Proprietor
Declaration /
Undertaking (Bank’s
Format ON
LETTERHEAD)
2. Account Opening Request
ON LETTERHEAD + Account
Opening Form to be signed by
all partners
2. NIC copies of all directors
(Attested by Company Secretary)
3. Company stamp 3. Partnership Mandate form to
be signed by all partners
(Bank’s Format)
3. Memorandum AND Articles of
Association (Attested by Company
Secretary)
4. NTN 4. Partnership Deed (on
stamp paper) ATTESTED BY
NP + Signed by ALL Partners
4. Copy of Board Resolution with
Company Seal (Bank’s
Format ON LETTERHEAD)5. Company stamp (with
Company’s name and Partner)
5. List of Directors on letter head
(Attested by Company Secretary)6. Registration Certificate
(Form C) incase of Registered
Partnership
6. Latest copy of Form - 29
(Attested by Company Secretary)
7. NTN 7. Signing authority on letter head
with A/c opening request
8. Company Stamp 9. A/c Opening form to be signed
by All Directors 10. NTN
NTN is must in all company accounts.
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Table.8
Stamp Specimen
Fig.7
Fig 7
Requests
Cheque Book Issuance
1. Get sign on Requisition (Front and Bank) and verify them.
2. Enter in the purchase order slip as mention below.
3. Deduct Charges (Rs. 5 per leaf) for example 25 leaves cheque book.
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Company Name
Proprietor
Company Name
Partner
Check list for Opening Accounts (Individuals)
Salaried Business Landlord
1. CNIC 1. CNIC 1. CNIC
2. Employment
Certificate/Sala
ry Slip/
Appointment
Letter
2. Letterhead + Stamp
OR
NTN in Business Name
+ Visiting Card
OR
Partnership Deed
2. NTN
OR
Fard Name
Dr. Customers Account 125
Cr. Cheque Book Charges Recovered 125
4. Send this Po to operation Manager after reviewing.
5. Operation Manager or Branch Manager will send the requisition .on the
said email address till 3Pm.
6. Next day till 11Am cheque books will receive.
7. Get customer’s signature on slips and send list of cheque books to the
vendor, and verify sign from the SS card.
8. Sign and write date in the slip next to customer’s sign.
9. Enter series in system against that customer from Account Operation.
10.Get authorized from Manager Operation.
Cheque Book Third Party Delivery
1. Sign on requisition for third party authority OR get thirds party authority
signed.
2. Take ID card of Third Person (Bearer).
3. Get CNIC verification request from the Bearer and print out Verisys.
4. Get Bearer sign on authority/requisition and on Cheque Book Register.
5. Send third party letter to customer, attach copy with requisition.
6. Get written acknowledgement on the letter before activating the cheque
book (or via phone in special cases).
7. File another copy of the third party letter in the Third Party Letters file.
(This copy is with the TCS Receipt).
Lost Cheque Book
1. Stop payment on lost cheque.
2. Manager Operation will issue FORM B + Indemnity.
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3. Issue cheque book against form B after verifying signs of the customer
and the guarantor. Cheque book issued on form B charges are Rs. 500.
Change of Address
1. Sign on Request (Verify Sign, Affix Received Stamp).
2. Change in System.
3. Print out changes, debit invoice attach with request.
4. Get authorized and send change of address letter to customer.
5. Attach copy of the letter with TCS receipt with the request and file with
AOF.
Third Party Mandate
Third party mandate is an authority that the account holder gives to a third party
to sign on his/her behalf. It is not given to everyone, the Manager Operation
needs to approve the operation.
1. Get third party mandate signed by the customer and the third party.
2. Get CNIC’s of both the customer and the third party.
3. Get Verisys.
4. Get the third party mandate approved by both the Branch Manager and
the Manager Operation.
Stop Payment
If a customer looses their cheque book, then that customer will have to come to
the bank and firstly report the loss and then stop payment, by telling the series of
cheque he has lost. By stopping payment, the customer is guaranteed that no
THE CARING BANK Page 44
illegal payment is made from their account. The process for stopping payment,
after the customer tells that he has lost is cheque book is that he fills a ‘Form B’,
which is same as a cheque book requisition form and an indemnity form, stating
no responsibility on behalf of the bank if any illegal payment is made before the
time of announcing a cheque book lost.
1. Sign on Request (Verify Sign, Affix Received Stamp).
2. Mark stop payment in System (Record Received and Marked Time on
Request).
3. Deduct charges, attach debit invoice with request (Rs. 200 per cheque +
FED, Rs. 500 Max for full cheque book +FED).
Dr. Customers Account 220
Cr. Service Charges Recovered 200
Cr. FED on Others 20
4. Attach Stop payment register with request.
5. Send Stop payment Letter to customer, attach copy with request (along
with TCS Receipt).
6. Enter in Stop payment register (current / saving).
7. File in Stop payment file. (Current / saving).
Sign Change Request
1. Sign on Request (Verify Sign, Affix Received Stamp).
2. Get ID card from customer.
3. Get new SS Card sign.
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4. Delete old sign in system.
