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 Virtual University of

Pakistan
Evaluation Sheet for Internship
Fall 2010

MGTI619: Internship (Management)

Credit Hours: 3

Organization Name:____________________

Evaluation Criteria Result

Student’s Name: Muhammad Naseem___ Written Work Status Pass
Presentation & Viva Voce
Student’s ID: Mc090201879________ Final Result

Supervisor: ______________________

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 PASS
As your Internship Report has been evaluated and you are declared as
“pass” in written work, you are now advised to start preparing yourself
for presentation & viva voce. Read the guidelines for presentation &
viva voce (Lesson: 07) uploaded on VULMS of the course. Also follow
the presentation template to design your presentation power point
slides

The scheduling for presentation & viva voce is in progress. As soon as

your presentation is scheduled, you will be intimated at your VU e-
mail ID.

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 Bank Alfalah Limited

Internship Report

Internee Name: Muhammad Naseem

Internee ID: Mc090201879

Session: 2009 To 2011

Branch Name: Bank Al-Falah Main Bazar Qaboola

Submission Date:
13-07-2011
Virtual University Of Pakistan

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I dedicate my whole work to my almighty Allah who gave me the abilities to complete my
internship report and HIS beloved Prophet Hazrat Muhammad (P.B.U.H) then to the True
Followers His Prophet Hazrat Muhammad (P.B.U.H).

I am humbly grateful to my honorable and respected teacher Sir Sheikh Zeshan, who furnished
me with the opportunity to complete this Research Report, and thereby consolidating my
concepts, enriching my knowledge, establishing my skills and strengthening my confidence,
especially his lectures.

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First of all thanks to Allah who give us the strength to over come all the difficulties and all respects
are for His Holy Prophet Hazrat Muhammad (S.A.W) Thanks to our respected teacher who guide us
in every difficult situation we faced.
Further than of all the data available and information I am thankful to Sheikh Zeshan (Branch
Manager Qaboola Branch) who gave me appropriate knowledge about Bank Alfalah. It is because of
his motivation that I was able to complete my internship in good manner.

Branch Manager : Sheikh Zeshan

Operation Manager : Muhammad Saeed

Remittance Deptt. : M. Mudassar

CRO Officer : M. Tariq

Cash Officer : M. Ghafran

Cash Officer : M. Adeel

Market Officer : Shahid Saeed

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I feel pleasure and honor that I got the opportunity to work in such a private and reputable
Islamic bank of the county Bank Alfalah Limited. During my internship program, I tried my
level best to prepare myself with all important knowledge. In this report, I have struggle to cover
various aspects of bank like introduction, its history, main departments, culture, objectives,
working and also identify its strengths, weakness, opportunities and threats.
I have also mentioned the vision and mission of Bank Alfalah along with the introduction of
branch where I did my internship.
My internship report introduction, History, Hierarchy Chart, Business Volume, Product lines,
Brief Introduction of all departments, Comments on the Organization Structure, Brief
Introduction of the branch where I did our Internship, Starting and ending date Name of
departments, Detail description Internship program, Future prospects of the Organization,
Conclusion, Recommendation for Improvement, Reference & Source and Annexes of Bank
Alfalah limited

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 TABLE OF CONTENTS

Table of Contents Page #

Title Page………………………………………………………..0
Letter Of Undertaking…………………………………………...2
Dedication……………………………………………………….3
Acknowledgement……………………………………………….4
Executive Summary……………………………………………...5
Table of contents…………………………………………………6
Bank Products.…………………………………………………...10
Hierarchy………………………………………………………....25
Plan of my Internship…..….……………………………………..27
Training Program…………………………………………………33
Management Functions…………………………………………...34
SWOT Analysis……..………………………………………….....43
Critical Analysis……………………………………………….......50
Leaerning and Experience…………………………………………52
Conclusion………….………………………………………….…..57
Recommendations...……………………………………………….59

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To be the premier organization operating locally & internationality that provides the complete range
of financial services to all segments under one roof

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

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 Brief introduction of organization

Bank Alfalah Limited was incorporated on June 21st, 1992 as a public limited company under
the Companies Ordinance 1984. Its banking operations commenced from November 1st, 1997.
The bank is engaged in commercial banking and related services as defined in the Banking
companies ordinance, 1962. The Bank is currently operating through various branches in
Pakistan, Bahrain, Bangladesh & Afghanistan, with the registered office at B.A.Building,
I.I.Chundrigar, Karachi.

Since its inception, as the new identity of H.C.E.B after the privatization in 1997, the
management of the bank has implemented strategies and policies to carve a distinct position for
the bank in the market place

Strengthened with the banking of the Abu Dhabi Group and driven by the strategic goals set
out by its board of management, the Bank has invested in revolutionary technology to have an
extensive range of products and services

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 All Product lines
Too much detail of the products were not required. Just give the name of the products.
1. General Banking

i. Deposit Accounts
Non interest bearing checking account
Minimum account opening requirement of Rs. 10,000 only
Debit card can be used to withdraw cash and make purchases at thousands of outlets across
Pakistan which provides access to funds 24 hours a day
No restriction on number of withdrawals and on number of deposits

ii. Current Account

Minimum Deposit requirement of Rs. 50,000 only
higher returns on higher balances
No restriction on number of withdrawals and on number of deposits.
Debit card can be used to withdraw cash and make purchases at thousands of outlets across
Pakistan which provides access to funds 24 hours a day.
Profit is credited to the customer account on monthly basis.

iii. PLS Savings Account

Profit & Loss Sharing Saving Bank Account

Minimum account opening requirement of Rs. 5,000 only
No restriction on number of withdrawals and number of deposits.
Profit on saving accounts is credited to the customer account on half-yearly basis.
Debit card can be used to withdraw cash and make purchases at thousands of outlets across
Pakistan which provides access to funds 24 hours a day.

