Professional Documents
Culture Documents
ON
BY
AAMNA MUKHTAR
F06B020
INSTITUTE OF BUSINESS & INFORMATION TECHNOLOGY
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The word Bank is derived from Bancus or Banque. History of banking is traced to 2000 B.C in Greece. Priest and Goldsmiths acted as financial agents by keeping money and valuables of people in temples in strong safes. Thus, the first stage in the development of modern banking was accepting of deposits of cash from those who had surplus money with them. The Goldsmiths issued receipts for the money deposited with them, which began to pass from hand to hand in settlement of transaction as people had confidence in the integrity and solvency of Goldsmiths. The receipts were drawn on a way that it entitled the holder to claim that specified amount of money from goldsmiths. These receipts were the earlier bank notes. Thus the second stage in the development of banking was the issues of bank notes. The Goldsmiths discovered all the people who had deposited money did not come to withdraw their finds in cash, only a few people presented the receipts for encashment during a given period of time and they also found that most of the money deposited with them was lying idle. They also found they were being constantly requested for loan on good security. They thus thought it profitable to lend at least some of the money with them to needy persons. This proved profitable for them. Instead of charging interest from deposits, they began to give them interest on money deposited with them. This was the third stage in the development of banking. Through experience, banks came to know that they could keep a small proportion of total deposits for meeting demands of customers for cash and could easily lend the rest. They allowed deposits to draw over and above than the money standing to their credit. They thus allowed the overdraft facility to their deposits and this was the fourth stage in the development of banking. Every bank issued receipts and most allowed 2 overdraft facilities and this caused too much confusion the systems. In order to earn profits, banks did not keep adequate reserves to meet demands of customers for cash. This failure on the part of bankers to return money caused widespread distress among people.
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In order to create confidence among the people, steps were taken to regulate the banking. A conference was held in Nuremberg in 1548 where it was decided that a bank should be set up by the state, which would streamline the banking organization and technique. The first central bank was thus formed in Geneva in 1694. The responsibility of issuing notes is now entrusted to a central bank in each country. With passage of time, activities of commercial bank increased. They dealt with large number of issues such as obtaining funds, advancing loans to business, farmers, households, making investment in stocks, discounting bills of exchange etc. commercial banks are now multi-service organizations and play a very important role in financial markets.
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By following the partition, an expert committee was set up and this committee recommended that the Reserve Bank of India being the Central Bank of the undivided India should continue to function as Central Bank of Pakistan and the Indian currency notes would continue to be legal tender in Pakistan till 30th September 1948. Subsequently it was decided to have separate Central Banks and the State Bank of Pakistan was set up and started functioning from 1st July 1948. Thus the history of banking system in Pakistan started with the establishment of the State Bank of Pakistan which was inaugurated by Quaid-e-Azam Mohammad Ali Jinah on 1st July, 1948. Consequently three banks were established which include Muslim Commercial Bank Ltd. formed in September 1948. Bank of Bahawalpur in October 1948 and National Bank of Pakistan in 1949. Habib Bank also transferred its Head Office from Bombay to Karachi due to partition in August 1947 and it was assisted by the State Bank to finance domestic trade of the country.
ownership was transferred to Abu Dubai Group. The agreement was signed on July 7, 1997. The bank is engaged in commercial banking and related services as defined in the Banking companies ordinance, 1962.
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Bank Al-Falah has emerged as one of the leading commercial banks in the financial sector of Pakistan. Bank has made significant contribution in building and strengthening both the corporate and retail banking in Pakistan. Prioritizing its product portfolio in line with consumer needs and wants, the bank is committed to develop products that give more value to its customer be it a simple bank account or complex financing of a major project. Designing product portfolio in response to customers preferences, banks products like Royal Profit, Royal Patriot and Royal Custodial are prime examples of quality and innovation providing timely banking opportunities to its customers. To continuously offer courteous, professional and advanced banking solutions, banks team has recently been rejuvenated by going through training programs with a focus on Information Technology. With a team of talented, servicededicated professional bankers, Bank Al-Falah commits all its energies, resources and time to cater to all banking and financial needs of customers.
