Arslan Javed Final Project

Internship report on Bank Alflah Limited
INTERNSHIP REPORT ON
Bank Alflah Limited

Submitted By
Arslan Javed
A!"#$BA#!%!
&EPART$ENT O $ANA'E$ENT S(IEN(E
(O$SATS Institute )f Inf)rmati)n Te*hn)l)+y, Lah)re
September 2010

COMSATS Institute of Information Technology, Lahore
Department of Management Sciences
Preferen*e
Banking sector owes a pivotal importance in the economy of any country though its
vibrant functions. This is the deep-seated motivator that geared up me to oin any
bank for internship. !oreover" the practice and familiarity learned during this tenure
would also attest very helpful and alleviating in the awaiting proficient life. !aking
analysis of financial statements is an important part of our !BA program. It is a
comprehensive" practical and e#tremely accessible presentation bout Bank Alflah
Limited. I have tried my best to present this report with full description.
$very effort is made to e#pose all the relevant concepts in this report. There is a
balance of clarity. !y obective in making analysis this repot is to provide a
fundamental knowledge about the company. I hope" it serves a stock of knowledge
about the Bank Alflah Limited.
It is the re%uirement of the !BA course that al the student s of !BA have to spend
si# or eight weeks in any organi&ation to get practical e#posure and get familiari&ed
wit the ways to live in the organi&ational environment which is dramatically different
from the educational enoinment. That period is called 'Internship (eriod)
If spends properly and sincerely" enables the students to be more confident" more
knowledgeable" more responsible and more committed to its work in the practical
field. I have also assigned to do internship of si# weeks period in Bank Alflah Limited
it has enabled me to understand the practical scenario and sharpen our decision
making power and utili&ing the resources in an effective manner. *o that our
resources generate ma#imum profit.
In preparing this report. I have putted all my best efforts and tried my level best to
give ma#imum knowledge. +espite of my all coherent efforts. I do believe that there
will be a room for improvements in the efforts of learner like me.
I have strong belief that this report will guide and ease the readers to understand the
operations of banking system and more prominently have good knowledge about
Bank Alflah Limited. ,ne of the most trusty and leading bank In (akistan.
+ear readers" I hope that you will appreciate my report and sense that reading my
repot is not like to waste the time in any respect because of the four principle reason
as under-
./ A conscientious attempt is made to provide .00 1 realistic knowledge of the
real world organi&ation" Bank Alflah Limited.
2/ Almost all the terms are first e#plained in a simple and comprehensive way
used in this organi&ation before bringing them into play in different dealings
so the reader may soundly familiar to the operations performed in the banks.
3/ The data is relevant from beginning to end in this report not even a single
word.
$- LO.IN' PARENTS,
RESPE(TE& TEA(HERS,
/
&EAR RIEN&S
A(0NO1LE&'E$ENTS
All praise 4 thanks go to Almighty ALLA5" the creator who is the entire source of
knowledge 4 wisdom endowed to mankind. ,ffer my thanks from the depth of my
soul to the last messenger 5a&rat !uhammad 6(B75/ " who is forever a torch of
guidance and knowledge of entire humanity.
I have also completed a report based on familiarity with my past studies in order to
get a bit familiar with practical e#periences in the organi&ation. By the grace of
ALLA5 Almighty I have accomplished this report.
I am very thank to the !r. Asghar (racha 6Branch !anger/ and his team especially
to !r. 8adeem Trade officer who provided me every kind of help during internship
and in preparing this report.
I am very grateful to my entire well 9 wisher for this support" love 4 sincerity. !ay
ALLA5 give them reward in kind of 5is bless and love:
Table )f *)ntent
E2e*utive Summary
(ha3ter N)4
5 Intr)du*ti)n
545 Industry Hist)ry and Ba*k+r)und
54% Hist)ry )f Or+ani6ati)n
547 Inf)rmati)n ab)ut )r+ani6ati)n
% Pr)du*ts and Servi*es
7 Or+ani6ati)nal stru*ture / &e3artment
8 Internshi3 E23erien*e
845 Internshi3 E23erien*e
84% 1)rkin+ E23erien*e
847 &uties / Res3)nsibilities
848 A**)m3lishment
849 Pr)blems durin+ Internshi3

9 Internal / E2ternal analysis
945 S:)t Analysis
94% PEST Analysis
947 $arketin+ Strate+y
948 ()m3etitive Strate+y
949 inan*ial Analysis
; ()n*lusi)n and Re*)mmendati)n
< A33endi2
= Referen*es
E2e*utive Summary
(akistan after getting independence" did not
inherent a strong banking industry and since then a number of events in the industry"
like the nationali&ation of banks in the .;<0. 5owever today the banking industry of
(akistan has been growing over the past few years" mainly because of consistent
policies implemented by the government of (akistan. Also the state bank of (akistan
monetary policy has been very friendly toward banking sector.
There are number of different banks established in (akistan" including local
incorporated commercial banks" foreign incorporated commercial banks"
development financial institutions" investment banks" discount 4 guarantee houses"
housing finance companies" venture capital companies" micro finance banks and
Islamic banks.
Bank Alflah Ltd was incorporated in .;;< and was later privati&ed by the government
of (akistan. The Abu +habi =roup bought the maority shares of the bank and so got
the right to control the bank" s operations. *ince the privati&ation of the bank " Bank
Alflah has implemented different policies to make it one of the best bank in (akistan.
Bank Alflah Limited also introducing new products and services and increase its
operations by opening new branches in (akistan.
Today Bank Alflah Limited is operating in more then ;> cities of (akistan and
operating its foreign branches in Bangladesh" Afghanistan" and Bahrain. The total
employees of Bank Alflah in 200; were <"?@2" which increase of .>1 from the past
year was. The increase in the number of employees oining Bank Alflah shows that
people feel confident in Bank Alflah as a prospect employer. Behavior of
employees with customer also helps to increase the number of customer every day.
The financial statistic of Bank Alflah are also as Impressive as their human
resources.
The profit after ta#ation for Bank Alflah in 200A amounted to Bs ."30."30. 6000/
and its total assets for 200A amounted to Bs 3@A";;0"<?@ 6000/.
This figure shows improvement as compared to previous years but in 200; the
earning after ta# reduces to Bs A;<"03>6000/. The reduction in earning is due to the
financial crises in all over the economy. Te stock prices and earning per share of the
bank have also increased over the years but it is before the year 200;.The earning
per share in 200A is ..@. that reduce in 200; earning per share is 0.<..
Bank Alflah Limited promotes its products and services through print and electronic
media. It also promotes itself by sponsoring different events.
Cor Bank Alfalah Limited" it has to compete in an industry that has grown in 200; in
overall assets The maor > competitors of Bank Alflah" pose close competition and
are mainly large nationally incorporated banks and a few international banks" that all
wants to become the leading bank of (akistan" 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.
(HAPTER NO> 5
Intr)du*ti)n
545 Industry Intr)du*ti)n and Ba*k+r)und
It has not so far been decided as to how the word 'Bank originated. *ome authors
opine that this word is derived from the words 'Bancus or Ban%ue" which mean a
bench. ,ther authorities hold the opinion that the word 'Bank is derived from the
=erman word 'Back" which means 'oint 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 reali&e the
importance of money as a medium of e#changeD the necessity of a controlling or
regulating agency or institution was naturally felt. (erhaps it was the Babylonians
who developed banking system as early as 2000 BE. IT is evident that the temples
of Babylon were used as 'Banks because of the prevalent respect and confidence in
the clergy.
At the time of independence" there were ?3. offices of scheduled banks in (akistan"
of which @A< were located in Fest (akistan alone. As a new country without
resources it was very difficult for (akistan to run its own banking system immediately.
Therefore" the e#pert committee recommended that the Beserve Bank of India
should continue to function in (akistan until 30
th
*eptember .;@A" so that problems
of time and demand liability" coinage currencies" e#change etc. are settled between
India and (akistan. The non-!uslims started transferring their funds and accounts
to India. By the end of Gune .;@A the number of officers of
*cheduled banks in (akistan declined from ?3. to 22>. There were .; foreign
banks with the status of small branch offices that were engaged solely in e#port of
crop from (akistan" while there were only two (akistani institutions" 5abib Bank of
(akistan and the Australian Bank. The customers of the bank are not satisfied with
the uncertain condition of banking. *imilarly the Beserve Bank of India was not in the
favor of =ovt. of (akistan. The =ovt. of (akistan decided to establish a full-fledge
central bank. Eonse%uently the =overnor-general of (akistan Huaid-e-A&am
inaugurated the *tate Bank of (akistan on Guly ." .;@A. Thus a landmark was made
in the history of banking when the state bank of (akistan assumed full control of
banking and currency in (akistan. The banking structure in (akistan comprises of
the following types"

*tate Bank of (akistan
Eommercial Bank of (akistan
*aving banks.
Eooperative banks
*peciali&ed credit institutions.
Eommercial banks have been the most effective mobili&es of savings and have been
providing short-term re%uirements of working capitals to trade" commerce and
industry.
7p to +ecember 3." .;<3" there were .@ (akistan commercial banks that functioned
all over the country and in some foreign countries through a network of branches. All
these commercial banks were nationali&ed in Ganuary ." .;<@" and were recogni&ed
and merged into the following five banks-
8ational Bank of (akistan
!EB Bank Limited
5abib Bank Limited
7nited Bank Limited
Allied Bank Limited
The state bank of (akistan is the Eentral bank of the country and was established on
Guly ." .;@A. The separation of $ast (akistan and its repercussion in the form of
economic depression has caused a lot of difficulties to the banking system in
(akistan. The network of bank branches now covers a very large segment of
national economy. The numbers of branches have increased appreciably and there
is now on branch of bank for every 3000 heads of population appro#imately. There
is done reasonable growth in deposits from the establishment of (akistan.
Besides this growth" speciali&ed credit and financial institutions have also developed
over the years.
The =overnment of (akistan in the late ;0s introducing the need for the privati&ation
of state owned banks and companies. The private sector has accepted the
challenge and most of the banks are privati&ed today. The *tate Bank of (akistan
issues the shares of these periodically.
54% Hist)ri*al Overvie: )f BAL
Bank Alfalah has gone through different phases over the years. Its name and been
changed in the following se%uence.
Bank of Eredit and Eommerce International 6BEEI/I.;<2
5abib Eredit and $#change BankI.;;2
Bank AlfalahI.;;<

Bank Alfalah Limited was incorporated on Gune 2.st" .;;< as a public limited
company under the Eompanies ,rdinance .;A@. Its banking operations
commenced from 8ovember .st" .;;<.The bank is engaged in
commercial banking and related services as defined in the Banking companies
ordinance" .;?2. The Bank is currently operating through above 30. branches in ;>
cities" with the registered office at B.A. Building" I.I. Ehundrigar Boad" Jarachi. *ince
its inception" as the new identity of 5abib Eredit $#change Bank 65E$B/ after the
privati&ation in .;;<" the management of the bank has implemented strategies
and policies to carve a distinct position for the bank in the market place.
The Bank has invested in revolutionary technology to have an e#tensive range of
products and services. This facilitates commitment to a culture of innovation and
seeks out synergies with client and service providers to ensure uninterrupted
services to it customers.
This facilitates our commitment culture of innovation and seeks out synergies with
clients and service providers to ensure uninterrupted services to its customers. Fe
perceive the re%uirements of our customers and match them with %uality products
and service solutions. +uring the past five years" we have emerged as one of the
foremost financial institution in the region endeavoring to meet the needs of
tomorrow and today. The bank is listed on the Jarachi and Lahore *tock $#change
with a ticker name of KBACL).
(redit Ratin+

