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Bank Alfalah Ltd Islamic Banking

Bank Alfalah Ltd Islamic Banking

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Published by: Xulfi Laghari on Apr 17, 2012
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Sections

  • TABLE OF CONTNTS
  • Evolution of Banking
  • Early Growth
  • Development of Modern Banking
  • Banking in Pakistan
  • The Vision
  • The Mission
  • The Philosophy
  • Karachi
  • Lahore
  • Rawalpindi
  • Peshawar
  • Multan
  • Other Branches
  • Salient Features
  • Eligibility Criteria
  • Daily Product Basis
  • Average Month Balance
  • MINIMUM MONTH BALANCE
  • Saving A/C (05 Days _ Minimum Monthly Balance)
  • Cheque Book Issuance
  • Procedure
  • Receiving Inward Cheques
  • Procedure for Issuing DD
  • Procedure for Demand Draft Payable
  • Inward Bills for Collection
  • Bills for Collection In 2007
  • • Credit principles
  • 1. Credit Principles
  • 2. Credit Portfolio
  • 3. Credit Approval
  • 4. Credit Administration
  • 5. Credit Monitoring
  • Advances
  • Funded Facilities
  • Pre-Shipment
  • Post – Shipment
  • Non – Funded Facilities
  • L/C Is Of Two Types:
  • Credit Cards
  • Exporter
  • Documents to Be Attached For Exports
  • Form – E
  • Transport Document (Bill Of Lading, Airway Bill)
  • E-Form Certification
  • Form of Authorized Dealer’s Certificate
  • Certificate of Origin
  • Covering Schedule
  • Beneficiary Certificate
  • E-FORM E-Form Has Four Copies:
  • Payment from Importer Bank
  • SWIFT
  • Bill Of Lading
  • Bank Keep In Record
  • Imports
  • Necessary Requirement
  • Documents for Import

Bank Alfalah LTD.

TABLE OF CONTNTS
TABLE OF CONTNTS.................................................................................................... 1 Evolution of Banking................................................................................................7 Early Growth............................................................................................................ 8 Development of Modern Banking.............................................................................9 Banking in Pakistan..................................................................................................9 The Vision.................................................................................................................16 The Mission............................................................................................................... 17 The Philosophy .........................................................................................................18 Karachi ..................................................................................................................... 21 Lahore ...................................................................................................................... 22 Rawalpindi ............................................................................................................... 22 Peshawar.................................................................................................................. 23 Multan....................................................................................................................... 23 Other Branches......................................................................................................... 23 Salient Features........................................................................................................ 27 Eligibility Criteria.......................................................................................................28 Daily Product Basis................................................................................................... 34 ................................................................................................................................34 Average Month Balance............................................................................................34 Minimum Month Balance...........................................................................................34 Saving A/C (05 Days _ Minimum Monthly Balance)....................................................35 Cheque Book Issuance..............................................................................................41 Procedure................................................................................................................. 41 Receiving Inward Cheques........................................................................................42 Procedure for Issuing DD...........................................................................................49 Procedure for Demand Draft Payable........................................................................49 Inward Bills for Collection..........................................................................................51 Bills for Collection In 2007.........................................................................................51

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Bank Alfalah LTD.

1. Credit Principles....................................................................................................52 2. Credit Portfolio...................................................................................................... 52 3. Credit Approval..................................................................................................... 53 4. Credit Administration............................................................................................53 5. Credit Monitoring.................................................................................................. 53 Advances.................................................................................................................. 53 Funded Facilities....................................................................................................... 54 Pre-Shipment............................................................................................................ 54 Post – Shipment........................................................................................................ 54 Non – Funded Facilities............................................................................................. 55 L/C Is Of Two Types:..................................................................................................55 Credit Cards.............................................................................................................. 55 Exporter....................................................................................................................56 Documents to Be Attached For Exports.....................................................................56 Form – E.................................................................................................................... 57 Transport Document (Bill Of Lading, Airway Bill).......................................................57 E-Form Certification.................................................................................................. 57 Form of Authorized Dealer’s Certificate.....................................................................58 Certificate of Origin...................................................................................................58 Covering Schedule.................................................................................................... 58 Beneficiary Certificate...............................................................................................58 E-FORM..................................................................................................................... 59 E-Form Has Four Copies:...........................................................................................59 Payment from Importer Bank....................................................................................59 SWIFT....................................................................................................................... 59 Bill Of Lading............................................................................................................. 59 Bank Keep In Record.................................................................................................60 Imports..................................................................................................................... 60 Necessary Requirement............................................................................................60 Documents for Import...............................................................................................61

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Bank Alfalah LTD.

Executive Summary
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Bank Alfalah LTD. which are two types. Agricultural Advances. bank send letter to the account hold for informing him that his account is going to be closed. Unsecured Advances. The State Bank of Pakistan issues the shares of these periodically. Before closing any account. In remittance department like any other BANK AL-FALAH also have instruments for transferring of money. Bank provides this facility to the people who need advance money to meet their requirement. BANK AL-FALAH provides advances. Bank does not pay any profit on current deposits. The clearing in Karachi at BANK AL-FALAH or other banks is being done through NIFT (National Institute of Facilitation Technology). books. The banking structure in Pakistan comprises of the following types. Bank employees and other common peoples can also purchase these shares and earn profit. The state bank of Pakistan is the Central bank of the country and was established on July 01.e. BANK AL-FALAH usually classified advances in to following types Commercial Advances. 1948. Mail Transfer. Cheque Book. Cash paid voucher sheet. To open an account the customer has to meet the general banking manager with an introducer. Term deposit and Foreign currency accounts. The network of bank branches now covers a very large segment of national economy. specialized credit institutions. Commercial Bank of Pakistan. Secured Advances. Saving Account. In cash department both deposits and withdrawals go side by side. This department works under the CD In charge and deals with cash deposits and payments. Corporate/SME’s Advances. Cash balance book. Cooperative banks. and ledger of account cash received voucher sheet. Current deposits are those which are payable to bank whenever demanded by the customer. Party dealing with other banks financial condition of borrower business and as a first step credit proposal is being made. Telegraphic Transfer. Commercial -4- . State Bank of Pakistan. Exchange Banks. customer’s master file. There is need an approval form higher authority to close any account. The procedure begins with the punching of account opening form to the customer file i. Paying-in-slip. This department maintains the following sheets. The following are the financial products/services of PLS Account. Saving banks.

and Foreign Bills for Collection. -5- . Advances are of following types Demand Finance. Bank provides the Agriculture Advances in order to enhance and support the agriculture sector of the country. Farm Credit & Non Farm Credit. Foreign Remittances. BANK AL-FALAH is dealing Foreign Currency Accounts. Cash Finance. Imports & Exports Foreign currency accounts & the foreign currency department deals with the following types of accounts. In foreign exchange. Term deposit. Current account. Saving bank account.Bank Alfalah LTD. Letter Of Credit facility is being provided by BANK ALFALAH in foreign exchange. Foreign accounts are convertible on floating rate available to the bank. Banks Agriculture division deals with the agriculture advances. Export Refinance Part I (Pre Shipment) & others.

Hart “Banker or bank is a person or company carrying on business of receiving money and collecting drafts for the customers subject to the obligation of honouring cheques drawn upon them from time to time by -6- . what is BANK? According to Dr.Bank Alfalah LTD.

