History of Bank Alfalah starts from Bank of Credit and Commercial International “BCCI”. BCCI was incorporated in Luxembourg on 21st September 1972 with the paid up capital of US $ 2.5 million. By early 1973 BCCI has established its first four branches in, • • UAE UK

With the passage of time the branch network of the bank expanded rapidly in different regions of the world i.e. Far East, Middle East, Africa, Europe and Western and Latin America. Its founders were an influential and professional team possessing an intimate knowledge of East Asian and Middle East countries, particularly those with oil resources and expertise for sophisticated of three most important elements in the early formation of organization, e.g. • • • Investors from the oil producing countries of Middle East A business connection in expanding markets A well developed and fully equipped management structure • • • Karachi Lahore Rawalpindi

There were three branches of BCCI in Pakistan. These were in,

Bank Alfalah Limited was incorporated on June 21st, 1997 as a public limited company under the Companies Ordinance 1984. Its banking operations


commenced from November 1st, 1997. The bank is engaged in commercial banking and related services as defined in the Banking companies ordinance, 1962. The Bank is currently operating through 274 branches, with the registered office at B.A.Building, I.I.Chundrigar, Karachi. Since its inception, as the new identity of H.C.E.B after the privatization in 1997, the management of the bank has implemented strategies and policies to carve a distinct position for the bank in the market place. Strengthened with the banking of the Abu Dhabi Group and driven by the strategic goals set out by its board of management, the Bank has invested in revolutionary technology to have an extensive range of products and services. This facilitates our commitment to a culture of innovation and seeks out synergies with clients and service providers to ensure uninterrupted services to its customers. We perceive the requirements of our customers and match them with quality products and service solutions. During the past five years, we have emerged as one of the foremost financial institution in the region endeavoring to meet the needs of tomorrow today. Bank Alfalah has continued its upward climb in pursuit of excellence. Strengthened by the banking of the Abu Dhabi Group and driven by strategic goals set out by its Board and Management, Bank Alfalah increasingly inspires trust and confidence of all its clients. With in a short span of time the bank has carved a significant niches for it self in the banking industry. The team of the bank comprise of dedicated professional equipped with a divers array of skills, vast experience and pro-customers attitudes. Bank Alfalah aspires to evolve as the premier banking institution in the country the bank Alfalah adequately prepares the organization to cope with unexpected challenges to deliver products and services more efficiently. Customer satisfaction will always remain the number one benchmark as they forward 2

towards attaining their goals .The be employ and retain an unparalleled work force of highly motivated, energetic, well trained and productive employees. The bank Alfalah offers an inspiring work environment, competitive salaries, excellent benefits and caring leadership. Bank Alfalah promote strong and ethical business practices in the industry of focusing more on the effective collaboration with their stakeholders team members remain aware of the organization’s commitment to them as well. They strive to achieve the superior financial performance to be considered a leading bank in Pakistan by reputation and performance, and to be a good corporate of the communities they serve. The bank cultivates a sense of ownership amongst the employees, with the overall business plan and the direction in which their organization is headed. Their corporate strategy focuses on striking the optimum balance in organizational work flows and process .The dynamic environment in which the bank operate implies to them to remain poised for the unexpected as the competitive pressures mount. Consequently business process reengineering and branch marking remain notable guidelines for strategy development.

Board Of Directors

H.E. Sheikh Hamdan Bin Mubarak Al Nahayan Chairman


Mr. Abdulla Nasser Hawalileel Al-Mansoori Director

Mr. Abdull Khalil Al Mutada Director

Mr.Khalid Mana Saeed Al Otaiba Director

Mr. Ikram Ul-Majeed Sehgal Director

Mr. Nadeem Iqbal Sheikh Director


Mr. Sirajuddin Azi Director & CEO

To be the premier organization operating locally & internationality that provides the complete range of financial services to all segments under one roof.

To develop & deliver the most innovative products, manage customer experience, deliver quality services that contributes to brand strength, establishes a competitive advantage and enhances profitability, thus providing value to the stakeholders of the bank.

Branch Network
Bank Alfalah has total 274 branches operating in Pakistan and overseas, some Detail is as under:-


A.T.A.E.I.C.S Branch  Timber Market Branch  Defense Housing Authority Branch  Gulshan-e-Iqbal Branch  Jodia Bazar branch  Korangi industrial area branch  M.H.I.E Branch  Paper market branch  North Karachi branch Lahore  Gulberg branch  Defense branch  Circular road branch  Township branch  LDA Plaza branch  Badami bagh branch  Allama Iqbal Town Branch  Shah Alam Market Branch 6 . Jinah Road Branch  North Napier Road Branch  S. I.Karachi  Main branch. Chundrigar Road  Cloth market branch  Karachi Stock Exchange Branch  Clifton branch  Shah rah-e-Faisal Branch  P. Building. B.

Rawalpindi  Mall road branch  Satellite town branch Peshawar Peshawar Branch  Peshawar City Branch OTHER BRANCHES Other branches are in:  Hyderabad  Sukhar  Rahim Yar Khan  Multan  Sialkot  Islamabad  Jehlum  Quetta  Mingora. Swat  Faisalabad  Gujranwala  Sargodha  Bahawalpur  Dera Ghazi Khan  Gujrat  Sahiwal 7 .

Bank Alfalah has launched Credit Cards. iii. vii. They are continuously formulating new products and services for the growing and diversified needs of their ever-expanding client base. ii. ATM Cards. vi. PLS Saving Account Royal Profit Basic Banking Account Alfalah Kifayat Alfalah Mahana Amdan Alfalah Education Current Account 8 .Bangladesh  Bahrain  Kabul  Manama Products & Services The bank’s primary objective is to provide a wide range of financial products and services to individuals and various other entities in the country. which are prime examples of quality innovation. v. Following are the major products of Bank Alfalah Limited. providing timely banking opportunities to their customers: • Deposits i. Mardan Overseas Branches  Chittagong. Bangladesh  Dhaka. iv.

ii.• Advances i. Funded Non-Funded • • • • • • • • • • • • Trade Finance Lease Finance Credit Cards Home Loans Auto/Vehicle Loans Lockers Debit Card ATM Agri Loan Money Gram Alfalah Online Banking Alfalah ATM Facilities DEPARTMENTS Functioning of BAL is dived into following departments. 1) 2) 3) 4) Operation Department Foreign Exchange Department Credit Department Accounts Department OPERATIONS DEPARTMENTS Operation Department has following segments. a) b) Cash Clearing 9 .

