PREFACE

Internship is the basic requirement of all business programs in nearly all of the business
institutes and especially in the ISLAMIA University of BAHAWALPUR. It is actually the basic
requirement of the course of BBA (Honors). Firstly the purpose of internship period is to
become familiar with the practical world that what is actually happening in different national
and multinational companies and how different activities are performed over there. Secondly,
to cope the theoretical knowledge with the practical side that what is to be taught us in
business institutes and how it is implemented in different enterprises?

I have done my internship in Bank Alfalah Limited (Bahawalpur) . I gained a lot from this
internship tenor under the kind supervision and guidance of my internship supervisor.

During my whole time I was visited through different cells of the bank and was thoroughly
briefed about the procedure and working by cordial senior staff of there. My report is all based
on what I have learnt there. I hope that my report will give you goodoverlook of all the banking
related matters.

1
 ACKNOWLEDGEMENT

All thanks to Allah Almighty, the benevolent and compassionate, who blessed me with the
power & capabilities and remained contented on all intricacies found during the successful
completion of my task. I’m grateful to my family members whose heart felt prayers and
appreciation have always been an asset and a great source of inspiration to me. It could be
complicated for me to accomplish the task without their shadow of love.

I would like to present a token of thanks for the staff members of Bank Alfalah Limited
BAHAWALPUR Branch, who were cooperative to me in the completion of this report and
provide me their complete guidance. As banks are very much sensitive about their secrecy,
even then after taking an understanding, they let me handle their delicate operations.

My special thanks to Mr. SALMAN(branch manager), MS SANA ISMAIL(incharge of

Remmittance department)Mr. saghar (agri finance dep) ,miss fatima(acount opening
department ), mr jamshaid (clearing dep ), mr tahiir (trade finance department ), mr sami
(accounts department ),mr zeshan naqvi |(operations manager), mr ali (credit cards
department )vwho gave me a horde of useful information and treated me extraordinarily at
each step of my learning over there.

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 DEDICATION

● ● ●

I would like to dedicate this accomplishment of my

report to my beloved and caring parents, and to
my teachers with the support of whom I am
standing at this step of my life stairs.

● ● ●

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Table of contents
Preface…………………………………………………………………………. 1

Acknowledgment……………………………………………………………2

Dedication……………………………………………………………………..3

Executive summery………………………………………………………..7

History of bank………………………………………………………………8

Banking sector in Pakistan………………………………..…………………….8

History of company………………………………………………………..10

 Company Background ……………………………………………………………..10

 Introduction to bank alfalah…………………………………………………….11

Vision……………………………………………………………………………..14

Mission……………………………………………………………………………15

Board of directors………………………………………………………….16

4
Management…………………………………………………………………….17

Organizational structure……………………………………………………20.

Objectives…………………………………………………………………………….21

Strategies………………………………………………………………………………….22

Departments worked during internship…………………………24

Accout opening department………………………………………………25

 Types of accounts …………………………………………………………………25

 Requirements of Account opening…………………………………………29
 Procedure of opening the account…………………………………………………30
 Amendments in Accounts………………………………………………………………31
 Closing of accounts ……………………………………………………………….32
 Major work done by account opening department……….
………………………………………………..33
 Other types of account……………………………………..34

Remittance department…………………………………………………………41

Clearing department………………………………………………………………49

Foreign Exchange Department …………………………………………..

Consumer Finance department:

 Credit cards department ………………………………………………………..53

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  Merchant acquiring department ……………………………………………..
 Car finance department ………………………………………………………58

Agri finance department ………………………………………………………60

Accounts department………………………………………………………………63

Credits department ……………………………………………………………….65

Financial Analysis…………………………………………………………………..69

Ratio analysis …………………………………………………………………..78

Swot Analysis………………………………………………………………………….89

Suggestions and recommendations ………………………………………….94

Conclusion ……………………………………………………………………………96

Annexure ………………………………………………………………………….108

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 Exective summary

I completed my six week internship at bank alfalah limited bahawalpur branch.during this
period i rotated in different departments of bank which are account opening department,
operations department, accounts department, car finance department and credits
department,credit cards department, agri finance department and foreign trade department.
Some of the work that I did in these departments included collecting cheques, filling account
opening forms, and activity checking. every aspect related to bank which i observed during my
internship programm is discused in this reprt.the working of differnt departments, procedures,
policies are also discused in my report.my report will enable you to provide information about
bank alfalah right from its incorporation to curent position.

The main purpose of internship is to do work in pratical environment and apply whaterver we
learned during studies.this enables us to cope with real world problems and equiped us with lot
of skills and abilites which are helpful for our practical life during jobs.in this report i tried my
best to provide the detail analysis of the oranization.like its financial analysis, analysis from
managerial , technical and strategic aspects has ben evaluated to analyze current position of
oranazation.

In swot analysis section, i did this analysis both from organizational point of view as well as
department wise anlysis to provide completle details about organization.the last section of
conclusion and recommendations includes the conclusion of overall report and some
recomendations given by me for this organization.

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 HISTORY OF BANKING

It has not so far been decided as to how the word ‘Bank’ originated. Some authors give views
that this word is derived from the words ‘Bancus’ or Banque’ which mean a bench.Other
authorities hold the opinion that the word ‘Bank’ is derived from the German word ‘Back’,
which means ‘joint stock fund’.It is therefore, not possible to decide as to which of the opinion
is correct, for no record is available to ascertain the validity of any of the opinions. Banking in
fact is primitive as human society, for ever since man came to realize the importance of money
as a medium of exchange, the necessity of a controlling or regulating agency or institution was
naturally felt

History of banking is traced to 2000 bc in greece. In old days periests and goldsmiths acted as
financial agents.They used to kep people,s valueables in temples in strong safete gold smiths
issued recepits for the money deposited with them.These recepits were drawn in such a way
that it entitled the holder to claim that specified amout of money from goldsmits.These recepits
were the earlier bank notes.

That goldsmiths noticed that the people who deposited their money with them did not come to
withdraw their cash, and so the most of money kept with them remain idle.they thought it
profitable to lend atleast some of money to needy persons.one other thing they did is that
insted of charging interest from deposits, they began to give them interest on money deposited
with them.At this stage the concept of interests on deposits was emerged.

Later on as time passes through experiences banks came to know that they could keep a small
portion of deposits for meting customers demand and the rest deposits could be used for
lending purpose.In order to earn profits banks did not keep adequate reserves to meet
demands of customers for cash.The failure of bankers to return money to customers sometimes
caused widespred confusion among customers.They starting lacking confidence on banks .

Different steps were taken to create confidence among people.and stepts weer taken to
regulate banking.In 1548, a conference was held in Nuremburg where it was decided that banks

8
should be set up by state.So that would make banking functions more stremlined. The first
central bank was thus formed in geneva in 1964. The responsibility of issuning notes is now
entrusted to central banks in each country.

As time passes, activities of commercial banks increased.Today they are dealing in huge
activities such as obtaining funds, advancing loans to business, farmers, households discounting
bils of exchange etc.They are acting as a multi functional and providing many services and plays
a vital role in the economy of a country.

Banking sector in Pakistan :

Banking is one of the most sensitive businesses all over the world. Banks play an important role
in the economy and are considered as the backbone of an economy in every country and
Pakistan is no exemption. Banks are custodian to the assets of the general masses. The banking
sector plays a significant role in a contemporary world of money and economy. It influences
and facilitates many different but integrated economic activities like resources mobilization,
poverty elimination, production and distribution of public finance. Pakistan has a well-
developed banking system, which consists of a wide variety of institutions ranging from a
central bank to commercial banks and to specialized agencies to cater for special requirements
of specific sectors.

9
 HISTORY of company

Company Background :

Bank Alfalah Limited (“BAL”) is a private bank in Pakistan owned by the Abu Dhabi Group. Bank
Alfalah was incorporated on June 21, 1992as a public limited company under the Companies
Ordinance 1984. Bank Alfalah is registered at both Karachi and Lahore Stock Exchange with a
ticker name of “BAFL”. Its banking operations commenced from November 1, 1997. The bank is
engaged in commercial banking and related services as defined in the Banking companies
ordinance, 1962, with the registered office at B.A.Building, I.I.Chundrigar Road, Karachi. Since
its inception, as the new identity of H.C.E.B (Habib Credit and Exchange Bank Limited) after the
privatization in 1997, the management of the bank started implementing strategies and policies
to carve a distinct position for the bank in the market place. This was further strengthened with
a partnership with the Abu Dhabi Group which owns 70% of Bank Alfalah shares. This allowed
the bank to invest more in revolutionary technology to increase its range of products and
services, perceiving the requirements of their customers and matching them with quality
products and service solutions.

10
 Introduction to Bank Alfalah

Bank Alfalah Limited was incorporated on June 21st, 1997 as a public limited company, under
the Companies Ordinance 1984. Its banking operations commenced from November 1st, 1997.
The bank is engaged in Islamic banking, commercial banking and related services as defined in
the Banking Companies Ordinance, 1962. The Bank is currently operating through 195 branches
in 74 cities, with the registered office at B.A.Building, I.I.Chundrigar, Karachi. Management of
Bank Alfalah accepted the challenge to transform this bank into a highly professional, most
efficient & service oriented institution. The management has been successful in fulfilling the
undertaken challenge. It has been successful in making a significant contribution to both
corporate and retail banking in Pakistan.

Over the years, its emphasis on growth has resulted in a strong entity capable of offering high
quality services to a wide spectrum of clients, in a highly challenging business environment. Its
strategy is to maximize the synergies of branch network through an optimal allocation of
financial resources in the face of dynamic challenges of present financial environment.

11
Strengthened with the banking of the Abu Dhabi Group and driven by the strategic goals set out
by its board of management, the Bank has invested in revolutionary technology to have an
extensive range of products and services. This facilitates theircommitment to a culture of
innovation and seeks out synergies with clients and service providers to ensure uninterrupted
services to its customers. The bank perceives the requirements of its customers and matches
them with quality products and service solutions. During the past ten years, bank Alfalah has
emerged as one of the foremost financial institution in the region endeavoring to meet the
needs of tomorrow today. Bank Alfalah Limited has continued its upward climb in pursuit of
excellence. Strengthened by the backing of the Abu Dhabi Group and driven by strategic goals
set out by its Board and management, Bank Alfalah Limited increasingly inspires trust and
confidence of all its clients. Within a short span of time the bank has carved a significant niche
for itself in the banking industry. These achievements have been preceded by concerted effort
to provide highest levels of service and value to our customers. The bank aims to further
enhance performance standards through implementation of innovations in both products as
well as customer care, by discovering newer avenues of client benefit. This customer-focused
strategy has enabled Bank Alfalah Limited to evolve as a single source financial service provider
of corporate and retail banking services.