Bank Alfalah LTD. He borrows one party and lends to the another”   Evolution of Banking -7- . customers to the extends of the amounts available on their currents accounts”   In the words of G W Gilbert “A banker is a dealer in capital or more properly a dealer in money. He is an intermediate party between the borrower and lender.

some more public banks were formed in Venice. drew up accede where in he laid down standard rules of procedure for banking operations by temples and great landlords. The explanation of this origin is attributed to the fact that the Jews in Lombardy transacted the business of money exchange on branches in the market place and when the business failed. the founder of the Babylonian empire.Bank Alfalah LTD. interest. Later on Sumerians. In order to streamline Banking organizations and techniques. Milan. By the 16th century. conferences were held in Nuremburg from 1548 to 1551 -8- . It has not so far been decided as to how the word ‘Bank’ originated. It is not certain as to who invented money but history recess that king of Lydia castled electrum ingots of identical shapes and of uniform weights with a triple emblem engraved on it as an official guarantee of value in 687 B. then how is that the Italian money changers were never called ‘Banchierei’ in the Middle Ages Other authorities hold the opinion that the word ‘Bank’ is derived from the German word back which means joined stock fund. Early Growth Banking in fact is as primitive as human society for ever since man came to realize the importance of money as a medium of exchange.C. containing about 150 paragraphs which deals with nearly all aspects of loans. Incidentally. guarantees. theft etc. Then ‘Back’ was Italianize into ‘Bank’. In 1401 a German public bank was framed comprising the operations of discounting and transferring of money. loss. Perhaps it was the Babylonians who developed banking system as early as 2000 B. He got his code inscribed on the block of diorite about 8 feet tall. Hamburg and Nuremburg.C. Hittites and Assyrians standardized the values of the goods in silver. the people destroyed the Bank. copper and bronze. natural accidents. It is evident that the Temples of Babylon were used as ‘Banks’ because of the prevalent respect and confidence in the clergy.C). Amsterdam. pledges. Babylonians. King Hamurabi (1728 – 1686 B. The opponents of this opinion argue that it was so. the word ‘bankrupt’ is said to have been evolved from this practice.

Similarly in 1690. Upto 1813 or there about in England. and it was agreed that the commercial interest of the time needed a bank with facilities of growth and transfer but it should not be a bank run by private individuals. a State Bank under the name of banco DI rialto was formed in Genoa. Development of Modern Banking In 1918 came into being eleven clearing banks of today. Banking in Pakistan At the time of independence. Ultimately in 1587.Bank Alfalah LTD. By the year 1700. emergence of a small number of large banks with wide network of branches. The bank had the monopoly of issuing banking notes. In 1946. the labor government nationalized the bank of England and transferred the existing stock to the nominee of British treasury. the British Banks made a departure from traditional banking by undertaking hire-purchase finance for companies buying industrial plants and machinery and took interest on hire-purchase finance. As a new country without resources it was very difficult for -9- . This Bank had a guarantee by the State and rendered valuable services to the Netherlands trader’s up to the year 1795. Second. there were 631 offices of scheduled banks in Pakistan. Its directors were conducting the business like that of limited companies. In 1955. the Bank of Hamburg came into existence in Hamburg with the business of accepting deposits of fine silver or of foreign money and to run accounts on these deposits. First. when it was merged with the Reich bank. the bank of England was not only issuing notes but also conducting accounts for customers. the main profit of bank was derived from the circulation of notes. Later the bank of Amsterdam was also formed in 1609. This Bank rendered great service to the merchants as well as countries it dealt with until 1873. of which 487 were located in West Pakistan alone. increase in the popularity of bank accounts and a large-scale use of cheques. The effect of this historical development of banking in England has been fairly wide.

1) State Bank of Pakistan. 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. Therefore. Up to December 31. The customers of the bank are not satisfied with the uncertain condition of banking. 3) Saving banks. 1974. and were recognized and merged into the following five banks: 1) National Bank of Pakistan 2) Muslim commercial bank limited -10- . while there were only two Pakistani institutions. Consequently the Governor-general of Pakistan Quaid-E-Azam inaugurated the State Bank of Pakistan on July 1. of Pakistan. exchange etc. be settled between India and Pakistan. so that problems of time and demand liability. The non-Muslims started transferring their funds and accounts to India. There were 19 foreign banks with the status of small branch offices that were engaged solely in export of crop from Pakistan. coinage currencies. Similarly the Reserve Bank of India was not in the favour of Govt. The Govt. the expert committee recommended that the Reserve Bank of India should continue to function in Pakistan until 30 th September 1948. 2) Commercial Bank of Pakistan. there were 14 Pakistan commercial banks that functioned all over the country and in some foreign countries through a network of branches. 1948. 4) Co-operative banks 5) Specialized credit institutions.Bank Alfalah LTD. By the end of June 1948 the number of officers of scheduled banks in Pakistan declined from 631 to 225. 1973. Pakistan to run its own banking system immediately. Habib Bank of Pakistan and the Australasia Bank. of Pakistan decided to establish a full-fledge central bank. All these commercial banks were nationalized in January 1.

There is done reasonable growth in deposits from the establishment of Pakistan. specialized credit and financial institutions have also developed over the years. Besides this growth. The State Bank of Pakistan issues the shares of these periodically. The network of bank branches now covers a very large segment of national economy. 3) Habib Bank Limited 4) United Bank Limited 5) Allied Bank of Pakistan The state bank of Pakistan is the Central bank of the country and was established on July 1. The Government of Pakistan in the late 90’s introducing the need for the privatization of state owned banks and companies. The private sector has accepted the challenge and most of the banks are privatized today. Bank employees and other common peoples can also purchase these shares and earn profit. 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. 1948.Bank Alfalah LTD. The numbers of branches have increased appreciably and there is now on branch of bank for every 3000 heads of population approximately. -11- .

the bank was closed due to international pressure. In 1991. the bank is energized with the vision. in association with U. Charged with the strength of Abu Dhabi consortium. which were named as Habib Credit and Exchange Bank (HCEB) and these were working as subsidiary of Habib Bank Limited.A. Bank of Credit & Commerce International (BCCI) was a Pakistan based bank. the BCCI was banned. It is now Abu Dhabi based bank as the family of Sheikh Nahayan Mubarik Al-Nahayan purchased 70% of its shares and 30% shares remained with Habib Bank on behalf of Government of Pakistan. when was accused by European countries that the bank was involved in some illegal operations with Gulf countries. BCCI has its branches in 74 different countries of the world. 1998. Agha Hassan Abdi from UBL. -12- . Minister of Higher Education and Scientific Research. Introduction to Bank Alfalah Ltd. Following the privatization in July 1997. The major reason behind European accusation was that BCCI was of Islamic mode. its 3 Pakistani branches were taken over by the Government of Pakistan. Therefore. Habib credit and Exchange Band assumed the new identity of Bank Alfalah on February 25. and a prominent member of Royal Family. established by Mr. envisaging the development of various sectors in Pakistan. Government of Abu Dhabi. and under the leadership of His Highness Sheikh Nahayan Mubarik Al-Nahayan.E and Europe. Then. It had its 3 branches in Pakistan.Bank Alfalah LTD.

along with making profitable advances and increasing the range of products and services. we have moved rapidly in expanding our branch network and deposit base. we have designed this website to be as user-friendly as possible. Since the inception of Bank Alfalah. It is only when we know our customers better. financial strength and profitability. Keeping in view our valued clients and the need for constant and effective communication of information.Bank Alfalah LTD. customer satisfaction remains our priority. We have made a break-through in providing premier services at an affordable cost to our customers. As we pursue the path of excellence. can we deliver a higher quality of services. thereby adding synergy to our existing management expertise. -13- . This is yet another channel of communication for the delivery of quality products and services that enhance value to our stakeholders. by the grace of the Almighty.

