Bank Alfalah Deposits

IFE Matrix of Bank Alfalah Deposits

Weights Rates Weighted Scores
Strengths:
Financing facility up to 90% of the deposited amount 0.09 4
0.36
Customers Invest with a minimum deposit of Rs.
50,000 for1 year term deposit & Rs. 100,000 for 3
years term deposit

0.06

3
0.18
Attractive rate of 8.5%* on 1 year term deposit & 9%*
on 3 year term deposit
0.07 4
0.28
electronic transfers to move money in and out of the
account.
0.06 3
0.18
provide a very safe investment and guaranteed
returns/profit every month.
0.07 4
0.28
provides Customers to deposit cash in customers
account
0.06 3
0.18
The cash department is given special importance as
they have liquidity at all times.
0.06 3
0.18
Deposits structured for savings products, choose the
option that best suits customers needs and start
enjoying their daily banking services through vast
branch network and self service banking solutions.

0.07

4
0.28
Weaknesses:

Liquidity Risk.of security/asset cannot be traded in a quick time 0.09 1 0.09
frame in the market.
some of the funds that deposit into deposit account are not
immediately available.
0.07 1
0.07
Penalty on deposits that are withdraw prior to the maturity
date.
0.05 2
0.1
banks in particular offer lower rates of return on fixed deposits.
If interest rates go up, you may be locked in at a lower rate. The
funds are not at call, they are locked into a contract for a certain
term agreed by you and the bank.

0.06

1
0.06
Interest penalties will apply in emergency availability of
deposits.
0.06 2
0.12
Deduction of Zakat and withholding Tax @ 10%. 0.06 2
0.12
banks charge monthly service fees that you incur if your account
balance falls below a certain level.
0.07 1
0.07
TOTAL 1
2.55

EFE Matrix of Bank Alfalah Deposits
Weights Rates Weighted
Scores
Opportunities:
Customers can earn high rate of returns on your fixed deposits
with the benefit of monthly profits by Alfalah Mahana Amdan.
0.07 4
0.28
With a demand customers can withdraw all available funds at
any time.
0.06 3
0.18
Bank alfalah has numerous opportunities in future to increase
the volume of business
0.06 3
0.18
The money is not safe in corporate fixed deposits which earn a
higher interest rate as it would be in a bank
0.09 4
0.36
Bank Al-Falah Limited also issues Call Deposit Receipts (CDR). It
is an instrument like Cheque issued by the bank on account of a
customer & in favor of a person, to pay the specified amount.

0.06

3
0.18
The bank enjoys the benefit of keeping funds deposited until the
payment is not made.

0.06

3
0.18
Customers do not have to carry cash when they have a demand
deposit account because they use electronic transfers to move
money in and out of the account.

0.07

4
0.28
Threats:

if bank fall behind on deposits then depositor can go to court
and ask a judge to recover deposits.
0.07 2
0.14
some banks do offer a floating rate option. 0.06 2
0.12
Political situation in Pakistan is not good. Investors and
businessmen are shifting their assets outside Pakistan. Most
important of all is that the policies of Pakistani Government are
not consistent.

0.07

1
0.07
The privatization of other banks is thread fo bank alfalah 0.05 2 0.1
Reputation Risk of the bank loosing its repute among the
customers
0.07 1
0.07
systematic risk of bank deposits is often beyond the control due
to the macroeconomic factors
0.06 1
0.06
Credit Risk for the bank as he fails to repay the money to the
depositors.
0.07 1
0.07
All the banks are providing deposits facility so the competition
is high.
0.08 2
0.16
TOTAL 1 2.43



Bank Alfalah Loans

IFE Matrix of Bank Alfalah Loans
weight Rate Weighted
Score
Strength
1.Speedy loan approval process 0.05 4 0.2
2.Affordable tailor-made financing option 0.06 3 0.18
3.Flexibility to choice the repayment plans 0.05 4 0.2
4.Long tenure system 0.04 3 0.12
5.Modernization banking system(online)for loan customers 0.08 3 0.24
6.No hidden charges 0.07 3 0.21
7. Minimum down payments complete payment at any point of
time.
0.09 4 0.36
8. Loans can be obtained in U.S dollar, pound sterling Euro
Japanese.
0.06 3 0.18
Weaknesses
1.Do not announced a loan scheme for all talented individuals
and upcoming talent
0.07 1 0.07
2.It provides loans to already successful business .It does not
help
In minimizing the ever growing gap between rich and under-
privileged.
0.08 1 0.08
3. Do not play an active role in prime minister youth loan. 0.06 2 0.12
4. Bank ignores the public sector. 0.06 2 0.12
5. Business loans are not given to middle and lower class as
compares to upper level class.
0.09 1 0.09
6. Market department is not doing well performing poorly in
impressing or even reaching the target audience.
0.07 1 0.07
7. Banking language is not convenient so ordinary citizen could
not conveniently understand how their bank is performing.
Most of the form of loan also difficult to understand for
common people.
0.07 2 0.14
TOTAL 1 2.38