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1.6 MISSION
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
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1.7.2 MANAGEMENT
Mr. Sirajuddin Aziz Mr. Parvez A. Shahid Mr. Shakil Sadiq Mr. Arfa Waheed Malik Mr. Ijaz Farooq Mr. Adil Rashid Mr. Nadeem Ul Haq Mr. Mohammad Yousuf Mr. Bakhtiar Khawaja Mr. A. Wahid Dada Mr. Hamid Ashraf Mr. Zahid Ali H. Jamall Mr. Mohammad Iqbal Saifee Mr. Talib Rizvi Mr. Tariq Mir Mr. Ather Shehab Mr. Mahmood Ashraf Mr. Falak Sher Mr. Imtiaz Ahmad Sheikh Mr. M. Mudassar Aqil Mr. Haroon Khalid
Chief Executive Officer Co-Chairman Central Management Committee Chief Operating Officer Group Head Corporate & Investment Banking Group Head Islamic Banking Group Head Consumer Finance Group Head Operations Group Head Credit & Collections Group HeadTraining & Development Group Head Commercial Banking General Manager Legal Affairs Chief Financial Officer Group Head Audit & Inspection Group HeadPriority Banking & Wealth Management General Manager International Business Executive InchargeEstablishment & Administration General ManagerCredit Monitoring Chief Compliance Officer General Manager Information Technology General ManagerHuman Resource & Quality Assurance General Manager Risk Management
1.7.4 AUDITORS
A.F. Ferguson & Company Chartered Accountants
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President (CEO) Senior Executive Vice President Executive Vice President Senior Vice President Vice President Assistant Vice President Officers Grade I, II, III
Clerical Staff
Non-Clerical Staff
Cashier
Typist
Guards
Messengers
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1.7.9 STRATEGIES
Bank Al-Falah has formulated certain sets of strategies to enable it to achieve its goals and objectives. These strategies are mentioned below: 1. In order to achieve its goals of creating a sound base and presence of efficient modern banking system, Bank Al-Falah has started operation of Automated Teller Machines in all the major areas like Karachi, Lahore, Islamabad and other cities of Pakistan. 2. Bank Al-Falah is committed to building long-lasting relationships through an assertion to service excellence and providing innovative products to meet the changing needs of our valued customers. Although still in its infancy, compared to the exalted banking standards, Bank Al-Falah, backed by a strong Abu Dhabi Group and inspired by the vision of its Board and Management, has built up a strong customer base. The Bank provides a full range of banking services to corporate clients, while applying leading technologies. Today the Bank is well-positioned to provide appropriate banking services to customers. 3. The main focus is building relationships and being known by the way they do business. Management recognizes that a banking relationship requires compatibility, communication, and cooperation and that each customer deserves nothing less than full attention and available resources to meet their financial objectives. 4. Core value and corporate culture is based on the belief that superior personalized service is the most important product. Bank is in the process of getting to know customers by name and understand their business and personal financial needs. This one-on-one, personalized service quality has served as Bank Al-Falah's unique signature since inception and continues to separate it from other financial institutions.
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5. The Bank Al-Falah team comprises of some of the most highly skilled and professional financial experts in banking industry. Managers, lenders and trust advisors offer the unique perspective of knowing and understanding in the local economy. The Management focuses its attention on making informed and feasible economic decisions, bringing better returns and more profitability for investors and customers. 6. Keeping in view the unrest among the Islamic Community on the Interest Bearing Banking the Al-Falah is in the process of target marketing and gives its full attention to this segment of a large population over the world. 7. To acquire the reputation and status of bank which operates on international standard, Al-Falah Bank was to get the credit rating of Pakistan Credit Rating Agency, which gave it the AA- and A1+ in the long term and short term respectively.
