INTERNSHIP REPORT

ON

AL-BARAKA ISLAMIC BANK

Page

1 of 69

AL BARKAH BANK PAKISTAN LTD

PRESENTED TO :
Sir faisal ioqbal
Co ordinator internship vivas
M.BA Evening

Session 2012-2015

UNIVERSITY OF THE GUJRAT

GUJRANWALA CAMPUS

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2 of 69

Executive summary
Since it is required by the students of mba to commence a report on
manufacturing or service organization as Internships provide an opportunity
to link theory with practice in order to cope the gap between theoretical
study and actual practices for better understanding that how it is performed
in actual. To fulfill this mandatory requirement I was assigned by my MENTOR
to do a six week internship. The key purpose of this report is to critically
scrutinize and realize banking operations and propose measures in the form
of solid and weighted recommendations for their more perfection. I decided
to do a complete analysis of bank with respect to technology it has, its
prevailing culture and also its financial analysis. And then give concrete
recommendations and suggestions.
To achieve my mission stated above the first step was to choose the
organization so I got the opportunity to do internship inAl Baraka Bank
(Pakistan) Limited (ABPL) a pioneer in Islamic banking my key
purpose was to study how Conventional banking is different from Islamic
banking I realized main difference is on the part of operations and use of
funds.
I joined a 6 week internship for a practical exposure of banking world I work
from 9.00 to 3.00 pm Daily I have one day off in every week. I find Al-baraka
is performing its banking business in line with the set of laws of SBP. As the
Al-baraka Gujranwala is a foreign subsidiary so its main products are the
similar as being offered at head office . The vision and mission of Al baraka
are also stated in report along with the complete detail of hierarchy of bank.
Then the work done by me during the internship is also discussed and the
ratio analysis years 2009-2010. Then I have done the SOC analysis on the
report to know about the strengths, opportunities and challenges which are
being faced by the bank and they will have to face in the near future, by
doing the SOC analysis I give conclusion on the bank performance and some

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recommendations. I have used my maximum efforts to achieve my mission

stated above. I am sure that my effort would b fruitful for users. In this short
span of time I feel the environment of al-baraka is quite friendly because I
did not feel any professional jealously, leg pulling and any other such thing

HISTORY OF (AIB - BAHRAIN)

Al Baraka Islamic Bank Bahrain (AIB - Bahrain) established 1984 in Bahrain
and up the years has pioneered the development of Islamic banking and
finance. The Bank is registered with the Bahrain Ministry of Industry
&, Commerce CR no. 14400 and is authorized by Central Bank of Bahrain
(CBB) as Retail Bank, with an authorized capital of US$ 600 Million, of
which US$ 122 Million has been issued and fully paid.
AIB - Bahrain is one of the Banking Units of Al Baraka Banking Groups (ABG).
ABG is a Bahraini Joint Stock Company listed on Bahrain and Dubai stock
exchanges and one of the well-known leading international Islamic banks.
It has been rated by Standard & Poor's as BBB- with a short-term
rating of A-3. ABG offers retail, corporate and investment banking and
treasury services strictly in accordance with the principles of the Sharia'a.
The authorized capital of ABG is US$1.5 billion, while the total equity
amounts to about US$ 1.5 billion. The Group has a wide geographical
presence in the form of subsidiary banking Units in 12 countries, which in
turn provide their services through more than 240 branches. These banking
Units are Jordan Islamic Bank/ Jordan, Al Baraka Islamic Bank Bahrain, Al
Baraka Islamic Bank/ Pakistan, Banque Al Baraka D'Algerie/ Algeria, Al Baraka
Bank Sudan/Sudan, Al Baraka Bank Ltd/ South Africa, Al Baraka Bank
Lebanon/Lebanon, Bank Et-Tamweel Al- Tunisi Al Saudi/ Tunisia, The Egyptian
Saudi Finance Bank/Egypt, Al Baraka Turk Participation Bank/Turkey, Al

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Baraka Bank Syria (under establishment), and Representative office,

Indonesia.
AIB - Bahrain with a longstanding track record of delivering excellence,
innovation and superior results, the Bank ranks among the leading providers
of Islamic investment banking products and services to a growing global
clientele, focused exclusively on the development and delivery of unique
investment solutions of Sharia'a compliant. Thanks to its ability to
consistently deliver innovative, yet simple investment strategies grounded in
the breadth and depth of its experience and resources, including a senior
management team with a collective background in numerous areas of
Islamic banking. The Bank recently has fully merged with Al Amin Bank,
Bahrain (Al Amin), and a sister company and member of ABG. Al Amin will
continue serving its unique short term assets back securities "Isdaraat Al
Amin" within the merged entity. Al Amin has to date managed over US$ 4
billion in funds on behalf of leading financial institutions and high net-worth
customers seeking unmatched short term investment solutions that rend
long-term financial benefits.
AIB - Bahrain supported by the long tradition of strength and robust financial
position of its parent company ABG, count on quality of investments,
strength of performance and a sound financial position, the Bank have
enjoyed a commendable market reputation as the leading short-term
liquidity manager for institutional investors. The resources and capabilities
available to the Bank guarantee its success in executing its firm strategies.
BOARD OF DIRECTORS:
Shaikh Saleh Abdullah Kamel (Chairman):
Shaikh Saleh, Saudi Arabian national, is a well-known and highly respected
international businessman from Saudi Arabia. Shaikh Saleh Abdullah Kamel
holds a Bachelor of Commerce degree. He is the founder and President of

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Dallah Al Baraka Group and the founder of the Al Baraka Banking Group. He
serves as a director on the boards of a number of organisations and
associations across the world. Currently he is Chairman of the following
organisations: General Council for Islamic Banks and Financial Institutions;
Jeddah Chamber of Commerce & Industry; Council of Saudi Chambers;
Federation of GCC Chambers and the Islamic Chamber of Commerce and
Industry. As a renowned pioneer of Islamic banking and in recognition of his
achievements and his role in promulgating Islamic economic principles
encapsulated in the message of his group: Reconstruction of the Earth Shaikh Saleh Kamel has been awarded the highest of certificates, trophies,
and accolades by many countries and organisations over his lifetime.
Mr. Abdulla A. Saudi (Vice Chairman) :
Mr. Saudi, Libyan national, is a world-renowned and respected international
Banker. He holds a Certificate in Management and Accounting. He worked at
the Central Bank of Libya for 14 years, holding various positions including
that of Manager of the Banking Department and Head of the Foreign
Investment Department. He was the founder of Libyan Arab Foreign Bank,
where he served as Executive Chairman between 1972 and 1980,
establishing branches of the Bank worldwide. He was the founder of Arab
Banking Corporation (B.S.C.), Bahrain and served as its President & Chief
Executive from 1980 to 1994. He also founded Arab Financial Services (E.C.),
Bahrain in 1982. In addition to being voted one of the Most Innovative
Bankers

by

the

representatives

of

governments

and

international

commercial bankers attending the International Monetary Fund and World

Bank meetings in 1980, Mr. Saudi has won many international accolades,
including an award at Georgetown University and the award Best
Banker from the Association of Arab American Banks in New York in 1991.
He was the first to receive the Arab Banker of the Year award, in 1993,
from the Union of Arab Banks. In recognition of his role in the development of
banking relationships between Arab and European states, Mr. Saudi has

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received, over his career, several gold medals and awards, notable amongst
which are those awarded in 1977 by the King of Spain and the President of
Italy and that given to him by the President of Tunis in 1996. He is currently
the Executive Chairman of ASA Consultants W.L.L., Bahrain
Mr. Abdullah Saleh Kamel (Vice Chairman):
Mr. Abdulla, Saudi Arabian national, is a respected Saudi businessman,
educated in Economic Studies at the University of California, USA. Mr. Abdulla
Kamel has held a number of executive positions over the years at Dallah
Group. He headed the real estate and property management and central
logistics division during the period 1988-1989, was Presidents Assistant
for Trade Affairs 1989-1995 and held senior positions at Dallah Al Baraka
Holding Company over the period 1995-1999. Mr. Abdulla Kamel is currently
the Chairman of Aseer Company, Amlak Real Estate Development and
Finance, Al Tawfeek Financial Group, Al Tawfeek Company for Investment
Funds and Vice-Chairman of Bank Al-Jazira in Saudi Arabia and King Abdullah
Economic City. He is also a Member of the Boards of Saudi Research &
Marketing Group and Okaz Corporation for Journalism and Publishing. Mr.
Abdulla Kamel has been and remains very active in public activities through
his

membership

in

many

international

and

local

organizations

and

associations, such as Jeddah Chamber of Commerce (of which he is a past

Member), Young Presidents Organization, Friends of Saudi Arabia, The
Centennial Fund and the Board of Trustees of the Prince of Wales Business
Leaders Forum. Currently he is the Chief Executive Officer of Dallah Al Baraka
Group a position that he has held since 1999.

Mr. Saleh Al Yousef (Member):

Mr. Al Yousef, Kuwaiti national, holds a Bachelors Degree in Commerce
from Kuwait University. Mr. Al Yousef is a Kuwaiti businessman with extensive

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experience in the Banking industry. He served as Chairman and Managing

Director of The Industrial Bank of Kuwait K.S.C. from 1988 to 2005. Prior to
that, Mr. Al Yousef held a number of executive positions with The Industrial
Bank of Kuwait and the Central Bank of Kuwait. He has been Chairman of
ABC Islamic Bank (E.C.), Bahrain and Chairman of ABCs consultants
council, Frankfurt. He served as a Director of the Financial Securities Group
during 1986. He has also served on the boards of a large number of other
financial institutions, including Gulf Bank K.S.C., Kuwait, Arab Banking
Corporation (B.S.C.), Bahrain and Ahli United Bank B.S.C., London. He was
Chairman and Managing Director of Afkar Holding Co. until September 2010
and a Director of Gulf Investment Corporation until April 2010. He currently
serves as a Commissioner with the Kuwaiti Capital Markets authority.
Mr. Adnan Ahmed Yousif (Board Member and President & Chief
Executive):
Mr.