5. Get new sign authorized and uploaded in system.
6. Attach request with AOF with cancel old SS card..
7. Mention date of change of signature on SS card.(W.e.f)
Dormant/Inactive Account
1. Sign on Request (Verify Sign, Affix Received Stamp).
2. Get ID Card.
3. Unmark in system.
4. Attach Print out with request.
5. Get authorized.
6. File with Manager Operation.
Statement issuance
1. Sign on Request (Verify Sign, Affix Received Stamp)
2. Give statement to customer.
3. Deduct Charges by.
Dr. Customer A/c Rs. 55
Cr. Service Charges Recovered Rs. 50
Cr. FED on Others Rs. 5
4. After deducting charges, file request in the Statements file.
Bank Statement and Bank Balance
A bank statement tells the whole activity of a bank account over a period of time.
Customers often come and want their bank statements and have to fill a form,
THE CARING BANK Page 46
relating to the time period for which the bank statement is needed. As part of my
internship, I was to assist the customer to fill the ‘Bank
Statement Form’ and printed statement is given through the banks software.
Often customers want to know their accounts balance over the phone and thus I
had to tell them their account balances using the banks information system “Bank
Smart”
Zakat Exemption Request
Zakat is deducted on Pak Rupees Saving Accounts and on TDR’s. If a customer
does not want to pay Zakat he has to
1. Give a ZAKAT DECLERATION on Rs. 20 Stamp Paper.
2. Verify Sign of customer on the declaration and affix Received Stamp.
3. Make changes in system (Marking customer’s Fiqah under ‘Zakat’).
4. Enter in Zakat Register
Non Muslims are also marked under ‘Zakat’ in Account Maintenance. There
Verisys should show their Religion as Non-Muslim.
Clearing Department
Inward clearing
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In inward clearing cheques of our customer which are presented in any other
local or out of station bank for payment are come back to the bank to honor.
These cheques are received through NIFT (National Institute of Facilitation
Technology). These cheques are examine date, amount in figure and words,
signature of customer and stamps. If all above mentioned particulars are in order
then check customer account to inquire about sufficiency of balance to pay. If
balance is sufficient then cheque is cleared and payment is made. In case of
local Bank Alfalah Islamic or conventional branch the credit is given through
IBCA(Inter Branch Credit Advise). In case of local bank other than the bank
Alfalah the credit first given to the Main office of Bank Alfalah Islamic, SBP have
all banks main offices accounts, then transfer the fund to the respective branch
main office and their main office give credit to the respective branch.
Stamps by Bank Alfalah Islamic
One stamp that is signature verification.
Stamps by sending bank
Three stamps used by the sending bank
Special Crossing
Banker Discharge stamp at the back+ Signature of authorize officer.
Clearing stamp(Date must be that at which cheque is presented)
Return of the Cheque
Cheque can be returned on following basis,
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Amount in figure and words not matched.
Signatures differ.
Pre dated check.
Date of presentation of check expired.
Insufficient balance.
Mutilated cheque.
Stop payment by customer.
Diseased account.
Wrong stamps..
Wrong date on stamp.
Dormant account.
Outward Clearing
In outward clearing the cheques of the banks other than the bank Alfalah
presented by the customer on Bank Alfalah counter. Out ward clearing is of two
types
Local Outward clearing
In local outward clearing the cheques of the local banks other than the bank
Alfalah presented by the customer on Bank Alfalah counter. Clearing department
sent these cheques through NIFT to the respective local branches. After
stamping and entering in their register. NIFT deliver the cheque to their
respective local branch. That cheque become inward clearing for that bank and
repeats the process as mentioned before in inward clearing and give credit to its
Main office, SBP have all banks main office accounts, then transfer the fund to
the respective branch main office and their main office gives credit to the
respective Bank Alfalah branch.
Stamps on the cheque by Bank Alfalah Islamic In local out ward clearing
Three stamps are used
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Special Crossing
Banker Discharge stamp at the back+ Signature of authorize officer.
Clearing stamp (Date must be that at which cheque is presented).
Out of station Clearing
There are two ways of out of station clearing, these are
Inter city
In out of station clearing outward clearing the cheques of the out of station
clearing banks other than the bank Alfalah presented by the customer on Bank
Alfalah counter. Clearing department sent these cheques through NIFT to the
respective out of station clearing branches. After stamping and entering in their
register. NIFT deliver the cheque to their respective local NIFT of that city. That
local NIFT deliver the cheque to their respective local branch. That cheque
become inward clearing for that bank and repeats the process as mentioned
before in inward clearing and give credit to its local Main office of that city, SBP
local have all banks main office accounts, SBP of that city transfer the credit to its
branch of that city in which Bank Alfalah Islamic branch need the credit then
transfer the fund to the respective branch main office and their main office give
credit to the respective Bank Alfalah branch.
This method is not used quite often because the status of the cheque can not be
determined. Usually prefer Outward bills for clearing. If cheque is send in this
type of clearing, nothing mentioned in effects of that account, it takes 4-5 working
days to clear the cheque. Clearing charges are 0.15% of the amount of that
cheque + Rs.150 courier charges.
Stamps on the cheque by Bank Alfalah Islamic In intercity out ward
clearing
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Four stamps are used
Special Crossing
Payees Account will be credited on realization + Signature of authorize
officer.
Clearing stamp(Date must be that at which cheque is presented).
