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Bank Alfalah

Submitted to:

Prof. RIAZ AHMED MIAN

Submitted By:
BILAL HASSAN
Ei09MBA045
SHAHZAD AHMED
Ei09MBA08
SHAFEEQ
Ei09MBA068
Table of Contents
Executive Summary ……………………………………………………

Introduction…………………………………………………………….

2.1 Central Background Information………………………

2.2 Company Background…………………………………

General Banking……………………………………………………..

Consumer finance……………………………………………………..

1) Credit cards…………………………………………………….

a) Platinum cards…………………………………………

b) Titanium cards…………………………………………

c) Supplementary cards…………………………………..

d) Gold/Classic……………………………………………..

e) Alfalah Prepaid Payroll Cards………………………..

f) Alfalah Hilal Cards…………………………………….

2) Home loans…………………………………………………….

a) Buy Your Home………………………………………….

b) Build Your Home………………………………….

c) Renovate Your Home………………………………….

d) Start it together………………………………………..

e) Easy transfer………………………………………….

f) Procedure………………………………………………
3) Car financing…………………………………………………

a) Eligibility ……………………………………………

b) Mark up rates

c) Procedure for Car Financing……………………….

Financial Analysis……………………………………………………

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

SWOT Analysis…………………………………………………………

PEST Analysis………………………………………………………….

Recommendations………………………………………………………

Conclusion………………………………………………………………
1) Executive Summary
2 Introduction

2.1 Central Background Information


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. The country started without any Worthwhile banking network in
1947 but witnessed phenomenal growth in decades to Come. By 1970, it
had acquired a flourishing banking sector. Nationalization of banks in the
Seventies was a major upset to domestic banking industry of the country,
which changed The whole complexion of the banking industry. With
irrational decision at the top all the Commercial banks were made
subservient to the political leadership and the bureaucracy.

The commercial banks thus lost their assets management equilibrium,


initiative and Growth momentum. They ceased to be a business concern
and became big bureaucracies.

The era of nineties was the climax of privatization, deregulation and


restructuring in the Domestic banking industry and financial institutions.
The Muslim Commercial Bank was The first bank to privatize. Followed
by Allied Bank limited, United Bank Limited and Habib Bank Limited has
all been privatized.

Today, the banking sector is providing financial solutions to the masses


and is growing And becoming a solid partner in the development of the
Pakistani economy, this growth Potential has seen different acquisitions in
the banking sector, with the Standard Chartered and Union Bank being
the most prominent. Standard Chartered acquired an80.86% interest in
Union Bank Limited for a cash consideration of US$413 million.

Other acquisitions include ABN AMRO acquiring 93.4% interest in Prime


Bank for Rs.13.8 billion and Temasek Investment Holding of Singapore
taking up a stake in PICIC ommercial Bank. Temasek also has its stake in
NIB Bank.

2.2 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, 1997 as 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.

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.

Bank Alfalah Limited was incorporated on June 21st,

1992 as a public limited company under the Companies Ordinance 1984.


Its banking operations commenced from November 1st ,1997
UBL was established in November 7, 1959. It has assets of

over Rs. 550 billion and a solid track record of fifty years, in addition to the
convenience of over 1112 branches

Alfalah Insurance Co. Ltd., is one of the latest ventures of

Abu Dhabi Group in Pakistan. Alfalah Insurance started operations


towards the end of 2006.

Alfalah Securities (Private) Limited is a corporate

member of Karachi Stock Exchange. Alfalah Securities is an independent


entity with management specialized in

Alfalah GHP Investment Management Limited is licensed

by the Securities and Exchange Commission of Pakistan. The company is a


joint venture of Non-Banking Finance Company established by Bank
Alfalah Limited and GHP Arbitrium of Switzerland.

Al Razi Healthcare is committed to provide gold

standards in healthcare services in Pakistan

Warid Telecom is a joint venture between Abu Dhabi

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

company - The Abu Dhabi Group. Wateen Telecom UK Ltd embarks on


providing leading international voice retail and wholesale communication
services to its esteemed customers

Taavun is the premier venture of the group in the area of

real estate development and construction in Pakistan.