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iv. Royal Profit

Initial deposit for account opening is Rs. 1,000 with no minimum balance requirement.
Non interest bearing checking account
Maximum 2 deposits & 2 withdrawals through cheque is allowed.
Debit card can be used to withdraw cash and make purchases at thousands of outlets across
Pakistan which provides access to funds 24 hours a day.
No restriction on ATM withdrawal.

v. Alfalah Kifayat

1. Who can open this account?

Any Pakistani resident over the age of 18 can open this account. This account is for
individual/joint customers only. Other customers like companies, corporate etc are not eligible
for opening of this account.

2. What is the minimum & maximum balance requirement to open this account?
Minimum balance requirement for opening this account is Rs. 10,000/- and no maximum limit
3. How often can a customer withdraw funds?
Customers can withdraw funds whenever they like. There is no restriction on number of
withdrawals.

4. How often can a customer deposit funds?

There is no restriction on deposit transactions.

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5. Will customer be issued cheque book and VISA Debit/ATM card?
Yes, cheque book and VISA Debit/ATM card will be issued to customers

Alfalah Mahana Amdan

Alfalah Mahana Amdan is a 3 year TDR with expected rate of profit of 10% p.a. This term
deposit will provide an opportunity to individual/joint customers to enjoy higher returns that
will automatically be credited to his/her current/PLS/RP/BBA account on 1st working day of
each month.
This facility is not available for business and corporate customers.

i. Alfalah Kamyab Karobar

Bank Alfalah presents Alfalah Kamyab Karobar (KK) - a structured, branded, tier-based
current account that caters to your banking needs & aspirations. This product will provide you
the opportunity to enjoy free services alongside state of the art banking facilities, linked
directly to the deposit balances in your KK account.
KK Accounts have strategically been tailored into 3 different tiers, allowing you to choose the
allotted free service to your benefit. The three tiers are as following:
Silver
Gold
Platinum

ii. Lending & Deposit Rates

iii. Lockers
Bank Alfalah provides safe deposit locker facility to its customers for safe keeping of their
valuables like documents, securities and jewellery etc.
Important features of lockers facility are as follows:
Various sizes to choose from small, medium & large
Annual locker rent ranges from Rs.2, 000/- to Rs.4, 000/-.

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Locker rent is waived for customers maintaining a minimum deposit of Rs.2 million in current
account or above US $25,000/- in a current account or US $50,000/- in a savings account.

iv. Remittance

Through our international correspondent banking relationships we provide direct and indirect
foreign currency remittance facility around the world

v. Hilal / Debit Card

In our endeavor to provide you versatile banking options to fulfill your financial needs, Bank
Alfalah Limited presents the Alfalah Hilal Card, a Debit Card which gives you unlimited
access to your current / savings account with a simple swipe at millions of retail shops and
ATMs worldwide. The Alfalah Hilal Card comes with a host of conveniences and benefits
combined with the wide reach of Visa Network, enabling it to be accepted at more than 1.5
million ATMs and nearly 30 million retail outlets around the world, making it the most
acceptable Debit Card available in Pakistan.

2. Financial Services

i. Structured Finance

Structured Finance Department comprises a team of hand picked professionals, dedicated to

syndicated loans and structured products. The team’s expertise is well known in the
marketplace with its capability to assist public & private sector entities, major financial
institutions, multinational corporations, domestic & international institutional investors in
innovative financing including underwriting & private placements

ii. Trade Finance

Inspired by a challenging spirit and an unyielding desire to create a sound and reliable network
of correspondent relationships, the bank has placed great emphasis towards it growth.

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Accomplishing something for the first time requires a special focus

iii. Lease Finance

In modern days leasing has now become an economic and financial reality of primary
importance. It is the originality of the leasing techniques and its economical advantages, which
has enabled it to enter the world of industrial investment in Pakistan and on the international
scene.

iv. SME
Small and Medium Enterprise (SME) means an entity, ideally not a public limited company,
which does not employ more than 250 persons (if it is manufacturing / service concern) and 50
persons (if it is trading concern) and also fulfills the following criteria of either ‘a’ and ‘c’ or
‘b’ and ‘c’ as relevant:
(a) A trading / service concern with total assets at cost excluding land and building up to Rs 50
million.
(b) A manufacturing concern with total assets at cost excluding land and building up to Rs 100
million.
(c) Any concern (trading, service or manufacturing) with net sales not exceeding Rs 300
million as per latest financial statements.
An Individual, if he or she meets the above criteria, can also be categorized as an SME

v. Agri Finance

BANK ALFALAH ZARIE SAHULAT is available for Short, Medium and Long terms.
Bank Alfalah Limited Strategy is to focus on following Objectives:
Provide reliable infrastructure for Agri customers.
Help farmers utilize funds efficiently and effectively.
Provide farmers an integrated package of credit, supervision and technical know-how.

3. Consumer Finance

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i. Credit Cards

Alfalah VISA lets you pay for shopping, travel, entertainment, meals and much more. Card
members are facilitated through a number of promotions from time to time. In addition, there
are a number of strategic business partnerships with leading local and international brands for
purchase of home appliances at exciting Step-BY-Step (SBS) monthly installment plan with
free home delivery at lowest interest rates. Salient features are:
Electricity, Sui Gas, PTCL and Warid bills payment through 24 hour Call Center and Auto
Debit instructions
SMS for card usage, mini statement, payment receipt confirmation, etc.
Cash withdrawal at all 1LINK ATMs
Special offer on Warid post paid connections
Rush now to avail matchless features offered by Alfalah VISA.
.

Platinum Card

It is accepted at nearly 30 million locations in more than 200 countries around the globe and at
over 27,000 establishments in Pakistan

Titanium

Titanium MasterCard is your partner everywhere and is globally accepted and welcomed at
locations displaying the MasterCard logo

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Gold / Classic

A perfect card combination for all segments of salaried & professional individuals

Supplementary Cards

Now you can give Supplementary Cards to anyone you care for

ii. Home Loans

The crown jewel of our Home Finance scheme, the golden opportunity for someone starting a
career to buy an already constructed housing unit early in life! We offer a moratorium of upto 3
years in principal payments, for a financing of upto 25 years. You service the mark-up element
only initially, and principal repayment starts after the end of moratorium period

iii. Auto/Vehicle Loans

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

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Financing limit ranging between Rs. 200,000/- to Rs. 2000,000/- for brand new cars

iv. Prepaid Card

Get familiar with your Alfalah Prepaid Payroll Card

Front

Your Name
Your exclusive 16 digit card number
Validity Period
VISA Logo
Back

A magnetic stripe containing coded information for the security of your card
Your Signature panel
Bank Alfalah contact
VISA Plus Logo
Dove Hologram

v. Debit Card

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Alfalah Hilal Card is the revolutionary, new-age form of cash that provides you greater
freedom, security and convenience, combined with the wide reach of Visa Network.
This single card brings just about everything within your reach. Now, you can use your Alfalah
Hilal Card for all your financial needs around the world, round the clock, wherever Visa cards
are accepted, locally and internationally.

