Internship Report On Bank Alfalah Garden Town Lahore

Internship report on Bank Alflah Limited
COMSATS Institute Information Technology LAHORE
INTERNSHIP REPORT ON
BANK ALFALAH LIMITED NEW GARDEN TOWN LAHORE. SUBMITTED TO: MADAM IFFAT KHALID LECTURER. SUBMITTED BY: NAUMAN AHMAD CIIT/FA09-MBA-114/LHR SUBMISSION DATE: 06-10-2010.
DEPARTMENT OF MANAGEMENT SCIENCE COMSATS Institute of Information Technology, Lahore
COMSATS Institute of Information Technology, Lahore Department of Management Sciences
Preface:
Banking sector owes a pivotal importance in the economy of any country though its vibrant functions. This is the deep-seated motivator that geared up me to join any bank for internship. Moreover, the practice and familiarity learned during this tenure would also attest very helpful and alleviating in the awaiting proficient life. Making analysis of financial statements is an important part of our MBA program. It is a comprehensive, practical and extremely accessible presentation bout Bank Alflah Limited. I have tried my best to present this report with full description. Every effort is made to expose all the relevant concepts in this report. There is a balance of clarity. My objective in making analysis this repot is to provide a fundamental knowledge about the company. I hope, it serves a stock of knowledge about the Bank Alflah Limited. It is the requirement of the MBA course that al the student s of MBA have to spend six or eight weeks in any organization to get practical exposure and get familiarized wit the ways to live in the organizational environment which is dramatically different from the educational enjoinment. That period is called Internship Period If spends properly and sincerely, enables the students to be more confident, more knowledgeable, more responsible and more committed to its work in the practical field. I have also assigned to do internship of six weeks period in Bank Alflah Limited it has enabled me to understand the practical scenario and sharpen our decision making power and utilizing the resources in an effective manner. So that our resources could generate maximum profit. In preparation of this report. I have putted all my best efforts and tried my level best to give maximum knowledge. Despite of my all coherent efforts. I do believe that there will be a room for improvements in the efforts of learner like me.
MY LOVING PARENTS, RESPECTED TEACHERS, & DEAR FRIENDS
ACKNOWLEDGEMENTS
All praise & thanks go to Almighty ALLAH, the creator who is the entire source of knowledge & wisdom endowed to mankind. Offer my thanks from the depth of my soul to the last messenger Hazrat Muhammad (PBUH) , who is forever a torch of guidance and knowledge of entire humanity. I have also completed a report based on familiarity with my past studies in order to get a bit familiar with practical experiences in the organization. By the grace of ALLAH Almighty I have accomplished this report. I am very thank to the Mr. Raheel Yaqub (Branch Manger) and his team especially to Mr. Ahsan officer who provided me every kind of help during internship and in preparing this report. I am very grateful to my entire well wisher for this support, love & sincerity. May ALLAH give them reward in kind of His bless and love!
Table of content
Executive Summary
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Introduction
Industry History and Background History of Organization Information about organization
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10 12 13
Products and Services Organizational structure & Department Internship Experience

Internship Experience Working Experience Duties & Responsibilities Accomplishment Problems during Internship
14 18 44
44 45 46 46 47
Internal & External analysis

SWOT Analysis Marketing Strategy Competitive Strategy Financial Analysis
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48 51 53 54
Conclusion and Recommendation Appendix References
57 59 60
Executive Summary
Pakistan after getting independence, did not inherent a strong banking industry and since then a number of events in the industry, like the nationalization of banks in the 1970. However today the banking industry of Pakistan has been growing over the past few years, mainly because of consistent policies implemented by the government of Pakistan. Also the state bank of Pakistan monetary policy has been very friendly toward banking sector. There are number of different banks established in Pakistan, including local incorporated commercial banks, foreign incorporated commercial banks, development financial institutions, investment banks, discount & guarantee houses, housing finance companies, venture capital companies, micro finance banks and Islamic banks. Bank Alflah Ltd was incorporated in 1997 and was later privatized by the government of Pakistan. The Abu Dhabi Group bought the majority shares of the bank and so got the right to control the bank, s operations. Since the privatization of the bank , Bank Alflah has implemented different policies to make it one of the best bank in Pakistan. Bank Alflah Limited also introducing new products and services and increase its operations by opening new branches in Pakistan. Today Bank Alflah Limited is operating in more then 95 cities of Pakistan and operating its foreign branches in Bangladesh, Afghanistan, and Bahrain. The total employees of Bank Alflah in 2009 were 7,642, which increase of 15% from the past year was. The increase in the number of employees joining Bank Alflah shows that people feel confident in Bank Alflah as a prospect employer. Behavior of human employees with customer also helps to increase the number of customer every day. The financial statistic of Bank Alflah are also as Impressive as their resources. The profit after taxation for Bank Alflah in 2008 amounted to Rs 1,301,301 (000) and its total assets for 2008 amounted to Rs 348,990,764 (000). This figure shows improvement as compared to previous years but in 2009 the earning after tax reduces to Rs 897,035(000). The reduction in earning is due to the financial crises in all over the economy. Te stock prices and earning per share of the bank have also increased over the years but it is before the year 2009.The earning per share in 2008 is 1.41 that reduce in 2009 earning per share is 0.71. Bank Alflah Limited promotes its products and services through print and electronic media. It also promotes itself by sponsoring different events. COMSATS Institute of Information Technology, Lahore Department of Management Sciences 6
For Bank Alfalah Limited, it has to compete in an industry that has grown in 2009 in overall assets The major 5 competitors of Bank Alflah, pose close competition and are mainly large nationally incorporated banks and a few international banks, that all wants to become the leading bank of Pakistan, by creating some edge in the industry. To create this edge, technology has played an important role in the industry as banks are continuously trying to improve its products and services by introducing innovative products.
Industry Introduction and Background
It has not so far been decided as to how the word Bank originated. Some authors opine that this word is derived from the words Bancus or Banque, which mean a bench. Other authorities hold the opinion that the word Bank is derived from the German word Back, which means joint stock fund. It is therefore, not possible to decide as to which of the opinion is correct, for no record is available to ascertain the validity of any of the opinions. Banking in fact is primitive as human society, for ever since man came to realize the importance of money as a medium of exchange; the necessity of a controlling or regulating agency or institution was naturally felt. Perhaps it was the Babylonians who developed banking system as early as 2000 BC. IT is evident that the temples of Babylon were used as Banks because of the prevalent respect and confidence in the clergy. At the time of independence, there were 631 offices of scheduled banks in Pakistan, of which 487 were located in West Pakistan alone. As a new country without resources it was very difficult for Pakistan to run its own banking system immediately. Therefore, the expert committee recommended that the Reserve Bank of India should continue to function in Pakistan until 30th September 1948, so that problems of time and demand liability, coinage currencies, exchange etc. are settled between India and Pakistan. The non-Muslims started transferring their funds and accounts to India. By the end of June 1948 the number of officers of Scheduled banks in Pakistan declined from 631 to 225. There were 19 foreign banks with the status of small branch offices that were engaged solely in export of crop from Pakistan, while there were only two Pakistani institutions, Habib Bank of Pakistan and the Australian Bank. The customers of the bank are not satisfied with the uncertain condition of banking. Similarly the Reserve Bank of India was not in the favor of Govt. of Pakistan. The Govt. of Pakistan decided to establish a full-fledge central bank. Consequently the Governor-general of Pakistan Quaid-e-Azam inaugurated the State Bank of Pakistan on July 1, 1948. Thus a landmark was made in the history of banking when the state bank of Pakistan assumed full control of banking and currency in Pakistan. The banking structure in Pakistan comprises of the following types, State Bank of Pakistan
Commercial Bank of Pakistan Saving banks. Cooperative banks Specialized credit institutions. Commercial banks have been the most effective mobilizes of savings and have been providing short-term requirements of working capitals to trade, commerce and industry. Up to December 31, 1973, there were 14 Pakistan commercial banks that functioned all over the country and in some foreign countries through a network of branches. All these commercial banks were nationalized in January 1, 1974, and were recognized and merged into the following five banks: National Bank of Pakistan MCB Bank Limited Habib Bank Limited United Bank Limited Allied Bank Limited The state bank of Pakistan is the Central bank of the country and was established on July 1, 1948. The separation of East Pakistan and its repercussion in the form of economic depression has caused a lot of difficulties to the banking system in Pakistan. The network of bank branches now covers a very large segment of national economy. The numbers of branches have increased appreciably and there is now on branch of bank for every 3000 heads of population approximately. There is done reasonable growth in deposits from the establishment of Pakistan. Besides this growth, specialized credit and financial institutions have also developed over the years. The Government of Pakistan in the late 90s introducing the need for the privatization of state owned banks and companies.
Historical Overview of BAL

