Brand Management

Bank Alfalah Marketing Mix BBA/ITM(11) Group Members • • • •

December 5 2010

Anum Nisar 315 Hira Lone 333 Misbah Shakir 344 Wajiha Zafar 362

Report to: Ms,Perkha Khan

Bank Alfalah Limited (“BAL”)
Executive Summary
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 2008 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 2007 amounted to Rs 1,762,691 (‘000) and its total assets for 20067 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 2006 by almost 17% in overall assets and profits growth was 33% from the previous year in 2006. The major 5 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. 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.

Company Background Bank Alfalah Limited (“BAL”)
Bank Alfalah Limited is a private bank in Pakistan owned by the Abu Dhabi Group. Bank Alfalah was incorporated on June 21, 1997 as a public limited company under the

The Bank is currently operating through 195 branches in 74 cities. ▲PKR 25. 1997. Karachi Since its inception.I. the Bank has invested in revolutionary technology to have an extensive range of products and services.130 Billion (2008) Vision To be the premier organization operating locally & internationality that provides the complete range of financial services to all segments under one roof. The bank is engaged in commercial banking and related services as defined in the Banking companies ordinance.A. we have emerged as one of the foremost financial institution in the region endeavoring to meet the needs of tomorrow today. Its banking operations commenced from November 1. with the registered office at B.C.Chundrigar. Savings.B after the privatization in 1997. Type Founded Headquarters Key people Industry Products Revenue Net income Private June 1997.Strengthened with the banking of the Abu Dhabi Group and driven by the strategic goals set out by its board of management.Building. 1962. Consumer Banking etc. Credit Cards. Karachi Principal Office. We perceive the requirements of our customers and match them with quality products and service solutions.E. . Sheikh Hamdan Bin Mubarak Al Nahayan (Chairman) Banking Capital Markets Loans.Companies Ordinance 1984. Karachi Pakistan H. During the past five years.783 Billion (2008) ▲PKR 3. as the new identity of H. I. 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. the management of the bank has implemented strategies and policies to carve a distinct position for the bank in the market place.E.

Karachi.Chundrigar. Islamabad. . Bank Alfalah also expanded its network internationally by opening branches in Afghanistan. Some of the main branches are located in all of the major cities including: Lahore. with the registered office at B. deliver quality services that contributes to brand strength. Bank Alfalah has emerged as one of the foremost financial institution in the region. I. Peshawar. manage customer experience. thus providing value to the stakeholders of the bank Now 12 years after being incorporated. Kasur. endeavoring to meet the needs of tomorrow today.Mission To develop & deliver the most innovative products.I. Gawadar. establishes a competitive advantage and enhances profitability. operating through 198 branches in 74 cities nation wide.Building.A. with total employees exceeding 6000. Faisalabad. Bangladesh and Bahrain. Bangladesh and Bahrain to further improve its image as a premier banking institution Operational Analysis The bank is currently operating through more than 274 branches domestically and an international presence in Afghanistan.

Khan. the area office of Bank Alfalah I-8 Markaz is located in Rawalpindi. Gujranwala. ATM's. U. Sukkur. Different varieties of services that each branch is equipped to provide include: Branch/Retail Banking: Example: Deposits. Sargodha. a service that facilitates speedy transfer of remittances on a person-to-person basis and SWIFT (Society for Worldwide Integrated Financial Transfers).I. The area offices are responsible for authorizing its branches on providing different services to its customers. FOREX Market. D. Bank Alfalah being a member of both these .E First Gulf Bank.A. it is not possible for it to control all activities of its different branches from one main location.Quetta. Auto Loans. U.E U. Rawalpindi.A. Each branch has to first get an approval from the area office before providing any service to its customers. these two areas are further divided into different areas. so due to this reason they have divided their branches in two areas: the north and south. Securities As Bank Alfalah is operating with such as extensive network of branches. Furthermore Bank Alfalah is also operating 7 foreign branches in three countries. Sialkot. Some of banks with which Bank Alfalah has agency agreements are as follows: Union National Bank. Home Loans Electronic Banking: Example: Phone Banking. 10 each controlled and monitored by their respective area office.A. Another major part of operations for Bank Alfalah includes remittances that come from abroad and are thus considered as home remittances. Abu Dhabi.E Exchange Center. Structured Finance Treasury Finance: Example: Money Market. Remittances.E Bank Alfalah has also established relationships with other internationally renowned banks are part of Bank Alfalah list of correspondence banks. a car financing application needs to be approved by the area office before any legal documents or order for a car is placed by the bank. For example. U. for example. The total numbers of banks that are included in this list of correspondence are 170. in all major countries of the world and help Bank Alfalah in providing services to its customers. with members from all over the world. Afghanistan and Bahrain.A. Abu Dhabi. Multan. Trade Finance.E Alfalah Exchange Company. Pirmahal etc Bank Alfalah is operating with an extensive network of 198 branches nationwide that are spread allover the four provinces. Murree. namely Bangladesh. Abu Dhabi. Lockers Consumer Banking: Example: Credit Cards. Abu Dhabi. Both these services are recognized globally. a service that facilitates banks to transfer important messages or financial transfers securely and speedily to other banks. Each branch of Bank Alfalah comes under an area office.A. Furthermore Bank Alfalah is also a member of MoneyGram. Attock District. U. that is their head office in Karachi. Govt. Online Banking Corporate Banking: Example: Short/Long Term Finance. Investments. There are 9 area offices in the northern area.