4. Treasury & Intl.

i. Money Market

Short term money market inter-bank trading.

Active Treasury Bills trading in secondary market.
Forward – forward inter-bank money market trading.
Money market linked lending to and borrowing from corporate clients.

ii. Forex Market

Active trading in ready and forward USD/PKR

Active quotations of foreign exchange rates in fifteen major currencies
Information in respect of prevailing rates of most of the currencies of the world for corporate
clients and individuals
Forward – Forward foreign exchange rates of USD/PKR.
Active swap trading in USD/PKR and other major currencies such as EUR, GBP, JPY and
CHF

iii. Correspondent Bkg.

Inspired by a challenging spirit and an unyielding desire to create a sound and reliable network
of correspondent relationships, the bank has placed great emphasis towards it growth.

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Accomplishing something for the first time requires a special focus. It demands foreseeing
possibilities. In our endeavor, to do so, we successfully surmounted problems and difficulties
arising out of issues relating to weak economic conditions of the economy and a continuous
deteriorating status of country risk

iv. Nostro Account

STANDARD SETTLEMENT INSTRUCTIONS

(Conventional Banking Division)
S.No. CURRENCY BANK / COUNTRY ACCOUNT NO. SWIFT CODE.
1. U.S Dollar Habib American 20729686 HANYUS33
Bank ABA# 026007362
New York, U.S.A.
2. U.S Dollar Citibank N.A. 36087144 CITI US 33
New York, U.S.A. ABA# 021000089
3. U.S Dollar Standard Chartered 3582065256-001 SCBL US 33
Bank New York, ABA# 026002561
U.S.A.
4 U.S Dollar Deutsche Bank Trust
04181945
Company Americas, BK TRUS 33
ABA# 021001033
New York, U.S.A.
5 U.S Dollar Habib Bank Limited 21-501239-091
HABB US 33
New York, U.S.A. ABA# 026007809
6 U.S Dollar Mashreqbank 70119307
MSHQ US 33
New York, U.S.A. ABA# 026011743
7 Pound Sterling National Westminster
440-00-04625528
Bank plc London, NWBK GB 2L
Sort Code: 60-00-04
U.K.
8 Pound Sterling Habib Allied Int’l 0115580012900 HABB GB 2L

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 Bank plc Sort Code: 60-95-11
London, U.K. IBAN# GB16 HABB
6095 1180 0129 00
9. Pound Sterling Standard Chartered
01-7079990-01
Bank SCBL GB 2L
Sort Code: 60-91-04
London, U.K.
10. Euro Standard Chartered
424-018080105
Bank (Germany)
IBAN# DE76 5123 AEIB DE FX
GmbH
0500 0018 0801 05
Frankfurt, Germany
11. Euro ABN Amro Bank, 52:23:59:167
N.V. IBAN# NL47ABNA ABNA NL 2A
Amsterdam, Holland 0522359167
12. Euro Commerzbank, A.G. 400880718201
Frankfurt, Germanyz IBAN # DE24 5004 COBA DE FF
0000 0880 7182 01
13. Euro Bank Austria AG 0101-16184/00
Vienna, Austria IBAN# AT79 1100 BACX AT WW
0010 1161 8400
14. Euro HSBC Bank plc 58969095
London, UK Sort Code: 40 05 15
MIDLGB2L
IBAN# GB97 MIDL
4005 1558 9690 95
15. Euro Habib Bank Limited 658-8017001-04
Brussels, Belgium IBAN# BE88 HABB BE BB
658412801741

v. Home Remittance

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Remittances are transfers of money by foreign workers to their home countries. The World
Bank officially estimates that migrants from developing countries sent from abroad, Home
Remittances more than US$ 223 billion to their families during the Year 2005, a figure more
than twice the level of international aid. Remittances are playing an increasingly larger role in
the economies of many countries.

vi. Money Gram

Bank Alfalah limited, in collaboration with Money Gram, offers remittance service to Pakistan.
Money Gram is person to person money transfer service that allows consumers to receive
money in just a few minutes.

Secure and reliable:

An extensive network of quality agents, linked by computer, will transfer your money safely
and ensure that it is handled with care and without delay. Thousands of people already use the
Money Gram service all over the world. It is trusted for its reliability and security.

5. Islamic Banking

i. About Islamic Banking

Great journeys begin with but a single step and mighty oaks are born out of humble seedlings.
Bank Alfalah – Islamic Banking Division (BAL-IBD) – presently a division of Bank Alfalah
Limited – is gearing up to become a separate, full-fledged Islamic Banking entity. BAL-IBD
offers to its customers a broad range of Islamic products under personal, consumer and
corporate banking modes. The array of Islamic instruments at the disposal of BAL-IBD is
equipped to provide efficient and satisfying solutions to our customers’ needs. Our Islamic
products are Shariah-compliant carrying the seal of approval of the Centre of Islamic
Economics, an institution vested with powers to attest authenticity and legitimacy of Islamic
banking products in Pakistan.