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Equity Participation :
displaying the VISA logo. It is accepted at nearly 30 million merchants and 870,000 ATMs in more than 150 countries around the globe and over 10,000 establishments in Pakistan. Al-Falah VISA pays for shopping, travel, entertainment, meals and much more.There are 3 major types of AlFalah credit cards.
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International Debit Card which gives an unlimited access to current / savings account with a simple swipe, at millions of retail shops and ATMs, worldwide. The Al-Falah Hilal Card comes with a host of conveniences and benefits combined with the wide reach of Visa Network enabling it to be accepted at more than 840,000 ATMs and 13 million retail outlets around the world, making it the most acceptable Debit Card available in Pakistan.
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telephone banking facilities to its customers enabling them to carry out banking transactions like balance inquiries, statement requests, product information and exchange rate.
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Profit is calculated on a monthly basis, while it is credited on quarterly basis. Bank Al-Falah pays 7% pa interest on Kifayat Account.
choose the allotted free service to your benefit. The three tiers are as following: a. Silver b. Gold c. Platinum The unique tier based structure ensures that you can avail smooth & cost efficient facilities based on your current level of deposits i.e. Higher the deposit, higher the number of free services. Some of the Salient features include (tier-based): Free Online Transactions Free SMS Debit Alert (Subject to availability) Free PO/DD Free Accidental Cover( Valid for up to two People) Free cash deposit across Pakistan Gold VISA debit/ATM Card with every account
deposit will be automatically renewed upon the expiry of maturity date at the prevailing rates as prescribed by the bank for that period, unless the bank receives a written request from the customer three days before expiry date that he does not wish to renew the account.
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Various sizes to choose from small, medium, large and extra large. Annual locker rent ranges from Rs.1, 000/- to Rs.4, 000/-
Locker rent is waived for customers maintaining a deposit of Rs.2 million or above in a current account or US $25,000/- in a current account or US $50,000/-in a saving account or at managers discretion considering the overall relationship of the valued customer.
Account opening forms dually signed /completed(by all parties in case of joint accounts)
Copy of NADRA issued CNIN or passport. Introduction of BAL account holder. Vernacular form if Signature in URDU. Two photograph with thumb impression in case of illiterate customers.
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Account opening forms dually signed /completed and stamped. Copy of CNIC. Sole proprietors declaration on BAL format required on letter head
Account opening forms dually signed/completed and stamped. Copy of CNIC of all the partners. Partnership deed dully verified by notary public and signed by all the partners.
FormC in case of registered partnership. (Form C contain the all information about the year when the firm is registered)
Introduction.
Account opening forms dually signed /completed and stamp. Copy of CNIC of the entire end. Board Resolution attested by company secretary resolving to open an account in BAL liberty market along with the signing instruction of the
Authorized signatories to operate the account. This resolution must bear Company Seal which must be signed by the two directors (as per the clause in MOA).
Memorandum and Article of Association. (It belongs to the internal & external dealing by firms. In include the information regarding capital, paid in capital, shares of firm, who operate this account etc)
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Certified of trust deed. Certified Copy of by Laws. List of trustees duly certified. Certificate of registration. NICs of all the trustees. Resolution attested by company secretary resolving to open an account in BAL, liberty market branch along with the signing instructions of Authorized signatories to operate account.
This resolution must bear Trust Rubber Stamp, which must be signed by the trust Secretary. .