which is a very positive sign. Govt. Conducive Environment The management of the bank is very much concerned with the development of and improvement of the working environment. Weaknesses: Waiver of charges Currently the middle management of bank Al-Falah is the big reason for waiver of charges. Huge Expansion Plan Due to its strong financial position the bank has undergone a huge expansion plan to compete with the existing bank all over the country and with the passage of time the branch network is expanding at a very good pace. The bank has a separate network of its Islamic Banking Division which has 16 branches across the country and this network is also expanding at a very good pace. to get the economic prosperity. opportunities and threats of Bank reiterates its commitment of providing its customers with the state of the art service SWOT Analysis of Bank Al-Falah Here we have applied this very useful technique to identify the strengths. is fully supporting the bank management due to its policy to maximize the foreign investment in the country. It has greatly increased the customer’s confidence in the bank. Fastest Growing Financial Institution Due to its successful business policies and the strong financial position the bank has achieved the reputation of fastest growing financial institution in the country. Thus the bank is getting maximum out put from its young and energetic workforce by spending comparatively less on their remunerations. The bank has state of the art and purpose built branches where all the modern technologies are provided to get the efficiency of the workforce and the customer satisfaction. the bank has an advantage over its competitors because the majority of its workforce is young and not very much over aged. weaknesses. the govt. Strengths: Strong Financial Position As we can see in the financial statements of the bank. the financial position of the organization is very sound and its profitability is in increasing. Young and Energetic Workforce As the bank is a newer one in the country. The Earning per share has been increased on a rate of about 50%. Bank Al-Falah loosing a lot of its income likes (Cheque book . Support and Encouragement As the owners of the bank belong to UAE and the type of their investment in Pakistan is a foreign investment. Highly Qualified Employees The bank has highly qualified and skilled workforce and it has succeeded to attract the best banking professionals from across the country due to its growing pace and sound reputation. Islamic Banking Division The bank is one of the pioneers of the commercial banks who have started the Islamic Banking along with their conventional banking.

of employees is lesser and thus there is an increased workload on the employees. this merger can make the bank the largest bank of the country. and to fulfill their funds requirements they don’t hesitate from getting loans . the workload is high and the employees. they lack in their experience. As UBL is the second largest bank in the country. Due to which the banks interest rate has been substantially increased which will greatly increase the banks’ profitability. Over work Load on Employees It was observed in the branch that as compared to huge business the bank is dealing in. The rapid growth of economy has resulted in the increase in the growth rate of all economic sectors especially in the banking sector which is growing at a fastest speed than ever and in future the growth is expected to increase even a higher rate. the investors are launching various types of Mega Projects especially in housing and textile the bank has a great opportunity to finance these projects at very profitable term. Inexperienced workforce As the majority of the workforce consists of young professional. And sometimes lack of experience becomes a hurdle while serving to the customers. It is the point where they feel difficulty while competing the other bank. Employees are not very much Motivated As discussed before. and it is planning to merge these two banks. Growing Trend of Islamic Banking There is a very good growth trend in the Islamic banking in the country and in the world as well. as a result a decreased motivation level of employees is observed. Opportunities: Rapidly Growing Economy At present the Pakistan’s Economy is growing on a very fast pace. Spending Practices of Mass As the Pakistani’s are known for their extravagant practices. Mega Projects Financing As the increase in overall business activity in the country. especially the credit department. Merger with UBL After the privatization of United Bank Limited. the no. have to do late sittings to complete their tasks. the management of the BAL has purchased the majority shares of the UBL. BAL has the advantage of having full fledged Islamic Banking network and the growth in this particular field can be very fruitful for the bank. Due to this the efficiency of the employees is reduced. Huge Demand for Consumer Financing The increase in per capita income and overall economy has resulted into a great demand for the consumer financing especially for home finance and car financing and it is said that this trend will increase more in future. This is a weakness of bank Al-Falah. which have a very experienced workforce.charge. The bank can earn a lot by focusing on its consumer financing sections. Increased Interest Rates The SBP has revised the interest policy and the interest rates have been linked with the KIBOR rates. statement charges. and other things) because of management. On the other hand the bank has revised its salary increments policy to decrease the increment rate. online charges.