Board of Directors:
H.E. Sheikh Hamdan Bin Mubarak Al Nahayan

Mr. Abdulla Nasser Hawalileel Al-Mansoori

Mr. Abdulla Khalil Al Mutawa

Mr. Ikram Ul-Majeed Sehgal

Mr. Khalid Mana Saeed Al Otaiba

Mr. Nadeem Iqbal Sheikh

Mr. Sirajuddin Aziz


Now 10 years after being incorporated, Bank Alfalah has emerged as one
of the foremost Financial institution in the region, endeavoring to meet the
needs of tomorrow today, Operating through 198 branches in 74 cities
nation wide, with total employees exceeding 6000. Bank Alfalah also
expanded its network internationally by opening branches in Afghanistan,
Bangladesh and Bahrain to further improve its image as a premier
banking Institution.

Bank Believes
 Every door leads to our customers.

 The legacy of leadership stands as our guiding light.

 The strength of chain relies on the strength of each link.

 A keen ear is a key to understanding. Achievement is nothing without


target.

 Time is our most valuable asset.

 Performance is nothing without the ability to measure it.

 Every drop counts


CORPORATE CULTURE and CORE VALUES
Bank Alfalah aims to inculcate a nurturing and invigorating corporate
culture based on providing a safe, healthy and supportive environment
where staff members are valued, respected and able to realize their full
potential. This culture is based on the following core values:

• 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

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.

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.

GOALS & OBJECTIVES


Goals and objectives are factors through which the company’s
devotion and commitment to the job can be seen. If the goals are realistic
and achievable, than surely that organization is doing it’s job. Bank
Alfalah also has certain goals and objectives which it is trying to achieve,
through it’s various strategies and operations. The goals and
objectives are mentioned below:

To create a sound base, and through efficient systems achieve


modern banking through out Pakistan.

By the end of every accounting year there is an increase in deposits. As the


deposit rate of during 2002 was approx 52 Million and the same has been
increased in 2003 by 77 Million.

To create unit banking network in all the branches of Bank Alfalah,


the end of the year. This means that all the operations of the bank, i.e.
deposits to advances, imports, exports, L/C Opening, foreign currency
and many more aspects under one roof, so that the customer can be
facilitate in one visit.

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.

Bank Alfalah is operating with an extensive network of 321 branches


nationwide that are spread all over Pakistan. Different varieties of services
are as follows:

• Corporate / Commercial Banking


• Agriculture Finance
• SMEs Financing
• Consumer Finance

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.

BASIC BANKING ACCOUNT:


Initial deposit for account opening is Rs. 1,000 with no minimum balance
requirement.
Non interest bearing checking account.
Maximum 2 deposits & 2 withdrawals through cheque is allowed.
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 ATM withdrawal.
Alfalah Mahana Amdan
Alfalah Mahana Amdan is a 3 year TDR with expected rate of profit of
10% p.a. This term deposit will provide an opportunity to individual/joint
customers to enjoy higher returns that will automatically be credited to
his/her current/PLS/RP/BBA account on 1st working day of each month.
This facility is not available for business and corporate customers.

Some salient features


Minimum placement limit is Rs. 100,000/- and maximum placement limit is
Rs.15,000,000/-
Expected Rate of profit is 10% Per annum (as per PLS governing rules)
Profit will be automatically credited on the 1st working day of each month
into customers Current/PLS/RP/BBA account
Free Personal Accident Insurance coverage up to the deposit amount or
Rs. 1,500,000/- whichever is lower.

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.

Alfalah Education offers a competitive return on term deposit and


secondly, it creates a contingency provision for our school going youth’s
education in the hapless event of the death of any major breadwinner. The
product seems rewarding in the current scenario of increasing number of
children of school going age and the general public interest in quality
education of their off springs.

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.

All 3 units can be purchased for 1 child or each for up to 3 children.

No evidence of insurability (medical examination/health decoration) is


required.