2.5
This is the first department and is directly interactive with the customers so the main activity in this department is to handle with customers requirements, making their needs fulfilled and make them feel comfortable in the branch and to let then feel that They Really Do Care. The personnel employed in this department really full fills all the required ingredients for the respective designated posts. The bank does not make payment of a cheque bearing a six month or older date if an account is not operated in six months, it is called Dormant Account. Major duties of Account Opening Officer include: Opening new account Maintaining old accounts
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Issuance of cheque books Processing and issuing ATM / Debit / Hilal Cards. Withdrawals Hold mail facility Stop payments Bank statements and bank balance
There are lists of documents which are required for opening a new form that is attached later on with the report. When the report is completed it is then sent to BAL Head Office Karachi, which is confirmed from there and if there is any document missing in the form, it is asked by the concerning branch to provide, but one thing to mention clearly here that the account is opened (account number is allotted) instantly to the customer within 4-5 minutes and the customer can use his/her account instantly, which is really a big advantage for the customers.
they are continuously monitored and updated by the department heads and assisting personnel. If there is any request is received from the customer to update his/her account then it is carried out instantly without any wastage of time which is again a big plus point and a solid proof for the dynamism of the bank.
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2.5.5 WITHDRAWALS
Withdrawals from the account shall be made only by using cheque books supplied by the bank at the request of the customer or by using ATM cards (if allowed)The bank reserves the right to withdraw the cheque book facility without notice if in the opinion of the bank the account is not being maintained or operated in accordance with terms and conditions or for any other reason The customer shall exercise care when drawing cheques and agree that cheque will not be drawn in a manner which may enable a cheque to be altered in a manner which is not readily detectable. The customer shall ensure safekeeping of the cheque book and shall not allow access the cheque book to any unauthorized person. In case of loss or theft of the cheque book or any cheque leaf, the customer shall promptly notify the bank in writing, if fails to give such notice to the bank, the customer shall himself be solely responsible for any loss arising out of any fraudulent use of lost or stolen cheque book /cheque leaf.
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As part of my internship, I was to assist the customer to fill the Bank Statement Form and produce the statement through the banks software and print it as well. 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.
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2.6 CONCLUSION
During my 2 week stay in Bank Al-Falah, I experienced the environmental and cultural gloom of corporate world of Pakistan. I was quite able to understand the operations. I experienced that the communication is the key weapon of any manager that could lead him to resolve/explore any conflict / situation with great ease. I learned the process of opening and closing of different types of account, dormant accounts, issuance of cheque book, customer dealing, balance statement. In this department, I learned how to operate bank smart. I helped my supervisor in collection of zakat declaration forms from customers which were needed in the process of zakat deduction.
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In large branches of Bank Al-Falah, all these jobs are done by different departments, but as Bank Al-Falah Liberty Market is a small branch, all these jobs are done by one department, known as operations. Operations department is sometimes also known as the Transact department.
3.2.1 CLEARING
The clearing department is responsible for the clearing of all cheques that the bank receives daily and the different types of clearing cheques that come in the bank are: Inward Clearing Outward Clearing Online Clearing Outward Bills for Collection
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The officer affixes the OBC stamp on the cheques and writes its individual number from the OBC register. Entries of all OBC cheques are written in an OBC register. An OBC letter is printed, which shows the cheque numbers, the branch drawn on and amount. Original Cheques are attached to these letter and sent to the main Bank AlFalah branch in that area by courier When that area branch clears the amount from the Non-Bank Al-Falah branch, it sends an Inter Branch Credit Advice (IBCA) to Bank Al-Falah Liberty Market and the officer at the branch credits the customer account with that amount
3.2.2 TRANSFERS
Transfers are conducted by Bank Al-Falah Liberty Market Branch, using its software Bank Smart. There are two types of transfers: 1. Internal Transfers 2. Online Transfers