Customer is guide to fill all columns of AOF. Procedure of Account Opening It is very simple and quick procedure. A person who wants to open an account must have the introduction of bank’s staff or any already existing account holder of bank. All formalities and requirements are completed and verified. The customer is required to fill an account opening form. Then signatures of the introduce are verified from S. AOF (Account Opening Form) is very standard and up to the mark which contains almost whole information about customers. and all supportive documents are taken 10 .S.c) d) e) Remittance Account opening Accounts department OPERATION DEPARTMENTS Operations department of the Bank Alfalah Limited is responsible for the overall operations of the bank. Card before opening account. Following procedure is adopted for this purpose. a) b) c) d) e) Account opening Cash department Clearing Remittances Online Transactions ACCOUNT OPENING DEPARTMENT It is most important department of bank and its major source of income for bank.

 Signature of customer on back of AOF.C photocopy attached. 1000/-. cheque book is not issued until it is fulfilled. PLS (profit and loss sharing) saving accounts can be opened with the minimum balance Rs. Thumb impression should be fixed in front of an officer of the bank. Following requirements has to be fulfilled for this account.I.  Mention next of kin (nominee)  Name and A/C # of introducer. If a person cannot sign his / her hand thumb impression is affixed marked. If any formality is incomplete. It is called dormant account. TYPES OF ACCOUNTS The bank different types of accounts exist. The bank does not make payment of a cheque bearing a six months or older date.  Customer signature admitted by officer. which is attested by one male or two female witnesses. Thumb impression for female right hand and for male left hand. If an account is not operated in six months. They also have to give identity letter 1) 2) NIC copies Passport size photograph One place on the form other is on SS Card they have non-bearer cheques. 11 .  N. 1) INDIVIDUAL ACCOUNT Any individual or proprietor of business can open an individual account at BAF.and checked according to the nature of account.  Verified sign of introducer. On their cheque book a stamp is affixed on it there is written.

When two or more person neither partner nor trustee open account in their name is joint account. 12 . 3) BUSINESS ACCOUNTS When the owner of the firm operating singly. Joint A/C cannot be opened by single person.  Mode of operation. Three types of Accounts are here for Business Accounts: a) Sole Proprietor Account b) Partnership Account c) Limited Company I) SOLE OF PROPRIETOR ACCOUNT This account is for those people who have his own business of the business he is one owner of the firm. Requirements  Sign of both customers on back of AOF  Sign on joint A/C # mandate  Name and A/C # of catrodiecer  NIC copies of both members. card. open an in his term name.S. 2) JOINT ACCOUNT When more than one person open a single account it is called joint account. Both persons have to sign on cheques. Letter of thanks. The names of persons are written on the title of A/C and on S.

 NIC copies of partners  Partnership deed (certified copy) duly attested by notary republic. Requirements  Sign of customers on back of AOF.  Sole proprietorship declaration II) PARTNERSHIP ACCOUNT Account title will be the name of the partnership firm.  Partnership mandate (prescribed format)  Companies rubber stamp The A/C is opened in the firm name and all partners designate one or two persons to act behalf of the partnership firm all acts of the firm jointly and severely.  Sign on AOF (Account Opening Form)  NIC copy  Verified signature of introducer.Requirements  Companies stamp  Declaration of proportion companies’ letter head. III) 1) 2) LIMITED COMPANY Private Limited Public Limited Limited co: 13 .

 Companies’ rubber stamp. co register an office stamp should be affix.  Sing of all directors on back of AOF. 14 .  Latest form 29 (if director is to be changed or in case of his death. Code Of Accounts Saving account Current account Royal profit Royal group FSB FCP EURO 02 01 029 05 028 018 0287 PUBLIC LIMITED 1) 2) Certificate of commencement of business Same as home documents.  List of directors on company’s letterhead.PRIVATE LIMITED Requirements  Restrain on companies letterhead dully attested by chairman.  NIC copies of all directors. it includes information that a new director has how much number of shares with him. this kind of form is filled.  List of memorandum and article of association.  Copy of board resolution.  Copy of certificate of incorporation should be attested by Director.

This resolution must bear the trust stamp and at the same time must be attested by the company secretary. They have their own rules and regulation and their affairs are mentioned by the committee called as a governing body or managing committee. Letter of registration.Club / Society / Association These concerns are non-trading in nature. Name of person to be specified for the operation in account. Bank account opened in their name with BAL. Trust Certified Copy of Trust Deed 1) Certified copy Of Buy Laws 2) List Of Trustees 3) Board of resolution resolving to open an account with BAL along with the signing instructions of the authorized signatures to operate the account. 4) NICs of all the trustees 15 . The manner in which the account shall be operated. 1) 2) 3) 4) 5) 6) 7) 8) 9) Stamp of directors NIC copies Certified copy of resolution Memorandum and article of association List of heads on companies’ letter head.

It is assured that series of the chequebook. In the system (Bank Smart) Stock of chequebook are balanced at the end of each day and kept under safe custody. Particulars of the chequebook requisition should be completed containing title of account. Particulars are entered in the chequebook issuance register. account number. It proceeded as under. Account number is stamped on very leave of the chequebook and those leaves are counted. Chequebook is delivered to the customer and his signature on the chequebook issuance register. in such case. 16 . Chequebook serial number entered. then he can give authority to the third person to collect his cheque book on his behalf by signing on the back of the requisition. stamped and signed by officer of the bank. number of leaves and signature to the customer. Signature of the customer is verified on the requisition. type of currency. the particulars of the third person are required like name of the person NIC number and signature of that person on requisition and cheque book issuance register.CHEQUE BOOK ISSUANCE When the account is opened. PROCEDURE All the account opening formalities must be completed before issuance of chequebook. then the customer is given a chequebook to sign upon and enact money. Chequebook is taken out from the safe / locker. And requisition on the chequebook for further issuance is properly filled. If customer is unable to collect his cheque book. Name of account holder is written on the cover of the chequebook.

CASH DEPARTMENT Cash department of Bank Alfalah works under the operation department.Earlier the banks were charging a fee for issuance of cheque book but now whenever a new account is opened. the account holder issued a cheque book free of charge. For this closing a fee of Rs.is charge in BAF. Bank Alfalah issues the following chequebooks. It is also responsible for the book keeping of these transactions and the safe custody of cash. The manager first verifies the sign of account holder.  Saving account-25 leaves  Current account 50 leaves. 150/. 17 . Closing of Account When a customer wants to close an account he has to given a hand written application to the head of the operations department to close his account plus remaining leaves of cheque book.  Current account – 25 leaves  Foreign currency $ 10 leaves  Foreign currency 10 leaves Loose cheques are also issued in some cases. this department is given the complete responsibility of cash. In the file of the account holder his account opening form is crossed. then closing is done from the registers on the computer where the account was opened. as result of transaction in touch local and foreign currencies.

cheque serial number. crossing if any. amount in words and amount in figures. Account is debited and 18 . twice counted and matched with the deposit slip. Deposit slip is credited and posted in the concerned accounted in the system. Cash received stamp is affixed on the face of the deposit slip along with the signature of the cash receiving officer. account number. one signature of the holder is taken on the back of the cheque. Cash is received by cash receiving officer. CASH PAYMENTS OF CHEQUE cash payments process for payment of cheques local and foreign currency is same. Detail on both counter file and cash receipt voucher should be the same. The cash details are written on the back of the deposit slip and are also entered in cash receiving register. Deposit slip and cash receiving register is given to the officer in the cash department. a) b) Cash receipts Cash payments CASH RECEIPTS In cash department depositors use deposit slip for depositing the amount into their accounts. The officer cash department both on cash receipt and cash receiving register makes again proper scrutiny. The officer checks if the deposit slip is properly filled up containing title of account.This department performs the main function. payee’s name. First the cheque is presented by the customer or holder to cash payment officer. Cheque is handed over to the officer cash department for scrutiny where officer checks the date. A/C number date and amount in words and figures. any material alterations / endorsements and signature of the customer. One consolidated cash debit voucher is posted in the system to balance the cash. Officer cash department signs both the deposit slip and register. Counter folio is given the deposition as receipt. He confirms’ that it is drawn on the same branch and the particulars of cheque are properly filled in.

