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Internship Report (2012)
Masters of Business Administration University of Wah, Wah Cantt. Name: Yasir Khan Reg #: UW-09-MGT-MBA-035 Specialization: Marketing Telephone: +92 3135834658 Email: firstname.lastname@example.org
COMPLETED INTERNSHIP AT Bank Alfalah
INTERNSHIP REPORT SUBMITTED FOR THE FINAL EVALUATION IN PARTIAL FULFILLMENT OF THE REQUIREMENTS FOR THE DEGREE OF
MASTERS IN BUSINESS ADMINISTRATION
IT IS CERTIFIED THAT, THE INTERNSHIP REPORT AND THE WORK CONTAINED IN IT CONFIRMS TO ALL THE STANDARDS SET BY THE INSTITUTE FOR THE EVALUATION OF ANY SUCH WORK.
4. __________________ SUBMITTED TO: Mam Mehwish
To my LOVING PARENTS (especially my MOTHER), TEACHERS, BROTHERS, SISTERS, FRIENDS and all those who enabled me to make all this humble contribution towards the Transfer of Knowledge.
All praises are for Allah Almighty that has bestowed upon human being the crown of creation and has endowed him with knowledge and wisdom, after Allah, the last Prophet Mohammad (S A W W) who brought for us revelation and unlimited knowledge and civilized the barbarian human being. I am very thank full to Allah Almighty who gave me the courage to complete this complex task and to my ever caring and loving parents whose prayers helped me to reach this stage of my life. Besides, there are many people who supported me in formulation of this report and without the support of them I could never be able to complete this report successfully. In this respect I am very thank full to Mr. Saqib Zaheer (Branch Manager) and the qualified staff members of Bank Alfalah‟s Limited Haripur, who cooperated with me with their guidance at each step of my internship. They have provided me a lot of important information and knowledge about the banking operations in a very short period of time.
Internship is the integral and basic requirement of all the business study programmes in all of the business study institutes as it is necessary and basic requirement of the MBA (Marketing) degree of the Department of Management Sciences University of Wah. Because it is the practical implication of the theoretical knowledge which we have taught in our business subjects to gain further knowledge and experience about professional business activities. It equips us with the necessary knowledge, skills and values of business culture which are basic requirement of the business professional and which also helps new graduates to perform professionally as they get first step in their practical professional life. For this reason I was placed at Bank Alfalah Limited Main Shahra-e-Hazara Haripur Branch where I have done my six weeks internship. During my internship tenure I have gained a lot of knowledge about operations under the supervision and guidance of my Internship supervisor. During my whole duration I was rotated in all the different departments of the bank and was thoroughly briefed about the procedures of all the banking operations by the concerned staff. My internship report major focus on Marketing and contains all the knowledge which I have learnt there. Dear readers this report is prepared in very simple, easy and understandable way so that common and ordinary readers who do not have banking knowledge can also take benefit from this report. I hope my report will give you easy and deep overlook of all the banking operations to the readers.
Pakistan after getting its independence, did not inherit a strong banking industry and since then saw a number of events in the industry, like the nationalization of banks in the 1970‟s. However today, the banking industry of Pakistan has been growing over the past few years, mainly because of the consistent policies implemented by the Government of Pakistan, including the privatization of banks in Pakistan. Also the State Bank of Pakistan‟s, monetary policy has been very friendly toward the banking industry. There are a 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 Alfalah 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 rights to control the bank‟s operations. Since the privatization of the bank, Bank Alfalah has implement different policies to make it one of the best banks of Pakistan, which included introducing new products and services and increase its operations by opening new branches in Pakistan. Today Bank Alfalah is operating in more than 70 cities of Pakistan and operating its foreign branches in Bangladesh, Afghanistan and Bahrain. The total employees of Bank Alfalah in 2011 were 6,543, which was an increase of 25% from the past year. The increase in the number of employees joining Bank Alfalah shows that people feel confident in Bank Alfalah as a prospect employer. The financial statistics of Bank Alfalah are also as impressive as their human resource. The profit after taxation for Bank Alfalah in 2011 amounted to Rs 1,762,691 („000) and its total assets for 2011 amounted to Rs.275,685,541 („000). The stock prices and earning per share of the bank have also increased over the years. Bank Alfalah promotes its products and services through print and electronic media. Bank Alfalah also promotes itself by sponsoring different events. For Bank Alfalah, it has to compete in an industry that has grown in 2011 by almost 17% in overall assets and profits growth was 33% from the previous year in 2011. The major competitors of Bank Alfalah, pose close competition and are mainly large nationally incorporated banks and a few international banks, that all want to become the leading banks 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. I did my six weeks internship at Bank Alfalah Haripur Branch and worked in account opening department,car finance department and customer
care department. Some of the work that I did in these departments included collecting cheques, filling account opening forms. Although there were no such big problems found in the working of Bank Alfalah, there were some problems in training of the employees, incentive schemes and product innovation. Some of the recommendations include workshops for employees, job rotation, teams work to find innovative products and scholarship programs for employees. Lastly Bank Alfalah has seen a rapid growth in its activities by introducing a range of products and services and showing its presence in the country by opening new branches and in future should keep this momentum and always strive to become the best.
