ABOUT HR

Human Resource Division at Bank Alfalah has been restructured to enable it to meet the challenges of a fast expanding network and staff strength of around 5,000. HR Division has now established HR offices, as well as Training & Development Centers at Karachi and Lahore. The HR office and TDC at Karachi cater to HR and Training needs of all branches in the southern areas, as well as Head Office units and SBUs located in Karachi. Similarly, the HR office and TDC at Lahore cater for HR and Training needs of all branches in the northern areas, as well as Head Office units and SBUs located in Lahore. There is another significant development in HR management methodology. Both HR offices have nominated a number of HR Relationship Managers (RMs), who have been assigned a number of areas and HO offices. The RMs has been trained to provide timely and courteous service to staff and management of their assigned areas and offices by proactively interacting with them on a periodic basis. Other developments in HRD relate to institutionalize the processes involved in HR management. The banks HR Committee has been revamped and has become a guiding force behind all HR management activities at BAL. A Grievances Committee has also been constituted to handle all types of grievances of BAL staff. Similarly, a Disciplinary Action Committee has also been formed to timely handle disciplinary issues. Our Mission: Formulation, acceptance and implementation of a strategic vision through: Managing change and conflict. Developing commitment to shared values. Constantly and consistently aligning structures, skills, staff, culture and systems to shared values. The Team: There are now four distinct HR teams managing their respective centers under the overall supervision of the Executive In-charge HRD. The EIs own support team consists of three individuals, who help him in their own areas of specialization. 1. HRD Office Karachi. 2. HRD Office Lahore. 3. Training & Development Centre Karachi. 4. Training & Development Centre Lahore.

HR COORDINATOR
In order to provide timely HR services to staff members, as well as to ensure compliance with HR policy, HR Coordinators have been appointed in various areas and HO Divisions. Training sessions have been held by HRD for HR coordinators in order to equip them with HR philosophy, policy and processes. More such sessions are planned to be held periodically.

OBJECTIVES, CONTENTS & COMPLIANCE

Objectives of HR Policy Guidelines: The HR Policy Guidelines have been prepared with the objective of providing information and guidance to staff members and management of branches and other working units of the Bank. These guidelines should remain available with Branch Managers (in the case of branches), Unit Heads, Executive-in-Charge at Head Office and Area Managers. Compliance: Management of branches and other units of the Bank must ensure compliance to the provisions contained in this HR Policy Guidelines in letter and in spirit. HRD, with the help of Area HR Coordinators, will monitor compliance of these policy provisions. Scope & Application: These Service Rules apply to all employees of the Bank and supercede all previous rules and regulations issued from time to time. Rules pertaining to contractual staff are documented in the service contracts issued to such employees. All employees of the Bank will conform to and abide by all the rules and regulations of the Bank including these service rules, with such amendments as may be effected from time to time. Amendments to Service Rules: The contents of this HR Policy Guidelines may be amended from time to time to suit the requirements of the Bank. The authority to amend these rules rests with the Central Management Committee (CMC) under the direct supervision of the CEO which will be subsequently approved by the Board. Amendments in this HR Policy Guidelines will be advised to all units by HRD.

BASIC WORK PLACE RULES

General norms of office behavior that all employees of Bank Alfalah need to abide with are briefly described below. Office Discipline & Decorum: All staff members working in any Unit/Branch will Observe, comply with and obey all orders and directives which may, from time to time, be

given by any person or persons under whose jurisdiction, supervision or control they may be placed. Conduct them in orderly and civilized manner so as to maintain a pleasant and conducive working environment, and not to disturb their colleagues working in close proximity. To use low tone of voice and not speak loudly to colleagues across desks. Dress Code: Dress code for all male employees of the Bank is suit and necktie. Female employees should also dress elegantly (keeping in mind our cultural norms) without being ostentatious. Employee may wear national dress on Fridays. Similarly, staff members of units not dealing directly with customers may attend office without jackets and neckties (business casual dress) on Saturdays. Non clerical staff i.e. messengers, security guards, office boys, machine operators, maintenance staff will always be in uniform. Courtesy and Manners: Employees of Bank Alfalah will maintain utmost courtesy and exemplary manners when interacting with clients or with each other. Any violations of this code should be brought to the attention of supervising officials as well as the HRD for their information, record and remedial or disciplinary action. Smoking and Chewing Paan (beetle leaves) at the Office: Smoking and chewing of Paan is prohibited in all offices of the Bank. Customers may politely be informed of this regulation, introduced in the interest of health and welfare of all concerned as well as keeping the premises neat and clean and pollution-free. Through these rules Bank Alfalah demonstrates to the outside world that as an institution it cares for the people and the environment. Attendance and Punctuality: Punctuality is one of the basic rules of office discipline, which needs to be meticulously observed by all employees of the Bank. Office timings of the Bank are as follows. These timings may be changed by the Banks management to comply with governmental regulations/State Bank of Pakistan. Monday to Thursday: 9:00 a.m. to 5:00 p.m. (with one hours lunch/prayer break) Friday : 9:00 a.m. to 5:00 p.m. (with two hours lunch/prayer break) Saturday : 9:00 a.m. to 1:30 p.m. (without break) Timings during Ramadan: Monday to Thursday & Saturday: 8:30 a.m. to 1:45 p.m. (without break) Friday : 8:30 a.m. to 12:30 p.m. (without break) Timings in some areas in Pakistan and overseas branches may vary to comply with local laws. Certain staff members may be required to observe different timings to suit the needs of the Bank. Branch Managers and Heads of HO Divisions and Departments must ensure that their staff observes these timings.

Employees, who are going to be late for any reason, should inform their Branch Manager as early as possible. Employees at Area Offices should inform the respective Area Managers and those at Head Office should inform the respective EIs/ Departmental Heads. Management may, at its discretion, excuse late arrivals in case of natural disasters or extraordinary circumstances. All staff will sign the attendance register upon their arrival in the Bank, mentioning the time of arrival. Alternate Saturday Off: All Branches/Offices, after obtaining approval from concerned Area Managers / Executive-In-charge, may arrange Alternate Saturday (weekend) Off facility for their staff, provided that: Service to external / internal customers does not suffer. Security of the Banks assets is not compromised. Concerned branch / office clearly lays down a Alternate Saturday Off roster indicating names of staff members acting a back ups to those. Late Sitting: It is recommended that all employees of the Bank should endeavor to leave the office maximum by 06:00 p.m. but in no case later than 07:00 p.m. on normal business days, and by 3:00 PM on Saturdays (weekends). Code of Ethics: All staff members must sign the Code of Ethics document which contains details of norms of office behavior.

RECRUITMENT, SELECTION AND PLACEMENT

Initiation of Staff Hiring: All units/Branches of the Bank should systematically forecast their future staffing requirements for timely induction of competent high quality staff. Such forecasting should be done in the month of October/November for the next year. Requirement of additional staff should be intimated to HRD through Area Managers offices (for branch banking staff), and in the case of HO Divisions/Departments, through the concerned EIs office. Staff hiring may be done in batches, in small groups or individually. The management of the Bank may, at its discretion, employ expatriates. The Bank complies with the relevant provisions of the Emigration Ordinance/Law when hiring such employees. Hiring of Batches: When a whole batch of fresh officers is hired, they are first trained at the Banks Training & Development Centre (TDC) and then posted to Branches/HO Division based on requirement. These batches will be hired under the following categories: Management Trainee Officers (MTOs)

Operations Officers (OOs) Cash Officers (COs) Business Developments Officers (BDOs) SME & Lease Officers (SLO) Before initiating hiring of batch officers, HRD informs all units of approximate timings of such hiring and enquires about their city-wise requirements before the hiring process starts. Hiring in Small Groups: Hiring in small groups may be done according to planned phases of expansion of existing branches/units, or upon establishment of new branches/units, or for creating/replenishing staff pools maintained under the supervision of Area Managers in major banking centers. Individual Hiring: Individual hiring is to be done from time to time when a branch or unit has a need to induct additional staff, or for replacement of outgoing staff. Minimum Entry Requirements: Minimum entry requirement for employment in Bank Alfalah Ltd. in officers cadre is graduation from a recognized university of home country or abroad. However, condition of graduation may be waived by competent authority to suit the requirements of the Bank. Persons deputed by External Service Providers must possess matriculation or higher degree. However, condition of matriculation may be waived by competent authority to suit the requirements of the Bank. Recruitment of Close Relatives: BAL does not prohibit employment of close or blood relatives of current employees, provided that they meet required eligibility criteria, no conflict of interest is likely to arise and prior approval is obtained from competent authority. Candidate once appointed should not be placed in the same Branch/Unit in which his close/blood relative is already working. All candidates, at the time of interview are required to disclose their relationship with the existing employees in their application form. Selection Responsibility and Authority: The schedule given below summarizes the assignment of hiring authority and responsibility:Dept. Br. Regular/Contractual Head Mgr. HRD EI Panel AM/ EI HRD Interview CEO