Bank Alfalah reputation has been built on its tradition of high quality and the expertise of its
extremely motivated and qualified staff. With strategic mergers and acquisition, Bank Alfalah
has become a leading player in the global banking arena. The Bank Alfalah Limited team
comprises of dedicated professionals equipped with a diverse array of skills, vast experience
and pro customer attitudes. The management concentrates its energies on making informed
economic decisions, translating it into greater returns for our investors and customers. This
prudent attitude has created a synergistic organizational structure leading to improvements in
profitability and a sustainable competitive advantage for the bank. A Highly Responsive Product
Portfolio is not only comprehensive but also customizable to match the needs and preferences
of the customers. These characteristics of the portfolio have helped Bank Alfalah Limited to face
challenging economic conditions. The product lineup continues to fulfill and satisfythe banking

12
requirements.of not just the conventional consumer, but the demanding financial needs of the
corporate sector as well.

Today, as Pakistan moves into the 21st century with its ambitious expansion and development
programs, Bank Alfalah is here to join the efforts to help the country meet its growth
objectives. The bank offers an extensive range of financial services specifically designed to cater
to the needs of its successful associations with the Government and Private Sector.

Today Bank Alfalah is operating in more than 70 cities of Pakistan and operating its foreign
branches in Bangladesh, Afghanistan and Bahrain.

The major competitors of Bank Alfalah, pose close competition and are mainly large nationally
incorporated banks and a few international banks, that all want to become the leading banks of
Pakistan, by creating some edge in the industry. To create this edge, technology has played an
important role in the industry as banks are continuously trying to improve its products and
services by introducing innovative products.

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 VISION

To be the premier organization

operating locally &
internationality that provides
the complete range of financial
services to all segments under
one roof.

14
 MISSION

To develop & deliver the most

innovative products, manage
customer experience, deliver
quality services that
contributes to brand strength,
establishes a competitive
advantage and enhances
profitability, thus providing
value to the stakeholders of
the bank.

15
 

16
Management:

17
18
19
20
 BOARD OF DIRCETORS

CHIEF EXECTIVE OFFICER

(CEO)
↓

CHIEF OPERATING OFFICER

GROUP HEAD

REGIONAL MANAGER

AREA MANAGER

BRANCH MANAGER
↓

OPERATION MANAGER

↙ ↘

OFFICERS NON CLERICAL STAFF

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 OBJECTIVES OF BANK ALFALAH

The objectives of Bank Alfalah are as follows:

•To please their customers by fulfilling the financial needs as best

as possible, they believe in placing the client at the center of
business and all of the products and services. For this the
management has adopted the strategy of

•“Caring for you… Our Customers”

•To get maximum share of the market

•To price the products optimally

•To expand more the network of branches in several other cities

of Pakistan as well

as in the other countries of the world.

•To reinforce a corporate culture that fosters learning, creativity

and flexibility.

•To invest further in banking innovations which include Islamic

banking, SME, Home Loans and other areas of product
development to provide higher levels of services and value to the
clients.

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 Strategies

Corporate, Business and Departmental level strategies

Bank Alfalah has formulated certain set o f strategies to enable it to cope with other
competitors and to achieve its goals and objectives. These strategies are formulated at
corporate, business and departmental level.

At corporate level strategies are formulated regarding how the bank gains competitive
advantage by its products and services. How different products are introduced to get
competitive advantage in market. Bank Alfalah has the goal of creating sound based and
effective modern banking system, so it installed automated teller machines in all the major
cities of Pakistan. And also introducing them in remote areas having branches of bank Alfalah.
These machines are installed to gain competitive advantage.

Merchant acquiring machines are installed on large outlets in big cities. These machines are
installed with the aim of attracting customers towards their products like debt, credit cards of
bank Alfalah.

Bank aims at building long lasting relationship with customers by providing products and
services that satisfy their needs. Although still requires improvements, bank Alfalah is
continuously improving their relations with customers. Backed by Abu Dhabi group bank’s
management has built up a strong customer base. Totally bank is as providing valuable and
appropriate services to customers.

At business level bank formulates different strategies to incorporate cost leadership and cost
differentiation. Bank Alfalah main goal is also to provide quality products and services at low
charges as compare to their competitors. Still it is a not successful in achieving this aim but it is
formulating different strategies like focusing more on building god relation ship with

23
customers, keeping their satisfaction at the highest rank. And asking suggestions from
them to improve their products and services.

Superior personalized services ad value to the products. Bank Alfalah is continuously in

the process of knowing customers by name and understands their business and
personal financial needs. This one to one personalize service quality has served as
unique signature of bank Alfalah as it separates it from all other banks.

Bank Alfalah team consists of highly efficient, intelligent, skilled experienced working
staff and management. They continuously focus their attention on making good and
feasible economic decisions, bringing better returns and profits for bank and earn
revenues for their organization.

Keeping in view the large population of Muslim countries and their increasing trend
towards Islamic banking, bank focuses its attention towards Islamic banking. And its goal
is to achieve the largest share in this market.

At departmental level bank Alfalah has very skilled and efficient team of workers who
know how to run their departments and how are running their departments very
efficiently .and they will son acquire the reputation and status of bank which operates
on international standards.

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 Departments worked during internship

 During my internship I was rotated in following departments in bank Alfalah.

 Account opening department
 Remittances department
 Clearing department
 Accounts department
 Credits department
 Agri finance department
 Foreign trade department
 Consumer department which further includes following departments which are
 Car finance department
 Credit cards department
 Merchant acquiring department

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 Accout opening department

This is the first department i had worked in bank Alfalah. Miss Fatima deals with this
department. This is responsible basically for opening and closing of accounts.

Types of accounts: Bank Alfalah is currently dealing with these types of accounts

 Current account
 Pls saving account
 Alfalah mahana amdan account
 Alfalah Kamyab Karobar
 BBA( basic banking account )
 Saving account
 Term deposit account

Current account

In current account there are three types of accounts which are

 Basic banking account (BBA)

 Simple current account
 Alfalah Kamyab Karobar

BBA account: Basic Banking Account was introduced by banks on an order by the State Bank
of Pakistan and is current in nature. This account opens with Rs 1000.

Features:

 No minimum balance is required here.

 Non interest bearing checking account
 No restriction on ATM withdrawals

26
  No service charges are required for opening of this account.

Restrictions:

 No online facility is provided on such account.

 We can’t do more than 4 transactions via check. If we do more than 4 transactions then
service charges apply which is Rs 58.

Simple current account:

Initial deposit for opening this account is Rs 10000.

Features: service charges are applied to open this account but these charges are exempted in
case of student account, widow account, semi government officers and if it is for Zakat purpose.

AKK (alfalah kamyab karobar):

It is for business purpose. Only a businessman can open this account.

Features:

 Initial deposit for this account is Rs 5000

 free online banking facility
 free check books , POs and DDs
 gold visa debt /Atm cards is given with every account
 If a person’s account balance is between 5000 to 50000 then we place it in silver
category

27
  If the balance maintained is between 50 thousand to 1 laces, then t is placed in gold
category and above 1 lace, platinum category is given to him.

Saving account

 Pls saving account

 Royal profit account
 Kafiyat account

PLS saving account:

Profit& Loss saving accounts can be opened with a minimum balance requirement of Rs 5,000
and profit is credited on a half yearly basis.

Features:

 There are no restrictions on the number of deposits and withdrawal made to and from
the account.
 All account holders receive a Hilal debit card as well.
 Free debit cards can be used to with draw cash and make purchases at bank Alfalah
outlets.
 if your balance is equal to or above 50000, then you start receiving profit.

Restriction:

Profit and loss saving account cannot be opened by a business corporation, however can be
jointly opened by individuals.

Kafiyat account: Kifayat account is another saving account product that can be opened with
a minimum balance requirement of Rs 10,000, with a maximum limit of Rs 1 million. Profit is
calculated on a monthly basis, while it is credited on quarterly basis. Bank Alfalah pays 7% pa
interest on Kifayat Account.

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Its main features are

 Minimum balance for this account is Rs 10000.

 Profit is calculated 7 % and it is calculated on quarterly basis.
 online banking facility is available
 no restriction on number of transaction
 Average balance maintained must be Rs 10000.

Alfalah mahana amdan account: Alfalah Mahana Amdan account is Term Deposit Receipt
(TDR) for three years that can be opened with a minimum balance requirement of Rs 100,000,
with a maximum limit of Rs 15 million. Profits are paid at 10% pa, credited on a monthly basis.
Other features of this account include free personal accident insurance and automatic renewal
for another 3 years, after the expiry of original period. If you want to draw before date then
bank gives penalty to you

6 months......... 5 %

6-9 months.........2.5%would be deducted

9-12 months......0.5 % would be deducted

Restriction: this facility is not available for businessmen and customers.

29
 Requirements of Account opening

Requirement for opening individual account:

The basic requirements to open an account for individuals/self employed are as follows:

• CNIC

• Source of income (salary slip etc)

• NTN certificate (optional)

• Company letterhead or authorization (as required)

Requirement for opening partnership account:

The basic requirement to open an account for a partnership

• Partnership Deed

• Partners CNIC

• Company Letterhead

NTNcertificate (optional)

Requirement for opening company account:

The basic requirement to open an account for companies

• Memorandum of Association

• Article of Association

• Directors CNIC

30
• Company Letterhead

• NTNcertificate (optional

Procedure of opening the account

The procedure of opening the account is as follows.

1. Account Opening Form: First of all, the customer fills the account opening form (AOF).
Filling of account opening form includes type of account, currency of account, name, address,
signature of customer and signature of introducer and attach a photocopy of national identity
card. He also signs an undertaking that he will follow the rules and regulations of the bank.

2. Introduction: The signature and account number of the account holder introducing the
account to the new person is obtained on the account opening form.

3. Specimen Signature Card: The signature of the client is obtained on a specimen

signature card (S.S Card). The card is obtained with two signatures from the customer. Every
time a cheque is received for payment from the client, the signature on the cheque is verified
by comparing it with S.S Card.

4. Requisition slip: A requisition slip for Cheque book is also given to the customer. The
customer fills it and gives it to the account opener.

5. Know Your Customer Form: Every account holder fills this form. The basic purpose of
this form is to get some information about the customer.

6. Account Number: When all the formalities are completed, an account number is allotted
to the customer and all the information is entered into the computer and register. Then that
account number is written on S.S Card and account opening form.

7. Depositing of amount in account: The client deposit cash in the account. For this
purpose cash pay-in-slip is used. The minimum initial deposit is fixed for each account according

31
to the nature of account. For example for PLS / saving account the minimum requirement is
Rs.5, 000 only.

8. Issuance of a Cheque Book: After opening an account with the bank, the account holder
makes a request in the name of the bank for the issuance of a cheque book. Such a request is
known as Requisition Slip. BAL issue cheque books of at least 25 leaves. When he used this
book completely then he can apply for another. This process takes a day because the Cheque
books come from Karachi head office.

