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Following privatization, Bank Alfalah emerged as new identity of Habib Credit and Exchange Bank with a revived purpose and commitment. Charged with the strength of Abu Dhabi consortium and under the leadership of his Highness Sheikh Nahayan Mabarak Al-Nayayan, the bank has already made significant contributions in building and strengthening both corporate and retail banking sector in Pakistan. Designing the product portfolio of bank in response to the customer‟s preferences, the product like Royal Profit, Royal Patriot and Royal Custodial are prime examples of quality and innovation providing timely banking opportunities to the customers of bank.
Assessment of the needs and wants of the customers is an ongoing process at Bank Alfalah, which helps to continually develop new products and services. To continuously offer courteous, professional and advanced banking solutions, the team of bank has recently been rejuvenated by going though training programs with a focus on information technology.
To make their banking solutions become accessible to more and more people, they have embarked upon a rapid expansion program, aiming to provide a networking that makes the services available to any of their customers in all the major urban centers of Pakistan- with a view to go international in the near future.
Bank Alfalah Ltd.
With their key indicators of progress already soaring to new heights, the bank is committed to dedicate all its energies, resources and time to bring higher value and satisfaction to their customers, employees and shareholders.
The graph of bank is going up and up every year. The ratio of profit is increasing at good percentage. The bank is serving the people at high level of standard by going according to the whishes of the customers.
Bank Alfalah Ltd.
COMMERCIAL BANKING SCENARIO IN PAKISTAN
At the time of independence in 1947, there were 38 scheduled banks with 195 offices in “Pakistan” but by December 31, 1973, there were 14 scheduled Pakistani commercial banks with 3,233 offices all over Pakistan & 74 offices in foreign countries. Nationalization of Banks was not done 1st January 1974 under the Nationalization act 1974, due to certain objectives. But it had negative effects on efficiency of the banking sector afterwards a privatization Commission was set up on January 22, 1991, the commission transferred many banks to the private sector i.e., MCB & ABL. The government approved & permitted the establishment of 10 new private banks in 1991;hence many new private banks have incorporated, since then, BANK ALFALAH in one of the namely established private scheduled banks in Pakistan.
It is not listed on any stock exchange of Pakistan. The Multan branch has recently been opened in May 1999. In 1991. its 3 Pakistani branches were taken over by the Government of Pakistan. Business Institutions 4 .Bank Alfalah Ltd.E and Europe. It had its 3 branches in Pakistan. when is was accused by European countries that the bank was involved in some illegal operations with Gulf countries. Habib credit and Exchange Band assumed the new identity of Bank Alfalah on February 25. Agha Hassan Abdi from UBL. The major reason behind European accusation was that BCCI was of Islamic mode. 1998. It has its 18 branches in 8 cities of Pakistan.A. the BCCI was banned. INTRODUCTION TO BANK ALFALAH Bank of Credit & Commerce International (BCCI) was a Pakistan based bank. BCCI has its branches in 74 different countries of the world. which were named as Habib Credit and Exchange Bank (HCEB) and these were working as subsidiary of Habib Bank Limited. the bank was closed due to international pressure. Following the privatization in July 1997. established by Mr. in association with U. It is now Abu Dhabi based bank as the family of Sheikh Nahayan Mubarik AlNahayan purchased 70% of its shares and 30% shares remained with Habib Bank on behalf of Government of Pakistan. Then. Therefor.
Charged with the strength of Abu Dhabi consortium. envisaging the development of various sectors in Pakistan. the bank is energized with the vision. Minister of Higher Education and Scientific Research. Business Institutions 5 . and a prominent member of Royal Family. Government of Abu Dhabi. and under the leadership of His Highness Sheikh Nahayan Mabarak Al-Nahayan.Bank Alfalah Ltd.
The strength of chain relies on the strength of each link. The legacy of leadership stands as our guiding light. Achievement is nothing without target. Every drop counts. Variety of Products. A good banking standard. Together. MISSION/OBJECTIVES Edge on competitors. High profits.Bank Alfalah Ltd. Expansion of strong structure. Performance is nothing without the ability to measure it. A keen ear is a key to understanding. BANK ALFALAH’S SLOGAN Let‟s Look Ahead Towards a Brighter Future. Business Institutions 6 . BANK BELIEVES Every door leads to our customers. Time is our most valuable asset.
Business Institutions 7 . LAHORE Kashmir Road Branch. BRANCHES NETWORK Bank Alfalah has its 18 branches in 8 cities of Pakistan.Bank Alfalah Ltd.I. Karachi (new Branch). Detail is as under: KARACHI Main branch. Gulberg Branch. Clifton Branch. I. Chundrigar Road. B.A. Cloth Market Branch. Defense Branch RAWALPINDI Mall Road Branch. Shahrah-e-Faisal Branch. Building.
Hopefully. Gujranwala. Hyderabad. Business Institutions 8 . Faisalabad.Bank Alfalah Ltd. its branches will be opened in the year 2001. in Dhaka (Bangladesh) and Bahrain. Some branches will also be opened in European countries. OTHER BRANCHES Other Branches are in: Sialkot. Quetta. Islamabad. Multan. Bank Alfalah is going to establish its branches in some foreign countries. Now. Sukkur. Peshawar.
Mr. Sheikh Nahayan Mabarak Al-Nahayan. Abdulla Naseer Hawalled Al-Mansoori.Bank Alfalah Ltd. Naeem Iqbal Sheikh. Mr. Nominated) Business Institutions 9 .H. Muhammad Saleem Akhtar. Mr. Ikram-ul-Majeed Sehgal. Mr. Omar Z. Nominated) Director (Govt. Abdulla Khalil Al-Mutawa. Board of Directors Chairman Secretary of the Board Director Director Director CEOB (member) Director (Govt. Mr. Mr. THE BOARD The list of Board of Directors of Bank Alfalah Limited is as under: H. Al-Askari.