Bank Alfalah has gone through different phases over the years. Its name and been changed in the following sequence.
Bank of Credit and Commerce International (BCCI)1972 Habib Credit and Exchange Bank1992 Bank Alfalah1997 Bank Alfalah Limited was incorporated on June 21st, 1997 as a public limited company under the Companies Ordinance 1984. Its banking is operations in commenced from November 1st, 1997.The bank engaged
commercial banking and related services as defined in the Banking companies ordinance, 1962. The Bank is currently operating through above 301 branches in 95 cities, with the registered office at B.A. Building, I.I. Chundrigar Road, Karachi. Since its inception, as the new identity of Habib Credit Exchange Bank (HCEB) after the privatization in 1997, the management of the bank has implemented strategies and policies to carve a distinct position for the bank in the market place. The Bank has invested in revolutionary technology to have an extensive range of products and services. This facilitates commitment to a culture of innovation and seeks out synergies with client and service providers to ensure uninterrupted services to it customers. This facilitates our commitment culture of innovation and seeks out synergies with clients and service providers to ensure uninterrupted services to its customers. We perceive the requirements of our customers and match them with quality products and service solutions. During the past five years, we have emerged as one of the foremost financial institution in the region endeavoring to meet the needs of tomorrow and today. The bank is listed on the Karachi and Lahore Stock Exchange with a ticker name of BAFL.
Credit Rating
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PACRA, a premier rating agency of the country, has rated the bank AA (double A), Entity Rating for long term and A1+ (A one plus) for the short term. These ratings denote a very low expectation of credit risk, strong capacity for timely payment of financial commitments in the long term and by highest capacity for timely repayment in the short term, respectively. The ratings of first and second and third unsecured listed and subordinated TFC issues of PKR 650 million, PKR 1,250 million and Rs.1,325 million have been maintained at AA- (Double A minus).
Information about the organization

Vision
COMSATS Institute of Information Technology, Lahore Department of Management Sciences 11
The vision o Bank Alflah is to be the premier organization operating locally & internationality that provides the complete range of financial services to all segments under one roof.
Mission
The mission of the Bank Alflah is to develop & deliver the most innovative products, manage customer experience, deliver quality services that contributes to brand strength, establishes a competitive advantage and enhances profitability, thus providing value to the stakeholders of the bank.
Values
The values of Bank Alflah Limited are philosophy of honesty, transparency in customer dealings, product innovation, excellence in customer service and our commitment to being a responsible corporate citizen.
Objectives
To please their customers by fulfilling the financial needs as best as possible, they believe in placing the client at the center of business and all of the products and service. For this the management has adopted the strategy of, caring for you ..Our customer" The objective of Bank Alflah is as follows: To get maximum share of the market To price the products optimally To expand more the network of branches in several other cities of Pakistan as well as in the countries of the world. To reinforce a corporate culture that fosters learning, creativity and flexibility.
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To invest further in banking innovations which include Islamic banking, SME Home loans and other areas of product development to provide higher levels of services and values to the clients. To create maximum economic values for share holders through a constant relationship focuses on financial services.
Products and services by BAL
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The privatization process for the expansion and diversification of economic activities in the country also demanded the introduction of new banking products. BAL took initiative in this direction and for the first time BAL devised and marketed new products and services with brand names to enter the varying requirements of its diversified customer. Alflah Islamic Banking offers the largest products range available with any Islamic banking institution in Pakistan including, Ijarah, Mudarbah, Istisna and Musharika. Management All these and products by have the been centre approved of by the Banks cleared Islamic Economics.
BAL currently has following products and services in the banking sector that are making BAL more prominent in the banking sector
Current Account
This account offers unlimited deposit and withdrawal facility to facilitate business transactions. There is absolutely no limit on number of transactions, deposits, and withdrawal.
Alfalah car Ijarah

The customer is able to finance their vehicle the smart way with Alfalah. Bases on the Shariah principles of Ijarah, Alfalah Islamic Banking will purchase the vehicle of the customer choice and later rent to the client at a pre agreed rental amount. Ownership of the vehicle is transferred to the client upon satisfactory payment of all the rentals by the time the customers security deposits period expires. Insurance and registration charges are Bourne by the Bank and the customer is not supposed to pay any rental unless the vehicle is delivered to him.
Mudarbah Financing
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Under this product the client and the Bank enter into a sale contract. The required goods are first purchased by the bank and then sold to the customer for a specific period and at an agreed Mudarbah price.
Other Product and Services

With the mission to provide all-encompassing banking services to the customers, Bank Al-Falah has a uniquely defined menu of financial products. Currently it is one of the most comprehensive portfolios of personalized financial solutions that are custom-tailored to serve the requirements not only of conventional customers but also fulfill the needs of the corporate sector: Money Gram Agriculture loans Swift Car Financing Rupee Travelers Cheque Online Banking Credit Cards ATMs Home Financing Corporate and Structured Financing
Money Gram
Money Gram provides the faster transfer of money from one country to other. It is the easy and safe way to send money to the relatives. The charges is deducted from the person who is sends the money.
Agriculture loans
The bank also offered agriculture loan this loan is used various purposes for the development of agriculture sector. It provide loan for cultivation of land and equipment for the development of this sector
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SWIFT
The bank has also started replacing conventional telex messaging system for fund transfer, L/C opening etc., by connecting on-line with the world wide interbank Financial Telecommunication Network (SWIFT).
Car Financing
Car Financing is one of the major renowned products of Bank Al-Falah and can be utilized in terms of Financing of Used Vehicles, Loan against Car, Balance Transfer Facility, Refinancing Facility (only for Al-Falah Customers) and it is characterized in terms of: Lowest Mark up Lower Insurance Quick Processing Lower Down Payment
Rupee Travelers Cheque

Rupees Travelers Cheque are as good as cash and are accepted at the major shops, travel agents, hotels business establishments and all over the country and abroad. This service is being offered to facilitate instant fund availability to travelers and business people who used to carry a large sum of money with them.
Online Banking
To provide enhanced and value added products to customer bank is constantly striving for additional facilities. Bank provide fully automated on-line telephone banking facilities to its customers enabling them to carry out banking transactions like balance inquiries, statement requests, product information and exchange rate.
Credit Cards
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Bank Al-Falah Visa Card is everywhere and globally accepted and welcomed at locations displaying the VISA logo. It is accepted at nearly 30 million merchants and 870,000 ATMs in more than 150 countries around the globe and over 10,000 establishments in Pakistan. Al-Falah VISA pays for shopping, travel, entertainment, meals and much more. There are 3 major types of Al-Falah credit cards.
Automated Teller Machine (ATMs)

