University Of Central Punjab


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.

University Of Central Punjab


Intelligence is the sum of total capabilities. The justice to one’s 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.

University Of Central Punjab


Syed Asad Ali Shah. I pay thanks to all my teachers whose efforts made me capable of understanding the things happening technically. I would like to express my deepest gratitude to my Parents. whose outstanding Managerial skills. Operations officer. 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. University Of Central Punjab 4 . Finally. Alfalah Limited. I express my immense appreciation for Prof Nisar Ahmad my internship teacher and Mr. 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. Without their able guidance I was unable to complete my project. Bank Shah. I acknowledge the UNIVERSITY OF CENTRAL PUNJAB for giving me a platform. breadth of knowledge and counselling assured this project’s clarity and completeness.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 acknowledge the endless efforts and support empowered by the prayers of my Well-wishers who helped me for the successful completion of this project. without Parents their prayers I am nothing.

Undoubtedly Alfalah is one of the major players in Pakistan’s banking structure with the distinction of market leader within its competitors. analysis also indicates slight problems in the operations. Its banking operations commenced from November 1. 1997 as a Public Limited Company under the Companies Ordinance 1984. The overall condition of the bank is excellent. Bank Alfalah Limited was incorporated on June 21. 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 today’s modern banking system. 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. I found it difficult in the beginning but when I started. The financial analysis clearly describes that Bank Alfalah has a profitable business in Pakistan however. there is still has some roam for improvement. However. To stay in competition and have competitive edge Bank Alfalah has to undertake some certain decisions according to the Pakistan’s scenario. when the time come to put all the experiences and learning from the internship in the form of a report. ALLAH helped me and I enjoyed writing all that I learnt. University Of Central Punjab 5 .EXECUTIVE SUMMARY My experience of carrying out the internship in Bank Alfalah was very informative and enjoyable in a very good working environment. Bank Alfalah is enjoying its strong financial and market position with many strengths however. 1997. Bank Alfalah has a varied product and service range to cater its valued customers. I explored the real life practical business activities and had the opportunity to incorporate these with the pure academic theoretical learning.

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’. These receipts were fully accepted in payment of debts. Many authors. and then the receipts were drawn in such a University Of Central Punjab 6 .INDUSTRY PROFILE BANKING HISTORY There is bottomless debate going on to determine the origin of the word BANK. 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. historians and academicians have different point of view about this word. However. 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. 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. 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.

Before the partition of Sub Continent the entire banking business was almost controlled and managed by non-Muslims.e. coinage currencies. this bank dominated the business in the Mediterranean. 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. Due to lack of resources and without having its own Central Bank. Pakistan and India. These receipts can be considered the earlier bank notes. Hence.0 millions in Pakistani banks. 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. 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. BANKING HISTORY OF PAKISTAN The division of sub-continent took place in 1947 and Pakistan becomes an independent country. The Muslims were University Of Central Punjab 7 . British Empire divided the recourses between two new countries.0 millions whereas the advances were 198.way that it entitled any holder to claim the specified amount of money from goldsmiths. In 1694 the Bank of England was founded by act of parliament. exchange etc between both courtiers i. 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. it was quite difficult for premature Pakistan to develop and run its own banking system. In the following year another bank was founded with the name of Bank of Scotland. unjustified. 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.

Consequently. 1974. The massive drain in bank deposits ruined the Pakistani economy. 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. 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. The Institutions (Recovery of Finances) Ordinance. Therefore. 1984 and Statutory Regulatory Orders (SROs). Under the Banking Companies Ordinance. 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. 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. the Govt. 1956. 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.deliberately kept cut of banking profession by the wealthy Hindu community. 2001. 1962 along with SBP Act. and banking rules & regulations. 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. In University Of Central Punjab 8 . Soon after the partition Hindus and Sikhs started to migrate to India and transferred their capital on an accelerated pace. Companies Ordinance. Bank’s Nationalization Act. It has been empowered to carry out inspections of the banks contained in the Banking companies Ordinance. which gave autonomy to the State Bank in the area of banking supervision.

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. 1997 as a Public Its banking operations commenced from November 1. Bank Alfalah Limited was incorporated on June 21. the State Bank is authorized to take necessary remedial steps. COMPANY PROFILE HISTORY Limited OF BANK ALFALAH Company under the Companies Ordinance 1984. University Of Central Punjab 9 . The bank is engaged in commercial banking and related services as defined in the Banking Companies’ Ordinance. Bank has made significant contribution in building and strengthening both the corporate and retail banking in Pakistan. 1962. 1997. Bank Alfalah has emerged as one of the leading commercial banks in the financial sector of Pakistan.