Mr.F. Tahir.. Parvez A.e. Al Mutawa. there are 2 committees. Mohammad Yousaf.Bank Alfalah Ltd. Mr. Mr. Executive Committee. Mr. Bashir A. Mr. Mr. Waqas Mohsin. Al-Askari. Mr. BOARD ADVISORY COMMITTEE Mr. EXECUTIVE COMMITTEE Mr. Mr. Board Advisory Committee. Abdulla K. Ferguson & Co. M. THE CORE GROUP In the core group. Business Institutions 10 . Khan. Shahid. i. Omar Z. Ikram-ul-Majeed Sehgal. Tanveer A. Ganpat Singhvi. AUDITORS A. Mohammad Saleem Akhtar.
Sheikh. Shoalb Rizwan 11 . Executive Vice President Asif A. Mohammad Saleem Credits & Advances Mr. Hassan Clearing Mr. E. Mr. Chartered Accountants. A. V.Bank Alfalah Ltd. Abdali Road.yasir Accoutnts Mr. Masood Ahmad Remainttances Mr. Mr. Anees Cash Mr. Aqeel. Multan.Jawad Business Institutions A/C Opening Mr. P. Ali Gardezi Foreign Exchange Mr. ORGANIZATIONAL CHARTS COUNTRY WIDE HIERARCHY President Chief Operating officer Head of Country Operations Country Risk Manager Executive Vice President Executive Vice President Character Accountant Information Department Corporate Heads Branch Managers Branch Managers organogram of Alfalah Ltd. Yasir Gardezi Operations Manager Mr.
All the people work with cooperation. its employees have to bring their bank among the list of good banks. As Multan branch is a new one. commitment to organization. EFFICIENCY Employees at Bank Al-Falah are quite efficient. they work more than their working hours and it is all according to their will. Business Institutions 12 . FEATURES Bank Alfalah Limited is and established bank. managers are so kind that each problem can be discussed with them. so the bank has good work environment. It has some special features with the help of those it is growing rapidly. It also shows their loyalty.Bank Alfalah Ltd. GOOD WORK ENVIRONMENT As the work environment plays a great role in this competition age. Therefore.
SUGGESTIONS ASKED FROM CUSTOMERS Getting ideas for improvement from customer side is a new idea and that is working very well in Bank Alfalah Ltd. Computerized Working Environment In bank. This increases efficiency of the bank. gratuity funds. Business Institutions 13 . EMPLOYEE BENEFITS Employees are given the benefits like bonus. Same kind of behavior and attention is given to all the customers. all the work is done on computers. increments. CUSTOMER SERVICES All the customers are entertained individually. loans. Balance are fed into the computer. medical and conveyance. house rent. All the customers are asked to fill a suggestion form and the standards of the bank are improved through them.Bank Alfalah Ltd. All the entries are made in computer.
000. SHARE CAPITAL The authorized capital of Bank Alfalah is of Rs.000-9.000.000. PRODUCTS Prioritizing its product portfolio in line with its corporate and consumer needs and wants the bank is committed to develop products that give more value to its customers in both the sectors.50 % 9.000 and above Rate 9.00 % Business Institutions 14 .Bank Alfalah Ltd.999 1. Following their trend of bringing value added products and services to their customers the bank has present Royal Group.000.999 10. Deposit Amount 100. Royal Profit and Royal Patriot. ROYAL GROUP Royal Group is a joint investment plan that allows individuals to invest money collectively and earn higher rate of profit.000-999. 1000 Million (100.70 % 10.000) ordinary shares of Rs.999.10 each issued for cash. 000) Paid-up capital is of Rs 600 Million (600.
25 % 11. he can get the benefit of profit.50 % 1.000-999.10 % 5. But in case of Royal Patriot if one withdraw his money before the maturity date.Bank Alfalah Ltd.999 10. Deposit Amount 50.00 % 9.000.10 % 10.20 % 2Years Rate 11.00 % 11.999.000.000 & Above 8.000.999 1.50 % ROYAL PATRIOT It is similar to term deposit.000 & Above Rate 9.70 % 12Months Rate 11.60 % 10.20 % Business Institutions 15 .999 8.000 to 999. The profit rates for different periods are following: Duration Amount 25.999.10 % 11.999 1Month Rate 8.25 % 6Months Rate 10.00 % 10.50 % 10.00 % 11.000. In term deposit one get no benefit of profit when he withdraws his money before maturity date.00 % 3Months Rate 10.000 to 9.000-4. ROYAL PROFIT It is the profit obtained by individuals on their deposited amount.50 % 10.
50.000 Business Institutions 16 . they don‟t go beyond five years financing. FINANCING SCHEMES The bank has introduced many financing Schemes such as Term Finance & Royal Personal Finance. Maximum Rs. The bank has recently introduced a Car Finance Scheme.Bank Alfalah Ltd. They don‟t invest too much in fixed assets.000 From 1 to 3 years. Royal Personal Finance This is the facility for individuals to finance their domestic requirements such as purchase of household equipments. 50 Millions for one party. Maximum credit for short term is Rs. FINANCE POLICY Bank Alfalah finance on short term basis only against current assets to its customers in both corporate and consumer sectors. computers. other liabilities or any other personal requirement. 500. planning a holiday. marriage. funding of education. Facility Range Tenure Minimum Rs. payments of credit card bills.
04993 3 years 0.09168 2 years 0. SALIENT FEATURES Lowest Financing cost available in the market Tenure of 1 to 5 years as per individual requirement Quickest processing Minimum processing charges: Rs. 3000 payable once Down Payment requirement of 25% Repayment through monthly installments Lowest Insurance rates available from bank‟s approved insurance companies Business Institutions 17 .03615 ALFALAH CAR It‟s a scheme that enables one to own his desired car at easily affordable and flexible installments with a minimum down payment and insurance.Bank Alfalah Ltd. Maximum Loan Entitlement (Approximately) Tenure Factors 1 year 0.
02553 ELIGIBILITY CRITERIA All Businessmen. MONTHLY INSTALLMENTS Monthly Installments for Alfalah Car can be calculated by multiplying Bank‟s financing amount with the following factors: Periods For 12 months For 24 months For 36 months For 48 months For 60 months Factors 0. and other salaried or selfemployed professionals having net take home income in excess of three times the monthly installment.04962 0.02944 0.03609 0. Corporate Employees.Bank Alfalah Ltd.09072 0. Business Institutions 18 .