Intercity clearing.
Outward Bills for clearing (OBC)
Another way of out of station clearing is outward bills for clearing. In this type of
clearing out of station cheque are received, sent to the respective city Bank
Alfalah Islamic branch after stamping and giving number. Those cheques
become local outward clearing for that city Bank Alfalah Islamic branch. That
branch clear that cheque as mentioned before in local out ward clearing. When
that cheque is realized the credit given back to the branch who send it for
clearing through OBC. This credit transfer is given through IBCA.
If Bank Alfalah Islamic Don’t have branch in that city, cheques are sent to Bank
Alfalah Limited conventional branch. If conventional branch is also not there the
directly sent to the respective bank’s branch. In that case the credit can’t transfer
through IBCA which uses only for Bank Alfalah. Then the
Bank Alfalah Islamic request that bank to make the demand draft in favor of their
branch for realization of that cheque.
This method is used quite often because the status of the cheque can determine.
If cheque is send in this type of clearing, it will mentioned in effects of that
account, it takes 4-5 working days to clear the cheque. Clearing charges are
0.15% of the amount of that cheque + Rs.150 courier charges. NIFT is not used
in this type of clearing.
Stamps on the cheque by Bank Alfalah Islamic In intercity out ward
clearing
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Four stamps are used
Special Crossing
Payees Account will be credited on realization + Signature of authorize
officer.
OBC stamp with number..
Remittance Department
Cheque
Whenever a cheque is presented at the counter the cashier after a clear
supervision make payments and he finds any ambiguity he returned the cheque
unpaid. The bearer of the cheque sign the cheque in front and twice at back of
the cheque.
Instrument used for transfer of money
Pay order: Used to transfer money within the city
Demand Draft: Used to transfer money outside the city
Pay Order
“Pay Order is a negotiable instrument made by the bank, on account of a
customer, to pay on order the specified amount to the directed person (payee)”.
Pay Orders are used to make guaranteed payment or to guarantee transfer of
money, most importantly with in the same city. Pay Order is always drawn on the
bank that has issued it. Rs 105 are charged for each pay order.
Explanation
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When a person requires a Pay Order, he is asked to complete the prescribed
application form in which the amount of pay order is to be stated. Certain amount
of commission and advance tax is charged on issuance of pay order. After
having the total amount deposited in the bank (in cash or through cheque, in
case of account holder), pay order is issued in favor of the payee
Like cheques, when pay orders issued by Bank Alfalah Limited, are presented in
other banks to get them deposited in the payee’s accounts, they constitute the
outward clearing for those banks and inward clearing for Bank Alfalah Limited
The officer checks all the details in the application, makes out the charges for the
transfer that the customer will pay and then make the pay order for the customer
and pass the following entry
Customer A/c
Pay order payable
When the customer in favor of whom the pay order was made gives the pay
order to his branch, the entries passed are
Pay order payable
Customer A/c
Demand Draft
“A Demand Draft is a negotiable instrument issued by the bank, on account of a
person, and drawn on its own branch in a specific city or on the branch of
another bank in that city (in case bank doesn’t have any branch there),
requesting it to pay the specified amount to the person named on it”.
Demand Drafts are used to make guaranteed payment or to guaranteed
transfer of money, most importantly out of the city. Demand Drafts are always
made for out of the city payments. Or transfer.
Explanation
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Suppose a customer requests to provide him a DD made on his account for a
particular city like Karachi. Then, after having the total amount (including
commission and advance tax) to be deposited with application form, demand
draft is issued in favor of the specified person in Karachi (supposed) and is
drawn on Bank Alfalah Limited, Karachi Branch. So, when this demand draft is
presented by payee in any bank, it constitutes the inward clearing of Bank Alfalah
Limited, Karachi Branch.
There are two types of situations for transfer of money through demand drafts
Outward DD’s
When a customer comes to Bank Alfalah to make a DD to transfer money
outside the city is known as outward DD. The customer will fill the details in a
DD application form, and will attach a cheque or pay cash as he wish.
Then the officer will check all the details and make a demand draft for the
customer and pass the following entries:
For Cheque: For Cash:
Customer A/C Sundry A/c
Head Office Head Office
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Inward DD’s
This is the procedure adopted when the issuing branch sends copy of the
instrument as an advice. When the bank receives the advice, the officer will pass
the following entries
Head Office A/c
DD Payable A/c
When the customer comes with the DD to get his payment, the following entries
are passed:
DD Payable A/c
Cash
If that customer is a Bank Alfalah account holder then the following entries are
passed
DD Payable A/c
Customer Account
Call Deposit Receipt (CDR)
Bank Alfalah Limited also issues Call Deposit Receipts (CDR).
“It is an instrument issued by the bank on account of a customer & in favor of a
person, to pay the specified amount”.
CDR’s are issued to make payments, especially when a company goes for some
tenders or for purchase of government securities. The bank enjoys the benefit of
keeping funds deposited until the payment is not made. During this time, the
bank uses the deposit and earns income on that.
THE CARING BANK Page 55
Cancellation of PO.DD or CDR
After issuance of Pay Order, Demand Draft or Call Deposit Receipt by BAL-IBD,
if any one of these has to be cancelled by the customer, it is returned in the bank.