is privatizing the state owned banks. increase in poverty etc. Thus there is a very good scope for the bank to run successful business in such circumstances. Such as political uncertainty. This trend can result into the union of some leading banks which can give tough time to the bank and it will become difficult for the bank to compete with them. The change in management may result in the increase in the efficiency and productivity of the banks. High Rate of Inflation The inflation rate of the country has gone above the 10%.from banks. the net spread for them can substantially decrease. This can result into an unfavorable situation for the bank. but there are many factors which results in the uncertain position of the economy. This can result into the failure of this project which can make it difficult for the banks to recover their funds from these defaulters. Risk of Defaults As discussed earlier that there is a trend of launching mega projects in the country and every one is involved in this trend without taking any measure for the successfulness of these projects. the govt. WTO. Privatization of Banks Due to its privatization policy. Thus it can become a threat for the bank. As a result there are permanent threats of future risks and losses for the bank. And especially when the ownership of the bank is UAE based. Threats: Uncertainty of Economy Although the economy is growing at a good pace. Trend of Mergers There is a trend of mergers among the banks to become prominent in the market and to get the maximum market share.   7PS .

partnerships. 10004. The major segments of this account are sole proprietors. students or any other individual that may want to open an account with a small amount of money. A customer with a BBA.Product (Offerings) Banking Sector has a wide variety of products that cater to the financial need of the masses. some of the major products that a bank provides to its customers and is mostly used by the banks customers are as follows: (a) General banking Checking Accounts Remittances Lockers Checking Accounts There are the main types of checking accounting that banks provide: Basic Banking Account (BBA) These accounts have no minimum balance requirement and can be opened by just Rs. companies (both private& public) and any . Current Account Current accounts are another type of account that banks offer. this account does not provide any profit on it and neither zakat is deducted on this account. The segment that this account is targeted is towards the salaried individuals that have just started their professional careers. This account can be turned into an ‘Online Account’ and its customers also receive an ATM card. does receives an ATM card but the account cannot be turned to an ‘Online Account’.

online facility available for this account All service charges are as per the prevailing ‘Schedule of Charges’ Only one account per customer will be allowed across all branches Account statement will be generated on half yearly basis Alfalah Mahana Amdan This facility is not available for business and corporate customers. These accounts pay interest annually and zakat is also deducted on these accounts.000/. the facility will be renewed automatically on maturity (i. 3 years)Alfalah Mahana Amdan TDR will be subject to Zakat. 000.000/. Other customers like companies. Debit card can be used to withdraw cash and make purchases at thousands of outlets across Pakistan which provides access to funds 24 hours a day. The main segment targeting these accountholders are people that want to save money which might include household etc.000 only. if the minimum balance for any particular day of said month falls below the amount of Rs. Profit is credited to the customer account on monthly basis.000/.000/. 1. Profit & Loss Account Profit and loss accounts are one of the basic accounts that give interest to its customer’s deposits.15.500. 50.e. No profit shall be payable for a particular month. 15 Million. 10.(included in AOF) Alfalah Mahana Amdan TDR will be issued for three years tenure with auto renewal facility of principal amount i.000.Three debit transactions are allowed in a month either through cheques or Debit Card/POS machine There is no restriction on deposit transactions The bank will issue the first cheque book of 25 leaves and a Debit card Profit will be calculated on monthly minimum balance basis and will be credited in the account on quarterly basis.with a maximum of Rs. This account does not target companies Royal profit: Minimum Deposit requirement of Rs.and maximum placement limit is Rs.e. Withholding Tax as well as any other applicable taxes . Higher returns on higher balances No restriction on number of withdrawals and on number of deposits. ALfalah kifyat Any Pakistani resident over the age of 18 can open this account. corporate etc are not eligible for opening of this account Minimum balance requirement for opening this account is Rs.1. Some salient features Minimum placement limit is Rs. An undertaking shall be obtained from the customer certifying that he/she is not availing Alfalah Mahana Amdan Term Deposit Receipt facility from any other BAL branch.000/-Expected Rate of profit is 10% Per annum(as per PLS governing rules)Profit will be automatically credited on the 1st working day of each month into customers Current/PLS/RP/BBA account Free Personal Accident Insurance coverage up to the deposit amount or Rs.other individual that wants to open their account and not earn profit or pay zakat on their balances.whichever is lower Customer can avail financing facility up to 90% of the deposit(as per banks policy)Any Pakistani resident over the age of 18 can open this account Alfalah Mahana Amdan term deposit can be maintained only at any one BAL branch with a maximum cap of Rs. 100. ATM card are also provided to these accountholders. This account is for individual/joint customers only.