EFE Matrix of Bank Alfalah Loans
weight Rate Weighted
Score
Opportunities

1.High velocity of people growth 0.09 4 0.36
2.Information technology 0.07 3 0.21
3.Local setup expansion 0.05 2 0.10
4.Increasing scope of small and medium enterprise 0.06 3 0.18
5.Small farmers need loan or finance for latest purchase of
equipments and fertilizers
0.09 4 0.36
6.Business class need loan for business expansion 0.07 3 0.21
7. Less cost and harsh policies. 0.08 3 0.24
Threats
1. When loan is given to any customer there is always include
of defaulting.
0.09 3 0.27
2.Uncertain economic condition 0.08 4 0.32
3. Competition in banking sector. 0.09 3 0.27
4. Government policies pose unpleasant role. 0.10 2 0.20
5.Some banks offers a floating rates 0.06 2 0.12
6. Increasing SBP regulation in the banking industry. 0.07 3 0.21
TOTAL 1 3.05

Lending to Financial Institutions of Bank Alfalah
IFE Matrix of Bank Alfalahs Lending to Financial Institutions
Weights Rates Weighted
Scores
STRENGTH
Up to 90% financing against security deposit. 0.10 4 0.4
The amount of financing under Alfalah Quick Finance ranges
from Rs. 50,000 to Rs. 75,000,000 and up to Rs. 100,000,000
for corporate.
0.08 3 0.24


Affordable markup rates.


0.07 3 0.21
Offer a wide range of trade services designed to meet a range
of our corporate clients needs.

0.12 4 0.48
Business loans and solutions to meet your specific short-term
or long-term funding and business expansion requirements.
0.05 3 0.15
Financing facility up to 70% of assessed market value of
mortgaged property; 35% of sales turnover or 40% of the
projected cash flows over the period of finance.


0.08 3
0.24


Weakness


1) Penalty on late payment of the loans.

0.08 2 0.16
2) Bank charge extra charges for deductions. 0.10 .2 0.2
3)Bank favors the old clients and gives fewer opportunities.


0.07 2 0.14
4) Bank offered suitable rates other than banks but not on
flexible conditions.

0.12 1 0.12
5)Large business parties have fewer attractions in being
a client of BAL-IBD, mainly because of excessive amount of
documentation.
0.05 1 0.12
6) Business loans are not given to lower class as compared to
upper class.
0.08 1 0.08

TOTAL 1 2.52
EFE Matrix of Bank Alfalahs Lending to Financial Institutions
weight Rate Weighted
Score
OPPORTUNITY
Increasing scope of small and medium enterprise
0.09

3
0.27
Peace and security conditions if favorable.

0.07 4
0.28
The bank enjoys the benefit of keeping funds deposited until
the payment is not made.

0.09

3

0.27
Bank Alfallah has numerous opportunities in future to
increase the volume of business.

0.08

4
0.32
local set up expansion
0.07

4
0.28
High population growth rate


0.08

3
0.24
THREATS


Some banks do offer a floating rate option.
0.07

2

0.14
If bank fails to provides the finance , shares and trade finance
illegal then debtor can go to court .

0.08

1
0.08
Economic condition is not good in Pakistan for business thats
why difficult for bank to charge high rates of return.


0.08

2 0.16
Systematic risk of bank loans is often beyond the control due
to the currency fluctuations and economic factors.

0.09

2
0.18
All the banks are providing loan at flexible rates so the
competition is high.

0.12

1
0.12
Debit Risk for the bank as he fails to repay the money back to
bank.

0.08

1
0.08
TOTAL 1 2.42



Product
Division
Products of Alfalah
Bank
Sales(in 000)

Profits % IFE EFE
1 Deposits 525525770

50% 2.55 2.43
2 Loans 260779850

38% 2.38 3.05
3 Lending to Financial
Institutions
2522022

12% 2.52 2.42














Deposits
IFE= 2.55
EFE= 2.43
Loans
IFE= 2.38
EFE= 3.05
Lending to Financial
Institutions
IFE= 2.52
EFE= 2.42



IE Matrix

















I II

III





IV




V

IV
VI



VII XI


Strong Average Weak
3.0-4.0 2.0-2.99 1.0-1.99

4.0 3.0 2.0 1.0



High
3.0-4.0

3.0

Medium
2.0-2.99

2.0

Low
1.0-1.99
1.0

The EFE
Total
Weighted
Score

The IFE Total Weighted
Score

Grow and Build
Backward, Forward and Horizontal
Integration.
Market Penetration
Market Development
Product Development

L.F.I
IFE= 2.52
EFE= 2.42


Deposits
IFE= 2.55
EFE= 2.43
Loans
IFE= 2.38
EFE= 3.05



Quadrants I, II and IV
Grow and build
Backward, Forward and Horizontal Integration.
Market Penetration
Market Development
Product Development
Quadrants III, V and VII
Hold and maintain
Market Penetration
Product Development
Quadrants VI, VIII and IX
Harvest or divest
Retrenchment
Divestiture

Strategy Recommended:
Bank Alfalah position lies in Sector-II for Loans and lies in Section v for deposits & lending to
financial institutions and it have strong IFE as well as High EFE score. Therefore bank should
apply the Grow and Build for loans and Hold and Maintain for lending to financial
institutions


Hold and Maintain
Market Penetration
Product Development