DEDICATION

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This piece of work is dedicated to my beloved Parents & Teachers Whose prayers and affection are the source of strength For me in every field of life May God bless them with good health and long life And to All those who love and care about me.

PREFACE
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Intelligence is the sum of total capabilities. The justice to ones intelligence is to apply it at right place. Internship is an opportunity to do justice with your capabilities. It is a tool to apply your intelligence and gain supervised practical experience during educational period. Fortunately I had the opportunity to be the internee at a very competent BANK ALFALAH LIMITED at Gulberg 3, Main Boulevard, Lahore.
During my internship I had been rotated different departments as CRO (customer relation officer), operations, remittances, clearing and trade finance etc. This movement and working provides complete knowledge of their working to me, they also explained each and every concept to make clear to me. This knowledge and practical experience was the thing which helps me to complete the internship report. This report includes a complete introduction of Bank Alfalah limited and banking sector, their complete functioning and performance, SWOT analysis and financial analysis of their statements. In the end the conclusion of whole report is written along with certain suggestions for the organization.

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ACKNOWLEDGEMENT
I bow my head before Almighty ALLAH Who rendered me knowledge as well as courage to complete this task by putting my best efforts in it. I pay thanks to all my teachers whose efforts made me capable of understanding the things happening technically.

I owe a debt of gratitude to Bank Alfalah limited for providing me this golden opportunity to interact with the business in a practical situation.

I express my immense appreciation for Prof Nisar Ahmad my internship teacher and Mr. Syed Asad Ali Shah, Operations officer, Bank Shah, Alfalah Limited, whose outstanding Managerial skills, breadth of knowledge and counselling assured this projects clarity and completeness. Without their able guidance I was unable to complete my project.

I highly thank the staff members of the Bank Alfalah Limited who really cooperated with me and provided me their complete guidance and gave me their precious time and taught me basics of banking as well as new concepts of banking.

I would like to express my deepest gratitude to my Parents, without Parents their prayers I am nothing. I acknowledge the endless efforts and support empowered by the prayers of my Well-wishers who helped me for the successful completion of this project.

Finally, I acknowledge the UNIVERSITY OF CENTRAL PUNJAB for giving me a platform. University Of Central Punjab

EXECUTIVE SUMMARY
My experience of carrying out the internship in Bank Alfalah was very informative and enjoyable in a very good working environment. I explored the real life practical business activities and had the opportunity to incorporate these with the pure academic theoretical learning. However, when the time come to put all the experiences and learning from the internship in the form of a report, I found it difficult in the beginning but when I started, ALLAH helped me and I enjoyed writing all that I learnt. Banking is not a new notion for people but it has very old background when Greeks used to keep their money and other valuable with the priests in the temples. This practice gives clear imprecations that the banking was started well in the past and then moved forward so rapidly and become a necessity of every business entity as well as individuals in the shape of todays modern banking system. Bank Alfalah Limited was incorporated on June 21, 1997 as a Public Limited Company under the Companies Ordinance 1984. Its banking operations commenced from November 1, 1997. Bank Alfalah has a varied product and service range to cater its valued customers. Undoubtedly Alfalah is one of the major players in Pakistans banking structure with the distinction of market leader within its competitors. Bank Alfalah is enjoying its strong financial and market position with many strengths however, there is still has some roam for improvement. To stay in competition and have competitive edge Bank Alfalah has to undertake some certain decisions according to the Pakistans scenario. The financial analysis clearly describes that Bank Alfalah has a profitable business in Pakistan however; analysis also indicates slight problems in the operations. The overall condition of the bank is excellent.

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INDUSTRY PROFILE

BANKING HISTORY
There is bottomless debate going on to determine the origin of the word
BANK.

Many authors, historians and academicians have different point of

view about this word; some of them think It is derived from Italian word Banco or Banque which means desk or counter that they used during renaissance and on the other hand some advocate the notion that it comes from the German word Back which means joint stock fund and then later when Germans occupied the major parts of Italy Back was transformed into bank. It is very much difficult to decide that which opinion is more authentic and legitimate as there are no such evidences available to corroborate them. However, the concept of banking is quite old when Greeks in 2000 BC used to keep their money and other valuables with the priests in the temples and these priests were also considered as financial agents at that time. Later on the other example of banking was observed when people started to deposit their money and valuables to goldsmiths as they had good reputation of trust, honour and solvency in the society and also had strong safes to protect their money from thieves. Soon these goldsmiths began to issue receipts for the money deposited with them. These receipts were fully accepted in payment of debts, and then the receipts were drawn in such a
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way that it entitled any holder to claim the specified amount of money from goldsmiths. These receipts can be considered the earlier bank notes. Moving to the modern banking first bank was founded in 1401 as Bank of Barcelona and then later on in 1407 another bank was founded in Genoa as Bank of St George; this bank dominated the business in the Mediterranean. Later on when Lombardy merchants came to England in the fourteenth century and settled in the parts of the city of the London flourished the modern banking structure. In 1694 the Bank of England was founded by act of parliament. The main purpose of the act founding the bank is to raise money for the War of the League of Augsburg by taxation and by the novel device of a permanent loan on which interest would be paid but the principle would not be repaid. In the following year another bank was founded with the name of Bank of Scotland.

BANKING HISTORY

OF

PAKISTAN

The division of sub-continent took place in 1947 and Pakistan becomes an independent country. British Empire divided the recourses between two new countries, unjustified. As a result newly born Pakistan got a weak and small banking system that includes only 631 offices of scheduled banks and 411 non-scheduled banks with the total deposits of 880.0 millions whereas the advances were 198.0 millions in Pakistani banks. Due to lack of resources and without having its own Central Bank, it was quite difficult for premature Pakistan to develop and run its own banking system. Hence, the expert committee recommended that the Reserve Bank of India should continue to function and look after the banking system in Pakistan until 30th September 1948 to settle down the problem of time and demand liability, coinage currencies, exchange etc between both courtiers i.e. Pakistan and India. Before the partition of Sub Continent the entire banking business was almost controlled and managed by non-Muslims. The Muslims were
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deliberately kept cut of banking profession by the wealthy Hindu community. Soon after the partition Hindus and Sikhs started to migrate to India and transferred their capital on an accelerated pace. The massive drain in bank deposits ruined the Pakistani economy. Consequently, Pakistan had to face a fearful down fall in banking sector and had to close down 406 offices of the scheduled banks and 305 of non-scheduled banks. The unfair attitude of the Reserve Bank of India towards Pakistan and distressful banking conditions made customers to feel unsatisfied and loath to trust on banks and deal with them. Therefore, the Govt. of Pakistan took initiative and decided to establish its own Central Bank to run the banking system smoothly and to gain the confidence of the customers in the banks. On 1st July 1948 Governor General of Pakistan Quaid-e-Azam inaugurated the State Bank of Pakistan to control the banking system and currency issues in Pakistan.

