Bank Alfalah Internship Report

Internship Report
EXECUTIVE SUMMARY

FolUowing privatization, Bank Alfalah emerged as new identity of Habib Credit and Exchange Bank with a revived purpose and commitment, Charged with the 'strength of Abu Dhabi consortium and under the leadership of His Highness Sheikh Nahayan Mabarak Al-Nayayao, tile bank has already made significant contributions in building and strengthening both corporate and retail banking sector In Pakistan,

Designing thee product portfolio of bank in response to theeusromer's preferences, the product Iike Royal Profit, Royal Patriot and Royal Custodial are prime, examples of quality .and innovation providing timely banking opportunities to the customers of ban k.

Assessment ofthe needs and wants of the customers is an ongoing process at Bank Alfalah, which helps to continually develop mew prod uc ts. and services. To continuously offer courteous, professional and advanced banking solutions, the team of bank hal'. recently been rejuvenated! by going thougb.jrainingpmgrams with a focus, on information technology.

To. make', their banking scluti 00$ become accessible to more and more people, they have embarked upon ii, rapid expansion program, aiming to provide a networking that makes the services available to any of their

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customers :in ill I the major urban centers of Pakistan- with a view to go international in tile near future.

With their key indicators of progress already soaring to new heights, the bank is committed to dedicate aIL its energies,re&Qurc:e.s. and time to bring h:ighervalue and. satisfaction to their customers, employees and shareholders,

The graph of bank is going up and up-every year. The ratio of pro fit is Inereasingar good percentage, The bank is serving the. people at high level of'standard bygoingaccording to the whishes of the customers,

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COMMERCIAL 'BANKING SCENARIO IN PAKISTAN

At the time (If independence in 1947, there were 38 scheduled banks with 195 offices ill"Paki~t<1iri" but by December 31, 1973, there Were 14 scheduled Pakistani commercial banks with 3,233 offices allover Pakistan & 74 offices in foreign countries ..

Nationalization of Banks was not done 1'[ January 1974 under the Nationalization act ~974, due to certain objectives. Bur it had] negative effects on efficiency of the. banking sector afterwards a privatization Commission was set up on January 22, 1'99l, the commission transferred many banks to the private sector i.e., MeR & ABL. The government approved & permitted theresrablisbment of 10 new private banks in 1991 .hence m.;my new private banks have incorporated, since then; BANK ALfALAH in one of the. namelyestablished private scheduled banks i.11 Pakistan.


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INTRODUCTION TO BANK ALFALAH

Bank of Credit & Commerce ]nternarronaJ (BCCr) was a Pakistan based bank, established by Mr. Agha Hassan.Abdi from UBL, in association with U:A.E and Europe. BeCl bas its branches in 14 different countries of the world. It had its 3 branches in Pakistan. In 1991; [he BtCI was banned, when is was accused by European countries that the bank was involved in some illegal operations with Gull' countries. The major reason behind European accusation was that BeCI was of Islamic mode, Therefor, the bank was closed due to international pressure. Then, its 3 Pakistani branches were !1IlkM over by tae Government of Pakistan, which were named as Habib Credit and Exchange Bank (HCEB) and these were working ns subsidiary of Habib Bank Limited.

Following the privatization In July 1997, Habib credit and Exchange Band assumed the new identity of Bank Alfalah on February 25, 1998. II is now Abu Dhabi based bank as the family of Sheikh Nahayan Mubarik AINahayan purchased 70% of lts shares and 30% shares remained with Habib Bank on behalf 9 f Government of Pakistan,

It has its 18 branches in -8 cities of Pakistan. The Multan branch has recently been opened in May 1999. It is not Listed on any stock exchange of Pakistan.


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Charged with the streagth of Abu Dhabi consortium, and under the leadership orRis Highness Sheikh Nahayan Mabarak Al-Nahayan, Minister of Higher Education MId Scientific Research. Government of Abu Dhabi, and a prQminent member of Royal Family, the bank is .energized with the. vision, envisaging the development of various sectors in Pakistan,

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MISSION/OBJECTIVES

• Edge on competitors,

• High profits.

• Expansion of strong-structure.

• Variety of Products,

• A good banking standard.

BANK ALFALAH'S SLOGAN

Let's Look Ahead Towards a Brighter Future. Together.

BANK BELIEVES

• Every door leads to our customers,

• The legacy of leadership stands as. our guiding light.

• The strength of chain relies-on the strength of each link,

• A keen ear is a key to understanding, Achievement i;'1 nothing

without target.

• Time is our most valuable asset,

• Performance is nothing without the :;tbility to measure it

• Every drop counts.


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BRANCHES NETWORK

Bank AlfaJalh has its 18 branches in 8 cities of Pakistan, Detail is as under:

KARACHI

• Main branch; BA. Buslding, Ll, Chundrigar Road.

• Cloth Market Branch.

• Clifton Blanch.

• Shahrah-e-Faisal Branch.

• Karachi (new Branch).

LAHORE

• Kashmir Road Branch.

• Gulberg Branch.

• Defense Branch

RAWALPINDI

• MalJ Road Branch.


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OTHER BRANCHES

Other Branches are in:

• Siatkot,

• Islamabad.

• Peshawar.

• Mnltan.

• Faisalabad,

• Quetta,

• Sukkur,

• Hyderabad,

• Gujranwala.

Now, Bank Alfalah is going to establish its branches in some foreign countries. Hopefully, in Dhaka (Bangladesh) and Bahrain, its branch ell will be opened. in the year 2001. Some branches will also be opened in European countries,


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THE BOARD

The list of Board of Directors of Bsnk.Alfalah Limited is as under:

• H.H. Sheikh Nahayan Mabarak Al-Nahayan.

• Mr. Abdulla Naseer Hawalled Al-Mansoori.

• Mr. Abdulla Khalil Al-Mutawa,

• Mr. Omar Z. Al-Askari,

• Mr, Naeem Iqbal She·ikh.

• Mr. ]Jcrall1.~I.II-Majeed Sehgal,

• Mr. Muhammad Saleem Akhtar.

Board of Dir,ectors


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THE CORE GROUP

In the core group, there are 2 committees, i.e.,

• Board Advisory Committee.

• Executive Committee.

BOARD ADVISORY COMMITTEE

• Mr. Omar z. Al-Askan.

• Mr. .Ahdulla K.. AI Mutawa.

• Mr. Ganpat Singhvi.

• M.r. Bashir A. Tahir

EXECUTIVE COMMITTEE

• Mr. Mohammad Saleem Akhtar.

• Mr. Ikram-ul-Majeed Sehgal.

