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Bank Alfalah Limited Is A Private Bank Owned by The Abu Dhabi Group. Bank Alfalah Was
Bank Alfalah Limited Is A Private Bank Owned by The Abu Dhabi Group. Bank Alfalah Was
Introduction
Bank Alfalah is the fifth largest private Bank in Pakistan with a network of over 600 branches in
more than 200 cities across Pakistan with an international presence in Bangladesh, Afghanistan,
Bahrain and a representative office in the UAE. Bank Alfalah Limited is owned and operated by
the Abu Dhabi Group. The International Finance Corporation (IFC) of the World Bank partnered
with the Bank Alfalah Limited in 2014, and holds a 15 percent stake in it.
The Bank provides financial solutions to consumers, corporations, institutions and governments
through a broad spectrum of products and services, including corporate and investment banking,
consumer banking and credit, securities brokerage, commercial, SME, agri-finance, Islamic and
asset financing.
After a few years, the bank introduced its new identity of H.C.E.B after the privatization in 1997. The
management of the bank had implemented strategies and policies so the bank would become a major
player in the market. With a partnership with the Abu Dhabi Group the position of the bank became
stronger which allowed the bank to invest more in technology to increase its range of products and
services
On the 16th of May, 2005 Bank Alfalah formally took over the Bangladesh operations of Shamil
Bank of Bahrain for US $17.88 million and renamed it to Bank Alfalah. This was the first branch of
the bank outside Pakistan
Corporate Setup
Bank Alfalah Limited is a private bank owned by the Abu Dhabi Group. Bank Alfalah was
incorporated on June 21, 1997 as a public limited company under the Companies Ordinance 1984. Its
banking operations commenced from November 1, 1997. The bank is engaged in commercial
banking and related services as defined in the Banking companies ordinance, 1962.
The bank introduced commercial banking and related services as defined in the Banking Company’s
ordinance, 1962.
.
Profile of Company
Vision
To inspire and empower people to do things differently and shape their own path in life and business.
Mission
We look at the market with fresh eyes to find new opportunities and seek new ways of enabling our
customers to succeed and advance the world of finance.
Bank Alfalah Limited is incorporated as a public limited company on June 21, 1992, under the
Companies Ordinance 1984 and listed on Pakistan Stock Exchange Limited
License Number and Date: BL-8 issued by State Bank of Pakistan on 1st October 1992
Telephone: 32414030-10;
UAN: 111 777 786.
Fax: 32461275
SLOGAN
Let’s look ahead to a brighter future together
CHAPTER 2
Management
Bank Alfalah is proud of its Human Resource, as almost all the employees have been hand
picked by the management. However, in this section, I would discuss those people who are
responsible for hiring such a bright staff and establishing such a magnificent bank. They are the
higher management of Bank Alfalah Limited.
BOARD OF DIRECTORS
His Highness Sheikh Nahayan Mabarak Al Nahayan
-- Chairman
His Highness Sheikh Nahayan Mabarak Al Nahayan is a prominent member of the ruling family
of Abu Dhabi, United Arab Emirates. Currently, His Highness is UAE Cabinet Member and
Minister of State for Tolerance. Prior to his current responsibility, he served as Minister of
Culture and Knowledge Development; Culture, Youth, and Social Development and Minister of
Higher Education and Scientific Research. Besides his ministerial responsibilities, he has been
playing a leading and distinguished part in the educational advancements, focusing on the role of
education in achieving development and progress. His Highness owns substantial business
interests, hotels and other investments in UAE, Pakistan, Africa, US and Central Asia. His
Highness also holds various offices as Chairman and Director at Board and Trusts along with
Patronship of various local and foreign organizations and affiliates. His direct and indirect
business interest spread throughout various industry sectors such as banking, telecom, insurance,
hospitality, healthcare, construction, project financing and investment management. Moreover,
he supports many charitable institutions and devotes special attention to the disabled children as
the Honorary President of Abu Dhabi Future Rehabilitation Center, formerly known as Future
Center for Special Needs. His Highness is also recipient of Pakistan's highest civilian award, the
“Hilal-e-Pakistan”, which was conferred upon him in 2005 for his contribution to the economic
growth of Pakistan. His Highness received his education from the British Midfield School until
the high secondary level before joining Magdalen College at Oxford University-UK.
MANAGEMENT
Nauman Ansari
-- Director & CEO
Aasim Jawad
-- Group Head-Strategy, Transformation & Customer Experience
Anjum Hai
-- Chief Financial Officer
Bilal Asghar
-- Group Head Corporate, Investment Banking & International Business.
Hafsa Abbasy
-- Group Head-Human Resource & Learning
Haroon Khalid
-- Group Head Compliance and Control Group
Khawaja Muhammad Ahmed
-- Group Head Operations & Corporate Services
Mehreen Ahmed
-- Group Head, Retail Banking
Mohib Hasan Khan
-- Chief Information Officer
Muhammad Akram Sawleh
-- Company Secretary, Head Legal & Corporate Affairs
Dr. Muhammad Imran
-- Group Head, Islamic Banking
Muhammad Yahya Khan
-- Group Head-Digital Banking
Syed Ali Sultan
-- Group Head-Treasury & Capital Markets
Tahir Khurshid
-- Group Head-Audit & Inspection
Zahid Anjum
-- Group Head, Special Assets Management
Faisal Rabbani
-- Chief Risk Officer
Muhammad Maqsood Ali Usmani
-- General Manager Corporate Services
Auditors:
EY Ford Rhodes Chartered Accountants
Legal Advisor:
Mandviwalla & Zafar (Advocates and Legal Consultants)
Departments
The following departments are under the head of Bank Alfalah Limited. These departments are
following the approaches of continuous learning and for development of organization and its
procedures and services. These departments are based on the departmentalization, every
department has its own work specialization, chain of command, span of control is narrow in each
department but its not permanent its vary according to situation, all department are
centralization/decentralization according to situation and on formulation.
The departments are as under:
• Clearing Department
• Remittance Department
• Credit Department
• Accounts Department
• Foreign Trade
• CLEARING DEPARTMENT
Clearing means collection of cheques received from the customers but drawn on other banks.
Receiving the instruments deposited by customers, posting the amount of instruments in credit of
customer’s account. If cheque returns from the concerned bank, the customer account is debited.
Crossing stamp is put on the instrument and slip given to customer on receipt of the instrument.
Clearing stamp and “payee account credited” are put on the instrument and the voucher. NIFT
has provided this facility. Clearing house facilitates different banks, in one city, to get their
cheques drawn upon other banks to be cleared. Cheques lodged in clearing constitute in clearing
constitute two types of clearing:
• Outward Clearing
• Inward Clearing
• Outward Clearing
When cheques, TC’s and other negotiable instruments drawn upon other banks like NBP, Faysal
Bank of the same city (as Lahore) are presented in Bank Alfalah to deposit them in the
respective payee’s accounts, these instruments are lodged in outward clearing (o/w clg) of
Alfalah bank.
Procedure of Outward Clearing
Inward Clearing
Inward clearing means cheques drawn on BAFL branch and presented by other banks. In inward
clearing BAFL branch acts as paying banker. After realization of inward clearing, banks
deposits are decreased as bank makes payment to other banks from the balances held by the
branch. This realization of inward clearing is also referred to as responding to the clearing.
Cheques and other negotiable instruments (PO, DD, PS, CDR etc.) drawn on Bank Alfalah, sent
by other banks, constitute the inward clearing of Bank Alfalah.
Procedure of Inward Clearing
REMITTANCE DEPARTMENT
The Remittance department deals with the transfer of money from one place to another. Funds
transfer facility or remittance of funds is one of the key functions of the banks all over the
world. Remittances through banking channels save time, costs less and eliminate the risks
involved in physical transportation of money from one place to another. Bank Alfalah transfers
money in the following ways.
• Pay Order
• Demand Draft
• Mail Transfer
• Telegraphic Transfer
• Pay Slip
• Call Deposit Receipt
• Letter of Credit
• Traveler’s Cheque
• Demand Draft
It is used for payment outside the city. It is written on the name of head office. Accounting entry
by drawing branch. When the customer purchases a draft, the drawing branch sends the advice (a
copy of DD) to the drawee branch and the original copy of DD is given to the purchaser. On the
arrival of advice the drawee branch debits HO account and credits the DD payable account.
When the customer comes with the original DD to the drawee branch, his account is credited by
debiting the DD payable account.
• Pay Order
Payment Orders are issued for the money transfer with in the city. Pay order is made for local
transfer of money. Pay order is the most convenient, simple and secure way of transfer of
money.
• Mail Transfer
A Mail Transfer is a form of remittance in which the amount remitted by a customer or a non-
customer is directly credited to the account of the beneficiary with another branch. Move your
money safely and quickly using Bank Alfalah Mail Transfer service. And Bank Alfalah also
offer the most competitive rates in the market. They charges Rs 50/- exchange rate and RS 75/-
postage charges on issuing mail transfer. When the money is not required immediately, the
remittances can also be made by mail transfer (MT). Here the selling office of the bank sends
instructions in writing by mail to the paying bank for the payment of a specified amount of
money. Debiting to the buyer’s account at the selling office and crediting to the recipient’s
account at the paying bank make the payment under this transfer.
Telegraphic Transfer
Telegraphic Transfer is a form of remittance, which is advised by telegram, telex or fax
machines. The fundamental principles of such transfer are otherwise identical with the Mail
Transfer. It is the message, which is sent from one branch to another on the order of payer to
payee through wire. It is one of the quickest means to transfer fund through the use of
telex/fax/internet or cable.