This facility is provided by the state bank of Pakistan for offsetting of cross obligations between the different banks. Entry is passed in the cash payment register. 1) 2) Inward clearing Outward clearing Inward Clearing When cheques drafts. Cheques to be honored by bank. Cash paid stamp is affixed on the face of the cheque.then cheque is cancelled by the officer. CLEARING DEPARTMENT “Exchange of Cheques and balance of accounts” “The process by which cheques exchanged between the collecting and paying bank and the ensuing financial settlement is called “clearing”. and then cash is paid to the cash detail is written on the back of the cheque. Cheque is handed over to the cash payment officer for payment. Outward Clearing 19 . of our branch presented to us for clearing by the SBP. Clearing is of two types. One more signature on that back of the cheque is taken from the holder to match with the first one. It is posted in the system and posting stamp and number is affixed on it. etc.

The cheques of other banks that the account holder deposits in their accounts are send for collection. Counter folio of paying slip is handed over to the customer by putting stamp for cheque received for collection for Bank Alfalah on it duly signed by officer. Cheques of each bank are sorted and arranged branch wise. Clearing process (Inward/Outward) Here the local cheques are received that are drawn on BAF. These cheques are scrutinized and cheques for local clearing are separated from OBCs. endorsement and clearing stamps are affixed on the cheques. Special crossing. Details of these banks are then entered into the clearing schedule containing number of cheques presented and their total amount against the name of each bank. With the cheques of each bank. Cheques are scrutinized properly and paying slips are separated from cheques. Print out of the clearing is taken and details are attached. Then total number of cheques presented 20 . All the cheques are then entered into the clearing system of bank. Clearing officer checks and verifies title of all the cheques deposited by the customer to confirm the good title of the cheques. All the cheques are received on one counter along with the paying slips duly filled in properly containing particulars of cheques and account holder. These are then entered in clearing register and cheques for collecting are entered in OBC register and handed over the bills department of collection.

Total number of cheques and their amount delivered to other banks are received from them are written on the clearinghouse schedule and handed over to the officer clearing house SBP. For this purpose. If any cheque is to return. which is tallied with the clearing register. REMITTANCE DEPARTMENT Remittance is transfer of funds from one city to another city or within the city. other banks present their clearing drawn on Bank Alfalah. these cheques are delivered to the respective banks in clearinghouse of SBP between 9:00 to 9:30 AM. they receive it and once again give schedule of clearing figure to the officer-clearing house SBP containing number of cheques and their amount delivered and received unpaid. In the same manner. In the same manner. that is delivered to the same bank in second clearing. most commonly used instruments are 21 . Cheques / DD received in clearing are given to the officer cash department of the branch for their repayment.to all banks and their total amount is written on the foot of that schedule. After I proper scrutiny of cheques. verification of signatures and confirmation of balance in the account. officer cash department returns the same cheque by attaching a cheque return memo containing reason for return. This cheque is entered into the cheque returned register and bank charges are deducted according to the schedule of charges. If any cheque is not passed due to insufficient balance or any other reason. Next morning. if any cheque presented by Bank Alfalah in first clearing is returned. Second clearing is called at 2:30 PM to check the fate of the cheques presented to other banks in the morning. officer cash department pays these cheque by canceling and posting them in the system.

Issuance of Duplicate DD: 22 . If DD is crossed amount is transferred into payees account. these charges vary with amount and are as follows: Internal Process: After issuing demand draft. When all these formalities are fulfilled. The client mentioned the name of payee in the favor of which it is to be paid. he can give cheques instead of cash upon which the banker transfers the amount from his account.1) Demand Draft 2) Pay Order 3) Telegraphic Transfer 4) Online Transaction 1. he deposits the amount in cash with the bank. The banker gives him/her an application form to fill and ask him to deposit the amount for which he needs draft. Issuance of Demand Draft: The customer makes a request to the banker for a demand draft. payable on demand to the order of the payee mention therein the draft. the name of branch on which it is drawn and amount of draft on the form and puts his signature on it. bank pays cash against it after checking N. When DD is presented on the cash counter.C of payee and debits DD payable account. Posting is also made in the computer terminals for the purpose of record of the bank. Drawee bank after receiving credit advice gives credit to DD payable Account. In bank Alfalah. Demand Draft: A demand draft is an instrument in writing drawn by one branch of a bank on another branch of the same bank for a certain sum of money. Afterwards. Bank takes charges for demand draft that are different in different banks according to their schedules of charges.I. banker issues him a demand draft. In case he is Account Holder of the same bank. bank sends a credit advice to the bank on which it is drawn.

client wants to cancel the draft he has to make an application with his signature.Bank can issue duplicate of demand draft on clients request after taking charges. The banker gives him an application form to fill and ask him to deposit the amount for which he requires the pay order. the amount is transferred into the payees account. Cancellation of DD: In case. Posting is made in the computer terminal. Internal procedure: After issuing Pay order. 2. The client deposits the amount in cash with bank. Pay Order: A pay order is an instrument in writing issued by bank for a certain sum of money payable on demand to the order of the payee mention within the city. Bank takes charges for issuance of pay order which varies from bank to bank. The charges are Rs 100. If he is account holder of the same bank. he can give cheque upon which amount is transferred from his account. When Pay order is presented on cash counter bank makes payment against it after checking N. where as pay slip is used for bank’s internal use.C of payee and Sundry creditors account is debited. The cancellation charges are Rs 100. Issuance of Pay Order: The client makes a request to the banker for issuance of a pay order. banker gives credit Sundry creditors account. Amount of draft is returned to client after deducting cancellation charges. After the fulfillment of all these requirements banker issue the pay order to the customer. Bank Alfalah takes the following flat charges. 23 . Banker checks the signature. If it is crossed.I.