Maximum entry point age is 55 years (renewable up to 64th birthday)


Benefit payment increases with age/class of the child. The product will be
offered as a 1 year term deposit at upto 7 % profit to be paid at maturity
Premium cost for each deposit unit of Rs. 100,000 would be Rs. 85 per
month and borne by the bank.

Regular Zakat and WHT would apply on the deposit.


Monthly payments set forth will be paid directly to the mother/guardian,
regardless of the actual school fee. In case of joint
account holders, only main breadwinner account holder would be covered
under the policy. Premium will be paid to
ALICO by BAL on monthly basis.

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.

ALFALAH KAMYAB KAROBAR:


Online Current Account
Bank Alfalah presents Alfalah Kamyab Karobar (KK) - a structured,
branded, tier-based current account that caters to your banking needs &
aspirations. This product will provide you the opportunity to enjoy free
services alongside state of the art banking facilities, linked directly to the
deposit balances in your KK account.

Alfalah KK Account can be opened with minimum deposit requirement of


Rs 25,000, while the degree of free services will be dependent on the
minimum thresholds of respective tier.
Its will give you the power to choose from different tiers and avail banking
facility from any of the Alfalah branches – PAN Pakistan.

KK Accounts have strategically been tailored into 3 different tiers,


allowing you to choose the allotted free service to your benefit. The three
tiers are as following:

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.

Some of the Salient features include (tier-based):


Free Online Transactions

Free SMS Debit Alert (Subject to availability)


Free PO/DD

Free Accidental Cover( Valid for up to two People)

Free cash deposit across Pakistan


Gold VISA debit/ATM Card with every account

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

Foreign trade Inspired by a challenging spirit and an unyielding desire to


create a sound and reliable network of correspondent relationships, the
bank has placed great emphasis towards it growth. Accomplishing
something for the first time requires a special focus. It demands foreseeing
possibilities. In our endeavor to do so, we successfully surmounted
problems and difficulties arising out of issues relating to weak economic
conditions of the economy and a continuous deteriorating status of country
risk.
The incertitude and skepticism of the international banking community
towards financial institutions from emerging markets remained intact. Our
persistence during the past four years allowed us to make significant
inroads into the arena of correspondent banking. Large international
banks, after critically evaluating us, agreed to enter into relationship.

During 2002 we added 81 banks to our network of correspondents,


bringing the total number over 170. Of these relationships, there are now
several banks that rank amongst, the top financial institutions in the world.
Our geographical coverage now extends to over 100 countries, which is
adequately compatible with our trade flows.

Our correspondents, during the year extended us unqualified support,


which enabled us to undertake a healthy quantum of foreign trade
business. There are many challenges ahead for the bank, in the coming
year, our bank will not only continue to review its efforts on existing
correspondents to make the relationship more beneficial, but will also add
more correspondents to establish a comprehensive international
networking to facilitate our customer’s transaction as well as the Bank’s
proprietary needs.

We have provided against the list of correspondents their world and


country ranking. These ranking have been taken from The Bankers
Almanac – July 2001 issue.

We would like to emphasize that correspondent arrangements do not


necessarily imply the existence of account relationship. We are in the
process of rationalizing our current nostro account relationships. We shall
continue to open new accounts in various currencies based on our trade
flows and business requirements.

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.

An Individual, if he or she meets the above criteria, can also be categorized


as an SME.

Realizing its corporate social responsibility and carrying forward the


image of "The Caring Bank", Bank Alfalah started a separate department
at the Head Office level in early 2004. The SME Department was
established with a mandate to foster SME finance at BAL, explore
opportunities for developing structured product programs for SMEs,
introduce the concept of Dedicated SME officers and finding market based
solutions to fill the financing gap to this important and under-served
business segment.

Bank Alfalah believes in innovation, simplification of procedures, and


reduction in turnaround time and customer friendly service. To
accomplish this resolve, the SME Department's services are available at all
Bank Alfalah conventional branches throughout Pakistan to nurture
valuable relationships in the SME sector.
SME DEPARTMENT AT BANK ALFALAH

Realizing its corporate social responsibility and carrying


forward the image of "The Caring Bank", Bank Alfalah started a
separate department at the Head Office level in early 2004.
The SME Department was established with a mandate to foster
SME finance at BAL, explore opportunities for developing
structured product programs for SMEs, introduce the concept of
dedicated SME officers and finding market based solutions to
fill the financing gap to this significant and under-served
business segment.

