Professional Documents
Culture Documents
Submitted to:
Submitted By:
BILAL HASSAN
Ei09MBA045
SHAHZAD AHMED
Ei09MBA08
SHAFEEQ
Ei09MBA068
Table of Contents
Executive Summary ……………………………………………………
Introduction…………………………………………………………….
General Banking……………………………………………………..
Consumer finance……………………………………………………..
1) Credit cards…………………………………………………….
a) Platinum cards…………………………………………
b) Titanium cards…………………………………………
c) Supplementary cards…………………………………..
d) Gold/Classic……………………………………………..
2) Home loans…………………………………………………….
d) Start it together………………………………………..
e) Easy transfer………………………………………….
f) Procedure………………………………………………
3) Car financing…………………………………………………
a) Eligibility ……………………………………………
b) Mark up rates
Financial Analysis……………………………………………………
Ratio analysis…………………………………………………………..
SWOT Analysis…………………………………………………………
PEST Analysis………………………………………………………….
Recommendations………………………………………………………
Conclusion………………………………………………………………
1) Executive Summary
2 Introduction
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
The Abu Dhabi Group is one the largest UAE based group of investors
actively participating in investment activities in countries like Pakistan,
Bangladesh, Iran, Uganda, Republic of Congo, the middle east and
growing.
The market value of only the group portfolio can easily be stated to be in
excess of US$ 10 billion.
over Rs. 550 billion and a solid track record of fifty years, in addition to the
convenience of over 1112 branches
Group & SingTel Group. In July 2007, telecom giant SingTel acquired
30% percent equity stake in Warid Telecom, Pakistan, for US$758 million
Wateen continues to build on the heritage of its parent
Board of Directors:
H.E. Sheikh Hamdan Bin Mubarak Al Nahayan
Bank Believes
Every door leads to our customers.
• Humility
• Extreme Customer Care/Focus
• Courtesy and Respect
• Honesty, Integrity and Trust
• Commitment and Hard work
• Creativity, Innovation and Quality
• Justice and Fairness to all Stake-Holders
• Open, Honest and Direct Communication
• Provider of growth and equal opportunity
Vision
To be the premier organization operating locally & internationality that
Provides the complete range of financial services to all segments under one
Roof.
Mission
To develop & deliver the most innovative products, manage customer
Credit Rating
PACRA, a premier rating agency of the country, has rated the bank ‘AA’.
Entity Rating for long term and A1+ (A one plus) for the short term. These
ratings denote a very low expectation of credit risk, strong capacity for
timely payment of financial commitments in the long term and by highest
capacity for timely repayment in the short term, respectively.
Islamic Banking is one of the goals of Bank Alfalah though it has been
initiated in the last fiscal year and it is very acceptable for general public.
However, there is lot of work to do for successful implementation of the
Islamic Banking Plan. In this regard the Bank is opening specific Islamic
Banking Branch under the supervision of its Islamic Banking Division.
General banking
CURRENT ACCOUNT:
Non interest bearing checking account.
Minimum account opening requirement of Rs. 10,000 only.
Debit card can be used to withdraw cash and make purchases at thousands
of outlets across Pakistan which provides access to funds 24 hours a day.
No restriction on number of withdrawals and on number of deposits
PLS SAVINGS ACCOUNT:
Profit & Loss Sharing Saving Bank Account.
Minimum account opening requirement of Rs. 5,000 only.
No restriction on number of withdrawals and number of deposits.
Profit on saving accounts is credited to the customer account on half-yearly
basis.
Debit card can be used to withdraw cash and make purchases at thousands
of outlets across Pakistan which provides access to funds 24 hours a day.
ROYAL PROFIT:
Minimum Deposit requirement of Rs. 50,000 only.
Higher returns on higher balances.
No restriction on number of withdrawals and on number of deposits.
Debit card can be used to withdraw cash and make purchases at thousands
of outlets across Pakistan which provides access to funds 24 hours a day.
Profit is credited to the customer account on monthly basis.