Table of Content
CONTENT Page #
CHAPTER # 01
Introduction of Banking Banking in Pakistan Islamic Banking Board of Directors Mission, Vision, Objectives, Slogan &Brand Personality of Organization Organizational Structure, Competitors Products & Services
19 19 10 10 11 12 13
CHAPTER # 02
Marketing Department Function of market department Marketing Strategies
Chapter # 03
Market Segmentation Strategies Product Planning & Development Positioning Positioning Strategies Pricing Strategies Distribution Strategies Promotion Strategies Basic Promotion Tools Promotion Decision
18 19 19 20 20 20 21 21 22
Chapter # 4
Structure & Functions of Sales Department Customer Service Department
Chapter # 5
Chapter # 6
Chapter # 7
Corporate, Business and Departmental level Strategies How I Feel After Studying BAL Conclusion & Recommendations References
36 37 38 39
Chapter # 01 INTRODUCTION
INTRODCTION OF BANKING:
The word “Bank” is derived from the Italian word “Bancus or Banque” which means bench, desk or counter. Because in ancient times the benches were used by the Jews for the purpose of exchanging money. In ancient times the religious temples were used as the safest place for keeping money and gold by people of that time under the supervision of the priests. Goldsmiths then acted as the financial agents in exchange of gold and valuables which provided the basis of modern banking. Today‟s modern banking system is the ultimate and step by step achievement of the ancient banking system of accepting deposits from those who have surplus and lending to those who do not have it or have little.
Banking In Pakistan:
Prior to Independence British banks controlled the banking operation in Pakistan. After independence there were no resources so that Pakistanis could start their own banking system in a very short period of time. Then at that time it was decided that “Reserve Bank of India” will control the banking operations in Pakistan. But this was not good for the best interest of Pakistan because British Government at that time distributed the reserves of the “Reserve Bank of India” between India and Pakistan with the share of 70% India and 30% Pakistan. It was a very big loss for Pakistan at that time as being a new nation with new country having few resources for survival. Then “Quaid-e-Azam Muhammad Ali Jinnah” (The Governor General of Pakistan) at that time took a step ahead and inaugurated “The State Bank of Pakistan” on July 1st , 1948 which then took control of all the banking operations of Pakistan. Bank Alfalah Limited was incorporated on June 21st, 1992 as a public limited company under the Companies Ordinance 1984. Its banking operations commenced from November 1st, 1997.The bank is engaged in commercial banking and related services as defined in the Banking companies ordinance, 1962. The Bank is currently operating through 195 branches in 74 cities, with the registered office at B.A.Building, I.I.Chundrigar, Karachi. Since its inception, as the new identity of H.C.E.B 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. Strengthened with the banking of the Abu Dhabi Group and driven by the strategic goals set out by its board of management, the Bank has invested in revolutionary technology to have an extensive range of products and services. This facilitates our commitment to a 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 today.
A separate division is a recently initiated, which operates as separate branch. It offers Shariah Compliant products through a network of branches nation wide Bank Alfalah Limited has a strong commitment to Islamic Banking with objective of operating “Shariah Based Banking” in the country. Bank Alfalah‟s Islamic Banking Division (BAL-IBD) started operations in 2003 and at its yearend reflected a modest capital base of Rs 100 million and deposits totaling Rs 113.7m. By following yearend, BAL-IBD‟s equity had risen more than 4 times to Rs 569m and the balance sheet footing had swelled to Rs 7,799 million. Deposit size had grown from less than Rs 114m to over Rs 7,229 million. It gives following products to its customers
1. Alfalah Masharaka Homes 2. Murabaha Finance 3. Aflalah Car Ijarah
Strategies of branding used by the organization Bank Alfalah has wide range of products for there customers. And for this they adopt different brand strategies to enhance there business in the market. And also strengthen the position of there brands in the country and worldwide.