ACCOUNTS DEPARTMENT
Opening of account is the most important department of the Branch as this is a contract between
the customer and bank. All future transaction/operation are carried out as per this contract and
any deviation may jeopardize the bank’s interest. The opening of a new account is the
establishment of customer banker relationship. By opening an account at a bank, a person
becomes a customer of the bank. The customers can open following accounts:
• Current Account (CD A/C)
Account Opening
When a client comes to the bank, and makes a request for opening of an A/C. The officer says
that first fill up a prescribed application form. If he/she wants to open a PLS A/C, then he/she
has to fill a form according to the account.
Requirements
• ID Card of applicant
• ID Card of father, mother, brother, sister, husband or wife
• Student card (if applicant is student)
• Two photos for illiterate person or those who use Urdu signatures
• Documents Attach with A/C Opening Form
• Account Opening Form
• Specimen Signature Card
• Zakat Exemption Form (for non-muslims)
• Deposit slip
• Requisition form
• Issuance of Cheque Book
After opening an A/C with the bank, the A/C holder once again makes a request in the name of
bank for the issuance of a cheque book. The A/C holder mentions title of A/C, A/C number, sign
it properly and mentions the no of leaves he requires.
CREDIT DEPARTMENT
The bank is profit seeking institution. It attracts surplus balance from the customer at low rate of
interest and makes advances at a higher rate of interest to the individuals and business firms.
Credit extensions are the most important activity of all the financial institutions, because it is the
main source of earnings. Advances department is one of the most sensitive and important
department of the bank. The major portion of the profit is usually earned through this
department. The job of this department is to make proposals about the loans; the credit
management division of head office directly controls all the advances. The advances Department
receive application from intending borrowers. After receiving application the advance
department processes it further. After analyzing and detailed investigation, they decide whether
to approve the loan or not. Some loan approvals are made by the Manager of the branch within
his powers as prescribed by the bank’s higher authorities, while some loan applications are
submit to higher authorities for their approval.
Some advances are of the following nature
• L/C dealing.
• Foreign currency accounts dealing.
• Foreign Remittance dealing.
L/C Dealing
Bank Alfalah is committed to offering its business customers the widest range of options in the
area of money transfer. If you are a commercial enterprise then Bank Alfalah Letter of Credit
service is just what you are looking for. With competitive rates, security, and ease of transaction,
Bank Alfalah Letters of Credit are the best way to do your business transactions.
Foreign Currency Account Dealing
This department deals with the foreign currency accounts which mainly include dollar account,
euro account etc.
CHAPTER 3
Product & Services
Conventional Banking
Bank Alfalah Limited offers highly prioritized and specifically tailored products and services
designed to suit the needs and preferences of their highly valued customers. For becoming a highly
effective financial supermarket, Bank Alfalah Limited provides a complete range of products to its
corporate clients, commercial enterprises and to the consumers. Alfalah offers syndicated loans and
structured financial products to the large corporate clients.
True to its strategy of becoming a highly effective financial supermarket, Bank Alfalah Limited
provides a complete range of products to its customers; the corporate clients, commercial enterprises
and the small consumers. At Bank Alfalah Limited, the primary commitment is to understand and
support its client’s business objectives and financial needs. All this is ensured through constant R & D
focus and training & development of staff. Bank Alfalah Limited provides a wide range of products/
services to its customers, which can be compared with any foreign, or national bank in terms of
quality and reliability.
The products of Bank Alfalah Limited are explained below.
Deposit Accounts
• Current Accounts
• Saving Accounts
• Fixed Deposit
Current Accounts
Alfalah Pehchaan FCY Current Account
This account is spcifically designed to engage the female population of the country.It offers the
customer to open the account in leading world currencies.The customer can open a new account
or convert an existing account to the FCY account. The perks include provision of free first
customized chequebook and E-statements.
This account is meant for those who are passionate enough to defy the odds and have a will to
establish or expand a business. This allows the account holder to carry out unlimited free
transactions through 649 branches across 250 cities of Pakistan. this account comes with the
perks of Alfalah Silver and Gold Visa Debit Card, internet banking facility and 24*7 account
access through Alfalah contact center subject to the maintenance of Rs. 25000 average monthly
balance.
It is a non interest based current account designed for individuals and businessmen, who have
frequent transactional needs, to give them instant access to their cash. Opening balance and
minimum balance requirement is Rs. 1000 and Rs. 5000 respectively. The privileges include;
unlimited number of monthly deposit or withdrawal transactions, five free banker's cheque, free
within city online branches.
On the instructions of the SBP, BAFL has also initiated to engage the non-banking familiar
population of the country into the banking sector. For this, Alfalah Asaan Current Account is
designed which includes minimum documentation and requires only Rs. 100 as initial deposit to
open an account. There are no service charges and minimum balance requirement. It allows the
customer to deposit or withdraw upto Rs. 500,000 monthly and provides the customer with the
Debit card and on-request cheque book provision. The account holder is intimitated of every
transaction through SMS alerts.
It is a non-profit checking account which allows the customer to carry their FCY transactions.
This account may be opened in US Dollar, Pound Sterling, Euro, Japanese Yen, Chinese Yuan or
UAE Dirham. It allows the customer to carry out nlimited number of monthly transactions.
• Minimum balance equivalent to 100 (USD, GBP, EUR) , 5,000 Yen, 1,000 CNY or 500
UAE Dirham.
Saving Accounts
Alfalah Pehchaan PKR Savings Account
This account is spcifically designed to engage the female population of the country to open a
saving account in PKR which disburse monthly profits.The customer can open a new account or
convert an existing account. The perks include provision of free first customized chequebook,
customized debit cards, no balance requirements, waives on locker charges, discounts on various
merchants, free SMS alerts, free internet banking and E-statements.
This account is spcifically designed to engage the female population of the country.It offers the
customer to open the account in leading world currencies which disburse profits on semi-annual
basis. The customer can open a new account or convert an existing account to the FCY account.
There is no minimum balance requirement. The perks include provision of free first customized
chequebook and E-statements.
Aasan remittance account makes it possible for the customers to receive their remittances in the
quickest way possible alongwith disbursement of monthly profits. This account comes with
many benefits including; no minimum balance requirement, free cheque book of 25 leaves,
maximum credit limit of 2Million, cash withdrawal and funds transfer limit of Rs. 50,000 per
day.
The customers can have basic banking needs with complete ease while they can also start
earning profits on your savings for a more protected tomorrow. Alfalah Saving Account is
tailored for individual savers and businesses who seek returns on their deposits as well as
continuous access to their funds. Features are given below
• Easy access to funds through your cheque book and VISA Debit/ATM Card which can be
used globally at over 30 million outlets and at more than 1.5 million ATM’s
• Convenience of online banking across all Bank Alfalah branches nation wide
• Invest with a minimum deposit of Rs. 100,000 for 1,2,3,4 and 5 years
• For Individuals aged 55 years and above only
• Profit paid every month
• Automatic rollover
• Invest with a minimum deposit of Rs. 100,000 for 1,2,3,4 and 5 years
• For Individuals/Joint Account holders
• Profit paid every month
• Automatic rollover
Debit Cards
• Enjoy complete freedom of cash withdrawal and payments wherever you are
• Local Acceptability
• Avail unlimited access to your account around the world with a simple swipe
• Enjoy complete freedom of cash withdrawal and payments wherever you are
• Global Acceptability
• Avail unlimited access to your account around the world with a simple swipe
• Enjoy complete freedom of cash withdrawal and payments wherever you are
• Global Acceptability
• Upto 30% discount at over 250+ restaurants and lifestyle partners worldwide
• Higher transactional limits which gives you the flexibility to be in complete control of your
spending needs
Discounts:
Customers can enjoy a 30% discount at over 250 fine dining and shopping partners both locally
and internationally.
Complimentary insurance:
Customers can avail protection and extended warranty on their purchases along with insured
travel plans.
• Upto 30% discount at over 250+ restaurants and lifestyle partners worldwide
• Peace of mind with purchase protection, extended warranty & travel inconvenience coverage
• Higher transactional limits which give you the flexibility to be in complete control of your
spending needs
Eligibility
The Alfalah Visa Signature Debit Card with be offered to new customers based on opening an
account in the branch with minimum of PKR 1 million deposit. For existing customer, average
12 months balance in the account should equal PKR 1 million
Loans
• Alfalah Auto Loan
Benefits
• Minimum Loan Amount: PKR 50,000/-
• Maximum Loan Amount: PKR 2,000,000/-
• Minimum Tenure: 1 Year
• Maximum Tenure: 5 Years
• No Security required
Alfalah Home Finance
Are you looking to buy a new house? Do you have it all figured out?
Saving to buy your first home can be challenging, but that’s why Bank Alfalah is here to sought out
your financial woes for you. Not only that, with Bank Alfalah Home Finance you will get
personalized services and competitive rates.
Bank Alfalah Limited is a a brand in housing finance, offering a wide range of financing solutions
and having a tradition of caring for our clients.
Banks expertise equips them to understand their customer needs, bank offers advisory services in
selecting a future home and structure a financial plan to work towards owning it
Home Remittance
Bank Alfalah is an emerging leader in the field of home remittances and provides beneficiaries a
fast, reliable and free of cost service for receiving remittances from their global network of
partner banks, money transfer operators and exchange companies. Money sent from abroad is
instantly available at any of banks 620 branches across Pakistan.
Bank Alfalah home remittance beneficiaries may receive payments sent by banks dedicated
partners via the following payment modes:
Digital Banking
Bank Alfalah also provides digital services to their customers. Anyone can access their account from
their mobiles and laptops through Alfalah App. Through Alfalah app customers can open saving
account, can pay their loan installment, school fees of their kids, insurance installments. Alfalah bank
has also collaborated with other apps. Customers of Bank Alfalah limited can also enjoy the benefits
of these apps too.