STATE BANK

OF

PAKISTAN

State Bank of Pakistan (SBP) has been entrusted with responsibility for an ongoing effective supervision of the banking sector in the country. It has been empowered to carry out inspections of the banks contained in the Banking companies Ordinance, 1962 along with SBP Act, 1956, Banks Nationalization Act, 1974, The Institutions (Recovery of Finances) Ordinance, 2001, Companies Ordinance, 1984 and Statutory Regulatory Orders (SROs). Under the Banking Companies Ordinance, 1962 the State Bank of Pakistan is fully authorized to regulate and supervise banks and development finance institutions. In the year of 1997 some major amendments were made in the banking laws, which gave autonomy to the State Bank in the area of banking supervision. Under Section 40(A) of the above-mentioned Ordinance State Bank has to responsibility to systematically monitor the performance of every banking company to ensure its compliance with the statutory criteria, and banking rules & regulations. In
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every case in which the management of a bank is failing to discharge its responsibility in accordance with the applicable statutory criteria or banking rules & regulations or is failing to protect the interests of the depositors or for advancing loans and finance without due regard for the best interests of the bank or for reasons other than merit, the State Bank is authorized to take necessary remedial steps.

COMPANY PROFILE

HISTORY
Limited

OF

BANK ALFALAH
Company under the Companies Ordinance 1984.

Bank Alfalah Limited was incorporated on June 21, 1997 as a Public Its banking operations commenced from November 1, 1997. The bank is engaged in commercial banking and related services as defined in the Banking Companies Ordinance, 1962. Bank Alfalah has emerged as one of the leading commercial banks in the financial sector of Pakistan. Bank has made significant contribution in building and strengthening both the corporate and retail banking in Pakistan.
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Most of its shares are owned by a consortium of Abu Dhabi.

After the

debacle of BCCI, the Ministry of Finance (Govt. of Pakistan) acquired its three branches and Habib Credit & Exchange Bank was incorporated on June 21, 1992 as a public limited company under the Companies Ordinance, 1984 and commenced banking operations from November 1, 1992. It engaged in commercial banking and related services as defined in the baking Companies Ordinance, 1962. Following the privatization in July, 1997, Habib Credit & Exchange Bank assumed the new identity of Bank Alfalah on February 25, 1998. And with this a challenge was launched, the challenge to transform this bank into a highly professional, most efficient & service oriented institution. Charged with the strength of the Abu Dhabi based consortium, and under the leadership of Highness Sheikh Nahayan Mubarak Al-Nahayan, Minister of Education, Government of Abu Dhabi, and a prominent member of Royal Family the bank is energized with the vision of the development of consumer sector in Pakistan.

Prioritizing its product portfolio in line with consumer needs and wants, the bank is committed to develop products that give more value to its customer be it a simple bank account or complex financing of a major project. Designing product portfolio in response to customers preferences, banks products like Royal Profit, Royal Patriot and Royal Custodial are prime examples of quality and innovation providing timely banking opportunities to its customers. Assessment of the needs and wants of its customers is an on going process at Bank Alfalah, which helps it to continually develop new products and services. Some of our new products in the pipeline include Royal Forex, ATM Network and a credit card.

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To continuously offer courteous, professional and advanced banking solutions, banks team has recently been energized by going through training programs with a focus on Information Technology. With a team of talented, service-dedicated professional bankers, Bank Alfalah commits all its energies, resources and time to cater to all banking and financial needs of customers. To make banking solutions accessible to more and more people, BAL has embarked upon a rapid expansion program, aiming to provide a networking that makes its services available to any of its customers in all the major urban centers of Pakistan with a view to go international. With its key indicators of progress already soaring to new heights, the bank is committed to put all its energies, resources and time to bring higher value and satisfaction of its customers, employees and shareholders. Technological developments are opening up new vistas of solutions for distributing traditional financial products. Concurrently, rapid change in customer preferences has resulted in a major shift from manual to automated services of the bank. Information technology today, is the key to sustain and succeed in the corporate world. Therefore, during the recent past, Bank Alfalah made heavy investments, towards enhancing its capabilities in the area of automation and technology. BAL is well positioned to meet client needs, with improved competitive advantage.

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

MISSION
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.

CREDIT RATING
PACRA, a premier rating agency of the country, has rated the bank AA (double A), Entity Rating for long term and A1+ (A one plus) for the short term. These ratings denote a very low expectation of credit risk, strong capacity for timely payment of financial commitments in the long term and by highest capacity for timely repayment in the short term, respectively. The ratings of first and second and third unsecured listed and subordinated TFC issues of PKR 650 million, PKR 1,250 million and Rs.1, 325 million have been maintained at AA- (Double A minus).

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CULTURE
FUNCTIONS, EVENTS
AND

AT

BANK ALFALAH

CEREMONIES

Get-togethers are arranged for all of the employees of corporate and consumer department on a yearly basis, so that they can interact and socialize among one another. Special occasions like Pakistan Day, Defence Day and New Year get together and Eid Milan Parties are arranged.

THE DRESS CODE

The dress code is formal, consisting of suit and tie for men, and formal shalwar kameez for women. On Saturdays, you can dress informally. However, on weekdays, formal dress code is compulsory.

METHOD

OF

COMMUNICATION

A good deal of verbal interchange takes place in bank each day. It is a two way street. The competent officer discusses rather than direct, listens as well as interacts. The bank makes the communications channel more effective by staff meeting eventually it is an extension of the conversational or discussion technique but embraces a larger segment of the organization. Such meetings are regular features of efficiently operated bank and take a wide variety of forms, ranging from daily or weekly officers meetings to annual weekly conferences. The major portion of communication necessary for the day to day operations of a bank consists of simple person to person conversation more complex ideas, however, gain clarity if they are put in writing. Thus the bank is talented in the ability to write clearly which is an invaluable management talent that needs constant practice and development.

MANAGEMENT STYLE Management is a process of utilizing material and human resources to accomplish designated objectives. It involves the organization, direction, coordination and evaluation of people to achieve these goals. The role of manager is to assemble the best work team he can obtain and then to provide a supportive motivational environment to guide that team to
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accomplish agreed upon objectives. It involves organizing, motivating, leading, training communicating with and coordinating others.

The management of the Bank Alfalah focuses on some of the objectives that it wants to achieve. The way mangers treat and deal with their subordinates in order to accomplish the multiple objectives of the organization is determined primarily by management system of beliefs about the nature of man and about the determinants of cooperation in an organized endeavour.

IMPACT OF MANAGEMENT STYLES ON BANK ALFALAH EMPLOYEES ALFALA

MOTIVATION
The term motivation implies action to satisfy a need. Motivation can be defined as a willingness to expend energy to achieve a goal or a reward. The management styles adopted by the bank affect greatly, and employees are motivated in order to enhance their performance and achieve the desired goals.