• Mr. Parvez A. Shahid,

• Mr. Tanveer A. Khan,

• Mr. Mohammad Yousaf

• M.r. M. Waqas Mohsin.


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AUDITORS

• A.IF. Ferguson & Co.

Chartered Accountants.

ORGAN[ZA TlONAL CHARTS

COUNTRY WI:DE IHIERARCHY

Charat':-ler Accountaru


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organogram ot AUalah Ltd.

Abdali Road, Mullan ..

fOl1;lign EXQhallge Mr. Moha·mmil.d Saleem;

Greclils & AdV(lnOS5 Mr·.y:s·sir·

AJ;Qou!nls

Mr. M~Dod Ahl'llajj


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FEATURES

Bank Alfalah Limited is and established bank. It has some special features with the help of those i( is growing rapidly,

GOOD WORK ENVIRONMENT

As the, work environment plays a great role in this competition age, so (be batik has good workenvironment, All the people work with. cooperation; managers are.so kind that 'each problem can be discussed with them.

EFFICIENCY

Employees at Bank Al-Falah are quite efficient. As Mullan branchis a new one, its employees have to bring. their bank among. the list of good banks, Therefore, they work more than their working hours and it is all according to their will. Ittal~o shows their loyalty, comrnitment to organization.


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CUSTOMER SERVICES

All the customers are entertained individually. Same kind of behavior and attention is given to all the customers,

SUGGESTIONS ASKED FROM CUSTOMERS

Getting ideas forimprovement from customer side is a new idea and that is working very well in Bank Alfalah Ltd. All the customers are asked to fill a suggestion form and the standards of the bank are improved through them.

EMPLOYEE BENEFITS

Employees are given the benefits like' bonus, .gratuity funds, loans, increments, house rent, medical and conveyance,

Computerized Working Environment

In bank, all the work is done-on computers. AJ! the entries are made in computer, Balance ate fed into the computer; This increases efficiency of the bank.


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SHARE CAPITAL

The- authorized capital of Balik Alfalah is of lb. 100Q Million (LOO,OOO; 0(0) Paid-up capital is of E.s 600 Million (600,00Q,OOO) ordinary shares of Rs .. l 0 each issued fOI" cash,

PRODUCTS

Prioritizing its product portfolio in line with irs corporate and consumer needs and wants tile bank is committed TID develop products thai give more value to its customers in boththe sectors.

Following their trendof bringing value added products and.services to their customers the bank bas present Royal Group, Royal Profit and RoyaL Patriot.

ROYAL GROUP

Royal Group is a joint investment plan that allows individuals to invest money collectively and earn higher fate of profit.

Deposit Amount

Rate

100,000,999,999

9.50 %

1,000.,000-9,999,999

9·70 %


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11 Q,OOO,OOO

and above

110.00%

ROYAL PROFIT

It is the profit obtained by Jndividnals nn their deposited amount.

1,000,000 to 9,999,999

9.00%

10;000,000 & Above

10.50 %

Deposit Amount

Rate

50,000 to. 999,999

9500/0

ROYAL PATRIOT

It is similar [0 term deposit. In term deposit one gel no benefit of profit when he withdraws his money before maturity date. But in case of Royal Patrlotif one withdraw his money before the maturity date, he can get the benefit of profit. The profit rates for different periods are following;


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Duration IMonth 3Months 6Months 1 2Month s 2Years
Amount IRate Rate Rate Rate Rare
25,000·999.,999' 8.00% 10.00 % 10,50% 11.00% 11.00 %
1,000,000-4,999,999 8.10 % 10.10 % 10.60 % 11.10% 11.25 %
5,000,000 & Above 8.20% 10.25 % 10.70 % 11.20% 11.50 % CQMSAl'S Institute of Information Technology Lahore 18

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FINANCE POLICY

Bank Alfalah finance on short term basis only-against current assets to its CUStomers in both corporate and consumer sectors. They don't 'invest too much in fixed assets. Maximum credit for .short term is Rs, SO Millions for one PID1Y, they don't go beyond five years financing.

FINANCING SCHEMES

The bank has introduced many financing Schemes such as Term finance & Royal Personal Finance. The bank has recently introduced a.Car lFi nance Scheme.

Royal. Personal Finance

This is the facility for individuals to finance their domestic requirements such as purchase of household equipments, computers, funding of education, marriage, planning a holiday, payments of credireard bills, other liabilities QI' any other personal requirement.

• Facility Range Minimum Rs, 50,000 Maximum Rs. 500,000

• Tenure,

From ! to 3 years .


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Maximum Loan Entitlement (Approximately)

Tenure

I. year

2 years

3 years

Factors

Q.09168

0.04993

O.O~615

ALFALABCAR

It's a scheme that enables cine to own his desired car ar easily affordable and flexible installments with a minimum down payment and

ins uran ce.

SALIENT FEATURES

• Lowest Financing cost available in the market

• Tenure of! to 5 years as per individual requirement

• Quickest processing

e, Minimum processing charges: Rs, 300011a,yable once e Down Payment requirement of 25%

e Repayment through monthly installments


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• Lowest Insurance rates available from bank's approved insurance companies

MONTHLY INSTALLMENTS

Monthly Installments for Alfalah Car tan be calcalaredby multiplying Bank's financing amount with the following factors:

Periods

0.09072 n.04962 0.03609 0.02.944 0.02.??3

Factors

F'or 12 months Poi:.24 months For 36 months For 48 monahs For 60 months

ELIGIBILITY CRITERIA

Art Businessmen, Corporate Employees, and other salaried or selfemployed professionals having net take home income in excess of three. times t~e monthly install menr,


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ACCOUNT O'PENINGDEPARTMENT

Berrowing funds from different sources has become an essential feature of today's business enterprises, But in [he case of bank borrowing funds from outside parties is more vital because the borrowed capital ofa bank is much greater their own capital. Ranks borrowing is mostly in the form of deposits. These deposits are lent OU! to different partie" such deposit creation isdone through open an account in the bank.

The Bank dues not.make, payment ofa cheque bearing a.six-moath or older dale. If an accountis not operated in sixmonths, it is called Dormant Account.

TYPES OF ACCOUNT

• Current Account.

• Saving Account.

• Notice Deposit.

• Term Deposit.


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CURRENT A.CCOUNT

There is- no interest on these raccmmts. H is only for transaction purposes .. They paid on demand. Where a banker accepts, paying alll checks drawn against him to extend of the balance in the acconnts. As there is no profit paid on this account, it is a~so called checkingaccount because cheque can be, drawn on it. Current account is mostly opened for business The minimum balance requirernear for opening the current aecount is, Rs, 10qO.