• Free e-statements
• Tier-based accounts
• Multiplied returns through daily profit calculation and monthly accumulation in the principal.
• Cheque Books
• Account statements (semiannually)
• E-statements
• Online transactions within the Bank Alfalah network
• No minimum or maximum balance requirement
• SMS alert on all transactions on request
• Stop payment facility on request
• Hold mail facility on request
• Saturday banking at selected branches
Alfalah Islamic Buisness Way Account
Looking for a business account that lets you decide how it operates? Open the Alfalah Islamic
Business Way account. You can opt for either a deposit account or a payroll account.
As a payroll account, there is no need of initial deposit and balance requirement. And your
employees will benefit from the free services. If customers maintains balance of 25000 or above
then there are no service charges on this account.
This account works in accordance to Shari’ah Principles and Its free benefits include:
• Cheque Books
• Banker’s Cheque (duplicate issuance and cancellation also included)*
• Free ATM Cash withdrawal from any Bank’s ATM (payroll accounts only)
• Account statements (Semiannually)
• E-statements
• Online transactions within Bank Alfalah network
• Alfalah Debit Card
• SMS alerts
Falah Mahana Amdani Account
Falah Mahana Amdani Account is a Shari’ah Compliant account that helps you achieve your
saving goals with monthly profits. Enjoy easy access to your money and watch your savings
grow.
• Profit is calculated on average balance of the month and paid every month
• Minimum initial deposit for account opening is Rs. 10,000 only
• Maximum balance limit is Rs. 25 million*
• No restriction on number of deposit or withdrawal transactions
• Tier base account
• VISA Debit/ATM Card accepted at over 30 million outlets and more than 4,000 ATMs
worldwide
• Free cheque books**
• Convenience of Online banking across all Bank Alfalah Islamic branches nationwide,
with no charges
• Free e-statements
• SMS alert on every transaction
• Complimentary account statement semi-annually
Alfalah Islamic Asan Account
Opening a bank account doesn’t need to involve too much hassle. With minimal documentation
and just Rs. 100, open your Alfalah Islamic Asaan Account today. There are two types of asan
accounts. Current asan account is based on the principles Qard and saving asan account is based
on the principles of Mudarabah. Featues of Alfalah Asan Acoount are as follow
• You can open current or savings account
• Avail a 6-monthly profit rate on your Alfalah Islamic Asaan Savings account
• No minimum balance requirement
• Free Cheque Books
• Free Online Banking through any Alfalah Islamic Branch
• Monthly cash deposit/withdrawal limit of up to Rs. 500,000
• Get your Alfalah Debit Card when you open an account
• SMS alert on every transaction
Falah Term Deposit Certificate
Falah term deposit offers an attractive rate of return on your savings. This Shari’ah complaint
account not only helps you grow your savings quickly, but also provide the flexibility of
accessing you funds when you need them. In case of premature encashment profit shall be
calculated and paid on the basis of actual declared monthly profit rates of TDR for the
corresponding completed period as per related tier for the relevant period of stay of deposit with
the Bank. It is a profit bearing fixed deposit account designed on the foundation of ‘Mudarabah’,
where Bank is the ‘Mudarib’ (manager of the funds) and you, the customer is the ‘Rabb-ul-Maal’
(owner of funds). Bank at its discretion, use or employ your deposited funds in Shari’ah
compliant modes such as Ijarah, Murabaha and Musharakah. Some features of Falah Term
deposit Certificate are as under
• Available in
• Multiple Tiers
Debit Cards
Alfalah PayPak Islamic Debit Card
Alfalah PayPak Islamic Classic Debit Card is locally accepted. The Card is welcomed at all
locations displaying the PayPak/1Link/MNet logos on POS terminals. This includes up to 27,000
major establishments in Pakistan. Alfalah PayPak Islamic Classic Debit Card can be used to pay
for shopping, meals, travel, entertainment, holiday, fuel etc. Their are also up to 8,000 ATMs
from which a customer can withdraw cash. By getting Alfalah PayPak Islamic Classic Debit
Card, customers can access their account at Bank Alfalah from anywhere in Pakistan. Key
feauters of Alfalah PayPak Islamic Debit Card are
• Avail unlimited access to your account nationwide with a simple swipe
• Enjoy complete freedom of cash withdrawal and payments wherever you are
• Local Acceptability
• No minimum income required
Home Remittance
MoneyGram
Bank Alfalah Islamic Banking, in collaboration with MoneyGram, offers remittance service in
Pakistan. MoneyGram is person to person money transfer service that allows consumers to
receive money in just a few minutes.
Secure and reliable:
An extensive network of quality agents, linked by computer, will transfer customer money safely
and ensure that it is handled with care and without delay. Thousands of people already use the
MoneyGram service all over the world. It is considered a reliable and secure channel to transfer
funds.
Convenient and fast:
MoneyGram is available in over 180 countries and territories and in more than 190,000 locations
worldwide. With MoneyGram money is transferred immediately and usually arrives at the
receiving end within 10 minutes while other services can take days or weeks. There are no
complicated procedures and customers do not need a bank account or a credit card. What’s more,
the receiver is handed the cash immediately.
How to receive:
• Ensure that the sender has given you the MoneyGram reference number.
• Go to any authorize branch of Bank Alfalah Islamic Banking Group along with your
identification document (e.g. NIC/passport) with you.
• Provide the reference number and complete a simple form.
• You will be given the money immediately, in local currency.
Consumer Banking
Alfalah Home Musharakah
Alfalah Islamic Housing Finance is a housing finance solution that has been structured in a
manner which ensures that the principles of Shari’ah related to Diminishing Musharakah have
been strictly followed thus making it Riba-Free. With a simple housing finance solution based on
Shari’ah principles, customer can avail the following:
Eligibility Criteria
Documents Required
• Application form
• CNIC/NICOP copy
• Latest 2 photographs
• Copy of property documents to be financed
• Latest salary slips
• Last 6 months Personal Bank Statement in the name of the salaried customer
Documents Required
• Pakistani
• Minimum income requirement of Rs. 50,000/- per month
• Age limit-For salaried individuals: Minimum 21 years and maximum 60 years (govt.
employees) and 65 years (private sector) at the time of maturity and Age limit-For self-
employed businessman/professional: Minimum 21 years and maximum 70 years at the
time of maturity.
• Years in employment
Permanent employee: Currently employed with total employment experience of 6
months.
Contractual employee: Currently employed with total employment experience of 1 year.
Businessman / self-employed professional: Minimum 1 year in current business.
Corporate Banking
Corporate banking division stands out among its peers by focusing on the strong relationship
building with its customers. Bank Alfalah Islamic believes that the corporate sector plays an
important role in the growth of any country. Bank steps in with its expertise to support diverse
industrial sector with range of Shari’ah Compliant financial services to cater the needs of
corporate customers and public sector entities. Whether the customer is looking for a short term
loan or planning to expand their business, bank offers solution for working capital financing,
import/ export financing, project financing and customized solutions according to needs of
customers.
Working Capital Finance
At Bank Alfalah, we understand that corporations often face monetary imbalances which hinder
their growth. Corporations do have access to the conventional finance for overcoming their
monetary imbalance but corporations looking for Islamic modes of financing in this regard can
firmly rely on Shari’ah Compliant ‘Alfalah Running Musharakah’, ‘Alfalah Istisna’, ‘Falah
Tijarah Finance’, ‘Murabahah Finance’, and ‘Salam’.
e. Alfalah Salam
Bank Alfalah’s portfolio expands to accommodate the needs for agricultural sector. Bank
understand that agriculture being the back bone of the country’s growth is often faced by
working capital problems. Thus, Bank Alfalah offers Salam to accommodate this sector’s
requirements. It is contract in which Customer undertakes to supply some specific
commodity(ies)/asset(s) to Bank at future date in exchange for an advance price fully paid at
spot. Hence, the price is paid in cash whereas delivery of the purchased goods is deferred.
a. Alfalah Ijarah
Bank Alfalah offers Shari’ah Compliant finance facility ‘Ijarah’ the rental based mode of Islamic
finance to corporations, which cater the needs for medium to long term asset financing, project
financing, plant & machinery etc. In the context of Islamic banking, an Ijarah contract can be
understood as an arrangement/contract whereby one party (Lessor) agrees to transfer the benefit
of use of an asset to another party (Lessee) for an agreed period at an agreed consideration.
b. Alfalah Diminishing Musharakah
Corporate Diminishing Musharakah is an Islamic medium to long term finance facility which
caters for customers in need to finance fixed and movable assets (E.g. land, factory, and
building), long term projects and etc. The concept of Diminishing Musharakah allows bank and
customer to participate in joint ownership of a Shari’ah compliant asset. The bank’s share is
divided into units which are purchased by the customer periodically thus increasing his/her
(customer) share in the partnership until the ownership is fully with the customer. Meanwhile the
bank charges rent on the portion of asset owned by it (bank).
c. Sukuk
We at Bank Alfalah offer Shari’ah Compliant banking solutions based on Sukuks. Sukuk is the
Arabic plural of the word ‘Sakuk’ which represents certificate. These are certificates of equal
value representing undivided shares in ownership of tangible assets, usufruct and services. Sukuk
is centered on the concept of asset monetization, which can either be issued on existing or
specific assets that shall be available at a future date. Sukuk as Islamic securitization can also
help in managing liquidity in the same manner as Treasury bills/bonds are used in the
conventional market.