9. Entry of Cheque Book: Before issuance of a cheque book the bank stamp every leaf with
the account number of the customer, enter it in the cheque book register and computer and
issues the cheque book to the customer after his signature on the register.

10. Filing of AOF: Account opening forms are basic documents of the contract therefore
these are filed in numerical order and kept for reference.

11. Letter of Thanks: A letter of thanks is prepared. One letter is for the customer and one
for the introducer. One copy is send to the customer and the other copy is kept in the record
along with other documents.

Amendments in Accounts

BAL provides the facility of amendments in accounts, whenever required by the customers.
Account holder gives an application along with necessary documents to the bank. Then the
amendments are made in the account of the depositor. These amendments can be made by
filling certain application forms. These forms are as follows:

 Change of Address Form: To change the address of the account holder

 Change of signature form: To change the signatures of the customer.
 Liability / Inquiry Form: This form is used if some person has acquired loan from the
bank and he wants to close his current account, then he fills this form and this form is

32
 send to credit department. When the credit department declares him free from any
debt obligations then his account is closed.
 Vernacular Form: This form is used when some person wants to sign in any language
other than English.
 Mandate to the third party to operate the account: This form is used to enable any
third party operate the account.

Closing of accounts

The procedure of closing of account is as follows.

 First of all the customer gives the request to close the account.
 His signatures are verified.
 He withdraws all his money from his account but in case of current account Rs. 150 are
deducted as a charge of closing the account
 A liability form is send to the credit department if he has taken a loan from the bank. If
he is cleared from all the liabilities then further proceeds are taken.
 Permission is granted by the authorized person (the manager).
 Account is closed in the computer system.
 Hic specimen signature card is attached with the account opening form and marked
closed

Major Work Done by Account Opening Department:

33
Stop Payment:

If a customer looses their cheque book, then that customer will have to come to the bank and
firstly report the loss and then stop payment, by telling the series of cheque he has lost. By
stopping payment, the customer is guaranteed that no illegal payment is made from their
account. The process for stopping payment, after the customer tells that he has lost is cheque
book is that he fills a ‘Form B’, which is same as a cheque book requisition form and an
indemnity form, stating no responsibility on behalf of the bank if any illegal payment is made
before the time of announcing a cheque book lost.

Bank Statement and Bank Balance:

A bank statement tells the whole activity of a bank account over a period of time. Customers
often come and want their bank statements and have to fill a form, relating to the time period
for which the bank statement is needed.

Antimony laundering:

Money laundering means converting black money into white money. This department is also
responsible to keep a check on anti money laundering. State bank has automatic system of anti
money laundering. If abrupt transactions occur in it then this system takes notice of this.

The function of this department is to keep check on customers, by indirectly inquiring them
about the source of their money whenever they notice any abrupt transaction in his account.

Cases in which approval of area manger is necessary: In all the below cases, before
opening the accounts of person approval of area manager is necessary a person dealing in
metal business

34
  arm dealer
 politically exposed person(PEP)
 A person doing business of second hand auto parts.

OTHER TYPES OF ACCOUNTS

In bank Alfalah different types of accounts exist.

1) Individual account: Any individual or proprietor of business can open an individual

account at BAF. PLS (profit and loss sharing) saving accounts
can be opened with the minimum balance Rs. 5000/-
Requirements for individual account :
Following requirements has to be fulfilled for this account.
 Signature of customer on back of AOF.
 Mention next of kin (nominee)
 Name and A/C # of introducer.
 Verified sign of introducer.
 Customer signature admitted by officer.
 N.I.C photocopy attached.
 Letter of thanks.
2) Joint account: When different people want to or need to share a single account it is
called joint account. The names of persons are written on the title of A/C and on S.S.
card. Joint A/C cannot be opened by single person. Both persons have to sign on
cheques. When two or more person neither partner nor trustee open account in their
name is joint account.
Requirements:

 Sign of both customers on back of AOF

35
  Sign on joint A/C # mandate
 Name and A/C # of introducer
 NIC copies of both members.
 Mode of operation.

3) Business account: When the owner of the firm operating singly, open an in his term
name.
I) Soleproprietor Account: This account is for that person who has his own business of
the business he is one owner of the firm.
Requirements:
 Companies stamp
 Declaration of proportion companies’ letterhead
 NIC copy
 Verified signature of introducer.

II) Partnership Account: Account title will be the name of the partnership firm.

Requirements:

 Sign of customers on back of AOF. NIC copies of partners

 Partnership deed (certified copy) duly attested by notary republic.
 Partnership mandate (prescribed format)
 Companies rubber stamp

The A/C is opened in the firm name and all partners designate one or two persons to act behalf
of the partnership firm all acts of the firm jointly and severely.

III) Companies account:

 memorandum and article of association

 incorporation certificate
36
  form 29
 TNTcertificate
 company stamp
 resolution regarding account opening
 list of directors
 list of authorized signatories CNIC copies of all signatories

Dormant account: If an account is not operated in six months. It is called dormant

account.

Remittance department

‘’Remittance is transfer of funds from one place to another or from one person

to another.”

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Remittance is an important service provided by banks to customers as well as non-customers.
Since it is not a free service it is a source of income for the bank.

Parties involve in remittances:

Four parties involved in remittance:-

 Remitter
 Remittee
 Issuing Bank
 Paying Bank
 Remitter

Remitter:

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

Remittee:

A Remittee is also called the beneficiary, or the payee. The person in whose name the
remittance is made. A Remittee is also the one who receive the payment.

Issuing Bank:

The bank that sends or affects the remittance, through demand drafts, telegraphic transfers, or
Mail Transfers.

Paying Bank:

Paying Bank also knows as the drawee branch. The branch on which the instrument is drawn. It
has to make the payment (usually located in a different city country).
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Kind of remittances:

 Transfer within the branch

 Transfer from one branch to another
 Transfer from one bank to another bank in the same city
 Transfers from one bank to another bank in two cities.

Main transactions which are done in this department :

Four types of transactions are done in this department that is

 Customer-customer
 Customer -bank
 Branch -branch
 Bank -bank

These four types of transactions decide our instrument. For example If customers are from
same city, then check can be used. I.e. customer to customer transaction.DD and payorders are
known as manager check or banker check.

Instruments used in remittances:

 Demand Draft (DD)

 Pay Order (PO)
 Pay Slip
 Call Deposit Receipt (CDR)

39
  Telegraph Transfer receipt (TTR)
 Rupees Traveler Cheque (RTC)
 ICBA( inter branch credit advice )
 IBDA( inter branch debit advice )

DEMAND DRAFTS

Demand Drafts (DD) are a bill of exchange. It is an instrument in writing signed by the banker
containing an unconditional order to pay certain amount to or to the order of certain person for
payment on demand or otherwise as future determinant time.

If it is made through cheque than it is necessary that person must be account holder while in
case of cash any person can make. It is the most important instrument. It is used for payment
outside the city according to customers needs. We make a draft payable to customer at another
branch. It is then signed by the concerned person and it becomes a legal document.

It consists of four copies.

1) Original copy which is given to account holder.

2) DD advice is sent to the central branch.

3) Third copy is for reconciliation.

4) Last copy is sent to head office for reconciliation

We take this money from customers Dr and then Cr it to head office .and then head office gives
this money to concerned branch .and concerned branch debt the head office and Cr the
customer.

Purpose of DD’s:

40
As the name indicates DD is made on the request of the customer (which may or may not be
the account holder of the bank) in favor of another customer or party in some other city. Thus it
is a mode of payment used by one customer to pay another who must be residing in some
other city.

Parties involved in DD:

Parties involve in DD are

 drawer branch
 head office of drawer bank
 drawee bank
 sender
 payee

DD APPLICATION SLIP: On the DD application slip enter the

 Date
 Branch name
 Draft no. (which is entered after the computer entry) In favor of (the name of the person
or party)
 Drawn on (the city name and the branch code of BAL )
 Amount in words as well as in figures
 Commission charged is entered
 Signatures of the applicant are taken

Then it is signed by the in charge remittance and the customer deposits the money against this
slip. The DD slip is available with the attached forms

It was an old practice that bank alfalah draw DD’s for other banks also. But now they make
DD,s for their own bank.
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Charges for DD:

DD up to 1 million = Rs50 +FED (16 %)

This instrument is used more fluently for payment of companies.

Payment order

Pay order is also a bank instrument a bill of exchange. The pay orders are usually used for the
payment within the city. The pay orders issued from one branch of bank can only be drawn at
the same branch, that’s why it is generally referred to as Banker’s cheque. There is a separate
slip for the pay order application.
All the procedures for the pay orders are similar to the demand drafts except the charges and
the record keeping. The record of this pay order is maintained by the branch who make such
orders. it is a local payment. It is also known as banker check or manager check.

RECORD: No manual record of the demand draft is kept; only the record is saved in the
computer at the time of making the demand draft

Parties to PO (pay orders):

Following are the parties to a pay order:

i) Purchaser: Is a person, firm, company or local authority

ii) Issuing / paying branch: this issues / pays on presentation.

iii) Payee: is a person named therein

Differences between DD’s and pay orders:

 DD is for outside the city

 Here issuing and paying banks are different.
 DD is more convenient as compare to payment orders.
 While in case of PO it is with in the city here issuing and paying banks are same

42
  it is a local check so if a check is drawn at Karachi then for clearing it comes back to bwp
branch who draw that check and after that goes back to Karachi so it takes time .
 Bank Alfalah has counter files, registers, reports to maintain its records.

CHEQUE

It is simple, negotiable instrument. By the help of this instrument transactions occur between
two customers.

Types of checks:

 open check
 crossed check

Open check requires no stamping.

But if on the check, name of company is mentioned then stamping at back is required.

RTC (rupee traveler cheque)

This instrument is rarely used because of advance technologies of bank Alfalah. Due to online
banking now its easy to do online transactions rather than using this RTC.

If a person goes for traveling and can not take money with him then he can make RTC. it is
rarely used as a negotiable instrument.

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Advantage given by bank Alfalah : check of bank alfalah is payable from any of its branches.
Unlike all other banks bank alfalah gives this facility. So now RTC is rarely used.

Charges for RTC:

Minimum denominations for of RTC are Rs 1000.

TTR (telegraphic transfer receipt)

it is also used before online system. Like bank Alfalah this method is used when the sender
desires to send money urgently, in this case the sender request the manager of the branch to
issue TT. It is also used for the transfer of money to and from foreign accounts.

CDR (call deposit receipt):

It is normally used for biding. It is a written document issued by the bank on customer’s
request. It is presented by the organizations at the time of bidding or tenders.These
organizations present it instead of cash. Bank open cal accounts on the name of persons and
issue receipts to them against their security.

Pay slip

it is a true banker check. It is normally not used for doing transactions with customers. It is
used for transactions between bank and vendor. now a days only head office is using pay slips.
it is not using for bank to bank transactions. For this purpose of transactions bank alfalah is
using PO.