Customer can avail financing facility up to 90% of the deposit(as per banks
policy)
Any Pakistani resident over the age of 18 can open this account
Alfalah Mahana Amdan term deposit can be maintained only at any one
BAL branch with a maximum cap of Rs. 15 Million. An undertaking shall
be obtained from the customer certifying that he/she is not availing Alfalah
Mahana Amdan Term Deposit Receipt facility from any other BAL
branch.(included in AOF)
Alfalah Mahana Amdan TDR will be issued for three years tenure with
auto renewal facility of principal amount i.e. the facility will be renewed
automatically on maturity (i.e. 3 years)
Alfalah Mahana Amdan TDR will be subject to Zakat, Withholding Tax as
well as any other applicable taxes
Alfalah Education
Alfalah Education is a Term Deposit product with No Additional Cost
(NAC) education insurance cover for account holders with school going
children. Alfalah Education Account , beside offering competitive return
on TERM DEPOSIT , offers tuition fee reimbursement of children for 15
years of schooling or up to their 20th birthday, in the unfortunate event of
the death (either through accident, illness or natural causes) of the main
breadwinner (account holder) parent.
Features
Deposits can be placed in multiple of 100,000 units with maximum 3 units
allowed per depositor, i.e. a maximum deposit per customer of Rs. 300,000
across all BAL branches.
Benefit Schedule
Benefit Payable: for 15 years or up to the child age 20
Monthly Premium: Rs. 85
Deposit: Rs. 100,000
Child Benefit Payable Monthly
* Child age at Age* for no. of years Payment (Rs.)
the time of
5 15 2600
6 14 2800
7 13 3000
8 12 3200
9 11 3300
10 10 3600
11 9 3900
12 8 4300
13 7 4800
14 6 5400
15 5 6300
16 4 7600
17 3 10000
18 2 14600
19 1 28300
Breadwinner’s death.
Silver
Gold
Platinum
The unique tier based structure ensures that you can avail smooth & cost
efficient facilities based on your current level of deposits i.e. Higher the
deposit, higher the number of free services.
Financial services
Structured Finance Department comprises a team of hand picked
professionals, dedicated to syndicated loans and structured products. The
team’s expertise is well known in the marketplace with its capability to
assist public & private sector entities, major financial institutions,
multinational corporations, domestic & international institutional investors
in innovative financing including underwriting & private placements.
The scope of SFU’s activities also encompasses advisory assignments, such
as privatization, Mergers & Acquisitions (M&As), domestic listings, IPOs
and restructuring.
During the past few years, SFU has been successful in sourcing and
participating in a number of prestigious transactions involving large
amounts.
Some of the value added services offered by SFU include the following:
Loan syndication
Public floatation of Term Finance Certificates (TFCs) and equity
Private placement of Term Finance Certificates (TFCs) and equity
underwriting
Guarantee syndications
Financial restructuring
Mergers & Acquisitions (M&As)
Fostering joint ventures
Privatization – Sale side and buyers side advisory
Structuring new financial instruments In future, SFU is envisaged to
supplement the enhanced profile and profitability of Bank Alfalah Limited
through its value added services, through both asset building and income
generating aspects
The correspondents are listed on a country-wise basis. The banks are listed
alphabetically.
SME
Small and Medium Enterprise (SME) means an entity, ideally not a public
limited company, which does not employ more than 250 persons (if it is
manufacturing / service concern) and 50 persons (if it is trading concern)
and also fulfills the following criteria of either ‘a’ and ‘c’ or ‘b’ and ‘c’ as
relevant:
(a) A trading / service concern with total assets at cost excluding land and
building up to Rs 50 million.
(b) A manufacturing concern with total assets at cost excluding land and
building up to Rs 100 million.
(c) Any concern (trading, service or manufacturing) with net sales not
exceeding Rs 300 million as per latest financial statements.
• Lease Finance
• Agriculture
• SME
Consumer Finance
• Car Finance
• Home Finance
• Credit Card
Organizational Hierarchy Chart
CONSUMER FINANCE CENTERS
Credit Card operation has been manipulating through following consumer
finance centers with head office in Lahore.