regardless of the actual school fee.000/. securities and jewellery etc. beside offering competitive return on TERM DEPOSIT . Lockers Bank Alfalah provides safe deposit locker facility to its customers for safe keeping of their valuables like documents. 85 per month and borne by the bank. Alfalah Education offers a competitive return on term deposit and Rs. in the unfortunate event of the death (either through accident. a maximum deposit per customer of Rs. offers tuition fee reimbursement of children for 15 years of schooling or up to their 20th birthday. Alfalah Education Account . Benefit Schedule Benefit Payable: for 15 years or up to the child age 20 Monthly Premium: Rs.3. 100. Monthly payments set forth will be paid directly to the mother/guardian. The product will be offered as a 1 year term deposit at up to 7 % profit to be paid at maturity Premium cost for each deposit unit of Rs.000 would be Rs.500/-. illness or natural causes) of the main breadwinner (account holder) parent. Regular Zakat and WHT would apply on the deposit. 300. medium & large.1. 100. Important features of lockers facility are as follows: • • Various sizes to choose from small. In case of joint account holders. only main breadwinner account holder would be covered under the policy. . The product seems rewarding in the current scenario of increasing number of children of school going age and the general public interest in quality education of their off springs. 85 Deposit: Rs. Features Deposits can be placed in multiple of 100. Annual locker rent ranges from Rs. Premium will be paid to ALICO by BAL on monthly basis. it creates a contingency provision for our school going youth’s education in the hapless event of the death of any major breadwinner. Maximum entry point age is 55 years (renewable up to 64th birthday) Benefit payment increases with age/class of the child.Alfalah Education Alfalah Education is a Term Deposit product with No Additional Cost (NAC) education insurance cover for account holders with school going children. i.000 units with maximum 3 units allowed per depositor.e. All 3 units can be purchased for 1 child or each for up to 3 children.000 across all BAL branches.000 Remittances Through our international correspondent banking relationships we provide direct and indirect foreign currency remittance facility around the world. No evidence of insurability (medical examination/health decoration) is required.

In addition.000 Bank Alfalah’s establishments in Pakistan.• Locker rent is waived for customers maintaining a minimum deposit of Rs. travel. meals and much more.2 million in current account or above US $25. payment receipt confirmation. etc. Sui Gas. Your Bank Alfalah Credit Card is your partner everywhere and is globally accepted and welcomed at locations displaying the VISA logo. Cash withdrawal at all 1LINK ATMs Special offer on Warid post paid connections .(Refundable) Charges Rs.000/.3000/Rs.1000/ a savings account Locker Rates The annual license fees of the following sizes of lockers will be as follows: Locker Size Small Medium Large Special Key Deposit: a current account or US $50. there are a number of strategic business partnerships with leading local and international brands for purchase of home appliances at exciting Step-BY-Step (SBS) monthly installment plan with free home delivery at lowest interest rates Salient features are: • • • • • No Joining / Annual / Renewal fee Electricity.3500/- The license fees lockers will be payable in advance every year and no part of the same shall be refundable in any circumstances.000/. entertainment. (b) Consumer Banking     Credit Cards Debit/hilal card Auto Loans Home Loans Credit Cards Credit Cards Credit Cards are today’s one of the most selling product that banks offer. It is accepted at nearly 29 million locations in more than 150 countries around the globe and over 27.1000/. mini statement. PTCL and Warid bills payment through 24 hour Call Center and Auto Debit instructions SMS for card usage. Card members are facilitated through a number of promotions from time to time.1500/Rs. Alfalah VISA lets you pay for shopping.

permanent disability or death. Low Rates . it’s reassuring to know that with Alfalah Credit Cover you have no cause to worry about your monthly credit card repayments. you can protect yourself with Alfalah’s Credit Cover that offers you an unbelievable low rate of 0. Services 1.Features offered by Alfalah VISA. Additionally.000 establishments in Pakistan. While You Recover . all supplementary credit card balances will also be waived.We will Cover . Titanium Titanium MasterCard is your partner everywhere and is globally accepted and welcomed at locations displaying the MasterCard logo Gold & Silver A perfect card combination for all segments of salaried & professional individuals.50% of your outstanding amount in each monthly credit card statement as “Credit Cover Premium” to insure your credit balance. Credit Cover -Protection when you need it ! Bank Alfalah offers cardmembers a new and powerful protection against the uncertainties of life. disability or death.High Protection As an Alfalah Credit Cardmember (Basic cardmember up to the age of 65). In the unfortunate event of prolonged illness. your entire outstanding balance amount on your Alfalah Credit Card account will be waived without causing any inconvenience to your dear ones. Protection against Uncertainties In the unfortunate event of terminal illness. Platinum Card It is accepted at nearly 29 million locations in more than 150 countries around the globe and at over 27. No worry-just peace of mind. Alfalah Credit Cover has a range of features designed to protect you from the setbacks of life. at rates that are affordable.

100 of your statement balance each month.” You will be charged 50 paisas per Rs. By virtue of Credit Cover. certain protection to those cardmembers who are subscribing to Credit Cover in the event of death. we will pay the minimum outstanding payment on your Alfalah Credit Card. Always There for You Call us on 111-225-111 and we will assist you through the procedure and help you with all the necessary requirements. Convenient and Hassle-free Being automatically enrolled to the benefits of Credit Cover. Activating your card 2. Legalities The rights and obligations of any cardmember subscribing to Alfalah Credit Cover will be governed by the definitions. Our 24-Hour Phone Banking Service will make sure that you get complete peace of mind with the assurance of Alfalah Credit Cover. terms and conditions given on the back of this form. Answering your queries 3. Just dial 111-225-111 for: 1. Bank Alfalah aims to offer through an insurance company of its choice. prolonged illness.In the unfortunate event of temporary disablement due to an injury or illness for a period exceeding 45 days. Registering and resolving your complaints 4. tem 24-Hours Phone Banking Service Our well-trained and qualified phone banking team Is available to help you 24 hours a day. Reporting a lost/stolen card Zero Loss Liability . It’s just our way of ensuring that you enjoy complete peace of mind with flexibility. All on the Statement All transactions will appear under a separate heading stated as “Credit Cover Premium. permanent. you do not need to complete any forms or submit any applications for it. If you feel you do not need Credit Cover then simply call our 24-Hour Phone Banking Service on 111-225-111 to cancel.