For cancellation original document must be presented. These instruments can
only be cancel by the instrument issuing branch. For CDR the organization for
which it is made must stamp it on back side to release the payment. Then, after
deducting the cancellation charges of Rs.100, the remaining (net) amount is paid
to the customer through Cash Payment Voucher.
Inter Branch Transfer
In inter branch transfer the customer request through an application to transfer
the cash from one account to another account like city school maintains the
salaries account in Bank Alfalah Islamic it can request the bank to transfer
amount from salary account to different staff members account.
Online Transfer
In online transfer first of all your account should be online. All Bank Alfalah
Islamic and Bank Alfalah Conventional branches are online and they are
connected. When the customer request the online transfer there is a module in
Bank Smart Software they open that module and hit that account in which online
transaction needed. They can only debit and credit that account , Signature can
also verified for that account. But details of that account only have by the
branches that maintain that particular account. It will take 5-10 minutes for online
transaction depends on network. Flat rate of Rs. 105 is charged per transaction.
THE CARING BANK Page 56
Product and Services
The branch is dealing in the following Riba free consumer products
Alfalah Musharaka Homes
Alfalah Car Ijarah
Alfalah Hilal Card
Alfalah Musharka Homes
With Alfalah Musharaka homes, you can participate with Bank Alfalah-Islamic
Banking Division (BAL-IBD) in joint ownership of property where BAL-IBD invests
a certain amount, usually up to 80% of the
property value. Through monthly payments – a
composite of rent for use of property and
purchase of BAL-IBDs’ Musharaka shares/units
in the property – to BAL-IBD you will be able to
increase your stake in the property every month.
Fig 8
The rental component will be readjusted every month to reflect your growing
share of ownership in the property. Following purchase of all Musharaka units
initially owned by BAL-IBD you shall become the sole owner of the house 8with a
free Title to the property.
THE CARING BANK Page 57
The Alfalah Musharaka Homes product can be used in multiple situations,
giving you pure Islamic solutions for your desired objectives.
Purchase an already constructed house (Alfalah Buyer).
Purchase a plot and subsequently construct upon it (Alfalah Builder).
Renovate, extend, restore and enhance your already owned housing unit
(Alfalah Renovation.).
Transfer your existing exposure of housing finance facility from another
financial institution to our Riba-free facility.
You have the option to choose tenures for the purchase of units from
between 3 to 20 years* * 3 to 7 years in case of renovation.
Alfalah Car Ijarah
A Shariah compliant car-leasing scheme
with added features such as
No upfront registration charges
No upfront insurance premium
No rentals before delivery of car.
The facility applies to all locally-assembled
new cars
Fig.9
Up to Rs 4 million. Used cars not older than three years can also be
considered.
Bank contributes up to 70% and 30% by the customer.
THE CARING BANK Page 58
Alfalah Hilal Card
Carry your bank account in your wallet with
Alfalah HilalCard Bank Alfalah Islamic
Banking Division (IBD) offers Alfalah HilalCard
to its customers for a conscious free spending
in a modernized form of currency that
provides you with a wide range of accessibility
using VISA’s worldwide network.
Fig 10
Alfalah HilalCard can be utilized for all your financial needs around the world,
round the
clock, wherever VISA cards are accepted locally and Internationally, giving you a
more secure and convenient mode of payment.
The Alfalah HilalCard is an International VISA Debit card which gives you an
unlimited access to your current/savings (musharka) account with a simple
swipe, at more than 1 million ATMs and 27 million outlets around the world.
The reasons that make Alfalah HilalCard different from others:
HILAL CARD IS A BUY NOW, PAY NOW OPTION.
4 No monthly repayment
4 No interest charges
4 Backed by a customer maintained current/savings (Musharaka) account
4 Your limit is your balance
HilalCard can be used electronically at any retail outlet or ATM that
accepts any VISA cards.
THE CARING BANK Page 59
Features
24/7 ATm cash withdrawl facility for customer of
BAL/IBG customers-Rs50 k per day
Other 1 link bank Customer
VISA international users
Balance Inquiry
Mini account Statement
Fast cash
Pin Change
Funds transfer on ATMs-Rs 50 k per day
Utility Bills payment for
Electricity
Gas Bills
Mobile Phone Bill Payment
BAL credit card Bill payment on ATM
Cash –Deposit function on selective BAL ATMs
Money Gram
Money gram is an international cash transfer facility. Through this
facility funds can be send any part of the world to beneficiaries in
Pakistan and can be received in any of the Money Gram
authorized BAL branches.
MG is strictly a person to person transfer of cash
Bank Alfalah limited, in collaboration with MoneyGram, offers remittance service
to Pakistan. MoneyGram is person to person money transfer service that allows
consumers to receive money in just few minutes.
THE CARING BANK Page 60
Secure and reliable
An extensive network of quality agents, linked by computer, will transfer your
money safely and ensure that it is handled with
care and without delay. Thousands of people already use the MoneyGram
service all over the world.