Officer I III Officer IV VI Officers VII VIII Officers IX Outsourced Services

R R --R R A

R Test R -----R R Recommended Approved

A R R -A

Oversee R R -Oversee

-R R ---

-A A A --

All appointments of Branch managers, Range VII and above require subsequent ratification from the board. Selection Test: All regular and contractual candidates for Range I, II & III must undergo a selection test arranged by HRD / TDC. Those obtaining 50 % or above points (allowing for two grace marks) will go to the next step in the hiring process. However, condition of written test can be waived for contractual employment, especially for product departments. The employees of these departments will however have to appear for the test before their services are regularized. Psychometric Testing: HRD will soon initiate psychometric testing of all candidates for regular employment in Bank Alfalah. Only those obtaining satisfactory rating (as defined by consultants involved in the process) will be taken to the next stage. Selection Interview: Selection interviews should be conducted and evidenced by duly filled interview sheets, as follows: For Branch Staff: By Branch Manager & Area Manager For Branch Manager & Area Office Staff: By concerned Area Manager. For Product Departments Staff: By concerned Manager & Head of Product Department. For Head Office Division Staff: By concerned Manager & E.I. Panel Interviews: Candidates for Ranges IV and above will be interviewed by panels of senior officers at Karachi and Lahore. Panel members will be nominated by the CEO. Medical Examination of the new-joiners: If the Bank deem fit, a new joiner will have to undergo a medical examination from a Registered Medical Practitioner before joining the Bank. In such cases the evidence of such examination should be placed in the personal file of the employee, maintained at HRD. Verification of Antecedents: officers and their HR will arrange verification of references provided by the highest educational degree/certificate from the concerned

university/board. Feedback from his/her last employer will also be obtained with regards to his/her honesty, integrity and performance before confirmation of services. Probationary Period & Confirmation of Services: As a standard practice, service of new entrants to Bank Alfalah Ltd. is to be subject to a probationary period. Length of this period is to be determined as follows: For those with less than five years of prior relevant experience: Six Months For those with prior relevant experience of 5 years and above: Three Months Confirmation letters will be issued by HRD on recommendation of concerned Branch Managers and Area Manager. In the case of staff members at Head Office, recommendation of concerned E.I. is required. For Product Department Staff, concerned Product Department Head may recommend confirmation cases. In case no recommendation for confirmation is received by HRD after 15 days of due date, HRD will issue a standardized confirmation letter. Renewal of Contract: Officers hired on retainer ship contract will be relieved from the services of the Bank unless the contract is renewed. Before the end of the contract period, the Head of concerned Branch/Unit should fill a Contract Renewal Form and forward the same to HRD through concerned Area Office/Executive-in-Charge. In case of renewal of contract for further one year concerned officer will be eligible for salary increase (if recommended by the concerned AM/EI) based on his/her performance rating. Placement of New Entrants: As far as possible, attempt is to be made to select candidates belonging to the area where they need to be posted, in order to minimize disturbance and dislocation to newly recruited employees. However, in terms of the Banks service contract, services of an employee are transferable anywhere in the country or overseas branches to suit the requirements of the Bank.

JOB DESCRIPTION / JOB ROTATION

Job Description: All new employees of the Bank should initiate preparation of their Job Description and should get it finalized with the help of their immediate supervisors within 30 days of joining at their place of posting. The Job Description duly signed and agreed by both the new joiner, his/her immediate supervisor and manager should be sent to HRD for record. Concerned Branch Managers ( and in case of Head Office Staff, Concerned E.I.s) will be held responsible for non compliance of this requirement The purpose of the Job Description is to clearly define the job responsibilities of each employee and to ensure that the employees are made aware of and understand what is expected from them.

Job Rotation: Periodic rotation of staff between various assignments is used by Bank Alfalah as a means of broadening areas of expertise of concerned staff. This is also done to ensure smooth transition from one job to another in case a staff member leaves the job, or is transferred to another job or location. Staff members posted at branches should be rotated periodically according to the following guidelines: For clerical, supervisory and officer level positions, rotation may be done upon completing around two years in one assignment. For Departmental Heads or Managers the maximum period in one assignment should not exceed five years.

INDUCTION, TRAINING & DEVELOPMENT

In-Service Training Training Need: The objectives of training activities are to keep BAL employees abreast of latest professional knowledge and skills in all areas of banking, as well as to reinforce a passion for the highest quality of customer service at all levels. Annual Training Plan: An Annual Training Plan shall be circulated by HRD in December for both Training and Development Centers, keeping in view the requirements of various departments of the Bank identified through the annual appraisal form and feedback from Audit Division. The plan would list all workshops, courses & seminars to be offered during the next year. Minimum Training for All: It is obligatory for each employee of the Bank to attend at least two days of training in a calendar year. Branches, Area Offices and Head Office Divisions/Departments are to send their nominations for training courses in advance (as prescribed by the concerned Training & Development Centre). Employees are encouraged to take initiative and get them nominated through their supervising officers for training courses relevant to their needs. Induction Training: TDC shall organize full day induction sessions for new joiners, both at Lahore and Karachi. These one-day programs are aimed at giving a broad overview of Bank Alfalahs corporate culture, values, norms, products and services to new employees. New joiners are also briefed on employees benefits as well as service rules. Heads of Branches and Units must ensure that all newly inducted staff members attend these sessions, preferably within the first three months of their joining. Batch Training:

As per the requirements, the Bank recruits batches of fresh graduates under various schemes through a competitive process and offers them comprehensive training. Batch Trainees may be asked to go through on-job training by way of structured rotation programs. External Training: In order to augment in-house training efforts, external training providers will be utilized on a periodic basis, by nominating Bank Alfalahs employees to external courses. Alternatively, external training consultants may be invited to conduct training programs exclusively for BAL employees, whenever deemed necessary.

INTERNSHIP POLICY
Internship Policy: Bank Alfalah offers internship positions to eligible students from well known educational institutions. Branches/Offices of the Bank may offer internship positions to presentable and responsible looking candidates who fulfill the eligibility criteria. Only a small number of candidates may be offered internships at a given point in time, as per guidelines issued by HRD. Major objectives of offering these positions are: To provide practical training and exposure to intending interns as a service to students, educational institutions and to the community as a whole. To evaluate fresh interns as a potential source of future hiring. General Provisions: - Duration of Internship: Up to maximum of two months - Eligibility: Candidates for internships should be graduates or should be studying for a graduate degree. - Monthly Stipend: A stipend of Rs.1,500/- per month shall be paid to interns upon completion of the internship period. Non-graduate student if accepted for internship will not be eligible for any stipend. Approval Authority: Location Internship at Branches / Area Offices Internship at Head Office Division / Product Department Approval Authority Area Manager/Country Head (Internship letter, to be issued by Area Office/Country Office). Concerned E.I. (Internship letter, to be issued by HRD).

Area Managers/Country Heads will send a copy of internship letter duly accepted by the intern to HRD for record. Issuing of Internship Certificate: Internship Certificate is an official document and may only be issued under the signatures of Area Managers/Country Head or authorized officers

at HRD. No other branch or office of the Bank is authorized to issue Internship Certificate. Copies of Internship Evaluation Form and Internship Certificate should be retained in Branch/Unit files for future reference.