Yousif,

Bahraini

national,

holds

Master

Degree

in

Business

Administration, University of Hull, UK. Mr. Yousif has been a Director of Al

Baraka Banking Group since its inception and President & Chief Executive
since August 2004. He is also Chairman of Jordan Islamic Bank, Banque Al
Baraka DAlg rie, Al Baraka Turk Participation Bank, Al Baraka Bank
Ltd., South Africa, Al Baraka Bank Egypt, Al Baraka Bank, Lebanon, Al Baraka
Bank Syria and Al Baraka Bank (Pakistan) Ltd., whilst holding directorships in
Al Baraka Bank Sudan, Al Baraka Islamic Bank, Bahrain and Al Baraka Bank
Tunisia. He has over 34 years international banking experience and has
twice been the recipient of the Islamic Banker of the Year Award at the
World Islamic Banking Conference, in December 2004 and December 2009.
He was appointed Chairman of the Union of Arab Banks in May 2007 and has
been re-elected for a further four year term in May 2010.
Dr. Anwar Ibrahim (Member):

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Dr. Ibrahim, Malaysian national,is a well-known and respected international

figure. He resides in Malaysia, where he is a Member of Parliament. He has
served his country in many ministerial capacities including those of
Education Minister, Finance Minister and deputy Prime Minister of Malaysia.
He was formerly a visiting professor at Georgetown University in Washington
D.C. and was appointed Honorary President of the London based organization
Accountabiltiy (Institute of Social and Ethical Accountability). Dr. Ibrahim has
been an independent nonexecutive director of Al Baraka Banking Group since
March 2006.
Mr. Abdul Elah Sabbahi (Member):
Mr. Sabbahi, Saudi Arabian national, holds a Bachelor of Science degree in
Accounting from the Faculty of Economics & Administration, King Abdul-Aziz
University, Saudi Arabia. Mr. Sabbahi has had over 30 years experience
in international banking, the last 20 of which with the Dallah Al Baraka Group
in Saudi Arabia. He is currently Vice President, Dallah Al Baraka Group. He
also holds positions as Chairman of Al Baraka Bank Tunisia, Arab Leasing
International Finance, Saudi Arabia, La Soci t de Promotion du Lac de
Tunis, and BEST Lease, Tunis. Mr. Sabbahi is also a Member of the Boards of
Dallah Al Baraka Holding Co. E.C., Bahrain; Algerian Saudi Leasing Ltd.; Al
Amin Investment Co., Jordan; United Albanian Bank, Albania and a number of
ther international companies
Mr. Ibrahim Fayez Al Shamsi (Member):
Mr. Al Shamsi, U.A.E. national, holds a Bachelor Degree in Commerce. He
brings with him over 37 years varied experience in the financial services
industry and in service of the U.A.E. Government. He is currently Chief
Executive Officer of Emirates Islamic Bank and has been a Director of Arab
Fund for Economic & Social Development, Kuwait since 1983. Mr. Al Shamsi
has been a Director of Al Baraka Banking Group since August 2006.

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9 of 69

Mr. Jamal bin Ghalaita (Member):

Mr. Ghalaita, U.A.E. national, holds a Bachelor of Science and Business
Administration degree from the University of Arizona, USA. He is a Banker
whose career spans over 20 years with Emirates Bank, during which he
established a string of specialisations in Corporate banking, Retail banking,
Trade Finance, Human Resources, Private Banking, Asset Management and
Consumer Finance. He is currently Chairman of Emirates Money and a
director of Emirates Islamic Bank, in addition to being Group Deputy CEO and
General Manager Consumer Banking and Wealth Management at
Emirates NBD.
Mr. Yousif Ali Fadil Bin Fadil (Member):
Mr. Fadil, U.A.E. national, is a Banker with a Bachelors Degree in
Mathematics & Computer Science from Gonzaga University, Spokane,
Washington State, USA. During the period 1985 1998, Mr. bin Fadil held a
number of senior positions in the National Bank of Umm Al Quwain. He then
served Dubai Islamic Bank as Executive Manager for Investment over the
period 2000-2002. In 2003 he was appointed General Manager of the
Emirates Financial Company. During the period 2004-2006 he served Abu
Dhabi Islamic Bank as Deputy Chief Executive Officer. Mr. bin Fadil has also
served as member of the board of directors of several financial institutions
including, amongst others, Union Insurance Company, U.A.E., Bahrain Islamic
Bank and Bosnia International Bank. Currently he is the General Manager of
Al Sahil Equity Center.
Mr. Samer Mohammed Farhoud (Member):
Mr. Farhoud, Saudi Arabian national, holds a Bachelor of Computer Science
and Engineering Degree from the University of Petroleum and Minerals,
Dhahran, Saudi Arabia. Eng. Farhoud has had over 24 years experience

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10 of 69

in banking and has held a number of senior positions in his career, including
that of Deputy Treasurer at Al Rajhi Bank in Riyadh for two years to
December 2007 and Chief Executive Officer of Fahad Abdulla Al Rajhi Holding
Co., Riyadh between January 2007 and August 2010. Prior to that he held
various positions including Head of Treasury Sales and Marketing Unit in Arab
National Bank, Riyadh; Manager of Treasury Sales & Services Unit in United
Saudi Bank in Riyadh; Senior Corporate Relationship Manager in Saudi
American Bank, Riyadh; Senior Dealer in Saudi American Bank in Riyadh and
Computer Engineer for SAMBA Data Center in Saudi American Bank. He is
currently Chief Executive Officer of Deutsche Gulf Finance.

Dr. Bassem Ibrahim Awadallah (Member):

Dr. Awadallah, Jordanian national, holds Ph.D. and M.Sc. degrees in
Economics from the London School of Economics and Political Science in the
United Kingdom (1985 and 1988) and a Bachelor of Science in Foreign
Service degree from Georgetown University in the United States of America
(1984). Dr. Awadallah worked in the investment banking field in the United
Kingdom from 1986 to 1991. He then held a succession of positions in
Jordan: as Economic Secretary to the Prime Minister of Jordan (1992-1996);
Economic Advisor to the Prime Minister of Jordan(1996-1999); Director of the
Economic Department at the Royal Hashemite Court (1999- 2001); Minister
of Planning and International Cooperation of Jordan (October 2001-February
2005); Minister of Finance of Jordan (April 2005-June 2005); Director of the
Office of His Majesty King Abdullah II of Jordan (April 2006-November 2007)
and as Chief of the Royal Hashemite Court, Jordan (November 2007September 2008). Dr. Awadallah was chosen as a Lee Kuan Yew Fellow and a
Young Global Leader, by the World Economic Forum in 2005 and is the

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recipient of the Al Hussein Medal for Distinguished Service, the Al Kawkab

Decoration of the First Order of the Hashemite Kingdom of Jordan and the Al
Istiqlal Decoration of the First Order of the Hashemite Kingdom of Jordan. In
addition he has been awarded a number of high decorations from several
countries in Europe and Asia. Dr. Awadallah is currently the Chief Executive
Officer of Tomoh Advisory, a financial and strategic advisory practice based
in Dubai, UAE.
Mr. Mohyedin Saleh Kamel (Member):
Mr. Mohyedin, Saudi Arabian national, studied economics at the University of
San Francisco, USA. He is a prominent Saudi businessman with many
years experience, currently serving as Deputy Chief Executive Officer of
Dallah Al Baraka Holding Company and Deputy Chief Executive Officer for
Projects at Arab Media Company (AMC). Mr. Mohyedin Kamel also serves on
the boards of many other companies and institutions, including the following:
Chairman of the Board of Directors of Al Rabie Saudi Foods Co. Ltd. and of
Dallah Media Production Company; Managing Director of Sports Events
International Company and member of the Board of Directors of: Dallah Real
Estate Consulting Company Egypt; Almaza Real Estate Development
Company Egypt; Arab Company for Real Estate and Tourism Investment

PACRA ASSIGNS RATINGS TO AL BARAKA BANK (PAKISTAN)

LIMITED
The Pakistan Credit Rating Agency (PACRA) has assigned the long-term and
short-term entity
ratings of A (Single A) and A2 (A Two) respectively to Al Baraka Bank
(Pakistan) Limited
(Al Baraka Bank). These ratings denote a low expectation of credit risk
emanating

from

strong

capacity

for

timely

payment

of

financial

commitment. The ratings reflect Al Baraka Bank's association with a strong

Page

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sponsoring group Al Baraka Banking Group (ABG). It incorporates the

impact of positive synergies emanating from the recent merger in terms of
common operating platform, improved profile, and extended market
outreach.

While

progressing

towards

the

integration

process,

the

management is well geared to benefit from the expanded franchise through

developing a sound business plan. However, the management's ability in
developing

profitable

business

stream

in

the

mediumterm

while

successfully restraining the high cost structure remains to be seen. The

efficacy of the risk management framework aimed at improving the overall
asset quality of the bank also remains important.
About the bank: Al Baraka Bank (Pakistan) Limited (formerly Emirates
Global Islamic Bank Limited) commencing its operations in February 2007,
operates with a network of 89 branches. Al Baraka Bank is currently 49.6%
owned by ABG through its subsidiary Al Baraka Islamic Bank B.S.C. Bahrain
(ABIB). The remaining shareholding is mainly held by Emirates Investment
Group (EIG), UAE and Al Rajhi family, Saudi Arabia. ABIB is in the process of
increasing its stake in Al Baraka Bank by end-Dec10. Subsequently, a right
issue of PKR 800mln will be done within 1QCY2011 to meet the MCR
requirement of PKR 7bln as at December 2010.
Al Baraka Banking Group (ABG), incorporated in the Kingdom of Bahrain, is
one of the largest Islamic banking and financial services institution in the
world. ABG with an asset base of USD 15bln at end-Sep10 and rated BBB-
for longterm and A3 for short-term by Standard and Poor's has an
international network of 11 subsidiaries and 2 representatives offices with
over 300 branches in 13 different countries in Asia, GCC region, middle east
and Africa. Going forward, the bank would have eleven member BoD
comprising representatives of sponsoring groups and three independent
directors. Mr. Shafqaat Ahmed CEO is a professional banker with over four
decades of experience.