he/she can have payment from Lahore. TT is made through codes. But now banks have adopted a new system known as Online Transfer. and branch to branch. Process: • • • • • • Customer obtain a requisition slip and fills it properly After filling the application from the concerning officer fills the TT form. The charges for both the services are Rs. a copy of cheque is 24 . 4. The bank has settlement with other banks according to which the banks can make the payments to the customer’s account mentioned by the other bank in the TELEX. Bank sent telegrams with codes and in banking language using the words test. Bank debits the account of the customer or receives cash including charges of the bank. In this case proper authentication is must for this purpose. This Telegram is send to he required bank. 3. fro instance if a client has taken Online Transaction facility and presents Islamabad’s cheque to Bank Alfalah Lahore.Cancellation and Duplicate issue: The procedure for cancellation and duplicate issue of pay order is same as that of demand draft and the charges are also same.100. previously TT was used. In online transactions cheques of different branches can be paid. If the cheque has been cleared from Islamabad Bank Alfalah. After receiving the telegram bank immediately makes the payment to the customer and the vouchers sent to the issuing bank by ordinary mail. Online Transaction: For branch-to-branch transfer of funds on the same day. Telegraphic Transfer: Telegraphic Transfer is bank to bank.

Budget is based on forecasting and their own inspiration for future. The targets determined Deposits. the branch then checks the client’s balance. If the cheque is given clearance from the respective branch then payment is made to client. the branch is then debited and the branch that has made payment is credited. Following activities are carried out in the accounts department:  Budgeting  Reports  Funds management  Activity checking  Reconciliation  Foreign exchange. Accounts Department In any Bank the accounts department plays a major role. date of cheque and signature of client. old Account Contracts  Maintenance of fixed assets and calculation of their depreciation  Test Keys Budgeting The main task performed by the accounting department is the preparation of the budget.made and is faxed to appropriate branch. Advances. The use of the computer system increases the efficiency and pace of the bank’s work. and revenues. This is one important task on the basis of which funds are allocated to various branches and also the targets are determined. In Bank Alfalah the burden of the accounts department is largely reduced because of computerization. Every branch prepares its own budget for the fiscal year and then budgets of all 25 . whereas forecasting is based on past performance.

The revenue target is fixed keeping in view the past performance. Then budget of each branch is submitted to head office for modifications and for approval. 26 . Before the preparation of budget the bank reviews its sources and funds it has and the uses of those sources. In this way a consolidated budget is also prepared. Investment in securities. Capital. Accounting department starts preparing the budget from October for the next year. The main sources of the bank are the follows: • • • • • Deposits. etc The main uses of a bank are the follows: Advances. If there is a negative variance. this shows management’s inefficiency in controlling its expenses or incompetence in achieving the desired revenue targets. Monthly budget meeting is held to analyze the monthly performance by all the branch mangers with head office. The actual performance is compared with the estimated and variance is calculated. placement in interbank markets. Expenses. Variance can be negative as well as positive. Proper adjustments are made in the next month’s target according to the previous month’s performance because sometimes the goals which are set by the head office are unrealistic and unachievable.the branches across the country are consolidated at the head office in Karachi. The cost of generating these revenues is also estimated. etc. Other things which are undertaken into account while formulating the budget are: Income. Fiscal year of the bank starts from January to December. After the modification and approval the budget for a specific branch is being set by the head office. Borrowing from other banks.

The old foreign currency accounts are those.  New Fcy report: This report includes the information regarding only the new foreign currency accounts. liabilities and their balance.  Currency wise report (ccy): It provides the details of all the deposits currency wise. Daily position of deposit and advances are also calculated in this report.  Income and Expenditure report: It includes all the details regarding to both the heads of income and expenditure in detail. monthly.Reports In Bank Alfalah many types of reports are being prepared. These are daily.  Royal Profit Report: It includes the details of the deposit of royal profit account. semiannual and annual reports. which were at the 27 . weekly.  Subsidiary Statement: This is a detailed report which includes all the information regarding the statement of affairs. These are generated from the main frame and are used for proper analysis. The following reports are generated daily from the main frame which are being used by the accounts department for the preparation of their own reports:  Statement of affairs: It includes information about assets.

general ledger accounts and their balances. one is sent to the area office and one to the head office for analysis but the format is different for both of them.  Sub 66 Report: It contains income. The important factors that affect the report are as follows: o Total Deposit (of all branches in a single city) 28 . And then if the variance is in negative.  Statement of affairs: This report includes assets and liabilities. Statement of Affairs also prepared at the weekend for the whole week as well as at the end of a month. expenditure. Daily a report was prepared and reported to State bank. Funds management is done only through the main branch. Two copies of this report are made daily. Funds Management Every bank in Pakistan has an account with State bank of Pakistan and has to maintain 5% of the total deposit in the account with the State bank.time of nuclear explosions in Pakistan and were being freeze by the Nawaz Sheriff government. which are being prepared with the help of the above reports:  Daily position of advances and deposits: This report is being sent to the head office daily in which the detail is given regarding the new accounts of deposits and advances. positive actions are taken and reasons will also be mentioned in the report. Now following are the reports.  Monthly Budget Review Report: This report is made to review the performance of the month by calculating the variance. If the bank has so many branches in a single city then only the main branch is responsible for the funds management.

In case of shortage of funds.000. If the cash in hand is sufficient to fulfill the needs of the State Bank. However the most frequent reason. TT from Head Office: One solution of the problem is to contact and inform head office about our respective position and demand for funds. If the head office sends us the TT then it cannot send any other TT to another branch of Bank Alfalah without charges. why this practice is not followed is that State bank has allowed only one TT free of cost for all the branches in Pakistan. well and good other wise if the cash is not sufficient then the other options are considered. Therefore we first have to confirm head office that whether or not it is sending TT to another branch of bank Alfalah. 1.o Opening Balance (closing balance of the previous day) o Inward Clearing o Outward clearing o Cheques issued by State Bank o Cheques Deposited After all the calculations. 29 . which it can adopt. TT from Head Office: 2. For this specific reason the TT is not encouraged. the main branch has the following options. Funds from Other banks 1. Cover from Head Office 3. a result is obtained which signifies the cash in hand of the respective day. The charges are also not negligible for example the charges of TT for an amount of one hundred million is above 60.

The head office is paid on monthly basis. The extra amount will be the shortage of main branch reported. This checking makes the working of the bank more efficient and avoids any loopholes. Sorting is made according to the mainframe-generated report. A report known as activity report is prepared on daily basis.2. which has taken place. 3. The head office then maintains extra amount in its account with State bank. they reconcile it.5% per day. Then it is checked with physical vouchers and if there is any problem. Cover from Head Office: The most frequent option used is to inform Head office about the shortage and ask for cover. Activity Checking Activity checking is the process of the entire banking. If this option is taken the head office is informed and the head office then pays to the Karachi branch of the respective bank from which funds are taken. The main branch will then pay interest to the head office on a rate of 11. Reconciliation BAL prepares its reconciliation statements with  Head Office  State Bank of Pakistan • Head Office Reconciliation: All the debit and credit entries of the main office account are recorded in the statement. Funds from Other banks: In case of funds shortage another bank is contacted with whom the bank has settlement for instance Emirates bank. which has taken place. Head office extract are statements sent by 30 . The report specifies every vouchering. All the vouchers are checked that whether they are properly posted or is there any transaction left to be posted.