SAVING ACCOUNT

The. purpose of this aceouot Js to introduce the habit of .saving individuals in the neigh borhood, The profit 01'l. saving accounts is paid on the basis of profit and loss sharing at9% six monthly. The minimum balance requirement for opening the account is Rs.5000.

NOTICE DEPOSITS

Notice Deposits 'are kind of fixed deposits, The minimum balance requirement for opening the account is Rs, 5000 and payment is drawn on maturity of the specific period.


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NOTICE DEPOSIT IS OF TWO TYPES.

• One for which a priornctice of 30 days and k required from the customer before withdrawing deposited amount and for which rate rerum is 6.10% .

• Second for which a prior notice of 3"0 days and above is required from the customer before withdrawing deposited amount and for which the rare of return is; 7.50 %.

TERM DEPOSIT

A term deposit is a.deposit that is made.of a certain period of time. AI the end ofspecific period the customer is allowed to witb draw the principal amount. The rate of return of this account varies from 8 % to 13 %. The term. deposit account varies from one month to 5 years and the minimum balance. requirement is Rs. 5000.


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PROFIT CALCULATION METHODS I)AILY PRODUCT BASIS

Deposued Amount x Rate of rerum. 365 (No. of days in a year)

A VERA'GE MONTH BALANCE.

Sum ofdaHy end Balance

x Rate of rerum

NeL of days inmonth

MINIMUM MONTH BALANCE

Any minimum balance during the month is taken for calculating profit

SAVING Ale (05 DA YS BALANCE).

MINIMUM MONTlIL Y

Minimum Balance of first 5 days is compared to the minimum balance of the minimum balance of remaining 25 days. Less balance is calculated for profit.

The amount of profit is given to deposits in three ways;


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::;.. Cash payment (only in ease of term Deposits). Or as per customer requ iremenr,

=:> By sending bank draft to depositors hOIJieaddless or officers Qf whichever is specified as mailing address.

~ The.depositor's account is credited at maturity.

Amount of Deposits & Other Accounts in 2007.

Fixed Deposits Saving Deposits CLI rrent Accoun ts

Margin, 'Call &SLlndry Deposits

Rs. 4,038,ll3~,OOO. Rs.8,734,265,QOO.

Rs. 1,499,657,000. Rs. 158,708,000.

Deposits of Federal Government Rs, 1,389,710,000.

Particulars of Deposits & Other Accounts

In Local Currency

In Foreign Currencies

Rs. 8,829,008,QOO. Rs. 6,99] ,465,000.

Tolal Deposits

Rs. 15,820,473,000.

ACCOUNT OPENING PROCEDURE


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For the chequtngaccount, there are different types of account holders are. required for all these types ofacccunt holders. The operation/procedure requirement that 1.1l needed for "Indivldual Account' differs greatly from the "Joint Acoounts" proprietorship A/G, Partnership Ale, Private Limited company A/Cand Public Limited Company A/C.

INDIVIDUAL'S ACCOUNT

When a single man or woman opens an account in his or her own name and has the right [0 operate, it is called individual A/C.

DOCUMENTATION

• Copy of National Identity Card.

• Proper Identification (Jntroduction ).

OPERATION

• The person place in the type of account and type of operation required in the account opening form.


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• He/she fills in part [ of the form, a fix his/her either two of four similar signature ( or thumb expression in [he signature space) and get ii intreducedand signed by a person who already has an account with the bank and write his account number in the specific rows in a specific space,

• The person fHlls his or her father. mother, husband/wife OJ.: any other relative's name, his/her address, phone number, his 01' her sign to certify this requirement. This requirement is needed because in his/her absence bank can have correspondence with a specific person ..

• The, person deposits the initial amounr foropening account onto the. cashcounter, The person pun hi'S signature on Form 011 [WI) places in "authorized Signarure" and fills in the "Title of Account" space by wilting his name,

• If the person put his signature .in Urdu or any other language other than English, hesigned a "Vernacular Form".

• The aextday lS: opening of account

JOINT ACCOUNT


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When' two' or more persol1~~ neither partners nor. trustees, open an account in their name is joint account.

DOCUMENTATION

• cqpy ofN,LC card,

• Ide n rificati on (I ntrod It c don).

OPERATION

• The- person checks the type ofaccount and type of operation requireQ in [he respecri ve box Oil the form.

• The-person fills tile Pftrt-I and Part-Il

• Signature of box or all persons are obtained on the formed in the area specified for signature.

• In the title of account.space names of all persons maintained,

• Account holders specified ill the form that they win operate the form singly Of jointly,


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PROpRIETORSHIP ACCOUNT

When the owner of the firm operating si ngly, open an account in Iris firm

Dame.

DOCUMENTATION

• Copy of RI.C.

• Status of the firm.

• Copy of Sole Proprietorship Declaration.

OPERATION

All operation remains the same, except thar the firm name is written in "ti(le of account" area and Signature of the proprietor in the specified area.

PARTNERSHIP ACCOUNT


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The account is opened in the firm name and an partners designate one or two persons to act behalf of the partnership firm all acts of the firm jointly and serverly.

DOCUMENTATION

• Copy of N,LCof all partners.

• Status ofthe firm ( In case of registered fini) ),.

• The attested copy of Partnership Deed (in case of registered firm).

• Operation oftb.eAlc.(al> perdeed),

• Third party Mandate,

• Letter showingtheauthoriry of one or mere partners to act on.


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OPERATION

All other requirements are same. except that ail partners dully sign theform, cards are signed by all of those partners who will act on behalf of the firm.

PRIVATE LIM[TED COMPANY ACCOUNT

DOCUMENTATION

• N.I.e of alll partners.

• Articles and Memorandum of association,

• List of directors ..

• Resolution of Board of directors,

• Certificate of Incorporation Form 29 (B) (Lasted Copy).

Company secretary will certify all thesecopies.

OPERATION

• The person authorized in the resolution Of the board of directors put their signature 00 the S.S Card.


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• Next of Kin requirement is not need in a case of Private Limited Company. Other procedure IS same.

• After completing eachandever_y formalities are: signed by all partners who will act OllJ behalf of the firm.

PUBIC LIMITED COMPANY ACCOUNT

DOCUMENTATION

• Copy of N.te ofall partners.

• Articles and Memorandum of association,

• Lis r.of direcrcrs.

• Resolation of Board of Directors.

• Certificate of commencement ofBusiness,

OPERATION

Operation is same as PrivateLimited Company


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RESPONSIBILITms OF ACCOUNT OPENING DEPARTMENT

• Documentation Intact.