Board of Directors:
H.E. Sheikh Hamadan Bin Mubarak Al Nahayan Chairman: Mr. Abdulla Nasser
Hawalileel Al-Mansoori Director: Mr. Abdull Khalil Al Mutawa Director: Mr.Khalid Mana Saeed Al Otaiba
Director: Mr. Ikram Ul-Majeed Sehgal Director: Mr. Nadeem Iqbal Sheikh Director Mr. Sirajuddin Aziz
To develop & deliver the most Innovative products, manage Customer experience, deliver Quality services that contributes To brand strength, establishes a Competitive advantage and Inhances profitability, thus providing value.
To be the premier organization Operating locally & Internationality that provides the complete range of financial Services to all segments under one roof.
o o o o To create an efficient System of banking in Pakistan. Maintain high profits. Expanding Islamic banking. Delivering every service and product less than one roof.
Bank Alfalah Slogan
The carrying bank
A sober and established, strong, empathic, professional Person; who is an extremely loyal and dependable friend and business partner, and is committed to offering comprehensive value-based Business financial solutions.
List of main competitors The major competitors of Bank Alfalah are •Meezan Bank Ltd •Faysal Bank •MCB Bank Ltd •Punjab Bank Ltd •UBL
Products & Services:
Debit Card/ Hilal card Car Financing Money Gram Agri Finance Credit Cards Online Banking
1. Debit Card/ Hilal Card:
Alfalah debit or Hilal card gives you the immediate and easy access to your current or saving account anywhere and anytime with a simple swipe of your card at millions of ATM‟S and retail shops. With the Visa Network Hilal card is acceptable at more than 1.2 million ATM‟s and 29 Million retail outlets around the world. If you have this facility then there is no need of dealing in physical cash withdrawal, just swipe your card and your transaction will be completed in no time.
2. Car Financing:
Bank Alfalah has introduced Car Financing in which you have two options, either you get the Vehicle leased or financed. There is no hidden charges Minimum down payment Quickest processing Tenure period 1-5 years
3. Money Gram:
Bank Alfalah is providing the facility of Money gram which is the person to person transfer of money that allows consumers to receive money in just few moments. Money Gram is available in over 180 countries and territories and in more than 190,000 locations worldwide, and money is handled by quality agents linked through computers who makes it sure that your money is safely transferred to the desired place and person.
4. Agri Finance (Alfalah Zarie Sahulat):
In view of importance of agriculture for the Pakistan economy and keeping in view the small farmers who have little resources for production for them, Bank Alfalah has designed “Rural Finance programmes” which is named as “Bank Alfalah Zarie Sahulat “This facility is available for short, medium and long term durations. Bank Alfalah has designed this facility to achieve following objectives Provide reliable infrastructure for Agri customers. Help farmers utilize funds efficiently and effectively. Provide farmers an integrated package of credit, supervision and technical know-how.
5. Credit Cards:
Alfalah credit card is globally accepted at all those locations which have the logo of VISA. It is accepted at nearly 29 million locations in more than 200 countries around the world and in Pakistan also. It enables you to pay for shopping, travel, entertainment, meals and much more. The features which makes Alfalah Credit card as an important product for customers are, No joining/ Annual / Renewal fee (except Platinum Card) Electricity, Sui Gas, PTCL ,Warid bills payment through 24 hour Call Center and Auto Debit instructions. SMS for card usage, mini statement, payment receipt confirmation, etc. Cash withdrawal at all 1LINK ATMs Special offer on Warid post paid connections.
6. Online Banking:
Bank is providing online banking services to its customers such as balance inquiries statement requests through automated online telephone service and online ATM services anywhere and at every place where bank exists.
CHAPTER # 02 Marketing Department
The priority banking marketing manager is responsible for the deposits of the require money in the managers referral customers accounts. Also this department connects to the big account holders and maintains good relation with them. And this propose they meet them and made meetings with them that where they satisfied with there services that the banks offers to them. And incase any problems that the customers victim than that problem would be eradicated by the following customers through meetings with them.
The Relational manager : has the responsibilities that they give solutions if the deposits of the banks down due to un-satisfaction by the customers and close an account in the particular branch. They also have the responsibilities to open a number of fresh accounts in BAL. And for this they meet the number of big clients in particular and other in general and convey them to be part of BAL. The relational manager consults the branches under his custody. And they have the authority to know info regarding bank accounts of big customers. Also they have little meetings about there business products that whether the customers get benefits or not. And want give suggestions from the operation officers for the betterment of there different products. Also they interact with the operations officers and wanted to know the behavior of there loyal customers and what kind of services they wants for them. And every month they build a report and send to the regional Head of marketing department of BAL.