Royal Patriot and Royal Custodial are prime examples of quality and innovation – providing timely banking opportunities to its customers. 1992 as a public limited company under the Companies Ordinance. most efficient & service oriented institution. University Of Central Punjab 10 . 1984 and commenced banking operations from November 1. Minister of Education. 1962. bank’s products like Royal Profit. ATM Network and a credit card. Following the privatization in July. of Pakistan) acquired its three branches and Habib Credit & Exchange Bank was incorporated on June 21. 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. Government of Abu Dhabi. Habib Credit & Exchange Bank assumed the new identity of Bank Alfalah on February 25. Prioritizing its product portfolio in line with consumer needs and wants. Designing product portfolio in response to customer’s preferences. And with this a challenge was launched.Most of its shares are owned by a consortium of Abu Dhabi. Charged with the strength of the Abu Dhabi based consortium. the challenge to transform this bank into a highly professional. Assessment of the needs and wants of its customers is an on going process at Bank Alfalah. It engaged in commercial banking and related services as defined in the baking Companies Ordinance. Some of our new products in the pipeline include Royal Forex. and under the leadership of Highness Sheikh Nahayan Mubarak Al-Nahayan. 1992. and a prominent member of Royal Family – the bank is energized with the vision of the development of consumer sector in Pakistan. the Ministry of Finance (Govt. After the debacle of BCCI. which helps it to continually develop new products and services. 1998. 1997.

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. towards enhancing its capabilities in the area of automation and technology. Bank Alfalah commits all its energies. professional and advanced banking solutions. To make banking solutions accessible to more and more people. Bank Alfalah made heavy investments. BAL is well positioned to meet client needs. Therefore. BAL has embarked upon a rapid expansion program. rapid change in customer preferences has resulted in a major shift from manual to automated services of the bank. is the key to sustain and succeed in the corporate world.To continuously offer courteous. With its key indicators of progress already soaring to new heights. Concurrently. bank’s team has recently been energized by going through training programs with a focus on Information Technology. Information technology today. Technological developments are opening up new vistas of solutions for distributing traditional financial products. resources and time to cater to all banking and financial needs of customers. resources and time to bring higher value and satisfaction of its customers. the bank is committed to put all its energies. employees and shareholders. with improved competitive advantage. University Of Central Punjab 11 . With a team of talented. service-dedicated professional bankers. during the recent past.

The ratings of first and second and third unsecured listed and subordinated TFC issues of PKR 650 million. MISSION To develop & deliver the most innovative products.1. deliver quality services that contributes to brand strength.(Double A minus). CREDIT RATING PACRA. These ratings denote a very low expectation of credit risk. manage customer experience. PKR 1. strong capacity for timely payment of financial commitments in the long term and by highest capacity for timely repayment in the short term. Entity Rating for long term and A1+ (A one plus) for the short term. a premier rating agency of the country.250 million and Rs. has rated the bank ‘AA’ (double A).VISION To be the premier organization operating locally & internationality that provides the complete range of financial services to all segments under one roof. University Of Central Punjab 12 . thus providing value to the stakeholders of the bank. respectively. 325 million have been maintained at AA. establishes a competitive advantage and enhances profitability.

THE DRESS CODE The dress code is formal. on weekdays. MANAGEMENT STYLE Management is a process of utilizing material and human resources to accomplish designated objectives. you can dress informally. direction. EVENTS AND AT BANK ALFALAH CEREMONIES Get-togethers are arranged for all of the employees of corporate and consumer department on a yearly basis. Special occasions like Pakistan Day. so that they can interact and socialize among one another. and formal shalwar kameez for women. consisting of suit and tie for men. It is a two way street. It involves the organization. gain clarity if they are put in writing. however. listens as well as interacts. Defence Day and New Year get together and Eid Milan Parties are arranged. 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. 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. METHOD OF COMMUNICATION A good deal of verbal interchange takes place in bank each day. formal dress code is compulsory. Such meetings are regular features of efficiently operated bank and take a wide variety of forms. On Saturdays. ranging from daily or weekly officers meetings to annual weekly conferences.CULTURE FUNCTIONS. 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 University Of Central Punjab 13 . Thus the bank is talented in the ability to write clearly which is an invaluable management talent that needs constant practice and development. However. coordination and evaluation of people to achieve these goals. The competent officer discusses rather than direct.

 PROMOTION University Of Central Punjab 14 . leading. It involves organizing. IMPACT OF MANAGEMENT STYLES ON BANK ALFALAH EMPLOYEES ALFALA  MOTIVATION The term motivation implies action to satisfy a need. Firstly employees gain social satisfaction from interactions at the work place. In other works we can say.accomplish agreed upon objectives. Job attitudes and morale are quite positive for two reasons. Working conditions and supervision good. 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. Motivation can be defined as a willingness to expend energy to achieve a goal or a reward. training communicating with and coordinating others. motivating. and employees are motivated in order to enhance their performance and achieve the desired goals. that management should put its eggs in the basket that creates a highmotivated work force. and thus exhibit high productivity.  MORALE AND PRODUCTIVITY The employees of the bank possess high moral. The employees are happy and are also productive workers. The management of the Bank Alfalah focuses on some of the objectives that it wants to achieve. The management styles adopted by the bank affect greatly. secondly high morale result from high motivation to produce.

Sometimes other factors are considered such as length of service. ORGANIZATIONAL HIERARCHY University Of Central Punjab 15 .Bank Alfalah decisions about promotions are decided upon the basis of merit in one’s present position and ability and potential to assume the impossibilities of higher level positions. education. training courses completed and previous work history.