The bank offers 24 hours self service banking facilities to it customers on country wide basis through deployment of Automated Teller Machine. This system allows the banking facilities such as cash with drawls, cash deposits, and funds transfer, balance inquiries, account statements. All ATMs are linked through a state-of-the-art Satellite Based Communication System which offers 24 hours real time service.
Home Financing
Major features of Bank Alfalah Home Financing are Lowest Mark-up, Quick Processing, Multiple Repayment Options and Free Valuation. It has been bifurcated in terms of Home Buyer, Home Construct, Home Improver, and Home Balance Transfer Facility. Financing Limit Tenure : : up to Rs. 10,000,000/up to 20Years 30% Borrower / 70% Bank
Equity Participation :
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Organizational Structure & Departments
Chief Executive Officer
Co-Chairman Central Management Committee
Group Heads
Regional Managers
Area Managers
Hub Managers
Branch Managers
Its a general hierarchy of bank which is showing about the main authorities of Bank Alfalah Limited who are controlling its management in Pakistan. Banks management is divided into different groups, regions and areas. groups. Co-chairman is providing supervision to group heads that are responsible for controlling the affairs of different After group heads in the hierarchy, there are regional, hub and area managers who are managing and guiding the working of different branches of bank.
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Board of Directors
The board of directors has the authority in guiding Bank affairs and in making general policies. Some directors are the personnel of the Bank Alfalah Limited follows.
H.E. Sheikh Hamdan Bin Mubarak Al Nahayan Mr. Abdullah Nasser Hawalileel AlMansoori Mr. Abdull Khalil Al Mutawa Mr.Khalid Mana Saeed Al Otaiba Mr. Ikram Ul-Majeed Sehgal Mr. Nadeem Iqbal Sheikh Mr. Sirajuddin Aziz
Chairman Director Director Director Director Director Director & CEO
Board Audit committee

The board audit committee is guiding in the affairs and in checking the policies made by board of Directors. Some auditors are the personnel of Bank Alflah Limited. Mr. Abdullah Nasser Hawalileel Mansoori Mr. Khalid Mana Saeed Al ofaiba Mr.Nadeem Iqbal Sheikh Mr. Yasar Rashid Al- Director
Director Director Sectary

A.I Ferguson & co Chartered accountant
Auditor
Chief Operating Officer Company Sectary
Mr. Shakeel Sadiq
Mr. Hamid Ashraf
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Registered Office
B.A.Building I.I. Chandigar Road Karachi.
Department of BAL:
Account opening Department Accounts Department Trade Finance Department
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Agriculture Department Clearing Department Cash Department Credit Administration Department Human Resource Department
Accounts opening Department

Account opening department is one of the departments that come under the general banking facilities provided by Bank Alflah Limited. This department maintains all formalities of the accounts and account holders like it account name, account holders name, code number and full address. Different debit and credit voucher come from different department like clearing, Remittances, Cash, Foreign exchange and advances posted against some of the major deposit accounts opened Accounts opening department is one of the departments that come under the retail/general banking facilities provided by Bank Alfalah. Some of the major deposit accounts opened by Bank Alfalah are as follows:
Major Deposit Account Products

Current Account
Current Accounts are non interest bearing accounts that have a minimum account opening requirement of Rs. 10,000. No zakat is deducted on the accounts balance. Furthermore all current account holders receive a Hilal debit card and there are no restriction on the number of withdraws or deposits made to and from the account.
Profit& Loss Saving Account

Profit& Loss saving accounts can be opened with a minimum balance requirement of Rs. 5,000 and profit is credited on a half yearly basis. There are no restrictions on the number of deposits and withdrawal made to and from the account and all account holders receive a Hilal debit card as well. Profit and loss saving account
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cannot be opened by a business corporation, however can be jointly opened by individuals. Profits are paid at 2% on all account balances.
Basic Banking Account (BBA)

Basic Banking Account was introduced by banks on an order by the State Bank of Pakistan and is current in nature. There is no minimum balance requirement for BBA, however initial deposit must be Rs 1000. Maximum two withdrawals and deposits are allowed by Cheque, while there is no restriction on ATM withdrawals.
Royal Profit Account

Royal profit accounts are opened with a minimum balance requirement of Rs 50,000. The basic aim of this account is that the higher the balance the higher the return, as profit is credited on a monthly basis. The profit paid to account holders is as follows: Profits paid on Royal Profit Account Amount From Rs.50,000 to 999,999 From Rs.1,000,000 to 4,999,999 Rs.5,000,000 and above Profit pa. 2.50% 3.50% Negotiable
Kifayat Account
Kifayat account is another saving account product that can be opened with a minimum balance requirement of Rs 10,000, with a maximum limit of Rs 1 million. Profit is calculated on a monthly basis, while it is credited on quarterly basis. Bank Alfalah pays 7% pa interest on Kifayat Account.
Mahana Amdan Account

Mahana Amdan account is Term Deposit Receipt (TDR) for three years that can be opened with a minimum balance requirement of Rs 100,000, with a maximum limit of Rs 15 million. Profits are paid at 10% pa, credited on a monthly basis. Other features
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of this account include free personal accident insurance and automatic renewal for another 3 years, after the expiry of original period.
Alfalah Education
Alfalah education is a one year TDR that can be purchased by people having school going childrens. A person can purchase a unit for Rs 100.000, with a maximum of 3 years. This TDR pays 7%, paid at maturity and gives an additional advantage of giving monthly school fee of the childrens if the breadwinner of the family dies.
Requirement of Account opening

Standard Requirements
Photocopy of computerized N.I.C Photocopy of passport, if computerized N.I.C not available Introduction( Existing Account Holder of Bank Alflah) Account opening form duly signed and completed by all concerned parties Vermicular form if signature are not in English Any photo ID if computerized N.I.C is not carrying a photo Two passport size photographs with thumb impression for illiterate The requirements of these accounts are as follows 1) Individual account 2) Company account 3) Partnership account 4) Clubs / Association accounts 5) Trusts
1) Individual Accounts
There are two types of individual accounts 1) Salaried individual 2) Self Employed
Salaried Individuals
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Employment certificate by the employer acknowledging the individual as employee along with his salary, designation and period of employment on the letter head and signed under rubber stamp of company Attested copy of service card, or any other acceptable evidence of service Self Employed Copy of N.T.N certificate of the individual A letterhead along with a rubber stamp for proof of business or any other acceptable evidence for verifiable source For sole proprietorship, letter from the proprietor confirming proprietorship
2) Company Accounts
In this case the following documents are required Copies of NIC of Directors of the company Certificate of incorporation of business Certificate of commencement of business(in case of Public Limited Company) Article and Memorandum of Association Latest copy of Form-29 List of Directors Copy of Board Resolution
3) Partnership
Attested copy of partnership deed duly certified by notary public and signed by all parties of the firm Attested copy of computerized N.I.C of all partners Rubber stamp of all partners Partnership mandate on the firms letterhead to operate the account Attested copy of registration Certificate Attested copy of N.T.N certificate
4) Clubs / Associations / Societies

Certified copies of rules / By laws Certified copies of certificate of Registration
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Resolution of the Governing body / Executive committee for opening of account authorized the person to operate the account and attested copy of computerized N.I.C of that authorized persons. An undertaking by all the authorized person on the behalf of the institution mentioning that any change will be informed to the bank immediately
5) Trusts
Attested copy of certificate of registration Attested copies of Computerized N.I.C of all trustees Certified copy of instrument of trust Board Resolution resolving to open and operate the account Certified copy of By- laws.
Opening the account

The procedure of opening the account is as follows.
Account Opening Form:

First of all, the customer fills the account opening form (AOF). Filling of account opening form includes type of account, currency of account, name, address, signature of customer and signature of introducer and attach a photocopy of national identity card. He also signs an undertaking that he will follow the rules and regulations of the bank.
1) Introduction: The signature and account number of the account holder introducing the account to the new person is obtained on the account opening form. 2) Specimen Signature Card: The signature of the client is obtained on a specimen signature card (S.S Card). The card is obtained with two signatures from the customer. Every time a Cheque is
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received for payment from the client, the signature on the Cheque is verified by comparing it with S.S Card. 3) Requisition slip A requisition slip for Cheque book is also given to the customer. The customer fills it and gives it to the account opener. 4) Know Your Customer Form Every account holder fills this form. information about the customer. 5) Account Number: When all the formalities are completed, an account number is allotted to the customer and all the information is entered into the computer and register. Then that account number is written on S.S Card and account opening form. 6) Depositing of amount in account: The client deposit cash in the account. For this purpose cash pay-in-slip is used. The minimum initial deposit is fixed for each account according to the nature of account. For example for PLS / saving account the minimum requirement is Rs.5,000 only. 7) Issuance of a Cheque Book: After opening an account with the bank, the account holder makes a request in the name of the bank for the issuance of a Cheque book. Such a request is known as Requisition Slip. BAL issues Cheque books of at least 25 leaves. When he used this book completely then he can apply for another. This process takes a day because the Cheque books comes from Karachi head office. The basic purpose of this form is to get some
8) Entry of Cheque Book: Before issuance of a Cheque book the bank stamp every leaf with the account number of the customer, enter it in the Cheque book register and computer and issues the Cheque book to the customer after his signature on the register. 9) Filing of AOF:
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Account opening forms are basic documents of the contract therefore these are filed in numerical order and kept for reference. 10) Letter of Thanks A letter of thanks is prepared. One letter is for the customer and one for the introducer. One copy is send to the customer and the other copy is kept in the record along with other documents. Amendments in Accounts: BAL provides the facility of amendments in accounts, whenever required by the customers. Account holder gives an application along with necessary documents to the bank. Then the amendments are made in the account of the depositor. These amendments can be made by filling certain application forms. These forms are as follows: Change of Address Form To change the address of the account holder Change of signature form To change the signatures of the customer. Liability / Inquiry Form This form is used if some person has acquired loan from the bank and he wants to close his current account, then he fills this form and this form is send to credit department. When the credit department declares him free from any debt obligations then his account is closed. Vernacular Form This form is used when some person wants to sign in any language other than English.
Mandate to the third party to operate the account This form is used to enable any third party operate the account. Closing of accounts The procedure of closing of account is as follows. First of all the customer gives the request to close the account.
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His signatures are verified. He withdraws all his money from his account but in case of current account Rs. 150 is deducted as a charge of closing the account. A liability form is send to the credit department if he has taken a loan from the bank. If he is cleared from all the liabilities then further proceeds are taken. Permission is granted by the authorized person (the manager). Account is closed in the computer system. Hic specimen signature card is attached with the account opening form and marked closed.
Accounts Department
Every transaction which takes place recorded in the computer so all transactions in different departments are forwarded to account department. Since all vouchers from different departments are forwarded to current department so this department tallies all such transactions with current department after maintaining the ledger of each department. Following are different functions performed by this department: Budgeting Reports Funds management Activity checking Reconciliation Foreign exchange, old Account Contracts Maintenance of fixed assets and calculation of their depreciation Test Keys
Budgeting
The main task performed by the accounting department is the preparation of the budget. Budget is based on forecasting and their own inspiration for future, whereas forecasting is based on past performance. This is one important task on the basis of which funds are allocated to various branches and also the targets are determined.
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The targets determined Deposits, Advances, and revenues. Every branch prepares its own budget for the fiscal year and then budgets of all the branches across the country are consolidated at the head office in Karachi. In this way a consolidated budget is also prepared. Fiscal year of the bank starts from January to December. Accounting department starts preparing the budget from October for the next year. Before the preparation of budget the bank reviews its sources and funds it has and the uses of those sources. The main sources of the bank are the follows: Deposits, Capital, Borrowing from other banks, etc The main uses of a bank are the follows: Advances, Investment in securities, placement in interbank markets, Other things which are undertaken into account while formulating the budget are: Income, Expenses, etc. The revenue target is fixed keeping in view the past performance. The cost of generating these revenues is also estimated. Then budget of each branch is submitted to head office for modifications and for approval. After the modification and approval the budget for a specific branch is being set by the head office. Monthly budget meeting is held to analyze the monthly performance by all the branch mangers with head office. The actual performance is compared with the estimated and variance is calculated.
Reports
In Bank Alfalah many types of reports are being prepared. These are daily, weekly, monthly, semiannual and annual reports. These are generated from the main frame and are used for proper analysis. The following reports are generated daily from the main frame which are being used by the accounts department for the preparation of their own reports:
Statement of affairs:
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It includes information about assets, liabilities and their balance. Daily position of deposit and advances are also calculated in this report.
Subsidiary Statement:
This is a detailed report which includes all the information regarding the statement of affairs.
Income and Expenditure report:

It includes all the details regarding to both the heads of income and expenditure in detail.
Royal Profit Report:

It includes the details of the deposit of royal profit account.
Currency wise report (ccy):

It provides the details of all the deposits currency wise.
New Fcy report:

This report includes the information regarding only the new foreign currency accounts. The old foreign currency accounts are those, which were at the time of nuclear explosions in Pakistan and were being freezed by the Nawaz Sharif government.
Sub 66 Report:
It contains income, expenditure, general ledger accounts and their balances. Now following are the reports, which are being prepared with the help of the above reports: Daily position of advances and deposits: This report is being sent to the head office daily in which the detail is given regarding the new accounts of deposits and advances.
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Statement of affairs: This report includes assets and liabilities. Two copies of this report are made daily, one is sent to the area office and one to the head office for analysis but the format is different for both of them. Statement of Affairs also prepared at the weekend for the whole week as well as at the end of a month. Monthly Budget Review Report: This report is made to review the performance of the month by calculating the variance. And then if the variance is in negative, positive actions are taken and reasons will also be mentioned in the report.
Funds Management
Every bank in Pakistan has an account with State bank of Pakistan and has to maintain 5% of the total deposit in the account with the State bank. Funds management is done only through the main branch. If the bank has so many branches in a single city then only the main branch is responsible for the funds management. Daily a report was prepared and reported to State bank. The important factors that affect the report are as follows: Total Deposit (of all branches in a single city) Opening Balance (closing balance of the previous day) Inward Clearing Outward clearing Cheque issued by State Bank Cheque Deposited After all the calculations, a result is obtained which signifies the cash in hand of the respective day. If the cash in hand is sufficient to fulfill the needs of the State Bank, well and good other wise if the cash is not sufficient then the other options are considered.
In case of shortage of funds, the main branch has the following options, which it can adopt.
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1. TT from Head Office: 2. Cover from Head Office 3. Funds from Other banks
TT from Head Office:

One solution of the problem is to contact and inform head office about our respective position and demand for funds. However the most frequent reason, why this practice is not followed is that State bank has allowed only one TT free of cost for all the branches in Pakistan. Therefore we first have to confirm head office that whether or not it is sending TT to another branch of bank Alfalah. If the head office sends us the TT then it cannot send any other TT to another branch of Bank Alfalah without charges. The charges are also not negligible for example the charges of TT for an amount of one hundred million is above 60,000. For this specific reason the TT is not encouraged.
Cover from Head Office:

The most frequent option used is to inform Head office about the shortage and ask for cover. The head office then maintains extra amount in its account with State bank. The extra amount will be the shortage of main branch reported. The main branch will then pay interest to the head office on a rate of 11.5% per day. The head office is paid on monthly basis.
Funds from Other banks:

In case of funds shortage another bank is contacted with whom the bank has settlement for instance Emirates bank. If this option is taken the head office is informed and the head office then pays to the Karachi branch of the respective bank from which funds are taken.
Activity Checking
Activity checking is the process of the entire banking, which has taken place. A report known as activity report is prepared on daily basis. The report specifies every vouchering, which has taken place. Sorting is made according to the mainframe-
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generated report. All the vouchers are checked that whether they are properly posted or is there any transaction left to be posted. This checking makes the working of the bank more efficient and avoids any loopholes.
Reconciliation
BAL prepares its reconciliation statements with Head Office State Bank of Pakistan Head Office Reconciliation: All the debit and credit entries of the main office account are recorded in the statement. Then it is checked with physical vouchers and if there is any problem, they reconcile it. Head office extract are statements sent by branches to the head office. They check the outstanding entries, if there is any entry posted by branch but not by head office they will send their query to the branch and branch will respond to that query by sending the required document. Head office reconciliation is carried out in the head office; accounts department handles inquiries. State Bank of Pakistan: SBP maintains the account of every scheduled bank including bank Alfalah. The statement of account reconciliation shows the entries that are passed during the month in both banks. Bank Alfalah compares the statement with the ledger card of State bank of Pakistan in which all entries are recorded done with SBP. If any amount debited by SBP and Bank Alfalah does not credit that amount, it is added in the balance of the reconcile statement provided by the SBP to BAL.
Maintenance of Fixed Assets and Calculation of their Depreciation