Bank Alfalah compares the statement with the ledger card of State bank of Pakistan in which all entries are recorded done with SBP. Depreciation is accrued on monthly basis and charged at year-end. Maintenance of Fixed Assets and Calculation of their Depreciation Account department maintains the record of fixed assets. accounts department handles inquiries. The statement of account reconciliation shows the entries that are passed during the month in both banks. it is added in the balance of the reconcile statement provided by the SBP to BAL. Head office reconciliation is carried out in the head office. • State Bank of Pakistan: SBP maintains the account of every scheduled bank including bank Alfalah. if there is any entry posted by branch but not by head office they will send their query to the branch and branch will respond to that query by sending the required document. Department prepares Asset purchase report and Asset sale report after every six months. The accounts department calculates the depreciation the assets by using straight line method. Depreciation is the allocation of cost of the asset over the useful life.5% 10% 25% 20% 25% 31 . They check the outstanding entries. Depreciation is charged at the following rates: Building Furniture Carpets & curtains Equipment Vehicles 2.branches to the head office. If any amount debited by SBP and Bank Alfalah does not credit that amount.

which contains codes.Y. Separate key table are used for different banks. The transaction will be carried out if and only if the test matches with their own test.Test Keys Test is a coding system used to authenticate money transactions between banks. the concerned officer requests the accounting department to apply test to the message. Whenever money is transferred through TT. This test key is also different for inward and outward TT. etc. Test key tables are to arrive at the code. When this arrangement is carried out a test key is provided to the concerned bank. this test is verified.Y. Banks have arrangement with other banks with which they have quite a large volume of business and it is beneficial to have a direct arrangement with these banks. For example BAL has test arrangements with ABN Amro N. Citibank N. American express N. one to the Telex/fax operator and the third one goes to the department record. Four things should be carefully checked because code is based on four things: • • • • Branch name Currency Date Amount 32 . Twelve branches of BAL have arrangement for local transfer and three branches are authorized for foreign transfer. When the TT is received at the other end. One goes to the test key department. This test key is different for every bank. The test is applied to the message. In local transfer double coding is used and in foreign transfer single coding is used. three copies of this message are prepared.Y. This test arrangement can be with banks within country and outside country.

which bank built with other banks. The credit department is further divided into two departments. The purpose is to just secure the transaction. the lending operations of a bank constitute a vital part of its business. Bank’s funds comprises mainly of money borrowed from numerous customers on various accounts such as saving accounts. They will check the message and will respond to the query. fixed deposits etc. Inquiries originated by any bank regarding the delay of any message are also solved by the bank. Another important significance of test is agency arrangement. This department is the source of income and earnings for the bank. Whereas the major part of total income of a bank is generated through the utilization of these funds. current accounts.Test can be applied on nil amounts. which are as follows: o Credit Marketing o Credit Administration Credit facilities in BAL 33 . CREDIT DEPARTMENT The basic function of a bank is to receive deposits (at low rate of return) and to lend money (at a high rate of return). So.

It is further divided into following types:  Current Finance (OD)  Cash Finance (Pledge)  Term Finance  FAPC I  FAPC II  FAFB  LBP  FIM  FATR  Cash Finance (pledge): This is also a very common form of borrowing by commercial and industrial concerns. Following are those credit facilities: 1. Funded: Funded facility is that facility in which the bank funds are physically involved. Funded 2. Non-Funded 1.  Term Finance: 34 . and is made available either against pledge or hypothecation of goods. It is utilized for the creation of current assets and to meet the permanent working capital requirements. either at once or as required. The borrower prefers this form of lending due to the facility of paying mark-up charges only on the amount he actually utilizes not the whole limit amount. In this facility. the borrower is allowed to borrow money from the bank up to a certain limit. This is also known as running finance.Bank provides two types of credit facilities to its customers.

This type of financing is against last performance of the exporter. The mark-up is charged for the period the exporter has used the facility and not for the whole limit.Term finance is for a fixed period of time. Other wise it is same as finance against foreign bill purchased. Bank takes 100% security against this type of financing. The mark-up is received in the end on semi annually basis. This loan is disbursed by the bank for the preparation of goods once the L/C is received. According to SBP exporter can have finance up to the half of amount of previous year export but then the exporter should ensure that the exports he makes are equal to double amount of the loan for one year. This facility is also called Pre shipment finance. Afterwards bank receives the payment of exports and adjusts the exporters account. The bank purchases the documents form the exporter and give him this facility. He will take loan against these documents and pays fixed markup rate on this facility.  FAFB (Finance against foreign bills): This facility is also known as post shipment finance.  LBP (Local bills purchase): Local bill purchase documentary is used for inland import export transaction.  FAPC II (Finance against Packing credit): This loan is also known as performance-based financing.  FAPC I(Finance against packing credit): Bank provides this facility against LC or sale contract (in favor of exporter). Term finance has to be paid within a limit and once it is paid it cannot be taken back by the client. This is also 35 . This facility is availed by the exporter after he has shipped the goods and sent his documents for collection. all the amount is transferred to the borrowers account right in the beginning and interest is charged.

 L/G (Letter of guarantee): Letter of Guarantee is also a non-fund based facility. In FIM. Letter of guarantee involves three parties namely buyer. whether sight or usance is a non-fund based facility provided to the customer. goods are given in the possession of importer. like FIM. against sight L/C’s. It can further divided into the following:  L/C  LG However in Burewala Branch only L/G is issued  L/C (Letter of Credit): Letter of Credit. The letter of guarantee is basically bank’s guarantee that the respective person will 36 . L/C can further divided into sight L/C and Usance L/C. Contrary to FIM.  FIM (Finance against imported merchandise): Finance against Imported Merchandise (FIM) is a credit facility provided to the customer. the seller and the guarantor. in L/C transaction. 2. A non-funded facility can any time become a funded one. when the importer makes the payment.  FATR (Finance against Trust Receipt): The bank also offer credit facility FATR. Delivery order (DO) is issued by the bank for every time. Non-Funded: Non-funded facility is that facility in which the bank’s funds are not physically involved. bank itself makes the payment to the exporter and the goods are kept in the possession of bank.availed by the exporter after the shipment of goods and the bank purchases the documents. This facility is provided to the customer having a credit rating A+. goods are transferred in the possession of importer.

before sanctioning the credit facility to a customer.perform his/her duties/services within the appropriate time other wise the bank will pay the loan amount. the bank keeps different tangible and non-tangible securities. the possession of movable assets is with bank but the ownership remains with the client. Guarantees 1. When the bank takes the guarantee of the client. a commission is charged from the customer. Pledge: Pledge is the actual delivery of the movable and tangible property to the lender. Mortgage 3. to cover risk. even under changing market conditions. Therefore. Pledge 2. Charge 5. Pledge is considered to be the best security for the bank. The securities used in advances are as follows: 1. In pledge. as a security for a credit. Lien on Documents 6. The commodities which are being 37 . Types of L/G:  Bid Bond  Performance Bond  Security Deposit  Repayment Guarantee  Mobilization Advance  Back to Back Guarantee Securities for Advances The advancing of credit involves a great risk for the bank. Hypothecation 4. The bankers prefer those securities that carry less risk of depreciation due to market fluctuations and are easily saleable.