Operation Executive Board of Chairma Assistant Officers Branch Board Chief Area Incharges Managers Executive Committe Director Advisory n Incharges Committe Officer s e e University Of Central Punjab 16 .

Sirajuddin Aziz Director & CEO University Of Central Punjab 17 .BOARD OF DIRECTORS H.E.Khalid Mana Saeed Al Otaiba Director Mr. Abdulla Nasser Hawalileel AlMansoori Director Mr. Ikram Ul-Majeed Sehgal Director Mr. Abdull Khalil Al Mutawa Director Mr. Nadeem Iqbal Sheikh Director Mr. Sheikh Hamdan Bin Mubarak Al Nahayan Chairman Mr.

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 University Of Central Punjab 18 .

CRO department (Customer Relationship Officer) or 2. Following is the detail of activities performed in 1. Remittances and clearing 5. I have worked in five departments. Account Opening Department 3. Operations Department 4. which are CRO department. Sales Department. Trade finance University Of Central Punjab 19 . Most importantly the way all the Managers and employees treated me was appreciable. The experience and knowledge that I got during my 6 weeks work over there is remarkable.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. Operations Department and Clearing & Remittance Department. Main Boulevard Branch during my six weeks training. I felt free to ask all questions in my mind and clear all the ambiguities which I need to understand.

He then stamps “Cash Received” and hand over the customer receipt to the customer. 5.CRO Department CRO department mainly includes the following activities ➢ Reception RECEPTION The first week of internship was in CRO department and on reception. There are two parts if this slip. The amount in words and figures must be same otherwise the bank will not accept the slip. It is very easy to fill it. 2. The customer has to fill pay-n-slip to process this. To give any other information regarding Bank Alfalah Limited 4. Then the amount in words and figures is also written on the slip. 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. First of all the date is written on top right corners. To do the filing of various forms. Then the customer has to select the mode of payment. the duties assigned to me on reception were as follows 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. Fill the cheque deposit slips for the customers: University Of Central Punjab 20 . 1. To give tokens to the customers. One is kept by the customer and one for the bank record. Fill the cash deposit slips for the customers 2. Fill the cheque deposit slips for the customers 3. then one must have the name and account number of the person in which he wants to deposit the amount. At the end the signature and contact number of customer is required.

ABC etc. name and account number is written in the same way. To give any other information regarding Bank Alfalah Limited: It was my duty to help the customers in case of any inquiry. in which the cheque is deducted from the account of the applicant as debit card charges and this card will be received within 10-15 days of application. 200/.Filling of pay in slip of deposit of cheques is very much similar to the pay in slip of the cash. Then put a crossing and a clearing stamp on the cheque. i-e the online cheques are given to the person dealing online. Day’s serial number of cheques starts from one. These cheques are then handed over to the responsible persons. 4. Some other kind of information may include that where is Mr. here the customer has to select the mode of payment as “Cheque”. University Of Central Punjab 21 . The officer signs the slip and gives it to the customer. The date. 3. The only difference is with mode payment. 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. 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. then the cheque number and amount and then the name of bank whose cheque is it is entered in the register. Rs. we write the account number. It is signed by the applicant. These cheques are retained by the officer for entering them into the register. Then we write the amount in words and figures on the slip. 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.

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.

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.


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


• • • • •

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.


The minimum balance requirement for opening the account is Rs.5000. There can be profit or loss on the investment of the Customer’s 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.

• • • • 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.

• • • • 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.

• • • 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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Here a step by step procedure is given for account opening. then he/she has to fill a form according to the account. SPECIMEN SIGNATURE CARD The signatures of the client are obtained on a specimen Signature card. These signatures should be usual signatures and he would operate the account with them future.PROCEDURE TO OPEN AN ACCOUNT Prescribed form is filled and signed by the customer. The signatures of an introducer on the account opening form are must. Then initial deposit is to be deposited in cash. A requisition for the cheque book attached with the form is to be filled and signed by the client. The introduction of saving bank account is accepted only for saving bank accounts. One signature of the person is taken on the face of the form and one is taken on the backside. INTRODUCTION The introduction of a current account holder is accepted for the opening of either a current account or a solving account. and makes a request for opening of an A/C. occupation. The signature of the account-holder introducing the account is obtained at the place provided for in the account opening form. COMPLETION OF THE FORM The name. If he/she wants to open a PLS A/C. Specimen signature card (SS card) is signed by the client and bank keeps it for reference purpose. These cards are obtained in duplicate with two signatures on each University Of Central Punjab 25 . and complete address of the person opening the account are written in the columns are provided in the form. THE ACCOUNT OPENING FORM When a client comes to the bank. The officer says that first fill up a prescribed application form.