IBCA (inter branch credit advice)

It is used for the payment of cash to other branches of bank Alfalah. Four advices of IBCA are

 credit advice

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  responding copy
 copy to MO (main office )
 office copy

Credit advice and responding copy are sent to concerned branch. Office copy is kept by the
issuing branch and the remaining copy is sent to main office.

IBDA (inter branch debit advice):

It is used for collection of cash from other branches of bank Alfalah. Like Bahawalpur branch of
bank Alfalah wants to receive cash from Ahmed pur branch, so they make IBDA.

There are three advices of IBDA which are

 main advice
 debit advice
 office copy

Main advice is sent to head office, debt advice to the concerned branch and office copy is kept
by issuing branch.

CLEARING DEPRTMENT

CLEARING actually means the transfer of funds from one branch of bank to the other branch of
the same bank or the other bank on which the instrument is drawn, without involving cash
through State banks clearing house. The clearing department is responsible for the clearing of
all cheques that the bank receives daily.

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Types of clearing:

There are two types of clearing

 outward clearing
 inward clearing

Inward clearing: if check is received and funds are send, then it is known as inward clearing.

Outward clearing: if checks are send and funds are received from other banks then it is known
as outward clearing.

NIFT:

NIFT stands for National Institutional facilitation Technologies. Clearing House of SBP has
shifted a tiresome part of its work to a private institution named NIFT. NIFT collects cheques,
demand drafts, Pat orders, Travelers Cheques, etc. from all the branches of different banks
within city through its carriers and send them to the branches on which these are drawn for
clearing. After the branches approve the instruments drawn on them, NIFT prepares a sheet for
each branch showing the number for instruments and amount in its favor and drawn on it and
sends it to each branch. A similar sheet for each bank is also sent to clearing house of SBP
where accounts of banks are settled in the same manner. The instruments are collected from
the client.

Following things are checked.

• Cheque date (a cheque is valid for six months and it should not be post dated) title, Amount
in figures and words should be same

• There should be no cutting and overwriting on the cheque.

• Deposit should also match with the cheque

Basis for returning of cheques:

46
if any of the above thing is missed or not accurate, then checks are returned back without
clearing. Memo is attached with such cheques.If all things are verified, and then it is signed and
stamped by the concerned supervisor.

What type of work to do for inward clearing:

first of all bank receives instruments for clearing like checks or demand drafts that are drawn on
same branch .after stamping and recording in registers payment is made to the banks .

Stamps used for inward clearing:

Three stamps are involved for inward clearing which are

 crossing stamp
 clearing stamp
 payee’s account only

Here we check these three types of stamps.

If a cheque or any other instrument does not belong to bank’s branch, then they return it back
to NIFT. After doing stamping, clearing department verify signs. And after signing it, they check
amount in that particular’s person account. If he does not have that sufficient amount the
check is bounced. All things are cleared, bank throw the instrument in CCA (centralized clearing
account).

Banker take out that amount from person’s account and throw it in CCA. This process takes the
period of one day usually. This amount is in transaction. It is of no use both to the person and to
the drawee. It is an account of bank alfalah and has a basket type structure. Head office of bank
alfalah maintains this account.

Work done for outward clearing: customers submit the checks that are drawn on other
banks and branches.ank check and voucher these checks. After checking enter them into the

47
system. Then send them into NIFT. And finally after documentation payment is received from
other banks and paid to customers on whose behalf collection is done.

Outward clearing module: This module is used for outward clearing. It is a system in which we
enter checks.

Advantages of OCM:

In this bank temporary transfer money to other’s account. It helps in maintain the data.

Day ends: if cheques are passed and verified then money itself comes to the system. But if
checks are not passed then system pay backs the money.

CCA:

This is narrated as centralized clearing account. From here a bank takes or gives back money.
Head office is maintaining this account. By physical reports banks come to know that whether
the cheque is passed or failed.

Types of clearing

Clearing usually takes one day. There are some types of clearing like

Same day clearing:

Clearing which is done within the same day is known as same day clearing. Sometimes checks
are cleared within the same day. This usually happens when checks are above 2 laces. Below 2
lace checks are not cleared same day.
If there are traveler checks of Rs 10000 amounts, and then they can also be cleared same day. It
is to oblige customers.

For the checks which cleared same day, an additional stamp of same day clearing is required for
them.

48
Inter city clearing: This is between cities of same banks. Like branch of bank alfalah in bwp and
the other branch of same bank in Lahore.

Within city clearing: It is between branches in same city.

Term used in clearing department

Bundle cover: In this bank writes the summary of all that instruments which are returned by
bank on different bases. If bank return inters city checks then green bundle cover is used.

If bank returns with in city checks, pink bundle cover is used.

What are written on bundle cover?

 Stamping of respected bank

 No of instruments returned
 Total amount of checks that are returned.
 date
 Authorized sign by the concerned clearing supervisor.

Foreign trade department

49
Foreign exchanged department deals within exports and imports. Mr. Tahir at BAF supervises
it. The bank acts as exporter as well as importer bank for different parties who are in the
business of export and import.

Import: All goods and services brought into a country that were purchased from organization
located in other countries.

Export: All goods and services sent from one country to another country.

Both imports and exports are done here.

Things involve in imports:

 two persons are involved in imports which are

 Applicant
 beneficiary
 and a letter of credits

Applicant: a person who request for import. Applicant’s bank is known as advisory bank.

Beneficiary: person from other country like from u.k that send the things from there. Bank of
beneficiary is known as receiver bank.

Letter of credits: A letter of credit is a written undertaking by a bank (issuing bank) given at the
request and accordance of a buyer (the applicant) to the seller (the beneficiary) to a fact
payment up to a stated amount of money within prescribed time limit provided that the terms
and conditions are complied with. Letter of Credits issued in the international trade business it
is issued by applicant's bank. Two things are involved to open LC.

 sales contract
 performance invoice

Sales contract: in this conditions are prescribed to open an LC.

50
Performance Invoice: it is the summery of LC.

Types of LC:

 Sight LC
 DA

1. sight LC: after complete terms and conditions when benifacory sets the luggage at site ,
applicant at the time of receiving luggage pays the amount.(*site is decided in LC)

2. DA or Usance: Here applicant’s receives the luggage at port and takes time for credit.
Applicant receives the delivery and takes it on credit. Here applicant gives the payment on
maturity and applicant’s guarantee is given by his bank.

Documents required for LC application request:

 sales contract
 performance invoice
 LC application form
 customer portfolio
 LC on 100 % margin advance
 insurance by applicant

Documents required after issuing of LC:

51
Following are required from beneficiary after issuing of LC

 amount of LC
 tells about quality of imports
 tells about whether partial shipment is allowed or not
 certificate of origin
 BL( bill of lading for products which are given by ship )
 air way bill
 truck receipts ( by road )
 packing list
 performance invoice

Terms used in foreign exchange department:

UCP (uniform customer practices):

On the basis of these rules, LC is opened and imports exports are done.

FTT:

Foreign telegraph transfer: it is both inward and outward. Like in FFT inward money is received
from the person at UK to bank Alfalah and reversed is used for FTT outward.

FDD:

Foreign demand draft: Here bank issues that draft. We do tcs of that draft to UK.

For example like draft to universities

NOSTRO account:

Foreign account maintained in other bank like if bank Alfalah is maintaining its account in
other foreign bank.

52
Swift codes used for foreign transactions:

Swift code (Standard World Wide Inter Bank Financial Transaction) used by bank Alfalah for
foreign trade is ALFHPKKA085

Currency in which bank deals in foreign exchange department:

These are pond, dollar, euro, Australian dollar, JYP (Japanese yen).

Credit cards department

Bank Alfalah Limited offering credit cards with minimum markup and in wide variety in the
market. Markup rate that is charge is 2.50% after the 51 days of transaction. Bank Alfalah also
does not charge any annual fee and no charges when you avail credit card facility.

Types of credit cards: Bank Alfalah offering various varieties of cards:

 Classic blue 16000-25000

 Silver Card 25,000---125,000
 Gold Card 125000-499000

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  Platinum card 5lac-17lac

FEATURES:

Balance transfer facility:

Smart settlements offering an easy and convenient way to settle unsettled credit card payments
on all existing credit cards in Pakistan. Avail this facility at as low as 1.5%.

Cash advance facility:

75% of your credit limit now you can avail cash advance facility up to 75% of your available
credit limit. Enjoy the benefits of this exclusive offer on your Bank Alfalah credit card.

Step by step monthly installment plan:

1.25% p.m. only Now you can convert any transaction, amount of Rs. 3000 and above to a step-
by-step monthly installment payment plan. It gives you the flexibility to convert your large
payments into small equal monthly installments.

Free supplementary cards:

Offering the facility to acquire free supplementary cards for your family members. Avail this
card without any extra cost.

Fortunes:

Offering an amazing rewards program that let you earn points every time you use Alfalah Visa
card. Redeem the earned points anytime for fabulous gifts of your choice.

Discounts:

54
Offering discounts at wide range of outlets, selected especially to much your taste. You can
avail matchless discounts each time you charge your card at these outlets.

Insurance Cover:

Offering card members a range of features design to protect you and your family from the
setbacks of life, at very affordable rates.

Petro facility:

Offering you the facility that saves you the extra that you pay when you use Alfalah Credit Card
at all patrol pumps in Pakistan.

Unique benefits:

Bank Alfalah Auto Debit Service

This facility is specially designed for Bank Alfalah account holders. It gives the option of making
minimum or full payments through Bank Alfalah Savings / Current Pak Rupee account specified
on Alfalah VISA monthly statement.

Bank Alfalah Credit Cover:

Alfalah VISA offers card members a new and powerful protection against the uncertainties of
life. In the unfortunate even of prolonged illness, disability or death, it’s reassuring to know that
with Alfalah Credit Cover you have no cause to worry about your monthly credit card
repayments. Alfalah Credit Cover has a range of features designed to protect you and your
family from the setbacks of life, at rates that are affordable.

Bank alfalah gives cards to job holders and businessmen.

55
 Job holders

Further in job holders there are two categories which are

Government job holders

Private Job holders

Business: In this type cards are issued to sole proprietors and partnership businesses.

Documentation required for government jobs (salaried persons):

 Salary slip.
 NIC copy.
 2 reference (their names and CNIC numbers).

Criteria for job holders:

For government job holders a person must have minimum salary of 8000.below this salary bank
Alfalah will not offer credit cards to government job holder. Usually persons having salary of
around 8000 are issued classic blue card. And a person who earns maximum salary of 55000 or
above are given silver cards.