MORALE AND PRODUCTIVITY

The employees of the bank possess high moral, and thus exhibit high productivity. The employees are happy and are also productive workers. Job attitudes and morale are quite positive for two reasons. Firstly employees gain social satisfaction from interactions at the work place. Working conditions and supervision good, secondly high morale result from high motivation to produce. In other works we can say, that management should put its eggs in the basket that creates a highmotivated work force.

PROMOTION

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Bank Alfalah decisions about promotions are decided upon the basis of merit in ones present position and ability and potential to assume the impossibilities of higher level positions. Sometimes other factors are considered such as length of service, education, training courses completed and previous work history.

ORGANIZATIONAL HIERARCHY

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Operation Executive Board of Chairma Assistant Officers Branch Board Chief Area Incharges Managers Executive Committe Director Advisory n Incharges Committe Officer s e e

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BOARD

OF

DIRECTORS

H.E. Sheikh Hamdan Bin Mubarak Al Nahayan Chairman Mr. Abdulla Nasser Hawalileel AlMansoori Director Mr. Abdull Khalil Al Mutawa Director

Mr.Khalid Mana Saeed Al Otaiba Director

Mr. Ikram Ul-Majeed Sehgal Director

Mr. Nadeem Iqbal Sheikh Director

Mr. Sirajuddin Aziz Director & CEO

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DEPARTMENTS IN BANK ALFALAH LIMITED

Accounts Department Account Opening Department Car Financing Department Remittances / Clearance Department Advances Department Agricultural Loan Department Home Loan Department Information Technology Department Cash Department Trade Finance Department

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Practical Work Experience

This part of the report is based upon practical exposure which I got in Bank Alfalah Limited 125-E /1 Gulberg 3, Main Boulevard Branch during my six weeks training. I have worked in five departments, which are CRO department, Sales Department, Operations Department and Clearing & Remittance Department. The experience and knowledge that I got during my 6 weeks work over there is remarkable. Most importantly the way all the Managers and employees treated me was appreciable. I felt free to ask all questions in my mind and clear all the ambiguities which I need to understand. Following is the detail of activities performed in

1. CRO department (Customer Relationship Officer) or

2. Account Opening Department

3. Operations Department 4. Remittances and clearing 5. Trade finance

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CRO Department
CRO department mainly includes the following activities Reception

RECEPTION
The first week of internship was in CRO department and on reception; the duties assigned to me on reception were as follows

1. Fill the cash deposit slips for the customers 2. Fill the cheque deposit slips for the customers 3. To give any other information regarding Bank Alfalah Limited 4. To give tokens to the customers. 5. To do the filing of various forms. 1. Fill the cash deposit slips for the customers: Many customers want to deposit cash into their own account or into the account of any other person. The customer has to fill pay-n-slip to process this. It is very easy to fill it. There are two parts if this slip. One is kept by the customer and one for the bank record. First of all the date is written on top right corners, then one must have the name and account number of the person in which he wants to deposit the amount. Then the customer has to select the mode of payment. Then the amount in words and figures is also written on the slip. The amount in words and figures must be same otherwise the bank will not accept the slip. At the end the signature and contact number of customer is required. After filling the slip the customer is sent to cash counter where the amount written on the slip is received by the cashier and supervised by the deposit in charge. He then stamps Cash Received and hand over the customer receipt to the customer.

2. Fill the cheque deposit slips for the customers:

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Filling of pay in slip of deposit of cheques is very much similar to the pay in slip of the cash. The date, name and account number is written in the same way. The only difference is with mode payment, here the customer has to select the mode of payment as Cheque. Then we write the amount in words and figures on the slip. Then put a crossing and a clearing stamp on the cheque. The officer signs the slip and gives it to the customer. These cheques are retained by the officer for entering them into the register. Days serial number of cheques starts from one, we write the account number, in which the cheque is deposited, then the cheque number and amount and then the name of bank whose cheque is it is entered in the register. These cheques are then handed over to the responsible persons, i-e the online cheques are given to the person dealing online, the local cheques are given to the person who is on posting of local cheques and cheques of other banks are given to the person who is on clearing.

3. Fill the debit card application forms Another duty was to fill the debit card application forms of the customers and also check for the new debit cards received by the bank there is a need to write the complete account number and complete address of the applicant. It is signed by the applicant. Rs. 200/- is deducted from the account of the applicant as debit card charges and this card will be received within 10-15 days of application.

4. To give any other information regarding Bank Alfalah Limited: It was my duty to help the customers in case of any inquiry. For example if the person want to get loan from the bank then he is sent to loan department and if a person want to get information about foreign trade then he is sent to foreign trade officers. Some other kind of information may include that where is Mr. ABC etc.

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So these are all the duties which one has to perform when one is sent to reception. The main purpose of training at reception is to know customer dealing and how to satisfy our customers needs. 5. Filing of various forms and giving tokens to the customers: My last duty was to give tokens to the customers so that they could do their transactions of money according to their turns and I also use to file various forms required for account opening.

2. ACCOUNT OPENING DEPARTMENT

This department is responsible for the opening and closing of accounts. In consideration of Bank Al-Falah Limited, opening and/or continuing to maintain any account, the Account Holder/Depositor or Investor would be bound by the terms and conditions written on the account opening form. The first part establishes the preference regarding the type of account to be maintained. The various choices offered in this regard are:

Current Account Saving/ PLS Account Royal Profit Account Term Deposit Account Basic Banking Account

Current Account
The current account is the most common account and the most preferred amongst business concerns. There is no restriction on the amount of withdrawal. Current account enables the client to do cash transactions in a more efficient manner.

Features

Current Accounts can be opened in the BAL with the sum not less thanRs.10,00/University Of Central Punjab

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No Profit No deduction of Zakat Account close charges Rs.150 Service charges for maintaining minimum balance Rs.100 Online Charges Rs.100

Saving / PLS Account

In Pakistan (PLS) saving account was introduced in January 1982. Individuals who wish to invest their money in order to get profit maintain this account.

Features

The minimum balance requirement for opening the account is Rs.5000. There can be profit or loss on the investment of the Customers funds deposited with the bank and this amount shall be acceptable to the Customer. The profit is paid half yearly.

Deduction of Zakat Withholding tax on profit @ 10% No Service Charges to close the account Service Charges for maintaining minimum Balance Rs.50 Online Charges Rs.150

Royal Profit Account

Royal Profit is also opened in BAL and it is not the most common account. Royal profit has some features.

Features
The minimum balance requirement for opening the account is Rs.50, 000. Profit on Monthly Basis Higher the amount higher the profit Deduction of Zakat and Withholding Tax

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No Service Charges on minimum balance requirement but no profit for that month. No Charges to close to Account

Term Deposit Account

A term deposit is a deposit that is made of a certain period of time. At the end of specific period the customer is allowed to with draw the principal amount.