ACCOUNT OPENING DEPARTMENT Borrowing funds from different sources has become an essential feature of today‟s business enterprises. The Bank does not make payment of a cheque bearing a six-month or older date.Bank Alfalah Ltd. Business Institutions 19 . If an account is not operated in six months. TYPES OF ACCOUNT Current Account. But in the case of bank borrowing funds from outside parties is more vital because the borrowed capital of a bank is much greater their own capital. Banks borrowing is mostly in the form of deposits. These deposits are lent out to different parties such deposit creation is done through open an account in the bank. Notice Deposit. it is called Dormant Account. Saving Account. Term Deposit.
5000 and payment is drawn on maturity of the specific period. CURRENT ACCOUNT There is no interest on these accounts. Where a banker accepts. paying all checks drawn against him to extend of the balance in the accounts. The minimum balance requirement for opening the current account is Rs. SAVING ACCOUNT The purpose of this account is to introduce the habit of saving individuals in the neighborhood. it is also called checking account because cheque can be drawn on it.5000. The minimum balance requirement for opening the account is Rs. 1000. As there is no profit paid on this account. The minimum balance requirement for opening the account is Rs. Current account is mostly opened for business. NOTICE DEPOSITS Notice Deposits are kind of fixed deposits. It is only for transaction purposes. Business Institutions 20 . The profit on saving accounts is paid on the basis of profit and loss sharing at 9 % six monthly.Bank Alfalah Ltd. They paid on demand.
The rate of return of this account varies from 8 % to 13 %. Business Institutions 21 . 5000.10%. The term deposit account varies from one month to 5 years and the minimum balance requirement is Rs. One for which a prior notice of 30 days and is required from the customer before withdrawing deposited amount and for which rate return is 6. Second for which a prior notice of 30 days and above is required from the customer before withdrawing deposited amount and for which the rate of return is 7. TERM DEPOSIT A term deposit is a deposit that is made of a certain period of time.50 %.Bank Alfalah Ltd. At the end of specific period the customer is allowed to with draw the principal amount. NOTICE DEPOSIT IS OF TWO TYPES.
Business Institutions 22 . of days in a year) AVERAGE MONTH BALANCE. Sum of daily end Balance × Rate of return No. Minimum Balance of first 5 days is compared to the minimum balance of the minimum balance of remaining 25 days. The amount of profit is given to deposits in three ways: Cash payment ( only in case of term Deposits ).Bank Alfalah Ltd. PROFIT CALCULATION METHODS DAILY PRODUCT BASIS Deposited Amount × Rate of return. 365 (No. Less balance is calculated for profit. of days in month MINIMUM MONTH BALANCE Any minimum balance during the month is taken for calculating profit SAVING A/C (05 DAYS _ MINIMUM MONTHLY BALANCE). Or as per customer requirement.
000. Rs.000. By sending bank draft to depositors home address or officers or whichever is specified as mailing address. 1.Bank Alfalah Ltd.265. 158. 1.708.710. 8.829.820.000.734.465.657. Particulars of Deposits & Other Accounts In Local Currency In Foreign Currencies Rs. Rs. Amount of Deposits & Other Accounts in 1999.473.000. 8. 6. ACCOUNT OPENING PROCEDURE For the chequing account. Rs.038.000.499. Fixed Deposits Saving Deposits Current Accounts Margin.000.389.008.000. Call & Sundry Deposits Deposits of Federal Government Rs.133.000. Rs. there are different types of account holders are required for all these types of account holders. 15. The depositor‟s account is credited at maturity. 4. Total Deposits Rs.991. Rs. The operation/procedure requirement that is needed for “Individual Account” differs greatly from Business Institutions 23 .
OPERATION The person place in the type of account and type of operation required in the account opening form. INDIVIDUAL’S ACCOUNT When a single man or woman opens an account in his or her own name and has the right to operate. DOCUMENTATION Copy of National Identity Card. Proper Identification ( Introduction ). Partnership A/C. the “Joint Accounts” proprietorship A/C.Bank Alfalah Ltd. it is called individual A/C. He/she fills in part 1 of the form. a fix his/her either two of four similar signature ( or thumb expression in the signature space ) and get it introduced and signed by a person who already has an account with the bank and write his account number in the specific rows in a specific space. Private Limited company A/C and Public Limited Company A/C. Business Institutions 24 .
phone number. The person put his signature on form on two places in “authorized Signature” and fills in the “Title of Account” space by writing his name. his/her address. mother.Bank Alfalah Ltd. If the person put his signature in Urdu or any other language other than English. he signed a “Vernacular Form”. open an account in their name is joint account. The person deposits the initial amount for opening account onto the cash counter. The person fills his or her father. DOCUMENTATION Business Institutions 25 . The next day is opening of account JOINT ACCOUNT When two or more persons neither partners nor. trustees. his or her sign to certify this requirement. husband/wife or any other relative‟s name. This requirement is needed because in his/her absence bank can have correspondence with a specific person.
In the title of account space names of all persons maintained. open an account in his firm name.C card. Account holders specified in the form that they will operate the form singly or jointly.I. PROPRIETORSHIP ACCOUNT When the owner of the firm operating singly. OPERATION The person checks the type of account and type of operation required in the respective box on the form. Identification ( Introduction ). DOCUMENTATION Business Institutions 26 . copy of N. The person fills the Part-1 and Part-II Signature of box or all persons are obtained on the formed in the area specified for signature.Bank Alfalah Ltd.
OPERATION All operation remains the same. Status of the firm ( In case of registered firm ). Copy of Sole Proprietorship Declaration. The attested copy of Partnership Deed (in case of registered firm ).C. Status of the firm. except that the firm name is written in “title of account” area and Signature of the proprietor in the specified area. DOCUMENTATION Copy of N.Bank Alfalah Ltd.I. Business Institutions 27 .I.C of all partners. Copy of N. PARTNERSHIP ACCOUNT The account is opened in the firm name and all partners designate one or two persons to act behalf of the partnership firm all acts of the firm jointly and serverly.
Business Institutions 28 . Third party Mandate. Letter showing the authority of one or more partners to act on.Bank Alfalah Ltd. Operation of the A/C (as per deed).