SME/Commercial Banking
A strong SME sector plays an important role in the economic growth of a country. Bank Alfalah
Islamic caters its SME customers in the long term financing for Infrastructure Development and
Industrial Projects.
Alfalah Istisna
Bank Alfalah’s Islamic portfolio also offers Alfalah Istisna for working capital requirement.
SMEs involved in manufacturing and construction, and require working capital (for wages,
overheads and etc.) can opt for Alfalah Istisna to facilitate payments. This facility is an ideal
option for SMEs whose substantial portion of overheads is related to production.
Istisna is a special type of sale transaction where the buyer places an order with the seller to
manufacture certain asset and upon delivery of the asset to the buyer the sale is completed.
Alfalah Salam
Bank Alfalah’s portfolio expands to accommodate the needs for agricultural sector. Bank
understand that agriculture being the back bone of the country’s growth is often faced by
working capital problems. Thus, Bank Alfalah offers Salam to accommodate this sector’s
requirements. It is contract in which Customer undertakes to supply some specific
commodity(ies)/asset(s) to Bank at future date in exchange for an advance price fully paid at
spot. Hence, the price is paid in cash whereas delivery of the purchased goods is deferred.
Alfalah Ijarah
Catering the needs for medium to long term asset financing, project financing, plant &
machinery etc., Bank Alfalah offers Shari’ah Compliant finance facility ‘Ijarah’ to SMEs.
Technically the term Ijarah means to rent out something. In the context of Islamic banking, an
Ijarah contract can be understood as an arrangement/contract whereby one party (Lessor) agrees
to transfer the benefit of use of an asset to another party (Lessee) for an agreed period at an
agreed consideration.
Trade Services
Bank Alfalah Islamic Group offer a wide range of trade services designed to meet a range of their
corporate client needs. Bank has industry specialists who are professional and seasoned to make
sure that all your trade finance requirements are taken care of with precision and skill. Our team
of specialists goes the extra mile to ensure that our Customer experience is exceptional.
Money Market
IPS Account
Bank Alfalah Islamic Banking Group offers Investor Portfolio Securities Account (IPS) to its
valued customers. The IPS Account provides Bank Alfalah customers an opportunity to invest in
Shari’ah compliant Marketable Government Securities.
Customers can now invest in:
Key Features
Custodianship
Alfa
.
Through Alfa app customers can manage their savings, track their expenses, pay their bills, can
request for a new cheque book, set reminders, recharge their Netflix account or they can do
shopping. Alfa app includes all these features.
Customers can download Alfa from iTunes or Google Play Store
If you’re an Alfalah Internet Banking customer then login using your existing ID and Password.
Or you can register using your Alfalah Account or Credit Card details
• View account information or access your last 30 days transaction details
• Pay your Alfalah Credit Card bill instantly or view your credit cards details
• Access your loans and Bancassurance details
• With AlfaPay you can scan QR code to make instant payments at over 15000 Masterpass
merchants across Pakistan. Pay using your Bank Alfalah Account, Credit Card, Wallet or
with Orbits.
• You can also request for:
• Cheque book
• Address Change
• SMS subscription
• e-Statement subscription
• Transfer funds instantly to any Bank Alfalah account or Other IBFT enabled accounts
• Top up or pay your own or anyone’s mobile bill instantly
• Pay your utility bills
• Pay your Internet Service charges
• Stay updated on all the discounts on Alfalah Credit and Debit Card
• Locate Bank Alfalah branches, ATMs and cash deposit machines near you (through GPS)
• Pay for your online shopping on Daraz.pk, Shophive, Dealsdaily.pk
• Set date and location reminder
• Change your daily app transaction limits
• Apply for Bank Alfalah products instantly
Internet Banking
Alfalah Internet Banking offers its customers the convenience of banking from anywhere, anytime. If you’re
an Alfa customer then login using your existing ID and Password or you can register using your Alfalah
Account, Debit Card or Credit Card details. Alfalah Internet Banking offers a range of financial services and
payment facilities. These include:
• View account information or access one year’s account statement
• Pay your Alfalah Credit Card bill r view your credit cards details
• Book cinema & airline tickets
• Request for a new cheque book
• Request for address change
• Request for SMS subscription
• Request for E-Statement subscription
• Transfer funds instantly to any Bank Alfalah account or other IBFT enabled accounts
• Top up or pay your own or anyone’s mobile bill instantly
• Pay your utility bills
• Pay your internet service charges
• Participate in electronic IPO’s
• Stay updated on all the discounts on Alfalah Credit and Debit Card
• Pay for your online shopping on Daraz.pk, Shophive, Dealsdaily.pk & many others
• Change your daily transaction limits
SMS Alerts
With SMS Alerts, customers can keep track of their transactions 24/7. Customers can receive
real-time SMS alerts for transactions conducted in their account. It also helps Customers keep
track of all your POS, ATM, in-branch and supplementary card transactions as and when they are
conducted. Customers will also receive the information about their available balance with every
transactional alert and Customers can also update their mobile network by sending a text ‘mnp’
to Bank Alfalah’s Short Code 8287.
E-statements
With banks e-statement service, customers can receive Daily, Weekly, Monthly, Quarterly or Half-
yearly account statements directly via email. This facility is offered to customers at no extra cost,
all you need is a personal e-mail address to which their e-statements will be sent..
• Withdraw cash using Visa, MasterCard, JCB, and Union Pay cards
• Check balance
• Get mini-statement
• Change ATM PIN
• Transfer funds from your account to any Bank account free of charge
• Inter-Bank Funds Transfer (IBFT) is available at all ATMs. Transfer funds from your
Bank account to any other 1-Link and MNet Member Bank’s account
• Pay your utility bills for all major Utility Companies, Internet Service Providers, Phone
and Mobile TelCos
• Experience digital banking at digital corners located at:
• Khayaban-e-Shahbaz Branch
• Tufail Road Branch
• Gulberg 23-H Branch
• Diplomatic Enclave Branch
Banca Takaful
Bancatakaful is specially designed to help customers protect and secure a stable future with their
loved once. Bank partners with the leading takaful companies in country and provides a diverse
range of takaful plans, customized to meet savings, marriage, education, retirement and health in
every stage of life.
• Customers contributions are invested as per chosen strategy (ies). This means at the time of
maturity of the plan customers get the entire participant investment account value (PIA
value) accumulated during the term of the plan.
• The Plan is flexible and gives customers the option to select the sum cover of their choice.
• In case of demise of the participant during the term of the plan, his / her beneficiaries will
be entitled to the sum cover or the PIA value, whichever is higher. customers can
determine the sum cover by multiplying your annualized basic contribution amount by
the selected cover multiple (offered from 5 to 30)* depending on your savings, takaful
and needs and age.
• *For example, if your annual basic contribution is PKR 100,000 and you have selected a
cover multiple of 10, customers total sum cover would be 100,000 x 10 = PKR 1,000,000.
• Customers contributions will be invested in the fund(s) according to the strategy (ies) of
their choice (Aggressive / Balanced / Conservative) which are managed by expert
investment managers in order to ensure optimized returns with manageable risk exposure.
• All your contributions are invested as per your chosen strategy. This means at the time of
maturity of the plan you get the entire participant investment account value (PIA value)
accumulated during the term of the plan.
• The Plan is flexible and gives you the option to select the sum cover of your choice.
• In case of demise of the participant during the term of the plan, his / her beneficiaries will
be entitled to the sum cover or the PIA value, whichever is higher. You can determine the
sum cover by multiplying your annualized basic contribution amount by the selected
cover multiple (offered from 5 to 10)* depending on your savings and takaful needs.
• *For example, if your annual basic contribution is PKR 100,000 and you have selected a
cover multiple of 10, your total sum cover would be 100,000 x 10 = PKR 1,000,000.
• Your contributions will be invested in the fund(s) according to the strategy of your choice
(Aggressive / Balanced / Conservative) which are managed by expert investment
managers in order to ensure optimized returns with manageable risk exposure.
Payment Frequency
The minimum collected basic contribution is PKR 25,000. The contributions can be made on
Annual, Semi-Annual or Quarterly basis.
Note: For a better understanding in making your selection according to your savings and takaful
needs, you may contact representatives at your nearest Bank Alfalah Limited branch.
Eligibility
The plan is available to all Bank Alfalah Limited customers between 18 to 55 years of age.
Term of Plan
Minimum Term: 10 years
Maximum Term: 25 years (subject to a maximum coverage age of 65 years)
Claims:
Following are the requirements for Claims settlement:
• Claimant’s Statement to be completed and signed by customer.
• Physician’s Statement to be filled by the Physician who treated/attended the deceased
• Original Union Council Death Certificate which will be returned to you OR copy duly
attested by Union Council
• Copy of hospital death certificate
• Original Policy Document
• All previous and current medical treatment record of deceased
• Copies of CNIC’s of Beneficiary & Deceased
• Copy of FIR/Police Report duly attested by the issuing authority (In case of accident)
• Copy of Post Mortem Report duly attested by the issuing authority (In case of accident)
• All your contributions are invested as per your chosen strategy. This means at the time of
maturity of the plan you get the entire participant investment account value (PIA value)
accumulated during the term of the plan.
• The Plan is flexible and gives you the option to select the sum cover of your choice.
• In case of demise of the participant during the term of the plan, his / her beneficiaries will
be entitled to the sum cover or the PIA value, whichever is higher. You can determine the
sum cover by multiplying your annualized basic contribution amount by the selected
cover multiple (offered from 5 to 100)* depending on your savings and takaful needs.
• *For example, if your annual basic contribution is PKR 100,000 and you have selected a
cover multiple of 10, your total sum cover would be 100,000 x 10 = PKR 1,000,000.