Asad Jamil Executive Incharge IT Division Mr. Bakhtiar Khawaja Executive Incharge Human Resources Division Mr.E. Shahid Executive Incharge Strategic Planning & Global Marketing Mr. Thank You for Visiting Our Site. Shakeel Sadiq Executive Incharge Corporate Banking & Home Finance.Bank Alfalah LTD. Mr. Parvez A. Mohammad Yousuf Executive Incharge Credit Division Mr.Mahmood Ashraf Executive Incharge Credit Monitoring Division -14- .Sheikh Hamdan Bin Mubarak Al Nahayan Management Sirag-u-din Aziz Chief Executive officer Mr. H.

Ijaz Farooq Executive Incharge Islamic Banking Division Mr./ Car Finance/ Leasing Executive Incharge Finance Division Mr. Adil Rashid Executive Incharge Cards Division -15- . Mr.M. Mohammad Iqbal Saifee Executive Incharge Audit & Inspection Division Mr. Jamall Mr. Hamid Ashraf Mr. Mr. Murtaza Executive Incharge Business Development Division S. Ather Shehab Executive Incharge Establishment & Administratration Executive Incharge Legal Affairs Division.A. Zahid Ali H.Bank Alfalah LTD. Shahid M.

Bank Alfalah LTD. Our focus is on improving performance in each of our businesses to achieve consistent and superior returns for our highly valued clients and stakeholders. -16- . with a niche in areas where we have a competitive advantage with complete banking solutions. The Vision Our vision is to be a leading financial institution.

The emphasis on “Quality & Innovation” will remain our key mission statement. The Mission Our mission is to maintain a competitive edge in quality banking. customer service and profit performance. -17- . Our activities are geared towards making Bank Alfalah a responsible corporate citizen.Bank Alfalah LTD. We will continue to strengthen our position as the leading provider of quality financial services in Pakistan.

The Philosophy Excellence in service  Quality performance  Product innovations Bank Alfalah’s Slogan Let’s Look Ahead Towards A Brighter Future Together. Bank Believes -18- .Bank Alfalah LTD.

the year 2000 was a milestone for the bank. with a balance sheet footing of Pak Rupees 27. Concurrently. Present Status: Despite adverse economic conditions of country. Bangladesh and Sri Lanka. an increase of 29. Performance is nothing without the ability to measure it. Currently bank is emphasizing on expanding its operations to meet client’s needs and for this purpose management has plans to add more branches to existing network in the coming years.96% to Pak Rupees 20. Bank has already started its working to go internationally and its future target markets include UAE. Bank Alfalah is now looking forward positively towards the future and its management is confident to build on the gains realized during 2012. Technological developments are opening up new vistas of solutions for distributing traditional financial products. is all pervading in the corporate world. A keen ear is a key to understanding.48 billion. After doing successful business in year 2000 to 2011.50 %. Time is our most valuable asset. Bahrain. both in terms of growth and profitability. • • • • • • • Every door leads to our customers.Bank Alfalah LTD. The legacy of leadership stands as our guiding light.57 billion compared to previous year’s figure of Pak Rupees 21. The strength of chain relies on the strength of each link. rapid change in customer preferences has resulted in a major shift from manual to automated services. Information Technology today. The bank’s pretax profit for the year grew by 12. Achievement is nothing without target.02 billion. Every drop counts. Bank Alfalah made heavy investments towards enhancing its capabilities in the -19- .

Information Technology department of bank has successfully developed an advanced computer program named BANK SMART. the bank is committed to put all its energies. the financial strength of Bank Alfalah Limited has greatly enhanced during the previous years. From above stated facts it is very clear that bank has made remarkable achievements within a short period of time despite being in the nascent stage. Another success of bank is in the area of foreign trade. The successful expansion program proved their capability and commitment in comparison with the competition in the financial sector. area of automation and information technology. With its key indicators of progress already soaring to new heights. Bank has developed excellent business and correspondent relations with renowned banks of the world whose support in terms of lines of credit has enabled it to handle ever-growing trade volumes. Competitors Despite notable economic uncertainties.Bank Alfalah LTD. employees and shareholders. 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 -20- . resources and time to bring higher value and satisfaction of its customers.

I. Detail is as under: Karachi  Main branch.Bank Alfalah LTD. Building.A. Branch Network Bank Alfalah has its 383 branches including 73 Islamic banking branches in Pakistan.C.  Standard chartered  Soneri Bank Ltd  Prime Commercial bank  The bank of Punjab  Bank Al-Habib Ltd  ABL  Faysal Bank Ltd  NIB  Arif Habib Rupali Bank Ltd.E. B. I.S Branch  Timber Market Branch -21- .H. Chandigarh Road  Cloth market branch  Karachi Stock Exchange Branch  Clifton branch  Shahrah-e-Faisal Branch  P.

A.E Branch  Paper market branch  North Karachi branch Lahore  Gulberg branch  Defense branch  Circular road branch  Township branch  LDA Plaza branch  Badami bagh branch  Allama Iqbal Town Branch  Shah Alam Market Branch Rawalpindi  Mall road branch  Satellite town branch -22- .Bank Alfalah LTD.T.I. Jinah Road Branch  North Napier Road Branch  S.  Defense Housing Authority Branch  Gulshan-e-Iqbal Branch  Jodia Bazar branch  Korangi industrial area branch  M.

Bank Alfalah LTD. Peshawar Peshawar Branch  Peshawar City Branch Multan  Main Branch Abdali Road  Hussain Agahi Branch  Vehari Road Brach  Chowk Shaheedan Branch Other Branches Other branches are in:  Hyderabad  Sukhar  Rahim Yar Khan  Sialkot  Islamabad  Jhelum  Quetta  Mingora. Swat  Mian Channu  Faisalabad  Gujranwala -23- .

Abdullah Khalil Al-Mutawa.E. Organizational Charts -24- . Mr. Muhammad Saleem Akhtar. Al-Askari.Sheikh Hamdan Bin Mubarak Al Nahayan Mr. Naeem Iqbal Sheikh. Mr. Omar Z. Mr. Ikram-ul-Majeed Sehgal.Bank Alfalah LTD. Mr.  Sargodha  Bahawalpur  Dera Ghazi Khan  Gujrat  Sahiwal  Sadiqabad branch  Mardan THE BOARD The list of Board of Directors of Bank Alfalah Limited is as under: • • • • • • H.

Bank Alfalah LTD. -25- .

Bank Alfalah LTD.

Features
Bank Alfalah Limited is well established bank. It has some special features with the help of those it is growing rapidly.

Good Work Environment As the work environment plays a great role in this competition age, so the bank has good work environment. 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 Hussain Agahi branch is 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. It also shows their loyalty, commitment to organization. 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 for improvement 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.

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Bank Alfalah LTD.