• Proper Introduction.

• ChequeBook Issuing.

• Receiving Inward cheques.

• Account Closing.

• Every Day Posting.

ACCOUNT CLOSING

When a customer wants: to close his account because of any reason, he has to give a. hand written rapplication (0 the head of the Operations Department to close his aecount.plus rernai n ing leaves of th.e chequebook. The Operations Manager first verifies the.signatures of account holder, then closi ng is done from [be registers on the computer where the accoun twas opened. In [he file of account holder, his account opening form is also crossed.

For this closing, a fee of Rs, 150 is charged in Bank Alfalah,

CHEQUE BOOK ISSUANCE

When the account fS opened, then, the. customer is-given a cheque book to sign upon and en cash money" It is proceeded as under,


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PROCE[)URE

All theaccounr opening formalities must be completed before, issuance of cheque book. Particulars. of rile chequebook requisition should be completed! containing title of'account, aCCOnD( number, lype of currency,

number of leaves andsignature of t1H~ customer. Signature of, tile customer are verified 0.1 Ifcustomer is unable to collect his chequebook, then he can give authority to

the 'third person to collect his. cheque book' on his behalf by signing on the

back of .rhe requisition. II~ such case, the particulars ofthe third person are

required like name of the person, NIC number and signature of (hal' person

on requisition and chequebook issuance register.

Chequebook ]8 taken out from thesafe/locker. It IS assured that-series of the chequebook is in order. Particulars are entered in the cheque book issuance re-gister. Account number is stamped 011 every leaf of the cheque book and those leaves ate counted, Name (if the account holder is writtenon the rover of the cheque book and requisition on the chequebook for further issuance is properly filled stamped arid signed by officer of the bank.

Chequebook is delivered to the customer and his signature is taken on the cheque book issuance register, cheque serial number 18 entered in the system (Bank Excel).


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Stock of Cheque books are balanced 'at the .end of eaeh day and kepI under safe custody.

Earlier in the banks were charging a fee for issuance of cheque book, but now whenever a. new ac;CQuJU is. opened, the aCC'OlU1.t l1oIdt;\f is issued a cheque book free of charge.

Bank Alfalah issues the. following ehequebnoks,

• Saving account - 25 leaves + Current account - 50 leaves

• Currentacceunt - 25 leaves

• Foreign currency s - 10 leaves

• Foreign currency £ - 10 leaves

Loose cheques are-also issued jn some cases.

RECEIVING INWARD CHEQUES

Another responsibility &fullction of Account Opening Department is to receive Inward cheques for collection, of other banks. These cheques are sent.to '(; -. learing official who, clears these cheques at SBP from other banks.

EVERY DA Y POSTING


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At the end of each day, Posting of cheque books is performed. Tile. account opening department makes.credit vouchers ofexciseduty and provincial tax on chequebook leaves, and posts it in the company.

CASH D'EPARTMENT

Mr. Aqeel and Mr. Jawad helped. us in learning about C<lEI1 Department. Cash Department performs two main functions:

• Cash Deposits

• Cash Payments

CASH.DEPOSITS

Cash receiving officer receives cashalong with pay-in slip from the. customer. He checks if [he deposit slip is. properly filled lip containing title of account, account number, date and amount In word and figures. He also verifiesxignatnre. Detail on both counter file and cash receipt voucher should be the same. Cash is received by the cash receiving officer, twice countedand matched with the deposit slip. The cash details me written all the back of the deposit slip and are also entered in cash receiving register. Cash received stamp is affixed on the face of the deposit slip along with the s ignature, of the cash receiving officer,


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Deposit slip and cash receiving register is given to the officer In cash department. Again proper scrutiny is made by the officer cash department both 011 cash receiptand cash receiving register: Officer cash department signs both the deposit slip and register; Deposit slip is credited and posted in the concerned accouutin the system.

Counter follio is given to the depositor as receipt One consolidated cash debit voucher is pOllted nn the system to balance (he bash.

PAYMENT OF CHEQUES

The process for payrnentof cheques for local and foreign currency is same. First the customer presentsthe, chequeor holder to branch and the particulars of cheque. are properly filled in. Signature of the holder is taken on the back of the cheque. Cheque handed over to the officer cash department for scrutiny where officer checks the dale, amount in words and amount in figures, payee's name crossing if an)', 'account number, cheque serial number; any material alterations; endorsements <lind signature of the. customer. Account is debited and then the officer cancels cheque, lt is posted in the. system and posting stamp and number is affixed on it Cheq lie is handed over to tile cash payment officer for payment. One more signature. all the back of the cheque is taken from the holder to match with the first one.iand then cash ill paid 'to the payee .. Cash detail is written on the back of


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the cheque, Gash paid stamp is affixed on true face of the cheque: Entry is passed in the. cash payment register.

If the payment is of Rs, 50000 thecashier can make it on it~ own. If the amount is greater thiln Rs, 50000 to Rs, 10Q,000 the cashier ,and cash deposit Incharge will 'Verify the check .and will sing it. Then die payment will be made. But. if the amount is greater than Rs, 100000 to Rs, 1000,000 the manager operation win also verify the check and sign it so that the payment can be made. If the amount is greater than Rs. 1000,000 the Branch

Manager

WiIJ also verify the check and sign it. Otherwise the payment will no! be made,


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CLEARING DEPARTMENT

ill cleating, Mr. Anees remained so helpful. The clearing process majority involves receiving the cheques and making payments. This process can be: inward or outward,

CLEARING PROCESS (INW ARD/OUTW ARB)

Here the local cheques are received that are drawn OI1..BAF An the cheques are received on one counter along with the paying slips duly fined in properly containing particulars of cheques and accountharder, Counter folio of paying slip is banded over to the customer by putting stamp for #Cheque received for collection for Bank AI falah , on it duly signed by officer .. These cheques are scrutinized and cheques for local clearing are separated from OBC. These arethen entered in clearing register and chequesfor collection, are entered in OBC register and banded over the Bills Department for collection.

Clearing officer checks and verifies title of all the cheques deposited by the customers 10 confirm the, good title of the cheques, Cheques ape scrutinized properly and paying slips are separated from cheques, Special crossing, endorsemem and clearing stamps ate- affixed on tile cheques. Cheques of each bank-are sorted and. arranged branch wise. AIJ the cheques are then entered into the dearing system of the bank. Print out of the dearing is taken and details 'are 'attached with the cheques of each hank.


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Details of these banks ate then entered into the clearing schedale containing number of cheques presented and their total amount against the name of each bank Then total number of cheques presented 10 all banks and their total amount 1'5 writtenon the foot of [hat schedule, which is tallied with the. dearing register.