So the bank must be satisfied with the honesty and credibility of the client. so that in case of default of client. Precautions: 1. Client: In case of pledge. IF. Nature of Commodity: The banker must be aware of the nature of the property i. 38 . finished goods and in certain cases work in process (WIP). consumables. Also the commodity being pledged should be easily saleable. whether the commodity is a perishable item. there is 25% margin requirement then to obtain loan of Rs 1 million. whose honesty can be brought at any time. 2. bank can easily sell it in the market. the bank needs security with margin or cushion. Margin: For every credit. Therefore greater risk is imposed by the client.25 million. The possession of the goods is with the bank. People who look after the pledged goods are called Mucaddams. So to make these goods secure bank appoints its own men called Mucaddams to take care of the stock and also bank has a board of its own name on the godown. so bank keeps these goods in godowns under the custody of Mucaddams. the security that is to be pledged should be have worth of Rs. godowns are in the premises of the clients under the custody of Macadam’s. it doesn’t mean that this cotton will be kept in bank.pledged are normally raw material. such type of goods is kept in the godowns of the company.e. The margin requirements are different for every case. If rice is to be pledged with the bank. 1.

3. Mortgage: In mortgage. Proper Valuation: Whenever goods are pledged. Banker must analyze all the associated risks of the goods. 4. 5. Registered Mortgage 1. 6. So. The transferor of property is called a mortgagor and the transferee (bank) is called a mortgagee. fluctuation in prices. excise duties are also paid on the finished goods. the banker should be aware of the true cost of the product as the client always overvalues his product. 1. Banker must be fully satisfied with the appropriation of the Godown. to cover these risks banker should decide about the insurance of the commodity. Insurance: The goods offered for security must be properly insured. Equitable Mortgage (E/M): 39 . Mortgage means. immovable assets are offered as security. Equitable Mortgage 2. Sales taxes.g. 2. Usually two types of Mortgages are being created in the bank for the purpose of collateral. Market Awareness: A banker must have market awareness e. Such commodities should not be pledged that might have low demand in market and have many risks attached to it. to surrender the proprietary rights of the property. Suitability of Godown: Suitability of godown depends upon the nature of the commodity.

2. through their own legal advisors. 3. Investigation of Title: The banker must be satisfied that his borrower has a good title to the property. therefore. Also the bankers hire the services of different valuators to assess the right value of the property. Precautions: 1. the bank also gets fresh NEC i. conduct a proper investigation into the borrower’s title to the property. to ensure that there exists no prior charge on the property. it becomes a registered mortgage. For this purpose. For this purpose. If the title deeds of the property are in the name of more than one person. search should be directed against the name of each person through whom the title is made. Non-Encumbrance Certificate.When a mortgage deed is attached with the title documents only and is deposited in the bank. It is an expensive mortgage and is created when the title documents are weak or the client is not much trustworthy. Nature and value of the property: The banker satisfy themselves that whether the property is suitable for security purposes and in case of sale the bank will not suffer any loss. Registered Mortgage (R/M): When the mortgage deed is between the bank and the client is registered. issued by 40 .e. the bankers inspect the property and properly visit report is prepared. It is the most common form of the mortgage created in bank. Mortgage deed is registered with the Registrar of the Companies. it is known as “Equitable Mortgage” or “Mortgage by deposit of title deed”. The bankers. Search for Prior Charges: A search is made (with registrar of companies). 2.

for his protection. c) The banker may ask the borrower to maintain a balance of goods sufficient to fulfill the margin requirements. Along with the title documents of property. For this purpose. mortgage against his property is created through “Mortgage Deed”. The control of bank is weak so greater risk is involved in hypothecation. For the creation of hypothecation. Securities like machinery. Hypothecation: When an immovable property is offered for security against credit but both the ownership and possession is left with the borrower. This deed is got registered in case of both public and private limited companies.the registrar indicating that no lien or charge has been created on property being mortgaged. the bank requires:  Memorandum of Deposit of the Title Deed  Agreement to create Mortgage  General Power of Attorney (Registered) 3. 4. b) The banker. the original title documents are deposited in the bank with the mortgage deed. may ask the borrower to insure. with the Registrar of Companies (SECP). Charge: 41 . After a banker is satisfied with the property offered for security. the bank gets the letter of hypothecation signed by the client. the goods are said to be “Hypothecated”. The banker may himself do so and recover the expenses from the borrower. In case of hypothecation a) The banker reserves the right to inspect the goods hypothecated to him and can ask for periodic stock reports. upto a specific date. where necessary. Lending against hypothecation of goods is very risky. are offered for hypothecation. stock etc.

as security. Pari Passu Charge a) First Charge: The bank who has the first charge means that it has the first right on the assets of the company in case of liquidation. banks generally create their charge on the assets of the company.Charge means the legal right on the assets of the person (company). Second Charge c. First Charge b. For example. bank creates its lien on the documents in its possession. The charge is registered with the Registrar of the companies (SECP). c) Pari Passu Charge Pari Passu charge means that all the banks who have involved in the Pari Passu charge have the equal rights. as security. b) Second Charge: Second charge means that the bank has the second right on the assets of the company. Guarantees: 42 . 6. In case of limited companies. 5. or for the second or so. Pari Passu charge can be created for the first charge. in case of import transaction under L/C. and then afterwards third charge. If other banks also have charge against that asset then they have second charge after the first one. Lien on Documents: Like charge. bank creates lien on import documents. fourth charge and so on have the right. Charge is of many types: a.

if the businessman financial Position is sound. Credibility: It is the most important factor in determining the safety of advances. only then he can be lended. The elements of credibility. When a customer requests his banker to facilitate him with different credit facilities. In other words. and what are the future possibilities are. If the past record of the borrower shows that his integrity has been questionable then the banker usually tries to avoid such a customer.Along with other securities. A borrower’s character can indicate his intention to repay the advance. since his honesty and integrity is of primary importance. the banker first assess the credibility of customer and the market conditions. for there is no substitute for integrity. Before advancing loan a banker must be satisfied with the sources of the repayment of the funds. honesty and trustworthiness. Processing of Loan The banker must be very careful and ensure that his depositor’s money is advanced to safe hands where risk of loss does not exist. integrity. Capital: The bankers also check the capital of the borrower. which tells how successful a business has been in the past. 43 . and market conditions help a banker in arriving at a conclusion regarding the safety of advances. Repayment: This is the management ability factor. to protect himself against the advances. bank may rely on other guarantees like other bank guarantees. repayment. This can be kept as a security of a loan.