Bank Alfalah believes in innovation, simplification of


procedures, reduction in turnaround time and customer friendly
service. SME department is looking for ways to grow the brand
image of Bank Alfalah, using new ideas and initiatives in the
market, creating innovative ways for building the business, and
pushing boundaries. B.B & SME is divided into three divisions.

• Lease Finance
• Agriculture
• SME

Research reveals that SMEs are a better credit risk, as the


default rate of this sector is much less than that of large
enterprises. Throughout the world, SMEs have provided
tremendous opportunities to financial institutions to devise
various tools for the sector's development (e.g. Program
Lending Schemes, Credit Scoring, Venture Capital Financing,
etc.). Then there are clusters, technology parks and industrial
estates, all being fuelled by the dynamism and vibrancy of
small and medium enterprises. Banking institutions, running on
Islamic principles, are also experimenting with interest free
financial instruments for this sector.

SMEs are considered the engine of economic growth in both


developed and developing countries, as they provide low cost
employment since the unit cost of persons employed is lower
for SMEs than for large-size units. They assist in regional and
local development since SMEs accelerate rural industrialization
by linking it with the more organized urban sector, help achieve
fair and equitable distribution of wealth by regional dispersion
of economic activities and contribute significantly to export
revenues because of the low-cost labor intensive nature of its
products.

They have a positive effect on the trade balance since SMEs


generally use indigenous raw materials and assist in fostering a
self-help and entrepreneurial culture by bringing together skills
and capital through various lending and skill enhancement
schemes. They impart the resilience to withstand economic
upheavals and maintain a reasonable growth rate since being
indigenous is the key to sustainability and self-sufficiency.

Despite the significance, Pakistan's SMEs are still unable to


achieve their maximum potential and are in dire need of ‘hand-
holding' and business support services. We are here to support
them

ALFALAH KAROBAR FINANCE


Bank Alfalah’s first SME product Alfalah Karobar Finance is a running
finance facility based on projected cash flows. Under AKF, we offer
working capital finance (Rs.0.5 million to Rs. 20 million) to SME’s at
highly competitive rates. We have a team of professional credit officers
who provide expert financial advice along with customized packages to a
diverse range of business clientele. The product is available to SMEs
through all Bank Alfalah conventional branches across the country.
Bank Alfalah took another step towards addressing the needs of the
industry by introducing Alfalah Milkiat Finance. AMF is aimed at
strengthening the Small and Medium Enterprises viz a viz their business
premises. Alfalah Milkiat Finance offers comprehensive and flexible
financing packages from Rs. 0.5M up to Rs. 30 million for the purchase,
renovation and expansion of business premises

Alfalah Quick Finance is a personal loan against National Saving


Certificates, Prize Bonds, Alfalah GHP Principal Protected Fund &
PKR/FCY deposit for meeting personal, family and household needs
In modern days leasing has now become an economic and financial reality
of primary importance. It is the originality of the leasing techniques and its
economical advantages, which has enabled it to enter the world of
industrial investment in Pakistan and on the international scene.

Lease finance provides a significant source of funds for companies to


acquire or use assets. Leasing provides additional earning opportunities to
acquire assets and to get the inflows simultaneously out of the operations of
the same assets. The ownership of the asset is vested with the Bank (lessor)
and in return for rental payments, the client (lessee) has full use of the
asset. Being a medium to long term mode of financing, it allows the lessee
to use the funds for other profitable purposes which otherwise would have
been tied up in case of immediate payment for purchase of the asset.