4. When supervised, the cheque will be affixed with the official stamps and kept with the bank.
3.2.3 REMITTANCES
There are two main types of instruments that are used to transfer money, which are as follows: Pay order: Used to transfer money within the city Demand Draft: Used to transfer money outside the city
attach a cheque to pay for the pay order. Pay orders can also be made through cash but mainly it is made through cheque. 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
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3.2.3.2.2 INWARD DDS 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 Al-Falah account holder then the following entries are passed: DD Payable A/c Customer Account
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Later Bank Al-Falah will transfer the Nostro A/c money into the demand account. Nostro A/c Bank Al-Falah Demand A/c Now when the customer will come to take his money, the following entries will be made: Demand A/c Customer A/c
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3.3 CONCLUSION
My third and fourth week was full of learning and understanding of the functions and operations of the clearing department. I got familiar with the process of clearing and its types i.e. inward clearing, outward clearing and intercity, IBC and OBC. I learned about different types of crossing on cheques and about demand drafts, pay orders and telegraphic transfers. As part of my internship, I was responsible to collect cheques from the customers that they deposited, put the official stamps on the different kinds of cheques, register the return cheques in a register and make OBC schedules.
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all your information required and makes a computer generated plan for our your car that suits your choice and your best fits your financial position. Some of the features of Bank Al-Falah Car Financing are: Tenure of 1-5 years Minimum down payment- starting from 10% of car value 5 % extra at time of pre-mature payment. Insurance facility from three different insurance companies Tracking devices with all Suzuki Mehran and all Toyota Models Fixed mark up rates Co borrowers facility
The mark up rates for all locally build new cars is a follows: Financing Product Car Loan for Brand New Vehicles Source: Bank Al-Falah Website 1Yr 14.00% 2Yr 14.50% 3Yr 15.00% 4Yr 15.50% 5Yr 15.50%
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4.2.3 INSURANCE
Renowned and reliable insurance companies are offering the competitive rates of insurance. Pay year insurance premium in advance (at the time of down payment) and remaining in the subsequent equal monthly installment. Rates are varied for different insurance companies: Al-Falah refers to various companies; Following are the most commonly used insurance companies which are offered by the BAL. NAME OF COMPANY RATE OF INSURANCES Adam Jee Insurance EFU Atlas Insurance 4.5 % 5.5 % 3.9 %
Various car types are insured at a different rate, but for cars above 2,000 cc trackers are used for which extra insurance are provided.
There is a new policy that Suzuki Mehran must are issued only with tracker and the insurance + Tracker rate of 5.5 % P.A.
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4.2.4 MARK UP
Offering lowest rate of markup of 13.5%, (per annum), BAL has captivated a major market share and so is the plan for future. This markup is only for the customers who want to get its car financed or leased for One year only, as the duration of financing increases, the markup increases as well, for the car leased for 7 years (Suzuki Liana) the markup is 16 % P.A. Bank Al-Falah's mark-up rates are as follows:
Pak Suzuki Cars All other local assembled Cars Imported Cars
4.2.5 REPAYMENT
Easily affordable installments on monthly basis in the form of postdated cheques will set you free of depositing your rental cheques every month. BAL is offering a very comfortable and affordable repayment plans that can be customized with the requirement of every customers need. For example is a customer can not pay heavy installments then the there can be a easy installment plan with high down payment, so that the customer doesnt can easily pay back the loan. Another facility BAL is giving is that, you can pay back the entire loan (But not before 1 year after disbursement) at any time with the Plenty of just 5 % of the total amount outstanding.
4.2.6 SECURITY
Hypothecation of vehicle in the name of the Bank Al-Falah Limited. When the car is delivered to the customer, on the registration book, BAL marks a lien and this
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entitles the bank to use his all rights incase of nonpayment of loans. Customer has already signed in the legal documents regarding hypothecation, so bank can take all the legal actions. Secondly, the duplicate key of the car is in custody of the bank, and if in any case of taking the vehicle back, bank has all the rights to use the duplicate key. When the loan is paid up, its the responsibility of the bank to return back the Original Papers of the car and the duplicate key.
4.2.7 CO-BORROWER
Acting as a co borrower, will enables your family members (spouse, children -18 years and above) to avail the financing facility and can get the car registered in their names as well. This is another a vital facility which is being provided by the bank to entitle is customers a more comfortable business with the bank. COborrower is a very important concept and has vital significant like and the most important is that if a person is not eligible to get a car by its own, he/she can contact any person (usually close relative) on his/her documents and statement, and most importantly the name on the Registration book is of that co-borrower.