Resolution of Board of directors. Certificate of Incorporation Form 29 (B) (Lasted Copy). Company secretary will certify all these copies. OPERATION The person authorized in the resolution of the board of directors put their signature on the S. List of directors. OPERATION All other requirements are same except that all partners dully sign the form.C of all partners. PRIVATE LIMITED COMPANY ACCOUNT DOCUMENTATION N. Business Institutions 29 .Bank Alfalah Ltd.I. cards are signed by all of those partners who will act on behalf of the firm.S Card. Articles and Memorandum of association.
PUBIC LIMITED COMPANY ACCOUNT DOCUMENTATION Copy of N. Other procedure is same. Articles and Memorandum of association.Bank Alfalah Ltd. After completing each and every formalities are signed by all partners who will act on behalf of the firm.C of all partners.I. Business Institutions 30 . Next of Kin requirement is not need in a case of Private Limited Company. List of directors. Certificate of commencement of Business. Resolution of Board of Directors. OPERATION Operation is same as Private Limited Company .
Receiving Inward cheques. ACCOUNT CLOSING When a customer wants to close his account because of any reason. It is proceeded as under. Account Closing. then closing is done from the registers on the computer where the account was opened. In the file of account holder. For this closing. then. CHEQUE BOOK ISSUANCE When the account is opened. Business Institutions 31 . his account opening form is also crossed. Every Day Posting. the customer is given a cheque book to sign upon and en cash money. Proper Introduction. The Operations Manager first verifies the signatures of account holder. a fee of Rs.Bank Alfalah Ltd. 150 is charged in Bank Alfalah. he has to give a hand written application to the head of the Operations Department to close his account. ChequeBook Issuing. RESPONSIBILITIES OF ACCOUNT OPENING DEPARTMENT Documentation Intact. plus remaining leaves of the chequebook.
type of currency. Chequebook is delivered to the customer and his signature is taken on the cheque book issuance register. account number. the particulars of the third person are required like name of the person. Stock of Cheque books are balanced at the end of each day and kept under safe custody. Chequebook is taken out from the safe/locker. PROCEDURE All the account opening formalities must be completed before. Particulars are entered in the cheque book issuance register. the customer are verified on If customer is unable to collect his chequebook. Business Institutions 32 . issuance of cheque book. Particulars of the chequebook requisition should be completed containing title of account. Signature of. number of leaves andsignature of the customer. It is assured that series of the chequebook is in order.the requisition. then he can give authority to the 'third person to collect his cheque book' on his behalf by signing on the back of . In such case. Account number is stamped on every leaf of the cheque book and those leaves are counted. Name of the account holder is written on the cover of the cheque book and requisition on the chequebook for further issuance is properly filled stamped and signed by officer of the bank. cheque serial number is entered in the system (Bank Excel). NIC number and signature of that person on requisition and chequebook issuance register.Bank Alfalah Ltd.
50 leaves Current account .10 leaves Foreign currency £ .Bank Alfalah Ltd. Saving account . Business Institutions 33 . but now whenever a new account is opened.25 leaves Foreign currency $ . The account opening department makes credit vouchers of excise duty and provincial tax on chequebook leaves. Posting of cheque books is performed. RECEIVING INWARD CHEQUES Another responsibility &function of Account Opening Department is to receive Inward cheques for collection of other banks.25 leaves Current account .10 leaves Loose cheques are also issued in some cases. the account holder is issued a cheque book free of charge. Earlier in the banks were charging a fee for issuance of cheque book. These cheques are sent to clearing official who clears these cheques at SBP from other banks. EVERY DAY POSTING At the end of each day. Bank Alfalah issues the following chequebooks. and posts it in the company.
Aqeel and Mr. Deposit slip is credited and posted in the concerned account in the system. CASH DEPARTMENT Mr. Cash Department performs two main functions: Cash Deposits Cash Payments CASH DEPOSITS Cash receiving officer receives cash along with pay-in slip from the customer. The cash details are written on the back of the deposit slip and are also entered in cash receiving register. Detail on both counter file and cash receipt voucher should be the same. account number. Officer cash department signs both the deposit slip and register. He checks if the deposit slip is properly filled up containing title of account. Business Institutions 34 . He also verifies signature. Deposit slip and cash receiving register is given to the officer in cash department. date and amount in word and figures. Cash is received by the cash receiving officer. Cash received stamp is affixed on the face of the deposit slip along with the signature of the cash receiving officer.Bank Alfalah Ltd. twice counted and matched with the deposit slip. Jawad helped us in learning about Cash Department. Again proper scrutiny is made by the officer cash department both on cash receipt and cash receiving register.
if the amount is greater than Rs. payee's name crossing if any. account number. PAYMENT OF CHEQUES The process for payment of cheques for local and foreign currency is same. Cheque is handed over to the cash payment officer for payment. and then cash is paid to the payee. any material alterations. Cheque handed over to the officer cash department for scrutiny where officer checks the date. Cash detail is written on the back of the cheque. First the customer presents the cheque or holder to branch and the particulars of cheque are properly filled in. Cash paid stamp is affixed on the face of the cheque. 1000. 50000 to Rs.000 the cashier and cash deposit Incharge will verify the check and will sing it. 50000 the cashier can make it on its own. Signature of the holder is taken on the back of the cheque.000 the manager operation will also verify the check and sign it so that the Business Institutions 35 . 100000 to Rs. Then the payment will be made. If the payment is of Rs. If the amount is greater than Rs. Account is debited and then the officer cancels cheque. But. One consolidated cash debit voucher is posted in the system to balance the cash. endorsements and signature of the customer. amount in words and amount in figures. Counter folio is given to the depositor as receipt.Bank Alfalah Ltd. It is posted in the system and posting stamp and number is affixed on it. One more signature on the back of the cheque is taken from the holder to match with the first one. 100. cheque serial number. Entry is passed in the cash payment register.
000 the Branch Manager Will also verify the check and sign it. payment can be made.Bank Alfalah Ltd. Otherwise the payment will not be made. Business Institutions 36 . 1000. If the amount is greater than Rs.