Account department maintains the record of fixed assets. The accounts department calculates the depreciation the assets by using straight line method. Depreciation is the allocation of cost of the asset over the useful life. Depreciation is accrued on monthly basis and charged at year-end. Department prepares Asset purchase report and Asset sale report after every six months. Depreciation is charged at the following rates:
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Building Furniture Carpets & curtains Equipment
2.5% 10% 25% 20%
Test Keys
Test is a coding system used to authenticate money transactions between banks. Whenever money is transferred through TT, the concerned officer requests the accounting department to apply test to the message. The test is applied to the message; three copies of this message are prepared. One goes to the test key department, one to the Telex/fax operator and the third one goes to the department record. When the TT is received at the other end, this test is verified. The transaction will be carried out if and only if the test matches with their own test. Banks have arrangement with other banks with which they have quite a large volume of business and it is beneficial to have a direct arrangement with these banks. This test arrangement can be with banks within country and outside country. For example BAL has test arrangements with ABN Amro N.Y, American express N.Y, Citibank N.Y, etc. When this arrangement is carried out a test key is provided to the concerned bank, which contains codes. This test key is different for every bank. This test key is also different for inward and outward TT. In local transfer double coding is used and in foreign transfer single coding is used. Test key tables are to arrive at the code. Separate key table are used for different banks. Twelve branches of BAL have arrangement for local transfer and three branches are authorized for foreign transfer. Four things should be carefully checked because code is based on four things: Branch name Currency Date Amount
Test can be applied on nil amounts. The purpose is to just secure the transaction. Another important significance of test is agency arrangement, which bank built with
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other banks. Inquiries originated by any bank regarding the delay of any message are also solved by the bank. They will check the message and will respond to the query.
Trade Finance Department

Trade Finance involves the import and export activities. This department provides protection to the rights of importer and exporter. The function of this department is to serve as a bridge between the importer and exporter in order to settle a transaction. When trade is taking place between the representatives of two countries (exporter and importer), the exporter involves his bank (the Advising Bank) in the transaction, as he wants to feel secure regarding timely payment of his goods in the required currency. Trade Finance Department handles two activities: Import Export
IMPORT
Import Department of BAL deals with the import of merchandise. Import can be defined as: The bringing of commodities into Pakistan from outside by sea, land or air. Requirement for the Importer These requirement / document must be fulfilled from importer before doing the import: NTN (National Tax Number) certificate Sale Registration Certificate Membership from Chamber Of Commerce Questionnaire duly filled in NIC (attested copy)
Exports
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Exports are major sources of earning foreign exchange and play an important role in the economic development of the country. It helps to utilize excess resources of the country. Exports mean selling goods to another country. Exports of all eligible commodities through authorized banking channels are admissible under exchange control regulation.
Requirement for the Exporter

These requirement / document must be fulfilled from exporter before doing the export: Account holder of Bank Alfalah Limited Must be a Pakistani Membership from Chamber Of Commerce NTN (National Tax Number) certificate The person must have the Sales Tax Registration Certificate. Form E ( export form) dully filled in Sale Registration Certificate
Methods of Doing International Trade

Letter of Credit Contract
LETTER OF CREDIT (L / C):

LETTER Of Credit (L / C) ADVISING
Letter of Credit (LC) is a written and conditional undertaking by a bank on the behalf of applicant to the beneficiary to pay a certain amount at a certain date; if the stipulated terms and conditions are complied with. The process of International Trade starts with asking of importer to its bank for L/C. Then importers bank will be called as issuing bank. The issuing bank sends the L/C
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to Bank Alfalah Limited. A bank that receives the L/C is called an advising bank because after receiving the L/C, it performs the L/C advising function. A cover letter is prepared and is sent to the beneficiary of the L/C, advising him his L/C has reached Bank Alfalah Limited and he should collect it immediately. A copy of the L/C is sent along with the letter.
ISSUANCE OF E-FORMS
Government has provided facility to exporter in taking E-Form from any bank and is a part of the exchange control mechanism of the State Bank of Pakistan. When an exporter receives an L/C, his next job is to get an E-form from an authorized Bank. On the E-form sent by the commercial bank following things are mentioned Description of the commodity Quantity of the commodity exported Amount realized Foreign bank charges Country of the importer
CERTIFICATION OF THE E-FORM

After filling in the complete information about the goods to be exported, the exporter brings the E-form to the bank for verification. Bank issues E-form certification to exporter and he submits it to the custom officer along with E-form certification to certify E-form.
Documents
After getting the E-form verified the exporter starts preparing his shipment. Banks only deal in documents. In order to receive payment from his goods the exporter has to send certain documents to the issuing bank via his negotiating bank. These documents are.
Bill of exchange
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A bill of exchange is an instrument in writing containing an unconditional order, signed by the maker, directing a certain person to pay a certain sum of money only to, or to the order of, a certain person or the bearer of the instrument. It is drawn by the exporter (drawer) and orders the importer or the importers bank (Drawee) to pay to the order of Bank Alfalah Limited (payee) a specific amount. If the draft is drawn at sight, the importer must make the payment on receipt of the documents. If it is time draft, the payment must be made within the specified time limit.
Commercial Invoice
The exporter prepares it. Its amount must tally with that of the L/C. It shows the name and address of the importer as well as the invoice number. This number is very significant as it is used in all the correspondence between the exporter and his bank. It also contains all the specifications of the commodity being exported. The standard definition of commercial invoice is that it is an itemized list of goods shipped to a buyer, stating quantities, prices, and shipping charges.
Bill Of Lading
The shipping company or the airline that has been assigned the task of transporting the goods issues these. The shipper must ensure that the goods are shipped and handed over the right person when documents are presented to him. The standard definition of a bill of lading is contract between the seller of the goods and the carrier. The following are types of bill of lading: OCEAN Bill Of Lading Air Waybill Inland Bill Of Lading
Packing List / Weight List

The exporter prepares these lists in order to show that the consignment is according to the order of the buyer. It gives a detailed account of the manner in which the goods have been packed and the number of cartons they have been packed in.
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Certificate of Origin This document certifies the origin of the exported goods. In the case of exports from Pakistan, the certificate of origin shows that the country of origin of the goods is Pakistan. The certificate of origin is a document in which the exporter certifies to the place of origin of the goods to be exported.
E-Form
It is a necessity for all exports out of Pakistan. All commercial banks always issue the E-form in quadruplicate. Original: is sent to the custom officer Duplicate: Bank receive the duplicate Triplicate: is sent to the State Bank Of Pakistan
Export Visa
This document is required when the destination of consignment is Canada, America, and U.K. Different countries fix quota for different commodities and restrict imports of those goods with in a specific limit. There fore visa is required which is in fact a permission to export goods to the specified countries.
Payment by importer
Exporters bank sends all the documents negotiated in LC to importers bank. Once the shipment arrives in importing country, documents are kept with the bank until the importer makes full payment to bank.
COLLECTION / NEGOTIATION:
When the exporter comes to the bank with the documents, he has two options. Send them for collection Get Them negotiated
Collection
The bank sends the documents on behalf of the exporter to the importers bank for payment. The payment is made in Pak Rupees and the exchange rate is the Buying rate of the day normally called the T.T. Clean Buying Rate. When the reimbursing bank is to pay Bank Alfalah Limited it credits its nostro account maintained with it (the reimbursing bank), and afterwards bank debits the exporters account with the local equivalent of the export proceeds calculated at the TT clean buying rate.
Negotiation
The bank purchases the documents from the exporter i.e. the exporter gets them discounted before their maturity. For example, the drafts are at 90 days from B/L date. In simple words, the payment for the exports would be received after three months. The exporter might not want to block his funds for such a long time. He can get his documents negotiated the day he presents them to the bank. The exchange rate he will get will however be lower than the TT clean buying rate because the bank is paying him an amount that it is going to receive after three months itself. Contracts are not negotiated however in any case. This is because they are unsafe documents and the bank does not take the risk.
Dispatch
The documents brought by the exporter are in the form of sets containing an original and a number of copies. The number of each document required by the importer is mentioned on the credit. Usually they are: Manually signed commercial invoice Bills of lading Packing list in quadruplicate Bill of exchange
Filing
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A separate file is maintained in each case and if the documents have been negotiated, it is titled FDBP that is the abbreviation of Foreign Documentary Bills Purchased. If the documents have been sent for collection, a file in the similar fashion is kept but it is labeled FDBC i.e. Foreign Documents Sent For Collection.
CONTRACT
The exporter might export the goods based on a CONTRACT with the importer. In such a case, there is no surety to the exporter that the importer will make the payment. The importer might reject the goods on receipt and deny and payment to the exporter. Therefore, the contract is an unsafe document. There are two types of contracts.
CAD (Cash against Documents):