(AEBA" a premier rating agency of the country" has rated the bank 'AA 6double A/"
$ntity Bating for long term and A.L 6A one plus/ for the short term. These ratings
denote a very low e#pectation 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. The ratings of first and second and third unsecured
listed and subordinated TCE issues of (JB ?>0 million" (JB ."2>0 million and
Bs.."32> million have been maintained at AA- 6+ouble A minus/.
547 Inf)rmati)n ab)ut the )r+ani6ati)n
54745 .isi)n
The vision o Bank Alflah is to be the premier organi&ation operating locally 4
internationality that provides the complete range of financial services to all segments
under one roof.
5474% $issi)n

The mission of the Bank Alflah is to develop 4 deliver the most innovative products"
manage customer e#perience" deliver %uality services that contributes to brand
strength" establishes a competitive advantage and enhances profitability" thus
providing value to the stakeholders of the bank.
54747 .alues
The values of Bank Alflah Limited are philosophy of honesty" transparency in
customer dealings" product innovation" e#cellence in customer service and our
commitment to being a responsible corporate citi&en.
54748 Ob?e*tives

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
service. Cor this the management has adopted the strategy of" caring for you M..,ur
customerN
The obective of Bank Alflah is as follows-

To get ma#imum share of the market
To price the products optimally
To e#pand more the network of branches in several other cities of
(akistan as well as in the countries of the world.
To reinforce a corporate culture that fosters learning" creativity and
fle#ibility.
To invest further in banking innovations which include Islamic banking"
*!$
5ome loans and other areas of product development to provide higher
levels of services and values to the clients.
To create ma#imum economic values for share holders through a
constant relationship focuses on financial services.
Leveraging Bank Alflah Limited investments in the IT field.
,n going assessment of opportunities for customers" leading to the
constant development of new products and services.
To promote industrial" agricultural and socio economic processes through
the active participation of private and public sector in the country.
To create best relationship between customer and the banker.
To ma#imi&e profit share
(HAPTER NO> %
PRO&@(T AN& SER.I(ES
%45 Pr)du*ts and servi*es by BAL
The privati&ation process for the e#pansion and diversification of economic
activities in the country also demanded the introduction of new banking
products. BAL took initiative in this direction and for the first time BAL devised
and marketed new products and services with brand names to enter the
varying re%uirements of its diversified customer.
Alflah Islamic Banking offers the largest products range available with any
Islamic banking institution in (akistan including" Iarah" !udarbah" Istisna and
!usharika. All these products have been approved by the Banks
!anagement and cleared by the centre of Islamic $conomics.
BAL currently has following products and services in the banking sector that
are making BAL more prominent in the banking sector
.
%4545 Alfalah $usharaka savin+ A**)unt
A profit and loss sharing saving account is an account characteri&ed by the fact that
profit and loss is shared by the bank and customer. (rofit is distributed according to
the pre agreed ratio and the loss is shared according to the investment made by the
bank and the customer.withdrawls up to a specified limit is restricted. The customer
should have to give < days notice to bank for the withdrawal of money in the
account. The re%uirements for opening of a saving account are different from current
account.
%454% (urrent A**)unt
This account offers unlimited deposit and withdrawal facility to facilitate business
transactions. There is absolutely no limit on number of transactions" deposits" and
withdrawal.
%4547 Alfalah H)me $usharaka
The customer identifies a property that heOshe wants to purchase and approaches
Alfalah-Islamic Banking for financing. 7nder the !usharika 5omes concept Alfalah-
Islamic banking will provide financing up to a ma#imum of A01 of the value of the
property to be purchased on !usharika property is gradually transferred to the
customer through purchase of !usharika units on diminishing !usharaka Basis.
This scheme enables clients to own their dream homes or renovate their e#isting
homes. The musharika home also enables the clients to transfer their conventional
mortgage from an interest based commercial bank to *hariah compliant product.
%4548 Alfalah *ar I?arah

The customer is able to finance their vehicle the smart way with Alfalah. Bases on
the *hariah principles of Iarah" Alfalah Islamic Banking will purchase the vehicle of
the customer choice and later rent to the client at a pre agreed rental amount.
,wnership of the vehicle is transferred to the client upon satisfactory payment of all
the rentals by the time the customers security deposits period e#pires. Insurance
and registration charges are Bourne by the Bank and the customer is not supposed
to pay any rental unless the vehicle is delivered to him.
%4549 $udarbah inan*in+
7nder this product the client and the Bank enter into a sale contract. The re%uired
goods are first purchased by the bank and then sold to the customer for a specific
period and at an agreed !udarbah price.
%4% Other Pr)du*t and Servi*es
Fith the mission to provide all-encompassing banking services to the
customers" Bank Al-Calah has a uni%uely defined menu of financial products.
Eurrently it is one of the most comprehensive portfolios of personali&ed financial
solutions that are custom-tailored to serve the re%uirements not only of conventional
customers but also fulfill the needs of the corporate sector-
!oney =ram
Agriculture loans
*wift
Ear Cinancing
Bupee Travelers Ehe%ue
,nline Banking
Eredit Eards
AT!s
5ome Cinancing
Eorporate and *tructured Cinancing
%4%45 $)ney 'ram

!oney =ram provides the faster transfer of money from one country to other. It is the
easy and safe way to send money to the relatives. The charges is deducted from the
person who is sends the money.
%4%4% A+ri*ulture l)ans
The bank also offered agriculture loan this loan is used various purposes for the
development of agriculture sector. It provide loan for cultivation of land and
e%uipment for the development of this sector
%4%47 S1IT
The bank has also started replacing conventional tele# messaging system for fund
transfer" LOE opening etc." by connecting on-line with the world wide interbank
Cinancial Telecommunication 8etwork 6*FICT/.
%4%48 (ar inan*in+

Ear Cinancing is one of the maor renowned products of Bank Al-Calah
and can be utili&ed in terms of Cinancing of 7sed Pehicles" Loan against Ear"
Balance Transfer Cacility" Befinancing Cacility 6only for Al-Calah Eustomers/ and it is
characteri&ed in terms of-
Lowest !ark up
Lower Insurance
Huick (rocessing
Lower +own (ayment
%4%49 Ru3ee Travelers (heAue
Bupees Travelers Ehe%ue are as good as cash and are accepted at the maor
shops" travel agents" hotels business establishments and all over the country and
abroad. This service is being offered to facilitate instant fund availability to travelers
and business people who used to carry a large sum of money with them.
%4%4; Online Bankin+
To provide enhanced and value added products to customer bank is constantly
striving for additional facilities. Bank provide fully automated on-line telephone
banking facilities to its customers enabling them to carry out banking transactions
like balance in%uiries" statement re%uests" product information and e#change rate.
%47 (redit (ards
Bank Al-Calah Pisa Eard is everywhere and globally accepted and welcomed at
locations displaying the PI*A logo. It is accepted at nearly 30 million merchants and
A<0"000 AT!s in more than .>0 countries around the globe and over .0"000
establishments in (akistan. Al-Calah PI*A pays for shopping" travel" entertainment"
meals and much more. There are 3 maor types of Al-Calah credit cards.
%4745 AlBalah Platinum
It is accepted at nearly 2; million locations in more than .>0 countries around the
globe and at over 2<"000 establishments in (akistan
%474% Platinum (ard
It is accepted at over 2; million locations in more than 200 countries
around the globe and at over 2<"000 establishments in (akistan.
%4747 Titanium $aster *ard
Titanium !asterEard is your partner everywhere and is globally
accepted and welcomed at locations displaying the !asterEard logo
%4748 ')ld / Silver (ard
A perfect card combination for all segments of salaried 4 professional
individuals.
%4749 Su33lementary (ards
8ow you can give *upplementary Eards to anyone you care for...
%474; Aut)mated Teller $a*hine CAT$sD
The bank offers 2@ hours self service banking facilities to it customers on country
wide basis through deployment of Automated Teller !achine. This system allows the
banking facilities such as cash with drawls" cash deposits" funds transfer" balance
in%uiries" account statements. All AT!s are linked through a state-of-the-art *atellite
Based Eommunication *ystem which offers 2@ hours real time service.
%48 H)me inan*in+
!aor features of Bank Alfalah 5ome Cinancing are Lowest !ark-up" Huick
(rocessing" !ultiple Bepayment ,ptions and Cree Paluation. It has been bifurcated
in terms of K5ome Buyer" 5ome Eonstruct" 5ome Improver" and 5ome Balance
Transfer Cacility).
Cinancing Limit - up to Bs. .0"000"000O-
Tenure - up to 20Qears
$%uity (articipation - 301 Borrower O <01 Bank
(HAPTER NO> 7
Or+ani6ati)nal Stru*ture / &e3artments

745 Or+ani6ati)nal Hierar*hy>
Its a general hierarchy of bank which is showing about the main authorities of Bank
Alfalah Limited who are controlling its management in (akistan. Banks
management is divided into different groups" regions and areas. Eo-chairman is
providing supervision to group heads that are responsible for controlling the affairs of
(hief E2e*utive Offi*er
()B(hairman (entral $ana+ement ()mmittee
'r)u3 Heads
Re+i)nal $ana+ers
Area $ana+ers
Hub $ana+ers
Bran*h $ana+ers
different groups. After group heads in the hierarchy" there are regional" hub and area
managers who are managing and guiding the working of different branches of bank.
74545 B)ard )f &ire*t)rs
The board of directors has the authority in guiding Bank affairs and in making
general policies. *ome directors are the personnel of the Bank Alfalah Limited
follows.
H.E. Sheikh Hamdan Bin Mubarak Al
Nahayan
(hairman
Mr. Abdullah Nasser Hawalileel Al-
Mansoori
&ire*t)r
Mr. Abdull Khalil Al Mutawa &ire*t)r
Mr.Khalid Mana Saeed Al Otaiba &ire*t)r
Mr. Ikram Ul-Maeed Seh!al &ire*t)r
Mr. Nadeem I"bal Sheikh &ire*t)r
Mr. Sirauddin A#i# &ire*t)r / (EO
7454% B)ard Audit *)mmittee
The board audit committee is guiding in the affairs and in checking the policies made
by board of +irectors. *ome auditors are the personnel of Bank Alflah Limited.
!r. Abdullah 8asser 5awalileel Al-
!ansoori
+irector
!r. Jhalid !ana *aeed Al ofaiba
+irector
!r.8adeem I%bal *heikh
+irector
!r. Qasar Bashid
*ectary
Audit)r

A4I er+us)n / *)
(hartered a**)untant
(hief O3eratin+ Offi*er
$r4 Shakeel SadiA

()m3any Se*tary
$r4 Hamid Ashraf
Re+istered Offi*e
B4A4Buildin+
I4I4 (handi+ar R)ad
0ara*hi4
Bran*h Setu3>
The branch setup of BAL is following-
Bran*h man+er

