Professional Documents
Culture Documents
CHAPTER 1
To analyze the strengths and weaknesses of the Bank and its Banking Practices.
To do practical work in field and apply the knowledge of classroom lectures to the
real life situations,
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Due to the constraint of time the problem of short time period makes the analysis
restricted as one cannot properly understand and thus analyze all the operations of a
bank just in eight weeks.
More over some of the data was confidential and was not made available to me.
Sometimes due to the busy schedule of the bank, complete information regarding
different activities was not provided in time. During the study it was tried to include
only relevant material and avoid irrelevant material.
Interviews and Discussion with the Bank personnel from time to time.
Websites
Newspapers
Chapter three is about the Financial Position and Products and services provided by
Al Baraka Islamic Bank (AIB)
Chapter four describes financial, SWOT analysis and findings of the study
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CHAPTER 2
INTRODUCTION TO THE AL BARAKA ISLAMIC BANK
2.1 Evolution of Banking
Like many other subjects and social sciences no any precise definition can be given for the
study of banking also keeping in view the particular function of banking. It is clear that
there is a big difference in functions performed by old institutions and modern baking. But
the basic idea is same banking has now become a multi-service organization with wider
scope and area of its influence .Mr. Gilbert says bank is dealer in capital or more
peculiarly in money. He is an intermediate party between borrower and lender.The
definition lay down in the banking companies Act 1962 is "Bankers means a person,
transacting the business of accepting for the purpose of landing or investment, of deposits
of money from public, repayable on demand or otherwise and withdraw able by cheque,
grafts or orders or otherwise and includes any "Post office saving Bank".
In view of the above definitions, in simple words a bank can be defined as an institution
dealing in money, accepting deposits and advances loans.
2.2
Banking in Pakistan
Banking industry in Pakistan has passed through various transitional phases. The State
Bank of Pakistan regulates the banking sector, consisting of the commercial banks, along
with all NBFIs, except for the leasing companies. The IMF experts in their reports said
that banking industry has developed to cater to the local needs of the financial sector as
well as it is highly competitive to serve the customers globally. In the past it never
attracted the customers, as the interest rates were higher as compared to other countries in
the region. Taxes were all time high. Recoveries were hardly 25%. Political pressures
damaged the efficiency. The World Bank and IMF never lent support to the industry.
The State Bank of Pakistan realizing the gravity of the situation introduced reforms.
Banking sector reforms have brought in competition within the system, improved internal
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Pakistan is one of the few developing countries where the public sector banks went to the
private hands in a very short span of time. The government only owns the National Bank,
while 80 % of the bank assets are in private hands. And there is tough competition among
the banks, as in the private sector everything is performance-based. Unlike the public
sector or the government, any employee not producing results is fired because he affects
profit of the organization. The bankers these days go out of their cozy offices to market
their financial products and build up customer base. The seller market has changed into a
buyer market. The customer may choose the bank with best products and services. There
was a time, only a few years back, people used to go the banks and the staff treated them
shabbily, was generally uncooperative and unfriendly. Now, they are after the customers.
Banking sector reforms were thus needed badly to address these and other constraints so
that the banks could play their due role in the economic development of the country.
Although, there is no room for complacency and a lot still needs to be done, even the
worst critics of this government do concede that if there is one sector, which has
undergone basic transformation that is the banking sector.
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As private sector credit is rising and money demand is constantly rising from agriculture
as well as manufacturing sectors. These are now offering from 7% to 11% return to their
depositors on term deposits. So it is also giving a strong indication that the people may
not withdraw their savings from banks in an environment where banks have started to
give them attractive rates with much better service than the saving centers. Banks have a
vast branch network and provide convenience too. Year 2008 is going to be the fourth
consecutive year for double-digit profitability growth of the commercial banks. The
excellent performance of the bank can be attributable to the prudent fiscal and monetary
measures of the government which resulted in the increased credit demand from private
sector, improved spreads, exceptionally increased in non interest income of the bank
(particularly fee income and dividends).