Documentation for private job holders:

 NIC copy
 Salary slip of current month
 Bank statement of last six months
 Letter of confirmation or letter of appointment
 2 references (names, NIC num, contact num )

Criteria for private job holders:

For private job holders bank make categories of companies .for example in category A bank
places multinational companies. And their criteria for type of card is calculated as Salary *2.5
56
Category B: national companies are placed in this category. And to decide which card is given to
them bank calculates its salary by applying limit of 2 like salary *2

Category C: Domestic companies are placed in this category and the criteria for giving card to
them is decided by calculating their salary with limit of 1.5 Salary*1.5

Documentation for business professionals:

For sole proprietorship:

 NIC copy
 Bank statement of last six months
 SP ship letter from bank
 Copy of business letter pad
 NTN (national tax num) certificate
 2 references (names, num, contact num)

These are documents that must be provided by sole proprietors. How cards are issued to sole
proprietorship: here to decide the type of card bank observes bank statements of last six
months. And in this it considers 6 transactions per month. Three transactions are from
maximum and three minimum transactions. Then divide them by 6.and in this way it calculates
average of last six months. Then multiply it with 1.75.

Documents required for partnership business:

 Copy of Nic
 Bank statements of last six months
 Partnership letter from bank
 Copy of partnership department
 NTN certificate
 Business letter pad
 2 references

57
  Criteria for partnership :
 Criteria for giving cards for partnership business decide on the number of shares.
 i.e. :% of applicant share/no of shares *1.75times
 Minimum average criteria for business concern must be 25000.

Repayment duration of credit cards:

Repayment duration of credit cards is 51 days.

Grace time: But if the person is unable to pay with in this duration, then bank alfalah provides
extra grace time of 21 days for repayment.

Merchant acquiring department

This also comes under the consumer finance department of bank Alfalah.It is also known as
technical department.

The purpose of this depar6tment is basically to install machines known as merchant acquiring
machines at different outlets. Employees go to the outlets, they visit different outlets and which
they find suitable according to their requirements they install machines in that outlets.

Bank Alfalah does not have large number of requirement from the owners of the outlets. It only
requires that the account of the owner must be with any business name irrespective of the
bank. It is not necessary that he should be the account holder of bank Alfalah.

58
For customers these machines create facility to pay their bills through credit cards by using this
machine. Without any difficulty they can pay their bills at outlets. Here also it’s not necessary
for a customer to be the account holder of bank alfalah. Any person can avail this facility. But if
the account is in bank Alfalah, and then it’s easy to transfer funds.

Charges for installation of merchant acquiring machines:

Service charges applied are 2.5%service charges + FED bank charge these charges from
merchants. These charges are recently revised by bank and now they are increased up to 2.9%
service charges.

If the customer of other bank wants to avail this facility of paying bills by using these machines,
then bank Alfalh requires following documents of that customer.

Auto debit cards

CNIC forms

CNIC signatures

Categories to which merchant acquiring machines can be given:

This facility can be provided to three categories which are

Sole proprietor

Partnership

Pvt limited company

Requirements of Documents:

For sole proprietor:

59
His name

Business name

Id card number

Account number

For Partnership:

Partnership deed

CNIC number

Authority letter on which one person gives authority on behalf of all partners

For Pvt limited company:

Memorandum of association

Article of association

Form A

Form 29

Daily activities of merchant Acquiring Department:

Employees in this department have to sign new agreements.

They do visits on daily basis.

They install machines on outlet after completion of all requirements by the owners.

They guide merchants for national and international cards.

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 Car Financing

Car financing has become one of the most selling financial products of almost all banks.
People prefer getting their cars financed rather than paying upfront because it is convenient
and lessens the burden of paying a huge sum of money upfront. It finances two types of cars

 For Pakistani cars 20 % down payment

 For other cars 25% down payment

Rate of interest is 17- 18 % per month but it fluctuates on the basis of kybor rate. This rate is 2
or 3 % more than kibor rate. Maximum duration is 5years and minimum is 1 year

Benefits and features:

61
  Quickest processing.
 No hidden charges.
 Minimum down payment.
 Complete repayment at any point of time.
 Tenure period ranging from 1 to 5 years.
 Financing of all brand new locally assembled vehicles and used cars.

Financing limits ranging between Rs. 200,000/- to Rs. 2000, 000/- for brand new car.

Insurance:
Renowned and reliable Insurance companies are offering the competitive rates
of insurance. Pay year insurance premium in advance {at the time of down
payment} and the remaining in the subsequent equal monthly installment.

Easily affordable installments on monthly basis in the form of post-dated checks will set you
free of depositing your rental checks every month.

Security: Hypothecation of vehicle in the name of Bank Alfalah Limited.

You Can Act As A Co-Borrower: Acting as a co-borrower will enable your family members
{spouse, children- 18 year and above} to avail the financing facility and get the car registered in
their names as well.

Documentation:

 Two passport size photographs.

 Copy of National ID card.
 Bank statement for the last six months.
 Salary certificate {for salaried individual}.
 Business proof {for a business person}.
 N.T.N Certificate.

62
  Co-borrower’s NIC copy {if the car is to be in the name of the co-borrower}.

Eligibility:

You can get a car loan form Bank Alfalah to purchase a brand new car if you are:

 Pakistani National Identity Card holder.

 Over 20 years of age (Maximum 60 years in case of salaried and 62 in case of a business
person at the time of maturity of the loan).
 Salaried, businessman or self employed.

AGRI FINANCE

Bank Alfalah Limited acknowledging the vital role of a agriculture in the economic development
of Pakistan has designed Rural Finance Program named as "BANK ALFALAH ZARIE SAHULAT".
The product is designed to cater for multiple financing requirements of our farming sector.

Bank cares about their customers through chain of complete, distinguished and specialized
products for agriculture sector. BAL Branches are designed to help the farmers with expert
advice, technical know-how and Credit for their multifarious activities through timely,

63
affordable and attainable modes to suit farmer requirements. BANK ALFALAH ZARIE SAHULAT is
available for Short, Medium and Long terms.

Bank Alfalah Limited Strategy is to focus on following Objectives:

 Provide reliable infrastructure for Agri customers.

 Help farmers utilize funds efficiently and effectively.
 Provide farmers an integrated package of credit, supervision and technical know-how.
 Bank Alfalah Limited is committed to make dreams come true by making Pakistan's
Rural Economy healthier and stronger.
 Products:

ANK ALFALAH'S ZARIE SAHULAT offers finance facilities covering entire spectrum of Farm and
Non-Farm activities both for production and development purpose. Bank alfalah offers
following wide range of Agri Finance Products to encourage farmers to increase farm
production.

 Alfalah Paidawari Zarie Sahulat

 Alfalah Musalsal Zarie Sahulat
 Alfalah Tractor and Transport Zarie Sahulat
 Alfalah Machinery & Equipment Zarie Sahulat
 Alfalah Aabpaash Zarie Sahulat
 Alfalah Islah-e-Araazi Zarie Sahulat
 Alfalah Poultry Zarie Sahulat
 Alfalah Dairy & Livestock Zarie Sahulat
 Alfalah Fisheries Zarie Sahulat
 Alfalah Silos/ Storage Zarie Sahulat
 Alfalah Marketing Zarie Sahulat
 Alfalah Agri Industrial Zarie Sahulat
 Alfalah Bills /Guarantee Zarie Sahulat (for grower’s corporate clients only).

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  Alfalah Lease Zarie Sahulat

Eligibility:

Bank Alfalah facilitate all categories of farms individuals / corporate entities engaged in Agri
production, processing, packing, transportation, marketing, storage and export of Agri farm
commodities as per list of eligible items prescribed by State Bank of Pakistan. The eligibility
criteria observed while extending Agri finance to farmers under various products of Bank
Alfalah Zarie Sahulat is:

 The applicant is an individual /entity engaged in Agri activities identified in the foregoing
paragraph.
 The applicant is not a defaulter of the banking system.
 The applicant must be able to produce proper securities pass book acceptable to the
Bank.
 The applicant (individual / entity) shall be Pakistani / registered in Pakistan. The
minimum and maximum age shall be 18 years and 65 years respectively (upper age limit
relaxation considered on case to case basis).
 Other criteria considered necessary on case to case basis.

The purpose of documentation is to bind the contracting parties to properly designed terms
and conditions to secure the interest of the Bank in ensuring that the return to Bank of the
money lent by it to farmers is fully safeguarded. Therefore, a security and support document
has to be completed in all respects.

Documents checklist: The following documents are required by BAL for Agriculture financing.

 Copy of CNIC.
 Rural Finance Application form which is available at Bank Alfalah Branches / Website.
 Pass Book issued by Revenue Authority.
 Copy of Khasra Gardawari (if applicable).
 Proof of leased in land (if any).
65
  Other documents as required according to nature of finance / security on case to case
basis.

Accounts department

It is one of the most important departments of bank alfalah. The use of the computer system
increases the efficiency and pace of the bank’s work. Following activities are carried out in the
accounts department.

Reports:

It generates reports like statement of account activity (a report on the activity of all accounts at
bank Alfalah in a particular branch), statement of affairs (a report on the assets and liabilities of

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bank), statement of foreign exchange (a statement on the foreign exchange currencies at the
bank) and statement of profit and loss (a report on the income and expenditures of bank ).

These reports can be generated at daily, weekly, monthly, quarterly or yearly basis as required
by the bank.

Income and expense:

T he department also needs to calculate the revenues and expenses, control expenditure and
forecast every month.

Budget:

Formulation of yearly budgets and targets in consultation with the branch manager is also done
by the accounts department.

Activity checking:

This department also has to check daily activities and there are four stages in which activity
checking takes place:

 Collecting vouchers
 Storing vouchers
 Checking activity
 Packing

Collecting vouchers:

The first stage of activity checking is collecting vouchers, cheques, DD’s, pay orders, pay slips
from all departments of bank. Mainly vouchers come from the operations department. After

67
collecting these vouchers etc from the departments, accounts department needs to check it if
all stamps are on these vouchers etc.

Sorting vouchers:

After al vouchers are collected they need to be sorted into different categories like income,
head office, online vouchers etc.

Packing: after the activity is checked, all sorted vouchers are counted, both debit and credit and
then they are packed by totaling the vouchers.

Credits department

The credit department of bank Alfalah deals with both SME’s and corporate clients. There are
two major categories of credit line facilities which bank Alfalah is currently providing to its
customers .These are

 Funded credit line facility

 Unfunded credit line facility

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Funded credit line facility:

There are three major products that come under the funded credit line facility:

 Current finance
 Karobar finance
 Milkiat finance

Current finance: it is a short term facility mainly provided to customers. It provides the
customers with the funds over a period of time, mainly one year. The main advantage of the
current finance is that markup is only charged on the utilized part of the finance facility and is
mainly used by companies for their working capital management. The bank provides this facility
against a security, mainly a mortgage property and provides 60% of its assessed value as a fund.

Karobar finance:

Alfalah karobar finance is another short term facility that is only provided to individuals and
sole proprietors. This facility also has one year validity with markup charged on amount used.