Features
Fixed Profit The longer the period for which the amount is kept higher is rate of interest. Term Deposit usually for the period of three months, six months, One year, and five years. Deduction of Zakat and withholding Tax @ 10%.

Basic Banking Account

Basic Banking Account is opened is BAL. The minimum amount deposit in this account is very small as compared to other accounts.

Features
Minimum Deposit amount is Rs. 1000 1st two transactions is free of cost Bank can close the Account after six month if balance is zero.

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PROCEDURE

TO

OPEN

AN

ACCOUNT

Prescribed form is filled and signed by the customer. Specimen signature card (SS card) is signed by the client and bank keeps it for reference purpose. A requisition for the cheque book attached with the form is to be filled and signed by the client. The signatures of an introducer on the account opening form are must. Then initial deposit is to be deposited in cash. Here a step by step procedure is given for account opening. THE ACCOUNT OPENING FORM When a client comes to the bank, and makes a request for opening of an A/C. The officer says that first fill up a prescribed application form. If he/she wants to open a PLS A/C, then he/she has to fill a form according to the account. COMPLETION
OF

THE FORM

The name, occupation, and complete address of the person opening the account are written in the columns are provided in the form. One signature of the person is taken on the face of the form and one is taken on the backside. These signatures should be usual signatures and he would operate the account with them future. INTRODUCTION The introduction of a current account holder is accepted for the opening of either a current account or a solving account. The introduction of saving bank account is accepted only for saving bank accounts. The signature of the account-holder introducing the account is obtained at the place provided for in the account opening form. SPECIMEN SIGNATURE CARD The signatures of the client are obtained on a specimen Signature card. These cards are obtained in duplicate with two signatures on each
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card from the customer. Every time a cheque is received for a payment from the client, the signature on the cheque are verified by comparing them with the S.S. Card.
KYC form: This form is also filled while opening any account. It contains the information about account holder like; profession or business, account in any other bank, residential details, vehicle details, employer or business address etc. The purpose of KYC form is to know whether account holder really earns much to hold the balance in its account that it contains. The purpose is to avoid opening an account of a person who seems to earn illegally or black money.

ACCOUNT NUMBER When all the formalities are completed then the final approval of account has to be taken from the Branch Manager. After obtaining approval of the branch manager an account number is allotted to the customer all the information is entered into the computer. Then that account number is printed on the cheque book, S. S. cards and account opening form.

Accounts of General Customers

Minor Account Illiterate Person Account Joint Account

Accounts of Special Customers

Individual Account Proprietorship Account Partnership Account

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Joint Account
These are the account of two or more persons who are neither partners nor trustees.

Account Opening Procedure Title of Account Title of account holder should mention the names of all the joint account holders. Special Instruction

At the time of opening the account clear and specific instructions should be obtained regarding operation of the account and payment of the balance at the death of one or more joint account holders in the following manner: The account shall be operated by any joint account holders singly. By either or survivor singly By any two or more joint account holders or by any two or more survivors jointly. By all the joint account holders jointly By all the survivors jointly.

These instructions as far as possible should be obtained in handwriting of the parties concerned, under the signature of all the joint account holders.

Trust Account
According to section 3 of Trust Act, 1882:
A trust is an obligation annexed to the ownership of property and arising out of a confidence proposed in and accepted by him for the benefit of another, or of another or owner. Account Opening Procedure:University Of Central Punjab

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Branches are allowed to open the Trust Account subject to the prior approval of Area Manager, after scrutiny of the legal documents by the legal advisor. Title of Account:The account should be opened in the name of the trust. However, if the account is opened in the name of the trustees, the account should not be treated as a joint account, rather it should be treated as a trust account. Special Instructions:The Banker should examine the trust deed very carefully. Particular attention should be paid to the borrowing powers, status of account in case of death of any trustee or signatory, and provisions for the appointment of new trustees.

Documents: Attested photocopy of Computerized National Identity Cards (CNIC) of all the trustees. Attested copy of Certificate of Registration. Certified copy of Instrument of Trust / Trust Deed

Mode of Signature All the trustee are required to sign the account opening form, Specimen Signature Card, and Cheque book requisition slip in their official capacity. Clubs, Societies and Associations Account These are non- trading / non- profit organization and are formed for the promotion of culture, education, recreational activities and charitable purpose etc.

Account Opening Procedure Title of Account

Account must be opened in the name of organization in the following manner e.g. Islamabad Cricket Association
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Operational Instructions

All the parties must be in accordance with the clauses of the resolution. In case of death of office bearer, account should be blocked until new resolution is received.

Documents: Copy of bye- laws / regulations. List of members of managing / executive Committee. Copy of certificate of Registration (if registered) Copies of CNICs of the members of Executive Committee. List of names of officials authorized to sign on behalf of the organization along with the Specimen Signature under the signature of the Secretary of the club/society.

Operations department
ISSUANCE OF CHEQUE BOOK
After opening an A/C with the bank, the A/C holder once again makes a request in the name of bank for the issuance of a cheque book. The A/C holder mentions title of A/C, A/C number, sign it properly and mentions the no of leaves he requires. Normally BAL issues a cheque book having at least
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25 leaves. Every cheque book also contains one leaf that is used for another issue of a cheque book.

ENTRY

OF A

CHEQUE BOOK

Before issuance of a cheque book, the employee performs certain functions. They include: Stamping every leaf with specific A/C number. Enters it in the cheque book issue register. Check whether or not the signatures are verified by a senior officer, if no then first he gets them verified. After entry in the manual register, the employee issues the cheque book to the A/C holder after his/her signature on the register.

FILLING OF ACCOUNT OPENING FORMS

For current and saving account, separate files are maintained in which the forms are pasted or punched in numerical order and kept under lock and key in fireproof steel or safe. This is because these forms are the basic documents of the contract with the customer.

MAINTAINING

THE

COMPUTER RECORD

After opening of account, every information regarding the account is entered into the computer. Currently, a program named Bank smart is being used for this purpose. Record of all the transactions regarding the account of a customer is kept updated in the computer. Documents to be attached with the account opening form are: ID card of the customer NTN number or NTN certificate Letter head of business if the account is to be maintained with the name of business. partnership deed and/or other business documents

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Remittances
Remittance is transfer of funds from one place to another or from one person to another. A Remittance is an important service provided by banks to customers as well as non-customers. Since it is not a free service it is a source of income for the bank.

Parties involve in remittances

Four parties involved in remittance Remitter Remittee Issuing Bank Paying Bank

Remitter One who initiates, or requests for a remittance. The remitter comes to the issuing or originating branch, asks for a remittance to be made, and deposits the money to be remitted. The bank charges him a commission for this service. He may or may not be the branchs customer.