. Cheques are scrutinized properly and paying slips are separated from cheques. Anees remained so helpful. Special crossing.Bank Alfalah Ltd. All the cheques are then entered into the clearing system of the bank. Details of these banks are then entered into the clearing schedule containing number of cheques presented and their total amount against the name of Business Institutions 37 . Mr. The clearing process majority involves receiving the cheques and making payments. Print out of the clearing is taken and details are attached with the cheques of each bank. All the cheques are received on one counter alongwith the paying slips duly filled in properly containing particulars of cheques and account harder. These cheques are scrutinized and cheques for local clearing are separated from OBC. Clearing officer checks and verifies title of all the cheques deposited by the customers to confirm the good title of the cheques. CLEARING PROCESS (INWARD/OUTWARD) Here t he local cheques are received that are drawn on BAF. Cheques of each bank are sorted and arranged branch wise. endorsement and clearing stamps are affixed on the cheques. 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. This process can be inward or outward. CLEARING DEPARTMENT In clearing. are entered in OBC register and handed over the Bills Department for collection. These are then entered in clearing register and cheques for collection.
the Officer Cash Department pays these cheques by canceling and posting them in the system. Total number of cheques and their amount delivered to other banks and received from them are written on the Clearing House schedule branch for their payment. these cheques are delivered to the respective banks in clearing house of State Bank of Pakistan between 9:00 to 9:30AM. Second clearing is called at 2:30PM to check the fate of the cheques presented to other banks in the morning. In the same manner. If any cheque is not passed due to insufficient balance or any other reason. verification of signatures and confirmation of balance in the account. Business Institutions 38 . if any cheque presented by Bank Alfalah in first clearing is returned. In the same manner. 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. that is delivered to the same bank in second clearing. After proper scrutiny of cheques. 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. other banks present their clearing drawn on Bank Alfalah. which is tallied with the clearing register. each bank. Next morning. If any cheque is to return.Bank Alfalah Ltd. Then total number of cheques presented to all banks and their total amount is written on the foot of that schedule.
PAY ORDER A pay order is a written order issued by a bank. In remittances. following banking instruments are used: Pay order Demand draft Telegraphic transfer The procedure for dealing with all these under local as well as foreign currency in BAF is as under. PROCEDURE FOR PAY ORDER Application form is given to the customer to fill. drawn upon & payable by itself. Mr. REMITTANCES DEPARTMENT The need of remittances is commonly felt in today‟s business. Hassan in Bank Alfalah is the officer for Remittances Department. All the particulars of application form are checked and bank commission Business Institutions 39 . Two signatures are taken on the form one for request and other for receiving the instrument.Bank Alfalah Ltd. The main function of remittance department in a bank is the transfer of funds. to pay a specified sum of money to or to the order of a specified person.
Instrument is then When instrument is presented for payment. Printout is taken on the block of payment Order. He enters all the particulars of the application form in the system and computer gives an Auto Control Number to the instrument. Cheque and application from is then given to the officer Cash Department for the payment of cheque. which is drawn by one bank upon another bank for a specific sum of money payable on demand. Parties Involved in DD: Purchaser Business Institutions 40 . If the customer is maintaining his account with the branch. protectographed. then cash is deposited by the customer along with the bank charges and withholding tax.Bank Alfalah Ltd. it is posted in the system and canceled by the Remittances Incharge after proper scrutiny. It is made by the bank. After proper scrutiny. he can give cheque for total amount of instrument plus bank charges. given to the purchaser against cash or cheque. Application form is then given to the Remittances Incharge for issuance of instrument. Officer Cash Department posts the cheque and signs the application form in token of payment received. charges and withholding tax is written on the top of the application form. and given to the customer. Two authorized officers of the branch then sign it. DEMAND DRAFT A Demand Draft (DD) is an instrument. If the customer wants to pay cash.
PROCEDURE FOR DEMAND DRAFT PAYABLE When DD advice is received. Two signatures are taken on the form one for request and other for receiving the instrument. TT may be issued to general public on their written request and against the value received. Prints out of vouchers (DD payable) are taken. signatures of the attorneys are verified on DD and after proper scrutiny. Issuing Branch Drawee Branch Payee PROCEDURE FOR ISSUING DD Issuance procedure of Demand Draft is same as of pay Order. it is posted in the system and canceled by the Remittances Incharge. PROCEDURE FOR ISSUING TELEGRAPHIC TRANSFER Application form is given to the customer to fill. When instrument is presented for payment. All the particulars of application form are checked and bank commission charges and withholding tax is calculated and written on the top of the Business Institutions 41 . TELEGRAPHIC TRANSFER Sometimes. Telegraphic Transfer (TT) is issued . when the remittance is urgently required by the remitter. signatures of both signatory on the DD are verified.Bank Alfalah Ltd. All the particulars of the DD payable are entered in the system.
A test number is given to the T. has been sent. If the customer wants to pay cash. Cash Receiving Officer receives cash n the application form along with the bank charges and withholding tax.T. The customer is confirmed that T. After proper scrutiny. Officer Cash Department posts the cheque and signs the application form.T. message is received.T. payable are entered in the system. payee‟s name and account number or identification if any. T. application form (if customer is tax payer. If the customer is maintaining his account with the branch. it is deposited by the customer on cash counter.T. he can give cheque and application form is then given to the officer for the payment of cheque. message for receiving branch. PAYABLE When T. All the particulars of the T. He enters all the particulars of the application form in the system (BPG) and computer gives an Auto Control Number to the T. Application form is then given to the Remittances Incharge for issuance of the instrument. T. After proper scrutiny.T. is checked and verified. advice. This message is then sent through telex to the receiving branch followed by a T. T. Payment instruction on the T. Telegraphic Transfer message is written in the telex containing name of transferring branch. Tested number is then written in the register and signed by the holder of test keys for officer record. Officer Cash Department posts the cheque. to assure that payment is received. currency. he can give tax exemption certificate). payer name and payment advice. message are Business Institutions 42 . tested number on the T. amount.T. date. name of receiving branch.Bank Alfalah Ltd. PROCEDURE FOR T.