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4.4 ELIGIBILITY
Yes now people get a car loan from Bank Al-Falah to purchase a brand new car if we are: Pakistan National Identity Card holder Over 20 years of age (maximum 60 years in case of salaried and 62 in case of a business person at the time of maturity of the loan) Salaried , Business man of self employed
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The minimum amount of loan facility that the client can have is Rs.200, 000/- and maximum amount is Rs. 4,000,000/-. Client can apply for all brand new Pakistani assembled manufactured cars(Unregistered) You can get a car loan from Bank Al-Falah to purchase a Brand new car if you are o Pakistan National Identity Card Holder o Over 20 years of age (maximum 60 years in case of salaried and 62 in case of a business person at the time of maturity of the loan) o Salaried, Business man of self employed. You can include your spouse, children (18 years and above) or parents as co applicants for the car loan and the car can be registered in their names.
After the Area Office approves the application, the customer will make the down payment, give the bank post dated cheques and sign a legal document with the bank. When this process is complete, a quotation is sent to the car dealer for the specified car, insurance documents are sent to the specified insurer. Later on the car is registered with the Excise and Taxation Officer and is given a number. When all this process is complete, the key to the car is handed over to the customer with all documents relating to the car. When the tenure for the car financing is completed, the bank issues a NOC to the customer. As part of my internship I had to complete the final legal document signed by the customer, by writing in detail about the car, the financing period and witnesses pertaining to the agreement etc.
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4.7 CONCLUSION
This department keeps an all in all fascination for me. It is totally a different category from other departments of those I got experience. In this department I got the opportunity to make practice of some most important topics of finance that I have learned in my university and to exercise those concepts in real corporate world like amortization table, determination of interest rate etc.
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5.2 ACCOUNTS
Most important department of the bank is concerned with Revenues Expenses Assets Liabilities These are the pillars of business. The accounts department is supervised by Mr. Hamid Siddique and assisted by Mr. Majid Malik and Mr. Hafiz Naveed. In this department, all the vouchers are
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posted during one day are sent to Accounts department next day. These vouchers are already posted to computer by the concerned department. The accounts department has to tell that all the vouchers are posted under the right head. Amount, date, stamps, signatures all the requirements for cheques and vouchers are fully checked. If any kind of renovation or construction or rebuilding is done, all is paid from the Accounts department. Like petrol for the car, stationary charges, medical allowances, etc are all paid by this department
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5.4 FUNCTIONS
5.4.1 REPORTS
It generates reports like Statement of Account Activity (a report on the activity of all accounts at Bank Al-falah Liberty Market), Statement of Affairs (a report on the assets and liabilities of Bank Al-falah Liberty Market), Statement of Foreign Exchange (a report on the foreign exchange currencies at the bank) and Statement of Profit & Loss (a report on the income and expenditures of Bank Al-falah Liberty Market). These reports can be generated at daily, weekly, monthly, quarterly or yearly basis as required by the bank.
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5.4.3 BUDGET
Formulation of yearly budgets & targets in consultation with the branch manager is also done by the accounts department.
5.4.5 PAYMENTS
The accounts department is responsible to pay vendors on behalf of the bank with authorization from the branch manager. It also has to amortize large payments and calculate depreciation of branch assets.
the operations department. After collecting these vouchers etc from the departments, we need to check if all stamps are stamped on these vouchers etc.
5.4.6.4 PACKING
After the activity is checked, all sorted vouchers are counted, both debit and credit and then packed by totaling the vouchers.
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5.5 CONCLUSION
During my sixth week of internship I learned the process of checking, maintaining, and record keeping of accounts i.e. all operation of the branch, income from operations and expenses and reporting to the area office about all the operations.