SALARY ALLOWANCES & BENEFITS FOR PAKISTAN

Introduction: Staff monthly salary is to be disbursed before the end of each month usually on 26th/27th of the month. Salary & allowances of each employee is a confidential matter. Those officials, who due to reasons of procedural expediency, are in the knowledge of salary particulars of their colleagues, must treat such information as confidential. Their failure to do so may result in disciplinary proceedings against them. In order to disburse salary on time, branches are advised to ensure that all salary amendments must reach HRD latest by 20th of every month as per. Advance against Salary: Employees in need of funds for an emergency may be allowed advance against salary for the current month to be adjusted in full on disbursement of salary. Since this facility is only meant for emergencies, no staff member may be allowed to make a habit for applying for such advance. Approval shall be obtained from the Departmental Head/ Branch Manager and forwarded to HRD. As a matter of policy, a staff member may avail this facility only twice during a calendar year under the following conditions. If the staff member is proceeding on leave and next payday falls during vacation period. In Case of Emergency: Salary deduction on account of leave without pay will apply to the entire salary package of the concerned employee, including allowances and perks. Moreover, weekends and public holidays falling during this period will also be considered as part of leave without pay. - Salary & Allowances for Officers & Executives (Minimum starting pay) - Salary and allowances of officers and executives of the Bank are as follows: (All Amounts in PKR): Range Basic I II III IV V VI VII VIII 3,500 5,500 8,000 12,000 16,000 20,000 25,000 50,000 House 1,400 2,200 3,200 4,800 6,400 8,000 10,000 20,000 Util. 350 550 800 1,200 1,600 2,000 2,500 5,000 Conv. 500 750 1,000 1,250 1,500 1,750 Furnit. Drivers Maint. All. All. - - - - 1,500 - 1,500 - 1,500 4,500 2,500 6,000 3,500 Telep. Gross Resid. 3,000 4,000 5,750 9,000 13,000 20,750 27,000 33,250 47,500 88,500

10

IX

65,000 26,000 6,500

7,500

5,000

5,500

115,500

Salary & Allowances for Non-Officers (Minimum starting pay): Cadre Basic House Utilities Conveyance Gross Supervisory Secretary / Protocol / 5,000 2,000 500 400 7,900 Any supervisory Position Clerical Assistant / Cashier / 3,500 1,400 350 300 5,550 Typist / Technical Staff (Maintenance) Non-Clerical Peon / Tea / Office Boy Driver / Guard / Non2,000* 800 200 200 3,200 Technical Staff (Maintenance) / Sweeper / Cleaner - Reimbursement Limits (for Officers and Executives) (Amounts signify maximum limits payable on a reimbursement basis). Salary Car fuel Mobile News paper Magazine Club Range (**) Phone Limit (****) (*****) Member(***) ship ^ I No No No No II No No No No III No*** No No No IV 100** No*** No No No V 150** No*** No No No VI 200** No*** No No No VII 250** 2,000*** **** **** No VIII 300** 3,000*** Yes Yes No IX 500** 4,000*** Yes Yes 2,000 ** Fuel in liters only in cases where Bank car has been provided to concerned officer. High performing staff members, whose job function necessitates extensive travel, may be authorized some fuel expense reimbursement. All such cases should be forwarded to HRD by concerned branch (duly recommended by Area Manager/Unit Head) for processing, approval and record keeping. Cases where monthly expenses of an officer exceed approve limits should be referred, indicating reason, ( duly recommended by his / her supervising officer) to concerned Assistant Executive-In-Charge, HRD for obtaining necessary approval & record keeping.

11

***

A small limit may be allowed on functional basis, to be advised through HRD. Based on functional requirement, cellular phone limit for following will be as under : Branch Managers Rs.3,000/- p.m. Area Managers/Executives-in-Charge Rs.4,000/- p.m. Cases where monthly expenses of an officer exceed approve limits should be referred, indicating reason, ( duly recommended by his / her supervising officer) to concerned Assistant Executive-In-Charge, HRD for obtaining necessary approval & record keeping.

**** Allowed only for Branch Managers and Senior Management at HO: One mass circulation & a business paper ^ Bank will provide club memberships of a local club to Executives-in-charge and Area Managers/Country Heads with fixed monthly subscription fees. (The CEO may use his discretion to make exceptions to these rules). One time approval of CEO should be obtained for joining fee & monthly subscription in each case.

Accommodation: At the discretion of the Banks Management, furnished or unfurnished accommodation up to reasonable rental value may be provided to senior officers, transferred from their permanent locations to fulfill the Banks requirements. Other staff members when transferred out of city of the permanent residence to suit the Banks requirements may be entitled to the following additional allowance (this needs prior approval from HRD before transfer is implemented). Officers transferred to new location at their own request will not be entitled for this allowance):(All amount in PKR per month): Salary Range I III IV VI VII Married Officers 6,000 8,000 10,000 Unmarried Officers 4,000 6,000 8,000

(In specific circumstances, for managerial assignments, CEO may approve higher limits) Furniture Facility: - Eligibility This facility is admissible to those confirmed Officers in Salary Range IV & above in lieu of Furniture Maintenance Allowance who have completed minimum two years service with Bank Alfalah Limited. Entitlement:

12

Officers in Range IV VI VII VIII IX

Amount in Rupees 150,000 250,000 350,000 500,000

General Rules: - If an officer wishes to avail Furniture Allowance in lieu of Furniture Facility he/she will be eligible to draw a monthly allowance. - Once the amount under furniture limit is fully depreciated (or remaining balance is adjusted by the concerned officer), he/she may start drawing Furniture Allowance as per rules from the date of adjustment of outstanding balance. - The amount sanctioned will be utilized to buy electronics items, carpet curtain and wooden furniture in following proportion:Electronic Items / Carpets & Curtains Furniture Items 75% of the sanctioned amount 25% of the sanctioned amount

- Furniture items provided will be the assets and property of the Bank and will be depreciated on straight line basis as follows:- On resignation/termination, the officer will have to pay an amount equivalent to book value of the furniture to the Bank against furniture and other items purchased by him/her. Other Conditions: - Payment to be made directly to the vendor upon production of proper Invoice/Bill by the officer. Applicable Withholding Taxes will be deducted from payable amount. - Furniture Allowance, if being drawn, should be discontinued from the month during which first drawdown is made. Approving Authority: Assistant Executive-In-Charge, Human Resources Division Fuel Allowance: At the discretion of the management, officers posted in business units such as Car Finance, Credit Cards, BDO, Home Loans, Agriculture Finance, Credit Marketing, are allowed payment of Fuel Allowance ranging between 50 ltrs. to 200 ltrs. (based on their functional requirements if recommended by concerned Heads of Division / Departments). Mobile Phone Facility: Those who are below salary range VII but due to their functional requirement need mobile phone facility, will be eligible for reimbursement of upto maximum Rs.1,500/- per month subject to maintenance of their own mobile phone set. This facility will be available based on recommendations from AM/EI and approval from EI HRD.

13

Title Allowance: Branch Managers, Asst. Executives-in-Charge, Product Heads, Area Managers and Executives-in-Charge may be paid Title Allowance till such time they hold these positions. Officer Position Executives-in-charge Area Managers Product Heads Assistant Executives-in-charge Branch Managers Chief Cashiers Tellers/Cash Officers Bank Car Facility Objective: The objective of the Bank car facility is to provide Banks maintained transport facility to the Banks senior officers, to be used by them for office-cum personal use. Eligibility Bank Car: Eligibility Bank car will be provided to Executives in range VII & above upon joining the Banks service, or on being promoted to such salary range. Entitlement Types of cars and fuel entitlement for various salary ranges are detailed below: Salary Range VII VIII IX Type of Car 1300 CC 1300 CC GL or Equivalent 1500 CC / 1300 CC Fuel Limit (In liters) 250 300 500 Bank Maintained Yes Yes Yes Allowance in PKR per month 35,000 25,000 20,000 15,000 10,000 3,000 2,000

Management of the Bank may allow Bank car facility (1000 c.c.) plus fuel upto 200 liters per month to officers in salary range VI, based on their functional requirements if recommended by Executives-in-Charge/Area Manager. Second Car for Executives-in-Charges and Area Managers: Executives-in-Charges and Area Managers will be eligible to have second car (1300 c.c.) based on their functional requirement. Area Managers may also avail additional 100 liters fuel in addition to their fuel entitlement mentioned in above (upto maximum 500 liters). Repair & Maintenance: Maintenance costs of Bank cars allotted to the Executives/Officers will be borne by the Bank.