Lahore
Karachi
Rawalpindi
Faisalabad
Hyderabad
Peshawar
No Joining / Annual / Renewal fee (except Platinum cards) Electricity, Sui Gas, PTCL
and Warid bills payment through 24 hour Call Center and Auto Debit instructions
SMS for card usage, mini statement, payment receipt confirmation, etc. Cash
withdrawal at all 1LINK ATMs Special offer on Warid post paid connections Rush
now to avail matchless features offered by Alfalah VISA
Your partner wherever you go Alfalah
Merchant Acquiring
Features
- Convenience & reliability
- Protection
- Step-By-Step (SBS) Monthly Installment Plan
- Balance Transfer Facility (BTF)
- Credit Cover
- Cash Advance Facility
- Supplementary Cards
- Buy your dreams online
- Reward yourself
Card Safety
Schedule of Charges
Titenum cards
Gold / Classic
All Bank Alfalah basic credit card members can apply for supplementary
cards for their sons, daughters (Children who are above 13 years of age),
house staff or anyone you like thus giving you complete freedom of choice.
Get familiar with your Alfalah Prepaid Payroll Card
Front
Your Name
Validity Period
VISA Logo
Back
A magnetic stripe containing coded information for the security of your
card.
Dove Hologram.
The Alfalah Prepaid Payroll Card can be used electronically at any retail
outlet or ATM that accepts any VISA cards and displays these logos:
Card Activation
For your safety, your Alfalah Prepaid Payroll Card is sent inactive to you.
Your Alfalah Prepaid Payroll Card is ready to use from the moment you
get it activated. Upon receipt of your card, you must sign across the
signature panel at the back of your card.
To activate your card simply call the Bank Alfalah Call Centre 111-225-
111.
Please do not give away your card to anyone without cutting it into two
halves vertically.
The ATM PIN will only be required for ATM based transactions while the
TPIN (Telephonic Personal Identification Number) will be required for
any account related inquiries on IVR (Interactive Voice Response). Please
ensure that you have attained your ATM PIN before trying to withdraw
cash.
In case of any difficulty, please call the Bank Alfalah Call Centre at 111-
225-111. We will be glad to assist you.
Global Acceptability
With your Alfalah Prepaid Payroll Card, you can pay for shopping, meals,
travel, entertainment, holiday, petrol and much more. Also it gives you
access to ready cash through your Alfalah Prepaid Payroll Card and PIN
(Personal Identification Number) at more than 1.5 million Automatic
Teller Machines to withdraw any amount up to your available bank
account balance. This premier card service is a convenient point-of-sale
alternative for ATM cardholders who do not qualify for VISA credit
purchasing power. By getting Alfalah Prepaid Payroll Card, you can access
your bank account at Bank Alfalah from anywhere in the world.
Our 24-Hour Customer Service is there to help you with your requests.
Our well-trained and qualified Customer Service team can be contacted at
UAN: 111-225-111. They will be able to assist you in:
Foreign transactions
If ever you lose your card, Bank Alfalah ensures that you never have to
worry about it after reporting it to us. You are covered for all fraudulent
charges made on your card as soon as it has been reported lost to us. Just
make sure that you report the loss immediately upon discovery.
Simplicity
Charge goods and services to your Alfalah Prepaid Payroll Card at all
point-of-sale terminals with self-printing ability displaying VISA/ Electron
sign both in Pakistan and abroad.
Flexibility
With Alfalah Prepaid Payroll Card you may withdraw cash from more
than 1.5 million Automatic Teller Machines worldwide. You no longer
need to worry whether you'll make it to the bank before closing time,
because Call Center never close they are open round the clock 7 days a
week, 365 days a year.
Promptness
Using Alfalah Prepaid Payroll Card at ATM and / or shops requires less
time than queuing in the Bank and writing out cheques.
Controlled Spending
Alfalah cardholders can get SMS for card usage and payment receipt
confirmation, etc. A call can be made at 111-225-111 for registration.
Customers can make their utility bills payments through our call center. In
future, Alfalah Prepaid Payroll Card would also be used for utility bills
payments through Call Center, Direct Debit instructions, POS Terminal,
Internet, IVR and Mobile Phones.
Alfalah Prepaid Payroll Card can be used on more than 1.5 million ATMs
around the world to withdraw any amount up to your available designated
bank account balance.
• Enter amount
You also have the option of withdrawing the cash by requesting an Over-
the-Counter cash advance at all VISA member financial institutions
worldwide, or at any of the Bank Alfalah branches.
These terms and conditions shall be applicable to the Alfalah Prepaid Card
(“Cards”) and any person to whom such a Alfalah Prepaid Card has been
issued by Bank Alfalah (“Cardholder”) shall be bound by these terms and
conditions. Any person who has been issued a Alfalah Prepaid Card by
Bank Alfalah and who has signed at the back of the Card and/or has used
the Card shall be bound by these terms and conditions.