O3erati)nal mana+er

Seni)r )ffi*er
Juni)r )ffi*er
74% &e3artment )f BAL>
Account opening +epartment
Accounts +epartment
Trade Cinance +epartment
Agriculture +epartment
Elearing +epartment
Eash +epartment
Eredit Administration +epartment
5uman Besource +epartment
74%45 A**)unts )3enin+ &e3artment
Account opening department is one of the departments that come under
the general banking facilities provided by Bank Alflah Limited. This department
maintains all formalities of the accounts and account holders like it account name"
account holders name" code number and full address. +ifferent debit and credit
voucher come from different department like clearing" Bemittances" Eash" Coreign
e#change and advances posted against some of the maor deposit accounts opened
Accounts opening department is one of the departments that come under the
retailOgeneral banking facilities provided by Bank Alfalah. *ome of the maor deposit
accounts opened by Bank Alfalah are as follows-
$a?)r &e3)sit A**)unt Pr)du*ts
(urrent A**)unt
Eurrent Accounts are non interest bearing accounts that have a minimum account
opening re%uirement of Bs. .0"000. 8o &akat is deducted on the accounts balance.
Curthermore all current account holders receive a 5ilal debit card and there are no
restriction on the number of withdraws or deposits made to and from the account.
Pr)fit/ L)ss Savin+ A**)unt
(rofit4 Loss saving accounts can be opened with a minimum balance re%uirement of
Bs. >"000 and profit is credited on a half yearly basis. There are no restrictions on
the number of deposits and withdrawal made to and from the account and all
account holders receive a 5ilal debit card as well. (rofit and loss saving account
cannot be opened by a business corporation" however can be ointly opened by
individuals. (rofits are paid at 21 on all account balances.
Basi* Bankin+ A**)unt CBBAD
Basic Banking Account was introduced by banks on an order by the *tate Bank of
(akistan and is current in nature. There is no minimum balance re%uirement for
BBA" however initial deposit must be Bs .000. !a#imum two withdrawals and
deposits are allowed by Ehe%ue" while there is no restriction on AT! withdrawals.
R)yal Pr)fit A**)unt
Boyal profit accounts are opened with a minimum balance re%uirement of Bs >0"000.
The basic aim of this account is that the higher the balance the higher the return" as
profit is credited on a monthly basis. The profit paid to account holders is as follows-
(rofits paid on Boyal (rofit Account
Amount (rofit pa.
Crom Bs.>0"000 to ;;;";;; 2.>01
Crom Bs.."000"000 to @";;;";;; 3.>01
Bs.>"000"000 and above 8egotiable
0ifayat A**)unt
Jifayat account is another saving account product that can be opened with a
minimum balance re%uirement of Bs .0"000" with a ma#imum limit of Bs . million.
(rofit is calculated on a monthly basis" while it is credited on %uarterly basis. Bank
Alfalah pays <1 pa interest on Jifayat Account.
$ahana Amdan A**)unt
!ahana Amdan account is Term +eposit Beceipt 6T+B/ for three years that can be
opened with a minimum balance re%uirement of Bs .00"000" with a ma#imum limit of
Bs .> million. (rofits are paid at .01 pa" credited on a monthly basis. ,ther features
of this account include free personal accident insurance and automatic renewal for
another 3 years" after the e#piry of original period.
Alfalah Edu*ati)n
Alfalah education is a one year T+B that can be purchased by people having school
going childrens. A person can purchase a unit for Bs .00.000" with a ma#imum of 3
years. This T+B pays <1" paid at maturity and gives an additional advantage of
giving monthly school fee of the childrens if the breadwinner of the family dies.
ReAuirement )f A**)unt )3enin+
Standard ReAuirements
(hotocopy of computeri&ed 8.I.E
(hotocopy of passport" if computeri&ed 8.I.E not available
Introduction6 $#isting Account 5older of Bank Alflah/
Account opening form duly signed and completed by all concerned parties
Permicular form if signature are not in $nglish
Any photo I+ if computeri&ed 8.I.E is not carrying a photo
Two passport si&e photographs with thumb impression for illiterate
The re%uirements of these accounts are as follows
5D Individual a**)unt
%D ()m3any a**)unt
7D Partnershi3 a**)unt
8D (lubs # Ass)*iati)n a**)unts
9D Trusts
5D Individual A**)unts
There are two types of individual accounts
./ *alaried individual
2/ *elf $mployed
Salaried Individuals
$mployment certificate by the employer acknowledging the individual as
employee along with his salary" designation and period of employment on the
letter head and signed under rubber stamp of company
Attested copy of service card" or any other acceptable evidence of service
Self Em3l)yed
Eopy of 8.T.8 certificate of the individual
A letterhead along with a rubber stamp for proof of business or any other
acceptable evidence for verifiable source
Cor sole proprietorship" letter from the proprietor confirming proprietorship
%D ()m3any A**)unts
In this case the following documents are re%uired
Eopies of 8IE of +irectors of the company
Eertificate of incorporation of business
Eertificate of commencement of business6in case of (ublic Limited Eompany/
Article and !emorandum of Association
Latest copy of Corm-2;
List of +irectors
Eopy of Board Besolution

7D Partnershi3
Attested copy of partnership deed duly certified by notary public and signed
by all parties of the firm
Attested copy of computeri&ed 8.I.E of all partners
Bubber stamp of all partners
(artnership mandate on the firms letterhead to operate the account
Attested copy of registration Eertificate
Attested copy of 8.T.8 certificate
8D (lubs # Ass)*iati)ns # S)*ieties
Eertified copies of rules O By laws
Eertified copies of certificate of Begistration
Besolution of the =overning body O $#ecutive committee for opening of
account authori&ed the person to operate the account and attested copy of
computeri&ed 8.I.E of that authori&ed persons.
An undertaking by all the authori&ed person on the behalf of the institution
mentioning that any change will be informed to the bank immediately
9D Trusts
Attested copy of certificate of registration
Attested copies of Eomputeri&ed 8.I.E of all trustees
Eertified copy of instrument of trust
Board Besolution resolving to open and operate the account
Eertified copy of By- laws.
O3enin+ the a**)unt
The procedure of opening the account is as follows.
A**)unt O3enin+ )rm>
Cirst of all" the customer fills the account opening form 6A,C/. Cilling 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. 5e also signs an undertaking that he will follow the rules and
regulations of the bank.
5D Intr)du*ti)n>
The signature and account number of the account holder introducing the account to
the new person is obtained on the account opening form.
%D S3e*imen Si+nature (ard>
The signature of the client is obtained on a specimen signature card 6*.* Eard/. The
card is obtained with two signatures from the customer. $very time a Ehe%ue is
received for payment from the client" the signature on the Ehe%ue is verified by
comparing it with *.* Eard.
7D ReAuisiti)n sli3
A re%uisition slip for Ehe%ue book is also given to the customer. The customer fills it
and gives it to the account opener.
8D 0n): -)ur (ust)mer )rm
$very account holder fills this form. The basic purpose of this form is to get some
information about the customer.
9D A**)unt Number>
Fhen 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 *.* Eard and account opening form.
;D &e3)sitin+ )f am)unt in a**)unt>
The client deposit cash in the account. Cor this purpose cash pay-in-slip is used. The
minimum initial deposit is fi#ed for each account according to the nature of account.
Cor e#ample for (L* O saving account the minimum re%uirement is Bs.>"000 only.
<D Issuan*e )f a (heAue B))k>
After opening an account with the bank" the account holder makes a re%uest in the
name of the bank for the issuance of a Ehe%ue book. *uch a re%uest is known as
Be%uisition *lip. BAL issues Ehe%ue books of at least 2> leaves. Fhen he used this
book completely then he can apply for another. This process takes a day because
the Ehe%ue books comes from Jarachi head office.
=D Entry )f (heAue B))k>
Before issuance of a Ehe%ue book the bank stamp every leaf with the account
number of the customer" enter it in the Ehe%ue book register and computer and
issues the Ehe%ue book to the customer after his signature on the register.
"D ilin+ )f AO>
Account opening forms are basic documents of the contract therefore these are filed
in numerical order and kept for reference.
5!D Letter )f Thanks
A letter of thanks is prepared. ,ne letter is for the customer and one for the
introducer. ,ne copy is send to the customer and the other copy is kept in the record
along with other documents.
Amendments in A**)unts>
BAL provides the facility of amendments in accounts" whenever re%uired 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-
(han+e )f Address )rm
To change the address of the account holder
(han+e )f si+nature f)rm
To change the signatures of the customer.
Liability # InAuiry )rm
This form is used if some person has ac%uired loan from the bank and he wants to
close his current account " then he fills this form and this form is send to credit
department. Fhen the credit department declares him free from any debt
obligations then his account is closed.
.erna*ular )rm
This form is used when some person wants to sign in any language other than
$nglish.
$andate t) the third 3arty t) )3erate the a**)unt
This form is used to enable any third party operate the account.
(l)sin+ )f a**)unts
The procedure of closing of account is as follows.
Cirst of all the customer gives the re%uest to close the account.
5is signatures are verified.
5e withdraws all his money from his account but in case of current
account Bs. .>0 is 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.
(ermission is granted by the authori&ed person 6the manager/.
Account is closed in the computer system.
5ic specimen signature card is attached with the account opening form
and marked closed.
747 A**)unts &e3artment
$very transaction which takes place recorded in the computer so all transactions
in different departments are forwarded to account department. *ince all vouchers
from different departments are forwarded to current department so this department
tallies all such transactions with current department after maintaining the ledger of
each department. Collowing are different functions performed by this department-
Budgeting
Beports
Cunds management
Activity checking
Beconciliation
Coreign e#change" old Account Eontracts
!aintenance of fi#ed assets and calculation of their depreciation
Test Jeys
Bud+etin+
The main task performed by the accounting department is the preparation of the
budget. Budget is based on forecasting and their own inspiration for future" whereas
forecasting is based on past performance. This is one important task on the basis of
which funds are allocated to various branches and also the targets are determined.
The targets determined +eposits" Advances" and revenues. $very branch prepares
its own budget for the fiscal year and then budgets of all the branches across the
country are consolidated at the head office in Jarachi. In this way a consolidated
budget is also prepared.
Ciscal year of the bank starts from Ganuary to +ecember. Accounting department
starts preparing the budget from ,ctober for the ne#t year.
Before the preparation of budget the bank reviews its sources and funds it has and
the uses of those sources.