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AL-BARAKA IN PAKISTAN
Al Baraka Islamic Bank (Aib) has the honor of being the pioneer of Islamic

banking in Pakistan and has been operating in the country as branches of Al

Baraka Islamic Bank Bahrain since 1991. Over the years, the bank has
successfully developed and maintained its identity as one of the leading
providers of a host of banking products and services in strict compliance with
Shariah principles.
Currently operating with 29 branches in 17 major cities of the country,
AIB offers a wide array of Islamic financing products such as Murabaha,
Ijara, Musharaka and Islamic Export Refinance, etc., catering to a diverse
cross-section of the economy, including the Corporate, SME and Consumer
sectors. Moreover, various Shariah compliant deposit schemes are
available for customers to invest their funds in, along with a variety of other
ancillary services such as online banking, ATM/debit card, safe deposit
lockers and utility bill payments etc.
Al Baraka Islamic Bank (AIB) is a member of Al Baraka Banking Group
(ABG) which is a Bahraini Joint Stock Company listed on Bahrain and Dubai
stock exchanges and one of the well-known leading international Islamic
banks. ABG is committed to expanding its presence in Pakistan, which is
evident from the rapid growth being undertaken by Al Baraka Islamic Bank in
the country and its plans to have its Pakistan operations localized as a Bank
registered in Pakistan, over the next few weeks. Building on the expertise
and experience of its workforce and the growing awareness of Shariahcompliant banking solutions among the masses, AIB has successfully
developed itself as a major unit of ABG operating in the region, capitalizing
on the Groups geographical presence and high quality research and
development in Islamic financial products for its business expansion in the
country. Faced with growing challenges in this rapidly developing market, AIB
strongly relies on its ability to be an effective and efficient market player

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through renewed focus on superior customer service, development of Islamic

alternatives to conventional financing facilities, and strict adherence to
Shariah rulings and principles.
Albaraka Banking Group is the biggest Islamic banking group listed on the
Bahrain Stock Exchange in terms of capitalization. It has been rated by
Standard & Poor's as BBB- with a short-term rating of A-3. ABG offers retail,
corporate

and

investment

banking

and

treasury

services

strictly

in

accordance with the principles of the Shariah. The authorized capital of ABG
is US$1.5 billion, while the total equity amounts to about US$ 1.59 billion.
With assets of US$11.2 billion, the Group has a wide geographical presence
in the form of subsidiary banking Units in 12 countries, which in turn provide
their services through more than 250 branches. These banking Units are
Jordan Islamic Bank/ Jordan, Al Baraka Islamic Bank / Bahrain, Al Baraka
Islamic Bank / Pakistan, Banque Al Baraka D'Algerie/ Algeria, Al Baraka Bank
Sudan/Sudan,

Al

Baraka

Bank

Ltd

South

Africa,

Al

Baraka

Bank

Lebanon/Lebanon, Bank Et-Tamweel Al- Tunisi Al Saudi/ Tunisia, The Egyptian

Saudi Finance Bank/Egypt, Al Baraka Turk Participation Bank/Turkey, Albaraka
Bank Syria (under establishment), and representative office, Indonesia.

Page

15 of 69

BRANCHES IN PAKISTAN

SOUTHERN REGION
S.
No.

01

Branch Name

Karachi Main

Cod

Addr

Telephone

ess

No.

Fax No.

Lakhani

021-

021-

Centre,

2636261

2635045

I.I.

021-

Chundri

2636262

gar
Road,

E-mail

khi@albaraka.com.p
k

021-111742-742

Karachi
02

Karachi Gulshan

.
Provinci

021-

021-

khi.kgi@albaraka.co

al Trade

4824510-13

4813240

m.pk

.
LPlot #

021-

021-

khi.kia@albaraka.co

1-A,

5114001-4

5114005

m.pk

Centre,
Block
13-B,
Gulsha
n-eIqbal,
Karachi
03

Karachi Korangi

Sector
23,

Page

16 of 69

Korangi
Industri
al Area,
Karachi
04

Karachi Clifton

.
Garnet

021-

021-

khi.kcn@albaraka.co

Centre,

5360901-4

5360906

m.pk

Khayab
an-eJami,
Block
-8,
CLifton,
Karachi
05

Karachi

.
City

021-

021-

khi.ksf@albaraka.co

Shahrah-e-Faisal

Tower,

4373201

4373200

m.pk

Plot

33-A,
Block
-6,
PECH
Society,
SharaheFaisal,
06

Karachi

SITE

Area

Karachi
Plot No.

021-

C-18/A,

6011390

ksi@albaraka.com.pk

Estate
Avenue,
SITE,
07

Gadap Gulshan-

Karachi
Plot No.

021-

021-

Imran.nizami@albara

e-Meymar

SB-13,

6350931-3

6833332

ka.com.pk

SectorZ,

Sub

SectorIV,
Gulsha
n-eMeyma

Page

17 of 69

r,
08

Hyderabad

Gadap
Shop

022-

022-

hyd@albaraka.com.p

No.

2636962-4

2634990

A/2616,
WARDA, Noor
Moham
mad
High
School
Road

CENTRAL REGION
S.

Branch

No. Name

Cod Ad

Telephon Fax No.

e No.

dre

E-mail

ss
01

02

Lahore Main

Lahore

Circular

Road

95-B,

042-

042-

Hali

5756016

5756877

Road,

042-

Gulberg

5756074

-II,

042-

Lahore,

5756084

Pakistan

042-111-

742-742

64-

042-

042-

lcr@albaraka.com.

Circular

7674801

7674802

pk

Road,

042-

Lahore

7674803

albaraka@albarak
a.com.pk

0427674804
03

Lahore DHA

80-Y

042-

042-

lhr@albaraka.com.

Block,

5692771-5

5721482

pk

Defence
Housing
Authorit
y,

Page

18 of 69

Lahore
Cantt.
04

Lahore

Shadman

5, Race

042-

042-

lsh@albaraka.com

Course

6366913

6362533

.pk

806-C,

042-

042-

Faisal

5160263-4

5160388

816-C

041-

041-

fsd@albaraka.com

Main

2637321-3

2634377

.pk

Faisal

041-111-

Lane,

742-742

Road,
Lahore.
05

Lahore

Town

Faisal

Town,
Lahore
06

Faisalabad

Civil
Lines,
Faisalab
ad.
07

Multan

76

061-

061-

mlt@albaraka.com

Abdali

4500371-4

4500375

.pk

Anwar

055-

055-

guj@albaraka.com

Industri

4273172

4273190

.pk

es

055-

Comple

4273177

Road,
Multan.
08

Gujranwala

x, G. T.
Road,
Gujranw
ala.
09

Gujrat

Lamcy

0533-

0533-

Hotel,

530513-15

530516

Opp. Go
Well
CNG
Station,
GT
Road,
Gujrat

Page

19 of 69

10

Sahiwal

183-B/7,

040-

swi@albaraka.com

Sarwar

8059040

.pk

1/1437,

052-

skt@albaraka.com

Paris

3006118

.pk

Shahee
d

Kutcher
y Road,
Sahiwal
11

Sialkot

Road,
Sialkot

NORTHERN REGION
S.

Branch Name

No.
01

Islamabad Main

Code

Addr

Telephone

ess

No.

Fax No.

E-mail

11-W,

051-

051-

isb@albaraka.com

Blue

2206829-31

2206832

.pk

Area,

051-111-

Jinnah

742-742

Avenue,
Islamab
ad.
02

Islamabad F-10

7-G,

051-

051-

Lords

2111945-7

2111948

Block 3,

051-

051-

rwp@albaraka.co

Services

5792030-33

5792034

m.pk

Plaza, F10
Markaz,
Islamab
ad
03

Rawalpindi
Road

Mall

Plaza,
262,
The
Mall,
Rawalpi

Page

20 of 69

ndi.
04

Rawalpindi

137-B,

051-

051-

rwp_rcc@albaraka

Chandni Chowk

Chandni

4571128-30

4571127

.com.pk

Main

0992-

0992-

abd@albaraka.co

Manseh

34311214

343227

m.pk

091-

091-

pwr@albaraka.co

5250191-94

5250195

m.pk

058610-

058610-

mir@albaraka.co

48361-65

48363

m.pk

Chowk,
Main
Murree
Road,
Rawalpi
ndi.
05

Abbottabad

ra Road,
Opposit
e Radio
Station,
Jhangi,
Abbotta
bad.
06

Peshawar

UG

39-

40,
Deans
Trade
Centre,
Islamia
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Peshaw
ar
Cantt.
Peshaw
ar.
07

Mirpur

Plot
8,

#
Sub

Sector
B-3,
Part-2,
Allama
Iqbal
Road,
Mirpur,
Azad

Page

21 of 69

Kashmir
.
08

Rawalpindi City

A-65.

051-

051-

rcb@albaraka.com

City

5777411-15

5777410

.pk

Plot No.

