SWOT Analysis of Deposits:

Strengths
1) Financing facility up to 90% of the deposited amount
2) Customers Invest with a minimum deposit of Rs !0"000 for1 year term deposit #
Rs 100"000 for $ years term deposit
$) %rofit paid every month
&) 'ttractive rate of (!%) on 1 year term deposit # 9%) on $ year term deposit
!) electronic transfers to move money in and out of the account
*) provide a very safe investment and guaranteed returns
+) provides Customers to deposit cash in customer,s account
() -he cash department is given special importance as they have li.uidity at all times
9) /eposits structured for savings products" choose the option that 0est suits customers
needs and start en1oying their daily 0an2ing services through vast 0ranch networ2
and self service 0an2ing solutions
Weakness
1) 3i.uidity Ris2of security4asset cannot 0e traded in a .uic2 time frame in the mar2et
2) some of the funds that deposit into deposit account are not immediately availa0le
$) %enalty on deposits that are withdraw prior to the maturity date
&) 0an2s in particular offer lower rates of return on fi5ed deposits If interest rates go
up" you may 0e loc2ed in at a lower rate -he funds are not at call" they are loc2ed
into a contract for a certain term agreed 0y you and the 0an2
!) Interest penalties will apply in emergency availa0ility of deposits
*) /eduction of 6a2at and withholding -a5 7 10%
+) 0an2s charge monthly service fees that you incur if your account 0alance falls 0elow
a certain level
Opportunity
1) Customers can earn high rate of returns on your fi5ed deposits with the 0enefit of
monthly profits 0y 'lfalah 8ahana 'mdan
2) 9ith a demand customers can withdraw all availa0le funds at any time
$) :an2 alfalah has numerous opportunities in future to increase the volume of 0usiness
&) -he money is not safe in corporate fi5ed deposits which earn a higher interest rate as
it would 0e in a 0an2
!) :an2 'l;Falah 3imited also issues Call /eposit Receipts <C/R) It is an instrument
li2e Che.ue issued 0y the 0an2 on account of a customer # in favor of a person" to
pay the specified amount
*) -he 0an2 en1oys the 0enefit of 2eeping funds deposited until the payment is not
made
+) Customers do not have to carry cash when they have a demand deposit account
0ecause they use electronic transfers to move money in and out of the account
Threats
1) if 0an2 fall 0ehind on deposits then depositor can go to court and as2 a 1udge to
recover deposits
2) some 0an2s do offer a floating rate option
$) %olitical situation in %a2istan is not good Investors and 0usinessmen are shifting
their assets outside %a2istan 8ost important of all is that the policies of %a2istani
=overnment are not consistent
&) -he privati>ation of other 0an2s is thread fo 0an2 alfalah
!) Reputation Ris2 of the 0an2 loosing its repute among the customers
*) systematic ris2 of 0an2 deposits is often 0eyond the control due to the
macroeconomic factors
+) Credit Ris2 for the 0an2 as he fails to repay the money to the depositors
() 'll the 0an2s are providing deposits facility so the competition is high