the signature on the cheque are verified by comparing them with the S. ACCOUNT NUMBER When all the formalities are completed then the final approval of account has to be taken from the Branch Manager. account in any other bank. residential details. Then that account number is printed on the cheque book. The purpose of KYC form is to know whether account holder really earns much to hold the balance in its account that it contains.S. KYC form: This form is also filled while opening any account. employer or business address etc. profession or business. Accounts of General Customers • • • Minor Account Illiterate Person Account Joint Account Accounts of Special Customers • • • Individual Account Proprietorship Account Partnership Account University Of Central Punjab 26 . Every time a cheque is received for a payment from the client. It contains the information about account holder like.card from the customer. Card. After obtaining approval of the branch manager an account number is allotted to the customer all the information is entered into the computer. The purpose is to avoid opening an account of a person who seems to earn illegally or black money. cards and account opening form. vehicle details. S. S.

or of another or owner.Joint Account These are the account of two or more persons who are neither partners nor trustees.” Account Opening Procedure:University Of Central Punjab 27 . • Account Opening Procedure Title of Account Title of account holder should mention the names of all the joint account holders. 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. Trust Account According to section 3 of Trust Act. 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. under the signature of all the joint account holders. These instructions as far as possible should be obtained in handwriting of the parties concerned. 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.

Account Opening Procedure Title of Account Account must be opened in the name of organization in the following manner e. / non. status of account in case of death of any trustee or signatory. if the account is opened in the name of the trustees. Attested copy of Certificate of Registration. rather it should be treated as a trust account.Branches are allowed to open the Trust Account subject to the prior approval of Area Manager. Clubs. recreational activities and charitable purpose etc. Documents:• • • Attested photocopy of Computerized National Identity Cards (CNIC) of all the trustees. Certified copy of Instrument of Trust / Trust Deed Mode of Signature All the trustee are required to sign the account opening form.g. Title of Account:The account should be opened in the name of the trust. Particular attention should be paid to the borrowing powers. Specimen Signature Card.profit organization and are formed for the promotion of culture. Societies and Associations Account These are non. after scrutiny of the legal documents by the legal advisor. education. Special Instructions:The Banker should examine the trust deed very carefully. and provisions for the appointment of new trustees. the account should not be treated as a joint account. and Cheque book requisition slip in their official capacity. Islamabad Cricket Association University Of Central Punjab 28 .

The A/C holder mentions title of A/C. Operations department ISSUANCE OF CHEQUE BOOK After opening an A/C with the bank. account should be blocked until new resolution is received. the A/C holder once again makes a request in the name of bank for the issuance of a cheque book. Normally BAL issues a cheque book having at least University Of Central Punjab 29 . 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.Operational Instructions • • All the parties must be in accordance with the clauses of the resolution. In case of death of office bearer. Copy of certificate of Registration (if registered) Copies of CNICs of the members of Executive Committee. Documents:• • • • • Copy of bye.laws / regulations. A/C number. sign it properly and mentions the no of leaves he requires. List of members of managing / executive Committee.

every information regarding the account is entered into the computer. ENTRY OF A CHEQUE BOOK Before issuance of a cheque book. FILLING OF ACCOUNT OPENING FORMS For current and saving account. 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. if no then first he gets them verified.  Check whether or not the signatures are verified by a senior officer. the employee performs certain functions. MAINTAINING THE COMPUTER RECORD After opening of account. the employee issues the cheque book to the A/C holder after his/her signature on the register. They include:  Stamping every leaf with specific A/C number. 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. After entry in the manual register. a program named ‘Bank smart’ is being used for this purpose.25 leaves. Every cheque book also contains one leaf that is used for another issue of a cheque book. This is because these forms are the basic documents of the contract with the customer. Record of all the transactions regarding the account of a customer is kept updated in the computer.  partnership deed and/or other business documents University Of Central Punjab 30 . Currently.  Enters it in the cheque book issue register.

Issuing Bank The bank that sends or affects the remittance. He may or may not be the branch’s customer. The bank charges him a commission for this service. Since it is not a free service it is a source of income for the bank. A remittee is also the one who receive the payment. asks for a remittance to be made. and deposits the money to be remitted. or requests for a remittance. Parties involve in remittances Four parties involved in remittance • • • • Remitter Remittee Issuing Bank Paying Bank Remitter One who initiates. The person in whose name the remittance is made. or the payee.   University Of Central Punjab 31 .” A Remittance is an important service provided by banks to customers as well as non-customers. Remittee A Remittee is also called the beneficiary.Remittances “Remittance is transfer of funds from one place to another or from one person to another. or Mail Transfers. The remitter comes to the issuing or originating branch. telegraphic transfers. through demand drafts.

New issuance ii. Call deposit issued register The software Remittance smart is used for local remittances. On account of (the sender of remittance) University Of Central Punjab 32 .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. Demand draft issued register 4. In favour of (the beneficiary) v. Pay order issued register 2. Drawn on (other branch of BAL in case of DD & same branch in case of payment order) iv. Pay slip issued register 3. The procedure to issue a remittance in the software is i. 1-PAYMENT ORDERS Payment Orders are issued for the money transfer with in the city. Demand draft payable register 5. Add iii.