Computerized Working Environment In bank, all the work is done on computers. All the entries are made in computer. Balance are fed into the computer. This increases efficiency of the bank. All the branches are centrally controlled through LAN settings. It helps them to co-ordinate more easily for making efficient and fastest consumer services.

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. 50 Millions for one party, they don’t go beyond five years financing.

Alfalah Car It’s a scheme that enables one to own his desired car at easily affordable and flexible installments with a minimum down payment and insurance.

Salient Features • Lowest Financing cost available in the market • • Tenure of 1 to 5 years as per individual requirement Quickest processing Minimum processing charges: Rs. 4500 payable once Down Payment requirement of 15% Repayment through monthly installments

• •

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Bank Alfalah LTD.

Lowest Insurance rates available from bank’s approved insurance companies

Eligibility Criteria All Businessmen, Corporate Employees, and other salaried or self-employed professionals having net take home income in excess of three times the monthly installment.

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Filling of account opening form includes type of account. If an account is not operated in six months. But in the case of bank borrowing funds from outside parties is more vital because the borrowed capital of a bank is much greater their own capital. it is called Dormant Account. The Bank does not make payment of a cheques bearing a six-month or older date.Bank Alfalah LTD. Types of Account ♦ Current Account. the customer fills the account opening form (AOF). currency of account. Account Opening Department Borrowing funds from different sources has become an essential feature of today’s business enterprises. name. These deposits are lent out to different parties such deposit creation is done through open an account in the bank. Account Opening Form: First of all. signature of customer -29- . ♦ Joint Account ♦ Proprietorship Account ♦ Partnership Account ♦ Private Limited Account Procedure of opening Account The procedure of opening the account is as given under: 1. ♦ Saving Account. and address. Banks borrowing is mostly in the form of deposits.

3. an account number is allotted to the customer and all the information is entered into the computer and register. Account Number: When all the formalities are completed. Introduction: The signature and account number of the account holder introducing the account to the new person is obtained on the account opening form.S Card and account opening form. 2. the signature on the cheque is verified by comparing it with S. 5. 6. The basic purpose of this form is to get some basic information about the customer’s business and source of incomes. 4.S Card.Bank Alfalah LTD. Specimen Signature Card: The signature of the client is obtained on a specimen signature card (S. He also signs an undertaking that he will follow the rules and regulations of the bank. Requisition slip A requisition slip for Cheque book is also given to the customer. -30- .S Card). Know Your Customer Form Every account holder fills this form. The customer fills it and gives it to the account opening Officer. The card is obtained with two signatures from the customer. Every time a cheque is received for payment from the client. Then that account number is written on S. and signature of introducer and attach a photocopy of national identity card.

000 only. Such a request is known as Requisition Slip. Letter of Thanks: -31- . 9. Entry of Cheques Book: Before issuance of a Cheque book the bank stamp every leaf with the account number of the customer. The minimum initial deposit is fixed for each account according to the nature of account. For this purpose cash pay-in-slip is used. Issuance of a Cheques Book: After opening an account with the bank.5. BAL issues Cheque books from 25 leaves to 100 leaves. Filing of AOF: Account opening forms are basic documents of the contract therefore these are filed in numerical order and kept for reference. the account holder makes a request in the name of the bank for the issuance of a Cheque book. Depositing of amount in account: The client deposit cash in the account. For example for PLS / saving account the minimum requirement is Rs. This process takes a day because the Cheque books come from the Karachi head office. 10. 7. enter it in the cheque book register and computer and issues the cheque book to the customer after his signature on the register. When he used this book completely then he can apply for another known as subsequent Cheque Book. 8.Bank Alfalah LTD.

Account holder gives an application along with necessary documents to the bank.  Liability / Inquiry Form This form is used if some person has acquired loan from the bank and he wants to close his current account. When the credit department declares him free from any debt obligations then his account is closed.  Vernacular Form -32- . Amendments/Changes in Accounts: BAL provides the facility of amendments in accounts. then he fills this form and this form is send to credit department.Bank Alfalah LTD. A letter of thanks is prepared. Then the amendments are made in the account of the depositor. whenever required by the customers. 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. 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.

it is also called checking account because cheque can be drawn on it. This form is used when some person wants to sign in any language other than English.  Permission is granted by the authorized person (the manager). If he is cleared from all the liabilities then further proceeds are taken.  A liability form is send to the credit department if he has taken a loan from the bank.  He withdraws all his money from his account but in case of current account Rs. -33- .  His specimen signature card is attached with the account opening form and marked closed. Where a banker accepts. The minimum balance requirement for opening the current account is Rs. They paid on demand. It is only for transaction purposes.  Account is closed in the computer system.  Mandate To The Third Party To Operate The Account This form is used to enable any third party to operate the account.000. 150 is deducted as a charge of closing the account.  His signatures are verified.Bank Alfalah LTD. Current account is mostly opened for business. Current Account There is no interest on these accounts. As there is no profit paid on this account.  First of all the customer gives the request to close the account. Closing of Accounts The procedure of closing of account is as follows. 10. paying all checks drawn against him to extend of the balance in the accounts.

100. The minimum balance requirement for opening the account is Rs. The profit on saving accounts is paid on the basis of profit and loss sharing basis. At the end of specific period the customer is allowed to with draw the principal amount. The term deposit account varies from one month to 5 years and the minimum balance requirement is Rs. Saving Account The purpose of this account is to introduce the habit of saving individuals in the neighborhood. The rate of return of this account varies from 5 % to 13 %.Bank Alfalah LTD.000. Profit Calculation Methods Daily Product Basis Deposited Amount × Rate of return. Term Deposit A term deposit is a deposit that is made of a certain period of time. of days in month MINIMUM MONTH BALANCE Any minimum balance during the month is taken for calculating profit -34- .10. Sum of daily end Balance × Rate of return No. 365 (No.000. of days in a year) Average Month Balance.

Or as per customer requirement. Account Opening Procedure For opening of an account. Proof of Income -35- .Bank Alfalah LTD. The amount of profit is given to deposits in three ways: ⇒ ⇒ Cash payment (only in case of term Deposits). Less balance is calculated for profit. Private Limited Company A/C and Public Limited Company A/C. Partnership A/C. Saving A/C (05 Days _ Minimum Monthly Balance). Documentation • • Copy of National Identity Card. Minimum Balance of first 5 days is compared to the minimum balance of the minimum balance of remaining 25 days. it is called individual A/C. ⇒ The depositor’s account is credited at maturity. Individual’s Account When a single man or woman opens an account in his or her own name and has the right to operate. there are different types of account holders are required for all these types. The operation/procedure requirement that is needed for “Individual Account” differs greatly from the “Joint Accounts” proprietorship A/C. By sending bank draft to depositor’s home address or officers or whichever is specified as mailing address.

• The next step is entering in compute r because the centralized account opening structure and generation of account number.Bank Alfalah LTD. mother. husband/wife or any other relative’s name. he signed a “Vernacular Form”. The person place in the type of account and type of operation required in the account opening form. his/her address. a fix his/her either two of four similar signature ( or thumb expression in the signature space ) and get it introduced and 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. This requirement is needed because in his/her absence bank can have correspondence with a specific person. his or her sign to certify this requirement. • If the person has changed its signature then he must have to sign the “signature change undertaking”. • The person fills his or her father. phone number. • Operations • Proper Identification (Introduction). • He/she fills in part 1 of the form. • The person deposits the initial amount for opening account onto the cash counter. • If the person put his signature in Urdu or any other language other than English. -36- . The person put his signature on form on two places in “authorized Signature” and fills in the “Title of Account” space by writing his name.