If the customer wants to pay cash. Application form is then given to the Remittances Incharge for the issuance of the instrument. Printouts of vouchers (T. A control number is allotted to the instrument from FDD Register.T. Cheque and application form is then given to the Office Cash Department for the payment of cheque. Cheque is received from the customer for total amount of FDD plus bank commission. Instrument is completed by putting all the particulars in it and signed by two attorney holders. payable) are taken. If TTR is presented for payment. one for request and other for receiving the instrument. which is US$ 5/. Then cheque and application form is given to Incharge Remittances. signatures of the authorized officers are verified on TTR and after proper scrutiny. followed if it is pay and advice it will be paid through TTR on the cash counter or through clearing and if it is credit and advice. message. Procedure for Foreign Demand Draft Issuance: Application form is given to the customer to fill the same. who will enter all the particulars of the application in the FDD Issuance Register. All the particulars of application form are checked and bank commission is charged.Bank Alfalah Ltd.for each amount of FDD. Instrument is then Business Institutions 43 . to assure that payment is received. Two signatures are taken on the form. it will be transferred in the account mentioned in the T. it is deposited by the customer on cash counter. it is posted in the BPG and canceled by the remittances Incharge.T. After proper scrutiny. Cash Receiving Officer receives cash on the application form along with the bank charges. Officer Cash Department posts the cheque and signs the application form.
handed over to the customer. If cheque is received from the customer. Officer Cash Department posts the cheque and signs the application form to assure that payment is received. PROCEDURE FOR FOREIGN TELEGRAPHIC TRANSFER ISSUANCE Application form is given to the customer to fill the same. All the particulars of application form are checked and bank commissin is charged. date. amount. payer name and payment instructions. If the customer wants to pay cash. Exchange Transaction Credit Advice (ETCA) is sent to the Head Office for the reimbursement. TT message is written in the telex containing name of transferring branch. Two signatures are taken on the form one for request and other for receiving the instrument. name of receiving branch. Copies of the FDD and ETCA are kept in the record of the bank. currency. which is US$ 15/. payee‟s name and account number or identification if any. Cash Receiving Officer receives cash on the application form along with the bank charges. After proper scrutiny. it is taken for total amount of FTT plus bank commission.Bank Alfalah Ltd. He enters all the particulars of the application form in the FTT Register and a Control Number is allotted to the FTT. Application form is then given to the Remittances Incharge for the issuance of instrument. it is deposited by the customer on cash counter.(flat rate) for each amount of FTT. A test number is given to the FTT message Business Institutions 44 . Cheque and application form is then given to the Officer Cash Department for the payment of cheque. FDD advice is sent to the responding foreign bank/paying bank where they are maintaining dollar account through registered mail.
for receiving branch. This message is then sent through telex to the Customer is confirmed that FTT has been made. If they do not have any branch in that city. receiving branch. Copies of the FTT and ETCA are kept in the record of the bank. whereas cheques for collection are entered in OBC register and handed over to the Bills Department for collection. These cheques are scrutinized and cheques for local clearing are separated from OBCs.Bank Alfalah Ltd. OBC schedule is attached with the cheque and dispatched to the main branch of that city for collection. Special crossing and bank endorsement stamps are affixed on the cheque. Exchange Transaction Credit Advice (ETCA) is sent to the Head Officer for the reimbursement. Business Institutions 45 . There are two types of bills for collection: Outward Bills for Collection Inward Bills for collection OUTWARDS BILLS FOR COLLECTION Al the cheques are received on one counter along with the paying slips duly filled in properly containing particulars of cheques and account holder. OBC number is allotted to the cheque from OBC register. 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 for local clearing are entered in Clearing Register. COLLECTION All the cheques under collection are called cheques under Collection in Bank Alfalah Limited.
Main activity of clearing is performed by Head Office.000 Business Institutions 46 . it is Inward Bill for Collection. If IBCA is received from the branch for the payment of OBC. When OBC is realized. and if they do not have any collecting agent even. certain vouchers are posted in the system.000 Rs. 1.092. 1.964. then cheque will be sent to the Collecting Agent of Bank Alfalah for that city.738. then cheque can be sent directly to the drawing branch. The process of collection starts when the cheques of Bank Alfalah Ltd. INWARD BILLS FOR COLLECTION If any other bank sends a cheque of Bank Alfalah Limited. 22. BILLS FOR COLLECTION IN 1999 Payable In Pakistan Payable Outside Pakistan Total Rs. which sends the cheques to SBP for clearing and get the confirmation of cheque and credit advice. collection bank pays the amount through IBCA if it is the same bank or through DD if it is another bank. Contra-liability vouchers are also posted in the system. Bank Alfalah remits money after checking the balance of the customer account.Bank Alfalah Ltd. Then these cheques are sent to the Head Office Karachi. If DD is received against OBC. Are received from other banks. which contacts other banks through SBP.000 Rs. Instructions are given on the OBC schedule for the payment of that cheque.986. it is presented in the clearing for collection.830.
Business Institutions 47 .Bank Alfalah Ltd.
Purpose of this policy is to set out the credit policies for the boar.Bank Alfalah Ltd. This policy statement sets out the underlying principles from which the BOD will determine the commercial credit activity of Bank Alfalah Ltd. CREDIT AND ADVANCE DEPARTMENT Credit and Advances Department deals with the provision of loans (credit facility) to the customers. Business Institutions 48 . The policies are described under the following readings: Credit principles Portfolio limits Approval Administration Monitoring and review 1. The committee to approve direct and review commercial lending of Bank and to ensure that credit policies are adhered to and the credit operation is conducted in an efficient and effective manner. monitoring and control on a basis consistent with Bank Alfalah Ltd. approval. credit is given on the basis of a policy made by Board of Directors and is called Credit Policy. At BAF. CREDIT PRINCIPLES It includes principles to be adopted for lending authority. which will be implemented by the Credit Committee.
Credit Administration keeps liaison with lawyers. These are Business Institutions 49 . CREDIT MONITORING The client can present his own account insurance policy as security for credit. The operational objectives and business strategies regarding objectives. CREDIT ADMINISTRATION The credit application when handed over to Credit Administration. Shares can also be kept as security in this case these are verified and duly signed. 2. his account is blocked for the same amount. Clients can also use third party‟s account for getting credit. 5. When he presents his own account as security. 4. the Credit committee makes approval for the credit. which the bank is granting him.Bank Alfalah Ltd. When the facility is adjusted at that time. structure. valuators and other corporate bodies. CREDIT APPROVAL When the terms and conditions are set and both parties are agreed. then they critically examine securities given by client to bank against credit facilities. performance and administration are also included. the blocking is released from the account. surveyors. CREDIT PORTFOLIO These are the guidelines set down by Credit Committee regarding: Total facilities Term facilities 3.
kept separate to avoid theft. Business Institutions 50 . The company whose shares are used is informed that its shares are in the custody of the bank.Bank Alfalah Ltd.