Remittee A Remittee is also called the beneficiary, or the payee. The person in whose name the remittance is made. A remittee is also the one who receive the payment. Issuing Bank The bank that sends or affects the remittance, through demand drafts, telegraphic transfers, or Mail Transfers.

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REMITTANCES DEPARTMENT
SERVICES

OF

REMITTANCES SECTION

Payment Orders (amount transfer within the city)

Demand Drafts (intercity amount transfer) Pay Slips (payment at the spot usually bank expenses) Call Deposits (used for bids)

BOOKS MAINTAINED

FOR

REMITTANCES

1. Pay order issued register 2. Pay slip issued register 3. Demand draft issued register 4. Demand draft payable register 5. Call deposit issued register The software Remittance smart is used for local remittances.

1-PAYMENT

ORDERS

Payment Orders are issued for the money transfer with in the city. The procedure to issue a remittance in the software is i. New issuance ii. Add iii. Drawn on (other branch of BAL in case of DD & same branch in case of payment order) iv. In favour of (the beneficiary) v. On account of (the sender of remittance)
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vi. Amount vii.Date

Accounting entry

a. By depositing cash the cashier debit cash and credit miscellaneous. After that the remittance officer debit miscellaneous and make a credit to pay order.
b.

By transfer (from clients account) a debit entry to Client account and a credit to Cheque are made & after that a debit to Cheque and credit to Pay Order & Commission & Charges is made.

Note: The miscellaneous account should show a zero balance at the end of the day. 2-DEMAND DRAFTS a. Accounting entry by drawing branch (says Gulberg Branch) is made by debiting Clients Account and crediting Head Office Treasury Account and Commission & Charges. b. Accounting entry in the branch on which the DD is drawn on receipt of advice from drawing branch is made by debiting Head Office Treasury Account and crediting Demand Draft Payable & when DD is paid a debit entry for DD Payable and a credit entry for Clients Account is made. When the customer purchases a draft, the drawing branch sends the advice (a copy of DD) to the drawee branch and the original copy of DD is given to the purchaser. On the arrival of advice the drawee branch debits HO account and credits the DD payable account. When the customer comes with the original
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DD to the drawee branch, his account is credited by debiting the DD payable account. 3-CALL DEPOSIT Call deposit is a way to pay a liability through a bank. This is used in order to eliminate the risk in money transfer. This is generally used for bids and tenders. Accounting entries when the payer deposits the cash is made by debiting cash and crediting call Deposit & when the beneficiary presents the instrument to the branch a debit to Call Deposit and a credit to Client Account is made. 4- PAY SLIP Pay lip is used to pay the day to day expenditure of the bank on the spot. The regular services providers like security company, stationery suppliers etc. Accounting entries are made by debiting Expense Account and crediting Withholding Tax & Pay Slip. After that a debit to Pay Slip and credit Cash is made by remittance officer.

TELEGRAPHIC TRANSFER
When a TT comes to the college road branch along with the advice, the following entry is passed by debiting the HO Treasury Account and crediting the TT Payable account. After that a debit entry for TT Payable and a credit entry for the Client Account are made for the completion of the TT Cycle.

Clearing department
A system by which banks exchange cheques and other negotiable instruments drawn on each other within a specific area and thereby secure payment for their clients through the Clearing House at specified time in an efficient way.

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EXPLANATION By clearing means sometimes the account holder of Bank Al-Falah Limited present a cheques, which is not drawn on Bank Al-Falah but the person, has an account in Bank Al-Falah Limited. In this case bank accepts this cheques in clearing department and later on collets the amount from bank on which cheques is drawn through clearing house. This function is called clearing.

Types of clearing
There are four types of clearing: Inward Clearing Outward Clearing Intercity Clearing Same Day Clearing

Inward Clearing:
Those Cheques and other negotiable instruments which are drawn on BAL Gulberg Branch Lahore, sent by other banks, constitutes the inward clearing of Bank Al-Falah Limited. After having all the stamps and dates of cheques confirmed, the concerned drawers accounts are debited in BAL Gulberg Branch Lahore.

Inward Return:
Presentation Flaw e.g. Clearing stamp not affixed or wrong discharge given by collecting banker. Defect in the Cheques i.e. Post dated cheques, unauthorized cutting. Insufficient Balance

Outward Clearing

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When cheques and other negotiable instruments drawn upon other banks like City Bank, MCB, ABN-AMRO or Askari Bank of the same city (Lahore) are presented in BAL Gulberg Branch to deposit them in the respective payees accounts, these instruments are lodged in outward clearing of BAL Gulberg Branch. Outward Return Cheques return will be treated as inward cheques. Enter the cheques in cheques return register, mentioning the reason as appearing on the cheques return memo received from the paying bank. Advice the customer about fate. Return the cheques to the customer after getting sign on the register. Collect the cheques return charges as per S.O.C (Schedule of charges).

Inter City Clearing:

The cheques that are presented in intercity clearing are of another city and received by air. In this type of clearing the bank confirm at that time that the cheques are clear or not and give to the rider.

Same Day Clearing:

The cheques that are presented in same day clearing are the local cheques and these cheques are clear in same day. Basically it is the benefit that is provided to customer.

Clearing process
Stamps Put On the Cheques:
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When the cheques are presented in BAL Gulberg Branch to be deposited in their respective payees accounts, different stamps are put on cheques before their lodgment in outward clearing.

Crossing the cheques:

Crossing means two parallel lines, drawn across the face of the cheques with or without words written in between them. Crossing may be general or special. In clearing, cheques are crossed specially. Cheques are stamped with banks name between two parallel lines to constitute special crossing. After the cheques have been crossed specially, the holder cannot receive payment except through the banker named on the cheques crossing saves the instrument to go it in illegal hands. If, crossed cheques is lost or stolen, there is no risk involved. So it is an effective means of minimizing the risk of loss.

Clearing Stamp:
After the cheques have been crossed specially, clearing stamp is put on the cheques and other instruments, with the next date, so these cheques would have to be presented in their concerned drawee banks on the subsequent day.

Endorsement Stamp:
The word endorsement means anything written or printed on the back of an instrument. So endorsement stamp has to put with words Payees account Credited in Bank Al-Falah Limited, Gulberg Branch, Lahore.

National Institutional Facilitation Authority:

After putting these three stamps on cheques & other negotiable instruments, they are sent to NIFT. NIFT after segregating the cheques of different banks delivers them to their concerned banks.
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SEND Report To The Bank:

After delivering the cheques to different banks NIFT send report to BAL Urdu Bazaar Branch Lahore, then the banks staff tally the amount of that report for its own record.

Delivered Cheques to Respective Banks:

Next morning, these cheques are delivered to the respective banks between 9:00 to 9:30AM. In the same manner, other banks present their clearing drawn on Bank Al-Falah. 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. After proper scrutiny of cheques, verification of signatures and confirmation of balance in the account, the Officer Clearing Department Debit the customer Account. If any cheque is not passed due to insufficient balance or any other reason, Officer Cash Department returns the same cheque by attaching a cheque return memo containing reason for return.