The documents are sent to the issuing bank. The issuing bank informs the importer that his documents have arrived. The importer deposits the amount of the contract with the bank and takes possession of his documents have arrived. The issuing bank then makes the payment to the exporters bank.
DA (Documents Acceptance):
Drawee takes documents and possession from the issuing bank and signs a bill of exchange in return giving his acceptance for payment on a specific maturity date. Now, if he does not make the payment to the issuing bank no payment is made to the exporter and there is no liability on either bank.
Clearing Department
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Banks collect Cheque for their customers that are drawn on other banks. This function of clearing its customers Cheque by a bank is performed for settling payments through the clearing houses in the State Bank of Pakistan. In cities with no SBP coverage, the clearing is than supervised by National Bank of Pakistan. BAL also provides a facility of clearing. Types of Clearing are follows Inward Clearing Outward Clearing
Cash Department
Cash department of Bank Alfalah works under the operations department. This department is given the complete responsibility of cash, as result of transaction in touch local and foreign currencies. It is also responsible for the book keeping of these transactions and the safe custody of cash. Out of five counters of cash department one counter is fixing for senior citizens and females. All counters are dealing at the same time in deposits, withdraw and online transaction processes. This department performs the main function. Cash receipts Cash payments
Credit Administration department (CAD)

Credit means belief or trust. The quality of being credible or trustworthy. Another words we can define credit as trust in ones integrity in money matters and ones ability to meet payment when due. Credit marketing department deals with extending loans (credit facility) to customers before sanction advice. State Bank of Pakistan (SBP) has prescribed regulations which are called PRUDENTIAL REGULATIONS. Every bank has to follow these regulations. If any bank violates the regulations it should be liable for penalties. The Bank Alfalah limited credit is extended on the basis of these rules and regulations. These regulations tells the term and conditions under which you can extend loans to the borrower and to what extent. Credit Facilities At BAL there are two types of credit facilities Funded facilities Non funded facilities COMSATS Institute of Information Technology, Lahore Department of Management Sciences 42
Funded facilities
These are the facilities in which there is direct involvement of cash fund. Following are the funded facilities. Current finance CF Term finance TF Finance against foreign bills FAFB Finance against packing and credit FAPC Finance against imported merchandise FIM Finance against trust receipt FATR
Non Funded facilities

The facilities where there is no direct involvement of banks fund. There are two types of unfunded credit line facility, which are as follows: Letter of Credit (LC) Letter of Guarantee (LG)
Direct Induction of Fresh Candidates

Through direct induction of fresh candidates, Bank Alfalah is able to employ fresh postgraduate candidates for its organization and the process is as follows:
Benefits provided by Bank Alfalah

Some of the monetary and non monetary benefits that Bank Alfalah provides to its employees are as follows: Attractive Salary Package Employee Provident Fund Gratuity Fund Medical Insurance Bonuses Life Insurance Promotions Various types of Staff Loans Assistance in Pursuing Higher Education
Internship experience
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I did my internship at Bank Alflah, New garden town Lahore branch for a total duration of seven weeks and the departments that I have worked during that time are as follows: Customer Service Clearing and remittances Accounts and finance Account opening First day, I reported to the manger of the branch who gave me brief introduction about the management and working of the branch, he also check my knowledge about banking by taking a short interview. Then he introduced me with employees. Total ten employees are working with one manger. Security system is very strict, hidden cameras are there. Branch environment is very good. 1st I worked with Madam Sadia. I learned about KYC ( knowing your customer). In this department I learned about customers behaviour, and for why he is opening A/C. 2nd I worked in account opening Department with Ahsan Ali. I learned how to fill current and saving deposit slips, how to fill account opening form, KYC (know your customers) forms, How to update accounts on daily basis, what are the requirements of account opening what type of document are required. What types of account Bank Alflah is offering to the customers. I have learnt the procedure that an account opening officer has to follow in order to open and maintain an account. Some of the major deposit account opened by bank Alflah was as follows Alflah Education Profit & loss saving Account Basic Banking Account Royal Profit Account Kifayat Account Mahana Amdan Account Current Account If customer wants to close the account then he has to given written application to head of the Operation Department. After verifies the signature the account will be close. The Charges fee is Rs.150.
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I also learned the procedure of issuance of Cheque book. When the Cheque book is issued then the signature of customer is taken on the Cheque book issuance register. Stock of Cheque books are balanced at the end of each day and kept under safe custody. 3rd I worked with account officer Mr. Nosheen in Account Department. I have learned all the transactions in different departments are forwarded to account department. Since all vouchers from different departments are forwarded to current department so this department tallies all such transactions with current department after maintaining the ledger of each department. I have learned how to make the budget which depends on the forecasting of person. Daily, weekly, Quarterly, Semi annually, annually reports are made that describes the proper analysis of branch. BAL prepares its reconciliation statements. All the debit and credit entries of the main office account are recorded in the statement. Then it is checked with physical vouchers and if there is any problem, they reconcile it. Account department maintains the record of fixed assets. The accounts department calculates the depreciation the assets by using straight line method Depreciation is charged at the following rates: Building Furniture Carpets & curtains Equipment 2.5% 10% 25% 20%
Working Experience Impact on career

My internship experience has given me a realistic preview of my field of education. Now I feel that I m better prepared to enter the world of professional work. I have come to know and have been appreciated by a number of professionals who are lending their services to the banking sector for more then a decade. I feel honored that I have worked such experienced professionals. The overall experience of my internship was very good. I learned the sense of responsibility in its literal meaning. I am now capable of dealing with different sort of customers, and how to be patient while doing so. Besides this I also gain knowledge about banking which I previously lacked and many more products being offered by the bank. No doubt this internship gave me the experience, which would boos my confidence to work in future.
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Duties and Responsibilities

My duties and responsibilities are as follows: Maintain a good relationship with the bank senior staff. Create a good and effective learning environment in the bank, Equally deal all the type of people belonging to any type any gender, race, religion etc. To help the senior staff during working hours to reduce his work load. Whenever a customer comes to open their account, they have to fill a relationship with the bank. As part of my duty I had to fill these forms and then use the appropriate bank stamps to complete these forms. Maintain the secret information of customer accounts.
Accomplishment
The main purpose of internship is to get a practical experience in the market and to get some practical knowledge. Usually the period of internship is short but we can learn a lot from this period. First time in my life when I was doing some reasonable practical tasks. I learnt how to implement my MBA knowledge on this job. I learnt what the practical implementation of the book knowledge is It was first time in my life to work whole day in the company with full responsibility, to go in time and to off in time. I learnt from this short period of job is punctuality. The other thing is dressing, professional dressing matters a lot. By seeing my senior and collogues I start to copy them in dressing. It was a big achievement for me, that I learn how to do the work in team and group of people. Working in team should be learnt.
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Problems
For any job skills and abilities are acquired to perform the job but in case to perform professional task then man should perfect and have a lot of skills to perform any type of task. But during the internship I faced some problems There is no proper way to give proper training to internee. Lack of skill with dealing with different type of customers Difficult to perform work in excel because major work is done on excel. Operate different type of computer program especially in software. Acquired the skill of communication & other professional skill. Lack of Knowledge how to face problems encountered.
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External & Internal analysis