• Your contributions will be invested in the fund(s) according to the strategy of your choice
(Aggressive / Balanced / Conservative) which are managed by expert investment
managers in order to ensure optimized returns with manageable risk exposure
Payment Frequency
The minimum collected basic contribution is PKR 25,000. The contributions can be made on
Annual, Semi-Annual or Quarterly basis.
Note: For a better understanding in making your selection according to your savings and takaful
needs, you may contact representatives at your nearest Bank Alfalah Limited branch.
Eligibility
The plan is available to all Bank Alfalah Limited customers between 18 to 65 years of age.
Term of Plan
Minimum Term: 10 years
Maximum Term: Up to an attained age of 85 years
Claims:
Following are the requirements for Claims settlement:
• Claimant’s Statement to be completed and signed by you
• Physician’s Statement to be filled by the Physician who treated/attended the deceased
• Original Union Council Death Certificate which will be returned to you OR copy duly
attested by Union Council
• Copy of hospital death certificate
• Original Policy Document
• All previous and current medical treatment record of deceased
• Copies of CNIC’s of Beneficiary & Deceased
• Copy of FIR/Police Report duly attested by the issuing authority (In case of accident)
• Copy of Post Mortem Report duly attested by the issuing authority (In case of accident)
• All your contributions are invested as per your chosen strategy. This means at the time of
maturity of the plan you get the entire participant investment account value (PIA value)
accumulated during the term of the plan.
• The plan is flexible and gives you the option to select the sum cover of your choice.
• In case of demise of the participant during the term of the plan, his / her beneficiaries will
be entitled to the sum cover or the PIA value, whichever is higher. You can determine the
sum cover by multiplying your annualized basic contribution amount by the selected
cover multiple (offered from 5 to 10)* depending on your savings and takaful needs.
• *For example, if your annual basic contribution is PKR 100,000 and you have selected a
cover multiple of 10, your total sum cover would be 100,000 x 10 = PKR 1,000,000.
• Your contributions will be invested in the fund(s) according to the strategy of your choice
(Aggressive / Balanced / Conservative) which are managed by expert investment
managers in order to ensure optimized returns with manageable risk exposure.
Payment Frequency
The minimum collected basic contribution is PKR 25,000. The contributions can be made on
Annual, Semi-Annual or Quarterly basis.
Note: For a better understanding in making your selection according to your savings and takaful
needs, you may contact representatives at your nearest Bank Alfalah Limited branch.
Eligibility
The plan is available to all Bank Alfalah Limited customers between 18 to 55 years of age.
Term of Plan
Minimum Term: 10 years
Maximum Term: 25 years (subject to a maximum coverage age of 65 years)
Claims:
Following are the requirements for Claims settlement:
• Claimant’s Statement to be completed and signed by you
• Physician’s Statement to be filled by the Physician who treated/attended the deceased
• Original Union Council Death Certificate which will be returned to you OR copy duly
attested by Union Council
• Copy of hospital death certificate
• Original Policy Document
• All previous and current medical treatment record of deceased
• Copies of CNIC’s of Beneficiary & Deceased
• Copy of FIR/Police Report duly attested by the issuing authority (In case of accident)
• Copy of Post Mortem Report duly attested by the issuing authority (In case of accident
• All your contributions are invested as per your chosen strategy (ies). This means at the
time of maturity of the plan you get the entire participant investment account value (PIA
value) accumulated during the term of the plan.
• The Plan is flexible and gives you the option to select the sum cover of your choice.
• In case of demise of the participant during the term of the plan, her beneficiaries will be
entitled to the sum cover or the PIA value, whichever is higher. You can determine the
sum cover by multiplying your annualized basic contribution amount by the selected
cover multiple (offered from 5 to 30)* depending on your savings, takaful needs and age.
• *For example, if your annual basic contribution is PKR 100,000 and you have selected a
cover multiple of 10, your total sum cover would be 100,000 x 10 = PKR 1,000,000.
• Your contributions will be invested in the fund(s) according to the strategy (ies) of your
choice (Aggressive / Balanced / Conservative) which are managed by expert investment
managers in order to ensure optimized returns with manageable risk exposure.
Payment Frequency
The minimum basic annual contribution is PKR 25,000. The contributions can be made on
Annual, Semi-Annual or Quarterly basis.
Note: For a better understanding in making your selection according to your savings and takaful
needs, you may contact representatives at your nearest Bank Alfalah Limited branch.
Eligibility
The plan is available to all Bank Alfalah Limited customers between 18 to 65 years of age.
Term of Plan
Minimum Term: 10 years
Claims:
Following are the requirements for Claims settlement:
• Claimant’s Statement to be completed and signed by you
• Physician’s Statement to be filled by the Physician who treated/attended the decease
• Original Union Council Death Certificate which will be returned to you OR copy duly
attested by Union Council
• Copy of hospital death certificate
• Original Policy Document
• All previous and current medical treatment record of deceased
• Copies of CNIC’s of Beneficiary & Deceased
• Copy of FIR/Police Report duly attested by the issuing authority (In case of accident)
• Copy of Post Mortem Report duly attested by the issuing authority (In case of accident)
Features:
• All your contributions are invested as per your chosen strategy. This means at the time of
maturity of the plan you get the entire participant investment account value (PIA value)
accumulated during the term of the plan.
• The plan is flexible and gives you the option to select the sum cover of your choice.
• In case of demise of the participant during the term of the plan, his / her beneficiaries will
be entitled to the sum cover or the PIA value, whichever is higher. You can determine the
sum cover by multiplying your annualized basic contribution amount by the selected
cover multiple (offered from 5 to 40)* depending on your age.*For example, if your
annual basic contribution is PKR 500,000 and you have selected a cover multiple of 10,
your total sum cover would be 500,000 x 10 = PKR 5,000,000
• Your contributions will be invested in the fund(s) according to the strategy of your choice
(Aggressive / Balanced / Conservative) which are managed by expert investment
managers in order to ensure optimized returns with manageable risk exposure.
Benefits:
Vitality: It focuses on wellness by providing you with an understanding of your current health
status and incentivizes you to improve your health.
Takaful Coverage: It caters to your need for financial security and provides investment
opportunities with highest allocation i.e. 50% in 1st year.Sehat Afza: It provides financial
protection in case of illness or accident that leads to hospitalization to cover in patient expense of
PKR 250,000 annually
Payment Frequency:
The minimum collected basic contribution is PKR 250,000 The contributions can be made on
Annual, Semi-Annual or Quarterly basis.
Note: For a better understanding in making your selection according to your savings and takaful
needs, you may contact representatives at your nearest Bank Alfalah Limited branch.
Eligibility:
The plan is available to all Bank Alfalah Islamic customers between 18 to 65 years of age.
Term of Plan:
Minimum Term: 10 years
Maximum Term: 25 years (subject to a maximum coverage age of 85 years)
Claims:
Following are the requirements for Claims settlement:
• Claimant’s Statement to be completed and signed by customer
• Physician’s Statement to be filled by the Physician who treated/attended the deceased
• Original Union Council Death Certificate which will be returned to you OR copy duly
attested by Union Council
• Copy of hospital death certificate
• Original Policy Document
• All previous and current medical treatment record of deceased
• Copies of CNIC’s of Beneficiary & Deceased
• Copy of FIR/Police Report duly attested by the issuing authority (In case of accident)
• Copy of Post Mortem Report duly attested by the issuing authority (In case of accident)
Assignments and Projects
My training program in Bank Alfalah Limited was one of the best experiences of my life. I did
my internship in Bank Alfalah Limited Gulberg, Lahore. There I worked for about five weeks. I
worked in Trade department and learned different aspects of trade.
I did work with the intension to learn as well as to promote the activities of Bank. During work I
tried my level best to learn as much as I could to secure my practical life.
On the very first day Branch Manager personal introduced me to all the staff members of the
branch. I was not allowed to leave the bank without the permission of my supervisor officer. My
attendance sheet was maintained by manager operation of the branch.
Trade Department
During my internship days I worked in trade department. Trade department comprises of two
departments i.e. Imports and Exports.
EXPORT DEPARTMENT
In export department I learnt about following things
• Procedure of registration as an exporter
• Form “E”
• Checking of documents
• Mode of payment
Packing List:
In packing list, exporter enlists the product description, total number of carton and total gross
weight etc.
Commercial Invoice:
This invoice is issued by the company in which it notifies the applicant of importer about the rate
per unit and total cost of goods exported.
Covering Schedule:
This covering schedule is dispatch on the above of all documents to be sent to foreign bank. This
contains all the accumulated information, negotiated against the letter of credit.
Insurance certificate:
Importers prefer insurance certificate of commodities to avoid any sort of risk. There are a lot of
risks in shipment so to cover that risk importer or exporter arranges insurance cover for goods. It
is decided in the contract that which party will arrange insurance cover.
E-Form:
E stands for exports. E-Form is a basic requirement to be fulfilled by an exporter. E-Form is a
very sensitive document. Exporter has to file request for e-foam on e-boc. It contains information
about exporter business, nature of business, his name address, and some other documents. List of
these documents are below.
• Copy of ID cards of the proprietor/directors/partners and authorized persons
• Invoice value of Goods (state currency and terms CIF, C&F, FOB)
• Terms of sales
• Port of shipment
After filling the complete information about the goods to be exported, the exporter brings E-
Form to the bank for verification. The bank verifies the contents in accordance with the
documents and not by physical checking.
After getting the E-form verified from bank, the exporter starts preparing for the shipment. As
the bank only deals in documents, so in order to receive the payment for his goods to be
exported, the exporter has to send certain documents to the L/C issuing bank via negotiating
bank.