Consumer Finance

Products & Services

• 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

Head Office: 08-Ali Block, New Garden Town (042) 35888630


-9

Karachi

6th floor, Business Avenue, Shahrah-e-Faisal (021)


34324191 - 200

Rawalpindi

B.A Building, 08 – The Mall (051) 5268200

Faisalabad

1st Floor, 237/B, Commercial Area, D – Ground, People’s Colony


(041) 8732288, 8555919

Hyderabad

Hyderabad Plaza, MZ Floor, Saddar Cantt. (022)


9201122

Peshawar

Lamsy Arcade, Fakhr-e-Alam Road, Cantt. (091)


9213930 – 34

Multan (061) 4500151-3

3Rd Floor Chen One Tower, Abdali Road Multan


Your Bank Alfalah Credit Card is your partner everywhere and is globally accepted
and welcomed at locations displaying the VISA logo. It is accepted at nearly 29 million
locations in more than 150 countries around the globe and over 27,000 Bank Alfalah’s
establishments in Pakistan.
Alfalah VISA lets you pay for shopping, travel, entertainment, meals and much more.
Card members are facilitated through a number of promotions from time to time. In
addition, there are a number of strategic business partnerships with leading local and
international brands for purchase of home appliances at exciting Step-BY-Step (SBS)
monthly installment plan with free home delivery at lowest interest rates. Salient
features are:

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

Basics of your Card

How to use your Card?


- Cash withdrawals

Monthly Card Statement

Protect your Card

Card Safety

Schedule of Charges

Visa Platinum Concierge Services

Membership of Priority Pass Card


VISA International Emergency Assistance Centers

Terms and Conditions

It is accepted at nearly 29 million locations in more than 150 countries


around the globe and at over 27,000 establishments in Pakistan

Titenum cards

Titanium MasterCard is your partner everywhere and is globally accepted


and welcomed at locations displaying the MasterCard logo

• Your partner wherever you go


• Priority Pass
• Features
- Convenience & reliability
- Protection
- Cash Advance Facility
- Step-By-Step (SBS)
- Balance Transfer Facility (BTF)
- Credit Cover
- Buy your dreams online
- Reward yourself
• Basics of your Card
• How to use your Card?
- Cash withdrawals
• Monthly Card Statement
• Protect your Card
• Card Safety
• MasterCard International Emergency Assistance Centers
• Concierge Program
• Schedule of Charges
• Terms and Conditions

Gold / Classic

A perfect card combination for all segments of salaried & professional


individuals

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

Your exclusive 16 digit card number

Validity Period

VISA Logo

Back
A magnetic stripe containing coded information for the security of your
card.

Your Signature panel

Bank Alfalah contact.

VISA Plus Logo

Dove Hologram.

Features: The Power of Alfalah Prepaid Payroll Card

The Alfalah Prepaid Payroll Card can be used electronically at any retail
outlet or ATM that accepts any VISA cards and displays these logos:

Special POS Machines


In order to use other VISA cards currently in the market you have to find
outlets that carry special POS machines on which payroll cards can be
used. Alfalah Prepaid Payroll Card is accepted at all those outlets
displaying the VISA/Electron logo and having self-printing POS terminals.

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.

Personal Identification Number (TPIN/ATM PIN) Issuance


Once your card has been activated, you may request the PBO (Phone
Banking Officer) for the issuance of your TPIN and ATM PIN. Please
beware that your PIN is very confidential. In case of being lost / stolen or
known to someone else, report the matter immediately to our Call Center
at 111-225-111 to request for a new PIN.

Please do not give away your card to anyone without cutting it into two
halves vertically.

In case your card gets lost or stolen, immediately call 111-225-111.

Please do not disclose your PIN & personal information to anyone.

Beware of internet fraudsters & hackers.

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

The Alfalah Prepaid Payroll Card is globally accepted; welcomed at all


locations displaying the VISA/PLUS logos with self-printing POS
terminals. Your card is accepted at nearly 29 million physical locations in
more than 200 countries around the globe, with above 27,000 major
establishments in Pakistan.

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.