Locker Service
Locker service is provided by the bank to its account holders of the following
nature
1. Small
2. Medium
3. Large
This service is categories as on the basis of the value as shown in the table
Locker Value/Rs Charges p.a
Small 5 00k Rs 1000
Medium 750 k RS 2000
Large 1000k Rs 3000
Table.9
THE CARING BANK Page 61
Financial Analysis
Profitability Ratios
The continued viability of any bank depends on its ability to earn an appropriate
return on its assets and capital. Good earning performance enables a bank to
fund its operations, remain competitive in the market and increase or decrease in
market funds.
1. Return on Capital Funds
Formula = Net mark up Received
Capital Funds)
2009 = 6835605 = 34.57%
19770260
2008 = 6928926 = 50.03%
13766673
2008 20090
10
20
30
40
50
60
percentage
percentage
chart.1
THE CARING BANK Page 62
Interpretation
This ratio relates the net profits to the amount of capital funds that have been
employed in making that profit.
The above given ratios suggest that the profitability of the bank has decreased
last year indicating less profitable operations of the bank.This ratio shows a weak
financial position of the bank.
2. Return on Assets
Formula = Net income after taxes
Total Assets
2009 = 897035 = 0.23%
389070055
2008 = 1301301 = 0.37%
348990764
2009 20080
0.05
0.1
0.15
0.2
0.25
0.3
0.35
0.4
percentage
Chart.2
THE CARING BANK Page 63
Interpretation
This ratio indicates the profit earned by the bank on the resources employed. As
far as BAL is concerned, we observe an decrease in the utilization of the
resources. It has decreased to 0.23 % in the year 2009 from 0.34 % in the year
2008; the reason behind the slight decrease in the profit may be due to the lack
of efforts by the management.
3. Return on Deposits
Formula = Net income before taxes
Total Deposits
2009 = 1016316 = 0.312%
324759752
2008 = 1794720 = 0.59%
300732858
2008 20090
0.1
0.2
0.3
0.4
0.5
0.6
0.7
percentage
percentage
Chart.3
THE CARING BANK Page 64
Interpretation
Interpret This ratio indicates to what extent deposits which represent funds
mobilization on the part of the bank contribute towards income generation.
Although the other ratios regarding the profitability are showing satisfactory
position of the bank but still bank need to increase its utilization of resources in
order to increase its profitability because the banks have to pay heavy taxes on
their profit and this ratio is indicating that bank’s income is decreasing.
4. Income to Expense Ratio
Formula = Income
Expense
2008 20090
10
20
30
40
50
60
percentage
percentage
Chart.4
Interpretation
THE CARING BANK Page 65
2009 = 4071527 = 37%
11001542
2008 = 3543357 = 35.58%
9957130
This ratio signifies the proportion of the expenses that are causing to generate
income The ratios calculated above gives a clear picture of the bank’s
operations. This ratio is increasing from year 2008 to 2009 With respect to the
banking expansions this ratio is showing a very good picture as we know the
expansions required lot of expansions, although the operating expenses of the
bank are increasing but their proportion of increase is not alarming.
In short, the bank in an attempt to maintain at a good level of liquidity, has a low
level of profitability but there is a continuous push in the profits and there are
chances that the bank will reach at a point of high liquidity and profitability.
Liquidity Ratio
Liquidity can be defined as
“The bank’s ability not only to meet possible deposit withdrawals but also to
provide for the legitimate needs of the economy as well”
5. Advances to Deposit Ratio
Formula = Advances
Total Deposits
2009 = 188042438 = 57.9%
3542759752
2008 = 191790988 = 63.7%
300732858
THE CARING BANK Page 66
2008 200934.5
35
35.5
36
36.5
37
37.5
percentage
percentage
Chart.5
Interpretation
It demonstrate the degree to which bank has already used up its available
resources to accommodate the credit needs of its customers.
This ratio, a comparison of funds generation and its funds mobilization, indicates
the total loans sanctioned by the bank in relation to total amount of money
deposited with the bank stands at 57.9%compared with the last year figure of
63.7%. This shows that the bank has less potential to advance additional loans.
Total loan able funds roughly measured by the deposits are sufficient to enable
the bank to make additional loans without recourse to more or less continuous
borrowing.
6. Deposit to Total Asset Ratio
THE CARING BANK Page 67
Formula = Investment
Total Assets
2008 200919
20
21
22
23
24
25
26
percentage
percentage
Chart.6
Interpretation
is an indication of BAL’s funds management policies. The funds allocation to the
financial institutions has increased to a great extent despite the fact that still it
holds a small proportion relevant to the total resources raised by the bank. It is a
positive indicator in the sense that the financing to the banks are the most secure
ways of lending. Considering the economic conditions of the country, it seems to
be the best alternative available to the bank.
7. Debt Ratio
Formula = Total Liabilities
THE CARING BANK Page 68
2009 = 99159957 = 25.4 %
389070055
2008 = 75973238 = 21.7%
348990764
Total Asset
2009 = 366936635 = 0.94%
389070055
2008 = 331946025 = 0.95%
348990764
2008 20090.934
0.936
0.938
0.94
0.942
0.944
0.946
0.948
0.95
0.952
percentage
percentage
Chart.7
Interpretation
It shows the relationship between total assets and liabilities. Debt ratio is
decreasing with the passage of time which is good for bank.