Also branch is a source of retail marketing as well as for sound marketing too. Its really helps the BAL to carry there product info to other customers friends etc, and make there customers because of there good services provided to them. The marketing department of Bank Alfalah Limited also involve in operation nationwide through 283 branches and a comprehensive network of 236 ATMs. The bank‟s countrywide operations are controlled through two most critical systems, namely the web based Online Centralized Core Banking software applications having Retail Banking, Trade Finance, Corporate and Commercial Finance, Consumer Finance, Foreign Exchange & Treasury modules; and the ATM switch.
Function of market department Marketing Strategies:
It involves environmental forces around the main task. Due to these forces the traditional orientation of the Bank has become the business of financial services with a much wider focus in relation to consumer/market needs and consequent marketing strategies. However, these environmental forces can create favorable opportunities that can be translated into overall organizational goals and marketing objectives. At the second stage, the marketing mix is manipulated in order to support and implement marketing strategies and plans. The marketing managers of Bank Alfalah Ltd. have been trained and assigned the job of of all market activity. The managers have been trained in such a way that combination may likely prove attractive to chosen customer market segments.
Chapter # 3
Market Segmentation Strategies;
A market segment is a subgroup of people or organizations sharing one or more characteristics that cause them to have similar product needs. A true market segment meets all of the following criteria: it is distinct from other segments (heterogeneity across segments), it is homogeneous within the segment (exhibits common attributes); it responds similarly to a market stimulus, and it can be reached by a market intervention. Bank through market segmentation classify market into distinct subsets (segments) that behave in similar ways or have similar needs. Bank‟s managers tend to visualize fairly well defined and stable groups of customers. However, experience and practice show that market segments are often fuzzy and dynamic in structure. This fuzziness and dynamism are a function of the variability in customer needs and the actions of competitors, and the factors in the business environment that influence them. Variability in buyer behavior means that it is possible that a single buyer can be classified in more than one segment. The bank segmentation process consists of segment identification, segment characterization, segment evaluation and target segment selection. If each segment is fairly homogeneous in its needs and attitudes, it is likely to respond similarly to a given marketing strategy. That is, they are likely to have similar feelings and ideas about a marketing mix comprising a given product or service, sold ate given price, and distributed and promoted in a certain way. Bank segmentation generally segmentation conducted using demographic, geographic, attitudinal or behavioral data. The process of segmentation is distinct from targeting (choosing which segments to address) and positioning (designing an appropriate marketing mix for each segment).The overall intent is to identify groups of similar customers and potential customers; to prioritize the groups to address; to understand their behavior; and to respond with appropriate marketing strategies that satisfy the different preferences of each chosen segment. Revenues are thus improved. Improved segmentation can lead to significantly improved marketing effectiveness. With the right segmentation, the right lists can be purchased, advertising results can be improved and customer satisfaction can be increased. So with this strategies the bank identify the core segments in which they see there long lasting business with there loyal customers like business and with this they find big cities of the countries than main business markets of the particular cities where they find business and open branch there.
Product planning and development ;
In product and development they have a separate department for this work. The main purpose of product and planning is to search the needs and wants of the peoples living in the particular societies. After the market segmentation of the organization they develop different products for there customers. For example the business community wants cheap online transaction. So bank Alfalah made Alfalah Karobar Account properly design for the local business community. And for product development the supporting material that they get from branches marketing managers BDO‟s officers they also have separate department for credits and all these info are brainstorming in the R&D department of the organization and then they create products for the required customers with specification of there customers needs.
In this process bank marketers try to create an image or identity in the minds of their target market for its product, brand, or organization. It is the relative competitive comparison their product occupies in a given market as perceived by the target market. Positioning is what the customer believes bank product‟s value, features, and benefits; it is a comparison to the other available alternatives offered by the competition. These beliefs tend to based on customer experiences and evidence, rather than awareness created by advertising about or promotion. Marketers manage product positioning by focusing their marketing activities on a positioning strategy. Pricing, promotion, channels of distribution, and advertising all are geared to maximize the chosen positioning strategy. It is the aggregate perception the market has of a particular bank, product or service in relation to their perceptions of the competitors in the same category. It will happen whether or not a organization‟s management is proactive, reactive or passive about the on-going process of evolving a position. But a company can positively influence the perceptions through enlightened strategic actions. Generally, there are following strategies for product positioning:
Bank Alfalah is the fifth largest private bank of Pakistan operating nationwide with 283 network branches with the facilities of 232 ATM machines nation wide.