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ii. Personal Banking

Bank Alfalah – Islamic Banking Division (BAL-IBD) offers Current, Savings and Term
Deposit facilities to its customers seeking personal banking relationships with the following
features:

Facility Minimum balance Profit‡ Zakat deductions

Current deposit PKR 10,000/= Nil Not applicable

Musharakah PKR 5,000/= Tiered structure, 6 Applicable

Savings deposit monthly pay-out

Musharakah PKR 50,000/= Tiered structure, 6 Applicable

Term deposit monthly pay-out

iii. Corporate Banking

Murabaha Finance
Types of Murabaha:
Local purchases: For purchase of locally available goods
Imported goods/commodities/assets
Mode of repayment:
Immediately in cash
On a mutually agreed future date
Spot Murabaha (Import)
Deferred Sale Murabaha
Trade Finance
Imports
Letter of Credits
Import Murabaha Finance

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Full range of services related to imports e.g. Contract registration, Import bills for collection,
Shipping Guarantees and Advance payments against imports.
Exports
Export Murabaha Finance
SBP Islamic Export Finance Scheme
Other export related services e.g. Collection of export bills, Negotiation under Sight LCs,
Advising/Confirmation/Transfer of Letter of Credits opened by other banks
Bank Guarantees
A host of Guarantee types are offered by BAL-IBD including performance, financial and
payment guarantees. BAL-IBD also issues guarantees securing financing facilities to be
availed from Islamic Banks and/or Conventional Banks’ under Islamic modes of financing.

iv. Consumer Banking

With Alfalah Musharaka homes, you can participate with Bank Alfalah-Islamic Banking
Division (BAL-IBD) in joint ownership of property where BAL-IBD invests a certain amount,
usually up to 80% of the property value. Through monthly payments – a composite of rent for
use of property and purchase of BAL-IBDs’ Musharaka shares/units in the property – to BAL-
IBD you will be able to increase your stake in the property every month. The rental component
will be readjusted every month to reflect your growing share of ownership in the property.
Following purchase of all Musharaka units initially owned by BAL-IBD you shall become the
sole owner of the house with a free Title to the property

Competitors

Al-Baraka

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Faysal Bank
MCB Bank
Allied bank
United Bank
Meezan Bank
Habib Bank
Al-Habib Bank
Askri Bank
NIB bank
Standard Charted
NBP of Pakistan
Bank of Punjab

Organizational Hierarchy chart

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Comments on the Organizational Structure

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Yes, I agree with the organizational structure of Bank Alfalah because their organizational
structure is flexible that’s why their current and future plan in the Islamic country are suitable
for it. Due to their different product lines or service provide sophisticated platform for the
Muslim community to invest their amount efficiently and effectively Low interest rate systems
in all that.

Plan of internship activity plan

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INTRODUCTION OF THE BRANCH:

The Branch is situated at Qaboola. It is launched on the date of december, 2010. The branch is
going well for credits , operations trade load is much lash compared to other branches because
it’s a new branch and Operation trade is more risky and people prefer experienced branches for
this. The graph of bank is going up and up every year. The ratio of profit is increasing at good
percentage. The bank is serving the people at high level of standard by going according to the
whishes of the customers.

PLAN OF MY INTERNSHIP PROGRAM:

I planned for my internship program in Bank Alfalah Limited Because Followings Operations
and services offers Bank Alfalah Limited to its clients.

High Quality Services:

Bank Alfalah Limited give to its clients high quality services according to their requirements.
Innovative Products and Services:
Bank Alfalfah’s Products and services are Innovative and modern that attract the peoples.
Better Performance:
Bank Alfalh’s performance is rising every year amongs other Banks.
Remittance:
In Remittance the Bank Alfalah limited offers to its clients of remit the huge amount of funds
in the type of demand drafts, Mail Transfers and Telegraphic Transfers to where and when the
clients want.
Credits :
The Bank Alfalah Limited offer Credits for SME (Small and Medium Enterprises) Is basic
source of profits of Ban Alfalah Limited.

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Consumer Finance:
In banking business Consumer finance schemes are growing very fast And Bank Alfalah
Limited has a big segment in consumer financing schemes. Bank Alfalfah’s are following
schemes car finance , Home finance and loans for purchasing household appliances
Accounts :
Bank Alfalah has many different accounts for different types of clients like as
Royal Profit Saving Account , Royal Patriot Account , Current Rupee Account and PLS saving
Account. All these accounts are very profitable for its clients.

DURATION OF INTERSHIP

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Starting Date of My internship: 12-05-2011

Ending Date of My internship:22-06-2011

Names of The of the Departments in which I got Training And Duration

 Accounts opening
 Remittances
 Accounts
 Customer services

TRAINING PROGRAM

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The Training Program section is based on my observation , experiences and rotation during my
internship at the Bank Alfalah Limited, Qaboola branch. My internship duration was six
Weeks. I was rotated in Operations Department where I joined many sub Operation
departments like as, Remittance, Account Opening , Accounts departments , Customer Service
Department and then joined Credits Departments in different time periods.

ACCOUNT OPENING DEPARTMENT:

I worked in account opening department for one week with Mr. Tariq Account Opening Officer
. In account opening department I learned first of all In this department about the Account
Opening Procedure. The Account Opening Officer told me the process of Account Opening
procedure. It was my first experience in Bank Alfalah Limited. I got the complete knowledge
and process about account opening. After that in this department , the Account Opening Officer
Mr. Tariq give me task of guiding the new customers of Account Opening Department and
filling of new account opening forms . I performed my duty . I filled a large numbers of
Account Opening forms and give guidelines to customers and also told them the types of
accounts that Bank offers.

ACCOUNTS DEPARTMENT:
In second week my rotation was in Accounts Department.Here the The Head of Accounts
Department was Mr.Aqeel. He give me information about the whole operations that he
performs in Accounts Department. I found here that The Accounts Department plays a vital
role in Bank Alfalah Limited branch. Bank SMART software reduced the burden of Accounts
Department and IT increase the efficiency of bank’s work.

REMITTANCE DEPARTMENT:
In third week of my internship , my internship supervisor Mr. Mudassar (Relationship
Manager) me in Remittance Department and I joined Remittance Department. Mr. Rana Sadat
was the Remittance Officer in Bank Alfalah Limited Qaboola Branch who was very funny .
Here I got the experience about the working of the Remittance Department.I come to know in
this department that how funds transfer.