A very important step is to scrutinize the documents, before sending them to the issuing bank. It
requires utmost care of the bank officer. When the documents are presented in the bank, they are
always scrutinized and they must be in accordance with the requirements stipulated on the L/C.
Any deviation could result in rejecting the documents by the importer, hence causing loss to the
exporter or even to the bank if the documents are to be negotiated.
IMPORT DEPARTMENT
In import department I learnt about:
• Issuance of import registration certificate
• Parties of L/C
• Types of L/c
• Import bill
• Mode of payment
The Second section of trade department is Import. This department is responsible to assist the
importers in foreign trade by providing guarantees.
Importer submits the copy of contract between importer and exporter. On the contract document
bank issues the Letter of Credit on behalf of importer.
Once the importer files an application for trade purpose, the security evaluation of his application
is done by the credit department to analyze whether the shipment worth or not. On the approval,
Importer is assigned a LC code and a PAD number. The bank sends the approval of an LC in the
name of importer to the Advising Bank (Exporters bank). Exporters bank sends all the
documents negotiated in LC to importers bank. Once the shipment arrives in importing country,
documents are kept with the bank until the importer makes full payment to bank.
Letter of Credit
The letter of credit is today the foremost way of financing international trade. In simple words, a
letter of Credit (L/C) can be defined as:
“A bank’s written undertaking given to the exporter for payment of a certain sum of money on
behalf of the importer provided the exporter tenders to the bank or its overseas agents, the
specified documents within a specified period in accordance with the terms of the undertaking”.
Following are some of the main advantages of a letter of credit:
• Since a letter of credit is opened only for the importers with established credit standing, the
exporter is sure of receiving the price of his commodity.
• An exporter may obtain necessary finance immediately on shipment under a letter of credit
(through negotiation or OD buying).
• A letter of credit may help the importer to meet its financial difficulties. He may obtain some
finances against the L/C.
• Similarly, an L/C enables the exporter to obtain finances from his bank, for the operations of
production even before shipment (Pre-Shipment finance).
• Reimbursing Bank
• Advising Bank
• Negotiating Bank
• Intermediary Bank
Advising Bank:
The bank that advises the L/C means who physically delivers the L/C to the exporter on behalf of
the issuing bank. It is a correspondent bank of the issuing bank situated in the beneficiary’s
country or it can also be a branch of issuing bank.
Negotiating Bank:
Negotiation is actually an exchange of value of draft. In this case, exporter negotiates with bank
to extend the due date because of unavailability of funds when importer is obliged to pay the
exporter. Bank pays to advising bank on behalf of importer and agrees to charge the markup on
funds when importer will pay. Bank pledge some property worth of advances.
Intermediary Bank:
Intermediary bank is that where the negotiating bank has its Nostro Account and who obtains
reimbursement against L/C from reimbursing bank and gives credit to the negotiating bank. For
dollar payments, intermediary bank would have to be situated in USA. Similarly, for transactions
in GBP, both the Reimbursement and Intermediary banks would be in UK.
Terms for an Importer to get an L/C:
A letter of Credit cannot be opened on behalf of the importer unless he fulfills the following
requirements:
• The person must be an account holder of BAL.
• No person can be an importer without first being registered with EPB. So the person must have
valid import registration with Export Promotion Bureau (EPB) of Pakistan. This registration is
not necessary for those who have been exempted from it.
• The person must process a valid membership certificate of Trade Organization, licensed and
recognized by Federal Government like a Chamber of Commerce (e.g. Lahore Chamber of
Commerce)
• The person must possess a valid NTN (National Tax No) certificate.
• Instructions about the advice of credit, whether it should be sent by airmail, by courier or
telecommunicated.
• Port of shipment and port of destination and whether trans-shipment and/or part-shipment are
allowed.
• The application form is a formal contract between the issuing bank and the applicant; therefore, it
is signed by the customer, who by doing so undertakes to abide by the terms and conditions of
L/C, mentioned in the application form.
Bill of Exchange:
This bill is passed on the agreement between both parties on due payment dates, shipment dates
or any negotiation case (if any).
Packing List:
In packing list, exporter enlists the product description, total no of carton and total gross Weight
etc.
Commercial Invoice:
This invoice is issued by the co. in which it notifies the applicant of importer about the rate per
unit and total cost of goods exported.
Covering Schedule:
Along with the above stated documents, the negotiating bank sends it’s covering Schedule on
which the instructions regarding the whole transaction are prescribed. It also mentions the
number of each document sent by the exporter. The number of each document depends upon the
instructions of importer mentioned on L/C.
This covering schedule is dispatch on the above of all documents to be sent to foreign bank. This
contains all the accumulated information, negotiated against the letter of credit.
Indenter:
When the importer and exporter don’t have direct relations and are connected to each other
through an intermediary, called Indenter, then he issues an indent form containing all terms and
conditions.
Mode of Payment
1. Sight L/C:
Such LC which binds importer to make payment when it is presented is known as sight LC. As
exporter will present LC importer will make payment with in the specified days mentioned in
sight LC.
2. Usance L/C:
When a credit stipulates payment to the beneficiary upon the maturity of a bill of exchange
drawn under the terms of the credit, it is an ‘acceptance credit’, ‘term credit’ or ‘usance credit’.
In this form of credit the beneficiary draws a draft for a particular usance (e.g.30, 60, or 90 days
etc,), payable upon either the correspondent bank or the issuing bank.
Example: If L/C says “payment to be made 90 days from bill of lading date” or any similar
statement, this implies a usance period. After 90 days from bill of lading date, Citi Bank NY
(exporter’s bank) will debit Bank alfalah Nostro account and remit payment to E. Meanwhile, in
Lahore on arrival of documents, Bank alfalah will get Importer to sign the bill of exchange,
drawn on Bank alfalh, calling for payment on the due date.
Documents are then released to I so he can get the possession of goods. After 90 days, if I refuse
to pay, Bank alfalah is responsible for it.
Lodgment of Documents in PAD (For sight L/C’s only):
After all the documents are scrutinized carefully, documents are lodged in PAD (payment
Against Documents). For this purpose, the documents are stamped with PAD for a specific PAD
number and entered into the register by the total amount. Exchange rate (selling) approved by the
BAL treasury (for that day) is charged.
When the documents are lodged in PAD, L/C becomes a fund-based facility. Until the party does
not make the payment, PAD remains outstanding and the bank keeps the documents in its safe
custody. Record of every information regarding PAD is mentioned in the PAD register.
A PAD register contains:
• Date of Lodgment of PAD
• PAD number
• Importer’s name
• PAD amount
• Name of vessel
Retirement of Documents:
The whole transaction of foreign trade in which an L/C is involved, completes with the
retirement of documents.
The documents that are first lodged in PAD are retired when the importer pays the total amount
(payable). This amount includes the PAD plus the mark-up charged on PAD and other charges
(mentioned on cost memo). Upon receipt of payment, when the documents are retired, they are
given to the importer and he gets the consignment cleared from custom authorities (by
submitting the Bill of Entry).
Shipping Guarantee
Sometime, it so happens that the consignment reaches the port in the importer’s country but the
bank has not received the documents.
Since, the importer needs original bill of lading and commercial invoice to get his consignment
cleared, through the bill of entry. These are the most important documents and if these
documents are not arrived at importer band, importer cannot claim shipment. So the bank, in
such case, issues a shipping guarantee. Bank does so against a certain margin, which is more than
the amount of goods.
CHAPTER 4
MANAGERIAL & HUMAN RESOURCE POLICIES
To set goals and objectives, policies are formulated at higher levels of management. To
achieve the desired objectives, powers are delegated to different levels of management. Each branch
manager formulates strategies in accordance with its branch structure and macro environment,
keeping in consideration the overall policy guidelines set by the highest management.
For the implementation of these strategies, meetings are conducted with departmental heads.
During my stay at Bank Alfalah Township Branch, I observed that almost every Saturday evening,
there used to be a combined meeting, where the business turnover throughout the week was observed,
so that any deviation might be identified and proper measure could be taken for controlling. Other
than this, many other issues that were raised during the past week were also discussed and then
important decisions were made. Along with these weekly meetings, whenever there was a special
matter or issue that needed to be addressed, the higher-level staff was called for discussions.
Human resource is supposed to be the most valuable asset at Bank Alfalah Limited. With its
expanding branch network, the requirement of new employees keeps on arising. With an intention to
recruit highly qualified employees, management has formulated a comprehensive recruitment policy,
with the following objectives and goals:
• To provide an opportunity to new university graduates, so that they may come up with fresh
and innovative ideas.
•
• To locate brilliant business graduates. For this, intimations are sent to universities (including
The Punjab University) and different business institutes. These MBA’s must possess a
minimum of 3.0 GPA.
•
• Before Recruitment, the skills are tested through a written test. The successful candidates are
selected for interviews. Such interviews are conducted at Area Offices and Karachi Head
Office.
•
• The graduates so selected are imparted an extensive 6 months training at Head Office,
Karachi. This is done to sharpen their skills and polish their personalities. After the
completion of training program, they are appointed at different branches of Bank Alfalah
throughout the country.
The predominant management policies followed at Bank Alfalah Limited are explicated under
the following heads.