051-

051-

CB-1,

4540861-3

4540864

Zulfiqar

0997-

0997-

man@albaraka.co

Plaza,

304178-80

303159

m.pk

sadder,
Jinnah
Road,
Rawalpi
ndi
09

Wah Cantt.

Sadat
Plaza,
The
Mall,
Wah
Cantt.
10

Mansehra

Abbotta
bad
Road,
Manseh
ra

Page

22 of 69

CORE VALUES
PARTNERSHIP

Partnership:

Our Mission
Our Vision

DRIVEN
Tosociety
meet the
financial
of communities
We believe that
needs
a fair needs
and equitable
financialacross
systemthe world by
NEIGHBOURLY
business ethically
in accordanceofwith
which rewardsconducting
effort and contributes
to the development
the the Sharia,

Our shared beliefs create strong bonds that form the basis of long term
practicing
the
highest professional standards and sharing the
community.
OF MIND
relationships withPEACE
customers
and staff.
mutual benefits with the customers, staff and shareholders who

Driven:

participate in our business success.

We have the energy and perservance it will take to make an impact in our
customers lives and for the greater good of the society.
Neighborly:
We value and respect the communities we serve. Our doors are always open;
our customers always experience a warm-hearted, hospitable welcome and
accommodating service.
Peace of mind:
Our customers are rest assured that their financial interests are being
managed by us to the highest ethical standards Commitment.
AL BARAKAS COMMITMENT TO ISLAMIC BANKING
Al Baraka Islamic Bank and Albaraka Banking Group are fully committed to
develop and promote an integrated Islamic Financial System. Compliance
with the rules and principles of Islamic Shariah is the core of the banking and
financial activities and its philosophy. All its banking activities are very
closely regulated by a Board of Shariah Advisors based at the Head Office in
Bahrain and a Shariah Advisor based in Pakistan, to ensure strict compliance
with the highest standards of Islamic Banking principles.

Page

23 of 69

PAKISTAN MANAGEMENT
Board Of Directors:

Mr. Adnan Ahmed Yousif, Chairman

Mr. Tariq Mahmood Kazim, Deputy Chairman

Mr. Shafqaat Ahmed, Chief Executive Officer

Mr. Abdulrahman Shehab, Director

Mr. Nadeem Amjad Khan, Director

Mr. Syed Tariq Hussain, Director

Mr. Abdul Ghaffar Fancy, Director

Mr. Federico Tauber, Director

Mr. Tariq Hamid

Mr. Salman Ahmed

Mr. Imtiaz Ahmad Pervez

Board Executive Committee (BEC):

Mr.
Mr.
Mr.
Mr.
Mr.
Mr.

Tariq Mahmood Kazim

Tariq Hamid
Salman Ahmed
Abdul Ghaffar Fancy
Nadeem Amjad Khan
Shafqaat Ahmed

Chairman
Member
Member
Member
Member
Member

Page

24 of 69

Mr.MuhammadSiddique

Secretary of BEC

Memon

HR Board Remuneration Committee (HRRC):

Chairman
Mr. Adnan Ahmed Yousuf
Mr. Tariq Mehmood Kazim
Member
Country Head
(ABL)
Mr. Abdul Ghaffar Fancy
Member
(EFH)
Mr. Federico Tauber (MAK) Member
Secretary of HRRC
Mr. Mukkarram Jafri

Board Audit Committee (BAC):

Central Region

South Region

Mr. Imtiaz Ahmad Pervez

Mr. Abdulrahman Shehab
Mr. Salman Ahmed
Regional
Manager
Mr.
Hanif Asharf
MR Amjad Ali

North Region

Chairman
Member
Member
Secretary to BAC

Branch Manager
Mr Muhammad Arshad

Board Risk Committee (BRC):

Mr Muhammad Arshad

Chairman
Mr. Tariq Hamid
Member
Mr. Imtiaz Ahmad Pervez
Member
Mr. Nadeem Amjad Khan
Member
Mr. Syed Tariq Husain
Operational Manager
Foreign trade Manager
Credit & Marketing
Musadiq
Mr. Federico Tuaber MR AsadMember
Umer
Meer
Manager
Mr
Hafiz
Ullah Khan
Secretary to BRC
Mr. Ayyaz Ahmed
Shari'a Advisor:
Assistant Manager
MR Irfan

Justice (R) Khalil-ur-Rehman Khan

A/c opening
Officer
Mufti
Abdullah
Miss Anum

Assistant Manager
MR Aamir

Officer
MR Salman

Najeebul Haq Siddiqi

Cash Officer
Mr Raheel

Clearing Officer
Mr Ramzan

Clearing Officer
Mr Saqib

MANAGEMENT HIERARCHY

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25 of 69

DEPARTMENTS & SERVICES

OPERATION DEPARTMENT
It is also called front office. The ABPLs operations department has number of
interrelated departments that works together to achieve the specific goals
and objectives of the organization. The ABPL has built hierarchical system
that Operation department perform functions relating to

Clearance

Settlement

opening of accntous

collecting the bills for Government

Collecting the fees on the behalf of universities and other agency

functions.

This department keeps customer records and handles the day-to-day

monitoring of margin positions.
It basically divided into these sub departments.

Deposits/account department

Cash department

Clearing department

Remittances department

All these departments come under the operations, which is headed/

controlled by the Manager Operations. These are are sub departments but
jointly known as operation department.

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26 of 69

DEPOSITS DEPARTMENT
CATEGORIES OF ACCOUNTS:
Bank offer following type of account to their customers.
Individual accounts:
Individual accounts are the most common personal investment accounts.
Opened by single person.
Joint Account:
A joint account occurs when two or more than two customers have one
account. Theparties to a joint account are considered in law as they are one
person.
Business accounts:
Business accounts can be opened by institutions, companies, partnerships,
trusts and non-profit organizations. Following documents are required.
TYPES OF ACCOUNTS:
Deposits are collected by opening account. Major types of accounts offered
in ABPL are following:

Current Account

Saving account
Profit and loss saving account
Khazana accont

Foriegn currency account

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27 of 69

 Current account
Saving account

Term Deposit Account

Current Account:
This type of account is payable to the customer on demand, hence called
currentliabilities due to their nature. No profit is given at this account.
Minimum amount for opening these types of accounts is normally about Rs:
1,000/-.

Saving account:
Saving account of two types is offered in ABPL

P & L saving account

Khazana account

PLS Saving Account:

The objective of saving account is to inculcate the saving habit in the general
public because profit is paid with fix rate of 5.25%.
Khazana account:
It is same like PLS Saving Account with difference that profit rate is decided
on monthly, quarterly, half yearly or yearly basis according to the terms of
the account.
Note
The rate of profit is high if the term of taking profit is haigh e.g profit rate of
quarter will be less than the half year term account.
Foreign Currency Accounts (FCAs)
Foreign Currency Account in ABPL can be opened in three major currencies of
the world,i.e., U.S. Dollars, European Euro and UK Pound Sterling. Only
authorized branches of ABPL can deal in foreign currency account. The
accounts can be opened both by Pakistancitizens and foreigners by
introduction and following other procedures required for general accounts

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28 of 69

with one exception for foreigners that they will have to submit a copy of their
passport. Amount deposited in the foreign currency account must be in
four currencies, which are mentioned earlier. When the customer will
withdraw the money,he/she will receive the amount in the same foreign
currency/profit will also be in thesame foreign currency.There are two types
of foreign currency accounts:

Current Account

Saving Account

These accounts are treated in the same manner as Pak Rupee Accounts.

Term Deposit Accounts

In this category Fixed or Term Deposit accounts are offered by the bank. In
these types of accounts the deposit can be withdrawn after a specified
period of time. Since the amount in these types of accounts is deposited for
a fixed period so the bank can easily invest them in any profitable activity
and can get return because there is no burden of withdrawal by the
customer.
OPENING OF ACCOUNT
Following is the procedure to open an account
Requirements for Opening an Account:

At the time of opening an account the customer must have following

characteristics:

Must be an adult/adult guardian.

Must not be bewared under any law from entering into any contract.

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29 of 69

Should be known to the any of the banking staff according to KYC

policy.

Account Opening Procedure:

The following procedure is followed for opening of all the accounts.

Filling of the application form.

Signing the specimen card/SS Card.

Submission of proper legal documents.

Allotment of account number.

Issuing of check book.

Method of Judging the Fraud:

The original CNIC card is checked.

For more confirmation,after scanning the photocopy of CNIC copy it is

mailed to headoffice. Head office sends back the verysis after
confirming it from NADRA

Face is matched with the picture on the ID card.

Expiry of the CNIC is also checked.

The signature of the customer is checked. In case if customer is

illiterate then his photo is attached and thumbs expression is given.

After the account is opened a letter of thanks is issued to the customer.

Purpose of sending letter of thanks:

The purpose is verification of address If the customer had given the wrong
address the letter will come back and the account is marked as doubtful.
TYPES OF ENTITIES:
Bank offer account of following types to these entities.

Individual account
Businessman

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30 of 69

 Salaried person
Student
Minor
House wife
Photo account

Joint account

Sole proprietorship

Partnership

Public /private Ltd. Company

Trust/club/society

Others

DOCUMENTS REQUIRED
The following documents are required from the different type of customers.It
is important to mention that documents are demanded from customers with
a view to ensure the source of income of respected entity.
Types of documents
Two types of documents are demanded from respected entity.

Business documents

Personal documents

HOW TO CLOSE AN ACCOUNT

Procedure for closing an account:

The customer can close the account. The customer is required to submit
an application for closing the account. Then the account is closed out

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31 of 69

and his balance is paid to him after deducting the Closing charges Rs.
232 and the application is filed in Account closing file.

Internal circular is circulated in the whole branch for checking if any

liability arises.