for your convenience. you can use your Alfalah HilalCard for all your financial needs around the world. a HilalCard is a Buy Now. while traveling on any common carrier. No fees will be charged on Cash Deposit. wherever Visa cards are accepted. Just make sure that you report the lost card immediately upon discovery..The International Visa Debit Card The Alfalah HilalCard is an International Visa Debit Card which gives you an unlimited access to your current / savings account with a simple swipe. round the clock. Pay Later option. combined with the wide reach of Visa Network. Alfalah HilalCard CARRY YOUR BANK ACCOUNT WITH YOU WHEREVER YOU GO WITH ALFALAH HILALCARD.! Alfalah HilalCard is the revolutionary.all you need to do is open an account in any branch of Bank Alfalah Limited • No PIN required for Retail Transactions • Accepted at more than 1 Million ATMs and 29 Million retail outlets around the world. Difference between hilal card and credit card Put in simple terms.5 Million on Alfalah VISA Gold Card in case of an accident. You are covered for all fraudulent charges made on your card as soon as it has been reported lost to us. Pay Now option while a Credit Card is a Buy Now. all your billing will be in PAK Rupees. It is applicable only if the tickets are charged through Alfalah VISA card. This single card brings just about everything within your reach. All Billing in Pak Rupees Whether you make transactions in Dollars or any other currency. locally and internationally. Alfalah HilalCard . You are completely secure against loss/theft after the card loss has been reported to us. at millions of retail shops and ATMs.. Alfalah HilalCard allows the following facilities: . Now. Competitive edge Why Should you apply for the Alfalah HilalCard? • No Interest • No Minimum Income Requirement . worldwide. security and convenience. Comprehensive Travel Protection Alfalah VISA offers a comprehensive cover up to Rs. Bank Alfalah ensures that you never have to worry about it.If you ever lose your card. 3. new-age form of cash that provides you greater freedom.

Renovate d. Pay year insurance premium in advance {at the time of down payment and the remaining in the subsequent equal monthly installment.for brand new cars. Minimum down payment.18 year and above} to avail the financing facility and get the car registered in their names as well. Security Hypothecation of vehicle in the name of Bank Alfalah Limited.Financing limit ranging between Rs. Corporate & Individual Car Leasing BAL’s recently introduced car leasing facility for individuals and corporate sector has set new dimensions for the product. Buy Your Home. Easy Transfer . Insurance Renowned and reliable Insurance companies are offering the competitive rates of insurance. No hidden charges. Tenure period ranging from 1 to 5 years. Start it together e. 200. Backed by a customer maintained Current/Savings account. 2000. Build Your Home c.• • • • No monthly repayment. b. Repayments Easily affordable installments on monthly basis in the form of post-dated cheques will set you free of depositing your rental cheques every month. Your limit is your balance Auto Loans Features Quickest processing. You Can Act As A Co-Borrower Acting as a co-borrower will enable your family members {spouse.000/to Rs. Complete repayment at any point of time. Balance transfer facility {BTF} for existing as well as new clients from other Banks. Now you are provided with the option of either to get the vehicle leased or financed. Financing of all brand new locally assembled vehicles and used cars.000/. No interest charged. Home Loan a. children.

such as privatization. Simply apply for financing of up to Rs. we will provide up to 60% of the value of the plot that you have selected to purchase Payment period ranges from 3 to 20 years. Agri finance Structured Finance Department comprises a team of hand picked professionals. repaying your home finance will not make you break into a sweat! Transfer up to 100 % of the existing finance c) FINANCIAL SERVICES 1. SFU has been successful in sourcing and participating in a number of prestigious transactions involving large amounts. Mergers & Acquisitions (M&As). IPOs and restructuring. Lease Finance 5. During the past few years. for a financing of up to 20 years. Structured Finance 2. and principal repayment starts after the end of moratorium period Home Start is specially designed for young professionals to own a quality asset. domestic & international institutional investors in innovative financing including underwriting & private placements. We will provide up-to 100% of the construction cost enabling you to say good-bye to rent forever! Even if you don't have a plot. Some of the value added services offered by SFU include the following: . Renovate You already own a home. Payment period ranges from 3 to 20 years Build Your Home You own a plot but need financing to construct a home that excites everyone in your family! No problem. multinational corporations. so that you can realise your dream and enter the reality of owning a home!. the golden opportunity for someone starting a career to buy an already constructed housing unit early in life! We offer a moratorium of up to 3 years in principal payments. 3. The team’s expertise is well known in the marketplace with its capability to assist public & private sector entities. You service only the mark-up element initially. domestic listings. dedicated to syndicated loans and structured products.We will provide you up to 80% of the purchase price of the property. Easy Transfer Does your existing installment on a home finance leave you with nothing to spend? You need not worry any more because we have genuinely attractive rates and flexible payment options that could leave more funds with you each month.Buy Your Home With this facility. With our Home BTF. you no longer need to just dream about the home you want for yourself and your family . SME 4. Trade Finance 3.The scope of SFU’s activities also encompasses advisory assignments. major financial institutions. but need extra space for a growing family or want to see some rooms get a new look.50 million or 40% of the surveyed value of your home and get yourself the extra space! Start it Together The crown jewel of our Home Finance scheme.