14

Profit Bonus/Special Cash Prize: Profit Bonus will be paid to the employees as and when declared by the Banks Management, based on guidelines provided in the respective bonus circular. Special cash awards/Ex-gratis/Bonuses may be paid based on outstanding performance with the approval of CEO. Provident Fund (PF): All permanent confirmed employees are eligible for membership of Bank Alfalah Ltd. Employee Provident Fund Scheme. An employee will contribute an amount equivalent to one months basic salary in a year (8.33% of monthly basic salary) towards the Provident Fund Scheme and an equivalent amount will be contributed by the Bank. PF Deduction: PF deduction will continue to be made from monthly salary even if an employee has resigned and is working during the notice period. Membership of PF Scheme will be automatically cancelled on the last working day of the notice period. Cash Award on Passing Institute of Bankers Diploma Exams: Bank Alfalah, as a matter of policy encourages its employees to appear for the IBP Diploma Exams, the syllabus of which has recently been upgraded and expanded to include additional subjects important for professional bankers. Towards that end, it has been decided to award cash prizes to those employees who pass the said exams, as detailed below: Stage of IBP Diploma I II III 1st Attempt 50,000 75,000 100,000 2nd Attempt 30,000 50,000 75,000 3rd Attempt Onwards 10,000 15,000 25,000

Reimbursement of Professional Courses Fee: Bank Alfalah encourages its officers and staff to enhance their professional competence to meet the growing challenges of the financial industry. Part of the cost of registration/admission/exam fees will be reimbursed to those employees who undertake and successfully complete higher degrees and professional courses related to banking and finance (from recognized institutions) to improve their competence and qualifications. Details of this facility are available with HRD. In case an employee resign within one year of last payment received, all payments made in respect of above will have to be refunded to the bank by the said employee. Detailed policy guidelines are available in HRD record. Staff Insurance:

15

The Bank has arranged the following types of insurance for its full time staff, at its own expense. The Banks Management may decide, at its discretion, to apply some or all of the benefits of any of these policies to staff engaged on contractual basis. Various features relating to these policies are subject to amendment from time to time. Benefits currently available are briefly introduced below: Hospitalization Insurance Coverage: Spouse and Children: All regular employees and only those contractual employees who are 60 years and above and are on Banks payroll and have submitted Hospitalization Insurance Form to insurance company are covered under hospitalization insurance arranged through Banks approved Insurance Company. All contractual employees (below 60 years of age) who are on banks payroll will also be eligible for Hospitalization Insurance (for self only). Dependents: In case of working spouse (if not covered under insurance from his/her employer), will be eligible for coverage from the Bank. Working parents are not considered dependents and therefore are not entitled for coverage. They will be eligible only if they are fully dependent and live with the officer. Unmarried / Widowed / Divorced daughters, living with parents will be allowed insurance facility without age limit. Group Mortgage Insurance Coverage: Lives of Employees of the Bank are covered upto the outstanding balance of House Finance liability (in the name of concerned employee or spouse) with the Bank would be taken over by the Insurance Company and no liability will be borne by the family of the deceased (subject to completion of certain formalities required by the insurance company). Group Mortgage Insurance Coverage for Conveyance Finance: Lives of Clerical and Non-Clerical Staff members are covered up to the outstanding Conveyance Finance liability with the Bank which would be taken over by the Insurance Company and no liability will be borne by the family of the deceased. Life Insurance Coverage: All employees of the Bank, who are on Banks payroll (whether in regular or contractual employment), upto the age of 65 years, will be covered under the Group Life Insurance arranged through insurance company as per following details. Category A B C Range IX & above VII VIII IV VI Sum Assured in PKR 5,000,000 3,000,000 2,000,000

16

D E

I III Non-officers

1,500,000 1,000,000

- In addition to life coverage, the Bank will has also obtained coverage for permanent disability due to accident and sickness up to the age of 60 years. In case of disability, benefit will be paid according to percentage of disability as per schedule provided by the insurance company. - The insurance policy is subject to conditions and exclusions provided by the insurance company details of which shall be maintained by the Human Resources Division. Coverage: - Death due to any cause - Disability due to sickness and accident as per schedule of disability Follow-up Treatment: In addition to the above, regular employees, their parents, spouses and children suffering from serious illness (see list below) will be entitled for reimbursements of cost of medicines, lab tests and consultation fee subject to the following, If the treatment is likely to continue for a minimum period of six months or more. If the treatment expenses for one month are equivalent to 10% or more of the monthly Basic Salary of the concerned employee. These claims will be lodged to HRD on Follow-up Expenses Claim Form as per along with medical bills, doctors prescriptions etc. List of Diseases Eligible for Follow-up Treatment Cardiovascular Multiple Tuberculosis disorders Scleroses Strokes Hepatitis B & C Cancer Major burns Medical Checkup: In addition to hospitalization cover, a special arrangement has been made with the insurers whereby they will arrange for annual medical checkup of all officers in salary ranges VII and above. Arrangements have also been made to get medical checkup done for certain job applicants if so decided by HRD. Uniform for Non-Clerical & Maintenance Staff: All Non-clerical and Maintenance staff is provided uniform as per following details:Season Summer Winter Clothing Item Pairs of socks Pairs of shoes Two safari suits Two One One suit (jacket & trousers) with two Four One

17

shirts End Service Benefits: BAL employees are entitled to the following end of service benefits: - Provident Fund (Own + Bank) plus investment income. Gratuity Payment: If period of service is less than 05 years, no gratuity will be payable. If period of service is 05 years and above, gratuity will be payable equivalent to one months basic salary (last drawn) for each completed year of service. Period of any overseas posting other than with Bank Alfalalh Limited will be excluded from the total service for calculation and payment of gratuity. Further, for the period of overseas posting with Bank Alfalah Limited any local law governing gratuity will be applicable and if he/she is posted back in Pakistan the period of overseas posting with Bank Alfalah Limited shall be excluded provided gratuity is paid according to the local laws of overseas posting. Unpaid study leave or long leave without pay will not be considered for payment of Gratuity or any other benefit. - Encashment of un-availed Privilege Leave (only in case of death / termination / Voluntary Severance Scheme) - The employee or his/her family may retain Banks car (if provided) on book value or 10% of the original purchase price whichever is higher (only in case of death or retirement) provided the employee has spent at least four years service with the bank. Income Tax Liability: Employees are personally responsible for preparation and submission of their personal income tax and any other personal taxation returns and reports, and for the payment of taxes, and of other statutory dues. The Bank undertakes no responsibility or liability in this respect, except for deduction of taxes at source, depositing the same with the concerned authorities, submitting required statements to the income tax department, and providing a salary and tax certificate for the tax year to the concerned employees. Other Regulatory Requirements: The HRD will ensure deductions of Employees Old Age Benefit Contributions, Social Security Contributions, Education Cess, etc. as per the rules and provisions of the relevant statutes (if applicable).

PERFORMANCE APPRAISAL SYSTEM

Introduction: Bank Alfalahs performance appraisal system is improved and upgraded from time to time in line with the Banks requirements, as well as with industry practices. HRD keeps all units of the Bank informed of the PA system and procedure currently in use. Units are also notified deadlines for goal setting, periodic monitoring and final appraisals. Objectives of Performance Appraisal:

18

- Improving the performance of the Bank and its staff members. - Laying a solid foundation for relationships between staff and management. - Clarifying performance targets for all. - Using the process for career planning and professional development of staff. - Review of salary, assignment and career path. Award of Bonus(es): Provide a basis for Promotion to higher salary ranges and functional responsibilities. Role of Immediate Supervisor and Branch Manager / Unit Head: Detailed guidelines are issued by HRD by the end of each year regarding Performance Appraisal of all employees for the year. Salary Increments/Adjustments & Performance Bonus(es) : Review of salary and allowances, which is based on previous years performance, is carried out once a year during the first quarter of every year. The Banks performance appraisal (PA) system is primarily based on goal setting in the beginning of a year, monitoring by supervising officers on bi-annual basis and final evaluation, using standardized performance appraisal forms at the end of the year. Some weight-age is also given to evaluation of enabling personal skills and personality traits, as listed in the Appraisal Form. Appraisal exercise is done only for those employees who have completed six months service with the Bank on 31st December and whose appraisal forms have been received from their respective offices within the specified time limit The extent of salary increases will depend on the system and formulae adopted by the Banks Management for the year in question. With reference to salary levels prevalent in the Bank and in the marketplace, salaries of certain key staff members may be adjusted during the appraisal exercise. This will be done in consultation with concerned Branch Manager/Area Manager/Executive-inCharges. To reward high performance during the period under review, performance bonuses may be awarded to deserving officers based on their performance rating. Promotion to Higher Grades: Promotion to higher grades depends upon the following three factors: - Banks overall policy of promoting certain number of people in specified salary ranges to maintain a balance between numbers of employees in various ranges. - Requirements emanating from operating units for staff of higher seniority to suit their operational needs, based on their current assignment. Promotion Procedure:

19

activities,

which

are

The promotion procedure revolves around the following two to be completed and recorded as described below.