I.Bank Alfalah LTD. • • The person fills the Part-1 and Part-II Signature of box or all persons are obtained on the formed in the area specified for signature. -37- . In the title of account space names of all persons maintained.C card. Income proof of both Identification (Introduction). • Operations • The person checks the type of account and type of operation required in the respective box on the form. trustees. • • jointly. account is opened in his firm name. open an account in their name is joint account. Account holders specified in the form that they will operate the form singly or Proprietorship Account When the owner of the firm operates singly. Joint Account When two or more persons neither partners nor. Documentation • • Copy of N.

Bank Alfalah LTD. Status of the firm ( In case of registered firm ). Copy of Sole Proprietorship Declaration. NTN certificate Proof of Business Operations All operation remains the same. Status of the firm.I. Operation of the A/C (as per deed). Partnership mandate Letter showing the authority of one or more partners to act on.I.C of all partners. Documentation • • • • • • • Copy of N. except that the firm name is written in “title of account” area and Signature of the proprietor in the specified area. Partnership Account The account is opened in the firm name and all partners designate one or two persons to act behalf of the partnership firm all acts of the firm jointly and severely. The attested copy of Partnership Deed (in case of registered firm ). Documentation • • • • • Copy of N.C. Form C for the registered firms Operations -38- .

C of all partners. Operations -39- . Operating instruction is very important for the described case that who will be operating the account.Bank Alfalah LTD. cards are signed by all of those partners who will act on behalf of the firm. List of directors. Corporate mandate duly signed by the directors Copy of NTN certificate Form (A) showing the changes in share capital and share holders Account opening Request on letter head of the organization Resolution of Board of directors Power of attorney if any. Certificate of Incorporation Form 29 (B) (Lasted Copy). All other requirements are same except that all partners dully sign the form. Private Limited Company Account Documentation • • • • • • • • • • N.I. Company’s letter head Embossed seal • • • • Company secretary will certify all these copies. Certificate of incorporation Certificate of commencement of business Articles and Memorandum of association.

Articles and Memorandum of association. • Proper Introduction. Other procedure is same. • The person authorized in the resolution of the board of directors put their signature on the S. • After completing each and every formalities are signed by all partners who will act on behalf of the firm.C of all partners. List of directors. Resolution of Board of Directors. Certificate of commencement of Business.Bank Alfalah LTD. Cheque Book Issuance Receiving Inward cheques Account Closing • • • -40- . Pubic Limited Company Account Documentation • • • • Copy of N. • Operations Operation is same as Private Limited Company Responsibilities Of Account Opening Department • Documentation Intact. • Next of Kin requirement is not need in a case of Private Limited Company.S Card.I.

For this closing. NIC number and signature of that person on requisition and Cheque Book issuance register. the customer are verified on the requisition. number of leave and signature of the customer. • Every Day Posting Account Closing When a customer wants to close his account because of any reason. a fee of Rs. then. he has to give a hand written application to the head of the Operations Department to close his account. Cheque Book Issuance When the account is opened. -41- . issuance of Cheque book.the requisition. Signature of. the particulars of the third person are required like name of the person. Procedure All the account opening formalities must be completed before. the customer is given a Cheque book to sign upon and en cash money. Particulars of the Cheque Book requisition should be completed containing title of account. In the file of account holder. It is preceded as under. The Operations Manager first verifies the signatures of account holder. In such case. account number. and then closing is done from the registers on the computer where the account was opened. plus remaining leaves of the Cheque Book. If customer is unable to collect his Cheque Book.Bank Alfalah LTD. then he can give authority to the 'third person to collect his Cheque book' on his behalf by signing on the back of . 150 is charged in Bank Alfalah. type of currency. his account opening form is also crossed.

Stock of Cheque books are balanced at the end of each day and kept under safe custody. ♦ 25 leaves ♦ 50 leaves ♦ 100 leaves Receiving Inward Cheques Another responsibility &function of Account Opening Department is to receive Inward cheques for collection of other banks. and posts it in the company. Particulars are entered in the Cheque book issuance register.Bank Alfalah LTD. Cheque Book is taken out from the safe/locker. cheque serial number is entered in the system (Bank Excel). It is assured that series of the Cheque Book is in order. The account opening department makes credit vouchers of excise duty and provincial tax on cheque book leaves. Name of the account holder is written on the cover of the Cheque book and requisition on the Cheque Book for further issuance is properly filled stamped and signed by officer of the bank. Cheque Book is delivered to the customer and his signature is taken on the cheque book issuance register. These cheques are sent to clearing official who clears these cheques at SBP from other banks. Account number is stamped on every leaf of the Cheque book and those leaves are counted. Every Day Posting At the end of each day. -42- . Posting of cheque books is performed. Cheque book is charged according to the leaves of the Cheque book as per 5 Rupess per cheque Bank Alfalah Issues the Following Cheque books.

account number. Cash Department performs two main functions and other subsidiary functions: ♦ ♦ ♦ Cash Deposits Cash Payments Online Cash Receipts & Payments Cash Deposits Cash receiving officer receives cash along with pay-in slip from the customer. Cash Department Mr. He checks if the deposit slip is properly filled up containing title of account.Bank Alfalah LTD. Kamran helped me in learning about Cash Department. date and amount -43- .

endorsements and signature of the customer. It is posted in the system and posting stamp and number is affixed on it. Cash received stamp is affixed on the face of the deposit slip along with the signature of the cash receiving officer. Counter folio is given to the depositor as receipt. Officer cash department signs both the deposit slip and register. amount in words and amount in figures. Cheque is handed over to the cash payment officer for payment. any material alterations. First the customer presents the Cheque or holder to branch and the particulars of cheques are properly filled in. One consolidated cash debit voucher is posted in the system to balance the cash. Entry is passed in the cash payment register. -44- . payee's name crossing if any. He also verifies signature.Bank Alfalah LTD. Cash paid stamp is affixed on the face of the cheque. Cash is received by the cash receiving officer. Deposit slip is credited and posted in the concerned account in the system. Deposit slip and cash receiving register is given to the officer in cash department. Signature of the holder is taken on the back of the cheques. in word and figures. Again proper scrutiny is made by the officer cash department both on cash receipt and cash receiving register. Payment of Cheques The process for payment of cheques for local and foreign currency is same. One more signature on the back of the cheque is taken from the holder to match with the first one. and then cash is paid to the payee. cheque serial number. Account is debited and then the officer cancels cheque. Cheque handed over to the officer cash department for scrutiny where officer checks the date. twice counted and matched with the deposit slip. Cash detail is written on the back of the cheque. Detail on both counter file and cash receipt voucher should be the same. The cash details are written on the back of the deposit slip and are also entered in cash receiving register. account number.

If the payment is of Rs. Then the payment will be made. Otherwise the payment will not be made. -45- . 50000 the cashier can make it on its own. If the amount is greater than Rs.Bank Alfalah LTD. 50000 the cashier and cash deposit Incharge will verify the check and will sing it.