If any liability existed then account cant be closed.

Cheque book is returned back to bank and the officer cancel and the
remaining cheques in cheque book by marking the stamp VOID. And all
other facilities if the customer was taking from the customers are
surrendered.
The range of checks in the checkbook returned is also jot down in the
account closing form.
After deducting the account closing charges and bringing the balance of
account being closed to zero the statements of all the years are printed
out.
Acoount closing form is attachd with account opeing form of relevevnt
account and the account apening form is mar
I used to learn how my instructor keeps the record of check book being
issued to customer and remaining cheque books in hand.
General Rules for Various Types of Accounts
Following are some general rules, which are applicable to all kinds of
accounts:

Not more than one account of each category may be opened in one and
the same branch except joint account with any other individual.

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32 of 69

In the event of the death of an account holder the credit balance in the
account shall be paid to the legal heirs of the account holder.

The account holder wishes to close the account should surrender all
unused checks.

In case of minor account, when minor become major then it is

responsibility of bank to close its minor account and open simple
account

If a person is agriculturist then he is required to submit FARD

Any professional is required to submit the proof of hie professionalism

for

example

Doctor

is

required

to

submit

MBBA

certificate

or

appointment letter

If some one for example labor does not have any strong evidence or
proof of his earning then he is required to submit application having
request of opening account
CASH DEPARTMENT

The Major function of this system is Receipts & payments to the customers,
on behalf of their account, through Cheque or any other negotiable
instruments.The cash system mainly encompasses following areas:

Receipts

Payments

Receipts:
The Account holder deposits in their accounts through a deposit slip. The
deposit slip contains the account number and the title of account. The
amount in figure and words is also written on both side of the slip. The
customer then deposits the amount to the cashier, which is dully signed by
the cashier and an officer .At last amount is deposited in customers account.
Payments:
Kinds of checks:

Cross cheques

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33 of 69

Ordinary cheques
CLEARING DEPARTMENT

The function of this department is getting payment of check, demand draft,

paymentorder, telegraphic transfer, mail transfer or dividends warrants
deposited by the customer of the branch and other branch of the same
bank. SBP acts as a clearing house.
Clearing House
In Pakistan, State bank of Pakistan acts as Clearing House to settle the
claims of the different banks through their representatives and this function
was earlier performed by the National Bank of Pakistan where there is no
branch of SBP but now National Institutional Facilitation Technologies (NIFT)
is performing the function of Clearing House for all the Banks including ABPL.
Clearing Procedure
The following procedure is fulfilled for clearing items.

All instruments for collection (check, drafts, pay orders, etc) received
for clearing tobe deposited by the customers are be entered on the
banks general pay-in slip alongwith all the details, especially the bank
name/code and the document number.

The clearing official of the bank affixes the banks crossing and clearing
stampsalong with his/her signature.

All these instruments are sorted and posted in the system.

The next day they are presented for clearing in NIFT.

In case there is no objection the customers account is credited.For

dishonored instrument the fine is charged from the customer

REMITTANCES DEPARTMENT
The function of the remittance department is the transfer of money/funds
from onebank/branch to the other.

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34 of 69

Modes/Instruments of Remittance
The Bank of Punjab, like other Commercial Banks undertakes to remit or
transfer moneyfrom one place to any part of the country and outside the
country. The money is remitted mostly by means of:

Demand Draft (DD)

Pay Order (PO)

Mail Transfer (MT)/Telegraphic Transfer (TT)

Outward Bills for Collection (OBC)

Inward Bills for Collection (IBC)

Demand Draft (DD)

A demand draft is an order instrument issued for payment of a certain sum
of money tothe order of certain person and drawn on one office of the bank
by another office.It is made by the banks against payment of cash. The bank
recovers different types of charges from the applicant on issuance of DD,
covering its commission and other postal charges.
Pay Order (PO)
It is a check drawn by a bank on itself. The payment orders are generally
issued for thepayment with in the city where payment through checks is not
possible. The bank chargesfixed commission for clearing this instrument.
Mail Transfer/Telegraphic Transfer
These are the faster ways to transfer money. The following procedures are
fulfilled in thisregard:

Check the test numbers at the arrival

Verify the signatures of the bank official.

Entered in the relevant register.

Make payment.

In Telegraphic transfer the specific codes are exchanged by the bank

official ontelephone but this is normally not followed.

Outward Bills for Collection

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35 of 69

Bills sent to other cities banks for clearing are called outward bills for
collection.

Checks are entered in the OBC register, the number is written and
clearing stamp is affixed along with the test number entry.

The OBC advice is prepared.

The respective checks are attached with the advice.

This is sent to the relevant city.

Upon clearing that bank credits the bank account and gives advice to
the bank.

Inward Bills for Collection

Bills received from other banks out of city for the local clearing are
called inward billsfor collection.

The bank received the clearing advice along with the check/draft.

The checks/drafts are recorded in the inward mail and entered in the
IBC register.

The checks are lodged for clearing.

After realization the advice is mailed to the branch and its account is
credited.

Foreign Remittances
To facilitate its customers in the area of Home Remittances ABPL has taken a
number of measures to Increase home remittances through the banking
system and Meet the SBP directives/instructions for timely and prompt
delivery of remittances to the beneficiaries.
CREDIT DEPARTMENT
Credit department deals with funded and non funded facility. In other words
it can be said that it covers with both long-term and short- term

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requirements. Murabha, Istasna and Salam meet working capital needs

whereas Ijarah and Diminishing Musharakh fulfill long-term financing
requirements for plant and machinery.
As an Islamic Bank the Credit department of ABPLprovides the goods to the
customers not cash like Conventional Banks which makes the transaction
Halal according to the Islam. Credit is divided into the following Categories:
Funded
Non-Funded
Basic rules for Murabaha financing:
The following are four basic rules for the implementation of Murabha contract
according to Islam,

Asset to be sold must exist.

Sale price should be determined.

Sale must be unconditional.

Assets to be sold: should not be used for un-Islamic purpose, should be

in ownership of the seller at the time of sale, and should be in physical
or constructive possession of the seller.

Types of Murabaha
Murabaha sale is divided into two types:
Ordinary Murabaha sale:

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There are two parties to it, the seller and the buyer. The seller is an ordinary
trader who buys a commodity without depending on a prior promise of
purchase, and then he displays it for Murabaha sale for a price and a profit to
be agreed upon.
Murabaha sale connected with a promise:
There are three parties to it. The seller, the buyer and the bank as an
intermediary trader between the buyer and the seller. The bank here does
not purchase unless the buyer specifies his desire and a prior outstanding
promise to purchase.
The mode of Murabaha sale connected to a promise is used by the Islamic
banks which undertake the purchase of commodities according to the
specifications requested by the customer and then resell them on Murabaha
to the one who promised to buy for its cost price plus a pre-agreed profit.
There are different forms to the application of Murabaha sale connected to a
promise of purchase. Some of these forms are determined by whether the
promise is binding or not. Other forms are determined by how the bank
receives the commodity in the case of the first sale. The bank may receive
the commodity directly or through one of its agents or it can authorize the
buyer to receive the commodity.
Features:

Flexible repayment terms

Competitive pricing

Fixed/Reducing balance basis

Minimum Murabaha finance: USD 50,000/-

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Variable tenors

Demand Promissory Note.

Provisional Transactional Note.

Bill

Cheque / DD/ PO

The following are the other charge documents,

Personal Guarantee

Demand Promissory Note (for total)

GFCA

Statement of Lien

Statement of Set off

Agent/Customer informs ABPLthat it has purchased cotton of Rs.10

Million and has also taken its delivery/possession on the banks behalf.
The Agent then makes an offer to purchase it at Rs. 15 Million to be
paid after one year by signing the Declaration and submits

Murabaha purchase evidence in the form of an invoice, bill or some

other documentary evidence. ABPLsells the goods to the customer on
Murabha (i.e. cost plus profit basis).

Negotiation:
Exporter comes to the bank and submits the shipping documents along with
LC (letter Of Credit) exporter bank received the documents with LC. Checks
the documents with LC, take indemnity or guarantee from the exporter and
after approving from the branch manager and head office, gives value of the

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documents to the exporter. In other words negotiation means payment of

documents in export by the bank to the beneficiary (exporter).
FOLLOWING BODIES MAKES THE ROLES AND REGULATIONS ABOUT
LC
State bank manual:
State bank foreign exchange manual 2002 states the roles and regulations
which guide how the transaction would be carried out across the border.
International Chamber of Commerce:
International chamber of commerce make a set of rules about Liberalization;
Energy; IT, E-Commerce and Telecommunications; Transport, Shipping and
Logistics; IPR and Copyright, and Arbitration.
ISBP 2002:
The widely acclaimed International Standard Banking Practice (ISBP) for the
Examination of Documents under Documentary Credits was selected in 2007
by

the

ICCs

Banking

Commission.

First introduced in 2002, the ISBP contains a list of guidelines that an

examiner needs to check the documents presented under the Letter of
Credit. Its main objective is to reduce the number of documentary credits
rejected by banks.
UCPDC

GUIDELINES:

Uniform Customs and Practice for Documentary Credit (UCPDC) is a set of

predefined rules established by the International Chamber of Commerce
(ICC) on Letters of Credit. The UCPDC is used by bankers and commercial
parties in more than 200 countries including India to facilitate trade and
payment through LC.UCPDC was first published in 1933 and subsequently
updating it throughout the years. In 1994, UCPDC 500 was released with only
7 chapters containing in all 49 articles. The latest revision was approved by

Page

40 of 69

the Banking Commission of the ICC at its meeting in Paris on 25 October

2006. This latest version, called the UCPDC600, formally commenced on 1
July 2007. It contains a total of about 39 articles covering the following areas,
which can be classified as 8 sections according to their functions and
operational procedures.
In negotiating a contract, an exporter must determine who is to meet the
various charges as they are incurred. The more common terms of contract
are:
C & F (cost and freight):
It means that the price will include the cost of goods and freight paid in
connection with the delivery of goods on board the carrying vessel for
unloading at the port or airport of destination named in the contract.
Documents needed are:

Commercial invoice.