In these Terms and Conditions, unless the context otherwise requires:
I. Words with only singular number shall include the plural number and
vice versa.
II. Any reference to a Cardholder includes where the context permits any
or all heirs, executors, administrators and successors-in-interest.
III. The headings to the clauses shall not be taken into consideration in the
interpretation or construction of these Terms and Conditions.
IV. Where the words "include" or "including" appear they are to be
construed without limitation.
This single card brings just about everything within your reach. Now, you
can use your Alfalah HilalCard for all your financial needs around the
world, round the clock, wherever Visa cards are accepted, locally and
internationally.
No Interest
With this facility, you no longer need to just dream about the home you
want for yourself and your family .We will provide you up to 70% of the
purchase price of the property, so that you can realize your dream and
enter the reality of owning a home!.
You own a plot but need financing to construct a home, that excites
everyone in your family! No problem. We will provide up-to 100% of the
construction cost enabling you to say good-bye to rent forever! Even if you
don't have a plot, we will provide upto 60% of the value of the plot that you
have selected to purchase!
The crown jewel of our Home Finance scheme, the golden opportunity for
someone starting a career to buy an already constructed housing unit early
in life! We offer a moratorium of upto 3 years in principal payments, for a
financing of upto 20 years. You service only the mark-up element initially,
and principal repayment starts after the end of moratorium period.
After the CCIR is received, the bank does a private valuation of the
property, which determines the amount of loan that will be provided to the
customer. These documents provide the basis for a Credit Line Proposal
(CLP) that determines the amount of loan provided to the customer and
other important information relating to the loan finance. When the
customer signs and approves the CLP, Documentation Control Centre
(DCC) will get in touch with the customer to complete finance & security
documentation pertaining to the home finance.
Later a pay order is made and provided to the customer and all papers
relating to the property are given to the DCC, while other documents go to
the bank that gives the loan.
HOME FINANCE
Salaried Class
ID, 2 picture, 02 current month salary slip, salary certificate, last 06 month
bank statement, 02 references or ID copy,
Mark 14.68% for 01 year,
Business Class,
NTN, 02 Years sales/purchase Record, 01 year for company statement, 03
years business proof, for business class mark up is 15.68 %,
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
\
How Much Extra Money Being Paid? {Mark-Up}
Car Loan for Brand New Vehicles 17.50% 17.50% 18.00% 18.50% 18.50%
Car Loan for Brand New Imported Vehicles 19.00% 19.00% 19.00% 19.00% 19.00%
Repayments
Easily affordable installments on monthly basis in the form of post-dated
cheques will set you free of depositing your rental cheques every month.
Security
Hypothecation of vehicle in the name of Bank Alfalah Limited.
Yes you can get a car loan form Bank Alfalah to purchase a brand new car
if you are:
The bank then conducts a verification of the two references, which for
Bank Alfalah I-8 Markaz is conducted in Rawalpindi. A ‘Verisys’ is also
conducted on the applicants CNIC and a Customer Credit Information
Report is taken from the CIB.
After the verification process is completed, a Credit Line Proposal (CLP) is
generated by Bank Alfalah I-8 Markaz, to be sent to the Area Office for a
final approval with all other documents as well. The final authority of
passing the application remains with the Area Office.
After the Area Office approves the application, the customer will make the
down payment, give the bank post dated cheques and sign a legal document
with the bank.
When this process is complete, a quotation is sent to the car dealer for the
specified car, insurance documents are sent to the specified insurer. Later
on the car is registered with the Excise and Taxation Officer and is given a
number.
When all this process is complete, the key to the car is handed over to the
customer with all documents relating to the car. When the tenure for the
car financing is completed, the bank issues a NOC to the customer.
Auto Loan
05 years interest rate 18.5%
03 years interest rate 18%
nd
2 hand motor card, 2 years maximum old or interest rate 21%
For Salaried person
ID card, 2 picture, 06 month salary A/C B/S, salary slip, 02 Reference
picture,
For Businessman
ID Card, 2 picture, sole proprietorship letter, NTN, 2 reference picture,
Minimum Auto loan 200000/=
Maximum Auto loan 4 MILION
(Rupees in’000)
SWOT ANALYSIS
Strengths
• Network of branches
• Backed by strong Abu Dhabi Consortium
• Leading private sector bank
• Non stop banking
WEAKNESSES
Staff is lesser
OPPORTUNITIES
• Spreading to the rural areas of country.