The main sources of the bank are the follows-
+eposits" Eapital" Borrowing from other banks" etc
The main uses of a bank are the follows-
Advances" Investment in securities" placement in interbank markets"
,ther things which are undertaken into account while formulating the budget are-
Income" $#penses" etc.
The revenue target is fi#ed keeping in view the past performance. The cost of
generating these revenues is also estimated. Then budget of each branch is
submitted to head office for modifications and for approval. After the modification and
approval the budget for a specific branch is being set by the head office. !onthly
budget meeting is held to analy&e the monthly performance by all the branch
mangers with head office. The actual performance is compared with the estimated
and variance is calculated. Pariance can be negative as well as positive. If there is a
negative variance" this shows managements inefficiency in controlling its e#penses
or incompetence in achieving the desired revenue targets. (roper adustments are
made in the ne#t months target according to the previous months performance
because sometimes the goals which are set by the head office are unrealistic and
unachievable.
Re3)rts
In Bank Alfalah many types of reports are being prepared. These are daily" weekly"
monthly" semiannual and annual reports. These are generated from the main frame
and are used for proper analysis. The following reports are generated daily from the
main frame which are being used by the accounts department for the preparation of
their own reports-
Statement )f affairs>
It includes information about assets" liabilities and their balance. +aily position of
deposit and advances are also calculated in this report.
Subsidiary Statement>
This is a detailed report which includes all the information regarding the statement of
affairs.
In*)me and E23enditure re3)rt>
It includes all the details regarding to both the heads of income and e#penditure in
detail.
R)yal Pr)fit Re3)rt>
It includes the details of the deposit of royal profit account.
(urren*y :ise re3)rt C**yD>
It provides the details of all the deposits currency wise.
Ne: *y re3)rt>
This report includes the information regarding only the new foreign currency
accounts. The old foreign currency accounts are those" which were at the time of
nuclear e#plosions in (akistan and were being free&ed by the 8awa& *harif
government.
Sub ;; Re3)rt>
It contains income" e#penditure" general ledger accounts and their balances.
8ow following are the reports" which are being prepared with the help of the above
reports-
&aily 3)siti)n )f advan*es and de3)sits>
This report is being sent to the head office daily in which the detail is given regarding
the new accounts of deposits and advances.
Statement )f affairs>
This report includes assets and liabilities. Two copies of this report are made daily"
one is sent to the area office and one to the head office for analysis but the format is
different for both of them. *tatement of Affairs also prepared at the weekend for the
whole week as well as at the end of a month.
$)nthly Bud+et Revie: Re3)rt>
This report is made to review the performance of the month by calculating the
variance. And then if the variance is in negative" positive actions are taken and
reasons will also be mentioned in the report.
unds $ana+ement
$very bank in (akistan has an account with *tate bank of (akistan and has to
maintain >1 of the total deposit in the account with the *tate bank. Cunds
management is done only through the main branch. If the bank has so many
branches in a single city then only the main branch is responsible for the funds
management. +aily a report was prepared and reported to *tate bank.
The important factors that affect the report are as follows-
Total +eposit 6of all branches in a single city/
,pening Balance 6closing balance of the previous day/
Inward Elearing
,utward clearing
Ehe%ue issued by *tate Bank
Ehe%ue +eposited
After all the calculations" a result is obtained which signifies the cash in hand of the
respective day. If the cash in hand is sufficient to fulfill the needs of the *tate Bank"
well and good other wise if the cash is not sufficient then the other options are
considered.
In case of shortage of funds" the main branch has the following options" which it can
adopt.
.. TT from 5ead ,ffice-
2. Eover from 5ead ,ffice
3. Cunds from ,ther banks
TT fr)m Head Offi*e>
,ne solution of the problem is to contact and inform head office about our
respective position and demand for funds. 5owever the most fre%uent reason" why
this practice is not followed is that *tate bank has allowed only one TT free of cost
for all the branches in (akistan.
Therefore we first have to confirm head office that whether or not it is sending TT to
another branch of bank Alfalah. If the head office sends us the TT then it cannot
send any other TT to another branch of Bank Alfalah without charges. The charges
are also not negligible for e#ample the charges of TT for an amount of one hundred
million is above ?0"000. Cor this specific reason the TT is not encouraged.
()ver fr)m Head Offi*e>
The most fre%uent option used is to inform 5ead office about the shortage and ask
for cover. The head office then maintains e#tra amount in its account with *tate
bank. The e#tra amount will be the shortage of main branch reported. The main
branch will then pay interest to the head office on a rate of ...>1 per day. The head
office is paid on monthly basis.
unds fr)m Other banks>
In case of funds shortage another bank is contacted with whom the bank has
settlement for instance $mirates bank. If this option is taken the head office is
informed and the head office then pays to the Jarachi branch of the respective bank
from which funds are taken.
A*tivity (he*kin+
Activity checking is the process of the entire banking" which has taken place. A report
known as activity report is prepared on daily basis. The report specifies every
vouchering" which has taken place. *orting is made according to the mainframe-
generated report. All the vouchers are checked that whether they are properly posted
or is there any transaction left to be posted. This checking makes the working of the
bank more efficient and avoids any loopholes.
Re*)n*iliati)n
BAL prepares its reconciliation statements with
5ead ,ffice
*tate Bank of (akistan
Head Offi*e Re*)n*iliati)n>
All the debit and credit entries of the main office account are recorded in the
statement. Then it is checked with physical vouchers and if there is any problem"
they reconcile it. 5ead office e#tract are statements sent by branches to the head
office. They check the outstanding entries" if there is any entry posted by branch but
not by head office they will send their %uery to the branch and branch will respond to
that %uery by sending the re%uired document. 5ead office reconciliation is carried out
in the head officeD accounts department handles in%uiries.
State Bank )f Pakistan>
*B( maintains the account of every scheduled bank including bank Alfalah. The
statement of account reconciliation shows the entries that are passed during the
month in both banks. Bank Alfalah compares the statement with the ledger card of
*tate bank of (akistan in which all entries are recorded done with *B(. If any
amount debited by *B( and Bank Alfalah does not credit that amount" it is added in
the balance of the reconcile statement provided by the *B( to BAL.
$aintenan*e )f i2ed Assets and (al*ulati)n )f their &e3re*iati)n
Account department maintains the record of fi#ed assets. The accounts department
calculates the depreciation the assets by using straight line method. +epreciation is
the allocation of cost of the asset over the useful life. +epreciation is accrued on
monthly basis and charged at year-end. +epartment prepares Asset purchase report
and Asset sale report after every si# months.
+epreciation is charged at the following rates-
Building 2.>1
Curniture .01
Earpets 4 curtains 2>1
$%uipment 201
Test 0eys
Test is a coding system used to authenticate money transactions between banks.
Fhenever money is transferred through TT" the concerned officer re%uests the
accounting department to apply test to the message. The test is applied to the
messageD three copies of this message are prepared. ,ne goes to the test key
department" one to the Tele#Ofa# operator and the third one goes to the department
record. Fhen the TT is received at the other end" this test is verified. The transaction
will be carried out if and only if the test matches with their own test.
Banks have arrangement with other banks with which they have %uite a large volume
of business and it is beneficial to have a direct arrangement with these banks. This
test arrangement can be with banks within country and outside country. Cor e#ample
BAL has test arrangements with AB8 Amro 8.Q" American e#press 8.Q" Eitibank 8.Q"
etc. Fhen this arrangement is carried out a test key is provided to the concerned
bank" which contains codes. This test key is different for every bank. This test key is
also different for inward and outward TT.
In local transfer double coding is used and in foreign transfer single coding is used.
Test key tables are to arrive at the code. *eparate key table are used for different
banks. Twelve branches of BAL have arrangement for local transfer and three
branches are authori&ed for foreign transfer. Cour things should be carefully checked
because code is based on four things-
Branch name
Eurrency
+ate
Amount
Test can be applied on nil amounts. The purpose is to ust secure the transaction.
Another important significance of test is agency arrangement" which bank built with
other banks. In%uiries originated by any bank regarding the delay of any message
are also solved by the bank. They will check the message and will respond to the
%uery.

