Haroon Ur Rasheed

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

2006

2007

2008

2009

Revenue

7425

7140

14515

24416

31822

Deposits

76698

129715

223345

239509

273174

Advances

49216

88931

118864

149999

171199

28904

35503

57416

56502

88492

Investme
nt

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.Strong brand recognition
2.Strong allocation potential
3.Recognized market existence
4.Focused business strategy
5.Strong credit rating
6.Large (over 5 million accounts)
7.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

Internal Factor Evaluation Matrix

(IFE)

External Factor Evaluation

Matrix (EFE)

TOWS Matrix

Competitive Profile Matrix (CPM)

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

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