T his facility is again provided to individuals to maintain their working capital management and
is given against security.

Milkiat finance: Alfalah malkiat finance is a long term facility that is provided to both SME’s
and there are four types of facilities that are provided in this category:

Acquisition of rented commercial/industrial property

Construction on an owned commercial/industrial plot

Purchase of a commercial/industrial property

Renovation of owned commercial property

Procedure for malkiat finance:

69
All documents are gathered from the customers, and then they are sending to the CIB, which
sends a CCIR to the bank. Other forms of verifications also take place in this process. Later a
valuation is done of the property to see how much financing can be provided. After the
valuation process is complete, a CPL is made by bank which with overall documents is sent for
approval to the area office. When the area office approves the application, the customer is
called into the bank to give the security papers to the bank and also get all legal documents are
signed and the money is transferred to the bank.

Unfunded credit line facility:

There are two types of unfunded credit line facility which are as follows

 Letter of credit
 Letter of guarantee

Letter of credits:

A letter of credit is written undertaking by a bank (issuing bank )given at the request and
accordance of a buyer( the applicant ) to the seller(the beneficiary )to a fact payment up to a
stated amount of money with in prescribed time limit provided that the terms and conditions
are complied with.

Letter of guarantee:

Letter of guarantee is a guarantee that a bank gives to the organization on behalf of the bank.
Letter of guarantees are mainly used when the tender of as specific job is filled by a customer.

Process for LC’s and LG’s:

It consist of following steps which are

 A request letter for the facility is received by the bank.

 Al documents pertaining to the facility are received.
 Documents are locked over by the lawyers.

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 CCIR is received from CIB.
 A CPL is made.
 Borrower’s basic fact sheet is made.
 Credit facility application form is filled by the customer.
 Documents are sent to the area office for approval.
 Documents relating to the security are kept by the bank.
 Letter is issued to the customer.

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72
73
74
75
76
77
78
Ratio analysis:

Current assets:

Current assets =current assets/current liabilities

Years 2005 2006 2007 2008 2009

Current 6.42 4.61 1.99 3.29 2.98
assets

0
2005 2006 2007 2008 2009

Interpreta
tion:

This ratio describes the relationship between current assets and current liabilities. This ratio
was high in 2005 then in 2006 it decreases at low rate and decreases very much in next year
and after that it again fluctuates between high and low levels.

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Debt ratio:

Formula = Total Liabilities /Total Assets

Years 2005 2006 2007 2008 2009

Debt ratio 97.14% 95.71% 94.73 % 95.17 % 94.43%

97.50%

97.00%

96.50%

96.00%

95.50%
debt ratio
95.00%

94.50%

94.00%

93.50%

93.00%
2005 2006 2007 2008 2009

I
nterpretation: It describes the relationship between total liabilities and total assets .it was
high in 2005 then it goes up and down with a stable rate. From graph it is shown that there are
not very high fluctuations of values during last years after 2005.

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 Debt equity ratio

Formula: long term debt/total capitalization

Years 2005 2006 2007 2008 2009

Debt equity 33.76% 24.8% 17.7% 15.05% 28.8%
ratio

40.00%

35.00%

30.00%

25.00%

20.00%
Column2

15.00%

10.00%

5.00%

0.00%
2005 2006 2007 2008 2009

Interpretation:

It shows the relationship between long term debt and total capitalization which consist of long
term debt and owners equity. It shows downward trend from 2005 to 2008.it was at its peak in
2005 but gradually started declining. Again it is increasing in 2009 with value of 28.8%.

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 Total assets turnover ratio

Formula= Annual sales/average total assets

Years 2005 2006 2007 2008 2009

ratio 3.5% 3.31% 4.31% 3.69% 3.39%

4.50%

4.00%

3.50%

3.00%

2.50%

2.00%

1.50%

1.00%

0.50%

0.00%
2005 2006 2007 2008 2009

Interpretation:

It describes the relationship between sales and average total assets. It increases in 2007 and
after 2007 in very next year but in all other years graph show almost equal values with minor
fluctuations in points.

Fixed assets turnover

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Formula=Annual sales/total fixed assets

Years 2005 2006 2007 2008 2009

Fixed assets 3.73% 3.80% 4.61% 4.31 % 3.89 %
turnover

5.00%

4.50%

4.00%

3.50%

3.00%
fixed asets turn over ratio

2.50%

2.00%

1.50%

1.00%

0.50%

0.00%
2005 2006 2007 2008 2009

Interpretation:

It shows the relationship between sales and fixed assets .From graph it is shown that it was high
at 2007 and 2008. Over all it shows increase from 2005 till 2008 but in 2009 it starts decreasing.

Net profit margin

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 Formula: net profit/sales*100

Years 2005 2006 2007 2008 2009

Net profit 18.55% 15.49% 27.01% 0.03% 0.76%
margin

30.00%

25.00%

20.00%

15.00%
net profit ratio
10.00%

5.00%

0.00%
2005 2006 2007 2008 2009

Interpretation:

It shows the relationship between net profit after taxation and sales. The maximum ratio was in
2007 but overall it shows decreasing trend from 2005 to onward 2009.

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 Eps of c/s

Years 2005 2006 2007 2008 2009

Eps 2.98 2.92 4.38 0.03 0.08

4.5
4
3.5
3
Eps
2.5
2
1.5
1
0.5
0
2005 2006 2007 2008 2009

Interpretation:

This ratio shows the earning per share of the bank. Earning per shares were maximum in 2007
but after 2007 eps goes very down.

Return on investment

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Formula = average profit/average operating assets *100

Years 2005 2006 2007 2008 2009

Return on 1.19% 0.90% 1.98% 0.079% 0.14%
investment

2.00%

1.80%

1.60%

1.40%

1.20%

1.00% ROI

0.80%

0.60%

0.40%

0.20%

0.00%
2005 2006 2007 2008 2009

Interpretation:

It shows the relationship between average profit and average operating assets. In start from
2005 it was decreased and it was high in 2007 but again it showed decreasing trend in next
year. In 2009 this ratio increased little bit as compare to previous year ratio.

Return on equity:

Formula: net income/owner’s equity*100

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 Years 2005 2006 2007 2008 2009
ROI 20.29% 13.59 % 23.5 % 0.076% 0.54%

25.00%

20.00%

15.00%

ROE

10.00%

5.00%

0.00%
2005 2006 2007 2008 2009

Interpretation:

This shows the relationship between net income and owners equity.from 2005 to 2009 it
bshowed decreasing trend. But in 2007 it was high as compare to other yeares ratio.and it was
very low in 2008.

Return on deposits

Formula: net income after taxes/total deposits

Years 2005 2006 2007 2008 2009

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 Return on 0.60% 0.59% 0.02% 0.000914 % 0.03%
deposits

0.60%

0.50%

0.40%
ROD
0.30%

0.20%

0.10%

0.00%
2005 2006 2007 2008 2009

Interpretation:

This ratio shows relationship between net income and total deposits. It shows decreasing
trend. It was very low in 2008 but after 2008 it showed little increase in next year.

Cash to deposit ratio

Formula: cash/total deposit

Years 2005 2006 2007 2008 2009

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 Cashb to 11.1% 11.6% 10.7% 10.8% 10.7%
deposit ratio

11.60%
11.40%

11.20%
11.00%
10.80% cash to deposit ratio

10.60%
10.40%
10.20%
2005 2006 2007 2008 2009

Interpretation:

This ratio shows the relationship between cash and total deposits of bank.it shows increase in
starting years but in 2007 it started declining and after 2007 this ratio did not show much
increase or decrease.

SWOT ANALYSIS

Strengths:

 Wide network of branches:

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Bank Alfalah has wide network of branches operating in almost every city of Pakistan. It has
its braches not only in large but also in smaller cities and places. Due to this large network
they cover a lot of portion of cash transactions easily and make their costumers satisfied.

 Good relationship with costumer:

Management of bank Alfalah believes in costumers satisfaction and maintain good

relationship with costumers by providing them the excellent services and satisfying their
requirements. Costumers of bank feel proud to be holders of this bank.

 Management of bank Alfalah consists of highly skilled and experienced people. They
know how to accomplish their tasks and goods. During my internship I found the staff
members were very dedicated to their work and every member dealing in different
departments is experts in skills related to his own department.

 Credit card facility:

BAL is providing credit card facility at very low rates as compare to

other banks. Credit cards are provided to costumers along with a lot of benefits that a
costumer actually wants in any credit card facility.

 Merchant acquiring machine is also working under credit cards department of BAL. this
service is also providing facility to costumers for paying bills at any shops or large plazas.
BAL is providing merchant acquiring machine to different shopping malls franchises for
the ease of costumers. By the help of this machine costumers find it easy to pay their
bills by using cards.
This facility is even also provided to the costumers who are not the account holders of
Alfalah and who are not having cards of this bank.
 Bank Alfalah is on the top level among all banks that are providing car finance facilities.
Due to its better services, efficient management and trustworthiness people fed
satisfactory to lease cars from the bank

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 Foreign trade is the main focuses of bank Alfalah .For imports and exports people
perceive it as Ideal bank.
 Bank Alfalah is providing and delivering innovative products to customers.
Management focuses the customer needs and came up with many innovative
products and services that give the bank a competitive edge over other banks.
 There is continuous value addition in the products and services of bank Alfalah. By
the laborious efforts of top management and its employees, image of bank Alfalah
is increasing day by day.
 Numbers of individuals and corporate entities that feel comfortable while dealing
with bank Alfalah limited is increasing on daily basis.
 Its consumer finance facilities are more superior as compare to its competitors.
 All activities performed by the bank are of high quality and it creates good image in
the mind of customers.
 Bank is providing Halal banking services. It operates its functions on Islamic mode of
financing. Halal banking follows traditional Muslim laws.
 It has humble and widely experienced management.
 Bank obliges its customers by maintaining good relations with them and providing
them the services up to their satisfaction level. Staff members deal politely and in a
nice way with customers, they deal their customers without creating any
differences. They accommodate their all customers in a well behaved manner.
 A well organized proper working accounts department is also present not only in
head office of bank but in every branch of bank Alfalh.
 Priority banking department is also introduced in bank Alfalah. Units are established
in different cities. Bank establishes this department to satisfy and to facilitate
customers.
 Royal banking debit cards are introduced by bank alfalah. Customers having this
card will be considered as business class officer. They can use it all over the world in
more than 130 countries.

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  There is complete coordination among staff members and branch manager.
 BANC ASSURANCE:
It is a sort of insurance which is provided to customers. Bank Alfalah is the only bank
providing this insurance to customers. This includes insurance regarding education
of kids, marriage of kids, pension programs after retirement and investment
program. It is given on yearly basis.
 For learning of employees and to enhance their skills bank Alfalah has
established website for training of employees.