Credit the Customer Account:

If the cheques are clear then the BAL Gulberg Branch Lahore credit the customer Account. If the bank receives the outward return due to any reason then this cheque is entered into the cheque returned register and bank charges are deducted according to the schedule of charges. Then send the outward and return inward as IBDA (Inter Branch Debit Advise) to Main Branch LDA Plaza. And LDA Plaza sends outward return and inward to BAL Gulberg Branch, Lahore.

Procedure of settlement
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Assume that BAL got the cheques which are drawn on HBL, NBP, and MCB for amount Rs.50, 000/-, Rs.30,000/-, Rs.15,000/- respectively, its total being Rs.95,000/-. It means that this amount is to be credited to BAL account with NIFT. On the other hand the cheques drawn on BAL are from HBL, NBP and MCB of Rs.15,000/- Rs.75,000/-, and Rs.30,000/- respectively, its total being Rs.120,000/-. It means that this amount is to be debited from BAL account . The difference between Rs.95,000/- credit and Rs.120,000/- debit is Rs.25,000/- debit, which means the house is against BAL for Rs.25,000/-.

Trade finance departments

Trade Finance involves the import and export activities. This department provides protection to the rights of importer and exporter. The function of this department is to serve as a bridge between the importer and exporter in order to settle a transaction. Trade Finance Department handles two activities: Import Export

Import
The bringing of commodities into Pakistan from outside by sea, land or air. Requirement for the Importer:-

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These requirement / document must be fulfilled from importer before doing the import: NTN Sale Registration Certificate Membership from Chamber Of Commerce Methods of Doing Import Letter of Credit Contract Advance Payment Open Account

Letter Of Credit
A Letter Of Credit is a financial instrument issued by a bank on behalf of the registered customers. It gives surety to the Exporter that his amount is safe. The letter of credit is a written instrument issued by the buyers bank authorizing the seller to draw in accordance with certain terms and conditions.There are four basic parties involved

Importer Issuing Bank Exporter (Beneficiary) Advising Bank

The record of this foreign exchange entered in State Bank Of Pakistan (SBP) and this record shows that how many Foreign Exchange go outside Pakistan that is helpful to count the total imports of Pakistan.

Exports

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Exports are major sources of earning foreign exchange and play an important role in the economic development of the country. It helps to utilize excess resources of the country. Exports mean selling goods to another country. Exports of all eligible commodities through authorized banking channels are admissible under exchange control regulation.

Requirement for the Exporter: These requirement / document must be fulfilled from exporter before doing the export:

NTN Sale Registration Certificate Membership from Chamber Of Commerce

As well as the market stability, reputation, financial position of the exporter is first of all checked. Documents to Be Attached For Export

Commercial Invoice 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. In this form, all the conditions are given, which are necessary for exports. Letter of credit: It is written agreement between importer and exporter.
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Certificate of Origin (Form A) Insurance (if any)

Procedure:

Receipt of Letter Of Credit: Issuance of E-Forms that is verified by an authorized signatory. Copies of E-Form Original: is sent to the custom officer Duplicate: Bank receive the duplicate Triplicate: is sent to the State Bank Of Pakistan Quadruplicate: is kept by the exporter for his personal record. Verification of E-Form Export Documents Scrutiny Of The Documents Dispatch Realization of Export Proceeds.

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ANALYSIS
Following analyses have been considered important to undertake to determine the capabilities, financial and market position of Bank Alfalah Limited:

Financial Analysis Swot Analysis

FINANCIAL ANALYSIS
Financial analysis, as the name implies, means the analysis of financial data of a business entity in order to determine its financial condition at any particular point in time during its life cycle. To evaluate the financial condition and performance of a firm, the financial analyst needs certain yardsticks. To evaluate BALs financial condition and performance, I am going to undertake following analyses making use of BALs balance sheet and income statement

Ratio Analysis

RATIO ANALYSIS
Financial ratios are used to weigh and evaluate the operating performance of the firm. Ratio means one number expressed in term of another. A ratio is a statistical yardstick by means of which relationship between two or various figures can be compared or measured. The term accounting ratio is used to describe significant relationship between figures shown on a balance sheet, profit and loss account or in any other part of accounting organization. Accounting ratio thus shows the relationship between the accounting data. To understand BALs banks financial position the following ratios analysis are considered to be analyzed:

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PROFITABILITY RATIOS:
The continued viability of any bank depends on its ability to earn an appropriate return on its assets and capital. Good earnings performance enables a bank to fund its operations, remain competitive in the market and increase or decrease in market funds. Profitability reflects not only the quantity and trend in earning but also the factors that may affect the sustainability or quality of earnings. Following profitability ratios have been calculated 1. Net Profit Margin 2. Net Interest income to Gross income Ratio 3. Operating Expense Ratio 4. Administrative Expense Ratio 5. Total Asset Turn over 6. Return on Assets 7. Return on equity 8. Non interest income to total assets 9. Non interest expenses to total assets

1. NET PROFIT RATIO

Net Profit after Tax X 100 Net mark-up/interest income after provisions

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2006 1762694 / 5259357 x 100

2007 3130229 / 6786197 x 100

= 33.52%

= 46.13%

The above ratio indicates that the proposition of profit has been increase from 33.52% in 2006 to 46.13% in 2007.

2. NET INTEREST INCOME

TO

GROSS INCOME RATIO

Net mark up / interest income x 100 Gross income Where gross income = net interest income + non mark up income 2006 5958584 / 8483996 x 100 2007 9162908 / 12824663 x 100

= 70.2%

= 71.4%

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This ratio has increased. It means share of interest income is increasing.

Slowing interest rates have two sided effects: lowering incomes & lowering interest expenses. So in such scenario bank is able to succeed if it lowers its interest expenses greater than decrease in interest income. Bank can managed it by reducing borrowing from financial institutions which is more costly than deposits.

3. OPERATING EXPENSE RATIO

Non Markup Expense Gross Income Where gross income = net interest income + non mark up income 2006 5918051/ 8483996 x 100 2007 8289111 / 12824663 x 100 X 100

= 69.75%

= 64.6%

In 2007 BAL has cut down its operating cost expenses from 69.75% to 64.6%.

4. ADMINISTRATIVE EXPENSES

TO

TOTAL DEPOSIT RATIO

X 100

Administrative expenses

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Total deposit 2006 5874745/ 239509391 x 100 2007 8272587/ 273173841 x 100

= 2.45%

= 3.03%

BAL has shown mixed capacity to absorb administrative expenses. In 2007, administrative expenses have increased to 3.03% due to expanded branch network.