Promotion Interview: Interviews for promotions to specified positions in the branches will be conducted by one or more of the following officers of the Bank as elaborated below: Branch Manager (BM)/Chief Manager (CM), Area Manager (AM), Executive-in-Charge (EI). For promotion to Ranges I, II & III Ranges IV, V & VI Ranges VII & VIII 1st Interview BM / CM BM / CM AM 2nd Interview AM AM 3rd Interview EI HRD

CEO & / or EI St. Planning

Promotion interviews for Head Office staff will be conducted as follows: For promotion to Ranges I, II & III Ranges IV, V & VI Ranges VII & VIII Range IX 1st Interview Head of Dept. Head of Dept. CEO CEO 2nd Interview Concerned EI Concerned EI ----3rd Interview --EI HRD -----

Succession Planning: The HRD, in consultation with all EIs and AMs, shall maintain succession plans for key positions in the Bank. Appropriate training and grooming actions should be undertaken for identified successors by Branch/Area/Unit management as well as by HRD/TDC.

POWERS OF ATTORNEY
Issuance of Power of Attorney: Issuance of Power of Attorney is a matter requiring serious attention. Recommendations for issue of Power of Attorney should be forwarded to HRD on prescribed format by branches / units, duly recommended by concerned Area Managers / Executive In-charge, keeping in view the risks attached with issuance of these powers to employees with inadequate experience or skills. At times, by judiciously reorganizing the workflow, need for additional Power of Attorney holders can be reduced.

20

If on careful examination by a Branch Manager and review by concerned Area Office, a definite need is identified, candidates for award of Banks Power of Attorney should be selected very carefully. Normally, confirmed employees with a minimum three years of banking experience should be recommended for issue of PA. For BAL Management Trainee Officers, over one year of experience (after training) may be considered adequate. Delegation of authority for issuance of Powers of Attorney is as under:Category Branch / Dept. AM / EI HRD Officers R R R (R = Recommend) (A = Approve) CEO A

Once Power of Attorney is approved by the CEO and attested by the competent court, the P.A. document will be sent to the concerned Branch/Unit for safe custody. In case of officers transfer to an other branch, this document may be sent to the new place of posting. In case of resignation/termination PA document may be sent to HRD for cancellation. Specimen Signature Booklet: Once Power of Attorney is approved by CEO and attested by the competent court, HRD will arrange circulation of Specimen Signature and serial number of the concerned officer. It would be the responsibility of Branch Manager/Head of Unit at Head Office to keep the Specimen Signature Booklet updated. On resignation/termination/death of an attorney holder, HRD will arrange cancellation of Specimen Signature of the concerned officer through circular. On receipt of circular, word Cancelled may be marked on the signature of said attorney holder. It may be noted that all Power of Attorney holders must write Authorized Signature Number invariably wherever they sign any instrument or official correspondence.

LEAVE RULES
All employees of the Bank including contractual staff, on completion of one years service with the Bank are entitled to certain number of days leave in a calendar year. This entitlement is spread over a few categories of leave, as elaborated below: Privilege Leave (PL): 30 days with full pay in a calendar year, to be credited on pro rata basis to each employees leave account on 1st January of each year. Maximum PL balance for any employee cannot exceed 60 days. New Joiners: PL balance of those joining during the year, will be calculated on a pro rata basis. Authorization:

21

All PL should be availed after obtaining approval from the sanctioning authority. Availment: The employees must avail at least 15 days continuous leave from the available privilege leave balance during a calendar year. For this purpose, a leave roster for the entire staff strength of each unit must be drawn, under the supervision of the Head of each unit, and a copy forwarded to HRD for record. During notice period if an employee has resigned, no privilege leave will be allowed even if the leave shows credit balance. Casual Leave (CL): 10 days in a calendar year, to be credited on pro rata basis to each employees leave account on 1st January of each year. Outstanding balance of CL as of December 31 shall lapse as un-availed CL cannot be carried forward to next year. New Joiners: CL balance of those joining during the year, will be calculated on a pro rata basis. Authorization: All CL should be availed after obtaining approval from the sanctioning authority. However in case of emergency the concerned employee must inform the sanctioning authority by phone or fax (etc), by the morning of intended leave. In such cases, upon return, the concerned employee should submit a leave application form giving due explanation. Disciplinary action may be taken against employees who frequently absent themselves from duty on the pretext of CL without even informing the sanctioning authority. Availment: CL should normally be for only one day at a time. Only in cases of personal emergencies, or bereavement in immediate family, may an employee be allowed CL up to three days at one time. Sick Leave (SL): Eight days in a calendar year, to be credited to each employees leave account on 1st January of each year. Maximum SL balance for any employee cannot exceed 16 days at any point of time. New Joiners: SL balance of those joining during the year, will be calculated on a pro rata basis. Authorization: For medical situations, SL should be availed after obtaining approval from the sanctioning authority. Leave application in such cases should be accompanied by a medical certificate from a registered medical practitioner

22

Availment: In cases of emergencies, an employee availing SL must inform his/her sanctioning authority as soon as possible of his/her intention of availing SL. Upon resumption of duty, a leave application form must be submitted to the sanctioning authority duly supported by medical certificate for approval of the sanctioning authority. Any leave without Medical Certificate will be considered as C/ L or P/ L. This certificate must be issued by a registered medical practitioner. Where a medical certificate is not submitted with the leave application for one day leave, deduction will be made from the balance of Casual Leave. For leave availment of two or more days, deduction will be made from Privilege Leave balance. Unpaid Study Leave / Leave without Pay (LWP): Leave without pay for more than one month and unpaid study leave will be approved by EI HRD based on merit of each case. Detailed guidelines are available with HRD. Maternity Leave (ML): All married female employees subject to completion of four months service are entitled to maternity leave, on full pay, of maximum 12 weeks i.e. up to six weeks leave prior to delivery and at least six weeks after the baby is delivered. Authorization: Maternity leave should be availed after submitting leave application together with medical certificate / medical records and obtaining approval from the sanctioning authority. Availment: If requested by the employee and supported by a medical certificate, maternity leave may be combined with balance of P/L or S/L due to the staff member. Sanction of Leave: Authority for sanction of leave will be vested as under:Applicant Branch Staff Branch Manager Area office Staff Area Managers Head Office Staff EI / Dept. Head Approving Authority Branch Manager / Chief Manager Area Manager (under advise to HRD) Area Manager CEO EI / Head of Dept. CEO

Application for Maternity Leave and Leave without Pay must be processed for approval through HRD.

23

Leave Record: Proper leave records should be maintained for all employees at their respective establishments according to the prescribed format. At the end of each month the officer maintaining leave records must go through the attendance register to counter-check that all absences or leaves marked against various employees are supported by leave applications and other documents, as required. Maintenance of leave records in doen as follows: Applicant Branch Staff Branch / Chief Manager Area offices Area Managers All Head Office Staff Card Division Record Maintained at Concerned Branch Area Offices Area Offices HRD HRD Card Division, Lahore

All sanctioning authorities should forward approved leave applications and joining reports to concerned offices as listed above for record keeping purposes. Permission to Leave Station: Where an employee proceeding on leave intends to travel outside his place of posting, the fact must be highlighted in the leave application form for specific approval of the sanctioning authority. Optional Leave (Festival Leave): Optional leave can be availed by the employees only if announced by the State Bank of Pakistan.