A full set of bills of lading evidencing that the goods have been
shipped on board the carrying vessel and stating that freight has
been paid by the exporter.

FOB (free on board):

It means that the exporter has only arranged the space and shipped the
goods without payment of freight. Thus the freight charges are to be paid by
the consignee at the port or airport of destination.

IMPORT
There are three types of import:

Letter of credit
Firms contract
Advance payment

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41 of 69

LC (Letter of credit):
It means guarantee to pay by the issuing Bank if either of the parties
(importer or exporter) defaults/unable to pay at sight (immediately /arrival of
documents) or at payment in due date in acceptance.
Advance payment:
In advance payment method the exporter is trusted to ship the goods after
receiving payment from the importer.
Cash in advance before shipment may seem to be the most desirable
method of all, since the shipper is relieved of collection problems and has
immediate use of the money if a wire transfer is used. Payment by check,
even before shipment, may result in a collection delay of four to six weeks
and therefore frustrate the original intention of payment before shipment. On
the other hand, advance payment creates cash flow problems and increases
risks for the buyer. Thus, cash in advance lacks competitiveness; the buyer
may

refuse

to

pay

until

the

merchandise

is

received.

Advance Payment
LC
Contract

REMITTANCES
Remittances are of two types:

Inward Remittance.

Outward Remittance.

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42 of 69

Inward Remittance:
The Bank receive inward message through SWIFT for credit to the
beneficiary account being maintained either in Pak rupees or FC account. In
case of Pak rupees account mentioned in the SWIFT Message. The receiving
bank converts the FC account into Pak rupees by applying TT Buying Rate of
the value date of that day.
Remittance Outward:
Until and unless special approval /permission have being granted by SBP.
The FC amount can be duly remitted through FC account only by depositing
FC cash.

IJARAH
Ijarah means to give something on rent. It is a long term financing
agreement
Mode of Financing
The chosen mode of financing would be the Ijarah agreement, where the
Bank acquires an asset (plant & machinery, vehicle) and the rents it to the
client for an agreed period.
Car Ijarah in ABPL

A rent arrangement is executed between the AIB and applicant

(customer), where the Bank will provide an asset (vehicle) after the
mutual agreement to the term laid down the Ijarah contract.

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43 of 69

The customer agrees to a monthly payment (rent) to the Bank for use
of the vehicle.

At the completion of the agreed period, the Bank gives the customer an
option to purchase the asset (vehicle).
The following table details some of the macro-features of the applicable
mode of financing:

Documentation of Ijarah
There are a number of documents involved in an Ijarah financing transaction.
The following documents are required for the approval of credit.

Credit Application

CIB

Other Bank Opinion

Spread

Last Three Years Financials

Borrowers Basic Facts Sheets (BBFS)

Request Letter (RL)

Call Report

Risk Rating

Transactional documents for Ijarah are as follow:

Purchase Agreement

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44 of 69

Agency Agreement.

Possession Report.

Description of assets Report.

Demand Promissory Note.

Provisional Transactional Note.

Bill

Cheque / DD/ PO

The following are the other charge documents,

Personal Guarantee

Demand Promissory Note (for total)

GFCA

Statement of Lien

Statement of Set off

Diminishing Musharaka
Musharaka is a contract whereby the bank and a customer agree to combine
their financial resources for the establishment or running of a business or
project, or for undertaking any type of business activities. The two parties
agree to manage the project in accordance with the terms of the contract.
The profit or loss will be apportioned between the parties pro rate their
participation in the invested capital. Unlike the sharing of loss, the sharing of
profit may be or may be not pro rata the share of the parties in the capital,
depending on the additional work or responsibilities that either of the two
parties may shoulder.
In a Diminishing Musharaka the banks share decreases gradually as a result
of a gradual sale of its shares to the customer against the payment of
installments. The bank makes profit by selling the share at a price which is
higher than its original value.

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45 of 69

TYPES OF SECURITIES
The word security means any thing given to protect or safeguard the
repayment of an advance and to justify this term the thing so given should
itself be safe; otherwise the object for which it is given is defeated.
The ABPLusually takes three types of securities from its customers just for
the sack to secure its clients deposits
These types are:

Pledge

Hypothecation

Mortgage

In each case the bank does not become the owner of the, property but the
bank has only the right over the property until the borrower makes payment
of his debt.
Pledge:
In a pledge, the possession of the property but not the ownership passes to
the creditor. The pledgee is entitled to the exclusive possession of the
property until the debt is repaid but the ownership remains in the pledgor
subject to the pledgees right.
Hypothecation:
In case of hypothecation, the property in goods is charged as security for a
loan from the bank. But the ownership and possession is left with the
borrower. In case of hypothecation, neither the property in goods and nor the
possession of property pass to bank, but only the security is granted in a

Page

46 of 69

form of letter of hypothecation, which usually gives the banker' charge on

the hypothecated goods.
Mortgage:
In a mortgage, the property in the thing mortgage is conveyed to the
mortgagee conditionally. The possession, until default in repaying the loan,
generally, remains in the original owner subject to the mortgagees rights.

MY AREA OF INTERNSHIP
I did my internship in banking sector, AlBaraka Bank Pakistan Ltd. ,
Gujranwala branch situated at Anwar Industrial Complex, G.T Road.
ABPL is working in Pakistan as a foreign bank since 1991; in Gujranwala it
starts its work from 31st December, 2007. This branch within a short time
gets better position in market. During my internship I got the opportunity to
work in different departments like

OPERATIONS DEPARTMENT

CREDIT DEPARTMENT

FOREIGN TRADE DEPARTMENT

I learnt a lot about the practical work of different departments under the
supervision of the department managers. I was given full authority to do
tasks so I gained a lot by the favor of certain individuals at bank. Although I
worked in all these departments but I gained most from foreign trade
department due to the manager of the department because he was very
cooperative and adept in his work. And I also give the credit to the branch
manager who gives me freedom to go all the departments for learning

My work
As I have mentioned earlier that it is mendatory for the students of masters
of commerce to join internship for the period of six weeks. The purpose is to

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learn the things practically. To fulfill this requirement I choosed the banking
sector. As i studied the subject of Islamic banking in my 2nd semester so I
was curious to know the real working of Islamic banking.
I was fully ambitious to learn maximum in this short spam of time. To achieve
my ambition I choosed the Islamic bank abpl Gujranwala branch situated at
Anwar Industries Complex, G.T Road.
I feel it necessary to describe that the manager of branch and the credit and
marketing department were too much cooperative and helping. It made
workme feel confident and I was able to work in all the departments freely.
During my internship branch manager go for UMRA and the credit &
marketing manager worked in place of him he was too much co-operative
and motivated us to learn as much as you can and assured us for any kind of
help if needed. He also assured us for any kind of help needed for
preparation of report.
During my internship I worked in three departments

Foreign trade department

Credit department
Operations department

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First work
At first day I was very passionate as after giving my last semester I was
going to last step of my masters of commerce. Now it was time of practically
viewing the working of an organization. During my internship I came to know
that there is a big difference in real working and bookish knowledge.
I spend my first week in foreign trade department. Here Mr. ASAD MEER
guided us as he is foreign trade manager in this branch. he shared us his
views about the need of the establishment of this department. In this
department I was able to know about the activities involved for import and
export in the foreign trade department.
In this department I keenly observed all the documents involved in import. I
also asked the meaning of some technical terms found in these documents
and there purpose. He told us the whole process of import in detail. We did
not learn too much about export as he said that the process of export is
exactly opposite to the process opf import.
Mr ASAD MEER also told us the regulating laws of foreign trade which are
followed durion the whole process of import. I also viewed the registers in
which entries are made.
FOREIGN TRADE DEPARTMENT
First thing I learned was letter of credit, and then I viewed import and export documents.
LETTER OF CREDIT:
Letter of credit is the guarantee given by the importer bank to the exporter bank that if the
importer fails to pay the money, the importer bank also called Applicants bank pay on his behalf.
TYPES OF L/C:
There are several methods for making payment of an import or export transaction. These are
listed below:

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Irrecoverable Letter Of Credit

The issuing bank (importers bank) gives a lasting undertaking to accept and pay bills drawn
upon it, to the exporter, upon fulfilling the terms and conditions stipulated in the Letter of Credit
(LC). It gives complete protection to the exporter.

Recoverable Letter of Credit

The issuing bank (importers bank) can modify the LC without any obligation on its part. These
are usually not accepted by the exporters.

LC at sight

When exporter ships goods and present documents of shipment in its bank, exporter sends these
documents to importers bank. Importer has to make payment within 5 working days. In case of
default, foreign bank can claim markup. This is called LC at sight.
2nd day we ask Mr. ASAD MEER about the remaining types of LC. He was tolding us in very
detailed way. The remaining kinds of LC are:

LCDA

It is supplier credit LC. It facilitates importer. Payment is made at predefined future date which
may be 30, 60, 90 days. Goods are delivered before payment. Acceptance arrangement is made b
importers bank.

Deferred payment LC

It is just like LCDA but no acceptance is involved. Importer bank sends schedule to exporter
bank of deferred payment according to phases defined. Pre defined date is not given as
production may be completed earlier.

Transferable LC

In transferrable LC, exporter can transfer full LC or part of it.

Non-Transferable LC

In this kind, LC cannot be transferred to any other party.