Details of these banks are then entered into the clearing schedule containing number of cheques presented and their total amount against the name of each bank. Clearing Process (Inward/Outward) Here the local Cheques are received that are drawn on BAF. verification of signatures and -46- . are entered in OBC register and handed over the Bills Department for collection. Clearing Department In clearing. Cheques of each bank are sorted and arranged branch wise. Clearing officer checks and verifies title of all the cheques deposited by the customers to confirm the good title of the cheques. Cheques are scrutinized properly and paying slips are separated from cheques. These Cheques are scrutinized and cheques for local clearing are separated from OBC. Next morning. Print out of the clearing is taken and details are attached with the cheques of each bank. This process can be inward or outward. Total number of cheques and their amount delivered to other banks and received from them are written on the Clearing House schedule branch for their payment. In the same manner. Taimoor proved so helpful. Special crossing. All the cheques are received on one counter along with the paying slips duly filled in properly containing particulars of cheques and account harder.Bank Alfalah LTD. other banks present their clearing drawn on Bank Alfalah. These are then entered in clearing register and cheques for collection. endorsement and clearing stamps are affixed on the cheques. Then total number of cheques presented to all banks and their total amount is written on the foot of that schedule. which is tallied with the clearing register. The clearing process majority involves receiving the cheques and making payments. Counter folio of 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 delivered to the respective banks through NIFT in clearing house of State Bank of Pakistan between 9:00 to 9:30AM. Mr. After proper scrutiny of cheques. All the cheques are then entered into the clearing system of the bank.

This cheque is entered into the cheque returned register and bank charges are deducted according to the schedule of charges.Bank Alfalah LTD. If any cheque is to return. If any cheque is not passed due to insufficient balance or any other reason. Officer clearing Department returns the same cheque by attaching a cheque return memo containing reason for return. if any cheque presented by Bank Alfalah in first clearing is returned. Remittances Department -47- . In the same manner. confirmation of balance in the account. 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. the Officer Cash Department pays these cheques by canceling and posting them in the system. Second clearing is called at 2:30PM to check the fate of the cheques presented to other banks in the morning. that is delivered to the same bank in second clearing.

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 of the application form. Miss. then cash is deposited by the customer along with the bank charges and withholding tax. -48- . If the customer wants to pay cash. to pay a specified sum of money to or to the order of a specified person. The need of remittances is commonly felt in today’s business. After proper scrutiny. Maliha in Bank Alfalah is the officer for Remittances Department. Cheque and application from is then given to the officer Cash Department for the payment of cheque.Bank Alfalah LTD. In remittances. Pay Order A pay order is a written order issued by a bank. drawn upon & payable by itself. he can give cheque for total amount of instrument plus bank charges. Procedure for Pay Order Application form is given to the customer to fill. following banking instruments are used:  Pay order  Demand draft  Online transfer  Call deposit receipts  Traveling cheque The procedure for dealing with all these under local as well as foreign currency in BAF is as under. Officer Cash Department posts the cheque and signs the application form in token of payment received. If the customer is maintaining his account with the branch. The main function of remittance department in a bank is the transfer of funds.

signatures of the attorneys are verified on DD and after proper scrutiny. When instrument is presented for payment.Bank Alfalah LTD. Application form is then given to the Remittances Incharge for issuance of instrument. When instrument is presented for payment. Procedure for Demand Draft Payable When DD advice is received. Instrument is then protect graphed. signatures of both signatory on the DD are verified. it is posted in the system and canceled by the Remittances Incharge after proper scrutiny. -49- . Printout is taken on the block of payment Order. He enters all the particulars of the application form in the system and computer gives an Auto Control Number to the instrument. Demand Draft A Demand Draft (DD) is an instrument. it is posted in the system and canceled by the Remittances Incharge. given to the purchaser against cash or cheque. All the particulars of the DD payable are entered in the system. and given to the customer. Parties Involved In DD: • • • • Purchaser Issuing Branch Drawee Branch Payee Procedure for Issuing DD Issuance procedure of Demand Draft is same as of pay Order. which is drawn by one bank upon another bank for a specific sum of money payable on demand. Prints out of vouchers (DD payable) are taken. Two authorized officers of the branch then sign it. It is made by the bank.

then cheque will be sent to the Collecting Agent of Bank Alfalah for that city. Cheques for local clearing are entered in Clearing Register. whereas cheques for collection are entered in OBC register and handed over to the Bills Department for collection. Instructions are given on the OBC schedule for the payment of that cheque. Contra-liability vouchers are also posted in the system. and if they do not have any collecting agent even. collection bank pays the amount through IBCA if it is the same bank or -50- . Collection All the cheques under collection are called cheques under Collection in Bank Alfalah Limited. When OBC is realized. If they do not have any branch in that city. There are two types of bills for collection: • • Outward Bills for Collection Inward Bills for collection Outwards Bills for Collection Al the cheques are received on one counter along with the paying slips duly filled in properly containing particulars of cheques and account holder. Counter folio of 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. OBC schedule is attached with the cheque and dispatched to the main branch of that city for collection. OBC number is allotted to the cheque from OBC register.Bank Alfalah LTD. when the remittance is urgently required by the remitter. online Transfer is made. then cheque can be sent directly to the drawing branch. Special crossing and bank endorsement stamps are affixed on the cheque. These cheques are scrutinized and cheques for local clearing are separated from OBCs. Online Transfer Sometimes.

Inward Bills for Collection If any other bank sends a cheque of Bank Alfalah Limited.738. 1. Main activity of clearing is performed by Head Office. it is Inward Bill for Collection.000 Rs. it is presented in the clearing for collection.986.000 Rs. If IBCA is received from the branch for the payment of OBC. which contacts other banks through SBP. certain vouchers are posted in the system.092. If DD is received against OBC. Then these cheques are sent to the Head Office Karachi.830. The process of collection starts when the cheques of Bank Alfalah Ltd are received from other banks. Bank Alfalah remits money after checking the balance of the customer account. Bills for Collection In 2007 Payable in Pakistan Payable outside Pakistan Total Rs. 1.000 -51- .964. through DD if it is another bank. which sends the cheques to SBP for clearing and get the confirmation of cheque and credit advice.Bank Alfalah LTD. 22.

Credit Portfolio These are the guidelines set down by Credit Committee regarding: • Total facilities -52- .Bank Alfalah LTD. Purpose of this policy is to set out the credit policies for the boar. structure. The operational objectives and business strategies regarding objectives. The policies are described under the following readings: • • • • • Credit principles Portfolio limits Approval Administration Monitoring and review 1. This policy statement sets out the underlying principles from which the BOD will determine the commercial credit activity of Bank Alfalah Ltd. performance and administration are also included. Credit and Advance Department Credit and Advances Department deals with the provision of loans (credit facility) to the customers. At BAF. Credit Principles It includes principles to be adopted for lending authority. credit is given on the basis of a policy made by Board of Directors and is called Credit Policy. monitoring and control on a basis consistent with Bank Alfalah Ltd. approval. 2. which will be implemented by the Credit Committee. The committee to approve direct and review commercial lending of Bank and to ensure that credit policies are adhered to and the credit operation is conducted in an efficient and effective manner.