Note: The miscellaneous account should show a zero balance at the end of the day. 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. After that the remittance officer debit miscellaneous and make a credit to pay order. When the customer purchases a draft. b.Date Accounting entry a. Accounting entry by drawing branch (says Gulberg Branch) is made by debiting Client’s Account and crediting Head Office Treasury Account and Commission & Charges. 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 Client’s Account is made. When the customer comes with the original University Of Central Punjab 33 .vi. By depositing cash the cashier debit cash and credit miscellaneous. b. Amount vii. By transfer (from client’s 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. On the arrival of advice the drawee branch debits HO account and credits the DD payable account. 2-DEMAND DRAFTS a.

The regular services providers like security company. his account is credited by debiting the DD payable account.PAY SLIP Pay lip is used to pay the day to day expenditure of the bank on the spot. TELEGRAPHIC TRANSFER When a TT comes to the college road branch along with the advice.” University Of Central Punjab 34 . After that a debit to Pay Slip and credit Cash is made by remittance officer. Accounting entries are made by debiting Expense Account and crediting Withholding Tax & Pay Slip. 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. 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. 3-CALL DEPOSIT Call deposit is a way to pay a liability through a bank. stationery suppliers etc. This is used in order to eliminate the risk in money transfer. 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. the following entry is passed by debiting the HO Treasury Account and crediting the TT Payable account. This is generally used for bids and tenders. 4.DD to the drawee branch.

  Inward Return: • • • Presentation Flaw e. sent by other banks. constitutes the inward clearing of Bank Al-Falah Limited.e. Insufficient Balance Outward Clearing University Of Central Punjab 35 .EXPLANATION By clearing means sometimes the account holder of Bank Al-Falah Limited present a cheques. the concerned drawer’s accounts are debited in BAL Gulberg Branch Lahore. 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. 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. Clearing stamp not affixed or wrong discharge given by collecting banker. Defect in the Cheques i. Post dated cheques. After having all the stamps and dates of cheques confirmed.g. This function is called clearing. has an account in Bank Al-Falah Limited. unauthorized cutting. which is not drawn on Bank Al-Falah but the person.

C (Schedule of charges). Collect the cheques return charges as per S.When cheques and other negotiable instruments drawn upon other banks like City Bank.  Clearing process Stamps Put On the Cheques: University Of Central Punjab 36 . Basically it is the benefit that is provided to customer.O. Return the cheques to the customer after getting sign on the register. • • • Advice the customer about fate. MCB. ABN-AMRO or Askari Bank of the same city (Lahore) are presented in BAL Gulberg Branch to deposit them in the respective payee’s accounts. mentioning the reason as appearing on the cheques return memo received from the paying bank. these instruments are lodged in outward clearing of BAL Gulberg Branch.   Same Day Clearing: The cheques that are presented in same day clearing are the local cheques and these cheques are clear in same day. • Enter the cheques in cheques return register.  Outward Return Cheques return will be treated as inward cheques. In this type of clearing the bank confirm at that time that the cheques are clear or not and give to the rider. Inter City Clearing: The cheques that are presented in intercity clearing are of another city and received by air.

NIFT after segregating the cheques of different banks delivers them to their concerned banks. In clearing. If. with the next date.When the cheques are presented in BAL Gulberg Branch to be deposited in their respective payee’s accounts. the holder cannot receive payment except through the banker named on the cheques crossing saves the instrument to go it in illegal hands. So endorsement stamp has to put with words “Payee’s account Credited in Bank Al-Falah Limited. Lahore”. different stamps are put on cheques before their lodgment in outward clearing. National Institutional Facilitation Authority: After putting these three stamps on cheques & other negotiable instruments. clearing stamp is put on the cheques and other instruments. University Of Central Punjab 37 . drawn across the face of the cheques with or without words written in between them. cheques are crossed specially. so these cheques would have to be presented in their concerned drawee banks on the subsequent day. So it is an effective means of minimizing the risk of loss. Cheques are stamped with bank’s name between two parallel lines to constitute special crossing. Crossing may be general or special. Clearing Stamp: After the cheques have been crossed specially. they are sent to NIFT. Endorsement Stamp: The word endorsement means anything written or printed on the back of an instrument. there is no risk involved. Gulberg Branch. After the cheques have been crossed specially. crossed cheques is lost or stolen. Crossing the cheques: Crossing means two parallel lines.

Credit the Customer Account: If the cheques are clear then the BAL Gulberg Branch Lahore credit the customer Account. Then send the outward and return inward as IBDA (Inter Branch Debit Advise) to Main Branch LDA Plaza. Officer Cash Department returns the same cheque by attaching a cheque return memo containing reason for return. verification of signatures and confirmation of balance in the account. these cheques are delivered to the respective banks between 9:00 to 9:30AM. 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. And LDA Plaza sends outward return and inward to BAL Gulberg Branch. Lahore. then the bank’s staff tally the amount of that report for its own record. After proper scrutiny of cheques. If any cheque is not passed due to insufficient balance or any other reason. the Officer Clearing Department Debit the customer Account. In the same manner. 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. other banks present their clearing drawn on Bank Al-Falah. Delivered Cheques to Respective Banks: Next morning.SEND Report To The Bank: After delivering the cheques to different banks NIFT send report to BAL Urdu Bazaar Branch Lahore. Procedure of settlement University Of Central Punjab 38 .