Accomplishing something for the first time requires a special focus. which enabled us to undertake a healthy quantum of foreign trade business. bringing the total number over 170. Large international banks. in the coming year. Of these relationships. during the year extended us unqualified support. our bank will not only continue to review its efforts on existing correspondents to make the relationship more beneficial. through both asset building and income generating aspects 2. which is adequately compatible with our trade flows. Our persistence during the past four years allowed us to make significant inroads into the arena of correspondent banking. Our correspondents. the top financial institutions in the world. . agreed to enter into relationship. During 2002 we added 81 banks to our network of correspondents. In our endeavor to do so. There are many challenges ahead for the bank. we successfully surmounted problems and difficulties arising out of issues relating to weak economic conditions of the economy and a continuous deteriorating status of country risk. SFU is envisaged to supplement the enhanced profile and profitability of Bank Alfalah Limited through its value added services. The incertitude and skepticism of the international banking community towards financial institutions from emerging markets remained intact. but will also add more correspondents to establish a comprehensive international networking to facilitate our customer’s transaction as well as the Bank’s proprietary needs. there are now several banks that rank amongst. Trade Finance (foreign trade and corresponding finance) Inspired by a challenging spirit and an unyielding desire to create a sound and reliable network of correspondent relationships. Our geographical coverage now extends to over 100 countries. after critically evaluating us. the bank has placed great emphasis towards it growth.• • • • • • • • • Loan syndication Public floatation of Term Finance Certificates (TFCs) and equity Private placement of Term Finance Certificates (TFCs) and equity underwriting Guarantee syndications Financial restructuring Mergers & Acquisitions (M&As) Fostering joint ventures Privatization – Sale side and buyers side advisory Structuring new financial instruments In future. It demands foreseeing possibilities.

SME Small and Medium Enterprise (SME) means an entity. service or manufacturing) with net sales not exceeding Rs 300 million as per latest financial statements. (b) A manufacturing concern with total assets at cost excluding land and building up to Rs 100 million.We have provided against the list of correspondents their world and country ranking. simplification of procedures. We shall continue to open new accounts in various currencies based on our trade flows and business requirements 3. To accomplish this resolve. we offer working capital finance (Rs. 10 million) to SME’s at highly competitive rates. (c) Any concern (trading. explore opportunities for developing structured product programs for SMEs. We are in the process of rationalizing our current nostro account relationships. ALFALAH KAROBAR FINANCE Bank Alfalah’s first SME product Alfalah Karobar Finance is a running finance facility based on projected cash flows. An Individual. These ranking have been taken from The Bankers Almanac – July 2001 issue. Bank Alfalah started a separate department at the Head Office level in early 2004. The product is available to SMEs through our 86 branches in 38 cities.0. Bank Alfalah took another step towards addressing the needs of the industry by introducing Alfalah Milkiat Finance. the SME Department is supported by 86 dedicated officers in 57 branches of the bank who are nurturing valuable relationships in the SME sector. can also be categorized as an SME.5 million to Rs. We have a team of professional credit officers who provide expert financial advice along with customized packages to a diverse range of business clientele. Realizing its corporate social responsibility and carrying forward the image of "The Caring Bank". and reduction in turnaround time and customer friendly service. introduce the concept of Dedicated SME officers and finding market based solutions to fill the financing gap to this important and under-served business segment. which does not employ more than 250 persons (if it is manufacturing / service concern) and 50 persons (if it is trading concern) and also fulfills the following criteria of either ‘a’ and ‘c’ or ‘b’ and ‘c’ as relevant: (a) A trading / service concern with total assets at cost excluding land and building up to Rs 50 million. The SME Department was established with a mandate to foster SME finance at BAL. AMF is aimed at strengthening the Small and . Under AKF. ideally not a public limited company. if he or she meets the above criteria.We would like to emphasize that correspondent arrangements do not necessarily imply the existence of account relationship. Bank Alfalah believes in innovation.