748 Trade inan*e &e3artment
Trade Cinance involves the import and e#port activities. This department provides
protection to the rights of importer and e#porter. The function of this department is to
serve as a bridge between the importer and e#porter in order to settle a transaction.
Fhen trade is taking place between the representatives of two countries 6e#porter
and importer/" the e#porter involves his bank 6the Advising Bank/ in the transaction"
as he wants to feel secure regarding timely payment of his goods in the re%uired
currency. ,n the other hand the importer involves his bank 6the Issuing Bank/" in
order to get a sense of security regarding timely supply of the re%uired product" in
the re%uired manner.
Trade Cinance +epartment handles two activities--
Import
$#port
I$PORT
Import +epartment of BAL deals with the import of merchandise. Import can be
defined as-
KThe bringing of commodities into (akistan from outside by sea" land or air.)
Be%uirement for the Importer
These re%uirement O document must be fulfilled from importer before doing the
import--
8T8 68ational Ta# 8umber/ certificate
*ale Begistration Eertificate
!embership from Ehamber ,f Eommerce
Huestionnaire duly filled in
8IE 6attested copy/
E23)rts
$#ports are maor sources of earning foreign e#change and play an important role in
the economic development of the country. It helps to utili&e e#cess resources of the
country.
K$#ports mean selling goods to another country.)
$#ports of all eligible commodities through authori&ed banking channels are
admissible under e#change control regulation.
ReAuirement f)r the E23)rter
These re%uirement O document must be fulfilled from e#porter before doing the
e#port--
Account holder of Bank Alfalah Limited
!ust be a (akistani
!embership from Ehamber ,f Eommerce
8T8 68ational Ta# 8umber/ certificate
The person must have the *ales Ta# Begistration Eertificate.
Corm $ 6 e#port form/ dully filled in
*ale Begistration Eertificate
$eth)ds )f &)in+ Internati)nal Trade
Letter of Eredit
Eontract
LETTER O (RE&IT CL # (D>
LETTER Of (redit CL # (D A&.ISIN'
Letter of Eredit 6LE/ is a written and conditional undertaking by a bank on the behalf
of applicant to the beneficiary to pay a certain amount at a certain dateD if the
stipulated terms and conditions are complied with.
The process of International Trade starts with asking of importer to its bank for LOE.
Then importers bank will be called as issuing bank. The issuing bank sends the LOE
to Bank Alfalah Limited. A bank that receives the LOE is called an advising bank
because after receiving the LOE" it performs the LOE advising function. A cover letter
is prepared and is sent to the beneficiary of the LOE" advising him his LOE has
reached Bank Alfalah Limited and he should collect it immediately. A copy of the LOE
is sent along with the letter.
ISS@AN(E O EBOR$S
=overnment has provided facility to e#porter in taking $-Corm from any bank and is
a part of the e#change control mechanism of the *tate Bank of (akistan. Fhen an
e#porter receives an LOE" his ne#t ob is to get an $-form from an authori&ed Bank.
,n the $-form sent by the commercial bank following things are mentioned
+escription of the commodity
Huantity of the commodity e#ported
Amount reali&ed
Coreign bank charges
Eountry of the importer
(ERTII(ATION O THE EBOR$
After filling in the complete information about the goods to be e#ported" the e#porter
brings the $-form to the bank for verification. Bank issues $-form certification to
e#porter and he submits it to the custom officer along with $-form certification to
certify $-form.
&)*uments
After getting the $-form verified the e#porter starts preparing his shipment. Banks
only deal in documents. In order to receive payment from his goods the e#porter has
to send certain documents to the issuing bank via his negotiating bank. These
documents are.
Bill )f e2*han+e
A bill of e#change is an instrument in writing containing an unconditional order"
signed by the maker" directing a certain person to pay a certain sum of money only
to" or to the order of" a certain person or the bearer of the instrument. It is drawn by
the e#porter 6drawer/ and orders the importer or the importers bank 6+rawee/ to pay
to the order of Bank Alfalah Limited 6payee/ a specific amount. If the draft is drawn at
sight" the importer must make the payment on receipt of the documents. If it is time
draft" the payment must be made within the specified time limit.
()mmer*ial Inv)i*e
The e#porter prepares it. Its amount must tally with that of the LOE. It shows the
name and address of the importer as well as the invoice number. This number is
very significant as it is used in all the correspondence between the e#porter and his
bank. It also contains all the specifications of the commodity being e#ported. The
standard definition of commercial invoice is that it is an itemi&ed list of goods shipped
to a buyer" stating %uantities" prices" and shipping charges.
Bill Of Ladin+
The shipping company or the airline that has been assigned the task of transporting
the goods issues these. The shipper must ensure that the goods are shipped and
handed over the right person when documents are presented to him. The standard
definition of a bill of lading is contract between the seller of the goods and the carrier.
The following are types of bill of lading-
,E$A8 Bill ,f Lading
Air Faybill
Inland Bill ,f Lading
Pa*kin+ List # 1ei+ht List
The e#porter prepares these lists in order to show that the consignment is according
to the order of the buyer. It gives a detailed account of the manner in which the
goods have been packed and the number of cartons they have been packed in.
(ertifi*ate )f Ori+in
This document certifies the origin of the e#ported goods. In the case of e#ports from
(akistan" the certificate of origin shows that the country of origin of the goods is
(akistan. The certificate of origin is a document in which the e#porter certifies to the
place of origin of the goods to be e#ported.
EB)rm
It is a necessity for all e#ports out of (akistan. All commercial banks always issue
the $-form in %uadruplicate.
,riginal- is sent to the custom officer
+uplicate- Bank receive the duplicate
Triplicate- is sent to the *tate Bank ,f (akistan
E23)rt .isa
This document is re%uired when the destination of consignment is Eanada" America"
and 7.J. +ifferent countries fi# %uota for different commodities and restrict imports of
those goods with in a specific limit. There fore visa is re%uired which is in fact a
permission to e#port goods to the specified countries.
Payment by im3)rter
$#porters bank sends all the documents negotiated in LE to importers bank. ,nce
the shipment arrives in importing country" documents are kept with the bank until the
importer makes full payment to bank.
(OLLE(TION # NE'OTIATION>
Fhen the e#porter comes to the bank with the documents" he has two options.
*end them for collection
=et Them negotiated
()lle*ti)n
The bank sends the documents on behalf of the e#porter to the importers bank for
payment. The payment is made in (ak Bupees and the e#change rate is the Buying
rate of the day normally called the T.T. Elean Buying Bate. Fhen the reimbursing
bank is to pay Bank Alfalah Limited it credits its nostro account maintained with it
6the reimbursing bank/" and afterwards bank debits the e#porters account with the
local e%uivalent of the e#port proceeds calculated at the TT clean buying rate.
Ne+)tiati)n
The bank purchases the documents from the e#porter i.e. the e#porter gets them
discounted before their maturity. Cor e#ample" the drafts are at ;0 days from BOL
date. In simple words" the payment for the e#ports would be received after three
months. The e#porter might not want to block his funds for such a long time. 5e can
get his documents negotiated the day he presents them to the bank. The e#change
rate he will get will however be lower than the TT clean buying rate because the
bank is paying him an amount that it is going to receive after three months itself.
Eontracts are not negotiated however in any case. This is because they are unsafe
documents and the bank does not take the risk.
&is3at*h
The documents brought by the e#porter are in the form of sets containing an original
and a number of copies. The number of each document re%uired by the importer is
mentioned on the credit. 7sually they are-
!anually signed commercial invoice
Bills of lading
(acking list in %uadruplicate
Bill of e#change
ilin+
A separate file is maintained in each case and if the documents have been
negotiated" it is titled C+B( that is the abbreviation of Coreign +ocumentary Bills
(urchased. If the documents have been sent for collection" a file in the similar
fashion is kept but it is labeled C+BE i.e. Coreign +ocuments *ent Cor Eollection.
(ONTRA(T
The e#porter might e#port the goods based on a E,8TBAET with the importer. In
such a case" there is no surety to the e#porter that the importer will make the
payment. The importer might reect the goods on receipt and deny and payment to
the e#porter. Therefore" the contract is an unsafe document. There are two types of
contracts.
(A& C(ash a+ainst &)*umentsD>
The documents are sent to the issuing bank. The issuing bank informs the importer
that his documents have arrived. The importer deposits the amount of the contract
with the bank and takes possession of his documents have arrived. The issuing bank
then makes the payment to the e#porters bank.
&A C&)*uments A**e3tan*eD>
+rawee takes documents and possession from the issuing bank and signs a bill of
e#change in return giving his acceptance for payment on a specific maturity date.
8ow" if he does not make the payment to the issuing bank no payment is made to
the e#porter and there is no liability on either bank.
749 A'TI(@L@RE &EPART$ENT
Banks Agriculture division deals with the agriculture advances. Bank provides the
Agriculture Advances in order to enhance and support the agriculture sector of the
country. Agriculture advances are of the two types. The types are as follows-
Carm Eredit
8on Carm Eredit
arm (redit
These are the credits provided by the BAL for the purchases of inputs for
development of agriculture sector. Collowing are two main sub classes of Carm
Eredit.
(roduction Cinance
+evelopment Cinance
Pr)du*ti)n inan*e
These are short-term loans. These loans are provided to farmers for purchases of
different type of input" for e#ample" *eeds" Certili&ers" (esticides. These loans are
provided against personal guarantees or mortgage of land as a security. Bate of
profit for these loans is .01.
&evel)3ment inan*e
These are medium or long term loans. These loans are provided for the development
of agriculture sector. !ain purpose of these loans is to purchase instrument-
Tractors
Implements 6Trolley" Thresher etc./
Installation of tube-well
(lanting of garden
The loans are disbursed against security of land 6mortgage/ or any other security
acceptable to bank. The rate of profit for these loans is ..1 to .<1.
NON AR$ (RE&IT
*econd maor form of agriculture advance is 8on-Carm Eredit. These loans are
provided against mortgage of land as a security or pledge of e%uipment as a
Eollateral security. These are medium or long-term investment depending up the
proect. These loans are provided to boost up agriculture sector to provide the
sources of earning of foreign e#change as well as to provide employment to people.
Collowing are the different types of small industries for which loans are provided to
improve the economy of the country-
Cish Carm
Eattle Carm
(oultry Carm
Dairy Farm
Se*urities>
Bankers lend money in the form clean advances against promissory note as well as
secured advances against tangible and marketable. These reports are only valid
!EB normally allow the advances to the customers against the following types of
securities-
Bankers Lien
!ortgage
(ledges
5ypothecation
Bankers Lien
This type of security is accepted in case of advances against share" life policies"
bonds" ornaments and fi#ed deposits etc. It is type of most li%uid security.
$)rt+a+es
There are two types of !ortgage. These are following-
Legal !ortgage
$%uitable !ortgage
Legal mortgage and e%uitable mortgage are accepted in case of immovable
properties like land" building and machinery etc.
Pled+e
This type of security is accepted in case of stocks or raw materials. In a
pledge" the borrower has not right to sell the stocks with the permission of
bank.
74; (learin+ &e3artment
Banks collect Ehe%ue for their customers that are drawn on other banks. This
function of clearing its customers Ehe%ue by a bank is performed for settling
payments through the clearing houses in the *tate Bank of (akistan. In cities with no
*B( coverage" the clearing is than supervised by 8ational Bank of (akistan. BAL
also provides a facility of clearing.
Types of Elearing are follows
Inward Elearing
,utward Elearing
74< (ash &e3artment
Eash department of Bank Alfalah works under the operation department. This
department is given the complete responsibility of cash" as result of transaction in
touch local and foreign currencies. It is also responsible for the book keeping of
these transactions and the safe custody of cash. ,ut of five counters of cash
department one counter is fi#ing for senior citi&ens and females. All counters are
dealing at the same time in deposits" withdraw and online transaction processes.
This department performs the main function.
(ash re*ei3ts
(ash 3ayments
74= (redit Administrati)n de3artment C(A&D
Eredit means belief or trust. KThe %uality of being credible or trustworthy). Another
words we can define credit as Ktrust in ones integrity in money matters and ones
ability to meet payment when due).
Eredit marketing department deals with e#tending loans 6credit facility/ to customers
before sanction advice. *tate Bank of (akistan 6*B(/ has prescribed regulations
which are called K(B7+$8TIAL B$=7LATI,8*). $very bank has to follow these
regulations. If any bank violates the regulations it should be liable for penalties.
The Bank Alfalah limited credit is e#tended on the basis of these rules and
regulations. These regulations tells the term and conditions under which you can
e#tend loans to the borrower and to what e#tent.
Eredit Cacilities
At BAL there are two types of credit facilities
Cunded facilities
8on funded facilities
unded fa*ilities
These are the facilities in which there is direct involvement of cash fund. Collowing
are the funded facilities.
Eurrent finance KEC)
Term finance KTC)
Cinance against foreign bills KCACB)
Cinance against packing and credit KCA(E)
Cinance against imported merchandise KCI!)
Cinance against trust receipt KCATB)
N)n unded fa*ilities
The facilities where there is no direct involvement of banks fund. There are two types
of unfunded credit line facility" which are as follows-
Letter of Eredit 6LE/
Letter of =uarantee 6L=/
74" Human Res)ur*e &e3artment

Bank Alfalah not only is one of the fastest growing bank in (akistan" that provides its
customers with a number of financial services" but is also a great employer of human
resources" that provides its employees with a conducive environment that not only is
challenging but also helps them in applying and gaining knowledge. But in the period
200A to 200; the no of employees decrease due to crisis in the country.
Bat*h Trainees
All employees selected through this process" have to first complete a probation
period before given a complete status of a Bank Alfalah employee.
Cigure .- (rocedure for Accepting Batch Trainees
S)ur*e> Bank Alfalah :ebsite
&ire*t Indu*ti)n )f resh (andidates
Through direct induction of fresh candidates" Bank Alfalah is able to employ
fresh postgraduate candidates for its organi&ation and the process is as follows-
i+ure %> Pr)*ess f)r Em3l)yin+ resh (andidates

S)ur*e> Bank Alfalah 1ebsite
E23erien*ed Pr)fessi)nals
Based on re%uirements of e#perienced staff" Bank Alfalah also recruits talent
from the marketplace. Bank Alfalah offers competitive salary O benefits to worthy
professionals at all levels who wish to oin hands with Bank Alfalah. The procedure
for selecting such professionals is as follows-
i+ure 7> Pr)*edure f)r Em3l)yin+ E23erien*ed Pr)fessi)nals