5. TOTAL ASSET TURN OVER

Interest/mark-up/ return earned x 100 Total Assets 2006 21191470/ 275685541 x 100 2007 25783871 / 328895152 x 100

= 7.69%

= 7.84%

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It is increasing, which is favorable. It means bank is able to utilize its assets efficiently in generating its mainstream income.

6. RETURN

ON

ASSETS

Net profit after tax X 100 Total assets 2006 1762691/ 275685541 x 100 2007 3130229 / 328895152 x 100

=0 .64%

=0 .95%

ROA is the most comprehensive measure of banks earning capacity. Net profit margin ignores efficiency concept while total asset turn over ignores earning perspectives. ROA takes both perspectives into account. Thats why it is most widely used indicator for representing the earnings of bank over time period. Higher it is better it is. An increasing trend of this ratio signifies increased efficiency of management of a bank to improve upon its earnings capacity. University Of Central Punjab

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7. RETURN

ON

EQUITY
Net profit after tax X 100 Capital fund 2006 2007 3130229 / 16219844 x 100

1762691/ 12241945 x 100

=14.39%

=19.29%

BAL Has shown mixed trend in ROE. In 2007, the rate of change in net profit after tax is more than capital fund.

8. NON-INTEREST INCOME

TO

TOTAL ASSETS
x 100

Non-interest income Total assets

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2006 3224639/ 275685541 x 100

2007 6038466 / 328895152 x 100

=1.17%

=1.83%

This ratio has increased in 2007. It shows that bank has turned to noninterest income to sustain its earnings and vice versa.

9. NON-INTEREST EXPENSE

TO

TOTAL ASSETS
x 100

Non-markup expense Total assets 2006 5918051/ 275685541 x 100

2007 8289111 / 328895152 x 100

=2.15%

=2.52%

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Non-interest expenses represent operating expenses such as administrative expenses, staff salaries and other charges plus extra ordinary and unusual items if they represent expense. On the whole it is observed that this ratio it is quite reasonable when consider it in terms of the general financial position of the bank and this little increase could be associated to operational negligence.

SWOT ANALYSIS
According to David Jobber (2004) a SWOT Analysis is a structured approach to evaluating the strategic position of a business by identifying its strengths, weaknesses, opportunities and threats. It provides a simple method of synthesizing the results of the marketing audit by summarizing the companys strengths and weaknesses as they relate to external opportunities and threats. Strengths and weaknesses will derive from the internal marketing audit analysis. Opportunities and threats will derive from the external marketing audit analysis.. Following figure illustrates the strengths, weaknesses, opportunities and threats of BAL:

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Competition Capitalization on Compassionate Advertisement OPPORTUNITY WEAKNESS STRENGTH THREAT Political information Customer Problem of Instability technology Service Employees New Entrants Establishment Goodwill and of No Foreign Mergers foreign branch Trust Network & Acquisitions network Wide Branch Uneven Establishment Network Distribution of of local Broad Product work branch network Range Marketing Computerized System Highly Experienced Team of Professionals

EXTERNAL INTERNAL

SWOT

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STRENGTHS
Bank Alfalah is considered to be a very sound bank in the financial circles. Its a bank where the customers can safely keep their money as long as they want. BAL strengths can be categorized as: Bank is financially strong and has a huge deposit reserve. Highly Professional Human Resource Department. Commitment of Sponsors. Efficiency. Vastly Experienced Management. Foreign Trade is the focus of bank. It has become an ideal bank for the importers and exporters. Crucial Location Of Branches. Humble Management. Personnel of Alfalah are well trained and highly skilled. Majority of employees has many years of experience in banking sector and are an asset for the bank. Bank Alfalah has a wide network of branches at the ideal locations, catering the financial needs of its clients. Some most important of the above are discussed below.

COMPASSIONATE CUSTOMER SERVICE

The officers of BAL are considered as one of the most able professionals in the banking world. However, they have added some local flavour in accordance with their targeted segmented. Especially, in Wah Cantt Branch, I observed that they

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interact with their clients as if they are their personal friends and discuss about their problems as their own.

GOODWILL & TRUST

As a result of the compassionate and personalized services of the officers, the clients perception for BAL is very high. They have trust and feel themselves to be secure while banking with BAL.

FOREIGN TRADE BUSINESS

The bank is focusing on Trade Financing; it attaches great significance to the development and maintenance of healthy correspondent relationships with other banks and financial institutions. Towards this pursuit, BAL has developed excellent business relations with foreign banks, whose support in terms of lines of credit extended to the bank, has enabled it to handle the ever-growing trade volumes.

BROAD PRODUCT/SERVICE RANGE

BAL has a broader range of its products and services to cater the requirements of its customers for personal, corporate, commercial and electronic banking.

HIGHLY EXPERIENCED TEAM OF PROFESSIONALS

BAL has a highly experienced team of professional with strong local market expertise and skills to deal with versatile customer base.

WIDE BRANCH NETWORK

Bank Alfalahs objective has been to expand its branch network to meet clients needs. It is heartening to note that in just three years, which is considered the infancy stage in the industry, the bank has increased the branch network from 3 to 23. And, due to the growing business requirements, there are 10 proposed branches in different cities. The expansion program is strategically important to increase customer base and to approach different customer segments.

THE COMPUTERIZED SYSTEM

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BAL has got a reliable and easy to use internal computer system. Every information regarding the transactions in customers deposits has been computerized. Currently, Bank smart is being practiced for this purpose.

WEAKNESSES:
Perfection is only the claim of Allah Almighty. No other being living or dead can say this for itself. Similarly, Bank Alfalah also has some shortcomings that need to be mentioned:

Bank Alfalah Limited Does Not Possess Foreign Network. Most of the employees are overloaded with work. No Advertising in Electronic Media. Disproportionate Presence Of Old Staff In The Upper Management Hierarchy. Foreign Banks Still Are A Little More Prestigious. There is uneven distribution of work and promotions are not very timely.

The main weaknesses are discussed. ADVERTISEMENT

BAL has formulized a lot of products and services for its customers, even more than other commercial banks, but any advertisement on electronic media has not been seen. Since, BALs major competitor Union Bank Limited has started large media campaign, so keeping in view these threats; Bank Alfalah should emphasize more on its advertisement.

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PROBLEMS

OF

EMPLOYEES

I observed during my internship that some of the employees were burdened with over work. So I think that the work should be distributed according to their post and capabilities.

OPPORTUNITIES:
Bank Alfalah has grown up its business with a very high pace and it has got tremendous popularity, even with in a very short span of time. There are many opportunities for the bank and by availing that it can stand amongst the top foreign banks.

Extension of local branch network. Establishing foreign branch network. Capitalizing on information technology. Unexplored market of multinational corporations. Marketing.

INFORMATION TECHNOLOGY
All the opportunities of the 21st century are to be availed in the information technology. Information technology is the future. Therefore BAL should emphasize much on IT, especially the E Banking. Bank can design a universal account like other foreign banks, to enhance online facilities.