A critical marketing mix tool is price. Price is important since it represents the amount of money that customers have to pay for the services received and it is the only element of the bank marketing mix that creates revenue. The most important pricing in the banking system relates to interest rates; but as the government controls basic interest rates therefore the use of price as an important element in bank marketing has tended to be neglected. Bank Privatization, coupled with the introduction of new technology and the arrival of the new aggressive bank and non-bank competitors is forced a reappraisal of the use of pricing strategy. In this regard the writer noticed that Bank Alfalah Ltd has an advantage of credible bank image and on the basis of it the bank has set out particular pricing system. Hence the bank gives right to the branch managers to waive the inline bank charges of there loyal customers having monthly balance of more than 2 lacks. So this strategies acting as sound marketing strategies to attract more customers to deposits there accounts and enjoy that facilities.
In marketing, distribution is the means through which a seller makes his product available to the buyer. A channel of distribution for banking should be considered in a somewhat different manner. It can be regarded as any means of increasing the availability and / or convenience of a service that increases its use or the revenue from its use. Strategy: Special counters available to customers for to do their transactions without having to wait in the regular line. Provide the service through our network of branches throughout the country. Install six additional ATMs at strategic locations throughout the country. Introduce telephone banking to allow customers to transfer funds between accounts, perform account inquiry and pay their utility bills without visiting the bank. Perform personal banking for busy professionals, including doctors, lawyers, managers, etc. Distribution Decision: Means of delivery of bank services to customers Levels of service bank‟s customers want Impact of technology on distribution. During the early phase of the privatization, Bank Alfalah Ltd seemed to focus on two channels of distribution Bank branches: This is the most important channel of distribution for the bank as the bank is conveniently serving potential
customers and from which the largest portion of business is being generated. Following are some basic steps taken by the bank at the initial stage of the implementation.
This tool stands for the various activities the bank undertakes to communicate its products merits and to pursue target customers to use their services. Bank Alfalah Ltd has used term promotion to decide how information about the bank and its services can be disseminated. The Bank widely used (still using) the four basic promotional tools for this purpose. These are Basic Promotional Tools Advertising Personnel Selling Publicity Sales Promotion Broachers Point of Sale Service Banners
Banks paid non - personal presentation and promotion of goods and services by an identified sponsor; television and media are typical examples.
Managers use this in order to create an impression of trust, reliance, friendliness and familiarity.
These include the clocks, pictorial cheques books, gifts etc.
I must say that the bank promotional tools have enhanced the perception of the bank and its brands through increasing awareness. This awareness was essential especially when there was increasing competition from foreign banks, and other financial institutions. Strategy: Email or write to prospective customers informing them of the service. Phone prospective customers or visit them at their residents or place of business to sell the service to them. Advertise the service on our website. Develop an advertising program targeting the selected group. Promotion Decision: •Communication with customer •Persuading customers to buy •Role of advertising •Branch displays •Direct mail •Personal selling •Cold calling •Telephone selling •Sales promotions •Promotional campaigns.
Chapter # 04
Structure of sale department
Sales operations in the sales departments the whole recruit giving different services to there customers. They open accounts for there customers receipt application for there debit halal card and different types of credit cads. Giving online services to them and transfer there funds from one place to another. They made there bank drafts and transfer there cheques through NIFT. Giving financial service to them live home financing, car financing and other finance related services to them. And all record of sales and there transactions can be handled by the bank Software that is Bank Smart.
Functions of the Sales department;
Recruit a sales team from members of the staff who possess the required skills for the task. Provide the members of the team with a formal written program of the project. Provide each member of the team with a job description setting out clearly the job expectations and goals, as well as the required job-related behaviors. Train the sales team for the job. Provide the team with the necessary tools and resources, for instance, cell phones. Provide the team with incentives, such as traveling allowances and rewards for sales volumes. Develop a performance appraisal system that will allow for feedback throughout the year and will determine annual salary increments.
Types of selling;
The BAL use different types of selling services for there customers to buy those services and for this purpose they have different departments for there different selling techniques. The bank branch itself is the on spot selling techniques to attract the customers for there product. The other techniques they are personal selling in which they appraise there employees that what they do for the bank. And for this purpose the employees of the bank also attract there relatives to open an account in BAL. And for financial services they have credit and other finance department for giving the finance services to there customer. Also they have BDO‟s and relational managers who responsible for the increasing of the deposits of banks. Also they have call centers agents who call the local peoples and peruse them to buy there products like credit cards, car finance and it is known as telemarketing.
Customers Service department ;
Today customer service department is very important in the big organization like multi-national companies. They main purpose of this department is to maintain good relation with the existing customers and attract the new ones to be part of the organization. CRM field provide specialized designed for employees that serve basically to help the implementation and support the various business processes. It also helps the person in charge of the entire implementation to more effectively manage the process. It assists all the employees with the required CRM knowledge needed. Organizations can opt for the benefits of expert instructors who are experienced at teaching a range of CRM courses. Also they have RM managers whose main objective is to build good relation with the customers and find new customers. They also have advertised promotion to attract the new customers. And they also launched valuable products and update there services according to there customers needs and wants to retain them to be part of BAL.