Some of the major reforms achieved in the banking sector to-date include:
Mandatory requirement for all banks to get themselves evaluated by credit rating
agencies in order to facilitate depositors to make informed judgments about placing
their savings with the banks.
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BOARD OF
DIRECTORS
Executive Committee
Audit committee
EXECUTIVE
COMMITTEE
Shariah Board
Country Manager
Regional Manager
BRANCH MANAGER
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Board of Directors
Country Manager
Regional Manager
South
Chief
Financial
Officer
Head of
(HR)
Regional Manager
Central
Head
of
(Audit)
Head
of (IT)
Head of
(Treasury)
Regional Manager
North
Head of
(Credit)
Regional Chief
Branch Manager
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To provide innovative and high quality research and development into Islamic
financial products which comply fully with the principles of Sharia Law and Islamic
values, for the benefit of our customers.
To utilize the Groups geographical presence to distribute its products and services
and promote cross border services.
Senior Officers
Number of Employees
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Earnings/Dividends
Shareholder Information
Market Price
Value Ratios
Price/Earnings
Price/Book Value
Dividend Yield
Equity Capital
% Earned Growth
Earnings
Dividends
% Payout Ratio
DESIGNATION
Chairman
Vice Chairman
Board Member
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Board Member
Board Member
Board Member
Board Member
Designation
Chairman
Vice chairman
Member
Member
2.14.1 Departmentalization
The Al-Baraka Islamic Bank has number of interrelated departments that works together
to achieve the specific goals and objectives of the organization. The AIB has built a
hierarchical system that includes the sub departments.
The AIBs exiting system includes following departments.
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Cash department
Deposits department
Clearing department
Advances department
Remittances department
Government department
2.14.2 Location
The branch is located at Alfateh shopping plaza, Mansehra road, opposite Radio Station,
Jhangi, Abbottabad. This is very appropriate location because it is in the centre of the city
located on a busy road having offices of many companies and easily accessible to all the
inhabitants of the city.
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(Head of Treasury)
(Head of operation)
(Country Head)
(Regional Manager-North)
Mr.Tariq Mehmood
(Branch Manager)
Mr. Waleed
(Manager Operation)
(Credit Officer)
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CHAPTER 3
PRODUCTS & SERVICES OFFERED BY AL BARAKA ISLAMIC
BANK
Striving to develop and an integrated Islamic Financial System. Compliance with the
rules and principles of Islamic Sharia is the core of the banking and financial activities of
the Bank. To this end, Albaraka has successfully sought the advice and expertise of
Islamic scholars acclaimed for their knowledge and piety from all over the Islamic world
to guide its path and monitor its performance. The Banks activities and operations are
regularly scrutinized by its Sharia Advisory Board.
Khazana Accounts
Incentive Accounts
Housing Musharakah
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Current Account
Saving Account
These accounts are treated in the same manner as Pak Rupee Accounts.
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3.2.11 Lockers
Al Baraka Islamic Bank Lockers are available in three different sizes Small, Medium
and Large on a yearly fee. Locker holders need not have an account in the Bank.
3.3 Departmentalization
The Al-Baraka Islamic Bank has number of interrelated departments that works together
to achieve the specific goals and objectives of the organization. The AIB has built a
hierarchical system that includes the sub departments.
The AIBs exiting system includes following departments.
Deposits department
Cash department
Clearing department
Advances department
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Remittances department
All these departments come under the operations, which is headed/ controlled by the
Manager Operations.
Current Account
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Profit: Quarterly
Profit: Monthly
Must not be bewared under any law from entering into any contract.
Should be known to the any of the banking staff according to KYC policy.
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The signature of the customer is checked. In case if customer is illiterate then his
photo is attached and thumbs expression is given.
After the account is opened a letter of thanks is issued to the customer. If the
customer had given the wrong address the letter will come back and the account is
marked as doubtful.
Individual accounts:
Individual accounts are the most common personal investment accounts. Opened by
single person.
Joint Account
A joint account occurs when two or more than two customers have one account. The
parties to a joint account are considered in law as they are one person.
Business accounts:
Business accounts can be opened by institutions, companies, partnerships, trusts and nonprofit organizations. Following documents are required.