Bank Alfalah LTD. the blocking is released from the account. 4. • Term facilities 3. Credit Monitoring The client can present his own account insurance policy as security for credit. These are kept separate to avoid theft. then they critically examine securities given by client to bank against credit facilities. Advances Following facilities in Advances Department are provided by bank: • Funded facilities -53- . valuators and other corporate bodies. his account is blocked for the same amount. When he presents his own account as security. Credit Administration The credit application when handed over to Credit Administration. which the bank is granting him. the Credit committee makes approval for the credit. Clients can also use third party’s account for getting credit. When the facility is adjusted at that time. 5. The company whose shares are used is informed that its shares are in the custody of the bank. Credit Administration keeps liaison with lawyers. Credit Approval When the terms and conditions are set and both parties are agreed. surveyors. Shares can also be kept as security in this case these are verified and duly signed.

funds are required for preparation of next consignment that is provided by post-shipment facility. Profit rate is about 15% per annum. Maximum tenor is about 150 days.Bank Alfalah LTD. Post – Shipment During export process. Profit may be 16% per annum. Pre-Shipment It provides to prepare consignment. • Non-funded facilities Funded Facilities These are the facilities in which funds like cash fund are included. This is for preparation of -54- . Maximum tenure is 150 days. The repayment is generally from sale proceeds. consignment.

Non – Funded Facilities These facilities are on: • • Letter of Credit Letter of Guarantee L/C Is Of Two Types: • • Credit Cards Bank Alfalah has credit card facility named as Alfalah Hilal cards. Sight L/C for 90 days Usance L/C for 120 days -55- .Bank Alfalah LTD.

Letter of credit: It is written agreement between importer and exporter. Adeel at BAF supervises it. -56- .Bank Alfalah LTD. In this form. which are necessary for exports. Foreign Exchange Department Foreign Exchanged Department deals within exports and imports. Beneficiary certificate DHL certificate (TCS certificate) • • • • all the conditions are given. reputation. Exporter When the bank becomes the exporter bank for a party then the market stability. Documents to Be Attached For Exports • • • Invoice Bill of lading Packing list (a) Total quantity (b) Net weight/carton (c) Gross weight/carton (d) Total net weight/carton (e) Total gross weight • Bill of exchange (original or draft) E-form: Initial document on which total export proceeding is based. financial position of the exporter is first of all checked. The bank acts as exporter as well as importer bank for different parties who are in the business of export and import. Mr.

CIF is used. Claim period: 1 year. Transport Document (Bill Of Lading. so bank issues E-form certification to exporter and he submits it to the custom officer along with E-form certification to certify E-form. It is paid according to commodity wise and bill wise. C&F (cost and freight) usually used.Bank Alfalah LTD. Airway Bill) • • • • • • When insurance is done by importer. FOB cost (free on board) CIF (cost insurance and freight) when insurance is done by exporter. Tenor (At sight) immediate payment by importer after receiving product. -57- . Partial shipment: Product is sent partially. Export Proceed Realization Certificate SBP gives rebate to exporter against export after realization. • • Form – E Form ‘M’ Certificate of Origin (Form –A) Government has provided facility to exporter in taking E-Form from any bank and he can present it to any bank for negotiation. Transshipment: Product is sent via any country E-Form Certification When export is done on C&F basis.

-58- .Bank Alfalah LTD. 5740734881 with ABN (Amro Bank New York). Certificate of Origin This certificate shows that goods are from Pakistan. USA for onward credit to BAF Islamabad. Authorized Dealer Certificate is filled for this purpose. Covering Schedule If in covering schedule.” Beneficiary Certificate If L/C requires some information as proof of anything from exporter then exporter has to present beneficiary certificate for that proof. But if requirement of L/C is to issue Bill of Lading in favor of company then shipping company issues bill of lading in favor of Exporter Company. it is given that “please remit proceed to our Karachi Office A/C no. Form of Authorized Dealer’s Certificate State Bank permits exporter to issue Bill of Lading in the favor of E-form bank.

E-FORM E-Form Has Four Copies: • • • • One for custom officer One for exporter Triplicate copy for SBP Duplicate copy for bank Bank reporting or duplicate and triplicate is done by bank. then authorized dealer certificate will be provided by bank in favor of L/C opening bank. No other institute can get involved in it.Bank Alfalah LTD. So bill of exchange is sent to refer bank and other documents are sent to L/C opening bank. Payment from Importer Bank It is the choice of importer to open L/C from any bank and the bank from which L/C is opened can also refer to some other bank for payment. If requirement of L/C is to issue Bill of Lading in favor of L/C opening bank. -59- . SWIFT It is network among all banks. Bill Of Lading Certificate from shipping company for loading documents. Custom Officer (date is given on the foot of form) should clear product.

vessel name and port of shipment is written. then his name should be mentioned on bill of lading. There should not be cutting on bill of lading without authentication. then along with the stamp of shipment on board. 1) 2) 3) 4) 5) Issue date of Bill of Lading – shipment on board. it means bill of lading is necessary. • • Revocable Irrevocable. Bank Keep In Record • • • • • • Covering schedule Invoice Packing list AWB Certificate of Origin E-form Normally bank keeps photocopy of all documents in record. Original GSP should be presented. Necessary Requirement If place of issue and port of loading is different on Bill of Lading.Bank Alfalah LTD. If TT reimbursement is not acceptable. Imports L/C is opened by the importer. Negotiable documents (original documents). There are two types of L/C. If bill of lading can be taken by the agent of Importer Company. -60- . Bill of lading should show capacity of agent.

Insurance if covered by buyer. do enter into lodgment register. Card L/C issued on basis of L/C application form. Insurance cover note. Documents for Import • • • • • • • • • • Performa Invoice signed by importer Category passbook copy attested by any bank L/C opening application filled in by the customer Import registration with export Promotion Bureau Annexure Verification of signature by S. S. When documents are received for export. -61- .Bank Alfalah LTD. Insurance policy.

Israr Ahmed is in this department. Like petrol for the car of BM. are all paid by this department. weekly. signatures all the requirements for cheques and vouchers are fully checked. These vouchers are already posted to computer by the concerned So computer also sends a report to the Accounts Department. The accounts Department have to tell that all the vouchers are posted under the right head. all is paid from the Accounts Department. This department is supervised by Mr. and annual statement. people of Accounts Department can prepare the vouchers. Daily Customer Movement List All the changes that are made in accounts of customer are shown in the daily customer movement list. etc. monthly. medical allowance. Accounts Department Most important department of bank as it is concerned with: • • • • Revenue Expenses Assets Liabilities These are the pillars of any business. Budgeting and fixed assets Employer’s benefit -62- . date. If any kind of renovation or construction or rebuilding is done. department. Following activities are performed by Account Department: • • • • Voucher preparation Preparation of daily. Amount. stamps. By using this list. stationery charges. all the vouchers that are posted during one day are sent to the Account Department next day.Bank Alfalah LTD.

Bank Alfalah LTD. -63- . • Expenditure approval.

SWOT Analysis Strengths • • • Bank has a belief in customer service Backed by strong Abu Dhabi Consortium Customer give suggestion for the improvement of bank and these suggestions are listened carefully. • • • • • Environment is friendly. Products are excellent Expansion is consistent Modernized banking (online + Internet) Fully computerized. each department has to own PC. • Manager & EVP has good coordination with staff members.Bank Alfalah LTD. Weaknesses: • Mixed Culture • New Setup • • Staff is lesser. Electronic funds transfer is only available from Alfalah to Alfalah only Opportunities: • • • • Information Technology. Internet and mobile banking Establishing Foreign Branches Local Setup Expand -64- .