CHAPTER # 05 Learning
I did my internship at Bank Alfalah Limited Circular Road Bahawalpur. During my whole duration of six months I have done work in the following departments.
Customer Care Car Finance Account Opening Accounts Opening Department
Most important and front line department of bank which comes under the retail/general banking. Following are the types of the accounts,
Current Account Saving Account 1. Current Account:
It is a non-interest bearing account. The minimum balance requirement for opening this account is Rs.10, 000. Furthermore there is no restriction of deposition and withdrawal of money from this account at any point of time. All the current account holders receive a Hilal Debit Card to get benefit from the ATM service of the bank. Following are the types of accounts which come under the head of current account. They are
Basic Banking Account (BBA account) Simple Current Account Alfalah Kamyab Karobar Account Thee detail on each is as under. i).Basic Banking Account (BBA account)
This account is introduced for low income people like persons with 25,000 salary and for students who cannot maintain minimum balance of Rs.10, 000 in their accounts because in this account there is no requirement of minimum balance maintenance. This account is also called as “Student Account”.
Minimum Initial deposit of Rs. 1,000. No service charges at all. Facility of ATM.
Only 4 transactions through cheque are allowed in a month otherwise Rs.58 will be charged per month.
ii).Simple Current Account:
A minimum initial deposit of Rs.10, 000 is required to open this account. Average balance of Rs.10,000 should be maintained in this account otherwise Rs.58 will be charged per month to account holder. Online service is available (on customer demand) No charges for online service.
iii).Alfalah Kamyab Karobar Account:
This account is especially for businessmen. Initial deposit of Rs.5000 is required. Average balance maintenance is according to the type of category in which the customer lies. The category and average balance maintenance in respective category are Silver Category Rs 5,000-50,000 Gold Category Rs.50, 000-100,000 Platinum Category above Rs.100, 000
2. Saving Account:
Saving account is an interest-bearing account. It has following types of accounts, Simple saving account Royal Profit Account Kifayat Account. Alfalah Mahan Amdan Account Alfalah Mahan Amdan Plus(Term Deposit)
I).Simple saving Account:
Initial deposit and average balance maintenance is Rs.5, 000. Profit rate is 5 % Profit is distributed on half yearly basis.
ii).Royal Profit Account:
Initial deposit and average balance maintenance is Rs.50, 000 for this account. Profit is distributed at rate of 5 % per year but its calculations are done on monthly basis. If there is not maintained a balance of Rs.50, 000 then the account holder will not get any profit. For getting profit there must be above Rs.50, 000 balances in account.
It is a type of saving account in which minimum initial deposit and average balance Maintenance of Rs.10, 000 is required. Maximum amount of deposit in this account is of Rs.1 million. Profit is paid at the rate of 7% per annum. If balance falls from 10,000 then no profit will be given to account holder. Profit is given on Quarterly basis. Only 3 debit transactions are allowed per month.
iv).Alfalah Mahan Amdan Account: It‟s a term deposit for three years. Minimum balance of account is Rs.100,000 with an upper limit of Rs 1.5 million. Profit rate is 10 % per annum and paid on monthly basis.
v).Alfalah Mahan Amdan plus (Term Deposit):
In this account the amount is fixed for one year. Minimum balance of account is of Rs.50, 000 with no upper limit. Profit rate is 10.5% on monthly basis.
In case of withdrawn of your money before maturity date then the profit will be distributed as follows, If you withdraw your money within 6 months you will get a profit at 5% . If you withdraw your money between 6-9 months you will get a profit at 8%. If you withdraw your money between 9-12 months you will get a profit at 9%.
Opening an Account:
For new customers who want to open an account at Bank Alfalah has to fill a “Relationship Contract”, which includes such information as follows Title of Account.
Personal information of applicant Next of Kin
This portion is important for securing the money of the customer in case of his/her death of or any incident with the account holder. By this thing the accountholder specifies and provide the information and data of the person who will be the owner of his/her money after his/her death or any serious incident with him/her. If account holder leaves it blank then bank will be the owner of his/her money. Address for correspondence
4. Type of Entity
Individual Joint sole proprietorship Public/Private Ltd Co. Partnership.