• RECRUITMENT POLICY
Employees are the most precious asset of any organization. They are one of the most crucial
factors which could either raise the organization to great heights of glory or could force the
organization into the depth of unprecedented failure. The top management of Bank Alfalah Limited
firmly believes in the philosophy that induction of sharp and positive minded people in the
organization could go a long way as regards the betterment and uplift of Bank Alfalah Limited. That
is why Bank Alfalah Limited has a very comprehensive induction program. BAL inducts a fresh
batch of Management Trainee Officers on a yearly basis. The Human Resource Department contacts
the fifty most reputed business schools of Pakistan / or gives an advertisement in the newspapers in
order to conduct the test. The test is considerably rigorous in nature. It covers almost all the subjects
and tests the business graduates in almost all fields including economics, finance, accounting, general
knowledge, current knowledge, English, Intelligence Quotient, and mathematics. After conduction of
test some hundred and twenty five candidates out of the five hundred plus who took the test are
invited for the interview, and after interview some thirty odd students are sent to Bank Alfalah
Limited’s ‘Training and Development Centre’ in Karachi.
2. TRAINING
Although top notch business graduates are inducted in Bank Alfalah Limited, but still some
training is needed in order to raise their banking knowledge to such a level which enables them to
come at par with the work force of first line international banks. The training at BAL’s training and
development centre covers both the theoretical and practical aspects of the banking profession. Once
the MTO’s are equipped with all the theoretical knowledge they are sent to different branches all over
Pakistan for practical training. After finishing their practical training they are registered as full fledge
Bank Alfalah employees. One of the core purposes of the training program is to develop a sense of
collaboration amongst the future top line managers. Another purpose is to further refine and
communicate the communication skills of MTO’s.
3. GROWTH OPPORTUNITIES
Each and every employee at Bank Alfalah Limited is supposed to develop and submit his
SMART goals to the head office on a yearly basis. At BAL the word ‘smart’ is not just another word;
rather it’s a complete philosophy. It is an acronym which stands for; Specific, Measurable,
Achievable, Realistic, and Time Bound. After goal submission management keeps an eye on the fact
as to whether or not the goals are being met or not. This valuation is a predominant basis on which
promotion is done.
4. EMPLOYEE MOTIVATION
When we talk of employee motivation in connection with Pakistani culture we come to realize
the fact that the biggest motivator for the people of this part of the world is money, and BAL’s top
management has certainly realized this fact. The management makes it a point that employee’s take
home income is increased on periodic (yearly) basis. The basis on which this increase is awarded is a)
observational analyses of the seniors / bosses and b) the extent to which the goals submitted are
actualized. Non monitory rewards are also given in some cases in the shape of certifications and
appreciation letters.
CHAPTER 5
MARKETING MIX / PRINCIPLES
Marketing Mix refers to
The set of marketing tools that the firm uses to pursue its marketing
objectives in the target market.
• Market Structure:
Market structure is basis for every business organization. Bank Alfalah Limited’s target
market consists of individual clients as well as a number of business organizations. Due to different
market segments, Bank Alfalah Limited’s different branches have their target markets. Due to
specialized services provided by Bank Alfalah Limited and its highly competitive foreign exchange
rates, most of the major importers in this area deal with Bank Alfalah Limited. So I can say that bank
Alfalah has a very strong market base.
• Consumer Needs
Assessment of the needs and wants of consumers is an on going process at Bank Alfalah
Limited that helps it to continually develop new products and services. At Bank Alfalah Limited, the
philosophy is that the bank should go to all possible limits to satisfy the customer needs. The officers
of the Import Department, for example, try to get the minimum possible exchange rates for their
clients. Those in Cash Department do not look at the clock while honoring the cheques.
The bank is continuously formulating new products and services for the growing and
diversified needs of its ever-expanding client base. The bank’s commitment to its customers is
evident from its objective:
“To provide innovative and high quality products to its customers at the lowest possible rates.
To achieve all set goals regarding service, performance and goodwill.”
MARKETING GUIDELINES
The marketing management has made some core policies for better service and consumer
satisfaction. They can be summarized as:
It is the function of the organization to keep the constant touch with the consumers, their
needs, develop products, that meet their needs and build the aim which express organization purpose.
Thus the customers, employees and investors fall into the category of bank’s market. Marketing
means making exchange of goods and services possible. Once a banker identifies its prospective
customers, his marketing strategy becomes easy. The next step to find out the banking requirements.
Bankers also try to locate their past customers for offering the more facilities to them.
MARKETING PRINCIPLES
For providing marketing services to the clients, Bank Alfalah Limited has formulated certain
principles. Bank Alfalah’s target market consists of individual clients as well as a number of business
organizations. Due to different market segments, Bank Alfalah Limited’s different branches have
their target markets. The principles are :
• We should have full knowledge about the business background, behavior and the life style of
our clients.
• We should have full knowledge about our self and about the bank where we work
• Make maximum use of the information provided by the management information systems and
once a contact is established with the client, always try to pursue on the call of the client any
time, the approach of the marketer should be friendly rather than a business like.
• We should frame a definite program about the areas to be covered.
• We should know what is going around us. Who are our competitors, what product and
services they are offering and at what rates
• We should have a sound knowledge about our profession, current rates of interest and market
trends.
• We should try to work with team spirit
• We should not be too internally focused view on unlimited prospects but to widen our
perspective.
• We should render quick, efficient, and personalized service to our customers. Be always ready
to react and readjust to a change in the market and customer’s attitudes
Assessment of the needs and wants of consumers is an on going process at Bank Alfalah
Limited, which helps it to continually develop new products and services. At Bank Alfalah Limited,
the philosophy is that the bank should go to all possible limits to satisfy the customer needs.
Following ratios are used for the analysis of the balance sheet and income statement of the bank
Alfalah limited.
Liquidity Ratio
“Liquidity reflects the adequacy of the institution’s current and prospective source of liquidity
and funds management practices”
A financial ratio indicating a company’s ability to meet its short term financial obligation. It’s a ratio
between Liquid assets (that can be converted to cash)to short term liabilities. Greater the coverage the
more likely is that a business will able to pay its debt and vice-versa.
Commonly used liquidity ratio are:
Current Ratio:
The ratio is mainly used to give an idea of the company’s ability to pay back its short-term
liabilities ( debt and payables with its short-term assets (cash, inventory, receivables). The
higher the current ratio, the more capable the company is of paying its obligations.
Current Ratio = Current Assets/ Current Liabilities
2015 2014 2013
Current Assets 579,376,921,000 509,062,037,000 441,072,836,000
Current Liabilities 558,184,252,000 486,777,467,000 424,820,317,000
Current Ratio 1.038 1.046 1.038
INTERPRETATION:
Current ratio gives an idea of company’s operating efficiency. Bank Alfalah Limited current ratio is
acceptable in 3 years it means current assets of the bank are enough to settle current liabilities. This
ratio is remain same in 2015 and 2013 but it is slightly high in 2014 that shows the ability of bank to
meet its short term obligations in a good manner. A high ratio indicates safe liquidity, but it also can
be a signal that the bank has problems getting paid on its receivable or have long run inventor.
Quick Ratio:
Quick ratio is a conservative approach to assess the liquidity. Quick ratio measures company’s ability
to quickly liquidate assets or use cash on hand (assets that convert to cash in under 90 days) to pay
business obligations like suppliers, landlords, taxes due, etc, your actions to improve this ratio.
INTERPRETATION:
In 2015 and 2013 it is approximately close to each other but in 2014 it is significantly increasing as
compared to other two years that shows in 2014 bank has the ability to convert its assets quickly into
cash. In 2014 Alfalah has maximum assets to pay out its current liabilities.
Working Capital
Working Capital = Current Assets – Current Liabilities
INTERPRETATION:
Working capital gives an idea of Bank’s efficiency. In 2014 it is more than other two years so it
indicates working capital of Alfalah is good in that year more. Positive working capital ratio shows
that Alfalah is able to pay off its short term liabilities. Also a high working capital can be a signal that
the bank might be able to expand its operations.
DEBT RATIOS
Debt ratio, defined as an expression of the relationship between a company’s total debt and assets, is
a measure of the ability to service the debt of a company. It indicates what proportion of a company’s
financing asset is from debt, making it a good way to check a company’s long-term solvency. In
general, a lower ratio is better. Value of 1 or less in debt ratios shows good financial health of a
company.
Debt Ratio = Total Liabilities / Total Assets
2015 2014 2013
Total Liabilities 578,712,547,000 506,219,292,000 442,396,764,000
Total Assets 610,614,291,000 536,466,694,000 468,173,802,000
Debt Ratio 0.948 0.944 0.945
INTERPRETATION:
In 2015 debt ratio is 0.948 that is 95% as compared to other two years, which show high solvency
risk. Debt ratio is increases from 2013 to 2015 that show bank financed large part of assets in 2015
greater than 2013.
INTERPRETATION:
Debt to equity ratio of Alfalah is not good. As the ratio in all three years greater than 1 which
indicates that the portion of assets provided by creditors is greater than the portion of assets provided
by stockholders. It also means that creditors are not finding a suitable protection of their money as
debt.
Profitability ratio
Return On Total Assets:
ROA gives an idea as to how efficient management is at using its assets to generate earnings.
Calculated by dividing a company’s annual earnings by its total assets, ROA is displayed as a
percentage. Sometimes this is referred to as “return on investment”.
Return on Total Assets (ROA )= Earnings Available For Common Stock/Total Assets
INTERPRETATION:
Return on assets ratio indicates that Alfalah Bank earned 0.77% in 2015, 0.85% in 2014 and 0.75% in
2013 on each unit of assets. If we compare the ratio of three years then return on assets is high in
2014 as compared to other two years . Alfalah efficiently utilize their assets in 2014 to generate sales.
But in 2015 it falls that shows low profitability due to inefficient utilization of assets as a result less
sales generate which gives low profit.