24-Hour Customer Service

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:

a. Activating your Card


b. Answering your queries
c. Registering your complaints
d. Reporting a lost / stolen card

Foreign transactions

Transactions made outside Pakistan will be converted from the transaction


currency to US Dollars, based on international exchange rate prevailing on
that date (Currency Conversion rate is a rate selected by VISA from the
range of rates available in wholesale currency markets for the applicable
processing date, which may vary from the rate VISA itself receives, or the
government-mandated rate in effect for the applicable processing date in
each instance, plus or minus any adjustment determined by the issuer). In
order to assist card members, all transactions will be converted to Pak
Rupees for payment. This conversion will be based on the market exchange
rate quoted by authorized money changers and in accordance with the
Bank’s Procedures applicable from time to time.

Zero Loss Liability

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

All Alfalah Prepaid Payroll Card transactions are subject to authorization,


which means whenever you do a transaction the status of your card
account is checked. Therefore you eliminate the risk of spending the money
you don't have - you yourself control your account.

Alfalah Cards SMS Facility

Alfalah cardholders can get SMS for card usage and payment receipt
confirmation, etc. A call can be made at 111-225-111 for registration.

Utility Bills Payment

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.

Credit Card Bill Payments


In order to facilitate our customers, Alfalah Credit Card bill payment can
also be done through Alfalah Prepaid Payroll Card by Alfalah Call Center.
Please call 111-225-111 to pay your credit card bills.

Cash Withdrawal at ATMs and Cash Counters

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.

• Insert your Alfalah Prepaid Payroll Card in the ATM slot.

• Enter your ATM PIN

• Select Cash Advance/Withdrawal

• 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.

Terms & Conditions

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.

CARRY YOUR BANK ACCOUNT WITH YOU WHEREVER YOU GO


WITH ALFALAH HILALCARD...!

Alfalah HilalCard is the revolutionary, new-age form of cash that provides


you greater freedom, security and convenience, combined with the wide
reach of Visa Network.

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.

Alfalah HilalCard - The International Visa Debit Card


The Alfalah HilalCard is an International Visa Debit Card which gives you
an unlimited access to your current / savings account with a simple swipe,
at millions of retail shops and ATMs, worldwide.

Why Should you apply for the Alfalah HilalCard?

No Interest

No Minimum Income Requirement - all you need to do is open an account


in any branch of Bank Alfalah Limited

No PIN required for Retail Transactions

Accepted at more than 1 Million ATMs and 29 Million retail outlets


around the world.

Total Credit Card 671305/=


Total Master Card 4038/=
Total Hilal Card 431648/=
Total Merchant Mchines 27919/=
BTF charges 2%, SBS charges 1.75%, COP charges 2%,
Charges on credit card
Classic Card 1000/=
Gold Card 1500/=
Platinum card 2000/=

Charges on Debit Card


Classic Card 300/=
Gold Card 1000/=
Platinum Card 1500/=
Home Loans

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!.

Payment period ranges from 3 to 20 years

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!

Do we excite your imagination?

Payment period ranges from 3 to 20 years.


You already own a home, but need extra space for a growing family or
want to see some rooms get a new look. Simply apply for financing of upto
Rs. 3.50 million or 40% of the surveyed value of your home and get
yourself the extra space!

You can stretch your payments for upto 10 years.

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.

Home Start is specially designed for young professionals to own a quality


asset
Does your existing installment on a home finance leave you with nothing to
spend? You need not worry any more because we have genuinely attractive
rates and flexible payment options that could leave more funds with you
each month. With our Home BTF, repaying your home finance will not
make you break into a sweat! Transfer upto 100 % of the existing finance.

Stretch your repayment period for upto 20 years once again

Procedure for a Home Loan


The process for a home loan starts when a customer provides all the
required documents like an allotment letter, bank statements, tax returns,
authority to mortgage from a housing authority etc. All these documents go
to the Credit Information Bureau (CIB), a State Bank Department that
provides a Customer Credit Information Report (CCIR), explaining it the
customer is a credit risk or not.

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.

During my internship, I had to make Credit Line Proposals for different


customers that had a loan in progress.