Next morning, these chequesare delivered to the respective. banks in dearing house of Stare Bank of Pakistan between 9:00 10 9:30AM. In the same manner, other hanks present their clearing drawn on Bank Alfalah, TOleRI number of cheques and their amount delivered 10 other banks and received from them are written on the Clearing House schedule branch for (heir payment. After proper scrutiny of cheques, verification of signatures and confirmation of balance in the account, the Officer Cash Department pays these cheques by canceling and posting them in the system.

If any cheque is not passed due to insufficient balance or any other reason, Officer Gash Department returns the .sarne cheque by attaching a cheque return memo containing reason for return. This cheque is entered into the cheque returned register and bank charges are.deducted according to the schedule of charges,

Second clearing is called at 2;30PM to check the fate of the cheques presented to other banks ill the morning. Ifany cheque is to return, that is delivered TO the same bank in seeond clearing. In (he same manner, if any


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cheque presented by Bank Alfalalil ill first dearing is returned, they receive it and once again give schedule of Clearing figure to the Officer 'Clearing House SBP containing number of cheques and their amount delivered and received unpaid.

REMITTANCES DEPARTMENT

The need of remittances is commonly felt in roday's business. The main function of remittance department in a bank is the-rrensferof funds,

Mr. Hassan in Bank Alfalah 1$ the officer for Remittances Department

In remittances, followi.ng banking instrurnentsare used:

• Pay order

• Demand draft

• Telegraphic transfer

The procedure for dealing with all these under local as well as foreign currency ill BAF is as under.

PAY ORDER

A pay order is :l!' written order issued by a hank, drawn upon & payable by it~e1f,' to pay a specified SUm of money to or to the order ofa specified person.


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PROCE[)URE FOR PAY ORDER

Application form is given [0 the customer to fiJI. Two signatures are taken on the form one for request and other for receiving the instrument, All the particulars of application form are checked and bank commission charges and withholding tax :is written on the top ofthe application form. If the customer is maintaining hisacoounr with the branch, he can give cheque for Iota] amount of instrument plus bank charges, Cheque and application from is then .gjverl to the officer Cash Department for the payment of cheque. After proper scrutiny, Officer Cash Department posas the cheque and signs the application form in token of payment received. If the customer wants to pay cash, then cash is deposited lDy '[be customer along with the bank charges arid withholding tax,

Application form is then given to. the Remittances Incharge for issuance of instrument, He enters all the particulars of the application form in vthe systein and computer .gives an Auto Control Numb-efta the. instrument. Printout IS taken on the block of payment Order. TWQ authorized officers of the branch then sign it. Instrument is then prorectographed, and gi ven to. the customer.

When instrument is presented for payment, Ii is posted in the system and canceled by the Remittances Incharge after proper scrutiny.

DEMAND DRAFT


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A Demand Draft (DD) is am instrument, which is drawn' by one bank upon another bank for a specific sum of money payable on demand. It I.S made by the bank, given to the purchaseragainst cash or cheque.

Parties Involved in DD:

• Purchaser

• ISsuing Brauch

• Drawee Branch

PROCEDURE FOR ISSUING DD

Issuance proced ure of Demand Draft is same as of pay Order.

PROCEDURE FOR DEMAND DRAFT PA YAHLE

When DO advice is received, signatures of both signatory on the DD are verified. All the particulars of the DD payable are entered in [he system. Prints DOt of vouchers (DD payable) are. taken. When in&tmment is presented for payment, signaturesof the 'atrorneys are verified on on and after prnper iscrutiny, it i~po&ted in tile system and! canceled by the. Remittances Incharge,

TELEGRAPHIC TRANSFER


Internship Report

Sometimes, when the remittance is urgently required by the remitter, Telegraphic Transfer (TT) is issued . TT may be issued to general public on their written request and against tim value received.

PROCEDURE FOR ISSUING TELEGRAPHIC TRANSFER

Application form isgiven to the customer to fill, Two signatures are taken on theform one for request and other for receiving the instrument. AJI the particulars of application form are che-cked and bank commission charges and withholding tax is calculated and written on the top of the application form (if' custorner is tax payer, he Can give tax exemption certificate). If the customer j.S maintaining his account with thebranch, he cangive cheque and application form is then given to the officer for the payment of cheque. After proper.scrutiny, Officer Cash Department posts, the cheque. After proper scrutiny, Officer Cash Department posts the cheque and signs the application form, to assure that payment is received. If the customer wants to pay cash, it is deposited by the customer 011 cash counter, Cash Receiving Officer receives cash n the application form along with the bank charges and withholding tax. Application form is the 11 given to the Remittances Incharge for issuance of the instrument. He enters al! the particulars of the application form in the system (BPG) and computer gives an Auto Control Number to the T_ T.

Telegraphic Transfer message is written Jn the telex' containing name of transferring branch, name of receiving branch, elate, amount, currency;


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payee's name and account number or identificationif any, payer name and payment advice. A test number is given to the T. T. message for receiving branch, This message is then sent through telex 10 the receiving branch followed by a T.T. advice. The <customer is confirmed that T.T. has been sent.

PROCEDURE FOR T. T. PAYABLE

WherrT'T. message is received, tested number on the T.T. is checked and verified. Tested number is then written in the register and signed by the holder of test keys for officer record. All the particulars of the TT payable are entered in the system, Payment instruction on the T.T. message are followed if it is payand advice it will be paid through TTR on the. cash counter 01" through clearing and if it is credi'tailla advice, it will be transferred in the account mentioned in the T.,T. message, Printouts of vouchers (f.T. payable) are taken. If ITR is presented for payment, signatures of the authorized officers are verified 011 Tli'R and after proper scrutiny, it is posted in. the BPG and canceled by the remittances Incharge, Procedure for Foreign Demand Draft lssuance:

Application form is given to the customer to fiU the same. Two signatures are. taken 011 the form, one for request and other for receiving the instrnment, All the particulars of application form are. checked-and bank commission is charged, which is US$ 5/- for each amount of FDD. Cheque 3$ received from the customer for total amount of FDD plus hank


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commission. Cheque and application form is then given to the Office Cash Department for the payment of cheque.