technical know-how and Credit for their multifarious activities through timely. renovate or expand their business premises. 2. 20 million for the purchase. the client (lessee) has full use of the asset. 3. it allows the lessee to use the funds for other profitable purposes which otherwise would have been tied up in case of immediate payment for purchase of the asset The lease finance facilities are available for a variety of assets (imported/local) conforming but not limited to the following categories 1. Lease finance provides a significant source of funds for companies to acquire or use assets. Medium and Long terms. which has enabled it to enter the world of industrial investment in Pakistan and on the international scene. The product is designed to cater for multiple financing requirements of our farming sector. 0. Vehicles (Private & Commercial) Plant. It is the originality of the leasing techniques and its economical advantages. affordable and attainable modes to suit farmer requirements. Lease finance In modern days leasing has now become an economic and financial reality of primary importance. renovation and expansion of business premises Alfalah Milkiat finance Alfalah Milkiat Finance (AMF) is a unique long term financing facility offered to SMEs to purchase. The ownership of the asset is vested with the Bank (lessor) and in return for rental payments. BANK ALFALAH ZARIE SAHULAT is available for Short.5M up to Rs. It is being offered keeping in mind requirements of the small business owner who needs to take his/her business to the next level 3. Bank Alfalah Limited Strategy is to focus on following Objectives: . distinguished and specialized products for agriculture sector. Machinery and equipment CNG Equipment Generators(Industrial & Commercial) 4. Leasing provides additional earning opportunities to acquire assets and to get the inflows simultaneously out of the operations of the same assets.Medium Enterprises viz a viz their business premises. BAL Branches are designed to help the farmers with expert advice. Agri finance Bank Alfalah Limited acknowledging the vital role of a agriculture in the economic development of Pakistan has designed Rural Finance Program named as "BANK ALFALAH ZARIE SAHULAT". We are caring our customers through chain of complete. Alfalah Milkiat Finance offers comprehensive and flexible financing packages from Rs. 4. Being a medium to long term mode of financing.

Foreign Exchange Market • • • Active trading in ready and forward USD/PKR. • . Forward – Forward foreign exchange rates of USD/PKR. Active quotations of foreign exchange rates in fifteen major currencies. (d) TREASURY AND INVESTMENT  Money Market  Foreign Exchange Market  Investment  Government Securities  Custodianship  Financial Advisory Services Money Market • • • • Short term money market inter-bank trading. Bank Alfalah Limited is committed to make dreams come true by making Pakistan's Rural Economy healthier and stronger BANK ALFALAH'S ZARIE SAHULAT offers finance facilities covering entire spectrum of Farm and Non-Farm activities both for production and development purpose. Provide farmers an integrated package of credit.• • • Provide reliable infrastructure for Agri customers. Help farmers utilize funds efficiently and effectively. Forward – forward inter-bank money market trading. Information in respect of prevailing rates of most of the currencies of the world for corporate clients and individuals. supervision and technical knowhow. Money market linked lending to and borrowing from corporate clients. Active Treasury Bills trading in secondary market. We offer following wide range of Agri Finance Products to encourage farmers to increase farm production.

Custodianship • Investment Securities Portfolio Accounts of Customers for holding on their behalf Treasury Bills. it would be quite unfair to limit Islamic Banking to elimination of Riba only. While elimination of these objectionable aspects in a transaction is indeed a critical aim of . Active investment in Certificate of Investment (COIs) Active investment in Terms Finance Certificates (TFCs) Government Securities • Efficient service for individuals and corporate clients for buying and selling govt securities on their appropriate requests. Briefing on current information available in market in respect of foreign exchange rates of major foreign currencies (e) ISLAMIC BANKING The thrust for Islamic Banking is founded on the desire to submit to the Divine Instructions on all transactions. particularly those involving exchange of money for money. Pakistan Investment Bonds. JPY and CHF. GBP. However.• Active swap trading in USD/PKR and other major currencies such as EUR. Riba is but one of the major undesirable elements of an economic transaction. Investment • • • • Active Investment in treasury bills (TBs). the others being Gharar (uncertainty) and Qimar (speculation). Financial Advisory Services • Briefing on current information available in market in respect of prevailing rates of USD/PKR. Active Trading in Pakistan Investment Bonds (PIBs).