OPERATING PERFORMANCE
Pretax Profit Margin = Earnings Before Taxes / Sales
2015 2014 2013
Earnings Before Taxes 6,807,211,000 6,783,202,000 5,433,718,000
Sales 43,961,060,000 46,079,918,000 44,298,178,000
Pretax Profit Margin 15.48% 14.72% 12.27%
INTERPRETATION:
In 2015 it is 15.84% than other years’ that are 14.72% in 2014 and 12.27% in 2013 that shows overall
profitability and good sign of Bank position. In 2015 it is high due to lower expenses it means
expenses of the Alfalah are under its control so for this it has high profit before tax.
INTERPRETATION:
Alfalah gross profit ratio was good in 2013 but it has decreased in both 2014 and 2015 which is
indicating that bank is unable to control its production cost due to which it is decreasing. In 2013,
bank was making a reasonable profit by keeping its overhead cost in control. But in 2014 and
especially in 2015, bank is unable to control its overhead cost and other expenses.
INTERPRETATION:
In 2015 it is 15.48% than other two years. Alfalah has low gross profit and low expenses due to
which it has high operating profit in 2015 than other two years. This is a good sign for Bank that
shows bank has operating efficiency to meet its expenses.
INTERPRETATION:
In 2015 it is high than other two years that shows the efficient management of the affairs of bank as
compared to 2014 and 2013. It also indicates that Alfalah is able in converting its revenue into actual
profit due to high operating profit.
Activity Ratio
Inventory Turnover = Cost Of Sales / Inventory
2015 2014 2013
Cost Of Sales 27,066,229,000 27,500,056,000 25,687,485,000
Inventory 219,690,369,000 189,486,762,000 166,531,768,000
Inventory Turnover 12.32% 14.51% 15.42%
INTERPRETATION:
Alfalah asset turnover ratio is high in 2013 as compared to other two years but overall ratio is
satisfactory and Alfalah generate more sales with excess assets. It has high turnover ratio in 2013 that
tells it has good because it is using its assets efficiently. The slightly fluctuations in this ratio show it
can be due to problem with current assets, inventory or account receivable of bank.
INTERPRETATION
The Asset of Bank Alfalah has been growing very fast. This growth is the result of the massive
expansion policy the management has been following ever since the inception of Bank Alfalah Ltd.
One of the important ingredients of any commercial bank growth increase in most of current assets
that is good sign as it increases their liquidity. Let’s us first have look at the liquid assets. In earning
assets, the lending to financial institution is decreasing whereas the other investments and advances
continuously.
The reason of decreasing in cash in 2014 is because bank is maintain less cash in hard for liquidity
problems bank increase cash in hand and reason of increase in cash with treasury bank is that bank is
maintain the reserve with SBP and other foreign central banks to maintain the minimum capital
requirement.
Equity is only constituting 23.8% of total liability and equity in 2015, again with a minor de crease of
17.3% in 2014 thus indicating that liability is taking major proportion of Bank’s total liability and
equity section.
In the liabilities section of the balance sheet main liability of the bank is its deposits generates from
its customer. Banks Share capital as well as inappropriate profits is increasing at increasing rate. The
reason of increasing in borrowing from other financial institutions that bank has not sufficient deposit
account in this year so the bank has needed to borrow from the other financial institutions. The reason
of increasing of liabilities of bank is that bank has increase in deposit and other liabilities. It is a good
sign for the bank because its income generated item.
% Effect % Effect
Decrease Decrease
Deferred -8845.4% -4520.9%
Prior years -34444.4% Decrease -45555.6% Decrease
1039.4% Increase 1535.8% Increase
Increase Increase
Profit after taxation 3347.9% 3005.9%
INTERPRETATION
The horizontal analysis of income statement shows that the ratio has increased in 2015 with 33.4% as
compare the previous year’s 2014 that is 30.4% which indicates that the profit has increased .markup
increased due to increase in advance of the bank. Bank has earned more from its primary objectives
mean sanction loan to its customers. Bank has also earn from other sources like investment, deposit
with financial institution, securities purchased under resale agreement.Net markup increased
normally as increased in previous ratios.
It is the good sign for the bank has maintain the previous ratio and increase in slightly .bank has
earned less in foreign currency because in this year the rates of foreign currency decrease. The reason
of increasing in the value of unrealized loss on revolution of investment is that the stock market
condition of Pakistan. The stock market is decline to its minimum level.
In end concluded that Net markup increase in previous ratio and increase in slightly. Bank should
more work in this ratio. Current year text increases because the back has net profit more as compared
to previous year. Bank has deferred tax for the coming year in this year much more as compare to
previous year
Operating fixed assets are in more 2014 as compared to other years. In 2014 there is small decrease in
cash and balances as compared to 2015 year.
Basic reason is economic instability of the country and bank is increasing its liquidity and increasing
its income because of its good interest rate. The ratio is increase in all years but in most significantly
more in 2014.The main reason are good business policies of bank management, bank sound policy
and management good decision because bank do want to take any risk.
Total Equity also shows an increase of 5.6% in 2014 and slightly decrease with 5.5%. Thus indicating
that liability is taking major proportion of Bank’s total liability and equity section.
The liabilities more in 2014 as 94.8% as compared to 2015 as 94.4 year because of higher decrease in
deposit and liabilities against subject to financial lease and bills payable. Share capital shows and
increase in all year because there is an increase of right share. There is continuous increase in asset of
bank from year to year.
INTERPRETATION:
The vertical analysis of income statement shows the markup income in increasing 40.33% in 2014
and decrease 38.4 in 2015 .This incremental in 2014 is because of interest earned on loans an interest
on securities purchased which means that bank basic earning come from interest income from
advances. The total non –markup income decrease in 2015 which is a good sign for the bank as bank
is earning more from its primary function. On markup interest expense is a major component of total
expense. Its constitute 32.99%revenue in 2014.The decrease trend due to heavy expenditure in
operations, the advertisement and the expansions of branch network.
Interest expenses showed a significant change as compared to interest income. In 2014 these
expenses were 33.3% which reached 39.3 % by 2015.
Profits before taxes in 2014 were very marginal with a percentage of only 14.7% which rose to 15.5%
in 2015 however by adding taxes they came down to 9.9 % in 2014 and 10.6% in 2015.
Recommendations
• Bank should introduced incentive plans for employees on regular basis so that if
employees may work whole heartedly for the welfare of their organization. While
giving incentives qualification, work, experience, hard work and such other
factors must be considered.
• Bank should adopt such an induction plan that when a customer opens his account
with the bank he should be supplied with a booklet which enables him to know
the procedure of filing the cheques, pay-in-slip etc. It will save a lot of time of the
bank staff afterward during the conduct of the account of that customer.
• The attitude of the bankers with all of their customers is not the same; they pay
more attention and good service to some of the customers and neglect a major
portion of them. Some of the customers approach to the bank officials and get
their work done before others; it is not a good practice. All the customers should
be treated equally.
• Bank Alfalah should increase its communication with customers about the terms
and conditions of its different products and services.
• Misuse of telephone internet, fax machines and other facilities available to the
employees of the bank must be handled properly.
• In Bank Alfalah mostly recruitments are done through recommendations or
references of employees. Recruitment should be strictly on merit with no other
favor given to any candidate. Selection should be on the basis of test and
interview; this will ensure the entry of competent and worthy employees into the
bank.
• The Bank Alfalah should get into contract with top foreign universities. Every
year the bank should finance and send their senior managers for further education
abroad. After completion of higher education employees will be in a better
position to attain the strategic objectives of the bank and increase the overall
business and profitability portfolio of the bank. The branch network should be
improved and number of branches should be increased to reach and provide
services to maximum number of customers.
Conclusion
In the above pages you have not just gone through an internship report, rather you have
witnessed such an experience that I would certainly cherish for a long time to come. The 6 weeks
spent at Bank Alfalah Limited Islamic Banking, 66 Main Boulevered branch were, no doubt a
source of immense learning for me. This practical training program did not only help me acquire
loads of knowledge about the predominant functions performed by banking companies, but also
imparted a lot of training as regards the set of behavioral traits which distinguish a particular
person from the rest of the lot in a professional environment.
At this point it certainly is significant to write a word of gratitude for the institute’s
administration, which makes it sure, that all the students get an exposure to practical life in
relatively well-reputed organizations.
I must underscore the fact that writing this internship report was an evenly memorable
experience as actually ‘doing’ the internship. I honestly tried my level best to come up with an
original piece of writing that could serve as a vivid proof of the fact that students at Hailey
College of Banking & Finance are certainly no mug at what they do. I truly hope that this report
also certifies the fact that all of my worthy teachers performed their duties of academic guidance
and moral mentoring with utmost efficiency and effectiveness.
Bank Alfalah limited is a new emerging bank and it is trying to get market share in the presence
of national and foreign banks operating in the country. It has played an important role in boosting
the economy of the country but there always exists some room for improvement. After observing
this Bank very closely and its HR department in particular, following outcomes have been
concluded.
• The decision making is still centralized as the middle and low level management is not
taken into confidence.
• There are no sub divisions at the provincial or branch level. So when different problems
related to HR are raised, they are left unaddressed.
• Employees just know how to use their part of software if any problem comes in the
computer they can’t fix it.
• The spacing requires expansion. The employees are seated congested .If the Customers
exceed more than fifteen in number, then the branch get filled with lot of disturbance.
• The marketing efforts at the branch level are less disciplined and there integrated efforts
from all the staff members. The mobilization of deposits is mainly considered as the
responsibility of the branch manager but the rest of the staff is usually least interested.
• Staff of the branch has been found less motivated towards the organizational objectives.