SWOT Analysis
SWOT is stands for strengths, weaknesses, opportunities and threats. SWOT analysis is a careful evaluation of an organizations internal strengths and weaknesses as well as its environmental opportunities and threats. In SWOT analysis the best strategies accomplish an organizations mission by exploiting an organizations opportunities and strengths while neutralizing its threats and avoiding its weakness. During my internship I also observe these factors of bank and made a conclusion which is as follows
Strengths
Being the private organization its main aim is not to earn profit but also to satisfy its customers and slogan of BAL is also the representative of this purpose as Bank Alfalah The Caring Bank. Bank has AA (Double A) and A1+ (A one plus) Credit Rating for long term and short term loans respectively. Main source of profit for any financial institution is public saving which only comes from public confidence and BAL is getting this confidence which is one of the main strengths of bank Bank Alfalah is also getting fame in the market due to its name ALFALAH which is leaving the Islamic and favorable impact on the minds of public. BAL is providing the facility of Money Gram to its entire people who are its customer or not and through this service it has got the leadership in Money Gram because any other bank is not offering this service. With in very short period it has got a superb accomplishment which shows the competency of top management. Personnel of Alfalah are well trained and highly skilled.
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Weaknesses
Beside all these strengths I also noted some weaknesses in the operations of bank Alfalah which are described below: Bank Alfalah is charging online charges for transfer of money but some other banks not charge online transfer charges. Majority of the workforce consists of young professional, they lack in their experience. And sometimes lack of experience becomes a hurdle while serving to the customers. It is the point where they feel difficulty while competing with the other banks. It was observed that at present the motivation level of the employees is not very much. No job rotation for employees.. BALs lending procedure is quite complicated that some people hesitate to come as they are requiring a huge file of documents. Bank Alfalah is not offering any credit facility for students.
Opportunities
It is mandatory to try to make progress with consistency as well as to adopt changes with needs of time, in order to cope up with both conditions. Bank Alfalah is spreading its network outside the boundaries of Pakistan and it has more opportunities to extend this network as State Bank of Pakistan has prescribed new policies in the prudential regulations. In addition to excellent routine banking, it has earned a good name by offering special products like car, home and credit cards facility. So the penetration of these products could enhance market shares. There is a very good growth trend in the Islamic banking in the country and in the world as well. BAL has the advantage of having Islamic Banking network and the growth in this particular field can be very fruitful for the bank, bank has an opportunity to introduce new products and services in Islamic banking.
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Threats
Threats are the negative trends in external environmental factors. As on one side environment provides opportunities to one organization, on the other hand it also has to face some threats. Bank Alfalah also has to face this situation. The conventional banks those having high growth rate and high market share are always being a threat There is an average not low turnover rate, mainly because of low incentives as compared to the other banks. Large business parties have fewer attractions in being a client of BAL-IBD, mainly because of excessive amount of documentation Other foreign financial institutions like City Bank, Standard Charted etc also having strong banking policies and theres a chance that people might move toward these financial institutions to secure their investments, transactions and related services.
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Marketing Strategy
This is an age of competition. Numerous organizations are providing financial services to the customer. These days everyone is facing pressure of competitors. In this world of growing competition, the only way to survive and grow, for an organization, in the market place is the proper marketing and promotion of its products. Same is the case with banking companies. There is large number of foreign and local banks working in the country and it has been noticed that they are emphasizing much on their marketing strategies. In this scenario, the key for a bank to succeed and attract its customers is adequate promotion of its products &services. BAFL for the promotion of its new and existing products invest heavily, it advertises its product through: Electronic media i.e. television Print media i.e. newspaper Billboards Business magazines Website Sponsorship
Electronic media
The major way in which todays organizations promote its products and services is through television, not only because its economical but also because the visual and audio aids help in promoting its product. Television ads for Bank Alfalah mainly try to emphasis the The Caring Bank, message in its advertisements, by showing how its services can help you with the different financial problems that you face in your every day life. For example, an advertisement showed how Bank Alfalah Credit Cards helped a couple when they had no cash left during a shopping trip or how a father happily shows his family a new car that he had financed from Bank Alfalah. Another major way in which Bank Alfalah advertises its products electronically is through its website, which is designed in an effective manner with detailed
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information, so that visitors can effectively know about the different services that the bank provides.
Print media
Print advertisements are another major way in which Bank Alfalah advertises its product to the masses. Print media advertisements are mainly printed in major English and Urdu newspapers across Pakistan. The messages of these advertisements are mainly of new financial services that the bank may introduce over time.
Sponsorships
Bank Alfalah also gives a significant consideration not only to its product publicity but also to the creation of public relations. Bank has proves its public goodwill by contributing money and time to public service and activities. Bank Alfalah has been sponsoring different sporting tournament, especially cricket which is the most popular sports activity of Pakistanis and is watched by millions whenever there is a tournament featuring the Pakistani cricket team and is thus a great way to advertise their products. Some of the tournaments that Bank Alfalah has sponsored over the year are as follows: Series Sponsored By Bank Alfalah Series Pakistan Vs England Pakistan Vs West Indies Pakistan VS South Africa Year 2005 2006 2007
Now days, BAFL is sponsoring the cricket rankings updates on Ten Sports. But due to terrorism no series is held in Pakistan from previous three years. Now the BAL focuses on the domestic series sponsorship.
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Competitive Strategy
Despite notable economic uncertainties, the financial strength of Bank Alfalah Limited has greatly enhanced during the previous years. The successful expansion program proved their capability and commitment in comparison with the competition in the financial sector. The Banking structure in Pakistan comprises of: Central Bank Commercial Banks Investment Banks Development finance Institutions (DFIs) Specialized Banks Foreign Banks Bank Alfalah is a private commercial bank so the major competitors of Bank Alfalah are the following: Muslim Commercial Bank Union Bank Ltd Soneri Bank Ltd Prime Commercial bank The bank of Punjab Bolan Bank Ltd Bank Al-Habib Ltd ABL Faysal Bank Ltd Platinum Bank Ltd
Ratio Analysis
Ratio analysis is an important and age-old technique of financial analysis. Ratios are important and helpful in the reference that: COMSATS Institute of Information Technology, Lahore Department of Management Sciences 53
These simplify the comprehension of financial statement and tell the whole story of changes in the financial conditions of the business. These provide data for inter-firm comparison. The ratios highlight the factors associated with successful and unsuccessful firms, also reveal strong and weak firms. These help in investment decision in case of investor and lending decision in case of Bankers etc. 1.
CURRENT RATIO
Rs.(000) Rs.(000) Current assets Current Liabilities 2009 57778651 17142253 3.37 2008 39115635 24420285 1.6
Financial position of BAL is strong in 2009 as compare to 2008. This ratio tells us about short term solvency of the organization Current ratio is showing better trend in 2009. Cash balance is increasing in 2009 as compare to 2008. 2.
CASH RATIO
Rs.(000) Cash Equivalent Current Liabilities 2009 35,056,012 17142253 2.04% 2008 32,687,335 24420285 1.39%
Rs.(000 Cash ratio also describes the better condition for the bank. If the cash ratio increases it is better for the bank. It shows the financial condition of the bank. 3.
DEBT RATIO
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Rs.(000) Total Liabilities Total Assets
2009 366936635 389070055 0.94%
2008 331946025 348990764 0.95%
Debt Ratio describes the firms debt position as well as its liabilities. it also describe the level of financial risk. If the ratio is high then it is negative sign for bank. The ratio is decrease slightly but it is not good for bank overall. 4. WORKING CAPITAL Rs. (000) = Current assets current liabilities 2009 = 57778651 2008 = 54268378 24,420,065 17142253 = = 33,358,586
37,126,125
5.
RETURN ON EQUITY
Rs.(000) Rs.(000) N.P.A.T X 100 Share holder equity 2009 897035 X 100 19442692 4.6% 2008 1301301X100 1359727 9.6%
Return on equity describes the shareholder earned on their investment in any firm. it also describe the profitability of the company. Return on equity in 2009 reaches in lowest position as compared to previous year. 6.
NET PROFIT MARGIN
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Rs.(000) N.P.A.T X 100 Sales
2009 897035 x 100 35554930 0.28%
2008 1301301x100 31046583 0.43%
Conclusion and Recommendations