S)ur*e> Bank Alfalah 1ebsite
Benefits 3r)vided by Bank Alfalah
*ome of the monetary and non monetary benefits that Bank Alfalah provides
to its employees are as follows-
Attractive *alary (ackage
$mployee (rovident Cund
=ratuity Cund
!edical Insurance
Bonuses
Life Insurance
(romotions
Parious types of *taff Loans
Assistance in (ursuing 5igher $ducation
Eash Bewards on completing IB( +iploma
(ha3ter N) 8
Internshi3 E23erien*e
845 Internshi3 e23erien*e
I did my internship at Bank Alflah" Lia%at *haheed road Bhalwal branch for a total
duration of si# weeks and the departments that I have worked during that time are as
follows-
Trade finance
Accounts
Account opening
Agriculture
Cirst day" I reported to the manger of the branch who gave me brief introduction
about the management and working of the branch" he also check my knowledge
about banking by taking a short interview. Then he introduced me with employees.
Total ten employees are working with one manger. *ecurity system is very strict"
hidden cameras are there. Branch environment is very good.
5
st
I worked with trade officer !r. 8adeem *hah. I learned how to fill $-Corm that is
used for e#port of goods. Fhat are the documents re%uired for $-Corm. This form is
issued by the bank to factories for e#port purposes. This form contains three leaf
original for owner" +uplicate for bank" Triplicate for *tate bank of (akistan. The
documents attached with form are commercial invoice" packaging list" good
declared" bill of lading etc
The amount as well as weight" BOL number is written carefully on the form.
In this +epartment I also learned the procedure of foreign inward TT 4 outward TT.
I leaned the detail of transaction in these case perform by the Branch" 5ead office 4
Coreign bank.
Bank also provides the facility of money gram international money transfer. I learned
what the re%uirements to fill the money gram.
%
nd
I worked in account opening +epartment with !.Rubair. I learned how to fill
current and saving deposit slips" how to fill account opening form" JQE 6know your
customers/ forms" 5ow to update accounts on daily basis" what are the re%uirements
of account opening what type of document are re%uired. Fhat types of account Bank
Alflah is offering to the customers. I have learnt the procedure that an account
opening officer has to follow in order to open and maintain an account. *ome of the
maor deposit account opened by bank Alflah was as follows
Alflah $ducation
(rofit 4 loss saving Account
Basic Banking Account
Boyal (rofit Account
Jifayat Account
!ahana Amdan Account
Eurrent Account
If customer wants to close the account then he has to given written application to
head of the ,peration +epartment. After verifies the signature the account will be
close. The Eharges fee is Bs..>0.
I also learned the procedure of issuance of Ehe%ue book. Fhen the Ehe%ue book is
issued then the signature of customer is taken on the Ehe%ue book issuance
register. *tock of Ehe%ue books are balanced at the end of each day and kept under
safe custody.
7
rd
I worked with !r. !a%sood in agriculture department. 5ere I learnt about different
types of loans for agriculture. Loans are sanctioned only to farmers who are the
owner of land. The pass book issued to the farmer. it contains red and green copy
which is filled by Tahsildar. In this book all the detail such as area" productive unit"
location" cultivate or not.
The loan is also given on the behalf of security such as commercial property" +*C 4
8E.
I learnt how to sanction different types of loans" what are the procedures" how to
manage risk" how to check creditability of customers" how to determine interest rate.
The installments are on semi annually and %uarterly basis.
8
th
I worked with account officer !r. Aamir in Account +epartment. I have learned all
the transactions in different departments are forwarded to account department. *ince
all vouchers from different departments are forwarded to current department so this
department tallies all such transactions with current department after maintaining the
ledger of each department. I have learned how to make the budget which depends
on the forecasting of person. +aily" weekly" Huarterly" *emi annually" annually
reports are made that describes the proper analysis of branch. BAL prepares its
reconciliation statements. All the debit and credit entries of the main office account
are recorded in the statement. Then it is checked with physical vouchers and if there
is any problem" they reconcile it.
Account department maintains the record of fi#ed assets. The accounts department
calculates the depreciation the assets by using straight line method
+epreciation is charged at the following rates-
Building 2.>1
Curniture .01
Earpets 4 curtains 2>1
$%uipment 201

84% 1)rkin+ E23erien*e Im3a*t )n *areer
!y internship e#perience has given me a realistic preview of my field of education.
8ow I feel that I m better prepared to enter the world of professional work. I have
come to know and have been appreciated by a number of professionals who are
lending their services to the banking sector for more then a decade. I feel honored
that I have worked such e#perienced professionals.
The overall e#perience of my internship was very good. I learned the sense of
responsibility in its literal meaning. I am now capable of dealing with different sort of
customers" and how to be patient while doing so. Besides this I also gain knowledge
about banking which I previously lacked and many more products being offered by
the bank. 8o doubt this internship gave me the e#perience" which would boos my
confidence to work in future.
847 &uties and Res3)nsibilities
!y duties and responsibilities are as follows-
!aintain a good relationship with the bank senior staff.
Ereate a good and effective learning environment in the bank"
$%ually deal all the type of people belonging to any type any gender" race"
religion etc.
To help the senior staff during working hours to reduce his work load.
Fhenever a customer comes to open their account" they have to fill a
relationship with the bank. As part of my duty I had to fill these forms and then
use the appropriate bank stamps to complete these forms.
!aintain the secret information of customer accounts.
(rovide complete and accurate information to customers about different type
of accounts.
(rovide information to customers about their bank balance and issue bank
statement to those customers who demand this.
Earefully fill $-Corm and check all the figures carefully.
Cill the $-form after carefully checking the weight" BOL number.
+eal with customer in the absence of staff
848 A**)m3lishment
The main purpose of internship is to get a practical e#perience in the market and to
get some practical knowledge. 7sually the period of internship is short but we can
learn a lot from this period. Cirst time in my life when I was doing some reasonable
practical tasks.
I learnt how to implement my !BA knowledge on this ob. I learnt what the
practical implementation of the book knowledge is
It was first time in my life to work whole day in the company with full
responsibility" to go in time and to off in time.
I learnt from this short period of ob is punctuality.
The other thing is dressing" professional dressing matters a lot. By seeing my
senior and collogues I start to copy them in dressing.
It was a big achievement for me" that I learn how to do the work in team and
group of people. Forking in team should be learnt.
+uring my internship I learnt about the value that customer is the only who
come first. The fulfillment of demand of customer is our basic motive.
I learnt that every problem is solved with a systematic process like from the
root of the problem
I also learnt about how to keep different records regarding customers" and
how important they are
I learnt how to deal with customers.
I learnt being a manger how to deal with the subordinate and develop the
good relationship between staff.
It is difficult to communicate with different minds of people by using right
attitude" in the bank I have learnt how to communicate with the customers and
how to get new customers.
I learnt from the organi&ation that how to accomplish the tasks and the
assignments which are assigned to me.
5ow to sit with professional" how to talk and how to work with other also
learning for me.
I learnt how to present the products to customers and how to e#plain the
characteristic of the product.
I also learnt how to maintain good relationship with the owners of different
factories.
849 Pr)blems
Cor any ob skills and abilities are ac%uired to perform the ob but in case to perform
professional task then man should perfect and have a lot of skills to perform any type
of task. But during the internship I faced some problems
There is no proper way to give proper training to internee.
Lack of skill with dealing with different type of customers
+ifficult to perform work in e#cel because maor work is done on e#cel.
,perate different type of computer program especially in software.
Ac%uired the skill of communication 4 other professional skill.
Lack of Jnowledge how to face problems encountered.
Internee is shifted to the department where the work load is greater.
They dont help t great e#tent as such for employees.
+uration of time work is too long that is hurdle doing efficient work in proper
way.
8o proper procedure for transferring in the department.
(HAPTER NO 9
E2ternal / Internal analysis
945 S1OT Analysis
*F,T is stands for strengths" weaknesses" opportunities and threats. *F,T
analysis is a careful evaluation of an organi&ations internal strengths and
weaknesses as well as its environmental opportunities and threats. In *F,T
analysis the best strategies accomplish an organi&ations mission by e#ploiting an
organi&ations opportunities and strengths while neutrali&ing its threats and avoiding
its weakness. +uring my internship I also observe these factors of bank and made a
conclusion which is as follows
94545 Stren+ths
Being the private organi&ation its main aim is not to earn profit but also to
satisfy its customers and slogan of BAL is also the representative of this
purpose as Bank Alfalah KThe Earing Bank).
Bank has AA 6+ouble A/ and A.L 6A one plus/ Eredit Bating for long term and
short term loans respectively.
!ain source of profit for any financial institution is public saving which only
comes from public confidence and BAL is getting this confidence which is one
of the main strengths of bank
Bank Alfalah is also getting fame in the market due to its name KALCALA5)
which is leaving the Islamic and favorable impact on the minds of public.
BAL is providing the facility of !oney =ram to its entire people who are its
customer or not and through this service it has got the leadership in !oney
=ram because any other bank is not offering this service.
Fith in very short period it has got a superb accomplishment which shows the
competency of top management.
(ersonnel of Alfalah are well trained and highly skilled.
Criendly 4 5ealthy Forking $nvironment.
Coreign Trade is the focus of bank. It has become an ideal bank for the
importers and e#porters
Bank Alfalah has a wide network of branches at the ideal locations" catering
the financial needs of its clients.
The management of the bank is very much concerned with the development
and improvement of the working environment. The bank has state of the art
and purpose built branches where all the modern technologies are provided to
get the efficiency of the workforce and the customer satisfaction.
9454% 1eaknesses

Beside all these strengths I also noted some weaknesses in the operations of bank
Alfalah which are described below-
Bank Alfalah is charging online charges for transfer of money but some other
banks not charge online transfer charges.
!aority of the workforce consists of young professional" they lack in their
e#perience. And sometimes lack of e#perience becomes a hurdle while
serving to the customers. It is the point where they feel difficulty while
competing with the other banks.
It was observed that at present the motivation level of the employees is not
very much.
8o ob rotation for employees.
The increased workload has resulted in the reduced efficiency of the
employees. Because now the time re%uired for completing the tasks for a
single customer has been increased. As a result the environment of the
branch has become very messy.
BAL is that it is not offering the loan facility to newly established businesses
because its the BAL policy that it will loan only to that people who are running
their businesses from 3 years.
BALs lending procedure is %uite complicated that some people hesitate to
come as they are re%uiring a huge file of documents.
Bank Alfalah is not offering any credit facility for students.
BAL is not offering the online facility to account holders having photo account.
Pery little advertisement on media.
Low salary package as compared to other banks.
94547 O33)rtunities

It is mandatory to try to make progress with consistency as well as to adopt changes
with needs of time" in order to cope up with both conditions.
Bank Alfalah is spreading its network outside the boundaries of (akistan and
it has more opportunities to e#tend this network as *tate Bank of (akistan has
prescribed new policies in the prudential regulations.
In addition to e#cellent routine banking" it has earned a good name by offering
special products like car" home and credit cards facility. *o the penetration of
these products could enhance market shares.
There is a very good growth trend in the Islamic banking in the country and in
the world as well. BAL has the advantage of having Islamic Banking network
and the growth in this particular field can be very fruitful for the bank" bank
has an opportunity to introduce new products and services in Islamic banking.
,n the ob training 4 coaching sessions can be conducted.
Fork sharing activities should be started so that a person who is working
continuously for .0 hours can get rela#.
Appraisal should be conducted fre%uently so that employees get motivated 4
do their work as a loyal employee
!ove towards technological changes such as $-banking
94548 Threats