Weakness:

 Online banking:
Bank Alfalah does not have faster banking services due to its less efficient computer
and I.T system. Due to this still it is not prominent in foreign banking industry.
 Due to lack of advertising in electronic media people are not well aware about the
products and services of bank Alfalah.
 Foreign banks still requires same time to be prestigious in the market.
 Employees are over loaded with work. There is uneven distribution of work.
 Bank online chares are usually high as compare to their competitors in market.
 It is still not in the list of high automated banks due to its lacking of in computerized
control.
 There is a lack of research cell in bank Alfalah.A proper research cell should be formed
at bank to gather information about the activities of the competitors.
 There is lack of proper job rotation. Job rotation adds value to every single employee as
it enables a person to perform variety of jobs related to banking profession. But Alfalah
is lacking of this job rotation.

Opportunities:
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  Now a days banking is the faster growing industry in Pakistan. Bank Alfalah has the
opportunity to expand its network of branches.
 It has the opportunity to operate its branches all over the country.
 Due to changing aptitude of people towards Islamic mode of banking, Alfalah has the
opportunity to expand its Islamic banking. Due to Islamic mode of banking it can capture
Islamic minded people.
 Alfalah is introducing innovate products and services. It has the opportunity to excel in
market by focusing more on quality and innovation.
 Bank Alfalah has the opportunity to establish foreign branches.
 Government is continuously emphasizing the importance of I.T and introduces different
training programs regarding I.T. It is the best time for Alfalah to improve it self in I.T and
modern technologies.
 Islamic banking is growing in the western world, so bank Alfalah has opportunity to
expand beyond the Middle East into markets in the United States and Europe in order to
offer Halal banking.
 This bank is good opportunity to learn and earn.
 Globalization has become one of the important factors for business organizations in
order for their survival. Bank alfalah should establish foreign branch network if they feel
that they have a strong hold in Pakistan.
 Alfalah is still an unattractive bank for multinational corporations. It should develop
strong relationships with multinational corporations. This will bring lot of opportunities
for its success.

Threats:

 Bank alfalah is facing tough competition not only from higher ranking banks such as
AMN amro, standard chartered but also other private banks are giving tough time to
Alfalah. They are competing it with their policies, innovative products and procedures.

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 So bank Alfalh is facing serious threats from not only high rates banks but also from its
same rank banks.
 Foreign banks are operated at very limited places in Pakistan. Their branches are not
located in far off cities. But the products and services they are offering are far better
than bank Alfalah. They offer better products, personalized services and desired interest
rates. So if these foreign banks expand their branches all over the country then bank
alfalah will definitely goes down in the market. Unless and until it also rises its products
and services level up to the mark of those foreign banks.
 Not only from foreign banks bank alfalah can also face a threat from state owned banks.
Because state owned banks like national bank, Habib bank has a huge network of
branches and they are backed up by government. But their employees are not so
motivated. If due to some changes in their corporate and managerial level strategy they
can improve their employees strength and change them into human capital, then bank
alfalah will definitely loses its high position and will face threats from these state owned
banks.
 If due to inconsistent government policies, drastic changes in economic policies occur
and if taxation rates increases it will lose the confidence of sponsors of bank alfalah to
invest more in this bank. So bank alfalah might face a threat of finance to run the
organization smoothly and more effectively.

Suggestions and Recommendations

Job rotation must be there to enhance the skills of employees.

There must be proper division of work and management of time so that employees feel
comfortable in working with this organization. They do not need to spend all their time till
nights in bank. Due to lack of proper management of time the employs are de motivated, do

94
not able to give proper attention to their work and perform their duties with out showing
interests. So there must be proper management of time.

Administration drawbacks should be improved by the strict control of general issues.

Bank Alfalah should properly advertise and communicate about the product and services it is
offering so that the people are attracted more towards this organization.

If it does not do proper advertisement on electronic media especially on televisions which is a

big source of communication for people, they will get confused about its products so it should
properly advertise its services.

Audit should be done internally or it should have an audit department that performs the audit
on daily basis to keep check on daily activities.

A proper IT department should be established in all branches with professionals having a

proper knowledge to maintain a secured connection with other banks.

It should develop and maintain an effective online connection between different branches for
effective communication.

Workshops should be conducted to train employees in all aspects of banking. Work shops
should not be conducted in big cities; it should be conducted in every city having branches of
bank Alfalah. If possible joint workshops are conducted with other banks to enhance the skills,
expertise and exposure of employees. By conducting workshop with other banks, through
competitive intelligence the employees can also come to know about the policies and strategies
of other bank.

To motivate employees’ incentive schemes should be introduced like personal loans,

scholarship programs, car financing facilities for all rank of employees. These incentives will
help to motivate employees towards work and they perform their duties more efficiently.

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Award system must be present to award employees on their performances at branch and
regional levels. These awards enhance the employees towards work.

There should be proper management in hiring of employees in different departments. Because

there are some departments that are overloaded with employees and some departments are
having lot of work but number of employees is less. So operations manger should properly
adjust employees in different departments to avoid in efficiencies.

There should be a proper prayer room for employees so that those who want to offer their
prayers can find a proper place for prayer. There should also be a common room for employees
to spend their free time in a relaxing environment.

Online service charges should be reduced to attract more customers.

Proper customer feed back should be taken on continuous basis through feed back desks.

Conclusion

I have completed my six week internship in bank alfalah. During my internship I observed the
environment and practical work there. During my internship I was rotated in different
departments of bank alfalah.

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In my first week of internship I was placed in account opening department. This is one of the
main departments of bank alfalah. Here In the supervision of mam Fatima I learned many things
related to this.

I learned lot of activities like checking of all filled application forms, noting down the missing
documents, filling the application kit of the department which includes application forms,
account opening forms. In this department I was supposed to guide customers about how to fill
their application and account opening form. I was also asked to check down whether the
customer has signed the application forms and all the relevant forms.

During my period inn this department I gained lot of confidence. This department provided me
the opportunity to build my confidence, enhance my skills of communication. Besides learning
technical work, I also came to know that how much customer dealing is important for bank and
how it adds value to the bank. I realized this that there is lot of difference between practical
and theoretical knowledge. Here practically we have to work very carefully so that we can
perform our work efficiently and can be able to satisfy customers.

I also worked in remittance department under the supervision of Mam Sana. My work during
this period was about to deal with` demand drafts and pay orders observed that how demand
drafts and pay orders are deal by the concerned supervisor, how we can make their entries in
registers. Now a days most entries are done by using modern tools like computers but even
than for entries of pay orders sometimes registers are used also helped Mam to fill out DD’s
and pay orders also came to know that after they are formed they are sent to operations
manager for final signatures.

While dealing with these instruments there were DD’s and pay orders on which some
requirements were missing. I attached memos with such instruments.

After remittances I spent days in clearing department. Here I observed that how cheques and
other instruments are cleared .I was provided information about the types of clearing that both
inward and outward clearing is being done in this department. I observed the complete process

97
of clearing checks. Before doing internship i have read many times about clearing of checks but
were not having any idea that how checks are cleared but by working in this department I came
to know.

Checks and other instruments were brought by NIFT in morning and after clearing they were
sent back to different banks and branches by NIFT. In the same way cheques were also sent by
bank alfalah to other banks for clearing. Clearing is a simple process which involves the transfer
of funds from one branch to another without involving cash.

I observed there that as different instruments were received for clearing the person dealing in
this department started checking those checks or instruments that whether all requirements
are complete or not. I also helped him in checking those instruments like I checked the date,
checked that deposit should be same as mentioned on the cheque .After completing this
process with the assistance of concerned supervisor i have learned stamping on those cheques.
I was told by him that how different stamps are used to clear different cheques. Cheques which
were not according to requirements were not stamped and returned back to the NIFT by the
supervisor.

Here in this department I came to know about it. NIFT stands for National Institutional
facilitation Technologies. Clearing House of SBP has shifted a tiresome part of its work to a
private institution named NIFT. NIFT collects cheques, demand drafts, Pat orders, Travelers
Cheques, etc. from all the branches of different banks within city through its carriers and send
them to the branches on which these are drawn for clearing. After the branches approve the
instruments drawn on them, NIFT prepares a sheet for each branch showing the number for
instruments and amount in its favor and drawn on it and sends it to each branch. So overall
working in this department was nice experience and I gained much knowledge about clearing
instruments.

During my internship I also spent time in credit cards department. This department in bank
alfalah deals with the marketing, sales and issuance of credit cards. Bank Alfalah Limited
offering credit cards with minimum markup and in wide variety in the market. Markup rate that
98
is charge is 2.50% after the 51 days of transaction. Bank Alfalah also does not charge any annual
fee and no charges when you avail credit card facility.

Types of credit cards:

Bank Alfalah offering various varieties of cards:

 Classic blue 16000-25000

 Silver Card 25,000---125,000
 Gold Card 125000-499000
 Platinum card 5lace-17lace
 Here I observed that how marketing operations are performed in a bank. I learned that
how to deal with different customers, how to convince them and how to make them
satisfy with the desired products. At the time during my internship there this
department was little bit down, facing low sales. But an overall working of this
department is very smooth and effective.

Merchant acquiring department is also working under this department. Bank alfalah has
installed many merchant acquiring machines on big shopping malls and plazas. These machines
are installed by the person dealing in this department observed their daily activities during my
week there. The employees had to visit different outlets; they do agreements with the owners
and then make a complete report and sent it to the head office. After approval from head office
they installed machines in those particular outlets.

I have learned from this department that bank alfalah has very efficient employees who have
convincing power and who have the ability to attract customers towards their products.

The main focus in bank Alfalah is on foreign exchange department. I spent some days in this
department also. I have learned that imports and exports are done here. I came to know that
how LC are opened here. I got familiar with all the documents that are required to open and
issue LC.

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A letter of credit is a written undertaking by a bank (issuing bank) given at the request and
accordance of a buyer (the applicant) to the seller (the beneficiary) to a fact payment up to a
stated amount of money within prescribed time limit provided that the terms and conditions
are complied with. Letter of Credits issued in the international trade business it is issued by
applicant's bank. Two things are involved to open LC

 sales contract
 performance invoice

Sales contract: in this conditions are prescribed to open an LC.

Performance invoice: it is the summary of LC.

Accounts department is the back bone of the bank because the record of all revenues and
expenses are treated here. The exact record of assets and liabilities are also kept and
maintained by this department. It is responsible for preparing budgets. It prepares forecasted
budgets and then compares them with actual budgets and observes differences in actual and
budgeted budget.

In credits department I came to know that how loans are given to customers and how credit
proposals are prepared by this department.

Agri finance department is designed for rural finance programs observed that it offers loans to
farmers, their main product named as bank alfalah zarai suhalat is designed for multiple
financing requirements of our farming sector. This department provides valuable loans to
customers. The concerned supervisors in agri finance also provide valuable information to
farmers. It makes its maximum effort to make their customer’s dream true by offering
distinguished products, experts advice and technical knowledge.