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Not more then one account of each category may be opened in one and the same
branch except joint account with any other individual.
In the event of the death of an account holder the credit balance in the account shall
be paid to the legal heirs of the account holder.
The account holder wishes to close the account should surrender all unused checks.
Receipts
Payments
3.3.4.1 Receipts
The Account holder deposits in their accounts through a deposit slip. The deposit slip
contains the account number and the title of account. The amount in figure and words is
also written on both side of the slip. The customer then deposits the amount to the
cashier, which is dully signed by the cashier and an officer .At last amount is deposited in
customers account.
3.3.4.2 Payments
The customers withdraw the deposit through their account through cheque.Cheque is a
bill of exchange drawn on a specified banker and expressed to be payable otherwise on
demand.
Cross cheques
Ordinary cheques
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All instruments for collection (check, drafts, pay orders, etc) received for clearing to
be deposited by the customers are be entered on the banks general pay-in slip along
with all the details, especially the bank name/code and the document number.
The clearing official of the bank affixes the banks crossing and clearing stamps
along with his/her signature.
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Make payment.
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In Telegraphic transfer the specific codes are exchanged by the bank official on
telephone but this is normally not followed.
Checks are entered in the OBC register, the number is written and clearing stamp is
affixed along with the test number entry.
Upon clearing that bank credits the bank account and gives advice to the bank.
The bank received the clearing advice along with the check/draft.
The checks/drafts are recorded in the inward mail and entered in the IBC register.
After realization the advice is mailed to the branch and its account is credited.
3.3.7.1 Securities
Common Securities for the bankers advances are as under.
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Guarantees
When an application for advance cannot offer any tangible security, the banker may
rely on personal guarantees to protect himself against loss on advances or overdraft to
the applicant.
Mortgage
A mortgage is the transfer of an interest in specific immovable property for the
purpose of security the payment of money advanced or to be advanced by way of
loan, and existing or future debt, or the performance of an engagement which may
rise to a pecuniary liability. The transfer is called a mortgagor, the transferee a
mortgage.
Hypothecation
When property in the shape of goods is charged as security for a loan form the bank
the ownership and possession is left with the borrower, the goods are said to be
Hypothecated The essence of hypothecation is that neither the property in the goods
not the possession of them are possession is left with the borrower, the goods are said
to be Hypothecated the essence of hypothecation is that neither the property in the
goods not the possession of them are possessed by the lender, but the security is
granted by means of letter of hypothecation, which usually provides for a bankers
charge on the hypothecation goods.
Pledge
In a pledge the ownership remains with pledge, but the pledge has the exclusive
possession of property until the advance is repaid in full. While in case of the default
the pledge has the power of sale after giving due notice.
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Promissory Note
Sometimes promissory note is also accepted as a security, "A promissory note is an
instruments in writing containing an unconditional undertaking signed by the maker,
to pay on demand or at a fixed or determinable future time a certain sum of money
only, to or to the order of certain persons, or to the bearer or the instrument." A
promissory note is incomplete until has been delivered to payee or the bearer.
Moreover, the sum promised in a promissory note may be made by two or more
makers who may be liable there on jointly and severally.
Car Ijarah
AlB provide the facilities of car Ijarah/leasing to his customer. AlB provided fund up
to 4 million to his customer for the period of 2 to 5 year. No interest concept is
involved, therefore profit margin is not announced before transaction .finance on the
concept of asset based financing. Therefore no chance of default for bank.
REQUIREMENTS
EXPLANATION
RS: 40000000
MAXIMUM PERIOD UP TO
ASSET BASED FINANCING
SECURITY(IES)
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Housing Musharakah
AlB also provides the facilities of Housing Musharakah to his customer. AlB contribution
is 80% of total investment, and client can contribute 20% of the investment. The
employee can pay rental and installments to bank in order to get total share of the
property or land which they jointly buy. The period is from 1 to 15 year.