Threats are the negative trends in e#ternal environmental factors. As on one side
environment provides opportunities to one organi&ation" on the other hand it also has
to face some threats. Bank Alfalah also has to face this situation.
The conventional banks those having high growth rate and high market share
are always being a threat
There is an average not low turnover rate" mainly because of low incentives
as compared to the other banks.
Large business parties have fewer attractions in being a client of BAL-IB+"
mainly because of e#cessive amount of documentation
,ther foreign financial institutions like Eity Bank" *tandard Eharted etc also
having strong banking policies and theres a chance that people might move
toward these financial institutions to secure their investments" transactions
and related services.
Cor last seven year there is political stability in (akistan but now again a new
layer of political instability arises which effects almost all industries including
Banks.
+ue to economic instability like currency depreciation and inflation" the bank is
constantly facing a threat e.g. in case of inflation the people have low disposal
income which means lower deposits in banks.
,ther investment opportunities like investment in property and gold are giving
people more return as compare to banksD it can decrease the deposits of
bank.
94% PEST Analysis

A broad view of market is important when management is interested in introducing
better services for customers. Bapid technological change" global competition and
the diversity of buyers preferences in many markets re%uire the constant attention of
the market vouchers to identify promises business opportunities" see the shifting
re%uirements of the buyers" evaluate changes in competitors positioning and guide
the choice of which buyers to target and classify them according to respective
segments.
Identification of e#ternal and macro factors that influence buyers and thus change
the si&e and composition of market overtime involves initially building customer
profiles. These influences include-
(olitical environment
$conomic Indicators
*ocio cultural environment
Technological factors
94%45 P)liti*al Envir)nment

Analysis of (olitical environment is very critical and this environment has a strong
influence upon the activities of any organi&ation in a society. (olitical environment
strongly affects the marketing decisions. The political stability of a country has its
impact on the consistency of policies of local government.
The events in the last couple of yearsD ever since the sacking of Ehief Gustice Iftikhar
Ehaudhary" (akistan has faced crisis after crisis" including the lawyers movement"
violence in Jarachi" militancy in CATA and 8FC( and its impact on other parts of the
country" the return of Bena&ir Bhutto and her death" represents that political
conditions is not good for the banking industry of (akistan.
*tability and law and order situation under the political regime is very important
for the economy as a whole. The present state of the government in (akistan is
directly affecting the policies of banks. Eontinuous political changes have disrupted
the policies and obectives at each time every political party comes with its own
policies.
94%4% E*)n)mi* Indi*at)rs

The economy of any country directly influences any financial organi&ation. $conomic
indicators include =ross +omestic (roduct 6=+(/" inflation" balance of payment"
debt of the government.
(akistans economy has witnessed the most challenging period after posting si#
consecutive years of healthy economic growth. 5owever" the strong fundamentals
were compromised to prevailing global crises thats shacked the confidence of global
investors. Cinancial crises that prevails all over the world effects the economy of
(akistan. The consistent increases in inflation rate" increase in bop" reduction in
foreign reserve effects the banking environment in (akistan.
Also the load shading is another factor that affects the (akistan economy badly. This
not the end of the story after this (akistan economy face lot of problems like bomb
attacks in (akistan no electricity and the unstable government" due to this the
investor are not invest in the (akistan and the e#isting business men are loosing
their business unit due to the loss.
+ue to this poor economy" businesses are reaping low profits and stock market is in
great danger. (akistans foreign debts are rising day by day so such a situation is a
big challenge for banking institution to survive. The financial crisis in (akistan has
made the management of BACL tensed to work in such an environment.
94%47 S)*i) (ultural Envir)nment
(akistan is situated at very important geographically location and it has a diverse
culture. Islam is the religion of maority of the population and Islam has deep and
ever lasting influences upon the culture of the people of the area. *o" the life style of
people and attitudes of consumers is favorable for Islamic banking as people are
religious and they want to deal in Islamic finances. (akistani people have a respect
for their religious and cultural celebrations. BAL Islamic banking is taking an
advantage of this socio-cultural environment of (akistan.
About <01 of (akistans population is based on rural areas and literacy rate of the
country is very much low" thus making it harder for banks to mobili&e their deposits
within these regions.
5owever" in today world" the customers are becoming more intelligent and through
media they keep themselves up to date. Thus" the lifestyle and e#pectations of the
customers from the service provider is increasing day by day.
94%48 Te*hn)l)+i*al a*t)rs
Banks in the developed world have been turning to heavy IT investments" which
differentiate their products" provide response times" enhance accessibility and
improve customer satisfaction. Though investing in state-of-the-art host banking
solution" AT! and (,* 6point of sale/ networks" visa" !asterEard" and" smart cards"
tele-banking" internet banking and now mobile banking are common IT investment in
the developed world" it is now that these products and services are gaining faster
acceptance in (akistan.
Banking sector has introduced a lot of innovative services with the help of
technology. Islamic banking is also on its way but it is e#panding slowly as compared
with potential demand of Islamic banking
In BACL technology has great effect on the working environment. BACL is always
willing to introduce new computer systems for keeping its staff up to date. Fith the
successful implementation of new centrali&ed database system" the bank also
achieved remarkable progress in business process re-engineering" turnaround time
compliance by centrali&ing outward remittances" account opening and credit
administration.
947 $arketin+ Strate+y
This is an age of competition. 8umerous organi&ations are providing financial
services to the customer. These days everyone is facing pressure of competitors. In
this world of growing competition" the only way to survive and grow" for an
organi&ation" in the market place is the proper marketing and promotion of its
products. *ame is the case with banking companies. There is large number of
foreign and local banks working in the country and it has been noticed that they are
emphasi&ing much on their marketing strategies. In this scenario" the key for a bank
to succeed and attract its customers is ade%uate promotion of its products 4services.
BACL for the promotion of its new and e#isting products invest heavily" it advertises
its product through-

Ele*tr)ni* media i4e4 televisi)n
Print media i4e4 ne:s3a3er
Billb)ards
Business ma+a6ines
1ebsite
S3)ns)rshi3
94745 Ele*tr)ni*
The maor way in which todays organi&ations promote its products and services is
through television" not only because its economical but also because the visual and
audio aids help in promoting its product.
Television ads for Bank Alfalah mainly try to emphasis the 'The Earing Bank"
message in its advertisements" by showing how its services can help you with the
different financial problems that you face in your every day life. Cor e#ample" an
advertisement showed how Bank Alfalah Eredit Eards helped a couple when they
had no cash left during a shopping trip or how a father happily shows his family a
new car that he had financed from Bank Alfalah.
Another maor way in which Bank Alfalah advertises its products electronically is
through its website" which is designed in an effective manner with detailed
information" so that visitors can effectively know about the different services that the
bank provides.
9474% Print
(rint advertisements are another maor way in which Bank Alfalah advertises its
product to the masses. (rint media advertisements are mainly printed in maor
$nglish and 7rdu newspapers across (akistan.
The messages of these advertisements are mainly of new financial services that the
bank may introduce over time.
94747 S3)ns)rshi3s
Bank Alfalah also gives a significant consideration not only to its product publicity but
also to the creation of public relations. Bank has proves its public goodwill by
contributing money and time to public service and activities. Bank Alfalah has been
sponsoring different sporting tournament" especially cricket which is the most
popular sports activity of (akistanis and is watched by millions whenever there is a
tournament featuring the (akistani cricket team and is thus a great way to advertise
their products. *ome of the tournaments that Bank Alfalah has sponsored over the
year are as follows-
*eries *ponsored By Bank Alfalah
*eries Qear
(akistan Ps $ngland 200>
(akistan Ps Fest Indies 200?
(akistan P* *outh Africa 200<
8ow days" BACL is sponsoring the cricket rankings updates on Ten *ports.
But due to terrorism no series is held in (akistan from previous three years. 8ow the
BAL focuses on the domestic series sponsorship.
948 ()m3etitive Strate+y

+espite notable economic uncertainties" the financial strength of Bank Alfalah
Limited has greatly enhanced during the previous years. The successful e#pansion
program proved their capability and commitment in comparison with the competition
in the financial sector. The Banking structure in (akistan comprises of-
Eentral Bank
Eommercial Banks
Investment Banks
+evelopment finance Institutions 6+CIs/
*peciali&ed Banks
Coreign Banks
Bank Alfalah is a private commercial bank so the maor competitors of Bank Alfalah
are the following-
!uslim Eommercial Bank
7nion Bank Ltd
*oneri Bank Ltd
(rime Eommercial bank
The bank of (unab
Bolan Bank Ltd
Bank Al-5abib Ltd
ABL
Caysal Bank Ltd
(latinum Bank Ltd
949 Rati) Analysis
Batio analysis is an important and age-old techni%ue of financial analysis. Batios are
important and helpful in the reference that-
These simplify the comprehension of financial statement and tell the whole
story of changes in the financial conditions of the business.
These provide data for inter-firm comparison. The ratios highlight the factors
associated with successful and unsuccessful firms" also reveal strong and
weak firms.
These help in planning and forecasting these can assist management in its
basic functions of forecasting" planning" coordination and control.
Batio is a statistical yardstick by means of which relationship between two or
various figures can be compared or measured.
It is defined as a systematic use of ration or interpret the financial statements
so that the strengths and weaknesses of a firm" as well as historical
performance and current financial condition.
These help in investment decision in case of investor and lending decision in
case of Bankers etc.
54 (@RRENT RATIO
Bs.6000/
Ci nanc
ial
position of BAL is strong in 200; as compare to 200A. This ratio tells us about short
term solvency of the organi&ation
Eurrent ratio is showing better trend in 200;. Eash balance is increasing in 200; as
compare to 200A.
%4 (ASH RATIO
Bs.6000
Rs.!!!" #!!$ #!!%
Current assets
Current Lia&ilities
'(((%)'*
*(*+##',
,$**'),'
#++#!#%'
,.,( *.)
Rs.!!!" #!!$ #!!%
Cash -.ui/alent
Current Lia&ilities
,',!'),!*#
*(*+##',
,#,)%(,,,'
#++#!#%'
#.!+0 *.,$0
Eash ratio also describes the better condition for the bank. If the cash ratio increases
it is better for the bank. it shows the financial condition of the bank. It shows the
positive trend in 200; as compared to previous year.
74 &EBT RATIO
+ebt ratio describes the firms debt position as well as its liabilities. it also describe
the level of financial risk. If the ratio is high then it is negative sign for bank. The ratio
is decrease slightly but it is not good for bank overall.
84 1OR0IN' (APITAL
Bs. 6000/
S Eurrent assets 9 current liabilities
200; S ><<<A?>. - 2@"@20"0?> S 33"3>A">A?