8. Capital Adequacy Ratio
THE CARING BANK Page 69
Formula = Capital Funds
Total Assets
2007 = 12099 = 6.64%
182172
2006 = 9619 = 5.79%
166033
2008 20095.2
5.4
5.6
5.8
6
6.2
6.4
6.6
6.8
percentage
percentage
Chart.8
Interpretation
This ratio indicates the extent of the funds employed by the bank in the total
resources as shown in the balance sheet. This ratio has been increased with a
good margin.
9. Capital Funds to Risk Assets Ratio
THE CARING BANK Page 70
Formula = Capital Fund
Risk Assets
2009 = 19770260 = 10.5%
188042438
2008 = 13766673 = 7.1%
191790988
2008 20090
2
4
6
8
10
12
percentage
percentage
Chart.9
Interpretation
This ratio takes into account the difference between cash and marketable
securities & other kind of assets. Cash & marketable securities, which are risk
less items, are excluded to find out the true picture of the capital adequacy. In
case of BAL the ratio is increasing.
Concluding Remarks
THE CARING BANK Page 71
1) Total income of bank is increasing which shows its good position
2) Operating expenses have increased due to formation of new branches
3) Net income before tax and provision has increased and after tax has
decreased due to tax provision increase including operating expense and
interest expense more interest.
4) Investments and deposits show a very good sign because they are
increasing with a large proportion
5) Shareholder equity is also increasing with a high proportion.
6) A total asset shows a better position of the Organization.
THE CARING BANK Page 72
SWOT Analysis
SWOT is stands for strengths, weaknesses, opportunities and threats. SWOT
analysis is a careful evaluation of an organization’s internal strengths and
weaknesses as well as its environmental opportunities and threats. In SWOT
analysis the best strategies accomplish an organization’s mission by exploiting
an organization’s opportunities and strengths while neutralizing its threats and
avoiding its weakness. During my internship I also observe these factors of bank
and made a conclusion which is as follows:
Strengths
Bank Alfalah Image
Bank Alfalah is a reputable financial organization and is well known all over the
Pakistan. Perception is of producing a high quality services. Since, inception of
Bank Alfalah, it has moved rapidly in expanding branch network and deposit
base, along with making profitable advances and increasing the range of
products and services bank have made a break-through in providing premier
services at an affordable cost to our customers.
Bank Alfalah has been awarded an AA- (double A minus) and an A1+ (A one
plus) in the long and short term respectively by the PACRA. These rating denote
very high credit quality and very low expectation of credit risk.
The main source of a financial institution is public savings in this regard public
confidence plays a vital role. So, the confidences of customers are the main
strength of Bank Alfalah.
In order to maintain an effective communication of information regarding the
need of valued clients bank has designed its website to be as user-friendly as
possible.
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This facilitates to pursue the path of excellence and customer satisfaction
through delivering higher quality of services, thereby adding synergy to our
existing management expertise, financial strength and profitability. Hence, it’s a
channel of communication for the delivery of quality products and services that
enhance value to our stakeholders.
Customer Care
The Bank not only provides high quality services but it also look for the comfort
and convenience of the clients, BAL always preferred their customers.
Market Share
BAL has covered much of the potential market and the net profit is increasing
years after years. Deposits and advances have sufficiently increased.
Large number of diversify Products
This is also its main strength as it has diversified in many products in its not only
in its conventional but also in Islamic banking
such as:
1 Debit card/Alfalah Hilal card
2 Visa Card
3 Car Financing/Cra Ijarah
4 Home Financing?Musharaka Home
5 Money Grams
6 Import and Export Facility
7 Agriculture Financing
Islamic Banking
Bank Alfalah IBG bank is the reknown bank in Islamic banking sector.
Following the Islamic mode of businesses or Riba free banking It’s
banking network in Pakistan with many of them online branches in major
cities of the country Lahore, Karachi, Gujranwala, Faisalabad, Islamabad,
Peshawar and Rawalpindi.
THE CARING BANK Page 74
Automatic Operations
The operations performed by the bank are highly automated that result in
assurance for the customers that their transactions are completed reliably,
efficiently and securely.
Full Day Banking
One can avail the benefit of the services provided at the bank till 6:00 P.m. which
is highly useful for those customers who find it difficult to leave their officers in
the morning..
ATM Network
The bank has the largest ATM Network cross the country. The customers of BAL
withdraw access their funds any time at all the ATM Sites .
Customer Oriented Network
The priority banking centers of the bank offer an unmatched where the customer
receives highly privileged services in a highly elegant environment. It gives the
chance of experiencing new standards in banking. Designed specially for those
who appreciate only the finest things in life,Priority Banking offers the very
highest levels of personalized banking to match customer’s unique status.
Electronic Banking
The revolution in the banking in the form of electronic banking operations have
opened avenues of excellent, efficient and quick services saving the time and
costs of the customers and fortunately BAL is among those few banks who are
already reaping the benefits of electronic transactions.
Electronic Fund Transfer
BAL management is quite prepared to adopt the latest advancements in
technology resulting in revolution in the banking operations such as check
clearing process, computer based teller equipment, automatic teller machines,
and electronic funds transfers among the others.
THE CARING BANK Page 75
Branch Network
It is the greatest strength of the Bank. With the expansion of bank branches all
over the cities in Pakistan has increased its market share and No. of customer.
