Haroon Ur Rasheed

MBA (MIS) ID: MC090408630

Internship Report
Bank Alfalah Islamic Banking

Introduction of Bank Alfalah Islamic Banking

The largest Islamic bank in Pakistan BAL incorporated on June 21, 1997 in 2003: Bank Alfalah Islamic Banking Division started 80/270 Islamic Banking branches are based on Sharia laws. Operational workings prescribed by Islamic Sharia advisors The objective: Riba free financing

Product Lines
Musharakah: contractual relationship Mudarabah: Partnership Murabaha: non-participatory, client on cost-plus basis Ijara: Client takes on rent & pays back episodic rent Salam: Contract of advanced payment against delayed delivery goods Istisna: Specific product against particular condition by a manufacturer

Business Volume (PKR 000)

2005 Revenue Deposits Advances Investme nt 7425 76698 49216 2006 7140 129715 88931 2007 14515 223345 118864 2008 24416 239509 149999 2009 31822 273174 171199

28904

35503

57416

56502

88492

Competitors
Meezan Islamic Bank Dawood Islamic Banking Dubai Islamic Bank, Pakistan Ltd Emirates Global Islamic Banking Union Bank

Introduction of Branch
This branch is situated in Kabirwala, District Khanewal It is 12 Km away from Khanewal This branch belongs to Multan Zone The branch has a talented hardworking energetic staff This branch deals with Islamic products only

Organizational hierarchy Chart

Organizational Management Analysis

Training Program

Hierarchy of MIS deptt

Branch Manager

Operational Manager

IT officer

Structure & Function of MIS Department

Responsibilities of MIS department
To keep all the computers, printers, and ATM machine of the branch operational by providing in time support to the trouble shooting of the IT equipments. To provide support regarding IT operations and also monitor and trouble shoot the LAN (Local Area Network) inside the branch

Structure & Function of MIS Department

Functions of MIS department
Provides support to operations department for keeping the LAN, computers and software work smoothly Maintains automated slip generation system that generates slips on customer demand so that the cash counters are not over loaded and the customers come to counter at their specific token number marked on the slip.

Critical Analysis
Bank Alfalah Islamic Banking Division sets its goals according to its mission and vision statement. My observations are following:

1. 2. 3. 4. 5. 6. 7.

Strong brand recognition Strong allocation potential Recognized market existence Focused business strategy Strong credit rating Large (over 5 million accounts) A full service bank

SWOT Analysis
STRENGTHS:
Bank Alfalah Islamic Banking division is financially very strong bank. Following are some of the strengths of the Bank. Alfalah bank is applying the TQM in each of its branch, which is the great achievement. No other bank has this department Bank Alfalah Islamic is financially strong and has a huge deposit reserve.

WEAKNESSES:

Lack of branch network as compared to other Islamic banks in Pakistan More job rotation It is a step behind in using new technology (MIS) as compared to other banks. Most of the employees are overloaded with work slow in the introduction of new services as compare to other Islamic banks in Pakistan i.e. free internet services.

SWOT Analysis
OPPORTUNITIES:
Bank can extend its network in other cities of Pakistan. profitability can be increased by making use of new technology (MIS) Ability to introduce new products and services because of the huge capital reserve It can adopt E-banking and provide credit card facility to its customers. Good financial position creating a good reputation for future advances and huge deposits

THREATS:

In certain era of Pakistan people emphasizes more on Islamic mode of banking. Bank is facing intense competition from other Islamic Banks working in Pakistan Bank is performing very well in the presence of unstable political and economic situation but this uncertainty is a continuous threat for the bank SWOT analysis shows that Bank Alfalahs strengths are more than its weakness and it has a chance of availing many opportunities.