Confirmed Letter of Credit

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This kind of LC has the protection of the credit standing of the importers as well exporters
banks. The exporters bank which confirms this LC, takes full responsibility of making payment
if the importers bank fails to do so.

Unconfirmed Letter of Credit

Though the issuing bank gives a commitment to honor the drafts, however, it does not give any
guarantee. From the exporters point of view confirmed irrecoverable LC is the best form of
receiving payment.
As there are so many kinds of LC it was a new thing 4 me so I was feeling it difficult to digest
them easily so the concerned manager advised us to revise the work of previous 2 days. So In my
3rd day of internship I revised the previous 2 days work and learned about some other kinds of
LC briefly.
Some other kinds are:

Freely negotiable LC

Clean LC

Special LC

Red clause LC

Green clause LC

Documentary LC

Fixed LC

Revolving LC

Back to Back LC

Other modes like L/C

L/C transfers equal risk to parties involved thats why it is considered favorable as compare to
others.

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Open account:
In this mode, major risk is of exporter. As he sends goods before receiving payment, importer
may or may not make payment. No bank is involved in this transaction. Payment is made simply
through accounts of businesses.
Import contracts:
It is just like L/C. transaction is committed between importer and exporter. Importer submits
import contract to bank just like Performa invoice. Security of supplier is less as compare to L/C.
importers bank does not give any acceptance, payment is only made when importer makes
payment. A certificate is issued by the importer named registration of certificate. It is for security
of supplier.
Advance payment:
Importer makes payment in advance. Major risk is of importer, as exporter may or may not send
goods, or he may send improper goods. To avoid any discrepancy resulting from cultural or
language differences, HS-code is introduced. Formerly ITC was applied.
Communication system
In ancient times L/C was used to send through Letter head of business. Then it was used to send
through Telex. It is just like typing machine. More reliable system of communication is
SWIFT.
L/C confirmation
It is needed in case of any issue which may be political or economical. If L/C is not being used
by a renowned bank, beneficiary bank may ask for confirmation from renowned bank. Security is
given by both of the banks. Confirmation charges are charged by confirming bank. upon
confirmation, L/C may be accepted
Codes used by SWIFT:
707- Amendment

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103- Funds transfer

202- Bank to bank payment
700- Credit issue
Modes of shipment
Shipment is made mostly through sea as it is economical as compare to other shipments. Modes
of shipments are as follows:

Shipment through sea

Shipment through air

Shipment through road

Shipment through rail

Shipment through truck etc.

Documents of shipment

Bill of lading is prepared in case shipment is made through sea. This bill is prepared by
booking officer or agent or captain of ship. Usually 4 copies are prepared each for
exporter, importer, importers bank, captain.

Air way bill is prepared in case shipment is made through air.

If shipment is made through truck, truck receipt is prepared.

In 4th day of my internship I asked them the payment methods he told us that
there are many modes of payments which are offered to customers
according to the needs of customers.
MODES OF PAYMENT
There are four modes payments which are as follows:

Deferred Credit

Sight Credit

Acceptance Credit

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Negotiation Credit

Deferred Credit
The draft is issued by the importer and presented to the bank by the exporter along with
documents (bill of loading, invoice, and insurance). The payment is made by the bank on
maturity of draft.
Sight Credit
The draft is issued by the importer and presented to the bank by the exporter along with
documents (bill of loading, invoice, and insurance). The payment is made by the bank if it finds
the documents correct.
Acceptance Credit
Bank confirmed that document has been received and payment would be made within certain
time period.
Negotiation Credit
The issued L/C can discount at any bank and got the amount money that he required against L/C
issued by the bank.
SHIPPING GUARANTEE
In case documents are not received by the importer and goods have been reached on the port.
Authorities inform the importer to get goods immediately. Importer may request importers bank
to issue shipping guarantee. Bank guarantees at his request and ensures that documents will be
presented when received. It is called shipping guarantee.
In 5th day of my 1st week I learned about the main documents of which are asked by ICC and
some other rules of ICC which are applied between whole process of import and export. He also
told us about some terms which are used in foreign trade world.
IMPORTS & EXPORTS
Main document is UCP for DC according to ICC publication # 600. ICC is regulatory body. Its
head office is located at Paris. All countries are its members. UCP is set of rules to avoid
complications & discrepancies among countries.

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Rules of ICC:
URR--means uniform rules for reimbursements
URC-- means uniform rules for collection
URDG-- means uniform rules for demand guarantees
These rules are applicable internationally. Some of them are being followed in Pakistan.
Foreign exchange regulations:
General rules:
Foreign exchange rules
Special rules:
Import policy order
Export policy order
Inco terms: (international commercial terms)
It is series of ICC. New series is Inco term 2010. It defines liabilities of seller and buyer. Inco
terms come with price quotations.

FOB

CFR/CNF/C&F

CIF

FAS

DAF

DDU

FOT

CPT

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Terms allowed in Pakistan are FOB and CFRIn my last day of internship at foreign trade
department I understand some ending processes of import and export and then I spend the
remaining time in discussing some other issues related to import and export.
IMPORTS
When the goods arrive at port or dry port, the importer will file the Bill of Entry giving the detail
of imports, Value of imports, Rate of duty & Tariff.
Customs appraisal officer will carry out an assessment of goods according to the rules/tariff
manual. Depending upon the assessment following taxes will be remitted by the importer:
Custom duty based upon ad valorem, specific rate or both. Sales tax - 15% of ad valorem +
custom duty.
With-holding tax 4% of ad valorem + custom duty + sales tax, Regulatory duty as imposed by
the government from time to time under the power of customs act.
EXPORTS
To dispatch the shipment, the exporter will submit shipping bill. The customs appraisal officer
will examine the goods for correctness of declared description, value, and claimed duty
drawback. Thereafter the goods will be allowed for shipping.
I spend my third & fourth week of internship in Credit department. In this
department I came to know the main purpose and benefit of the
establishment of this department & the necessary points which are kept in
mind while deciding that the credit should be granted or not. During my
internship I concluded that it is the toughest department of the bank. Here I
learned about the different modes of Islamic financing & about the facilities
for which the credit is granted keeping in view the important points in mind
as before granting credit different activities are performed on basis of which
it is decided that credit should be granted or not e.g customer rating sheet is
made which includes the rates assigned to different indicators.

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I also viewed the documents involved while performing activities in this

department.
2ND WEEK
I spent 2nd week in credit authorization department and 1 st day I learned about the documents
of credit, I keenly observed them which raised many questions in my mind I cleared some of
them some of those documents are as follows:

Transaction document

Charge document

Title documents

Transaction documents:
Murabahah: General sale and purchase
Ijarah: Rental based transaction is involved
In second day in this department I learned about different modes of Islamic financing.
ISLAMIC MODES OF FINANCING:
Murabahah:
An agent is appointed, a document named agency agreement is signed b the agent appointed
by the bank. Agent goes into the market and selects the required goods from the market and
informs the bank. Bank purchases this on behalf of customer and sell it to the customer, who is
also agent of the bank. In Murabahah, cost is known to the customer. Profit is also declared to the
customer.
Ijarah:
Ijarah is basically rental based. Car is rented out to the customer for specific time period which
may be 3, 4, 5 years. Customer pays the rent. Ownership is not transferred in this case. If
customer uses this even for number of years it will not come under the ownership of the
customer. Only price is declared to the customer.
Musharakah:

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It is just like partnership. Two or more partners share their investment and profit. Profit is
distributed in agreed ratio.
Mudaraba:
Two parties are involved in this case. One party invests capital in the business and other party
provides services. Services may be related to managing of money to earn profit for the business.

Rab-ul-Maal is the investor

Modarib is the person who gives services and manages the money

At 3rd day in this department I learned about the sale based products
SALE BASED PRODUCTS:
Salam:
Order is placed and payment is made in advance before goods are produced and delivered.
Payment is made in full only.
Istisna:
Production starts after placement of order and payment is made when goods are delivered.
Manufacturer uses its own material to produce goods. Payment can be made in installments or in
full.
In 4th day of 2nd week I revised the previous 2 days work as te concerned manager was busy
and I assuming it as an opportunity I questioned him about previous ambiguities.
In 5th day of this department I learned about the main points which are kept in mind while taking
decision that credit sould be granted or not.
Credit authorization:
Three operations are performed:

Identify existence of opportunity

Assessment of person reputation in market

Valuation of person through dealings

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Valuation of customer is done through checking tangible and intangible securities.