Business Institutions 51 . ADVANCES Bank Alfalah Limited. funds are required for preparation of next consignment that is provided by post-shipment facility.Bank Alfalah Ltd. Profit may be 16% per annum. provides the following facilities in Advances Department: Funded facilities Non-funded facilities FUNDED FACILITIES These are the facilities in which funds like cash fund are included. The repayment is generally from sale proceeds. This is for preparation of consignment. LPO Goods purchased on behalf of bank and provided to customers. Profit rate is about 15% per annum. POST – SHIPMENT During export process. PRE-SHIPMENT It provides to prepare consignment. Maximum tenor is about 150 days. Abdali Road Multan. Maximum tenure is 150 days.
Bank Alfalah Ltd. in March the credit cards will be issued by bank. 10. Inshallah.327.324. NON – FUNDED FACILITIES These facilities are on: Letter of Credit Letter of Guarantee L/C is of two types: Sight L/C for 90 days Usance L/C for 120 days CREDIT CARDS Bank Alfalah has no credit card facility but.000 All in Local Currency Business Institutions 52 . ADVANCES IN 1999 Rs.
which are necessary for exports. DOCUMENTS TO BE ATTACHED FOR EXPORTS Invoice Bill of lading Packing list (a) Total quantity (b) Net weight/carton (c) Gross weight/carton (d) Total net weight/carton (e) Total gross weight Bill of exchange (original or draft) E-form: Initial document on which total export proceeding is based. EXPORTS EXPORTER When the bank becomes the exporter bank for a party then the market stability.Bank Alfalah Ltd. reputation. The bank acts as exporter as well as importer bank for different parties who are in the business of export and import. all the conditions are given. In this form . Business Institutions 53 . Saleem at BAF supervises it. financial position of the exporter is first of all checked. Mr. FOREIGN EXCHANGE DEPARTMENT Foreign Exchanged Department deals within exports and imports.
Bank Alfalah Ltd.
Letter of credit: It is written agreement between importer and exporter. Beneficiary certificate 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. Export Proceed Realization Certificate
SBP gives rebate to exporter against export after realization. It is paid according to commodity wise and bill wise. Claim period: 1 year.
TRANSPORT DOCUMENT (BILL OF LADING, AIRWAY BILL) When insurance is done by importer, C&F (cost and freight) usually used. FOB cost (free on board) CIF (cost insurance and freight) when insurance is done by exporter, CIF is used. Tenor (At sight) immediate payment by importer after receiving product. Partial shipment: Product is sent partially.
Bank Alfalah Ltd.
Transshipment: Product is sent via any country
When export is done on C&F basis, so bank issues E-form certification to exporter and he submits it to the custom officer along with Eform certification to certify E-form.
FORM OF AUTHORIZED DEALER’S CERTIFICATE
State Bank permits exporter to issue Bill of Lading in the favor of Eform bank. 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. Authorized Dealer Certificate is filled for this purpose.
CERTIFICATE OF ORIGIN
This certificate shows that goods are from Pakistan.
If in covering schedule, it is given that “please remit proceed to our Karachi Office A/C no. 5740734881 with ABN (Amro Bank New York), USA for onward credit to BAF Multan.”
If L/C requires some information as proof of anything from exporter then exporter has to present beneficiary certificate for that proof.
Bank Alfalah Ltd.
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. Custom Officer (date is given on the foot of form) should clear product.
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. So bill of exchange is sent to referred bank and other documents are sent to L/C opening bank.
It is network among all banks. No other institute can get involved in it.
BILL OF LADING
Certificate from shipping company for loading documents. If requirement of L/C is to issue Bill of Lading in favour of L/C opening bank, then authorized dealer certificate will be provided by bank in favor of L/C opening bank.
Business Institutions 57 . If bill of lading can be taken by the agent of Importer Company. NECESSARY REQUIREMENT If place of issue and port of loading is different on Bill of Lading. 1) 2) 3) Issue date of Bill of Lading – shipment on board. Revocable Irrevocable. There are two types of L/C. vessel name and port of shipment is written. There should not be cutting on bill of lading without authentication. Negotiable documents (original documents). Bill of lading should show capacity of agent.Bank Alfalah Ltd. IMPORTS L/C is opened by the importer. BANK KEEP IN RECORD Covering schedule Invoice Packing list AWB Certificate of Origin E-form Normally bank keeps photocopy of all documents in record. then along with the stamp of shipment on board. then his name should be mentioned on bill of lading.
it means bill of lading is necessary.Bank Alfalah Ltd. When documents are received for export. Insurance cover note. Business Institutions 58 . Insurance policy. Insurance if covered by buyer. If TT reimbursement is not acceptable. DOCUMENTS FOR IMPORT Performa Invoice signed by importer Category passbook copy attested by any bank L/C opening application filled in by the customer Import registration with export Promotion Bureau Annexure Verification of signature by S. S. Card L/C issued on basis of L/C application form. do enter into lodgment register. 4) 5) Original GSP should be presented.
This department is supervised by Mr. These vouchers are already posted to computer by the concerned department. all is paid from the Accounts Department. signatures all the requirements for cheques and vouchers are fully checked. etc. are all paid by this department. Business Institutions 59 . In this department. If any kind of renovation or construction or rebuilding is done.Bank Alfalah Ltd. date. ACCOUNT DEPARTMENT Most important department of bank as it is concerned with: Revenue Expenses Assets Liabilities These are the pillars of any business. By using this list. stamps. people of Accounts Department can prepare the vouchers. Masood Ahmad. medical allowance. So computer also sends a report to the Accounts Department. stationery charges. all the vouchers that are posted during one day are sent to the Account Department next day. The accounts Department has to tell that all the vouchers are posted under the right head. DAILY CUSTOMER MOVEMENT LIST All the changes that are made in accounts of customer are shown in the daily customer movement list. Amount. Like petrol for the car of EVP and VP.
Following activities are performed by Account Department: Voucher preparation Preparation of daily. and annual statement.Bank Alfalah Ltd. Budgeting and fixed assets Employer‟s benefit Expenditure approval. monthly. weekly. Business Institutions 60 .