Following are some requirements of AIB Housing Musharakah;
REQUIREMENTS
EXPLANATION
80% OF INVESTMENT
FINANCING BY BANK
1 TO 15 YEARS
MAXIMUM PERIOD UP TO
ASSET BASED FINANCING
SECURITY(IES)
3.4 Conclusion
From the list of products and services mentioned it is obvious that AlB is providing a
range of Products and Services in various fields of corporate banking to its customers and
its services are spread over many aspects of commercial banking.
3.5 Network of Al Baraka Islamic Bank, Pakistan
Al Baraka Islamic bank, Pakistan, operates as branch of foreign bank incorporated and
domiciled in Bahrain on February 21, 1984 and is a member of Al Baraka banking
Group. The registered office of the bank is situated at 95-B Hali Road, Gulberg II, Lahore
and it presently operates through 20 branches (2006: 11 branches) in Pakistan.
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3.5.1
2.5.2
2.5.3
Region: North
Mansehra Branch
(01 branch)
Rawalpindi
(03 branches)
Peshawar
(01 branch)
Abbottabad
(01 branch)
Islamabad
(01 branch)
(01 branch)
Region: Central
Lahore
(04 branches)
Gujranwala
(01 branch)
Faisalabad
(01 branch)
Multan
(01 branch)
Region: South
Karachi
(05 branches)
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CHAPTER 4
ANALYSIS OF AL-BARAKA ISLAMIC BANK (AIB)
4.1 Financial analysis of AIB
Financial measures are also used to rank a companys performance. The analysis of
financial data employs various techniques to emphasize the comparative and relative
importance of the data presented and to evaluate the position of the firm. These
techniques include ration analysis, common size analysis, study o differences in
components of financial statements among industries etc.
The information derived from these types of analysis should be blended to determine the
overall financial position. No one type of analysis supports overall findings or serves al
types of users. Financial statement analysis is a judgmental process. One of the primary
objectives is identification of major changes (turning points) in trends, amounts, and
relationships and investigation of the reasons underlying those changes. Here only two
type of analysis is done
Ratio Analysis
Horizontal Analysis
Vertical Analysis
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2007-2008
(%)
14.13
2008-2009
(%)
(1.0)
(9.79)
(28.52)
(20.13)
(20.60)
Investment -net
0.44
99.49
Advances-net
25.36
(6.38)
(11.45)
440.36
174.8
15.06
(22.97)
(5.22)
15.20
23.84
Bills payable
(64.9)
87.0
Borrowings
(31.08)
465.17
15.52
6.28
Other liabilities
14.06
32.84
Total Liabilities
11.70
23.19
25.0
8.56
(69.69)
Owners Equity
Share Capital
Reserves
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(1.53)
(267.19)
Surplus on Revaluation
(423.5)
175.28
(20.33)
27.36
Interpretation
Horizontal analysis of balance sheet shows decrease of banks reserve with treasury i.e.
14.13% in 2008 as compared to year 2009 i.e. -1.0%. But the balance with other banks
decreased to -9.79% in 2008 and continuing this trend in 2009 also where it further
reduced to -28.52% showing much borrowing on the other hand. The banks lending to
other financial institutions recorded much fluctuation where it decreased to -20.13% in
2008 and slightly reduced to -20.60% in the next year (2009). The net investments
showed increase to 99.49% in 2009. Similarly the banks net advances also showed
considerable decreased i.e. -6.38% in 2009.
On the liability side the banks payable bills showed considerable increase to 87.0% in
2009 as compared to -64.9% in 2008 and the banks borrowing also showed much
increase of 465.17% in 2009 as compared to -31.08% in 2008.
The total owners equity has showed positive signs for the banks growth which
increased in 2009 to 2007 to (-20.33% to 27.36%).