Securities are of two kinds, prime security and secondary security.
In 6th day which was my last day in this department I learned about the different risks involved in
taking any decision related particularly related with the credit granting also learned about the
documents involved for performing the whole credit process.
There are three types of risks:

Current risk

Business risk

Operations risk

After approval of credit, documents to be attached are:

Personal guarantee
This guarantee is given by any person. In case of default in paying back loan, that person wills
pay the loan amount on behalf of client.
General financing
It includes the parties of financing like customer and bank and they are interested in what kind of
financing is also mentioned.
Letter of lien
It means, take the right of accounts to charge.
Letter of set off
This letter is for payment of stamp charges.
Sanction advice
It contains information about sanctioning of advance. What amount of finance is sanctioned and
it will be paid. It is prepared after approval of loan and is signed by the client. All above
documents need signature from the client.
DORMANT ACCOUNT:

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In case banker do not operate his account or do not make any transaction for six months, his
account will be blocked apparently. Letter is sent to the customer one month before blocking
account, this letter is called pre-dormant letter. After blocking, a letter is also sent to the
customer, which is called post-dormant letter.
If he wants to activate his account, he needs to sign the request and perform at least one
transaction. No charges are deducted by the bank. He needs to submit his CNIC copy.
KNOW YOUR CUSTOMER:
A transaction profile is maintained by the bank in which important data relating to customer is
included. The data entered may be no of possible transactions performed during the month and
total amount of these transactions. Source of income and nature of business is also mentioned
in this. If the customer has to transact more than the defined limit because of expansion in his
business, the bank update KYC. If customer transact more than the defined limit and does not
inform the bank, the bank may inquire this. Customer sometimes transacts their black money to
convert it to white money. To avoid this, concept of KYC was introduced.
4TH WEEK
I spent second week in operation department doing billing and remittances. Operations officer
gave me some knowledge about these things. Purpose of these products is to ensure safe
payment. It is in favor of payee only. There are less chances of its miss use because these can be
deposited only in payee account. in case of loss, bank will be responsible.
DEMAND DRAFTS (DD)
DD is a written order given by the branch of the bank on behalf of the customer to other branch
of the same bank to pay the certain amount to the customer. DD are issued for the particular
place other than place of issuance. A draft is a Cheque drawn by a bank on its own branch or any
other branch of another bank at a different place requesting it to pay on demand a specified
amount of money, which is already received, to the person named on it. DD is of following two
types:

DD payable

DD Paid Suspense a/c

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In the first type as advice reaches for payment the immediately pay to the customer while in later
as DD presented by the customer, it is paid and the suspense account is debited.
Documentation:
A printed application form is provided for filling in completely and signing by the applicant.
After depositing an amount of draft and commission of the bank, duly completed and signed by
two authorized officers, then it is handed over the applicant and credit order is dispatched to
drawer branch. Following are the pre-requisites for the processing of DD:

Bank Serial No

No. of Rs.60 Postage charges

0.02% Withholding tax

In 2nd day of 4th week I learned about the other clearing instrument called as pay order in detail
and also get knowhow about CDR.
PAY ORDER
For this kind of remittance the payer must have the account in the issuing bank. Pay order are
more liquid as compared to cheques because cheques may be dishonored while PO cant be. It is
written order issued by the bank drawn and payable on itself. It is used for local transfer of
money from one person to another person. The public also uses it for depositing money with
Government or Semi Government department.
Documentation:
The party who requires a pay order will get a printed application from the bank. He will fill it
and deposits the amount and commission. The bank charges are same as on demand draft.

Bank Serial No.

No. of PO

Central No.

0.02% withholding tax

In case DD and PO gets dormant after 6 months of issue. Dormant account needed to revalidate.
Issuer should go to drawer branch and request for revalidation, bank changes the date and

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authorized signatory signs the document again. Credit advice is generated having information
about company on which it is generated in the favor of which company. One copy is sent to
drawee branch and the other is sent to head office.
CALL DEPOSIT RECEIPT:
Bank has no advantage of issuing DD and PO. CDR is issued for Govt. contracts. CDR can be
issued only to account holder
This day I learned about other clearing instruments known as Bills collection.
BILL COLLECTIONS
Bills department performs the following functions.

Inward Bills for Collection (IBC)

Outwards Bill for Collection (OBC)

Inward bills for collection (IBC)

These are bills or cheques etc., which are collected locally. They are received from outstation
branches banks and parties. If intercity clearing services of NIFT are not available in the area in
which branch of our bank is located. Cheques and DDs are sent through IBC & OBC.
Outwards bill for collection (OBC)
These are bills or cheques etc., which are sent intercity for collection.
Clean bills:
These are negotiable instruments, drawn on outstation branches, bills sent for collection on
behalf of the customers i.e. cheques, drafts or treasury bills etc.
Documentary bills:
These are bills accompanied by documents such as R.R.T.R Bills of landing etc. having title to
goods, collected by the bankers on behalf of their customers.
4th day I learned about clearing , its types, its documents and stamps marked in detail.
CLEARING

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In old times one representative of each bank had to go to SBP every day for record of clearing.
This was hard task to perform. To avoid this time taking task, SBP made contract with OCS and
made an institution called NIFT.
Representative of NIFT collects outwards in the evening and provide inwards in morning time.
Types of clearing:
Inward clearing:
Checks of Al-Baraka bank if submitted in other banks, those banks sends the checks to AlBaraka bank for clearing, this is called inward clearing.
Outward clearing:
Cheques of other banks if submitted by customer in Al-Baraka bank, the bank sends cheques to
other banks for clearing, this is called outward clearing. It is drawn by our bank on other.
Local clearing:
Within city clearing is named as local clearing.
Same day clearing:
Cheques having amount more than Rs. 100,000/- can be cleared in same day clearing. Only
specific branches are members of same day clearing. If cheques are objectionable, they can be
returned back. In this case Standard hours for NIFT service is 24 hours
Inter city clearing:
Clearing between the cities in which NIFT provides its services i.e. Karachi, Lahore, Peshawar,
Gujranwala etc. if cheque is cleared through intercity clearing, there will be no deduction in the
amount of cheque. Standard hours are 48.
If SBP does not play its role in clearing then NBP is authorized to perform this function.
Instruments of clearing:

cheque

Pay order

Demand draft

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Challan form

Stamps on clearing cheque:

Stamp of crossing

Stamp of clearing

5th day I was absent while 6th day I spent in clearing my ambiguities and revising the work done
in this department.
CREDIT
Work done in 5th week
I spent 5th week in credit & marketing department with Assistant vice president of the bank. Mr.
Hafeez Ullah Khan in this department I got the opportunity to learn about how bank valuate their
customers before lending them money.
1st day I spent in this department in learning its objective of learning and existence and how a
customer is captured.
CREDIT & MARKETING
Main objective of this department is to identify the parties who are interested to get loan. After
identifying them, bank investigates whether that party has the capability and willingness to pay
back the loan. I viewd the documents and information needed For this purpose.
2nd day I learned the main objective of financial institutions and came to know that it is very
important for an economy.
Functions of financial institutions
Main functions of financial institutions are as follows:

To enlarge economy

To make flow of funds more better

Financial system is a system which ensures the flow of funds between demanders and suppliers
of funds. It creates interface between supplier and demanders of funds.

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Categories to perform lending function

Credit marketing

Risk management

Credit administration

This day we properly started to learned the real working of this department.
CREDIT MARKETING:
Main objective of this category is the identification of clients in the market who needs credit. The
main role of this category is to develop credit portfolio for investment of money.
RISK MANAGEMENT:
In this category risk attached to credit is managed. Main role of category is risk evaluation of
proposal and if it matches to credit rules of SBP.
CREDIT ADMINISTRATION:
Main role of this category is the legal documentation of risk management.
Analysis performed:

Economic analysis

Industry analysis

Firm analysis

If bank want to lend some amount to a specific firm, it needs to analyze the economy at first,
then it need to analyze the whole industry. After that analysis of the firm is conducted. In
analyzing we do see two things, one is Risk and other is Return.
Financial system hesitates to give credit to dying industry or sector like textile etc. rising industry
is food and livestock. It would be beneficial for banks to give credit to this industry.
4th day I learned the main thing of this department and that was the process of developing a
relationship with a customer.
Develop relationship:

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After identifying particular industry, we find ways to create relationship with that industry. For
developing relationship, the following tasks are performed like:

Detail study of credit rating

Identify the risk involved

Identify areas of risk

Components of credit:

Capacity of repayment

Willingness to pay

5th day I spent in discussing my various queries related with my previous work done in this
department and then learned about the 5cs of credit analysis which are kept in mind while
granting money to any customer.
5 Cs of credit analysis:

Character

Personal attributes of any person are determined in this analysis.

Capacity

Capacity to repay is checked through this.

Cash flow

Operating cycle to generate cash flow is determined to find that whether person has sufficient
cash to repay.

Capital

Companys equity against debt is determined to find that whether the firms position

Conditions

Past, present and future condition of firm is determined.

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Bank sometimes conduct PEST analysis to make decision of lending. PEST means political,
economical, social and technological analysis.
6th day I further discussed queries which were arised in my mind and learned more which
something was new for me.
CPRMG:
It stands for credit policy and risk management group. Function of risk management is
performed by this group in head office of bank. This group implements the credit risk policy and
manages risk. It tells the bank, to which industry bank should advance credit.

It ensures the credit policy implementation

It manages deviations from policy

In credit policy deviation, CPRMG checks that whether the procedure adopted is according to
policy defined and if there is any deviation. It gives approval upon certain terms and conditions.
Credit authorization department checks the compliance of terms and conditions given by
CPRMG relating to issues of credit and its approval.
6th C added to credit risk components is collateral, which is security against credit. It is the
most latest in components.
WORK DONE IN 6TH WEEK
6th week was last week of my internship. During internship, I was relatively confident as I keenly
observed the overall operations of branch and concluded that it is better than its other branches.
The evidence of this is that this branch stood 2nd in profitability in central zone.
I got very good experience there because of cooperative environment. I conducted detailed
SWOT analysis and became capable to discuss it in my report. I discussed this analysis with
employees of bank and they were agreed to me. I also collected some annexure for my report and
got my letter of internship. I spent time in all departments and asked some questions relating my
internship.
During internship I did some following practical work:

I filled deposit-clips

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I reviewed and rechecked the particulars of account opening form

I reviewed the forms of dormant account

Employees have been very cooperative to me in all my internship. Their cooperative nature and
politeness is the key to success for them.
LAST DAY AT BANK
Last day is full of happiness because it was a tiring job for me to sit the entire day one place I
appreciate the employees who did not get irritated from sitting for hours.
I enjoyed to learnt a lot from bank but I personally dislike to have this as my profession as I fed
up to see same routine duties there is less opportunity to gain much knowledge as does teaching
job entail.
Last day I personally went to each person who guided me during this short time of my internship.
And presented the thank you card to them
Thank God I have completed my internship successfully!!!

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