Bank Alfalah LTD. Threats: • Competition by the settled bank like MCB and others • There is a possibility that in future the customers are too many to be handled by the so small number of the employees. • Governmental policies may pose unpleasant role • Global issues like America Iran war and terrorism -65- .

793 = = 79.685.88% Earning assets to total assets tell us about the efficiency of the management of the bank that how efficiently the assets are used to get the return. This shows the bank is investing more on fixed assets rather than on earning assets this shows that bank may undergo an expansion plan.945/218.541 203.26% Return on earning assets can help us about the measurement of profitability.330.758 = = 1.313. Here the ratio is declining a little bit as compared to the last year but if we see at the situation of the total assets they are increasing as compared to the last year.188/275.563. Better ratio shows the efficient utilization of the earning assets by the bank management to earn profit. Loan loss coverage ratio: Pretax income /provision for loan loss -66- .330.758/248.290/203.565.958. Ratio Analysis Earning asset to total assets earning assets/total assets 2008 2009 218.17% 1. investment securities and money market instruments. If we compare this year ratio with the previous year we can see that it is declining.Bank Alfalah LTD. Earning assets includes loans. Return on earning assets: net income/total earning ass 2008 2009 2. This shows that bank Alfalah is going to expand its business more as a lot of new branches are being opened this year.42% 81.188 2.958.

563. Equity capital to total asset: Average Equity/average total assets 2008 2009 12.67 6.793 = = 4. 2008 2009 2.44% 1. The reason behind this is inefficient use of the assets to produce profits.690 2.126/248.313. The higher ratio the more cushion is there and vice versa.945/697. This provides the owner a cushion against the risk of using Debt and leverages.67% 0.79% There is another name of this ratio it is also called fund to total asset ratio.945/275.298 = = 3.241. ROA Net income/total assets 2008 2009 0.290/402.541 7.464.Bank Alfalah LTD.31 The ratio describes the safety measure that the bank has adopted for the losses. The bank ratio has decreased a lot more than the previous years. The decrease is caused by the low provision for the loan losses.565.84% Through that ratio we measure the ability of the bank to utilize its assets to create profit by comparing profits with the assets that are generating them.685. ROE Net income/total equity -67- . Here we can see that the ratio has increased a lot as compared to the last year which shows a lot of improvement in the shares that are floating in the market.

67% 0. Here we can see that the profit before taxation has decreased a lot more.86 Rupees 3.819 = = 43. But can be said as a sustained value as compared to the initial years of the bank.84% For banking sector profit before taxation ratio is very important because large number of taxes are deducted from the income.958.Bank Alfalah LTD. 2008 2009 0.041. Book Value per share SHE/ Outstanding Shares -68- .290/5. This may be due to that the profit is reinvested and the bank is following the expansion phase.945/5. This ratio has slightly decreased. Earning Per Share 2008 2009 3.92 Rupees This ratio is more important for the stock holders and management too.584 2.84% Return on equity shows that what will be return for the share holders.563.565. Profit Before tax ratio PBT/Gross markup of income 2008 2009 2.06% 58. As we can see that the ratio has decreased. This ratio tells that how much rupees you can earn against one share that you have.

000 = = 24.945/500.464.Bank Alfalah LTD.48 24. bank staff tries to fill all the columns of AOF with their own handwriting. • This is a routine practice that in order to give personalized services to the customer. Recommendations Finally. 2008 2009 12. AOF must be -69- .126/300. These suggestions are based on experience with the bank.000 7. there are some suggestions for Bank Alfalah Limited.241. which is wrong.88 This ratio tells us the original value of the shares outstanding in the books of accounts. Book value is almost same as in the last years that show the sustained growth in the market.

which are drawn on Bank Alfalah Branch and returned unpaid in clearing.to provide prompt services. • Cheques. Cashier should be given certain powers to pay cheques up to Rs. • Audit should be held internally. title of account or any other information provided by the customer has not been written properly.Bank Alfalah LTD. which is time consuming.000/. Bankers should avoid filling in the AOF because it can create problem if the address. 50. -70- . • Under no circumstances cheque book should be given to the customer if the account formalities are incomplete. which is time consuming. are not reflected in the Statement of Account of the customers. • Similarly. These cheques must be reflected in the accounts so that credibility of the customers may be assessed. Cashier should be given certain powers to receive cash to provide prompt services. but if AOF is filled by the customer then banker cannot be held responsible for any incorrect information provided by the customer. Customer may be affected or he may claim that this information was not provided by him. there are two officers involved in cheque payment process. This can become as helpful as different banks are having this department of their own. • There are two officers involved in cash deposit process. filled in by the customers. Rather there should be an Audit Department in the branch to make audit on daily basis.

profit rates. This department prepares different deposit schemes for its customers.Bank Alfalah LTD. -71- . They make phone calls to customers and inform them about their schemes. i. In this dynamic environment. Bank Alfalah has its own full marketing Department at the Head Office.e. officers are available to provide marketing activities of their products. time to time. At each branch of bank. They make customer calls and personally visit the potential customer to convince them to invest. which are responsible for creating demand of their products. At branch level. the Operations Department follows marketing practices. every organization has its own Marketing Department. in order to increase the business of the bank. Marketing Practices Adopted By Bank Nowadays marketing of products is of prime importance for any organization. their deposit schemes and increasing the deposit of the bank.. Nowadays banks also have their marketing departments. which is responsible for creating the demand of its goods and services. Karachi.

The people of bank innovation. their Treasury Division and the Structured Finance Unit have been geared to provide specialized services to the Corporate customers. While building on their in-depth familiarity with their customers’ needs and anticipated developments in the banking industry. They will thus be accelerating their enable them distribute their products and services through most efficient and high-tech means. Conclusion BANK ALFALAH under the leadership of Sheikh Nahayan Mabarak Al-Nahayan has made significant in building of strengthening both the corporate and retail banking sectors in Pakistan. creativity. Their programme to launch real time – on line Banking Services and introduction of ATMs at strategic locations have been firmed up and it will be fully operational during the year 2001. -72- . They say that they will invest in the modern tools and substantial allocation of resources will be made to achieve this objective during the current year. BANK ALFALAH views specialization and service excellence as the cornerstone of its strategy. Based on this approach. The Bank attained Number two (2) position in terms of its Balance Sheet size amongst the private banks in Pakistan in 2000.Bank Alfalah LTD. customized services and their execution are the key ingredients for their future growth. They are aware that they have stepped into the 21st century and they must meet its challenges by acquiring the highest levels of Technology. reliability. Revenues from these activities have started yielding dividends and they expect significant growth in these areas in the coming years. the Retail and Corporate areas of their operations will continue to provide a strong and stable base to the business of the Bank.

There are significant growth opportunities for BANK ALFALAH and they are confident in their ability to grasp them.Bank Alfalah LTD.354 million. They are committed to enhancing the shareholder’s value and look forward with greater optimism to a prosperous future for BANK ALFALAH Based on the profit of Rs. 2. the Board has proposed that a cash dividend at a rate of Rs. -73- .e. 20% of share capital be distributed among the shareholders. 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 their esteemed customers.00 per share i.

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