75. Rs.000/-.Rs.000/-. It means that this amount is to be credited to BAL account with NIFT.000/.95. its total being Rs.000/-.000/.000/-.respectively.30.000/. Rs. its total being Rs. On the other hand the cheques drawn on BAL are from HBL. Trade Finance Department handles two activities:• • Import Export Import “The bringing of commodities into Pakistan from outside by sea. This department provides protection to the rights of importer and exporter.95.25.000/. The function of this department is to serve as a bridge between the importer and exporter in order to settle a transaction. NBP.25.respectively.120.30.000/.000/-. and Rs. The difference between Rs. NBP and MCB of Rs.50. and MCB for amount Rs.” Requirement for the Importer:- University Of Central Punjab 39 . which means the house is against BAL for Rs.120.debit.Assume that BAL got the cheques which are drawn on HBL.000/.15. land or and Rs. Trade finance departments Trade Finance involves the import and export activities.15. It means that this amount is to be debited from BAL account . 000/-.debit is Rs.

Exports University Of Central Punjab 40 .”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. It gives surety to the Exporter that his amount is safe. “The letter of credit is a written instrument issued by the buyer’s bank authorizing the seller to draw in accordance with certain terms and conditions.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.

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. 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. Letter of credit: It is written agreement between importer and exporter.Exports are major sources of earning foreign exchange and play an important role in the economic development of the country. “Exports mean selling goods to another country. financial position of the exporter is first of all checked. It helps to utilize excess resources of the country. which are necessary for exports. University Of Central Punjab • • • • • • • • 41 . In this form.” Exports of all eligible commodities through authorized banking channels are admissible under exchange control regulation. reputation. all the conditions are given.

• • • • • • • • • • University Of Central Punjab 42 . 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.• • 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. Verification of E-Form Export Documents Scrutiny Of The Documents Dispatch Realization of Export Proceeds.

Ratio means one number expressed in term of another. I am going to undertake following analyses making use of BAL’s balance sheet and income statement Ratio Analysis RATIO ANALYSIS Financial ratios are used to weigh and evaluate the operating performance of the firm. The term accounting ratio is used to describe significant relationship between figures shown on a balance sheet. To evaluate BAL’s financial condition and performance. profit and loss account or in any other part of accounting organization. A ratio is a statistical yardstick by means of which relationship between two or various figures can be compared or measured. Accounting ratio thus shows the relationship between the accounting data. To evaluate the financial condition and performance of a firm. 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 understand BAL’s banks financial position the following ratios analysis are considered to be analyzed: University Of Central Punjab 43 . the financial analyst needs certain yardsticks. financial and market position of Bank Alfalah Limited:   Financial Analysis Swot Analysis FINANCIAL ANALYSIS Financial analysis.ANALYSIS Following analyses have been considered important to undertake to determine the capabilities. as the name implies.

“Profitability reflects not only the quantity and trend in earning but also the factors that may affect the sustainability or quality of earnings. Administrative Expense Ratio 5. Operating Expense Ratio 4.PROFITABILITY RATIOS: The continued viability of any bank depends on its ability to earn an appropriate return on its assets and capital. NET PROFIT RATIO Net Profit after Tax X 100 Net mark-up/interest income after provisions University Of Central Punjab 44 . Return on Assets 7. Non interest expenses to total assets 1. Net Interest income to Gross income Ratio 3. Good earnings performance enables a bank to fund its operations.” Following profitability ratios have been calculated 1. Net Profit Margin 2. remain competitive in the market and increase or decrease in market funds. Non interest income to total assets 9. Total Asset Turn over 6. Return on equity 8.

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 = 70.52% in 2006 to 46. 2.13% in 2007.4% University Of Central Punjab 45 .2006 1762694 / 5259357 x 100 2007 3130229 / 6786197 x 100 = 33.13% The above ratio indicates that the proposition of profit has been increase from 33.2% = 71.52% = 46.

6% In 2007 BAL has cut down its operating cost expenses from 69.6%. So in such scenario bank is able to succeed if it lowers its interest expenses greater than decrease in interest income. 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. Slowing interest rates have two sided effects: lowering incomes & lowering interest expenses.75% to 64. ADMINISTRATIVE EXPENSES TO TOTAL DEPOSIT RATIO X 100 Administrative expenses University Of Central Punjab 46 .75% = 64. Bank can managed it by reducing borrowing from financial institutions which is more costly than deposits.This ratio has increased. 4. It means share of interest income is increasing.

03% BAL has shown mixed capacity to absorb administrative expenses.03% due to expanded branch network.69% = 7.45% = 3.84% University Of Central Punjab 47 . In 2007. 5.Total deposit 2006 5874745/ 239509391 x 100 2007 8272587/ 273173841 x 100 = 2. TOTAL ASSET TURN OVER Interest/mark-up/ return earned x 100 Total Assets 2006 21191470/ 275685541 x 100 2007 25783871 / 328895152 x 100 = 7. administrative expenses have increased to 3.