EXTENSION

OF

BRANCH NETWORK
Bank Alfalahs growing business requires an extensive branch network.

There are great opportunities for BAL for the expansion of its business in Wah Cantt.

GROWTH

IN

DEPOSITS

BAL has introduced a number of financial schemes including special royal accounts. These accounts have their unique features (discussed earlier). During the last three years, BALs deposits have been increasing @ 30%, which is a very

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healthy sign. Therefore, with the commencement of new schemes there can even be a greater increase in its deposits.

MARKETING
More market share and customers can be gained by effective marketing strategies.

THREATS:
. Following are main threats to the bank Network expansion by foreign banks. Terrorist image of the country. Inconsistency in government policies. New Entrants. Mergers and Acquisition.

ECONOMIC CONDITIONS
Despite the difficult circumstances that confronted the banking sector in particular and the country in general, Bank Alfalah has been still highly profitable. But, the facts cant be denied and there might be an adverse impact of such situation.

COMPETITORS
Bank Alfalah is facing a strong competition by its major competitors; Union Bank and Askari Commercial Bank. Business of these banks is also growing with very high pace.

NEW ENTRANTS
In the recent decade Pakistani banking sector has witnessed a gigantic growth which resulted into the emergence of many new banks in the bankji9ng sector e.g. Askari etc. are also giving though competition to foreign banks with similar products and services on low charges.

MERGERS

AND

ACQUISITIONS
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The rapid growth and intensive competition in the Pakistani economy, many banks are going into M & A (Standard with Union, NIB with PICIC) to remain in the competition and to gain larger market share.

RECOMMENDATIONS
After spending six weeks at different departments of the Bank Alfalah, interacting with the employees, getting their views, observing the organizational structure and design, I have come up with the following suggestions that in my view, will definitely improve a few weaknesses observed in the bank by me.

In order to improve the image of bank and create public awareness, bank should establish separate Marketing department. Account opening form should contain an option of transformation of funds/ deposit after the death of account holder to his family or

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nominee to avoid the interference and lengthy procedure of taking permission (for the transformation of funds) from the court. The management should work free from political pressure. A plan should be developed to employ professionally qualified new blood, relating to finance and marketing, their recruitment should be strictly on the basis of merit and induction should be confirmed after proper training. The number of allowances and perquisites for the employees should be increased to ensure that they put their body and soul in the jobs assigned to them. The rates for the various charges provided by the bank should be brought down a bit, as it would result in increase in the number of customers of the bank. Management should distribute work equally among different employees. Some of the employees are overburdened while some sections are overstaffed. Bank Alfalah Limited should embark upon an even more aggressive management strategy of expansion of branch network not only in the local market (Pakistan), but also in foreign markets because that is a huge untapped opportunity for Bank Alfalah Limited. One of the most pressing needs of the time is to advertise Bank Alfalah Limited in the electronic media. Bank Alfalah Limited has making very little, employed advertisement in electronic media as a full fledge marketing tool. I think it is high time that BAL does this.

Bank Alfalah Limited should evolve a very serious management policy to attract multinational corporations as its clients. This action, if actualized, would not only prove to be highly profit generating, but it would also contribute a lot towards Bank Alfalah Limited image building.

Presently, like most of the commercial banks working in Pakistan, a high percentage of Bank Alfalahs credit client hail from two or three industrial sectors. In the near future the management of Bank University Of Central Punjab

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Alfalah Limited should try its level best to diversify as regards the mix of its advances; reason being over reliability on one sector of the economy could hurt the financial soundness of the bank if any adverse change in the external environment takes place.

CONCLUSION

To conclude, Bank Alfalah is an established bank, which is growing at a rapid pace. Bank has a good working environment and employees possess a cooperative sense. Banks takes care of its customers as well as it employees by giving benefits like bonus, gratuity funds, loans, increments and other University Of Central Punjab

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entertainment facilities. All the working is based on networking through information technology which makes the work more efficient and in wellorganized manners. The good thing about the bank is that it introduces innovative products time to time to boost the customers value. Bank also has a diversified investment in telecommunication sector that is Warid Telecommunication. Employees are very competitive and have an ability to lead; they always come up with new ideas to bring change, continuous improvement and for organizational development. There is dual check and balance by the officers on each transaction. The implications from the analyses undertaken of the financial statements of Bank Alfalah year 2006 and 2007 indicates that bank is doing a profitable business in Pakistans economy. The best thing, which, I observed during my internship, was that the bank had a good, friendly environment. In this regard I would like to mention the behavior of employees with internees. All the employees were extremely helpful, despite the fact that they had to follow a very tight schedule. Still they guided me as much as they could, especially the Operations officer who really has an outstanding motivational and communicational skill. In short, Bank Alfalah is a flourishing bank and I find myself very honored to work in such organization, which will help me in my future.

REFERENCES
The entire information of this report has been collected from following sources:
MR. AZEEM KHAN_ MANAGER OPERATIONS
OF

BANK ALFALAH

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 MR SYED ASAD ALI SHAH_OPERATIONS OFFICER MR. SHAHZAD_MANAGER TRADE FINANCE MISS SONIA SOLOMON_
CUSTOMER RELATIONSHIP OFFICER

BIBLIOGRAPHY
BOOKS

CHARLES. H. G., FINANCIAL STATEMENT ANALYSIS, (7TH Edition), ANALYSIS The University of Toledo. JOBBER, D. (2004) PRINCIPLES AND PRACTICES OF MARKETING (4th Edition), London, The McGraw-Hill Companies. LAWRENCE. J. G., PRINCIPLES OF MANAGERIAL FINANCE, (10TH FINANCE Edition), PEARSON EDUCATION (Pvt.) Ltd. Singapore M. A. GHANI, (2006) ADVANCE ACCOUNTS, PAK Imperial Book ACCOUNTS Depot, Pakistan. NORMAN G, and PATRICK, (1998) INTRODUCTION TO FINANCIAL MANAGEMENT, Star Publishers (Pvt.) Ltd. AUSTRALIA MANAGEMENT MATZ USRY. COST ACCOUNTING PLANNING AND CONTROL, (7th Edition) Southwestern Publishing Company. MUHAMMED A. and SOHAIL A. ACCOUNTING, (3RD Edition) Published by Munir Ahmed, Paksitan. RIAZ A. MIAN (2003) MONEY BANKING AND FINANCE, Published by FINANCE Munir Ahmed, Pakistan. SOHAIL A. and ZAFAR A. (2005) COST ACCOUNTING, Published by ACCOUNTING Sayed Mubin Mehmood & CO. Pakistan. SAEED NASIR. BANKING, CURRENCY AND FINANCE. Pakistan FINANCE

WEB SITES
www.bankalfalah.com

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