20072008 (%)
24.30
20082009 (%)
14.57
2.84
25.95
98.31
(5.78)
428.85
(63.81)
761.32
(131.87)
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31.85
Dividend Income
22.36
18.50
(21.88)
121.63
11880
Other Income
51.50
15.29
12.93
(54.42)
25.28
9.86
Other charges
76.40
(58.71)
75.86
126.22
Taxation
153.37
(37.40)
(3.76)
(390.81)
(335)
(563.91)
Interpretation
Interest expenses have showed increase to 25.95% in 2009 based with year 2008. This
shows that the management has no control over the financial cost and if this trend
continued the Bank may show huge loss in profitability in the coming years. The gross
profit decreased marginally in year 2009 and recorded -5.78% but increased in 2008 to
98.31% by taking 2007 as base year. Non-markup interest income decreased to -54.42%
in 2008 and increased to 12.93% in 2009 which shows good performance but the critical
analysis shows that this increase is slightly due to the increase of normal incomes
especially income earned in dealing with foreign currency but the major factor
contributing to this increase is due to the gains recovered from the sale and redemption of
securities.
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2007 (%)
4.60
2008 (%)
4.97
3.97
12.55
10.73
6.2
9.62
7.28
4.6
Investment -net
29.96
28.67
46.33
Advances-net
33.94
40.35
30.5
0.72
0.6
2.6
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0.21
1.27
1.17
8.4
6.13
4.7
Total Assets
100
100
100
2007 (%)
2008 (%)
2009 (%)
Bills payable
1.17
0.39
0.59
4.45
2.90
13.26
72.06
78.92
67.7
Other liabilities
2.63
2.85
3.05
Total liabilities
80.31
85.06
84.60
Share Capital
13.47
12.77
12.89
Reserves
4.43
4.58
1.16
Unappropriated profit
0.74
0.76
-1.02
Owners Equity
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1.04
(3.20)
1.65
15.40
Total Owners' Equity
19.68
14.91
Interpretation
Vertical analysis of balance sheet shows that the banks cash and reserve with the
treasury bank has slightly decreased in 2009 as compared to 2007 (4.60% to 3.97%). The
banks balance with other banks also decreased from 12.55% to 10.73% in two years
(2007 to 2008) and further decreased to 6.2 in 2009. Similarly the banks lending to
financial institutions has decreased in 2008 as compared to 2007 (9.62% to 7.28%) and
further decrease to 4.6% showing a decrease in lending rates. The net investments
decreased from 29.96% to 28.67% in 2007 to 2008 and in 2009 increases to 46.33. The
advances rate showed an increase in 2007 and 2008 (33.94% to 40.35%) and in 2009
again decreases to 30.5.
On the liability side the bills payable of the bank decreased in 2007 to 2008(1.17% to
0.39%) and 2009 it became to 0.59%. The banks borrowings showed much fluctuation by
decreasing to 2.90% in 2008 from 4.45% (in 2007) and increased to 13.26% in 2009. The
Banks deposits increased in 2008 as compared to 2007 (72.06% to 78.92%) and in 2009
decreased to 67.7%.Share capital of the Bank decreased in 2008 as compared to 2007
(13.47% to 12.77%) but slightly increased in 2009 to 12.89%. Reserves of the Bank
increased to 4.58% in 2008 as compared to previous year but in 2009 decreases to 1.16%.
The Inappropriate profit showed a slight increase of 0.76% in 2008 from 0.74% in 2007
but in 2009 Inappropriate profit decreases to -1.02% . But the greater reduction happened
in surplus on revaluation of assets which showed a much decrease. This contributed
negative effect on the total owners equity which decreased from 1.04% (2007) to -3.20%
in 2008 but in 2009 increased to 1.65%.
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2007 (%)
100
100
100
77.52
64.14
70.5
22.48
35.86
29.5
27.54
6.52
0.15
1.54
0.002
(5.22)
27.79
19.46
17.75
-7.73
3.30
Dividend Income
5.33
3.25
5.08
0.62
1.11
0.09
18.20
(0.019)
1.98
3.75
3.46
(0.03)
4.15
2.04
2.06
26.09
39.28
21.96
22.13
21.22
8.93
5.47
Other charges
0.88
1.25
0.45
22.25
32.32
3.25
6.95
(5.70)
2.31
8.95
4.64
Provisions/Write offs
Taxation
Profit after taxation
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11.31
27.14
(23.56)
(4.76)
()
39
The total non-markup interest expenses have increased from 22.25% to 32.32% during
2007 to 2008 and in 2009 these expenses again decreases to 27.14% which is not a
healthy sign for the Bank because it shows management inefficiency. Net profit (Profit
after Taxation) of the bank has greatly decreased from 8.95% to 0% in the two years i.e.