95% ROA is the most comprehensive measure of bank’s earning capacity. An increasing trend of this ratio signifies increased efficiency of management of a bank to improve upon its earnings capacity.64% =0 .It is increasing. 6. Higher it is better it is. It means bank is able to utilize its assets efficiently in generating its mainstream income. That’s why it is most widely used indicator for representing the earnings of bank over time period. Net profit margin ignores ‘efficiency concept’ while total asset turn over ignores earning perspectives. RETURN ON ASSETS Net profit after tax X 100 Total assets 2006 1762691/ 275685541 x 100 2007 3130229 / 328895152 x 100 =0 . which is favorable. University Of Central Punjab 48 . ROA takes both perspectives into account.

RETURN ON EQUITY Net profit after tax X 100 Capital fund 2006 2007 3130229 / 16219844 x 100 1762691/ 12241945 x 100 =14.7.29% BAL Has shown mixed trend in ROE. In 2007.39% =19. the rate of change in net profit after tax is more than capital fund. NON-INTEREST INCOME TO TOTAL ASSETS x 100 Non-interest income Total assets University Of Central Punjab 49 . 8.

9.52% University Of Central Punjab 50 .17% =1.2006 3224639/ 275685541 x 100 2007 6038466 / 328895152 x 100 =1.83% This ratio has increased in 2007. It shows that bank has turned to noninterest income to sustain its earnings and vice versa. 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.

Non-interest expenses represent operating expenses such as administrative expenses. opportunities and threats of BAL: University Of Central Punjab 51 . weaknesses. Following figure illustrates the strengths. 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. It provides a simple method of synthesizing the results of the marketing audit by summarizing the company’s strengths and weaknesses as they relate to external opportunities and threats. weaknesses. 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. Opportunities and threats will derive from the external marketing audit analysis. staff salaries and other charges plus extra ordinary and unusual items if they represent expense. opportunities and threats. Strengths and weaknesses will derive from the internal marketing audit analysis..

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 University Of Central Punjab 52 .

Personnel of Alfalah are well trained and highly skilled. in Wah Cantt Branch. However. Especially. I observed that they University Of Central Punjab 53 . catering the financial needs of its clients.  Bank Alfalah has a wide network of branches at the ideal locations.STRENGTHS Bank Alfalah is considered to be a very sound bank in the financial circles. Vastly Experienced Management. 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. Commitment of Sponsors. Foreign Trade is the focus of bank. It has become an ideal bank for the importers and exporters. they have added some local flavour in accordance with their targeted segmented. BAL strengths can be categorized as:          Bank is financially strong and has a huge deposit reserve. Highly Professional Human Resource Department. Crucial Location Of Branches. Efficiency. It’s a bank where the customers can safely keep their money as long as they want. Majority of employees has many years of experience in banking sector and are an asset for the bank. Humble Management.

the bank has increased the branch network from 3 to 23. The expansion program is strategically important to increase customer base and to approach different customer segments. the clients’ perception for BAL is very high. 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. due to the growing business requirements. commercial and electronic banking. THE COMPUTERIZED SYSTEM University Of Central Punjab 54 . it attaches great significance to the development and maintenance of healthy correspondent relationships with other banks and financial institutions. WIDE BRANCH NETWORK Bank Alfalah’s 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. Towards this pursuit. BAL has developed excellent business relations with foreign banks. corporate. 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. whose support in terms of lines of credit extended to the bank. And. FOREIGN TRADE BUSINESS The bank is focusing on Trade Financing. there are 10 proposed branches in different cities. GOODWILL & TRUST As a result of the compassionate and personalized services of the officers.interact with their clients as if they are their personal friends and discuss about their problems as their own. They have trust and feel themselves to be secure while banking with BAL.

There is uneven distribution of work and promotions are not very timely. WEAKNESSES: Perfection is only the claim of Allah Almighty.BAL has got a reliable and easy to use internal computer system. University Of Central Punjab 55 . so keeping in view these threats. ADVERTISEMENT BAL has formulized a lot of products and services for its customers. Bank Alfalah should emphasize more on its advertisement. Most of the employees are overloaded with work. Currently. BAL’s major competitor Union Bank Limited has started large media campaign. No Advertising in Electronic Media. Every information regarding the transactions in customers’ deposits has been computerized. but any advertisement on electronic media has not been seen. Since. Bank Alfalah also has some shortcomings that need to be mentioned:       Bank Alfalah Limited Does Not Possess Foreign Network. Foreign Banks Still Are A Little More Prestigious. Similarly. The main weaknesses are discussed. Bank smart is being practiced for this purpose. No other being living or dead can say this for itself. even more than other commercial banks. Disproportionate Presence Of Old Staff In The Upper Management Hierarchy.