#!!% 1 '+#)%,(% 2 *(*+##', 1 ,(,*#),*#'
94 RET@RN ON EE@IT-
Bs.6000/
Beturn on e%uity describes the shareholder earned on their investment in any firm. it
also describe the profitability of the company. Beturn on e%uity in 200; reaches in
lowest position as compared to previous year.
Rs.!!!" #!!$ #!!%
Total Lia&ilities
Total Assets
,))$,)),'
,%$!(!!''
,,*$+)!#'
,+%$$!()+
!.$+0 !.$'0
Rs.!!!" #!!$ #!!%
8.(.A.T T .00
Share hol3er e.uity
%$(!,' 4 *!!
*$++#)$#
*,!*,!*4*!!
*,'$(#(
+.)0 $.)0
;4 RET@RN ON ASSETS
Beturn on assets describes how the management utili&ing the assets effectively to
get ma#imum profit. it describes decreasing trend in 200; as compared to 200A
<4 EARNIN' PER SHARE
$ps describes the profit earned on the each outstanding share of common stock.
The ratio is not favorable for the bank because it decreases in 200;.
=4 RET@RN ON &EPOSIT
"4
(ASH # &EPOSIT RATIO
Bs. 6000/ 200; 200A
Deposit
Cash
.<.<;1 .31
Rs!!!" #!!$ #!!%
8.(.A.T T .00
Total assets
%$(!,' 4 *!!
,%$!(!!''
*,!*,!*4*!!
,+%$$!()+
!.#+0 o.,%0
Rs!!!" #!!$ #!!%
8.(.A.T T .00
5o. of outstan3ing shares
%$(!,'
*,+$*'!
*,!*,!*
($$'!!
!.(* *.+*
Rs.!!!" #!!$ #!!%
8.(.A.T T .00
T!tal Deposits
%$(!,' 6 *!!
,#+('$('#
*,!*,!*6*!!
,!!(,#%'%
!.#%0 !.+,0
('# , ('$ , ,#+
*!! '(,((%,)'*
% ,!!,(,#,%'
*!! ,$,**',),'
This ratio shows the availability of li%uidity to meet its obligations i.e. deposits in case
of any contingency. This ratio has a slight increase in 200; as compared to previous
year 200A.
5!4 NET PROIT $AR'IN

8et (rofit margin measures the sales revenue remaining after all cost and e#pense
including interest and ta#es have been deducted. The net profit margin decrease as
compared to previous year.
Rs.!!!" #!!$ #!!%
8.(.A.T T .00
Sales
%$(!,' 6 *!!
,'''+$,!
*,!*,!*6*!!
,*!+)'%,
!.#%0 !.+,0

(HAPTER NO ;
()n*lusi)n and Re*)mmendati)ns
()n*lusi)n
At present there is no such organi&ation in the world that is free from problem and
challenges. $very concern has to strive and struggle a lot to be more profitable and
to get more competitive edge.
It has been eighteen years since the establishment of Bank Alfalah" and since its
establishment it has aimed to become the leading bank of (akistan by that provides
outstanding services to its customers. The bank has seen phenomenal growth in the
past few years by opening more branches in the country" increasing the deposit
base" while also increasing the assets and profits of the bank. The services that
Bank Alfalah provides have a great market penetration not only because of their
features but also the profit and markup rates that they charge. The management of
BACL is taking strategic steps to enable the bank to emerge as a strong and
progressive institution. It is continuing to make efforts to refine its products and
operations to make them more compatible. 8ew deposit schemes have been
introduced and an action plan to maintain revenue growth in future. As the business
and economic conditions remain uncertain" BAL continues to develop the new
products like it has been doing in past.
Re*)mmendati)ns
After doing internship of si# weeks in Bank Alfalah Limited" I would like to give some
recommendations to count over some problems.
Bank should prefer to promote worker on the basis of their talent and avoid
going for personal like and dislikes. It can be harmful for the organi&ation in
the long run.
In Bank Alfalah" there is misdistribution of workD some people are over
burdened with the work. *o I suggest that there should be fair distribution of
work in all the departments.
Bank Alfalah is only dealing in !oney =ramD it should also starting providing
the service of other money transfer lines like Festern 7nion.
BAL should provide loan to students at low mark up rate and easy terms 4
conditions.
Bank Alfalah Limited needs to use more marketing channels such as radio to
make the public aware of its products and services. In the presence of intense
competition Bank Alfalah Limited has to reali&e the importance of marketing.
Bank Alfalah has e%uipped its branches with all maor IT tools being used in
the industry like AT!s" fa# 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
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 a number of incentives to its employees" like
personal loans at nominal markup but they are only provided to employees
that are in higher ranks.
$ducation fees are also returned by Bank Alfalah to its employees" after the
have finished their studies.
Bank Alfalah Ltd should continuous to e#pand its business" by increasing its
deposit portfolio through aggressive market penetration strategies.
The top management should immediately start thinking in terms of rotating the
employees in various departments" as this transforms work force into human
capital" if a particular individual keeps on employing hisUher efforts in one
sphere of banking it would not only create a sense of monotony" but also not
help improving the skills of Bank Alfalah Limited employees.
Bank Alfalah Limited should evolve a very serious management policy to
attract multinational corporations as its clients. This action" if actuali&ed" would
not only prove to be highly profit generating" but it would also contribute a lot
towards BACL's image building.
Bank Alfalah limited has the web site" which has not been updated. The web
site is very less informative and it wont leave a good impression on the visitor.
*o I suggest that it should be updated to meet the re%uirements of the
visitors.
(articipative management concept should be adopted" where ideas from the
employees should also be taken" not only for developing products but also on
service" efficiency" employee morale etc. in order to improve them.

(HAPTER NO <

APPEN&IF
A(($8+IT-A
Balance *heet of BAL
200> 200?
Cash an3 &alances
7ith treasury &an8s 2@"<AA"?2> 2<"A>;"3?0
9alances 7ith other
&an8s ;"<.3"3?; .2"<3.";>2
Len3ing to financial
institutions 2<"0>0"@;3 .2"@>?"?>3
In/estments ><"@2>"<00 >?">02"2.0
A3/ances ..A"A?@"0.0 .@;";;;"32>
Other assets 3"A>.">2; >"?33"0>.
Operating fi6e3
assets ?"?20"0?< .0">02";;0
Deferre3 ta6 asset
TOTAL ASSETS %8=,757,<"7 %<9,;=9,985
9ills paya&le 3"<33".2@ 3"0;.".3>
9orro7ings from
financial institutions >"A@@"3A; A"3;@".30
Deposits an3 other
accounts 222"3@>"0?< 23;">0;"3;.
Su&or3inate3 loans 3"223"3>> 3"222".0?
Lia&ilities against
assets su&:ect to
finance lease - -
Other lia&ilities >"2.;"??? <"30>"@;?
Deferre3 ta6
lia&ilities @A@"0?? .";2."33A
TOTAL
LIABILITIES 2@0"A@;"??< 2?3"@@3">;?
R-;R-S-5T-D
9<
Share capital 3"000"000 >"000"000
Reser/es 2"3>."2.A 2"<@;">33
=nappropriate3
profit ."3A?"A@> 2"A23"0<2
Surplus on
re/aluation of assets <2?"0?3 ."??;"3@0
Total EQUITY <"@?@".2? .2"2@.";@>
Total Liabilities
and Equity %8=,757,<"7 %<9,;=9,985
APPEN&IFBB Balan*e Sheet )f BAL
200> 200? 200< 200A 200;
Cash an3 &alances
7ith treasury &an8s 2@"<AA"?2> 2<"A>;"3?0 2;"@3?"3<A 32"?A<"33> 3>"0>?"0.2
9alances 7ith other
&an8s ;"<.3"3?; .2"<3.";>2 .A"3A0"<3A 2.">A."0@3 22"<22"?3;
Len3ing to financial
institutions 2<"0>0"@;3 .2"@>?"?>3 3"@>2"0>; 3"3.>">00 .@";@<"@3>
In/estments ><"@2>"<00 >?">02"2.0 AA"@;.">?@ <>";<3"23A ;;".>;";><
A3/ances ..A"A?@"0.0 .@;";;;"32> .<.".;A";;2 .;."<;0";AA .AA"0@2"@3A
Other assets 3"A>.">2; >"?33"0>. ?"0.3"0;< ;"A?;"3?< .@"?@;"3A0
Operating fi6e3
assets ?"?20"0?< .0">02";;0 ..";22"32@ .3"<<3"2;3 .@"@;2".;@
Deferre3 ta6 asset
TOTAL ASSETS %8=,757,<"7 %<9,;=9,985 7%=,="9,59% 78=,""!,<;8 3A;"0<0"0>>
9ills paya&le 3"<33".2@ 3"0;.".3> @".3A"2@3 3"@>2"03. 3"<??".@@
9orro7ings from
financial institutions >"A@@"3A; A"3;@".30 2."230"?;< .3"?;0"222 20"?>3";2.
Deposits an3 other
accounts 222"3@>"0?< 23;">0;"3;. 2<3".<3"A@. 300"<32"A>A 32@"<>;"<>2
Su&or3inate3 loans 3"223"3>> 3"222".0? 3"220"A>A 2"><.".?; <"><0".A.
Lia&ilities against
assets su&:ect to
finance lease - - - - -
Other lia&ilities >"2.;"??? <"30>"@;? ;">3."A?0 .."2;."2A0 .0"00?"<A?
Deferre3 ta6
lia&ilities @A@"0?? .";2."33A ."3<;"A0; 20A"@?> .<;"A>.
TOTAL
LIABILITIES 2@0"A@;"??< 2?3"@@3">;? 3.2"?<>"30A 33.";@?"02> 3??";3?"?3>
R-;R-S-5T-D
9<
Share capital 3"000"000 >"000"000 ?">00"000 <";;>"000 .3"@;.">?3
Reser/es 2"3>."2.A 2"<@;">33 2"@.@"A33 3".??"0>? 3">A<";?;
=nappropriate3
profit ."3A?"A@> 2"A23"0<2 @"A>."A@0 3"@@<"@?< 2"?;0"<2A
Surplus on
re/aluation of assets <2?"0?3 ."??;"3@0 2"@>3".<. 2"@3?"2.? 2"3?3".?0
Total EQUITY <"@?@".2? .2"2@.";@> .?"2.;"A@@ .<"0@@"<3; 22".33"@20
Total Liabilities
and Equity %8=,757,<"7 %<9,;=9,985 7%=,="9,59% 78=,""!,<;8 7=",!<!,!99
Referen*es
www.bankalfalah.comOaboutOdownloadOBALAnnualBeport200;.pdf
www.sbp.org.pkOstatsOBalanceO...200AOBank120Alfalah120Ltd.pdf
http-OOen.wikipedia.orgOwikiOBankVAlfalah
http-OObankalfalah.comOaboutOfinancialVperformance.asp
http-OObankalfalah.comOaboutOdownloadOBank120Alfalah120Annual120+
http-OObankalfalah.comOaboutOdownloadOBank-Alfalah-Huarterly-*ep-200;.pdf
Issues in (akistans $conomy by *. Akbar Raidi
www.world3.3.comOpakistanVbankValfalah.html
wrightreports.ecne#t.com W $arnings Analysis Beport
http-OObankalfalah.comOaboutOhistoryOlink-tdopS.A@A@A>

Arslan Javed Final Project

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Internship report on Bank Alflah Limited

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