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6.1 STRENGTHS
Bank Al-Falah is considered to be a very sound bank in the financial circles. A bank, where the customers can safely keep their money as long as they want. I am pointing some of the major strengths of the bank
6.1.3 LOCATION
Bank Al-Falah has opened all its branches at commercial areas so that the customers or clients face no problems in reaching to the bank. For example, Circular Road branch for being situated in business and commercial hub of Lahore has second largest volume in trade finance.
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banks and financial institutions. Towards this pursuit, BAL has developed excellent business relations with foreign banks, whose support in terms of lines of credit extended to the bank, has enabled it to handle the ever-growing trade volumes. During year 2000, the bank handled foreign trade business in excess of PKR 30.6 billion, representing an increase of 92% over the previous year.
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6.2 WEAKNESSES
Perfection is only the claim of Allah Almighty. No other being living or dead can say this for itself. Similarly, Bank Al-Falah also has some shortcomings that need to be mentioned:
6.2.1 ADVERTISEMENT
BAL has formulized a lot of products and services for its customers, even more than other commercial banks, but any advertisement on electronic media has not been seen. Since, BALs major competitor Union Bank Limited has started large media campaign, so keeping in view these threats, Bank Al-Falah should emphasize more on its advertisement.
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6.3 OPPORTUNITIES
Bank Al-Falah has grown up its business with a very high pace and it has got tremendous popularity, even with in a very short span of time. There are many opportunities for the bank and by availing that it can stand amongst the top foreign banks.
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6.4 THREATS
6.4.1 ECONOMIC CONDITIONS
Despite the difficult circumstances that confronted the banking sector in particular and the country in general, Bank Al-Falah has been still highly profitable. But, the facts cant be denied and there might be an adverse impact of such situation.
6.4.2 COMPETITORS
Bank Al-Falah is facing a strong competition by its major competitors; Union Bank and Askari Commercial Bank. Business of these banks is also growing with very high pace. The SWOT analysis of the bank signifies that its strengths overcome its weaknesses and its opportunities are more than its threats. This is a positive sign for any organization.
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CHAPTER 7 SUMMARY
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7.1 SUMMARY
With the development of economies and globalization, exposure to corporate world and its culture is becoming a necessary and valueable experience for college graduates entering the job market. Experience after BBIT brings a significant edge to individuals like me when seeking career employment. Successful completion of internship further develops character; gain an increased awareness of skills, attributes, personel qualities ad values. The banking industry is also reaping the fruits of this economic boom by growing rapidly over the past few years. There are a number of mergers happening in the economy with foreign investments coming into the banking sector. It has been thirteen years since the establishment of Bank Al-Falah, and since its establishment it has aimed to become the leading bank of Pakistan by that provides outstanding services to its customers. The bank has seen phenomenal growth in the past few years by opening more branches in the country, increasing the deposit base, while also increasing the assets and profits of the bank. The services that Bank Al-Falah provides have a great market penetration not only because of their features but also the profit and markup rates that they charge. Also the products that Bank Al-Falah provides cater to sector of the economy. The six week experience, as an internee in this organization was very useful. It gave me an opportunity to apply my theoretical knowledge to practical field. It was absolutely an interesting and edifying experience. My foremost objective of this internship project was to apply classroom theory to real work situations, and to gain a richer understanding about them that made me learn more about my chosen field.