which is a very University Of Central Punjab 56 . EXTENSION OF BRANCH NETWORK Bank Alfalah’s growing business requires an extensive branch network. There are great opportunities for BAL for the expansion of its business in Wah Cantt. Therefore BAL should emphasize much on IT. Marketing. There are many opportunities for the bank and by availing that it can stand amongst the top foreign banks. Information technology is the future. OPPORTUNITIES: Bank Alfalah has grown up its business with a very high pace and it has got tremendous popularity. BAL’s deposits have been increasing @ 30%. Capitalizing on information technology. So I think that the work should be distributed according to their post and capabilities. During the last three years. Unexplored market of multinational corporations. even with in a very short span of time. especially the E Banking. to enhance online facilities.      Extension of local branch network. These accounts have their unique features (discussed earlier).PROBLEMS OF EMPLOYEES I observed during my internship that some of the employees were burdened with over work. GROWTH IN DEPOSITS BAL has introduced a number of financial schemes including special royal accounts. Bank can design a universal account like other foreign banks. INFORMATION TECHNOLOGY All the opportunities of the 21st century are to be availed in the information technology. Establishing foreign branch network.

Inconsistency in government policies. But. Following are main threats to the bank      Network expansion by foreign banks. Askari etc. 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. are also giving though competition to foreign banks with similar products and services on low charges. MERGERS AND ACQUISITIONS University Of Central Punjab 57 .g. MARKETING More market share and customers can be gained by effective marketing strategies. THREATS: . Therefore. Business of these banks is also growing with very high pace. the facts can’t be denied and there might be an adverse impact of such situation. with the commencement of new schemes there can even be a greater increase in its deposits. New Entrants.healthy sign. Union Bank and Askari Commercial Bank. Bank Alfalah has been still highly profitable. Terrorist image of the country. Mergers and Acquisition. ECONOMIC CONDITIONS Despite the difficult circumstances that confronted the banking sector in particular and the country in general. COMPETITORS Bank Alfalah is facing a strong competition by its major competitors.

  In order to improve the image of bank and create public awareness. bank should establish separate Marketing department. interacting with the employees. RECOMMENDATIONS After spending six weeks at different departments of the Bank Alfalah.The rapid growth and intensive competition in the Pakistani economy. NIB with PICIC) to remain in the competition and to gain larger market share. will definitely improve a few weaknesses observed in the bank by me. Account opening form should contain an option of transformation of funds/ deposit after the death of account holder to his family or University Of Central Punjab 58 . many banks are going into M & A (Standard with Union. getting their views. I have come up with the following suggestions that in my view. observing the organizational structure and design.

A plan should be developed to employ professionally qualified new blood.nominee to avoid the interference and lengthy procedure of taking permission (for the transformation of funds) from the court.  Bank Alfalah Limited should embark upon an even more aggressive management strategy of expansion of branch network not only in the local market (Pakistan).  One of the most pressing needs of the time is to advertise Bank Alfalah Limited in the electronic media.  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. I think it is high time that BAL does this. In the near future the management of Bank University Of Central Punjab 59 . relating to finance and marketing.  The rates for the various charges provided by the bank should be brought down a bit. like most of the commercial banks working in Pakistan. would not only prove to be highly profit generating. Bank Alfalah Limited has making very little. their recruitment should be strictly on the basis of merit and induction should be confirmed after proper training. as it would result in increase in the number of customers of the bank. This action. but also in foreign markets because that is a huge untapped opportunity for Bank Alfalah Limited.   The management should work free from political pressure. if actualized. employed advertisement in electronic media as a full fledge marketing tool.  Bank Alfalah Limited should evolve a very serious management policy to attract multinational corporations as its clients. a high percentage of Bank Alfalah’s credit client hail from two or three industrial sectors.  Presently. but it would also contribute a lot towards Bank Alfalah Limited image building. Some of the employees are overburdened while some sections are overstaffed.  Management should distribute work equally among different employees.

CONCLUSION To conclude. 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.Alfalah Limited should try its level best to diversify as regards the mix of its advances. which is growing at a rapid pace. gratuity funds. increments and other University Of Central Punjab 60 . Banks takes care of its customers as well as it employees by giving benefits like bonus. Bank has a good working environment and employees possess a cooperative sense. Bank Alfalah is an established bank. loans.

they always come up with new ideas to bring change. 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 Pakistan’s economy. All the working is based on networking through information technology which makes the work more efficient and in wellorganized manners. AZEEM KHAN_ MANAGER OPERATIONS OF BANK ALFALAH University Of Central Punjab 61 . despite the fact that they had to follow a very tight schedule. All the employees were extremely helpful. which. REFERENCES The entire information of this report has been collected from following sources: ➢ MR. Bank Alfalah is a flourishing bank and I find myself very honored to work in such organization. especially the Operations officer who really has an outstanding motivational and communicational skill. friendly environment. I observed during my internship. Still they guided me as much as they could.entertainment facilities. The good thing about the bank is that it introduces innovative products time to time to boost the customer’s value. In short. Bank also has a diversified investment in telecommunication sector that is Warid Telecommunication. The best thing. was that the bank had a good. which will help me in my future. Employees are very competitive and have an ability to lead. continuous improvement and for organizational development. There is dual check and balance by the officers on each transaction. In this regard I would like to mention the behavior of employees with internees.


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