5. Nature of Account
Current Account PLS Saving Account Royal Profit Account Saving Account Others
6. Currency of Accounts
Bank Alfalah deals in five currencies and account holder must have select from them. These are PKR, USD, GBP, Euro, and JPY
7. Zakat Deduction 8. Details of other bank accounts 9. Introduced by Basic Requisites for Opening an Account for individuals/self employed persons are as follows
CNIC Company letterhead or authorization (as required)
NTN certificate (optional) Source of income (salary slip etc)
The basic Requisites to open an account for a partnership:
NTN certificate (optional) Partnership Deed Company Letterhead Partners CNIC
The basic Requisites to open an account for companies:
Article of Association Directors CNIC Memorandum of Association NTN certificate (optional) Company Letterhead
Car Financing Department
In the age of today‟s modern banking, car financing is one of the most important and selling product of all the banks including Bank Alfalah. Because it is very easy for the people to save them from paying a huge sum of money that‟s why people prefer to have finance their vehicles.
Features of Bank Alfalfa‟s Car Financing:
Tenure period ranging from 1-5 years Minimum down payment starting from 20 % No hidden charges Insurance facility Premature termination charges should be paid by the customer according to the year in which he/she terminated the contract of payments on the remaining amount.
The procedure of financing car starts when a person comes and asks for a vehicle to be financed. First thing which that person have to do is to fill an application form stating the car which he wants to be financed, its color and two references with his complete personal information regarding his profession, source of income, age etc. This is all what is required from the customer. After this bank working starts. Bank verifies all the information provided by the customer along with the verification of two references provided. After completing the verification process Bank generates the Credit Line Proposal (CRP).This proposal then sent to the Area Office for approval. After the approval from the Area office the customer will sing a legal document of this deal with Bank along with the down payment. When this process completes a quotation is sent to the car dealer for a stated car. Registration of car is carried out and Bank insured the car with collaboration of Insurance Company and car handed over to customer. After the completion of finance tenure the Bank issues NOC to customer stating that there is no obligation left to be fulfilled by the customer.
Chapter # 6 The Strength, Weakness, Opportunities and Challenges
This analysis was required in broader business environment. SWOT analysis describes the position of the organization with respect to its customers in the market Strengths are the core competencies of any organization & as far as BAL is concerned the
Core competencies of this organization are:
Compensate customer services The clients‟ perception is high Good target market having mostly branches in the commercial areas Target Achievement Policies & Procedures Controlling Standards Priorities Rewards & Benefits Job Security for the Employees favorable, friendly & Healthy Working Environment. Documentation System is so much accurate. Accounting & Banking System is Accurate & Reliable One. Wide range of networks nation wide with respect to branches and ATM machines Training system and appraise after training and giving certificates for doing that training.
Weaknesses are the lacking points which every organization must avoid in order to make its operational effectiveness.
•Hectic Working Environment •Work load. •Lack of Self Marketing Department. •Low Training & Coaching. low incentives like bonuses overtime pay etc. •Human Resource Department is not so much effective. •Appraisal is not done frequently. •Low salary packages as compared to other banks. Opportunities In fact, when we study all our weaknesses critically & deeply than we come to know that we can convert our weaknesses into strengths. So basically these are our opportunities. The opportunities for BAL are: •On the job training & coaching sessions can be conducted. •Good relation with foreign banks •Growing in deposits •E-banking
•Work sharing activities should be started so that a person who is working continuously for 9 hours can get relax. •Marketing department should be started in order to promote the name of BAL. •Appraisal should be conducted frequently so that employees get motivated & do their work as a loyal employee. •Attractive salary packages should be awarded. Threats Though Bank Alfalah has a strong footing and maintain a good number of loyal customers; still bank has threats in various sectors. When we see the possible threats for BAL, the threats are prevailing such as: •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.
Chapter # 7 Corporate, Business and Departmental level Strategies:
Corporate, Business and Departmental level Strategies:
Bank Alfalah is successfully completing its journey towards progress with the help of its specialized, skilled, highly qualified and professional management at all levels. Top management formulates the strategies in accordance with the standards formulate to achieve the desired goals and objectives. As with the passage of time and it is fact that the external business environment is very dynamic in nature so these strategies keep on changing to keep the Bank up to date. For this purpose the managerial policies which are adopted by the Bank Alfalah are as under.
Corporate Level Strategies:
At the corporate/top level there is board of directors and executive committee, who controls such important functions as determining goals and objectives, formulations of business policies and strategic planning. Corporate philosophy stresses the highest level of security, reliability and value for its client‟s money which is the core strength of the bank.
Business Level Strategies:
Top management formulates the business level strategies. Chief Managers are also the part of this management level who formulates the strategies and technical planning which determines the methods of getting the best and in time completion of jobs from its human resource. They define and interpret the objectives and goals and formulate policies to achieve them.