After proper scrutiny, Officer Cash Department posts the, cheque and signs theapplication form, to assure that pay men tis received, Then cheque and application form is given to Incharge Remittances, who will enter all the particulars of the application in the FDD Issuance Register, If the customer wants to p~y cash, :ir isdeposited bythe custpmer on cash counter. Cash Receiving Officer receives cash on the application form along with the bank charges. Application form is then given to [he Remittances Incharge fOJ]" the issuance of the instrument A control number is allotted to the instrument from FDD Register. Instrument is. completed by putting all the particulars ill it and signed by (WI) attorney holders, Instrument is then handed over to the .. customer .. FDD advice is sent to the responding foreign bank/paying bank where they are maintaining dollar account. through registered mail. Exchange. Transaction Credit Advice, (ETCA) is sent ro the Head Office for the reimbms.emenLCopies of the flDD and ETCA are kept in the record of the bank.

PROCEDURE FOR FOREIGN TELEGRAPHIC TRANSFER ISSlJANCE

Application form Js given to the customer to fill the Same. TWo signatures are taken on the: 'form one for request and other for receiving the. instrument, AIJ the particulars of application form are checked and bank cornmissin is charged, which is US$ 1 ~/- (:llat nne) for-each amountof FTT.


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If cheque is received from the customer, it is taken for total. amount of FIT plus bank commission, Cheque and application form is then given to the. Officer Cash Department for the payment of cheque, After proper scrutiny, Officer Cash Department posts thecheque and signs the applicationform to assure that payment is received,

If the customer wants to pay cash, it is deposited by the customer Oil. c-ash counrer. Cash R:eceiliingOfficer receives cash 011 the application 'Form along with the bank charges. Application form is then given to the Rernitrances Incharge for ITIle issuance of instrument. He enters all the particulars of the application form in the FTT Register and a Control Number is allotted to the FTT. IT message is writtenin the telex containing name 0;[ transferring branch, 'name of receiving branch, date, amount, currency, payee's name and account number or identification ifany, 'payer name and payment instructions. A test number isgiven W (he FTT message for receiving branch. This message is then sent through telex to the receiving branch. Customer is confirmed that FIT has been made. Exchange Transaction Credit Advice (ETCA) is sent to the. Head Officer for the reimbursement. Copies ofthe FT'F and ETCA are kept in the record of the bank.

COLLECTION

All the cheques. under collection are called cheques under Collection in Bank Alfalah Limited. There are two types of bills for collection:

• Outward Bills for Collection


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• Inward Bills for collection

OUTW ARBS BILLS FOR COLLECTION

Al the cheques are received on one eounrer along with the paying slips duly filled In properly containing particulars of cheques and account holder. Counter folio 0] paying slip is handed over to the customer by putting stamp for "cheque received for collection for Bank Alfalah' on it duly signed by officer. These cheques are scrutinized and cheques for local clearing are separated from OBCs. Cheques for local clearing are entered in Clearing Register, whereas cheques for collection are entered in, OBC register 'and handed over to the Bills Departmentfor collection. OBC number is allotted to the cheque from OBC register. Special crossing and bank endorsement stamps are affixed on the cheque.

aBC schedule is attached with the cheque and dispatched to the main branch of that dty for collection. If they donot have any branch in that city, then cheque will be sent to the Collecting Agelit of Bank Alfalah for that city, ami lfthey do nor have any collecting agent even, then cheque can be sent directly to the drawing branch. Instructions ate given 011 the OBC schedule ior the payment of [bar cheque. Contra-liabilrry vouchers are also posted in the .sysrern. When OBC is realized, collection bank pays the. amount through IBeA ifit is the same bank or through DD if it is-another bank. If DO is received against OBC, it is presented in' the clearing for


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collection. H mCA is received from the branch for the paymem of OBC, certain vouchers are posted in the system.

iNWARD BILLS FOR COLLECTION

Ifany other bank sends-a cheque of Bank Alfalali Limited, ,it is Inward BUll for Collection. Bank Alfalah remits money after checking the balance of the easterner account,

The process of collection starts when the cheques of Bank Alfalah Ltd. Are received from Either banks. Theil these cheques are sent to the, Head Office Karachi, which sends the cheques [0 SBP for clearing and gel the confirmation of cheque and credit advice. Main activit), of clearing is performed by Head! Off-ice, which contacts other banks through SBP.

BILLS FOR COLLECTION IN 1999

Payable In Pakistan Payable Ollilside Pakistan

Rs. 22,092,000 Rs. 1",964.738,001}

Total

Rs. ] .986;1:130,QOO


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CREDIT

AND ADVANCE

DEPARTMENT

Credit and Advances Department deals with the provision. of loans (credi t fad lity) to the customers, At B AF, qed if is given on the basis of a policy made by Bnard of Directorsand is catled Credit Policy. This policy stalemenr sets our the underlying principles from whiGh the ROD will determine the commercial credit activity of Bank Alfalah Ltd. The committee to approve direct and reviewcorrunereial lending of Bank and to ensure that credit policies are adhered to and the credit operation is conducted in an efficient and effective manner.

Purpose of this policy is to set out the credit policies for the boar, which wi II be implemented by the Credit Committee, The policiesare described under the ifollowing readings:

• Credit principles

• Portfolio limits

• Approval

• Administration

• Monitoring and review


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1. CREDIT PRINCIPLES

It incsudes principles to be adopted for lending authority, approval, monitoring and control on a basis consistent with Bank ALfalah Lrd.

The operational objectives and business strategies regarding objectives, structure, performance and administration are also included.

2. CREDIT PORTFOLJlO

These are the guidelines set down by Credit Committee regarding:

• Total facilities

• Term facilities

3. CREDIT APPROVAL

When the terms and conditions me set and both parties are agreed, the Creditcommittee makes approval for the credit,

4. CREDIT ADMINISTRATION

The. credit application when handed over to Credit Administration, then they critically examine securities given by client to bank againstcredit facilities. Credit Administration keeps Liaison with lawyers, surveyors, valuators and other corporate bodies.

5. CREDIT MONITORING

The client can present his ownaccount insurance policy as security for credit, When he presents his own account as security, his account is


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bladed for the same amount, which the bank is granting rum. When the facility is adjustedat that time, the blocking is released from the account. Clients can also use [bird party's account for geRing credit. Shares can also be kept as security in this-case these :lire verified and duly signed. These are. kept separate to avoid theft. The company whose. shares are used is informed that its shares are ] n the custody of the bank.


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ADVANCES

Bank Alf'alah Limited, Abdali Road Multan, provides the following facilities In Advances Department:

• Funded facilities

• Non-funded facilities

FUNDED FACILITIES

These are the facilities In which funds like cashfund are included.

LPO

Goods purchased on behalfofbank and provided to customers,

PRE-SHIPMiENT

It provides to prepare censigrunent. Maximum tenor is abou t ~ 50 days, Profit may be '16% per annum, The. repayment ill generally from sale proceeds. This is for preparation of consigrnneut.