The branch network is according to the target market and the people look very
satisfied with the banking system and their progress too.
Sound Marketing
Skillful marketing of the products is being achieving countrywide goals of Bank
Alfalah Limited.
Phone Banking
Every account holder can confirm its balance on Phone and may ask for any
query. There are also 24 hours help lines for customers
Weaknesses
As per Bank policy, advertising and publicity is not extensively emphasized.
Through advertisement customers could be kept abreast with the products and
services.
The main focus of Bank is major cities of Pakistan. It is direly needed to extend
its network and people should be educated about the functioning of bank. Since,
Bank Alfalah has strong set up in UAE and Middle East, therefore, specifically
those areas of Pakistan should be targeted where large number of people is
working abroad. Hence, bank could avail an excellent deposit rate by using its
annual budget specified for network extension. Hence it weakens its progress.
THE CARING BANK Page 76
Short Term Approach and Risk-aversive
Bank Alfalah always introduce new product to compete in the market but does
not take initiative, which shows that BAL plans in Short terms . Critics says that
BAL has become risk aversive.
Low Job Satisfaction
Understanding and the effective management of the human resources is the
most difficult challenge faced not only by the bank but by all the organizations.
Even though the people have been sacrificed in the new organizational
developments, it is becoming clear that the true lasting competitive advantage
comes through human resources and how they are managed.BAL seems to not
focusing
on this highly critical issue as the job satisfaction level of the employees working
at BAL, was quite low.
Lack of Specialization
This famous and useful concept given by Adam Smith in 1776 seems to be
missing in the bank. The employees are constantly rotated from one job to
another job of totally different characteristic in the view of giving them the know-
how of the working in all the departments. But I think this is not a very good
tactics used by the management. Otherwise the situation might be like this ‘Jack
of all and master of none.’
Centralization
There is a high degree of centralization in the bank. Almost all the decision-
making is in the hands of the upper management. But centralization is effective
up to a certain level otherwise it becomes inefficient and at times costly too. I
personally observed that delay occurred in the operations of the employees only
due to the fact that they had not got any instructions from the head office.
THE CARING BANK Page 77
Opportunities
The life cycle of an organization is comprised of threats as well as opportunities.
If we say, today the rates of challenges are too high but simultaneously the rate
of opportunities is also high. It is mandatory to try to make progress with
consistency as well as to adapt changes with the needs of time, in order to cope
up with both conditions.
In the prevailing scenario, Bank Alfalah could penetrate further and could capture
various corporate customers in addition to the retail customers by expanding
their network.
In addition to the excellent routine banking, it has earned a good name by
offering special products like car financing, home financing and credit card. So,
the penetration of these products could enhance the market share.
In the rapidly growing industry of Pakistan, launching of another SBU, Alwarid
Mobile will be an excellent addition towards the credibility as well as
enhancement of Bank Alfalah’s market share.
Bank Alfalah has launched another division known as Islamic Banking. This
new aspect will also attract a large number of people, who don’t want to deal with
interest bearing banking. Hence, it’s a new opportunity where competitors are
limited.
Diversification
They may enter in new business or any other consumer-durable product in order
to promote their name, by introducing Loan for the students, small businesses,
and handicraft industry.
THE CARING BANK Page 78
These are positive external environmental factors effecting the organization.
1) It deals in bulk business.
2) A large amount of foreign investment is attracted.
3) Strong potential for growth
4) Steady increase in Customer Deposits
5) Overseas Operations
6) Branches In Remote Areas
7) Islamic Banking
8) Sharp increase in imports and exports
9) Attractive rate of return
Threats
While doing business, threats are part of the game. Especially, in this era, most
of the financial institutions are working as Private Limited Company and facing or
have a fear of threat from their competitor as well as new entrants.
In order to maintain as well as to enhance the market share, banks always try to
introduce new schemes / packages. Hence, the environment is very much
innovative and adaptive to the needs of customers.
Though Bank Alfalah has a strong footing and maintain a good number of loyal
customer, still bank has threats in various sectors:
a. In Car Financing MCB & UBL are threats however, the expected
car financing of ABN Ambro could also be a threat for Bank Alfalah.
b. In Home Financing Union Bank or to some extent NBP are
threats.
c. In credit cards, Bank Alfalah captured the market share of Citi
Bank and Standard Chartered Bank. Till yet the bank has no
prominent threat. But, the launch of Askari Bank Master Card and
Union Bank Card might be threat after some time.
THE CARING BANK Page 79
State Bank Regulation
As the Bank introduces unique products so they face problem if State Bank Of
Pakistan employ taxes on them which force them to increase the rate of Interest.
Competitors
The Bank focuses to compete all the Banks operating in Pakistan, whether
national or multinational. The major threats of Bank Alfalah Limited are Al Faysal
Bank, Bank Al Habib, Askari Commercial Bank. Union Bank Limited, Standard
Chartered Bank.
High Employees Turnover
As discussed above, the job satisfaction level of the employee is very low
resulting in high turnover, which is bad for any organization as there are huge
monetary and non-monetary costs involved in the fresh recruitments
THE CARING BANK Page 80
SKILLS ACQUIRED
8 week internship at Alfalah bank will surely impact my career in a positive way.