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CUSTOMER SERVICE DEPARTMENT:

In my forth week I joined Customer Service Department.. First of I get all the information and
operations of the Customer Service department. In customer Service Department , My working
was to giving information to new customers and deliver the information of new offerings of the
Bank Alfalah. My next task that I performed in the customer service department was filling the
slips of online transfer funds .

CREDITS DEPARTMENT:
My forth was in Credits department . I in this department I get the knowledge of Credit
department of Bank Alfalah Limited Qaboola Branch. Manager of Credits helped me very
much for learning the operations of the department.I observed in this department Bank provide
two types of credits 1st One is Funded and 2nd one is Non Funded . In funded Credits funded
facility is that facility in whidh funds are physical involved in this type, Banks provide many
types of finance facilities like as Term Finance, Current Finance Cash Finance FAPC1 (Finance
against Packing credit) and FAPC11(Finance against Packing credit):etc.

Training program
ASSIGN TASKS

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I had a good experience at Bank Alfalah Limited as an internee. There was a much knowledge
for me to learn. I well-read the Operation & Credits Departments of the Bank Alfalah Limited.

DUTIES:

I was assigned the tasks by my supervisors in every Department. So, my duties were different
in different departments. Work Done during my internship at the Qaboola Branch of Bank
Alfalah Limited. Is following:
 I maintain the different types of files according to the department.
 I filled the all types Account opening forms
 Get Signatures from customers checkbook requests.
 Issue Checkbooks.
 Receive ATM card request and fill form.
 Receive checks for Online Transfer.
 Filling the different types of slips and vouchers.
 Get the solution of the customers problem and guide them.
 Receiving documents for credits.

ACCOMPLISHMENTS:

I successfully carried out my tasks and suggest certain ways of customers handling
techniques . I learned about the working of Operations & Credits Departments..

PROBLEMS ENCOUNTERED

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I faced some problems, and then I become familiar with my task. I also faced some problems
for completion of my task. But the staff of Bank Alfalah Limited was very cooperative and
friendly with me and they helped me in solving the problems. They delivered much knowledge
About the operations.

Management Functions

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5.1 Planning
Planning determining organizational goals and the means for achieving them:

5.1.1 Decision Making Process

Bank Al-Falah following the Group Decision Making Process.
At Head Office Level
The President of the Bank is the Chief Executive Officer of the organization. He is the
Chairman of Board of Directors. The Board is responsible for policymaking and
implementation of decision.
The Board of Directors also give due wattage to proposals submitted to them by the
field functionaries by time to time while making policies for bank’s interest. We can say
that there is democratic atmosphere and environment for decision-making process.

At Regional Office Level

The Regional Business Chief preside the Regional Management Team (RMT). All
decisions are made by RMT collectively. All five department’s Regional Chiefs are the
members of this team.

At Branch Level
The branch manager makes decision in association with branch operations manager and
other staff members.

5.1.2 Organizations Current Strategies

The main objective and goal of a commercial bank is to earn profit. Bank Al-Falah
current strategy is to give more loans in retail and commercial sector due to high rate of
markup.
BAL has a big advantage of disbursement of salaries to Government employees and the
Bank introduced a scheme in 2003 “ BAL- Advance salary Scheme”. This scheme
enhanced the profitability of the bank.

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Organizing

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Number of Employees

Year 2002 2003 2004 2010 2006 2007

Number
of 12195 13272 13745 13824 14019 14127
Employees

5.2.2 Organizational Design

Organizational design is the process of developing an organization structure. Organizational

design is the process of developing or changing an organization’s structure. It involves
decisions about six key elements: work specialization, departmentalization, and chain of
command, span of control, centralization/decentralization, and formalization.

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 Departmentalization: Head Office

HOOO

Groups

Divisions

Deptt at Head Office

Regional Offices

Departments at Regional Offices

Wings

Branches

Span of Control
Span of control is the number of subordinates who report directly to a specific manager.
There are three types of branch categories i.e. I, II, & III in Bank Al-Falah.

Category I Branches: Four employees report to their branch manager.

Category II Branches: Eleven employees report to their branch manager.
Category III Branches: Fifteen employees report to their branch manager.

At branches level there is broader span of control but due to tall structure of the organization
we find narrow span of control in the bank.

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 Organizational Hierarchy Chart (Policy Making)

Organizational Hierarchy Chart (Designation Wise)

President

SEVPs

EVPs

SVPs

VPs

AVPs

OG-I

OG-II

OG-III

Clerical

Non-Clerical

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 Decentralization IT is centralized organization.

BAL is an organization which decentralized to the extent that decisions made at lower levels
are made within a general set of policies, procedures, and rules, with decisions not covered left
to the discretion of lower-level managers.

Formalization
One of the newer concepts in organizational design is the team-based structure, which is an
organizational structure made up of work groups or teams that performs the organization’s
work. BAL is also has high departmentalization and more formalization.

Work Specialization
Work specialization is the degree to which the work necessary to achieve organizational goals
is broken down into various jobs. In Work specialization the tasks in an organization are
divided into separate jobs. Another term for this is division of labor. BAL is emphasizing on
work specialization and job specification.
5.3 Managing Change and Innovation

The change management in organization is a difficult process. It is because strategists normally

consider a single variable instead of the holistic view of the organization.
In today’s world perhaps the most frequent and common trigger for organizational
transformation is technology. This transformation occurs on account of revolutionizing
production process, informational and communication technologies or other processes such as
demand management, order fulfillment. It is the technological innovation perceptibly lead to
increased efficiency in value chain activities, especially in primary and support activities of the
value chain. Bank Al-Falah is focusing to manage change environment and innovations.

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Change Management Program: BAL has started an ambitious Change Management Program to
further train its employees to meet the challenges of present day requirements. Training of new
staff: Training and development are the core issues of HR, which will ultimately improve BAL
customer service and help BAL attain the standard of a progressive bank.