POST - SHIPMENT

During export process, funds are required for preparation of next consignment that is provided by post-shipment facility. Maximum tenure is 150 days. Profit rate is about l 5 % per annum.


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NON -FUNDED FACILITIES

These.facilities are om:

• Letter of Credit

• Letter ofGuarantee

L/Cis of two types:

• Sight LIC for 90 days

• Usance LlC for 120 days

CREDIT CARDS

Bank Alfalah has no credit card facility but, Inshallah, in March the credit cards will be issued by bank.

ADVANCES IN ]999 Rs.. 10,327,324,.000

AIl ia.Local Currency


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FOREIGN EXCHANGE

DEPARTMENT

Foreign Exchanged Department deals within exports and imports. Mr.

Saleem at BAF supervises it. The.bank acts as exporter a~ well as importer bank fordifferen t parties who are in the bus-iness of export and import.

EXPORTS

EXPORTER

When the bank becomes the exp<:)[[er bank for apartythen the market stability, reputation, financial position ofthe exporter is firs! of all checked:

DOCUMENTS TO BE ATTACHED FOR EXPORTS

• Invoice

• Bill of Jading

• Packing list

(a) Total quantity

(b) Net weight/carton

(c) Gross weight/carton (dj Total net weightkarton (e) Total gross weight

• Bill of exchange (original or draft)


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• E-forrn:. Initial document on which total export proceeding is based.

In this form, all [he conditions 'are given, which are necessary for exports,

• Letter of credit: It 1$ written agreement between importer and exporter.

• Benefic-iary certificate

• DHL certificate (TCS certificate)

• FOlTIi'M'

• Certificate of Origin (Form-A)

FORM-E

Government has provided facility to exporter in taking E-Fcrr» from any bank and he can present it to any bank for aegoriation.

Export Proceed RealizationCertificare

SBP gives rebate to exporter against export after realization. It is paid according to commodity wise and bill wise.

Claim period: .1 year ..

TRANSPORT DOCU1MENT (BILL OF LADING, AIRWAY BILL)

• When insurance is done by importer, C&F (cost and freight) usually used.

• FOB cast (free on board)


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• eIF (cost insurance andfreight) when insurance is done by exporter, CIF is used.

• Tenor (At sightj drnrnediate payment by importer after receiving product,

• Partial shipment: Product is sent partially.

• Transshipment: Product is sent via any country

E·FQRM CERTIFICATION

When export is done on C&;F basis, so bank issues Evform certification to exporter and he submits it to the custom Officer along with Eform certification to certify Evform.

FORM OF AUTHORIZED DEALER~S CERTHICATE

State Bank penni ts exporter to issue B ill of Ladi ng in the favor of Eform bank. Butif requirement o{LlC is [Q issue Bill of Lading in faVOI" of company [hell. shipping. company issues bill of lading in favor of Exporter Company. Authorized Dealer Certificate is filled! for this purpose,

CERTIFICATE OF ORIGIN

This certificate shows that goodsare from Pakistan.


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COVERING SCIrnDULE

Ifin covering schedule, rr is given that "please remit proceed to our Karachi Office, Ale no. 5740734881 with ABN (Amra Bank New York), USA for onward credit to HAF Multan."

BENEFICIARY CERTIFICATE

If UC requires some. information as proof of anything from exporter then exporter has to present beneficiary certificate for that proof.


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E-FORM

iE·form bas four copies:

• One for customofficer

• One :for exporter

• Triplicate copy for S8P

• Duplicate copy for bank

Rank reporting or duplicate and triplicate is done by hank. Custom Officer (date is given 011 the foot of form) should clear product

PA YMENTFROM IMPORTER BANK

It is the choice of impcirter to Cip\":11 lie from any bank and the bank from which LlC is opened can also refer to some .. other bank for payment. So bill of exchange is sent to referred hank and other documents are sent to Lie opening bank.

SWIFT

~l is network amongall banks. No other institute can get involved in h.

nn.r, OF LADING

Certificate from shipping company for loading documents, ]f requirement of LlC is to issue 81lil of Lading in favour of LIC opening bank,


Internship Report

then authorized dealer certificate will be provided by bank in favor of Lie opening bank.

BANK KEEP IN RECORD

• Covering schedule

• Invoice

• P-acking Jist

• AWB

• Certificate of Origin

• E-f6rm

Normally bank keeps photocopy of all documents in record.

Negotiabledocuments (original documents).

IMPORTS

Lie is opened by the importer. There 'are two types of Lie. • Revocable

• Irrevocable.

NECESSARY REQUIRE:MENT

Ifplace of issue and port of loading. is different on BiIJ of Lading, then along with the stamp of shipment OIl board, ve-ssel name and port of shipment is written.


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1) Issue date of Bill of Lading - shipment on board.

2) There should not be cutting 011 bill of ~ading without authentication.

31 Bill of lading should show capacity of agent. If bill of lading can he taken by the agent of Importer Company, then his name should be. mentioned on bill of lading.

4) Original asp should be presented.

5) If TT reimbursement is mot acceptable, it means bill. of lading is necessary.

When documents are received for export, do enter into lodgment register.

DOCUMENTS. FOR IMPORT

• Performa Invoice signed by importer

• c.ategory passbook copy attested by any bank

• LlC opening application filled in by tile customer

• Import registration with export Promotion Bureau

• Annexure

• Verification of signature by S. S. Card

• LlC issued (111 basis ofLiC application form.

• Insuranceifcovered by buyer.

• Insurance cover note.

• Insurance policy.


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ACCOUNTDEPARTMlENT

Most important department of bank as it is concerned with:

• Revenue

• Expenses

• Assets

• Liabilities

These are 'the, pillars of any business. This department is supervised by Mr .. Masood Ahmad. In this, department, all the vouchers that are posted during one day are sent to the Account Department next day. These vouchers are already posted 10 eompnter by [he concerned department. So computer also sends a report ro the Accounts Department, The accounts Department has to tell that ail the vouchers are posted under [he right heart Amount; date, stamps, sig-natures all the requirements for cheques and vouchers.are flilly checked.

Ifany kind of renovation or construction or rebuilding is done,all is paid from the Accounts Department. Like petrol for the car of BV]' and VP; stationery charges, medical allowance, etc. are all paid by this department.

DAILY CUSTOMER MOVEMENT LlST


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All the changes thatare made in accounts of customer are shown in the. daily customer movement list. By using this list, people of Accounts Department can prepare the voucher".