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Car financing is one of the renowned products of bank alfalah. It comes under consumer
finance department. I observed here that bank alfalah provides facilities to customers and
enable them to own desired cars at easy and affordable installments.

I observed that many people come here for taking car on easy installments. People dealing in
this department are very cooperative and they treated their customers in a good manner.
Customers are given full attention by them. They are providing with all the information and try
their maximum to9 solve their problems.

Bank Alfalah also offers phone banking facility to all customers on a countrywide basis.
Customers can dial the specified number provided by bank without any city code from their
respective cities. They can enjoy phone banking service any time whenever they want.

Alfalah ATM network is now improved more to met the latest challenges. Now with the help of
hilal cards customers can withdraw cash, can make a balance inquiry, can get instant print out
of their account balances, can get print out of their latest transactions on the spot, can change
their pin.

Alfalah is introducing ATM facility at almost all possible and convenient locations all over the
country.

By working in bank Alafalah and by observing working environment in different departments I

came to know that it is a very good organization. This organization was initially started its
operations at very low level with little infrastructure and they were having very les space to
operate their functions. But now with the passage of time, it has proved itself as one of the
leading organization in banking sector.

It is making progress everyday. By providing best services and products to its customers, it’s
increasing its market value and attracts large number of customers towards itself.

Bank alfalah is a good organization. An organization is a deliberate arrangement of people to

accomplish some specific purpose. Each organization has a distinct purpose and it expressed its

101
purpose in the form of goals or set of goals that an organizations strives to achieve. Bank alfalh
has also lot of goals to achieve and to become the successful organization. People are the asset
of an organization. Employees working there are considered an important factor in achieving
goals. Due to this bank alfalah gives due importance to its employees by providing many
facilities and encourages them to work hard. Structure of an organization is also an important
factor to achieve goals. Bank alfalah has well organized structure in which every employee feels
comfortable and works hard to achieve overall goals of the bank.

i observed during my internship that employees of bank alfalah are very hard working and
efficient. Their employees are very devoted and committed to their work. To make their bank
successful among other competitive banks, they work hard and some times for long hours,
more than their duty hours to make their bank a best bank.

I observed that working environment in bank alfalah is very friendly. Employees work in a very
comfortable environment. All of the employees are very cooperative. Instead of leg puling and
jealousy they work in a comfortable atmosphere.

Behavior of senior executives with their employees is also very good and cooperative. Senior
executives and managers behave with their employees in a good manner. They believe in
keeping good relationship with employees. They provide them confidence and encourage
positive comments and suggestions from their side for improving the organization. Senior
management also takes suggestions from employees at low level. And in this way new and
innovative ideas are generated by the organization.

The main thing which I observed very keenly is that bank alfalah gives due respect to its
customers. They deal their customers with full respect and honor. during my internship in bank
I noticed that whenever any customer come to bank, employees treated it in a well behaved
manner and try to make him satisfy by proving proper information and providing them what he
wants. Customers of bank alfalah usually feel satisfy from the services and products of bank
alfalah. They feel proud to be the part of this organization.

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Bank alfalah has continued its upward climb in the pursuit of excellence. Backed by Abu Dhabi
group it is continuously improving its products and services. They are introducing those
products that besides providing profits and generating revenues also satisfy their customers.
With in a short span of time bank has carved a significant niche for itself in the banking
industry.

Efficiency of work in bank alfalah has improved as compare to previous performance. And it is
still improving its efficiency of work. All the work is done on computers. Modern systems are
provided to every employee in each department so that they work more efficiently. Like in
every department for example in account opening, remittances and in all other departments
most of the work, entries and recordings of work is done on computers.

It is competing in open financial market but with very tough competition. Because due to
privatization many banks are striving to become in the list of high ranking banks. Bank alfalah
maintained its steady growth in resources mobilization and financing of foreign trade. Through
its professional staff and committed management its making progress. Bank has increased its
branch network from 145 to 189 during the years. And still it’s making plans to expand more
branches.

Bank alfalah offers an inspiring working environment, competitive salary packages, excellent
benefits and caring executives. They try to achieve superior financial services and striving hard
to become the best bank among all the competitors.

Business practices adopted by this bank are strong and ethical. They make their products
according to the needs and specifications of the customers. They do their business and
implement policies in an ethical way and in an effort to effectively collaborate with their stake
holders.

They make their plans in such a way as a goal to create a sense of ownership among employees.
They treat their employees as such they own those employees. By providing extra care and
benefits they make their employees work with more effort and devotion.

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Bank alfalah introduces itself as a caring bank and it is proving its words by providing
customer’s satisfied products and services, by offering innovative products and by taking care of
their customers.

Their philosophy is to be excellence in services by providing excellent services to customers.

They also focus on quality performance and believe in product innovation.

Through implementing various strategies they are focusing on increasing their profits and
business. By corporate level strategies they are introducing those products and services that
can add to the competitive advantage of the organization as a whole.

Like the customer finance department that are continuously providing their customers value
added and satisfied products as car finance and agri based products.

By using business level strategies bank alfalah focuses mainly on the product’s cost and
differentiation of products from their competitors. In order to achieve a sustainable
competitive advantage and long term success bank alfalah is striving hard to cut prices of their
products and services as compare to other competitive products. And at the same time they do
not compromise on quality. Banks make efforts to provide quality products and services but at
low rates.

At departmental level they are formulating strategies to make each department as one of the
best and satisfied department. All the departments are working very efficiently and providing
services to costumers.

Bank alfalah believes in establishing god relationship among individuals, groups and
departments in bank. Diverse organizational tasks are coordinated by the management so that
employees work more efficiently and do not feel burden of work. Work in bank is divided into
specific jobs and departments so that full attention is given to every task.

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To achieve its goals and to create a sound based modern banking system bank alfalah has
started operations of automated teller machines in all the major cities and other smaller cities
of Pakistan.

Keeping in view the Muslim community and the emerging concept of interest free banking,
bank alfalah has also started Islamic banking and it is targeting large segments of population to
want interest free banking. It gives its full attention to Muslim community and attracts them by
introducing Islamic banking.

Management of bank alfalah is aware that they have stepped into 21 st century and they must
meet its challenges by acquiring the highest level of technology. They are thus accelerating
their technological advances more to enable them selves distribute their products and services
through most efficient and high technological means.

They are investing more in modern tools and allocate substantial budget for these technological
advancements. Credit cards and merchant inquiry have been introduced to many cities and still
they are improving their technology.

In the banking sector bank alfalah has a significant progress. Backed by strong Abu Dhabi group
it achieved its position with in a very short time period in Pakistan. It has a great share in
market and also has high growth rates as compare to other banks. Due to its best customer
dealing it has improved its image and now day’s bank alfalah is recognized as one of the best
bank of Pakistan.

No doubt bank alfalh is best in its field and providing lot of innovative products and services to
customers, it’s striving hard to improving its status and image more and more in the minds of
customers.

It has much strength like it believes on keeping good relationships with customers, customers
are usually satisfied by the services and products of bank. It is not a single but a branched
organization having wide network of branches all over Pakistan. It is still extending its branches
by opening new branches not only in big cities but also in smaller cities of country. It is

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providing different facilities to its customers like credit card facility; merchant acquiring
machines are introduced recently by bank alfalah. Bank alfalah is on the top level among all
banks that are providing car finance facilities. Due to it better services; efficient management
and trustworthiness people feel satisfy to be the part of this bank.

It is a big organization having many branches not only in the country but also expanding its
network world wide in different countries. It’s a multinational organization having its branches
all over the world. Though its branches outside the country still required improvement and its
management is striving hard to bring those branches at highest level by attracting large number
of customers.

It is not a flat organization. It is a tall organization which accepts changes and is in the way to
improve their bank more by improving their strengths, observing the market trends and taking
opportunities which exist in market for bank alfalah.

The communication level in bank alfalah is also very strong and its internal communication
system is such that management finds no difficulty in communicating with each other. It has
both upward and down ward flow of communication. The CEO can easily communicate to
employees and the employees can communicate to top level management and can give their
views and ideas regarding different problems. In bank alfalah communication also takes place
among employees at same level. In this way employees can perform their functions well and
can organized their work in a much better way. It creates sound and co operative environment
in which one feels no hesitation and barriers while communicating with others.

Unlike typical organization, bank alfalah I s organic organization. It not only imposes decisions
of top level management but also encourage low level employees to take part in decision
making and in giving their ideas. It encourages ideas and suggestion from low level employees. I
this way bank alfalh can generate many new products due to different innovative ideas.

Leader is needed by every field and in every organization. Bank alfalah is having its leaders in
the form of highly qualified and skilled managers who are working hard to put t5he bank at the

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peak level as well as help the organization in achieving its goals. They have many traits and skills
in them which are necessary in achieving goals like

Decision making,

Risk taking and risk bearing

Honesty

Strong vision

Interpersonal skills

Market focusing skills

Consistency

Step forward

Discipline,

Competitive skills

Believe on equity.

Important and overall decisions of the bank are made by top level management for example
chairman of the bank. Regional manger makes decision at regional level. Branch manager
makes decisions at branch level.

Major portion of bank alfalah is decentralized that’s why each leader has the complete power
of decision making but they are working collaboratively in whole organization with each other.
All leaders of the bank are involved in decision making, delegating their authorities to their
qualified employees, encourage their employees to participate in work and gives them
opportunities of coaching for their proper guidance.

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Bank has legal entity and it take cares of ethics while running its business. This is also strength
for bank alfalh and it is giving it advantage in attaining customers’ attention.

Technologically bank alfalah is weak and this weakness is a major threat to bank alfalah.
Because today in a competitive market it is very difficult for an organization to gain success over
it competitors without having command on this factor. Online banking system is introduced in
bank alfalah but it is also not working properly.

Bank alfalah has lot of strengths and it also has opportunities in the market, so its market share
is increasing and it is expanding its branches rapidly. So we can say that bank alfalh is running
ion growth strategy and it will son increase its market share up to maximum level as compare
to its competitors. As a whole bank alfalah proves to be the best bank among all the banks in a
banking sector. in spite of its weaknesses its strength are more as compare to its weakness and
still it is striving hard to improve these weaknesses and to avail maximum opportunity available
to it in market.

I found my internship training at bank alfalah limited circular road Bahawalpur branch to be a
very rewarding experience. It was a very beneficial training because it helps me to be aware
real life working experience. By working in this Organization for few periods I realized that how
to cop with real world situations and how to implement theoretical knowledge practically.

From the point of view of learning, all the employs there were quite co-operative. they helped
me to understand the activities of bank in spite of their tough routine they gave me full
attention and never got irritated by my questions.

Their good behavior gave me confidence to learn more and ask any query from them. I have put
my honest effort to present the working, operations and aspects of bank alfalah in detail. I have
really gained a lot from my experience of internship and enjoyed very much while working with
co-operative, experienced and intelligent staff.

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