5.4 Managing IT and Communication

Today banking is becoming more and more mechanized and it is the I.T. support that can
improve the customer service and reduce cost at the same time. At BAL we have elaborated
plans for transformation of the entire I.T. architecture of the bank by implementing core-
banking solutions. The said technology will not only increase our distribution capabilities
by many folds but will also simplify our internal procedures thereby reducing the
transactional cost and lead-time for service.
BAL has started a number of projects in relation to I.T. Structure-up-gradation. The bank is
expanding its ATM network and connectivity to further expand our reach to the customers.
This year we completed our automation of the government’s tax collection services thereby
opening new opportunities for such services on behalf of other organizations. BAL is also
looking into other I.T. products for salary and pension disbursements and E banking for better
services.

5.5 Leading

5.5.1 Leadership Style this is the leadership style at branch level??

Bank Al-Falah is adopting democratic style of leadership in which employees’ involve in

decision-making. The bank use feedback to coach employees for decision-making process.
Democratic leadership style could contribute to both quantity and high quality of work.

5.6 Controlling

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5.6.1 Controlling Operations

The bank is committed and focused towards good quality customer service and in 2007
with the motto of ‘Putting as smile on our Customers face’; it made concerted efforts and
took a number of initiatives. Workshops and seminars were conducted to disseminate the
very important message of “excellent customer service”. It is transforming our branches to
give a modern look and convenience. A number of branches have been shifted to prominent
and spacious locations. It also have established specialized customer facilitation centers to
exclusively cater to pension payments, utility and government collections. These are expected to
reduce counter traffic at our branches and will increase our distribution channels for better and
convenient services. Business hours have been extended with establishment of customer
facilitation offices at the regional levels to help on the spot resolution of customer complaints.

5.6.2 Controlling Performance

Internal control is the fundamental control of any bank branch. The adequacy of internal controls
determines largely the risk profile of the branch. Almost all the frauds can be analyzed to stem
from faulty internal controls or their absence.
Since internal controls have evolved over the years, BAL has accepted them without question-
until now. Technology of computerization, which has changed the very face of Banking, has
compromised many of the internal controls not only because of other reasons such as execution
of a transaction in a different procedure.
Monitoring progress towards goal achievement and taking corrective action when needed. BAL
is emphasizing on controlling to integration of the activities, plans, attitudes, policies and
efforts of the people of the Bank working together to provide reasonable assurance that the
organization will achieve its objectives and mission.

Performance Appraisal system

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The Bank has introduced performance appraisal system for its employees. In the first phase
executives of the bank have been given increase in their salaries and promotions on the basis of
their yearly performance.

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 SWOT Analysis

 Strengths
 Weaknesses

 Opportunities

 Threats

What is a SWOT?

SWOT analysis is a process to identify where we are strong and where we are vulnerable,
where we should defend and where we should attack. It tells us our strengths, our weaknesses,
the opportunities which prevail in the market and the threats which we may face from our
competitors and other from other potential factors.

This analysis can be performed on a product, on a service, a company or even on an individual.

SWOT Analysis of Bank Al-Falah

Here we have applied this very useful technique to identify the strengths, weaknesses,
opportunities and threats of Bank Al-Falah.

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 Strengths
Strong Financial Position

As we can see in the financial statements of the bank, the financial position of the organization
is very sound and its profitability is in increasing. The Earning per share has been increased on
a rate of about 50%, which is a very positive sign.

Highly Qualified Employees

The bank has highly qualified and skilled workforce and it has succeeded to attract the best
banking professionals from across the country due to its growing pace and sound reputation.

Conducive Environment

The management of the bank is very much concerned with the development of 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.

Govt. Support and Encouragement

As the owners of the bank belong to UAE and the type of their investment in Pakistan is a
foreign investment, the govt. is fully supporting the bank management due to its policy to
maximize the foreign investment in the country, to get the economic prosperity.

Fastest Growing Financial Institution

Due to its successful business policies and the strong financial position the bank has achieved
the reputation of fastest growing financial institution in the country. It has greatly increased the
customer’s confidence in the bank

Huge Expansion Plan

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Due to its strong financial position the bank has undergone a huge expansion plan to compete
with the existing bank all over the country and with the passage of time the branch network is
expanding at a very good pace.

Young and Energetic Workforce

As the bank is a newer one in the country, the bank has an advantage over its competitors
because the majority of its workforce is young and not very much over aged. Thus the bank is
getting maximum out put from its young and energetic workforce by spending comparatively
less on their remunerations.

Islamic Banking Division

The bank is one of the pioneers of the commercial banks who have started the Islamic Banking
along with their conventional banking. The bank has a separate network of its Islamic Banking
Division which has 16 branches across the country and this network is also expanding at a very
good pace.

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 Weaknesses
Waiver of charges

Currently the middle management of bank Al-Falah is the big reason for waiver of charges.
Bank Al-Falah loosing a lot of its income likes (Cheque book charge, online charges, statement
charges, and other things) because of management. This is a weakness of bank Al-Falah.

Inexperienced workforce Earlier you have mentioned workforce as a strength.

As the majority of the workforce consists of young professional, they lack in their experience.
And sometimes lack of experience becomes a hurdle while serving to the customers. It is the
point where they feel difficulty while competing the other bank, which have a very experienced
workforce.

Over work Load on Employees

It was observed in the branch that as compared to huge business the bank is dealing in, the no.
of employees is lesser and thus there is an increased workload on the employees. Due to this
the efficiency of the employees is reduced.

Employees are not very much Motivated

As discussed before, the workload is high and the employees, especially the credit department,
have to do late sittings to complete their tasks. On the other hand the bank has revised its salary
increments policy to decrease the increment rate, as a result a decreased motivation level of
employees is observed.

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 Opportunities
Rapidly Growing Economy

At present the Pakistan’s Economy is growing on a very fast pace. The rapid growth of
economy has resulted in the increase in the growth rate of all economic sectors especially in
the banking sector which is growing at a fastest speed than ever and in future the growth is
expected to increase even a higher rate.

Increased Interest Rates

The SBP has revised the interest policy and the interest rates have been linked with the KIBOR
rates. Due to which the banks interest rate has been substantially increased which will greatly
increase the banks’ profitability.

Mega Projects Financing

As the increase in overall business activity in the country, the investors are launching various
types of Mega Projects especially in housing and textile the bank has a great opportunity to
finance these projects at very profitable term.