In Pakistan. let alone make its presence felt in Muslim-minority countries. fair and just practices. but also fosters ethical. A standard complaint against Islamic banks is that they do not have the same variety of financial instruments as found in conventional banking. Though valid to an extent. Islamic Banking is less than 3% of the Banking sector. its competition against an entrenched system of banking and the constraints within which it must operate. Many blame Islamic Banking’s small share against conventional banking to a smaller portfolio of products. in no single country is the volume of Islamic banking more than a third of the entire sector. is free of such limitations. By normal standards in a time span that is less than half a century it could have hardly been expected to establish foothold in Muslim world. and while it may not have the latter’s plethora of financial products. From a humble beginning in a small village in Egypt in the late 60’s. Still there is much ground left to cover. it has spread to the four corners of the world. therefore. Islamic Banking is. Even in the Gulf states.A key element of Islamic economics is distribution of equitable rewards to the different factors of production. and quite often the principal feature itself. its repertoire of Islamic financial products is steadily . Yet such has been its phenomenal rate of growth that not only is it taking firm roots in its homestead. seen as a lynchpin to achieving the economic and social goals of the Islamic economic system. this popular jeremiad needs to be seen in the perspective of Islamic Banking’s brief history against more than two centuries of conventional banking adopted in full force across the globe. Islamic banking is still growing at more than twice the growth rate of conventional banking worldwide. From this springs an important distinguishing feature of Islam wherein Islamic financing is always based on illiquid assets that have intrinsic value. Conventional banking.Islamic banking system. but is also attracting genuine interest among the standard bearers of conventional banking and in swathes of land where Muslims are a small minority only. At the heart of Islamic Banking is a system of commercial transactions that not only provides Halal modes of commercial transactions by avoiding that which is obnoxious and objectionable. Islamic financing: Asset-based financing A key feature of Islamic banking is that unlike conventional banks which deal primarily in money and financial securities. Notwithstanding. where it has a larger footprint. Its earnings are unconcerned with the economic fate of its lending. Profit to Islamic financing is generated through bonafide sale of these assets. it is by no means its ultimate objective. Islamic economic system seeks system of Redistributive justice where concentration of wealth in a few hands is countered and flow of money into economy is fluent. A Perspective: The history of Islamic banking from its recorded inception is less than 40 years old. Islamic financing is related to an asset that is a feature of the transaction. on the other hand. It lends money and makes its earnings through this act of lending.

the Islamic bank is obligated to inform the client of the exact cost incurred in the purchase of the asset and the margin of profit incorporated in the sale price. while retaining the ownership of the asset. Mudarabah: Like Musharakah. Goods paid for in advance by the buyer are delivered by the seller after an interval of time. Following that. Istisna: Manufacture of a specific product against precise specifications by a manufacturer for delivery to buyer. Musharakah is a contractual relationship formed through mutual consent of the parties for sharing of profits and losses in a joint venture. Assets in the venture are jointly owned in proportion to each partner’s contribution. property. Whereas all partners in Musharakah contribute capital. Basis for rentals can be fixed as well as floating. The client pays periodic rent to the bank for the use of the asset. Islamic Products in BAL-IBD’s portfolio are illustrated in terms of their features. Mudarabah is also a form of partnership. The selling price once agreed cannot be changed even when the client fails to pay on the agreed date. Salam: Salam is a contract of advanced payment against deferred delivery of goods. Upon sale of the asset. however. are incurred in proportion to each partner’s investment. Proportions for sharing profit are decided upfront. Murabaha: Murabaha is a non-participatory mode of Islamic financing where the bank sells the asset required by its client to the client on cost-plus basis. Losses are incurred solely by the partner contributing capital. The bank transfers the right of use of the asset to the client.increasing. It is necessary that the price of the product . In the following space. Ijara: Under this facility a client may take on rent. The asset is first purchased by the bank and the bank incurs the risk of any loss or damage to the asset as long as the asset remains under its ownership. Payment by the client of the sale price may be deferred in which case it would become Muajjal. under Mudarabah partnership is formed between provider of capital and provider of expertise or human resource. The other one being Mudarabah. Islamic Bank representing share of its depositors invests funds in the joint venture alongside other investor. Losses. The profits are shared in a pre-agreed ratio. vehicle or any other real asset belonging to the bank. The Seller receives in advance fully paid price of the goods at the time of contract undertaking to deliver the goods specified by the buyer at a future date. Principal Islamic Instrument Musharakah: Musharakah is one of the two ideal modes of Islamic financing. Any change is rental may be made through mutual consent. principal Islamic instruments are briefly described to acquaint the reader with their fundamental aspects.

.and product specifications are fully agreed upon by the manufacturer and the buyer. and that the material required for manufacture is arranged by the manufacturer.

Annual charges for the lockers are as follows: Small Medium Large Rs 1. Import Murabaha Finance Full range of services related to imports e. Lockers are available in three sizes – small. Deposit size had grown from less than Rs 114m to over Rs 7. PERSONAL BANKING Personal Accounts: Bank Alfalah – Islamic Banking Division (BAL-IBD) offers Current. By following yearend.799 million. Corporate banking Murabaha Finance • Types of Murabaha: Local purchases: For purchase of locally available goods Imported goods/commodities/assets Mode of repayment: Immediately in cash On a mutually agreed future date. Contract registration.000/Rs 3.000/Rs 2.Spot Murabaha (Import) Deferred Sale Murabaha • Trade Finance Imports Letter of Credits. Savings and Term Deposit facilities to its customers seeking personal banking relationship on-line cash deposit facility at all branches of Bank Alfalah On-line transfer facility between all branches of BAL-IBD Remittances: Foreign and local remittances are both available. Foreign remittances are available in the following currencies: US dollars.PERFORMANCE: 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 totalling Rs 113.g. Pound Sterling and Euro. medium and large.000/- Lockers are available to account holders and carry an insurance 2. Import bills for collection. 1. BAL-IBD’s equity had risen more than 4 times to Rs 569m and the balance sheet footing had swelled to Rs 7. Locker services: Locker services are offered at select branches.7m.229 million. Shipping Guarantees and Advance payments against imports Exports .

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