Departmental Level Strategies:
At this level Head of the Departments formulate these strategies. Each and every branch manager formulates the policies according to the branch setup and at each level of bank environment because he is directly responsible for the management and controlling the activities of the employees. For implementation of these policies meeting are called with the presence of Head of the Departments to get the best and efficient and desired goals behind these formulated policies.
What I Feel After Studying BAL:
I feel that BAL really follows there mission and vision. For example in there vision they wants to be a multinational bank so BAL is the multinational bang operating in different countries like Pakistan, Bangladesh and so moving to other countries as well. Secondly they say that BAL is for All kind of peoples like for business man whether they works locally or internationally, for families, for the country in which they operate, for the students, for the sports, for the needy who wants to have there own small business. And BAL is proof for it that BAL is for all. That is they have a wide range of product and services related to all kind of customers like Auto finance its for the family Alfalah Karobar account it is for the local business man Islamic banking division is setup to obey Islamic rules of business and develop corporate finance departments for the importer and exporter of the country in Pakistan. Economically it is best organization giving wide range of financial services tot there customers. They have a market niche in auto finance because of lower interest they gain from there customers. And for this they have a good financial position in the banking sector of Pakistan. They have an 8% market share in the banking sector of Pakistan. Having a profit of Rs1561555000 and an earning ratio of 1.26 in September 30 2009 for BAL. PACRA, a premier rating agency of the country, has rated the Bank AA, Entity Rating for Long Term and A1+ forth 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. Further, the unsecured subordinated debt (Term Finance Certificates) of the Bank has been awarded a credit rating of AA- (double A minus).As a management it is a marvelous organization because of giving decentralize decision making power to the lower level officers and managers. This is the key elements to be success in the modern world. There is a simple hierarchy system which does not clash the authorities to any other department of the bank. So with this there is no chance of other to interfere the departments other than there own working department. In the marketing perspective they have to adopt good strategies to build there brand equity, brand name in the banking sector of Pakistan. For this purpose they use different promotional mix to promote there brands in the market. And for after sales purchase they have build an extra CR department who really cares the customers of BAL and listen the complaints and act upon them according to the problems face by there customers. This really boosts the customers to be part of BAL. They have a drop box in all branches of BAL join which customers have independency to drop a compliant letter against the management of the branch. In this way it accelerate the management of the branch to look after there customers with a big smile on there face even there is a clash between the management recruit and the customers. In today‟s there is a slogan that “Customers are the boss” of the organization. The
reason behind is that business should be done when some one get services from the organization, If they don‟t get services from the organization than, what the organization do.
So in my conclusion I would to say that I really seeks allot of information regarding to my discipline that is marketing. Especially I seek CR techniques and retail marketing concepts. I observe the bank environment regarding there discipline there way of communication with different types of customer and there problems. And see what they relay likes and what they don‟t like. It really affects the banking system because they hate one recruit of the management and love and easily speaks the other one. I meet the quality assurance mangers and see there works and in there works they are very critical and observe the bank environment in a critical way. In short BAL have a good management team and best organize hierarchy and wide range of there brand products which Symbolize that BAL is really the Caring Bank.
Spent six weeks of my internSship in BAL Branch, Haripur. During these six weeks, I felt myself to be a part of BAL. Even, this was my first experience of working in a banking organization, but I learned a lot from this experience. Based on my experience & observation regarding the operations and policies of Bank Alfalah,
I have tried to stipulate some recommendations for further improvement.
1. Technological advancement Provide online banking facilities in all bank branches especially in the commercial areas and also ATM machines in big markets in the city like Mochi Bazaar. There isn‟t ATM machine there. It relay helps to avoid rush in bank 2. Workshop and Counseling This is done in all major cities of the country not in KPK for this purpose. With that counseling the new bankers are born in other small cities of the country 3.gives scholarship for those employees who further continues there studies to PHD level and gives incentives to them so that BAL have high management recruit in terms of knowledge which really benefits for the bank 4. There isn‟t any Priority banking department in the BAL till during my internship. So they have to develop and with this there deposit should be maximizes. 5. Launch innovative products like E-deposit bills etc. Because it‟s save the time of the customers who want be stand in lines to submit there different kind of bills. 6. All branches should have relaxation rooms and prayers rooms for the bank employees. Its really helps them and keep them.
References Sir Saqib Zaheer (BAL Haripur) Sir Zubair (BAL Haripur) Sir Qazi Murtaza (BAL Haripur) www.bankalfalah.com www.scribd.coms
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