Huge Demand for Consumer Financing

The increase in per capita income and overall economy has resulted into a great demand for the
consumer financing especially for home finance and car financing and it is said that this trend
will increase more in future. The bank can earn a lot by focusing on its consumer financing
sections.

Merger with UBL

After the privatization of United Bank Limited, the management of the BAL has purchased the
majority shares of the UBL, and it is planning to merge these two banks. As UBL is the second
largest bank in the country, this merger can make the bank the largest bank of the country.

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Growing Trend of Islamic Banking

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 full fledged Islamic Banking network and the growth in
this particular field can be very fruitful for the bank.

Spending Practices of Mass

As the Pakistani’s are known for their extravagant practices, and to fulfill their funds
requirements they don’t hesitate from getting loans from banks. Thus there is a very good
scope for the bank to run successful business in such circumstances.

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 Threats
Uncertainty of Economy

Although the economy is growing at a good pace, but there are many factors which results in
the uncertain position of the economy. Such as political uncertainty, WTO, increase in poverty
etc. etc. As a result there are permanent threats of future risks and losses for the bank.

High Rate of Inflation

The inflation rate of the country has gone above the 10%. This can result into an unfavorable
situation for the bank. And especially when the ownership of the bank is UAE based, the net
spread for them can substantially decrease.

Trend of Mergers

There is a trend of mergers among the banks to become prominent in the market and to get the
maximum market share. This trend can result into the union of some leading banks which can
give tough time to the bank and it will become difficult for the bank to compete with them.

Privatization of Banks

Due to its privatization policy, the govt. is privatizing the state owned banks. The change in
management may result in the increase in the efficiency and productivity of the banks. Thus it
can become a threat for the bank.

Risk of Defaults

As discussed earlier that there is a trend of launching mega projects in the country. And every
one is involved in this trend without taking any measure for the successfulness of these
projects. This can result into the failure of this project which can make it difficult for the banks
to recover their funds from these defaulters.

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 6. Critical Analysis

During the internship I got practical experience that does not meet the theoretical concepts in
MBA Program. I present here some critical analysis:

Long Process of Transaction: There are long processes for making a transaction in the Bank.
Especially, during the salary days of Government employees, a customer needs one or two
hours to withdrawal his/her cheque.

Training: BAL has no great facility for their employees for training of new technologies. This
situation creates difficulty for handling new challenge.

Departmentalization: I hardly saw any separate department in the branch where I have got
internship accept cash department. An employee deals various nature of work.

Staff Attitude: Due to heavy load of work staff attitude does not ideal for an organization
where public dealing is at large scale.

Work Environment: Work environment was not ideal due to heavy customers visit in a single
day. Furniture, temperature, light and sitting arrangement was not good for customers and bank
employees.

Professional Approach: Work specialization and job specification are found very low in
bank’s employees. Business administration qualities and education is at low side.

Shortage of Staff: There is shortage of staff in the Bank. Number of customer per employee is
very high. Cash department is suffering very badly and facing great deal of over workload.

Less use of Technologies: Staff hesitate to use new technologies. Even old employees are not
able to operate PCs.

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Communication Gap: I feel that there is communication gap between top management and
workers. They have fewer chances to communicate effectively.

Not Focusing on Mission and Objectives: Employees just work and work hard as a routine.
They do not know what is the mission ahead and their objectives are also not crystal clear.

Unjustified Appraisal Criteria: No justified appraisal criteria are implemented for annual
increase in salary and promotion of staff. It creates unsatisfaction among the employees of the
Bank.

Undemocratic Decision Making: I observed that some times employees are not involved in
decision-making process. Manager himself takes decision and orders to make changes.

Standard Procedure not adapted: In theory, standard procedures for practice and process of
transaction are forced to avoid fraud and forgery but I observed that standard procedure manual
volume I, II and III is ignored.

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 Learning and experience
I did my internship in Bank Al-Falah Limited Qaboola. This internship started on 10th July and
ended on 21st August. It is not a very big branch but only a small retail branch of big giants...

It is a new branch and working there for the customers for almost one year.

First day, I reported to the manager of the branch Mr. Zafar Ullah who gave me brief
introduction about the management and working of the branch, he also check my knowledge
about banking by taking a little test and interview. He has also taken a Computer Test from.
Then he introduced me to the other employees.

Management of the Branch

Staff of the branch consists of 27 members:

DESIGNATION NO OF EMPLOYEES

Branch Manger 01

Operation Manager 01

Credit Manager 01

Officer Range I 05

Officer Range II 05

Officer Range III 02

Cashier 04

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 System Administrator 01

Telephone Operator 01

Gun Man 03

Peons 03

Learning from A/c Opening Department

This Branch is having about 2000 accounts but there was only one officer, Mr. Muhammad
Waseem Qaiser to handle this tough work. He has to deal different people.

My experience in this department was really very good. I learnt how to handle different
customers, how to fill Account Opening Form, what are the required documents that should be
with you in order to open an account, what types of account Bank Al-Falah is offering to the
customers, what are the facilities that an account Holder can enjoy and what are the profit rates
Bank Al-Falah is giving to its customers.

I have learnt the procedure that an Account Opening Officer has to follow in order to open and
maintain an Account.

Learning in Remittance and Clearing Department

There were two officers in this department one was Miss. Hina Naeem Khan and the other was
Mr. Nadeem Zahid.

Miss Hina Naeem Khan was handling inward clearing and Outward Clearing. While issuance
of other negotiable instruments like Pay Order, Demand Draft, Pay Slip etc, were handled by
Mr. Nadeem Zahid.

I worked one week in this department.

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In this department I learned that how the transfer of money from one branch to another branch
takes place. In this department It was my responsibility for doing following jobs:-

-->Issuance of Demand draft and their Computer feeding.

-->Responsibility of DD Advice and its Payment.

-->Issuance of Telegraphic Transfers and their feeding in Computer.

-->Payment of IBC (Inward Bills For Collection)

-->Lodgment of LBC (Local Bills For Collection), OBC (Outward Bills for
Collection) and their Realization.