TRANSFER TRAVEL & BAGGAGE RULES

Eligibility, Authorization & Other Conditions: Stipulations of these rules relate to official travel on the Banks business and applies to the Banks employees only. Expenses relating to accompanying family members will not be admissible except on permanent transfers. Objectives of Official Travel: Before official travel is contemplated and authorization obtained, the employee initiating travel plans, should identify clear and specific objectives that the visit is expected to achieve. Employees contemplating official travel, and senior officers authorizing it, should ensure that expected benefits from planned travel outweigh the costs related to such travel. In case of doubt, a thorough evaluation of travel plans may be called for. Authorization for Official Travel:

24

Authorization for official travel and related expenses may be granted (on Travel Authorization Form) by the following authorizing officers:For Area Managers / EI All employees working in their respective Branches and Area Offices Employees working in their Divisions / Departments Approving Authority CEO Area Managers EI

Whenever an Authorizing Officer (other than CEO or EI Strategic Planning) wishes to arrange a meeting for which more than three participants need to undertake travel, prior approval from CEO will be required. Prior to undertaking travel, concerned officers must obtain written approval from Authorizing Officers on Travel Authorization Form and forward a copy of the same to the office(s) responsible for purchase of travel tickets and arranging hotel accommodation. Exceptions and Deviations: Strict adherence to these guidelines should be ensured by Authorizing Officers. In extra-ordinary circumstances, exceptions may be allowed after obtaining approval from EI HRD. Senior Officers Traveling Together: As a precautionary measure, senior officers of the Bank should not travel together in groups of more than three people. This applies to all means of transport, whether by air, road or rail. Mode of Travel: Entitlement for travel by various modes of travel is as follows: Air Travel: Class of Travel Designation Domestic International Range IX & above Business Class Business Class Range VIII Business Class Economy Class Others Economy Class Economy Class As far as possible the concerned officers should travel by direct routes and without any stopovers for personal reasons. Hotel Accommodation: Staff Range IX VIII VII IV VI I III Domestic 5 Star 4 Star 4 Star 3 Star 2 Star / Guest House 25 International 4 Star 3 Star 3 Star 3 Star 2 Star

Clerical Staff Non-Clerical staff Daily Allowance:

Rs 500/Rs 250/-

Employees who do not wish to use hotel accommodation can claim a daily-allowance to cover cost of hotel accommodation, food and refreshments, laundry etc. Cost of local transport while on outstation duty may be claimed separately on the Travel Expenses Claim Form. For the purpose of calculating Daily Allowance, only the number of nights away from home base should be counted. Daily Allowance rates are as follows: Staff Range IX VIII VII IV VI I III Clerical Staff Non-Clerical staff Domestic (Amount in PKR) 3,000/2,500/2,000/1,500/1,000/500/250/International (Amount in USD) 100/75/60/50/25/-

Audit Officers Cash Allowance during Audit Duty: Special arrangements have been made for audit officers on audit duty. They will avail hotel accommodation usually in hotels/guest houses pre-selected jointly by Audit Division and HRD. However, they will only use the hotel for bed and breakfast facility (if included with room rate). The following per day cash allowance will be admissible to them in lieu of lunch, dinner, tips, laundry, telephone calls etc. Range I - III IV- VI VII & Above Amount in PKR per Day 7,50/1,000/1,250/-

Traveling on Retirement from Service: An employee who retires from the service of the Bank will be reimbursed admissible one-way traveling costs for self and family members plus cost of luggage transfer for his/her journey from last place of posting to his/her permanent place of residence in Pakistan as recorded in his/her personal file at HRD. Tickets: Air tickets (or railway or coach tickets, as applicable) for the staff member, spouse and dependent children. Insurance Value of Personal Effects:

26

The maximum value of an officers personal effects on which the Bank will pay the premium shall be as under:Range VII & above IV VI I III Non-officers Amount in PKR 2,000,000 1,500,000 1,000,000 500,000

The insurance of personal effects will be arranged by Establishment & Administration Division through approved insurance companies. Transportation Personal Effects: Range VII & above Other officers Relocation Expense: To meet extra-ordinary expenses caused by a permanent inter-city transfer, the Bank will pay 50% of monthly basic salary to an employee under transfer, with a minimum payment of Rs.5,000/- for non-officers & Rs. 10,000/- for officers (whichever is higher). If the transfer is affected at the request of officer, no relocation allowance will be payable. Container Size 40 ft. 20 ft.

STAFF FINANCE POLICY

Introduction: The Bank provides financing facilities to its regular employees (not contractual employees) under the following headings: Housing finance Conveyance finance Car loan for Branch Managers (in addition to Bank car) Personal finance General information and terms and conditions pertaining to these facilities and applicable to all such facilities are given below. General Principles: Staff finance facilities are to be allowed by the Bank on a case to case basis and cannot be claimed by employees as a matter of right. The aggregate amount of monthly repayment(s) of all outstanding finance(s) availed by a staff member should not exceed 50% of gross monthly salary. Approving Authority for Staff Finance:

27

Type of Finance Housing Conveyance Special Conveyance For Br. Mgr. Personal

Branch/Unit R R R R

Area Mgr./ EI A A A A

HRD A* A* -A*

R = Recommend A = Approve A* = For HO Staff approving authority will be EI / AEI HRD Housing Finance: Housing finance applications received from eligible employees would be reviewed on a case to case basis within the guidelines contained in the text below. All house finance applications received will be considered subject to availability of funds up to the extent of 1% of total deposit of the Bank as per the Banks balance sheet at the end of previous quarter. HRD is to keep a tab on the fund availability situation . Eligibility Criteria: For new employees without any previous banking or other professional experience: Three years-uninterrupted services with Bank Alfalah Ltd. For experienced staff members: Total five years, including one year with Bank Alfalah. Only full time regular employment will be taken into account (internship, article ship or part time job will not be considered as previous experience). This facility will be available to staff members for purchase or construction of residential accommodation for their personal use. The Banks (CEO) retains his discretion to make exceptions to lay down policy and criteria, to suit the requirements of the Bank under the following circumstances i.e. where an incumbent was entitled for housing loan at his/her immediate previous organization but did not avail this facility. In this case if the loan is to be allowed, it may be sanctioned after confirmation of applicants services. Where an incumbent has already availed housing loan from the previous organization and wishes to avail this facility. Any other exceptions necessitated by extra-ordinary circumstances. Repeat Loan: In principle, housing finance facility will be available to eligible staff only once during the entire service with the Bank. However, repeat house finance facility may be considered after seven years of the a ailment of the first finance for the purpose of acquiring better or alternative accommodation due to significant change in individual circumstances. The repeat loan facility will be for the purchase of a better property only and not for repair, renovation or extension of existing property. If any enhancement(s) was availed by a staff member the seven year period will be calculated from date of last

28

enhancement or if loan was taken over from previous employers then from the date of sanction of the loan in previous organization. The repeat finance facility may be allowed as per the revised entitlement less current outstanding amount. Finance Entitlement Officers: 100 Basic Salaries, subject to the following amount whichever is less:Range I II III IV V VI VII VIII IX Non-Officers:Clerical Non-clerical Markup: Officers:Loan amount Up to 2.000 Manager 2.000 M 3.000 Manager Above 3.000 Manager Non-Officers:- Markup Free: However, in case of promotion to officers cadre, markup will be charged at specified rates applicable, from the date of promotion. Repayment: Total outstanding House Finance plus markup should be adjusted within 20 Years from the date of disbursement or before the age of retirement whichever comes first. In case recovery period is less than 20 years and loan installments exceed 50% of gross salary, amount of loan may be reduced. If an employee wishes to avail full loan amount, he/she will have to undertake to repay outstanding balance in lump sum upon his/her leaving the Bank. Recovery of the installments shall commence three months after disbursement of House finance in case of purchase of an already built house/flat, and one-year after the Markup per annum 3% 4% 5% Amount in million 2.000 2.500 3.000 4.000 5.000 6.000 7.000 8.000 10.000 0.750 0.500

29

disbursement of the first draw down of the finance, in case the house is to be constructed. Installments shall be recovered from the monthly salary of the staff. The staff will ensure regular deduction of monthly installments from his/her salary from the due date as provided above. In cases where the number of remaining months of service up to staffs retirement age of 60 fall short of the maximum repayment period (240 months), the amount of the monthly installment will be increased to ensure complete recovery of the outstanding amount with mark-up up to retirement. This will be subject to the principle of maximum deduction level of 50% of gross salary as explained above. If the above mentioned conditions cannot be fulfilled, or if it is observed that the staff will not be able to repay the outstanding amount upon his/her retirement, the Bank shall have the discretion to reduce the amount sanctioned to the concerned staff member. A case may arise where a staff member, who has drawn one or more trenches of staff housing finance, resigns from the service of the Bank, or his/her services are dispensed with before complete recovery of the advance. In such a case, the total balance outstanding against him/her, together with mark-up in full, shall become immediately due and recovered in lump sum forthwith. The Management of the Bank at its discretion may decide to give the concerned staff member a reasonable time period for repayment of the finance. The Bank may start charging commercial markup rate on such advances after a grace period as follows:- Three months period if the concerned staff switches over to another job - Six months if the concerned staff remains out of regular employment CEO of the Bank may grant exceptions to these rules to suit the Banks need. Conveyance Finance Eligibility: Minimum continuous confirmed service of one year with Bank Alfalah Ltd. Finance Limit: Market price of a vehicle to be acquired under the Banks conveyance finance scheme is to be established by concerned staff member and Chief Manager / Branch Manager of concerned branch on the basis of three alternative price quotations. For Head Office, HRD will coordinate this process. Clerical/Non-Clerical Staff: For purchase of a new Motor cycle (local assembled) up to 100 cc capacity Officers in Salary Ranges I to III: For purchase of a new Motor cycle (local assembled) up to 125 cc capacity. Officers in Salary Range IV:

30

For purchase of a new motor car (local assembled) up to 800 cc or equivalent (may be allowed immediately after confirmation). Officers in Salary Range V & VI: For purchase of a new motor car (local assembled) up to 1000 cc or equivalent (may be allowed immediately after confirmation). Markup: For Non-Officers For Officers Repayment: Conveyance financing is to be repaid in 72 equal monthly installments for motor cycles and 108 equal monthly installments for motor cars, or up to the age of 60 whichever is less. If the staff resigns/retires or his/her services are otherwise terminated before complete recovery of the finance, the amount outstanding shall be repayable/recovered in lump sum including mark-up, if any, immediately before his/her dues are settled. Security: The vehicle shall be hypothecated to the Bank and the Banks name shall be endorsed on the registration book. The vehicle shall be comprehensively insured in favor of the Bank by the employee concerned up to the amount of finance disbursed. Monitoring office will ensure that proper insurance is obtained before the vehicle is put to regular use. General Rules: Conveyance finance facility will be available to the eligible staff during their service with the Bank, with a gap of at least 5 years between two applications. Members of staff who are provided with Banks car are not eligible for conveyance finance (except Branch Managers). It is permitted under these rules for an employee to purchase a second hand vehicle provided the following conditions are met: The amount of finance is within the limits set under this policy. The vehicle is not more than five years old. The concerned Chief Manager / Branch Manager have personally verified that the price of the vehicle conforms to its market value. Change of vehicle under a fresh financing facility may be allowed before the expiry of the total period of finance, but not before the expiry of three years in case of motor cycle finance and five years in case of car finance. Car Finance for Branch Managers: Branch Managers, in addition to using a Bank car as per rules, may get authorization for car finance under the Banks Conveyance Finance Scheme, as laid down below: Markup Free 5% per annum

31

Eligibility: Chief Managers, Branch Managers heading the Banks branches. Finance Limit: For purchase of a new motor car (local assembled) up to 1000 cc or equivalent (may be allowed immediately after confirmation). Markup: 5% p.a. Repayment: Conveyance financing is to be repaid in 108 equal monthly installments. If the Branch Manager resigns/retires or his/her services are otherwise terminated before complete recovery of the finance, the amount outstanding shall be repayable/recovered in lump sum including mark-up, if any, immediately before his/her dues are settled. Security: The vehicle shall be hypothecated to the Bank and the Banks name shall be endorsed on the registration book. The vehicle shall be comprehensively insured in favor of the Bank by the employee concerned up to the amount of finance disbursed. Monitoring office will ensure that proper insurance is obtained before the vehicle is put to regular use.

General Rules: No additional facilities of fuel or maintenance will be provided by the Bank for the vehicle acquired under this scheme. Personal Finance Eligibility: Minimum confirmed service of one year with Bank Alfalah Ltd. Entitlement: Three months Gross Salary subject to the following maximum limits:Officers For personal needs Rs. 50,000/= or 50% of entitlement For educational needs Rs. 50,000/= or 50% of entitlement only Total Rs. 100,000/=

32

NonFor personal needs Rs. 25,000/= or 50% of entitlement Officers For educational needs Rs. 25,000/= or 50% of entitlement only Total Rs. 50,000/= Markup: 5% p.a. Repayment: Rapid 18 equal monthly installments. Normal 36 equal monthly installments. General Rules: Upon full adjustment of Personal Finance, it can be re-availed after a waiting period of three months. Topping up of the facility is not allowed if full entitlement is availed. Applications for personal finance will be considered on a case to case basis, within the laid down general principles and guidelines. Request of Personal Finance for educational needs of staff members children must be supported by copies of receipts of tuition fees and relevant course books. Expenses on stationery and transport etc. will not be admissible. Security: Demand Promissory Note and usual Charge Documents

INTERNAL COMMUNICATION
Bank Alfalah believes in promoting open, direct and honest communication among all units and individuals of the Bank. Towards this end, a number of initiatives have been launched, as described below. Efforts will continue to open up new channels of communication as and when feasible. All employees are encouraged to make use of these initiatives and channels to keep themselves informed of what is going on in the Bank, as well as to enhance their professional skills and knowledge, aimed at furthering their careers. Branches and units are to assist and encourage Banks employees in using internal communication facilities. Overall performance of branches/units is greatly enhanced by engendering a culture of caring and sharing and opening channels of internal communication. It is suggested that branch management committees in all branches take special measures to encourage internal communication within the unit and with other units of the Bank. Banks Web-site: The Banks website has a link to the Alfalah Intranet, intended to serve as the internal store-house for all commonly used information like Internal Circulars, SBP circulars, Employee Service Rules, Alfalah Newsletter etc. All this information will be

33

organized and updated by concerned Head Office Divisions/Departments. All employees are encouraged to visit the Intranet Site frequently to keep themselves abreast of day to day activities of the Banks various functions. E-Mail Facility: In the interest of speed and efficiency, employees should start using e-mail instead of courier / telephone, wherever feasible. While using e-mail facility, e-mail guidelines issued by the I.T. Division must be adhered to. BAL Newsletter: BAL Newsletter is an electronic magazine issued by HRD, covering news from all around the Bank during the previous week. All units must ensure that staff members have access to the newsletter, either in electronic or in paper format. All employees are encouraged to contribute note-worthy events at their respective offices through their mentors or managers. Mentors at Branch Level: Every branch of BAL must have a designated Mentor, nominated jointly by Branch Manager, Area Manager & E.I. HRD. The Mentors are supposed to play a role in induction / orientation of new joiners and guiding and coaching younger age group employees in terms of guidelines issued by HRD. Monthly Branch / Unit Meetings: All Branches and Units of the Bank should hold monthly meetings involving all staff during the first week of each month. Large branches / units may hold these meetings broken department wise. Management of branches and units should arrange to draw agendas of these meetings in advance and get minutes prepared for each meeting. Objective of these meetings are to: - Encourage mutual interaction and team work. - Focus on areas of work that need improvement, like customer service, process flow, expense control, working conditions etc. - Encourage evolution of a positive culture within the branch / unit.

Mentor
Mentoring Program in Bank Alfalah is aimed at helping freshly inducted staff members in the Bank to integrate and settle down in their respective assignments as happy and productive employees in the shortest possible time. The overall responsibility for this outcome rests with the management of respective branches/units. However, to help them in the process, one officer in each branch/unit has been nominated to play the role of a Mentor for new joiners. These officers have been nominated by respective Branch Managers/Unit Heads with the concurrence of concerned Area Manager/E.I. and HRD. Training & Development Centers at Karachi and Lahore, conduct appropriately designed Induction & Orientation Courses for new joiners. The said courses are offered

34

every month, both at Karachi and Lahore. Mentors must ensure that all new joiners in their branches/units attend these courses ASAP after joining the Bank. Mentors are supposed to systematically interact with new joiners for a period of two years from their joining the Bank. Beyond this period, the said staff members may continue to go to mentors for advice, but strictly speaking, their interaction will not fall under the regular mentoring program. The Ten Commandments of Mentoring: A brief description of activities and initiatives aimed at proper induction, orientation and integration of the new employees in the Bank is given below: 1. Induction & orientation of new employees: This would be done personally by the concerned Mentor soon after the new joiner has reported to the Head of the Branch or Unit. This would include a tour of the premises pointing to areas of daily need for staff (like washrooms, kitchen, photocopier, fax), as well as an introduction with all existing staff members of the unit. The Mentor will also make sure that the Departmental Head where the new joiner is going to be posted, does arrange a detailed briefing on the duties he/she is supposed to perform. 2. Coaching in basic workplace manners: It is essential that all new joiners be groomed in basic principles of dress, etiquette, personal hygiene, punctuality, telephone manners and customer service attitude. The Mentors help in this grooming process. 3. Job description & career orientation: A Mentor should also see that within the shortest possible time a written job description for the new hire is drawn (based on standardized JDs provided by HRD) and discussed with him/her. Within the first few weeks, the Mentor and/or the concerned Departmental Head should hold a career briefing session with the new joiner, outlining what is in store for him with the Bank in the long run, and what actions he/she needs to take to make the best use of opportunities ahead. 4. Identifying Training & Development Needs: Mentors should, on an ongoing basis, identify training needs of new joiners in consultation with their immediate supervisors. Keeping in line with the minimum requirement of two days in a year for all staff, the most relevant training area(s) should be identified. Training needs of the entire staff of the unit are to be intimated to Training & Dev. Centre by the unit management so that suitable courses can be organized. Mentors can help the unit head in this process. 5. Sponsorship, projection & recognition: Mentors, being guides and coaches to the new joiners, should keep an eye open for opportunities for learning and growth for the new hires. This may mean membership of special project committees, nomination for special assignments or for seats vacated by departing employees, and nomination for training courses. 6. Explaining the appraisal process: Special pains need to be taken by Mentors to explain to the new joiners all relevant details of the appraisal process in order