Following activities are performed by Account Department:

• Voucher preparation

• Preparation ofdaily, weekly, monthly, and annual statement.

• Budgeting and fixed assets

• Employer's benefit

• Expenditure approval;


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SWOT ANALYSIS

STRENGTHS

• Bank hasa belief in customer service

• Backed by strong AQu Dhabi Consortium

• Customer give suggestion for tli~ improvement of bank .and these sLlflgestiol1s are Iistened carefully.

• Manager & EVP Mr. Asif A .. Sheikh. has good Co 0 rdination with

staff members.

• Environment is friendly,

• Productsare excellent

• EXpansion is consisterrt

• Modernized banking (online + Internet)

• Fully computerized.eaeb department has to own Pc.

WEAKNESSES

• Beel Image,

• Mixed Culture

• New Setup

• No ATM facility is. provided


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• No traveler cheques are issued.

• Tokens are [lot issued to customer so the cbancesof doubling ilf<e

present.

• No credit card facility isavailable,

• Personal Lockers are not available,

• No internal audit is l:rreh'l.

• Staff is lesser ..

OPPORTUNITIES

• Informacion Technology.

• Credit Card Facility

• Internet Banking

• Establishing Foreign Branches

• Local Setup Expand

THlREATS

• Competition

• Legal Reputation


Internship Report

RECOMMENDATIONS

Finally, We are giving some suggestions for Bank Alfalah Limited.

These-suggesdons.are balled. en our experience with hank

• This is a routine.practice that in order to give personalized services .to the, customer, bank staff tries to fiji all the columns of AOE with their own handwriting, which is wrong. AOE must be filled in by the customers. Bankers should avoid 10 fill in the AOEbecanse it can create problem if the ad dress, title. of'account or any orher jnformation provided by the customer has not been written properly. Customer may he affected or he may claim that this information was not provided by him, but ifAOE is filled by the customer then banker cannot be held responsible for any incorrect information provided by thecustomer,

., Under no circumstances chequebook .should be given to the customer if the account formalities are. incomplete.

• There are two officers involved in cash deposit process, which is time consuming. Cashier should be given certain powers to receive cash of llS$, DM and L to provide prompt services.


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• Similarly, there are two officers involved in cheque payment process, which is rime consuming, Cashier should be given certain powers to p<!y cheques up to Rs, 25,OOO/~ to provide prompt services,

• Cheques, which are drawn on Bank Alfalalh Branch and returned unpaid Iii clearing, are not reflected in the Statement of Aceount of· the cnstomers. These cheques must be reflected in tile accounts so that credibility Of the CUstomers may be assessed,

• Tokens should be issued 10 avoid doubling.

• Lockers, ATM, credit card, traveler cheques atl.these facilities should be provided to attract more customers.

• Audit should be held inremelly. Rathel." there should he an Audit Department in the branch to make audit btl daily basis. This can become 80 helpful as. different banks are having this department of their OWIl.


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MARKETING PRACTICES ADOPTED

BY' BANK

Nowadays marketing of produces ill of prime importance for any organization. III this dynamic' environment; every organization has irs OWIl Marketing Department, which is responsible for creating. the demand of its goods. and services.

Nowadays banks also have their marketing departments, whioh are responsible forcreating demand of their products, i.e., their deposit schemes and increasing the deposit of the bank.

Bank Alfalah has its own full marketing Department at the Head Office, Karachi. This department prepares different deposit schemes for its customers, time to time, in order to increase the business of the. hank. At branch level, the Operations Department follows marketing practices, At each branch of bank, officers are available to provide marketingactivities of their products,

They make customer calls and personally visit the. potential customer toconvince them to invest in AFB, They make phonecalls to customers and inform them about their schemes, profit rates.


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CONCLUSION

BANK ALFALAH (BAF 5 under the leadership of Sheikh Nahayan Mabarak Al-Nahayan has made significant in building of strengthening 'both the corporate and retailbanking sectors 1l! Pakistan.

The Bank attained Number two (2) positionin terms of its Balance Sheet size amol1gst the private banks. in Pakistan in 1999. The significant improvements in terms of its results in comparison. to the corresponding period for the year 1998 have been much above the market expectations .. Bal ance Sheet footing of the Hank reached the level of Rs.21 Billion-an increase of more (han 46% over the previous year .. Customer Deposits rose by 33% on a year-to-year basis and stood at Rs.15 .82 Billion. Bank maintained a Capital adequacy ratio of over I J%, which is significantly above the Basle guidelines and international requirement of 8%. The pre-lax profit of the Bank also increased more than five (5) times ali compared to the previous year rand stood at Rs..354 million for the year 1999. Bank's investment in the Financial Sector was based on the confidence of bank in

the countryas a whole and it has been amply demonstrated by the growth plans Of bank though ambitious in nature but prudent and ill line with the potentials of the market place, Although the financial sector in general witnessed some shrinkage, both in. terms of downsizing and closure of certain locations, the bank, however, continued with its. expansion programme and added five (5) new Branches in their network, one each in Islamabad, Peshawar, Multan, Falsaiabad and Lahore.


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Internship Report

BANK ALlFALAH views specialization and service excellence as the. cornerstone of its strategy. The people of bank innovation, creativity, reliability, customized services and their .execution are the key ingredients fortheir future growth, Rased on this approach, their Treasury Division and the Structured FinanceUnit have been geared to provide specialized services to the Corporate customers, Revenues from these activities have started yielding dividends and they expect significant growth in these areas ill. the coming years, While building on their in-depth familiarity wiilithe]r customers' meeds and anticipated developments in the banking industry; the Retail and Corporate areas b,[ their operations will continue to provide a strong .and stable base to the business of the Bank.

They are aware that they have stepped into the 21~( ,century and they must meet its challenges by acquiring the highest levels of Technology. Theywill thus be.accelerating their enable them distribute their products and services through most efficient and high-tech means. They say that they will invest in [he modem tools and substantial allocation of resources will he made to achieve this objective during the current year. Their programme to launch real time - 011 line Banking Services and introduction of ATMs ar strategic locations have been firmed npand it wil] be fully operational during the year 200],


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Their focus would be to constantly seek out growth opportunities through increased quality assets and by offering a wider range of products and services to th.eireMeemed custemers, There are significant growth

opportunities for BANK ALFALAH and they areconfident in their ability to grasp them. They are committed to enhancing the shareholder's value and took forward willi greater optimism to a prosperous future for BANK ALFALAH

Rased on the profit of Rs.354 million, the Board has proposed that a cash dividend at a rate of Rs, 2.00 per .share i.e, 20% of share capital be distributed among the shareholders.


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