2007 to 2009 which shows management inefficiency.
Measure 2007
2008
2009
87.54
86.13 87.03
1.12
-1.301
1.0
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[Equity/Total Assets]
This ratio tells about how well management puts Bank assets to work. Here the ratio
shows a tremendous increase to 87.54% in 2009 from 8.7% in 2008. Above analysis
shows that Bank Assets are very efficiently utilized during these years.
Figure 4.1: Earning assets to total assets
88
87.5
87
86.5
86
85.5
85
2007
2008
2009
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2008
2009
It is a measure of Banks position with regards to taking risk. This ratio increased in 2008
to 51.12% from 47.10% in 2007 and decreased to 45.02% in 2009.
2008
2009
Return on Assets
It tells the efficiency of assets utilized by generating income. The results of the Bank
show considerable decrease from 1.12% in 2007 to 1.0% in 2008 and it decreased in
2009 to -1.301%.
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2008
2009
The Cost to Income results of the Bank show considerable increase from 247.7% in 2007
to 696.7% in 2008 and it decreased to -144.4% in 2009. This ratio indicates that
Operating Expenses of the Bank have decreased in last year as compared to Net Profit
which shows Managements inefficiency to control unnecessary expenses of the Bank.
2008
2009
This ratio also shows fluctuating results during three years. This ratio was 19.75% in
2007, decreased to 14.93% in 2008 and then increased to 15.36% in 2009 showing a
fluctuating profit of the Bank as compared to Net Assets of the Bank.
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2008
2009
income
Formulas
2009
employee
number of employees
total
net
profit/ 1016.74
2008
1022.17
1382.10
number of employees
Business per employee
24172.09
employees
Business per branch
269880.19
branches
Employees per branch
11
branches
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4.2.1 STRENGTHS
Striving to develop and an integrated Islamic Financial System . Compliance with the
rules and principles of Islamic Shariah is the core of the banking and financial activities
of the Bank. To this end, Albaraka has successfully sought the advice and expertise of
Islamic scholars acclaimed for their knowledge and piety from all over the Islamic world
to guide its path and monitor its performance. The Banks activities and operations are
regularly scrutinized by its Shariah Advisory Board.
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During the research it has been observed that the staff/personnel of the organization is
qualified and experienced. Many of the bank officials have got advance knowledge and
experience in the fields of management, banking law and practice.
The relationship of the manager and the other staff of the organization is really good with
the customers, which results in good will and loyalty of the customers towards the
organization.
The managers are fully aware of the recent managerial concepts and are able to deal with
any type of scenario.
Job satisfaction is one of the important factors for the employees to be motivated. The
people in the organization under consideration were found highly satisfied with there
jobs.
Performance appraisal is the way by which one can evaluate the employees
performance; it results in the enhancement of the organizations overall performance. The
performance appraisal is done on quarterly basis in this organization, which results in
better performance.
Friendly environment
The environment of the organization is very friendly. People over here are very
cooperative, not only with the customers but among themselves as well.
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The senior management in the organization is very much competent and experienced;
they successfully handle different internal and external affairs.
4.2.2 WEAKNESSES
The decision making in the organization is completely centralized which results in the
loss of confidence of the employees over the management, employees may not want to
follow the dictates, rules and regulations.
Though there is training academy at head office, but the training programs are usually
confined to the managerial staff, there is a need of training at all the levels.
The recruitment process is quite lengthy which can discourage the new comers. So, there
is a need to shorten the whole process.
It has been found that in the organization under consideration, if new vacancies are
allocated there is a trend of external recruitment, which results in the dissatisfaction of
the current employees.
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The bank does not promote its corporate image, services, etc on a competitive way.
Hence lacks far behind in marketing effort. A need for aggressive marketing is there in
the era marketing in now becoming a part of every organization.