• Strong potential for growth
• Steady increase in Customer Deposits
• Overseas Operations
• Establishment of foreign exchange
• Branches In Remote Areas
THREATS
• Competition from major players like HBL, MCB, Barclays and Citi
BANK, etc.
• Political instability
• Rate of inflation
• Energy crises
• Terrorist image of the country
PEST Analysis
Political
The political situation of Pakistan is not satisfactory. Due to the rapid change,
every government sets its own new policies. Govt. should apply sustainable
policies for the beneficial of Banking sector .
Economic
The economic condition of Pakistan can also affect the Banking sector as the
increasing inflation rate tends to increase interest rates on loans from bank.
Social
The change in the lifestyle of the people affects the growing demand of the
quick service lifestyle. The change in the lifestyle and needs in different
demographics also affect the demand of the customers.
Technological
Technological advancement in all the sectors of the country has changed the
entire socio-economic environment. Especially in the banking sector there is a
lot of technological development and there is need of more.
Recommendations
Finally, We are giving some suggestions for Bank Alfalah Limited. These
suggestions are based on our experience with bank.
Job Advancements
There is no job advancements procedure for lower staff members or junior
executives that have joined recently at Bank Alfalah. The main problem
that was observed was that the lower staff should be trained about the
operations of the bank and also the junior executives should be given
promotions by defining the criteria’s like performance etc.
Priority Banking
Bank Alfalah does not have any priority banking department that can
cater to the need to high end customer. At Bank Alfalah I-8 Markaz, there
were no large company’s account mainly because there was no department
to develop relationships with large customers.
Amenities at Branch
Providing amenities like a separate room for prayers because currently the
employees pray in the conference room of the branch. Also separate rooms
should be made for the account department for sorting of vouchers as it is
also done in the conference room.
Incentive Schemes
There are no incentive schemes for employees of Bank Alfalah like
scholarship schemes for employees that want to pursue higher education.
Bank Alfalah although gives anumber of incentives to its employees, like
personal loans at nominal markup but they are only provided to employees
that are in higher ranks. Education fees are also returned by Bank Alfalah
to its employees, after the have finished their studies
CONCLUSION
BANK ALFALAH ( BAF ) under the leadership of Sheikh Nahayan
Mabarak Al-Nahayan has made significant in building of strengthening
both the corporate and retail banking sectors in Pakistan.
The Bank attained Number two (2) position in terms of its Balance Sheet
size amongst the private banks in Pakistan in 1999. The significant
improvements in terms of its results in comparison to the corresponding
period for the year 1998 have been much above the market expectations.
Balance Sheet footing of the Bank reached the level of Rs.21 Billion-an
increase of more than 46% over the previous year. Customer Deposits rose
by 33% on a year-to-year basis and stood at Rs.15.82 Billion. Bank
maintained a Capital adequacy ratio of over 13%, which is significantly
above the Basle guidelines and international requirement of 8%. The pre-
tax profit of the Bank also increased more than five (5) times as compared
to the previous year and stood at Rs.354 million for the year 1999. Bank’s
investment in the Financial Sector was based on the confidence of bank in
the country as a whole and it has been amply demonstrated by the growth
plans of bank though ambitious in nature but prudent and in line with the
potentials of the market place. Although the financial sector in general
witnessed some shrinkage, both in terms of downsizing and closure of
certain locations, the bank, however, continued with its expansion
programme and added five (5) new Branches in their network, one each in
Islamabad, Peshawar, Multan, Faisalabad and Lahore.
They are aware that they have stepped into the 21st century and they must
meet its challenges by acquiring the highest levels of Technology. They will
thus be accelerating their enable them distribute their products and
services through most efficient and high-tech means. They say that they
will invest in the modern tools and substantial allocation of resources will
be made to achieve this objective during the current year. Their
programme to launch real time – on line Banking Services and
introduction of ATMs at strategic locations have been firmed up and it will
be fully operational during the year 2001.
Based on the profit of Rs.354 million, the Board has proposed that a cash
dividend at a rate of Rs. 2.00 per share i.e. 20% of share capital be
distributed among the shareholders