Many things I have learnt there .I have come to know that how to deal with the
customer at bank and how to facilitate with the basic information. During this time
period I this training made me capable of opening an account and what are the
in formations required from customer.KYC(know Your Capital) is the considered
very important in banking. I also came to know how clearing department works
and which are the parties involved in it what is the procedure of clearing for
inward and outward clearing.
I am pleased to have an a good working experience in remittance department.
There was very strict rule and regulation to be followed in this department in
connection to the cash room.
Working in this department provide me additional information about DD (Demand
Draft), PO (Pay Order) and CDR(Call Deposit Receipt). I learnt
What is demand draft, pay orders how it is prepared and which parties are
involved in it? I am now quiet familiar with the clearing procedure for OBC and
the internal transfer at bank.
In short this whole was a good experience at the Bank because this was a
challenging environment for every one who was working there.
THE CARING BANK Page 81
Conclusion
The whole experience of internship was very good. I enjoyed my stay at the
bank. The staff and overall environment of bank is very supporting. Though I am
a commerce student and in the beginning I was unsure about my decision of
selecting a bank for internship. This was because I feared the lack of knowledge
of many of the finance related terms and jargons which will be used in my new
working place. But the employees and their proper guidance aided me in
understanding the operations and functions well.
The 8 weeks spent at Bank Alfalah Limited IBG Kotabdul Malik branch, no doubt
a source of immense learning for me. This practical training program did not only
help me acquire loads of knowledge about the predominant functions performed
by banking companies, but also imparted a lot of training as regards the set of
behavioral traits which distinguish a particular person from the rest of the lot in a
professional environment.
At this point it certainly is significant to write a word of gratitude for the
University’s administration, which makes it sure, that all the students get an
exposure to practical life in relatively well-reputed organizations.
I must share the fact that writing this internship report was an evenly memorable
experience as actually ‘doing’ the internship. I truly hope that this report also
certifies the fact that all of my worthy teachers performed their duties of academic
guidance and moral mentoring with utmost efficiency and effectiveness.
It seems that the priority is given to the corporate customers in Bank Al Falah as
the individuals from middle class have to remind the management of certain
branch to do the needful for them. Customer is the king and customer always
right. Bank is earning profit from the customers. Bank should have a proper
relationship with corporate as well as individual customers. It is recommended
that the management should stress on having satisfactory relationship with
individual customers because they can also provide the revenue in term of profit.
THE CARING BANK Page 82
Recommendation
Alfalah bank IBG is a very good organization. It has earned repute for good
public dealing and also with the business point of view. Here the customers do
not feel any difficulty dealing with the bank due to the hard working staff. In spite
of this effective and efficient behavior exhibited by the bank, there always exists
a room for improvement. I have some suggestions, which can help bank in
further escalating its status as a serving organization. Following are various types
of recommendations for Bank Alfalah and by following these recommendations
this banking company can achieve batter performance in all aspects considered
necessary for competing in insurance market.
1. Bank Alfalah Limited should provide greater facilities to its employees, and
give them bonuses for their hard work.
2. The pay should revise after two year.
3. Bank short give longer lasting impact of caring banking over the clients by
providing them extra care.
4. Bank Alfalah should look for more market in corporate sector
Job Rotation
There should be job rotation for the employees working in the banking either in
the same department or in some other departments.
Banking Professionals
The company should hire banking professionals having experience in their
respective fields that will boost the performance of the company as currently
MBAs are produced for this field so they should be hired for enhancing the
performance of company.
THE CARING BANK Page 83
Attract Customers
The banking company should offer such policies which would attract customers
which are denied by other banking in the market.
BAL is totally centralized bank. In order to improve the working condition of the
branches, modern techniques of decentralization must be adopted. Some of the
authority must be delegated to the lower management and the staff, up to some
extent. This will improve the confidence of the employees, their working
performance and may result in quick and prompt attenuation paid to the
customers.
Control and Expansion
Expenditures must be in control, which currently are very high
Canteen for Employees
Because full day banking system is followed in Alfalah , employees have to stay
in bank for long durations of time. They already have no proper lunch break
timings. Bank must be very careful that in striving to facilitate its customers, it
must not risk the satisfaction level of its employees. They must be provided with
all basic requirements, one among which is the in-house canteen from where
they can get the food whenever they feel like having it.
Socializing
The most important recommendation is that the branch should have more of
social parties and evenings where the employers are invited so that this becomes
a source of motivation. Because working the entire time makes one socially dull.
Also this will aid the employees to develop a family culture and more association
with their working place. Thus together they will be able to out perform the
existing competition in current scenario of banking sector.
THE CARING BANK Page 84
Bibliography
www.bankalfalah.com 20.07.2010 to 25.07.2010 8.00 pm
www.bankalfalahIslami.com 08.08.2010 to 12 .08.2010 9.00pm
www.google.com 25.08.2010 7.00pm
Annual Report 2008 & 2009(Audited by A.F.Ferguson & co. Chartered
accountant Karachi Dated March16,2010)
Banking Circulars
Financial Reporting &Analysis, 10th Edition By Charles H.Gibson
(Business School Edition Printed Access Card)- (Apr 27, 2006)
THE CARING BANK Page 85
Appendix
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