44 .  Total proposed limit of credit and the securities provided against it. In a CLP.  Purpose of facility and terms and conditions regarding the client. SBP). then he requests for regular credit limit of credit facilities for a specific period. Following things should be undertaken while preparing a CLP and also being mentioned in the CLP. This report indicates all the credit facilities outstanding (availed) by the client. Credit Line Proposal (CLP): After being satisfied with the credibility and integrity of the applicant. first of all the bankers requests CIB to provide the credit report of the client. every information regarding the client and his business is stipulated as follows:  Total existing facilities (limit). until and unless it gets credit report form CIB (Credit Information Bureau. Regular Credit Limit: But if the client wants to route a regular business with the bank. It has the vital and most important task assigned to the credit officers in BAL. Before making any decision about the client. his relationship with the bank (if he is an existing customer). the processing of loan application starts with the preparation of Credit Line Proposal (CLP).  Nature of his business and what are the market conditions and opportunities fro the business. his relationships with other banks. bank needs a CIB report.  Customer’s background. their outstanding value and the securities that were provided against these facilities. Therefore. The credit officer does the analysis and verification of these securities.CIB Report: Bank cannot sanction any loan to a customer.

FOREIGN EXCHANGE DEPARTMENT “The transfer of credits to a foreign country to settle debts or accounts between resident of home country and those of the foreign country” or “the foreign bills currencies etc used to settle such accounts”. Import All goods and services brought into a country that were purchased from organization located in other countries. Bank calculates his profitability on the basis of this business. which means expected business that would be routed through the bank for these facilities. Reciprocal business is also stipulated on the proposal. Export All goods and services sent from one country to another country. The bank acts as exporter as well as importer bank for different parties who are in the business of export and import. DOCUMENT REQUIRED FOR EXPORTER 1) 2) 3) National tax number Registration with EPB Sales tax registration DOCUMENTS TO BE ATTACHED FOR EXPORTERS  Invoice 45 . Foreign exchanged department deals within exports and imports.

It is paid according to commodity wise and bill wise. TRANSPORT DOCUMENT (BILL OF LADING. all the conditions are given. Bill of lading  Packing list  Total quantity  Net weight / carton  Gross weight / carton  Total net weight / carton  Total gross weight  Bill of exchange (original or draft)  E-form: Initial document on which total export proceeding is based.  FOB cost (free on board) 46 . SBP gives rebate to exporter against export after realization. Claim period: 1 year. AIRWAY BILL)  When insurance is done by importer. Export precede realization certificate. C&F (cost and freight) usually used.  DHL certificate (TCS certificate)  Form ‘M’  Certificate of Origin (Form – A) FORM-E Government has provided facility to exporter in taking E-Form from any bank and he can present it to any bank for negotiation.  Beneficiary certificate. which are necessary for exports.  Letter of credit: It is written agreement between importer and exporter. In this form.

Authorized dealer certificate is filled for this purpose. 5740734881 with ABN (Amro Bank New York). But if requirement of L/C is to issue bill of lading in favor of company then shipping company issues bill of lading in favor of Exporter Company. USA for onward credit to BAF Islamabad. it is given that “please remit proceed to our Karachi office a/c no. COVERING SCHEDULE If in covering schedule. so bank issues E-form certification to exporter and he submits it to the custom officer along with e-form certification to certify e-form. BENEFICIARY CERTIFICATE If L/C requires some information as proof of anything from exporter then exporter has to present beneficiary certificate for that proof. CERTIFICATE OF ORIGIN This certificate shows that goods are from Pakistan. 47 . FORM OF AUTHORIZED DEALER’S CERTIFICATE State bank permits exporter to issue bill of lading in the favor of e-form bank.  Partial shipment: Product is sent partially. E-FORM CERTIFICATION When export is done on C&F basis. CIF (cost insurance and freight) when insurance is done by exporter.  Tenor (At sight) immediate payment by importer after receiving product.  Transshipment: Product is sent via any country. CIF is used.

E-FORM E-form has four copies:  One for custom officer  One for exporter  Triplicate copy for SBP  Duplicate copy for bank Bank reporting or duplicate and triplicate is done by bank. BANK KEEP IN RECORD  Covering schedule  Invoice  Packing list  AWB  Certificate of origin 48 . then authorized dealer certificate will be provided by bank in favor of L/C opening bank. PAYMENT FROM IMPORTER BANK It is the choice of importer to open L/C from any bank and the bank from which L/C is opened can also refer to some other bank for payment. If requirement of L/C is to issue bill of lading in favor of L/C opening bank. So bill of exchange is sent to refer bank and other documents are sent to L/C opening bank. SWIFT (Standard World Wide Inter Bank Financial Transaction) It is network among all banks. BILL OF LADING Certificate from shipping company for loading commodities. Custom officer (date is given on the foot form) should clear product. No other institute can get involved in it.

then his name should be mentioned on bill of lading. Bill of lading should show capacity of agent. If TT reimbursement is not acceptable. If the agent of Importer Company can take bill of lading. do enter into lodgment register. E-form Normally bank keeps photocopy of all documents in record. 4) 5) Original GSP should be presented. 1) 2) 3) Issue date of bill of lading – shipment on board. then along with the stamp of shipment on board. Negotiable documents (original documents). IMPORTS L/C is opened by the importer. When documents are received fro export. it means bill of lading is necessary. There are two types of L/C  Revocable L/C  Irrevocable L/C NECESSARY REQUIREMENT If place of issue and port of loading is different on bill of lading. vessel name and port of shipment is written. There should not be cutting on bill of lading without authentication. DOCUMENTS FOR IMPORT o Performa invoice signed by importer o Category passbook copy attested by any bank o L/C opening application filled in by the customer o Import registration with export promotion bureau o Annexure 49 .

and export or we can say export 50 . which is issued by the chief controller of import. o Insurance policy. Card o L/C issued on basis of L/C application form. and now a day mostly uses the business. DOCUMENTARY CREDIT DC Department Alfalah Bank has his full-fledged documentary credit department. o Insurance if covered by buyer. o Insurance cover note.o Verification of signature by S. For the cases of imports or exports first the parties have to do upon a sale contract regarding the term and condition of sale. One mode of payment is by L/C. which is secured. A documentary credit represents a commitment bank to pay the seller of goods or services a certain amount provided present stipulated documents evidencing the shipment of the goods with prescribed period of time. As a credit instrument and as a means of making as a payment the documentary credit is an essential instrument for conducting word trade today. Letter of credit is under taking by opening bank (Importers bank the Exporters bank (Negotiating bank) that it will make payment if documents are as per terms of LC. Four Parties Are Involved In Letter Of Credit  Applicant  Beneficiary  Issuing bank  Advising bank Importer Exporter bank of importer bank of importer According to import policy. no import is valid with out import license.S.