35

to avoid their picking up negative vibes about the whole process. Detailed briefing sessions on the subject of Performance Appraisal are periodically arranged for all Mentors. 7. Culture building & socialization: The Mentors are supposed to be role models for young new hires to emulate. In their day-to-day interaction with new hires, they should continue to instill positive values and strengthen new joiners resolve to become proactive in seeking knowledge and growth in their current jobs. 8. Guiding & coaching: A Mentors primary role is that of a guide and a coach. This doesnt mean that the mentor is an expert in all areas of banking. But it does mean that he/she has in-depth understanding and knowledge in many specific areas, as well as a general understanding of most areas of banking. This valuable knowledge and understanding should be put to good use by guiding the new hires in tricky areas of their fields of work, and by referring them to other colleagues who specialize in fields other than the Mentors own areas of expertise. 9. Counseling: Counseling, in its true sense, is a specialized activity usually left to seasoned professionals in behavioral sciences. However, there is a lot that a Mentor can do to alleviate new hires worries, anxieties and feelings of insecurity in the early part of their career. To become effective counselors, the most fundamental requirements on the part of Mentors are positive attitude, patience and perseverance and empathy towards the new hires. 10. Systematic interaction with new joiners: Mentors are welcome to adopt their own mechanism, style and timings to conduct mentoring activities. However, to put it all together, they should conduct an informal briefing session with all new joiners once every month. Proceedings of these meetings should be noted briefly and copies sent to HRD (and a copy endorsed to Branch Manager / Unit Head) Areas for further involvement of Mentors: 1. Membership of various Branch Committees: In view of their scope of activities a Mentor, becomes a natural choice for membership of committees formed to achieve branch objectives, especially related to HR Management in the branch. 2. Facilitating internal communication: Mentors can help in the following manner: - Collect and send to HRD news and pictures for the Banks Newsletter (in consultation with branch management) - Ensure that all HO circulars are circulated among all staff, their signatures obtained on the side margins and photocopy of the same sent to HRD. - Ensure that standard sized notice boards are installed in each branch / unit, in areas away from the customer, but most frequented by staff members. Standard specifications of the board are: 2.5 by 4 feet, soft-board based, felt fabric of our logo color, bordered by 3 inch wooden frame in teak wood mat finish. 3. Coordination of sports / social events: Mentors may be in a good position to help coordinate such events involving the entire staff of the branch / unit. A brief report

36

of said events (along with photographs if possible) should be forwarded to HRD. In order to facilitate the role of mentors, HRD is to keep them informed of fresh inductions in their respective units. They will also receive specialized training in leadership and mentoring skills, as well as in areas of communication and inter-personal skills. HRD will periodically interact with mentors through e-mail/telephone to monitor the progress of the mentoring program. In order to reflect the seriousness of this initiative, a weight-age of 10% is to be assigned to Mentoring in all mentors goal setting sheets for the purpose of their end of year performance appraisal. Branch and unit list of mentors is given below. In newly opened branches, the branch manager is to act as the mentor (for the time being), until another officer is nominated officially to conduct mentoring activities. Nomination of mentors is done jointly by concerned Branch/Unit Manager, concerned Area Manager / Executive In-charge and EI HRD.

DISCIPLINE
Accountability of Employee: Employees shall faithfully and punctually account to the Bank or its authorized officials for all moneys, drafts, securities, account books, registers, papers, vouchers, writings, goods and chattels or other property, which they may receive as employees of the Bank on behalf or on account of the Bank or of any member of the Bank. Grounds for Disciplinary Actions where an employee: Commits breach of rules and regulations of the employer or of discipline, Contravenes instructions/orders issued to him in connection with his official work, displays negligence, inefficiency, or indolence. Knowingly does anything detrimental to the interests of the Bank, Is guilty of any other act of misconduct or insubordination. Becomes bankrupt or makes any arrangement or composition with his creditors. Becomes of unsound mind. - Is convicted of any criminal offense or found guilty of any act of moral turpitude, other than an offense which, in the opinion of the Bank, does not affect his/her position as an employee of the Bank. - Commits any act which, in the opinion of the employer, tends to bring the officer or the employer into disrepute. - Contravenes the provisions in respect of transferability of his services to any office of the Bank. - The competent authority, in its sole discretion and without limitation, may impose on him/her one or more of the following penalties. Penalties Consequential to Disciplinary Actions: Reprimand: Postponement or stoppage of increment or promotion Forfeiture of pay for any period of unauthorized absence from duty Recovery from pay of the whole or part of any pecuniary loss caused to Bank Alfalah Ltd. by the employee.

37

Termination of Service: Dismissal from service which will involve permanent disqualification for future employment in Bank Alfalah Ltd. Banks Property in Custody of Employee: The Banks property (e.g. accommodation, car, motorcycle, house, PC/laptop, mobile phone etc.) which has been in use/custody of an employee who is retiring, resigning or is under discharge or dismissal, must be handed over to a duly authorized representative of the Bank, on or before the employees last working day, unless another date has been approved in writing by the Bank. Handling of Serious Grievances & Harassment Cases: Bank Alfalah Limited attracts diversified staff from various corporate, geographical, ethnic and religious backgrounds. The Bank shall institutionalize mechanisms to safeguard against the risk of violation of accepted norms of conduct in the day to day interaction among staff members, and between supervisory staff and their subordinates. In order to safeguard the rights of the employees at such risk, the Bank has nominated an Organizational Ombudsperson titled Bank Alfalah Limited Mohtaseb (BALM), an independent officer reporting to CEO. All the staff members who are subject to any such harassment can contact the BALM office balm@bankalfalah.com All staff members are advised first to report any such grievances to their immediate supervisors. In case of a complaint against their immediate supervisors, reporting should be done to the next level. If the concerned senior staff members fail to redress the grievance, the matter should be brought in to the notice of BALM.

RESIGNATION, TERMINATION & RETIREMENT

Resignation: A confirmed employee may resign from the Banks service upon giving one months prior written notice to the Bank, failing which he/she will be liable to pay one months gross salary in lieu of notice period. Management may waive notice salary to suit banks requirement Employee will not be eligible to avail leave during notice period. The Banks management may, at its discretion, re-employ a person on terms as agreed between the management and the person so re-employed, if not terminated/ resigned on disciplinary grounds. During probationary period an employee can resign at any time without notice and in the event of such resignation the employee will be entitled only to the remuneration at agreed rate of salary for the time actually employed. Termination Confirmed Employee:

38

Services of a confirmed employee may be terminated by the Bank without assigning any reason by giving one months notice in writing or on payment of one months gross salary in lieu of notice period. The Banks management may allow, at its discretion, any of the benefits admissible on retirement from the service, to an employee whose services have been terminated except when the terminated employee is involved in fraud, misconduct or gross negligence. Employees under Probation: During probationary period, services of an employee may be terminated at any time without notice and in the event of such termination the employee be entitled only to the remuneration at agreed rate of salary for the time actually employed. Unauthorized Absence from Duty: When an employee remains absent from his/her duty without proper authorization, or fails to return for duty within specified period mentioned in the written notice issued to him, he/she will be liable for disciplinary action which may include termination of service. The said written notice will not be for a period of less than one week from the date of dispatch of a letter by registered post or via reputable courier service at the employees last recorded address. Retirement: All employees of Bank Alfalah Ltd. are liable to retire from the Banks services on attaining the age of 60 years. The Banks management may, at its discretion, re-employ an employee due for retirement on contractual basis for a defined period. The services of a person, who is thus employed, may be terminated by serving one months prior notice in writing or one months gross salary in lieu thereof.

39