Internal Factor Evaluation Matrix (IFE)

Internal Strength 1st largest Islamic Bank of Pakistan in term of deposits 1st largest Islamic Bank of Pakistan Improved operational efficiency as compared to past Large Branch network BAL IBD Product positioning is very effective standard of living Stands in the list of Profitable bank in stock exchange Largest number of corporate deals by any bank is Pakistan Attractive Salaries and incentives for employees Overseas Branches Internal Weakness In some regions BAL IBD service is not good as compared to others BAL IBD is a step behind in using new technology as compared to other banks All branches need orientation for customer dealing with loyalty Security system in most of the branches is not up to date Most of the employees are overload with the work and promotion is also not timely Total Weighted Score Weight 0.1 0.12 0.04 0.08 0.04 0.05 0.04 0.08 0.15 0.05 0.1 0.04 0.03 0.04 0.04 1 Rating 4 4 3 3 3 3 4 4 4 4 1 2 2 1 1 Weighted Score 0.4 0.48 0.12 0.24 0.12 0.15 0.16 0.32 0.6 0.2 0.1 0.08 0.06 0.04 0.04 3.11

External Factor Evaluation Matrix (EFE)

Key External Factors Opportunities Terms of Licenses to Islamic banks by SBP Growing acceptance of Islamic banking with lay man Government Patronage Refinement of procedures by COIE Expansion in different other areas internationally. Tide Down of Money Energized Research and Development Threats Excessive and expensive documentation Comparisons of Rates profits interest Slow and tedious product development process Bad Mouthing by conventional Bankers Absence of Interbank money market for Islamic Banking High expectation of General Public Total 0.14 0.04 0.2 0.1 0.06 0.05 0.05 0.1 0.04 0.05 0.11 0.02 0.04 1 4 2 2 3 2 2 3 4 3 3 4 2 2 0.56 0.08 0.4 0.3 0.12 0.1 0.15 0.4 0.12 0.15 0.44 0.04 0.08 2.94 Weights Ratings Weighted Score

TOWS Matrix
SWOT STRENGHTS Phenomenal growth in branches External Credit Rating. Enhance Customer services and care Charging moderate rate of return. No specific market niche Personalized banking services Systematic working operations OPPORTUNITIES Offering a generous product portfolio SO STRATEGIES WO Strategies Strengthen research and development through industrial support Control Inflation WEAKNESS Lack of awareness through publication of Islamic material. Lack of research and development.

Government Patronage Market Development Acceptance by layman alteration of procedures Product development Cost Leadership Strategy

Energized research and development THREATS STRATEGIES Expensive and excessive Horizontal Integration documentation Cost Leadership strategy

WT STRATEGIES Concentric diversification Proper Advertisement to enhance awareness

Competitive Profile Matrix (CPM)

Meezan Bank Critical Success Factors Advertising Product Quality Market Share Competitive ness Management Financial Position Customer Loyalty Global Expansion Total Ratin g 2 3 2 Standard Chartered Bank Weighted Score 0.8 0.45 0.2 Bank Alfalah Islamic Weighted Score 0.6 0.3 0.4 Weigh ted Score Rating 0.4 0.45 0.2 4 3 2

Weight 0.2 0.15 0.1

Rating 3 2 4

0.1
0.15 0.1 0.15 0.05 1

4
3 2 3 2

0.4
0.45 0.2 0.45 0.1 2.65

2
2 3 2 3

0.2
0.3 0.3 0.3 0.15 2.7

3
4 3 2 3

0.3
0.6 0.3 0.3 0.15 2.95

BCG Growth Share Matrix

Porters Five Forces Matrix

Degree of Rivalry Threat of Entry The Threat of Substitutes Buyer Power Supplier Power

Ansoff Matrix
Market Penetration: Selling more of the same to same type of people Market Development: Selling the existing products to new consumers Product Development: Selling new products to existing customers Diversification: Selling new products to new consumers
Products Existing New

Existing

Market Penetration

Product Development

Markets

New

Market Development

Diversification

Conclusion

Recommendations
Build their Own Website: E Banking Advertising / Marketing (Internet based): More focus on MIS required: Introduction of New Products: Women In Workforce: Distribution of Work:

Thank You
For Your Attention