Party comes to the bank and fills the form. it includes details like.  Name of company  Address  Country of origin  Branch name  Quantity  Insurance company  Shipment from  Shipment to One thing should also be submitted which is INDENT. his firm or his limited company. etc 51 . If the foreign party has any agent they will issue the indent with following details. which is provided on the payment of Rs. L/C OPENING PROCEDURE When the importer obtained import license. 100.  To masers  Importers. The only requirement is that he should be a Pakistani and must be registered with income tax department. Pakistani banks open only irrevocable LC. amended.promotion bureau (EPB). On being granted registration certificate. registered with the EPB. An essential feature of the irrevocable LC is that it cannot be modified. he will be eligible to import goods according to import policy. then the bank will open letter of credit. altered. This form is filled by the party and is return to the bank. or canceled without the prior consent of all the parties. “A letter of credit is undertaking by LC opening bank to put an agreed sum of money to sellers bank on behalf of the buyer of the goods under clearly defined terms and conditions”. There is no special condition of eligibility for registration. If a person desires to take up import trade must get his name.

it requires following documents. A sanction slip is attached with each form so that the approval can be gained from the manager of the bank. which the bank will consider before opening of LC. After the LC is opened following entries are made. On the deposit of the margin then LC is opened LC limit if set by the bank is also checked. is that sufficient funds be available in the LC openers accounts.  LC opening register  Margin / Liability Account Register.Document Required for “LC” Opening When the bank opens LC. After all the documents are the bank verifies being checked and signs. postage and other charges from the LC opener account. At the item of establishing the LC opening bank charges bank commission.  Valid import license  Performa invoice  Importer should be Pakistani  Letter of under taking form importer  Insurance cover. An important point. Another main important point is that value of LC should not increase the value of import license. At the time of establishing the LC the opening bank generally retains a maximum margin to safe guard its own commitment. 52 . After the approval is made four copies are prepared and the entries are made on the computer and the printout is taken the margin amount is checked from the importer account and if the amount is not found then LC is not opened and the party is informed about the situation. The margin may vary from nil to 100% according to the nature of commodities and it also depends upon the party.

Payment To Seller The negotiating bank upon receiving the documents from the seller checks the documents according to terms and conditions of credit upon satisfying it self of this the negotiating bank makes payment to the seller if sight credit. The successful expansion program proved their capability and commitment in comparison with the competition in the financial sector. o Bill of exchange o Invoices o Bill of lading o Packing list o Certificate of origin o Insurance Competitors Despite notable economic uncertainties. Documents Received By the Opening Bank Importers bank or opening bank receives the following documents form the exporter’s bank or negotiating bank. The Banking structure in Pakistan comprises of:  Central Bank  Commercial Banks  Investment Banks  Development finance Institutions 53 . the financial strength of Bank Alfalah Limited has greatly enhanced during the previous years. It then forwards the documents to the opening bank and reimburses it self through the opening banks account with itself.

and by personal selling to inspire peoples to open and maintain an account with BAL.Majid zubair Operation manager said. and I worked one week in Account Opening Department and two days in clearing department After one week when I learned Account opening well my supervisor Mr. from now we are going to open an accounts for Bhara Kahu branch so that at branch opening we have some Deposit. Specialized Banks  Foreign Banks Bank Alfalah is a private commercial bank so the major competitors of Bank Alfalah are the following: • • • • • • • • • • HBL UBL Askri Bank Standard Charted RBS Muslim Commercial Bank The bank of Punjab My Bank Ltd Bank Al-Habib Ltd ABL The departments. 54 . Schools. because am a local boy and know many peoples and individuals who are doing solepropritor ship business. Colleges and meet with individuals and complete theirs AOF and opened many accounts.Jawad the branch Manager of Bhara kahu Branch and Mr. I worked When I started my internship at bank Alflah limited in main branch blue area Islamabad. and also work for outdoor advertisement and displayed banners in different areas. at that time BHARA KAHU branch is under construction. We visit different shops.

In the light of these situations we can make an analysis.  The staff is not satisfied with the salary structure  Gives its staff less benefits Opportunities:  Extension of International network of the branches  Introduction of innovative products 55 .SWOT ANALYSIS BAL is one of the fastest growing banks in Pakistan.  Professional and Committed workforce  Good customer service  Increasing the number of branches in the country  Online Banking  Well experienced and quality staff  Fully computerized Network  Each department in the bank is fully allowed to take adequate decisions of its own. saving the time and help in achieving the objectives Weaknesses: Although the bank is growing fastly but it has some weaknesses which it should remove to make itself further strong. Strengths:  Bank is in its growing stages so there is good financial position.

This is the main reason for the growth of the bank. 56 .  Coordination: Meetings are held very frequently which keeps the head-office well informed about the performance of its branches and also provides officials with the opportunity to communicate. discuss and deals with different situations as they arise. Growing market Threats:  Uncertain economic conditions  Action taken by competitors  Political Instability Findings and Analysis The findings and analysis of Bank Alfalah Limited is as follows:  Good Image: Bank Alfalah has the benefit of having better reputation and image because of having the strength of Abu Dhabi consortium and under the leadership of His Highness Sheikh Nayan Mabarak Al-Nahayan.  Good Customer Services: The bank is providing its customers world class and excellent services. People feel lesser risk for investing their money with the bank.

is not satisfactory and they take too much work from internees so due to that internees not take too much interest in their work. Its staff is very good and sincere with the bank. customized. Bank Alfalah under the leadership of Sheik Nahayan has made significant progress in building and strengthening both the corporate and retail banking sectors in Pakistan. Employee Behavior: The employees of Bank Alfalah Limited are very committed to their work. reliability. They are very hard working and punctual but some of them have problems with he environment of the bank and they feel that the branch environment is not very encouraging. The people at bank realize that innovation. they said the behavior of employees with internees. creativity. services and their execution are they key ingredients for their future growth. 57 . Its profits are increasingly year-by-year. I observed the bank Alfalah a financially sound bank.  Behavior with Internees I observed during internship period and met with other Internees. all were not satisfied. Bank Alfalah views specialization and service excellence as the cornerstone of its strategy.

So I suggest that there should be fair distribution of work in all the departments and use job rotation technique for better performance of the employees. create interest and encourage them so that internees can learn easily.  Misdistribution of work: In Bank Alfalah. 58 . some people are over burdened with the work and they are not happy with that.Recommendations  For internees: I recommend that the staff should behave well with internees and share their experience with them. there is misdistribution of work.

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