Products are excellent Expansion is consistent Modernized banking (online + Internet) Fully computerized. Mixed Culture New Setup No ATM facility is provided No traveler cheques are issued. SWOT ANALYSIS STRENGTHS Bank has a belief in customer service Backed by strong Abu Dhabi Consortium Customer give suggestion for the improvement of bank and these suggestions are listened carefully. Asif A.Bank Alfalah Ltd. Manager & EVP Mr. Business Institutions 61 . Environment is friendly. Sheikh has good coordination with staff members. WEAKNESSES BCCI Image. each department has to own PC.
Staff is lesser. Credit Card Facility Internet Banking Establishing Foreign Branches Local Setup Expand THREATS Competition Legal Reputation Business Institutions 62 . No internal audit is held. OPPORTUNITIES Information Technology.Bank Alfalah Ltd. Tokens are not issued to customer so the chances of doubling are present. Personal Lockers are not available. No credit card facility is available.
which is wrong. 25.Bank Alfalah Ltd. Cashier should be given certain powers to pay cheques up to Rs. bank staff tries to fill all the columns of AOE with their own handwriting. This is a routine practice that in order to give personalized services to the customer. There are two officers involved in cash deposit process. which is time consuming. These suggestions are based on our experience with bank. Similarly. RECOMMENDATIONS Finally. Business Institutions 63 . AOE must be filled in by the customers.000/. DM and L to provide prompt services. there are two officers involved in cheque payment process. title of account or any other information provided by the customer has not been written properly.to provide prompt services. We are giving some suggestions for Bank Alfalah Limited. Cashier should be given certain powers to receive cash of US$. Customer may be affected or he may claim that this information was not provided by him. Under no circumstances chequebook should be given to the customer if the account formalities are incomplete. which is time consuming. Bankers should avoid to fill in the AOE because it can create problem if the address. but if AOE is filled by the customer then banker cannot be held responsible for any incorrect information provided by the customer.
Cheques. These cheques must be reflected in the accounts so that credibility of the customers may be assessed.Bank Alfalah Ltd. Tokens should be issued to avoid doubling. Audit should be held internally. This can become so helpful as different banks are having this department of their own. ATM. Business Institutions 64 . are not reflected in the Statement of Account of the customers. credit card. which are drawn on Bank Alfalah Branch and returned unpaid in clearing. traveler cheques all these facilities should be provided to attract more customers. Rather there should be an Audit Department in the branch to make audit on daily basis. Lockers.
At branch level. At each branch of bank. profit rates. the Operations Department follows marketing practices. In this dynamic environment. MARKETING PRACTICES ADOPTED BY BANK Nowadays marketing of products is of prime importance for any organization. which is responsible for creating the demand of its goods and services. They make customer calls and personally visit the potential customer to convince them to invest in AFB. Nowadays banks also have their marketing departments. which are responsible for creating demand of their products. This department prepares different deposit schemes for its customers. officers are available to provide marketing activities of their products. in order to increase the business of the bank. i. Bank Alfalah has its own full marketing Department at the Head Office.Bank Alfalah Ltd. their deposit schemes and increasing the deposit of the bank.e. Karachi. time to time. They make phone calls to customers and inform them about their schemes. every organization has its own Marketing Department.. Business Institutions 65 .
the bank. Bank‟s investment in the Financial Sector was based on the confidence of bank in the country as a whole and it has been amply demonstrated by the growth plans of bank though ambitious in nature but prudent and in line with the potentials of the market place.82 Billion. Multan. continued with its expansion programme and added five (5) new Branches in their network.15. Balance Sheet footing of the Bank reached the level of Rs.Bank Alfalah Ltd. Although the financial sector in general witnessed some shrinkage. Customer Deposits rose by 33% on a year-to-year basis and stood at Rs. which is significantly above the Basle guidelines and international requirement of 8%. both in terms of downsizing and closure of certain locations. The Bank attained Number two (2) position in terms of its Balance Sheet size amongst the private banks in Pakistan in 1999. however. CONCLUSION BANK ALFALAH ( BAF ) under the leadership of Sheikh Nahayan Mabarak Al-Nahayan has made significant in building of strengthening both the corporate and retail banking sectors in Pakistan. Peshawar. Bank maintained a Capital adequacy ratio of over 13%.21 Billion-an increase of more than 46% over the previous year. Business Institutions 66 . one each in Islamabad. The significant improvements in terms of its results in comparison to the corresponding period for the year 1998 have been much above the market expectations. Faisalabad and Lahore. The pre-tax profit of the Bank also increased more than five (5) times as compared to the previous year and stood at Rs.354 million for the year 1999.
They say that they will invest in the modern tools and substantial allocation of resources will be made to achieve this objective during the current year. creativity. Their programme to launch real time – on line Banking Services and introduction of ATMs at strategic locations have been firmed up and it will be fully operational during the year 2001. The people of bank innovation. They will thus be accelerating their enable them distribute their products and services through most efficient and high-tech means. Based on this approach.Bank Alfalah Ltd. While building on their in-depth familiarity with their customers‟ needs and anticipated developments in the banking industry. They are aware that they have stepped into the 21st century and they must meet its challenges by acquiring the highest levels of Technology. There are significant growth opportunities for BANK ALFALAH and they are confident in their ability to Business Institutions 67 . BANK ALFALAH views specialization and service excellence as the cornerstone of its strategy. reliability. the Retail and Corporate areas of their operations will continue to provide a strong and stable base to the business of the Bank. Their focus would be to constantly seek out growth opportunities through increased quality assets and by offering a wider range of products and services to their esteemed customers. customized services and their execution are the key ingredients for their future growth. Revenues from these activities have started yielding dividends and they expect significant growth in these areas in the coming years. their Treasury Division and the Structured Finance Unit have been geared to provide specialized services to the Corporate customers.
354 million. the Board has proposed that a cash dividend at a rate of Rs. 20% of share capital be distributed among the shareholders. 2. Business Institutions 68 . They are committed to enhancing the shareholder‟s value and look forward with greater optimism to a prosperous future for BANK ALFALAH Based on the profit of Rs.00 per share i. grasp them.Bank Alfalah Ltd.e.
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