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 %,

Benefits and features


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 limit ranging between Rs. 200,000/- to Rs. 2000,000/- for brand
new cars.
Corporate & Individual Car Leasing

BAL’s recently introduced car leasing facility for individuals and


corporate sector has set new dimensions for the product. Now you are
provided with the option of either to get the vehicle leased or financed.

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}

Bank Alfalah's mark-up rates are as follows :

Financing Product 1Yr 2Yr 3Yr 4Yr 5Yr

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%

Band New Semi Commercial Vehicles (locally


20.00% 20.00% 20.00% 20.00% 20.00%
manufactured)

Second Hand Vehicles 21.00% 21.00% 21.00% 21.00% 21.00%

Corporate Discount Rate


A Corporate Discount of 0.5% shall continue to apply on all above
mentioned rates.

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.

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.

Yes 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

Procedure for Car Financing


The procedure for car financing starts when a customer comes and asks
for a plan for a specified car. When he receives this plan, he will fill an
application form for a car financing, stating the car he wants to finance, its
color, personal details and two references. They also pay a processing fee
which is non refundable.

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.

As part of my internship I had to complete the final legal document signed


by the customer, by writing in detail about the car, the financing period
and witnesses pertaining to the agreement etc.

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

Down payment 20%


2009 2008

(Rupees in’000)

Profit before provision and taxation 4710862 3830717

Provisions (3694546) (2035997)

Profit before taxation 1016316 1794720

Taxation (119281) (493419)

Profit after taxation 897035 1301301

Earning per share Rs.0.71 RS.1.41

SWOT ANALYSIS
Strengths
• Network of branches
• Backed by strong Abu Dhabi Consortium
• Leading private sector bank
• Non stop banking

WEAKNESSES

Staff is lesser

Less motivated staff

Centralized structure of the bank

No proper invigilation by management

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.

The main vision of Bank Alfalah is to become a premier banking


institution in not only Pakistan but also abroad. In achieving this mission,
Bank Alfalah has been successful by increasing its revenues, deposit base
and branches in Pakistan. Although there are no major problems at Bank
Alfalah, some of the problems observed are as follows:
Technological Advancements
Bank Alfalah has equipped its branches with all major IT tools being used
in the industry like ATM’s, fax machines, photocopiers, printers, latest
computers and a good connectivity architecture, however it has been
observed that when its time to work, there are many failures seen in the
different devices used by Bank Alfalah, especially its connectivity
architecture and remains offline with the main server, that creates
problems for the customers.

Training & Development


There are effective training centers of Bank Alfalah at Karachi and
Lahore. For Bank Alfalah I-8 Markaz, it employees get to train at the
Lahore center. The problem with training and development is that it is
only available for the officers of the bank and not for the lower staff
members.

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.

Lack of Employees in some Departments


Although Bank Alfalah is a very good employer of talented professionals at
different branches, however, it was observed that there were some
departments in the bank that lacked the number of professionals in it that
resulted in efficiencies in that department.

New Products Introduction


Bank Alfalah has a wide variety of financial products to cater to the needs
of its competitors; nonetheless the main problem seen is that it is not
introducing innovative products like other banks in Pakistan, for example
Standard Chartered Bank introduced a self depositing machine, a machine
that can be used by consumers to deposit money at any time of the day.

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.

BANK ALFALAH views specialization and service excellence as the


cornerstone of its strategy. The people of bank innovation, creativity,
reliability, customized services and their execution are the key ingredients
for their future growth. Based on this approach, their Treasury Division
and the Structured Finance Unit have been geared to provide specialized
services to the Corporate customers. Revenues from these activities have
started yielding dividends and they expect significant growth in these areas
in the coming years. While building on their in-depth familiarity with their
customers’ needs and anticipated developments in the banking industry,
the Retail and Corporate areas of their operations will continue to provide
a strong and stable base to the business of the Bank.

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.

Their focus would be to constantly seek out growth opportunities through


increased quality assets and by offering a wider range of products and
services to their esteemed customers. There are significant growth
opportunities for BANK ALFALAH and they are confident in their ability
to grasp them. They are committed to enhancing the shareholder’s value
and look forward with greater optimism to a prosperous future for BANK
ALFALAH

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

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