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During my first 2 weeks stay in Bank Al-Falah, I experienced the environmental and cultural gloom of corporate world of Pakistan. I was quite able to understand the operations. I experienced that the communication is the key weapon of any manager that could lead him to resolve/explore any conflict / situation with great ease. After 2 weeks I joined operations department, where I got familiar with the process of clearing and its types i.e. inward clearing, outward clearing and intercity, IBC and OBC. I learned about different types of crossing on cheques and about
demand drafts, pay orders and telegraphic transfers. As part of my internship, I was responsible to collect cheques from the customers that they deposited, put the official stamps on the different kinds of cheques, register the return cheques in a register and make OBC schedules. Car finance department keeps an all in all fascination for me. It is totally a different category from other departments of those I got experience. In this department I got the opportunity to make practice of some most important topics of finance that I have learned in my university and to exercise those concepts in real corporate world like amortization table, determination of interest rate etc. In my last week of internship I was in accounts department where I learned the process of checking, maintaining, and record keeping of accounts i.e. all operation of the branch, income from operations and expenses and reporting to the area office about all the operations. The working in this department is quite boring like checking accounts on daily basis is a very hectic job. While doing my internship, I realized that this field has more opportunity for career growth. There are loads of advantages connected with this field. One of the foremost advantages is opening up your mind. Starting the day with reading newspaper is like religion for all managers. Every moment, information plays an important role. Indeed, information is a religion for financial organizations. The
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top management of the bank is always developing strategies that cope with unexpected challenges to deliver products and services more efficiently. An internship is an excellent way to determine if the industry and the profession is the best career option to pursue. I believe an internship program is not only valuable for a fresh graduate, but also for the employers and IBIT itself. For employers, it not only helps to establish a pool of potential employees who have demonstrated their abilities, but also benefits from introduction of fresh and new ideas. On the other side, for IBIT, student feedback can bring a valuable and effective curriculum improvement according to the needs of the ever changing environment. It also reinforces positive relationships with the business community, increases rapport with community interest, and encourages community support for university programs. In last I would like to share some of my good experiences and learning that I got familiar with during my stay in Bank Al-Falah. I could say that I found the key to success in corporate world after having my stay in that meadow for six weeks. Firstly, I think, honesty is one of the primary qualities a man should have to be successful. Because in corporate world, if you are honest, people trust you, they trust you with their money. Second would be hard work, there is no substitute for it. You just have to toil in there and the results come. I have always been a firm believer in hard work. If hard work doesnt pay off in six months, it does in nine, if it doesnt pay off in nine, then it pays off in a year, but you just have to keep toiling away. Third is self motivation. I think many other people rely on others to get motivated; you need to just go out there on your own and do your best.
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CHAPTER 8 RECOMMENDATIONS
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The lower staff employed at Bank Al-Falah should also be given a chance to succeed in life by training them in different simple jobs at the bank, which my include sorting of cheques, phone banking etc.
8.1.3 INCENTIVES
Incentive schemes should be developed for the employees that can help motivate them, which might include: Personal loans and car financing facilities for all ranks of employees. Scholarship programs for all employees. Introducing employee awards at branch and regional levels. Job rotation programs to enhance the skills of employees.
8.1.4
PRIORITY
BANKING
AND
BUSINESS
DEVELOPMENT DEPARTMENT
There is no priority banking department at Bank Al-Falah, like that of other bank. A priority banking department should be developed so as to give even more exclusive and customized services to high end customers with large deposit accounts. Also Business Development Department should be developed in all branches, so that they can actively find prospect customers to take up products from Bank Al-Falah.
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number of ideas generated and even produce innovative products for the bank that might give them the edge.
8.1.6 MARKETING
BAL has formulized a lot of products and services for its customers, even more than other commercial banks, but any advertisement on electronic media has not been seen.So, I think that there should be a proper marketing department and advertisement expenditures of the bank should also be increased to improve its visibility and to publicize its financial schemes.
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8.2.2 SEMINARS
There should be proper arrangement through which the students of senior batches who have passed out should come and meet with junior students. In this way the students who are still studying will have the knowledge of jobs. Their exposure to the real business world will be broadened. Their contacts will be increased and when they would need guidance they can get it from their own seniors. Seminars should b held in which the business representatives should visit our institution. In this way, the faculty as well as the students will know that what is required in the business world now-a-days. One need to b equipped with if one
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wants to get better job. Moreover, the business organizations will also know the caliber of our students. They should know that what subjects are taught to us and what is the value of our degree.
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