-->Issuance of CDR (Call Deposit Receipt) and its Computer feeding.

Learning from Accounts & Finance Department

There were two officers in this department; Mr. M.Ghfraan and Mr. M.Adeel They have
divided their work between them. Mr. M.Ghfraan handles Reporting and Mr. M.Adeel handles
daily activity checking.

I used to help Mr. M.Adeel in Daily Activity checking, sorting and counting of vouchers and
how to calculate the deprecations of all fixed assets. I learnt from Mr. M.Ghfraan the items of
the Balance Sheet of Bank and saw the format of different reports. He helped me to understand
his work. He told me about the reports that he has to prepare & the purpose of those reports. It
was one of those Departments in which Customer interaction is not involve rather paper
interaction is important.

Learning in Home Finance department

In Home Finance there was one officer – Mr. Kashif. I saw few customers in this department. I
learnt what the debt to equity ratio is in Home Finance, how to calculate installment, what are
the documents required to get this product, what the eligible criterion is for Home Finance

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Agreement, and what is the procedure and activities of this department. What are requirement
to apply for this Finance, what is that maximum limit.

Learning from Trade Finance

This was a new department in Bank Al-Falah Limited Qaboola so there was only one officer
whose name was Mr. Hafiz Farrukh who had experienced in trade finance. I learnt the different
methods of Trade Finance, requirement of importer and exporter before doing import and
export and procedure of opening L/C, I read L/C that helped me understand that what things
would be included in it. In this department few Customers were seen because this was a new
department and it will take time to generate profits for the bank.

Learning in Corporate & SME’s Finance

This department was at second floor of the branch. This department is giving a huge amount of
return to the branch. There were two officers Mr. Irfan Ahmad Khan and Mr. M.Ghfraan. I
learnt that which assets could be leased through this department. What are the documents that
are required from different type of client like sole proprietorship, Partnership, company and
trust. How the risk can be evaluated. Preparations of offer latter, Credit line proposal, approval
process, Borrower’s Basic Fact Sheet for SME’s, Financial Statement of applicant.

Learning From the Car Finance Department

One officer in this department, whose name was Mr. Shakeel used to sit the second floor of the
branch.

Although the Qaboola was small but still the demand for financed cars through Bank Al-Falah
lead this department to prosperity. This department handles a large number of customers daily
and, without overstatement; this department is the third “busiest” department after the Account
Opening Department. It requires constant customer interaction and requires high level of
intelligence to screen the validity of the customers.

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Where as sound marketing skills are required to actually force the walk-in customer to select
Al-Falah Car Financing, still stronger skills are needed to scan the incoming customer for
validity. I learnt how to face the customers conveniently, how roper files should be maintained,
how to apply for a car, what are requirement to apply for this Product, what is that maximum
limit, what is the procedure to this department.

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 Conclusion
If I have to express my experience of internship in Bank Al-Falah Limited Qaboola I would
briefly say:

Bank Al-Falah is a good Organization in the way that anybody can join it for his/ her long-term
career. Overall working environment is comfortable. Management of branch cares a lot of its
employees and considers them as the Asset of bank. Behavior of senior executive of bank is
very polite and they are caring about the individual’s career and their growth.

However management is very demanding about the targets but good reward at the achievement
of assigned targets is awarded.

Employees at Bank Al-Falah are quite efficient. As Qaboola is a new one, its employees have
to bring their bank among the list of good banks. Therefore, they work more than their working
hours and it is all according to their will. It also shows their loyalty, commitment to
organization.

Employees are given the benefits like bonus, gratuity funds, loans, increments, and medical.

All the customers are entertained individually. Same kind of behavior and attention is given to
all the customers. Getting ideas for improvement from customer side is a new idea and that is
working very well in Bank Al-Falah Ltd. All the customers are asked to fill a suggestion form
and the standards of the bank are improved through them.

Prioritizing its product portfolio in line with its corporate and consumer needs and wants the
bank is committed to develop products that give more value to its customers in both the
sectors.

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In bank, all the work is done on computers. All the entries are made in computer. Balance are
fed into the computer. This increases efficiency of the bank.

During my internship training I gathered information regarding how a successful bank

operational aspect decorticated with the practical.

I found my internship training at Bank Al-Falah Limited Qaboola to be a very rewarding

experience. The training was beneficial because it helpful me to aware a real life working
environment.

So far my learning is concerned; all the employees at branch were quite cooperative. They
helped me to understand the activities of a bank to possible extent. Their good attitude gave me
more confidence to learn more and to ask if I have any query in my mind. Besides their ever
going activities they never get irritant by my questioning. I had made an honest effort to
present the working & operation of Bank Al-Falah Limited Qaboola in simplest way.

I feel pleasure that I have really gained a lot during 6 weeks & enjoyed working with
experienced cooperative & intelligent staff.

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 RECOMMENDATIONS
It was an interested experience to do internship in Bank Alfalah Limited. The staff was highly
cooperated and due to their help I learned big deal about modern banking.

I suggest that such an internship program highly integrative for the students of commerce
education so that the students should be enquired with the knowledge of practice world .I do
summarize that it would be a great help to me in selection of job or future field of work.

Here I am putting some suggestions, which will enable the bank to compete with other banks
more effectively & efficiently.

-->It is observed that the employees were overburdened so they have to stay at
branch till late at night. In this way their efficiency is affected and hiring more
employees can reduce their work.

-->The employees should be signed jobs for specific period and than they
should shifted to other department so that they gain knowledge of other jobs.

-->Bank Alfalah Limited should properly advertise and Communicate

to public about the services provided by it, so that more customers will
be attracted.

-->The bank’s management should give more incentives and pay scale of
officers should be revised & improved.

-->System and operations should be more defined and organized.

-->IT draw backs should be improved.

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

-->Audit should be held internally. Rather there should be an Audit Department

in the branch to make audit on daily basis. This can become so helpful as
different banks are having this department of their own.

-->Lockers, ATM, all these facilities should be provided to attract more

customers.

-->Expenditures must be control, which are very high.

Thank you

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