Conclusion
At present there is no such organization in the world that is free from problem and challenges. Every concern has to strive and struggle a lot to be more profitable and to get more competitive edge. It has been eighteen years since the establishment of Bank Alfalah, and since its establishment it has aimed to become the leading bank of Pakistan by that provides outstanding services to its customers. The bank has seen phenomenal growth in the past few years by opening more branches in the country, increasing the deposit base, while also increasing the assets and profits of the bank. The services that Bank Alfalah provides have a great market penetration not only because of their features but also the profit and markup rates that they charge. The management of BAFL is taking strategic steps to enable the bank to emerge as a strong and progressive institution. It is continuing to make efforts to refine its products and operations to make them more compatible. New deposit schemes have been introduced and an action plan to maintain revenue growth in future. As the business and economic conditions remain uncertain, BAL continues to develop the new products like it has been doing in past.
Recommendations
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After doing internship of six weeks in Bank Alfalah Limited, I would like to give some recommendations to count over some problems. Bank should prefer to promote worker on the basis of their talent and avoid going for personal like and dislikes. It can be harmful for the organization in the long run. In Bank Alfalah, there is misdistribution of work; some people are over burdened with the work. So I suggest that there should be fair distribution of work in all the departments. Bank Alfalah is only dealing in Money Gram; it should also starting providing the service of other money transfer lines like Western Union. BAL should provide loan to students at low mark up rate and easy terms & conditions. Bank Alfalah Limited needs to use more marketing channels such as radio to make the public aware of its products and services. In the presence of intense competition Bank Alfalah Limited has to realize the importance of marketing. There are no incentive schemes for employees of Bank Alfalah like scholarship schemes for employees that want to pursue higher education. Bank Alfalah although gives a number of incentives to its employees, like personal loans at nominal markup but they are only provided to employees that are in higher ranks. Education fees are also returned by Bank Alfalah to its employees, after the have finished their studies. Bank Alfalah Ltd should continuous to expand its business, by increasing its deposit portfolio through aggressive market penetration strategies.
APPENDIX
Balance Sheet of BAL

2005 2006 27,859,360 12,731,952 12,456,653 56,502,210 149,999,325 5,633,051 10,502,990 275,685,541 3,091,135 8,394,130 239,509,391 3,222,106 2007 29,436,378 18,380,738 3,452,059 88,491,564 171,198,992 6,013,097 11,922,324 328,895,152 4,138,243 21,230,697 273,173,841 3,220,858 2008 32,687,335 21,581,043 3,315,500 75,973,238 191,790,988 9,869,367 13,773,293 348,990,764 3,452,031 13,690,222 300,732,858 2,571,169 2009 35,056,012 22,722,639 14,947,435 99,159,957 188,042,438 14,649,380 14,492,194 389,070,055 3,766,144 20,653,921 324,759,752 7,570,181
Cash and balances with treasury banks Balances with other banks Lending to financial institutions Investments Advances Other assets Operating fixed assets Deferred tax asset TOTAL ASSETS Bills payable Borrowings from financial institutions Deposits and other accounts Subordinated loans Liabilities against assets subject to finance lease Other liabilities Deferred tax liabilities TOTAL LIABILITIES REPRESENTED BY Share capital Reserves Unappropriated profit Surplus on revaluation of assets Total EQUITY Total Liabilities and Equity
24,788,625 9,713,369 27,050,493 57,425,700 118,864,010 3,851,529 6,620,067 248,313,793 3,733,124 5,844,389 222,345,067 3,223,355
5,219,666 484,066 240,849,667
7,305,496 1,921,338 263,443,596
9,531,860 1,379,809 312,675,308
11,291,280 208,465 331,946,025
10,006,786 179,851 366,936,635
3,000,000 2,351,218 1,386,845 726,063 7,464,126 248,313,793
5,000,000 2,749,533 2,823,072 1,669,340 12,241,945 275,685,541
6,500,000 2,414,833 4,851,840 2,453,171 16,219,844 328,895,152
7,995,000 3,166,056 3,447,467 2,436,216 17,044,739 348,990,764
13,491,563 3,587,969 2,690,728 2,363,160 22,133,420 389,070,055
59
References:
www.bankalfalah.com Issues in Pakistans Economy by S. Akbar Zaidi www.world313.com/pakistan_bank_alfalah.html www.google.com
60

Internship Report On Bank Alfalah Garden Town Lahore

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Internship report on Bank Alflah Limited

COMSATS Institute Information Technology LAHORE

COMSATS Institute of Information Technology, Lahore Department of Management Sciences

Internship report on Bank Alflah Limited

COMSATS Institute of Information Technology, Lahore Department of Management Sciences

Internship report on Bank Alflah Limited

MY LOVING PARENTS, RESPECTED TEACHERS, & DEAR FRIENDS

COMSATS Institute of Information Technology, Lahore Department of Management Sciences

Internship report on Bank Alflah Limited

COMSATS Institute of Information Technology, Lahore Department of Management Sciences

Internship report on Bank Alflah Limited

Products and Services Organizational structure & Department Internship Experience

Internal & External analysis

Conclusion and Recommendation Appendix References

COMSATS Institute of Information Technology, Lahore Department of Management Sciences

Internship report on Bank Alflah Limited

Internship report on Bank Alflah Limited

Industry Introduction and Background

COMSATS Institute of Information Technology, Lahore Department of Management Sciences

Internship report on Bank Alflah Limited

COMSATS Institute of Information Technology, Lahore Department of Management Sciences

Internship report on Bank Alflah Limited

Historical Overview of BAL

COMSATS Institute of Information Technology, Lahore Department of Management Sciences

Internship report on Bank Alflah Limited

COMSATS Institute of Information Technology, Lahore Department of Management Sciences

Internship report on Bank Alflah Limited

Information about the organization

Internship report on Bank Alflah Limited

COMSATS Institute of Information Technology, Lahore Department of Management Sciences

Internship report on Bank Alflah Limited

Products and services by BAL

COMSATS Institute of Information Technology, Lahore Department of Management Sciences

Internship report on Bank Alflah Limited

Alfalah car Ijarah

COMSATS Institute of Information Technology, Lahore Department of Management Sciences

Internship report on Bank Alflah Limited

Other Product and Services

COMSATS Institute of Information Technology, Lahore Department of Management Sciences

Internship report on Bank Alflah Limited

Rupee Travelers Cheque

COMSATS Institute of Information Technology, Lahore Department of Management Sciences

Internship report on Bank Alflah Limited

Automated Teller Machine (ATMs)

COMSATS Institute of Information Technology, Lahore Department of Management Sciences

Internship report on Bank Alflah Limited

Organizational Structure & Departments

Chief Executive Officer

Co-Chairman Central Management Committee

COMSATS Institute of Information Technology, Lahore Department of Management Sciences

Internship report on Bank Alflah Limited

Chairman Director Director Director Director Director Director & CEO

Board Audit committee

Director Director Sectary

Chief Operating Officer Company Sectary

Mr. Shakeel Sadiq

Mr. Hamid Ashraf

COMSATS Institute of Information Technology, Lahore Department of Management Sciences

Internship report on Bank Alflah Limited

B.A.Building I.I. Chandigar Road Karachi.

COMSATS Institute of Information Technology, Lahore Department of Management Sciences

Internship report on Bank Alflah Limited

Accounts opening Department