4.2.3 OPPORTUNITIES
Due to the increase of interest of people in business field, many business institutions have
been established, which produces a good lot of qualified and competent business
professionals. So, the organization under consideration can hire more qualified people
from market.
People working in the organization get use to the norms and values of the organization,
so these expirees can be utilized with in the organization whenever required.
4.2.4 THREATS
Increase in Competition
The increasing competition in local as well as national and multinational level also lower
down the profitability of the bank and compelling the bank to use a large amount of funds
to meet out competition.
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The other organizations of similar nature are offering more salaries and benefit packages
to their employees. So, there is a threat to the organization that their current employees
may leave it.
An uncertainty about the future changes has been noticed among the employees of the
organization, it results in dissatisfaction and demotivation of the employees, which is a
serious threat to the organization.
Other organizations of similar nature are using better and recent HR techniques, so they
have got an edge to facilitate their employees whenever they need. It can be a serious
threat to this organization as there employees would not be satisfied of their own
organization which will effect their performance.
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CHAPTER 05
CONCLUSION AND RECOMMENDATIONS
5.1
Conclusion
The Al Baraka Islamic Bank is a new emerging bank and it is trying to get market share
in the presence of national and foreign banks operating in the country. It has played an
important role in boosting the economy of the country but there always exists some room
for improvement.
After observing this AIB very closely and its HR department in particular, following
outcomes have been concluded.
The decision making is still centralized as the middle and low level management is
not taken into confidence.
There are no sub divisions at the provincial or branch level. So when different
problems related to HR are raised, they are left unaddressed.
Most of the employees working in this branch are not much familiar with computer.
They just know how to use their part of software if any problem comes in the
computer they cant fix it.
The spacing requires expansion. The employees are seated congested .If the
customers exceed more than fifteen in number, then the branch get filled with lot of
disturbance.
The marketing efforts at the branch level are less disciplined and there are no
integrated efforts from all the staff members. The mobilization of deposits is mainly
considered as the responsibility of the branch manager but the rest of the staff is
usually least interested.
The bank has been applying the modern concepts of management and marketing at
both micro levels. The interior and exteriors of the branch have been changed but the
staff of the branch has been found less motivated towards the organizational
objectives.
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Bank should introduced incentive plans for employees on regular basis so that if
employees may work whole heartedly for the welfare of their organization. While
giving incentives qualification, work, experience, hard work and such other factors
must be considered.
Fresh graduates must be recruited. As the combination of Experienced and fresh can
produce better results and it will improve the efficiency of management.
AIB is going towards mobile banking but the problem is that a common client has no
idea of its usage due to lack of marketing. I think that a proper marketing programme
must be launched for clients awareness.
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Banks different schemes must be conveyed to the targeted customers so that to have a
reasonable share in market
To motivate the employees their remuneration / salaries should be made at par with
top tier Banks.
Bank should adopt such an induction plan that when a customer opens his account
with the bank he should be supplied with a booklet which enables him to know the
procedure of filing the cheques, pay-in-slip etc. It will save a lot of time of the bank
staff afterward during the conduct of the account of that customer.
The attitude of the bankers with all of their customers is not the same; they pay more
attention and good service to some of the customers and neglect a major portion of
them. Some of the customers approach to the bank officials and get their work done
before others; it is not a good practice. All the customers should be treated equally.
AIB should increase its communication with customers about the terms and
conditions of its different products and services.
Misuse of telephone internet, fax machines and other facilities available to the
employees of the bank must be handled properly.
Scholarship programs should be designed for senior employees and branch managers.
The AIB should get into contract with top foreign universities. Every year the bank
should finance and send their senior managers for further education abroad. After
completion of higher education employees will be in a better position to attain the
strategic objectives of the bank and increase the overall business and profitability
portfolio of the bank.
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The branch network should be improved and number of branches should be increased
to reach and provide services to maximum number of customers.
AIB should conduct meaningful refresher courses, seminars and workshop with a
view to improve the knowledge of the staff. The HR Departments arrangement for
staff trainings to coup with new demands that may become threats for interests of the
Company. The present conventional training programs need to be made more
comprehensive.
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