Académique Documents
Professionnel Documents
Culture Documents
LIMITED
Bank of credit and commerce international (BCCI) was a Pakistan
based bank established by Mr. Agha Hassan Abdi from UBL in
association with U.A.E and Europe. BCCI has its branches in 74
different countries of the world. It had its three branches in Pakistan.
1991, The BCCI was banned, when it was accused by the European
countries that the bank was involved in some illegal operations with
gulf countries. The major reason behind European accusation was that
BCCI was of Islamic mode. Therefore the bank was closed due to
international pressure. Then, its 3 Pakistani branches were taken over
by Government of Pakistan which were named as Habib credit and
exchange bank and these were working as subsidiary of Habib Bank
Limited.
Following the privatization in July 1997, Habib credit and exchange
bank assumed the new identity of Bank Alfalah on February 25, 1998.
It is now Abu Dhabi based bank as the family of Sheikh Nahayan
Mubarak Al-Nahayan purchased 70% of its shares and 30% shares
remained with Habib Bank on the behalf of government.
It has it 45 branches in 21 cities in Pakistan. The Multan branch has
been opened in May 1999. It is not listed in any stock exchange of
Pakistan. Alfalah has emerged as one of the leading commercial banks
in the financial sector of Pakistan. Charged with strength of Abu Dhabi
consortium and under the leadership of his highness Sheikh Nahayan
Mubarak, minister of higher education and scientific research and
prominent member of Royal family. The bank is energized with vision,
envisaging.
The development of various sectors in Pakistan. The bank has already
made significant contribution in building and strengthens both
corporate and retail banks sector in Pakistan. Assessment of the needs
and wants of customer is an on going process at BAL, which help to
centennially develop new products of services. Designing the product
portfolio in response to royal patriot, royal custodial, Alfalah can
financing, Alfalah rupee traveler cheques home loans are prime
example of quality innovation providing timely banking opportunities
to customer. To continuously offer courteous, professional and
advanced banking going through training programs with focus to
information technology has recently rejuvenated solution the team of
bank.
With their key indicators of progress a steady soaring to new heights,
the bank is committed to dedicate all its energies, resources and time to
bring higher value and satisfaction to their customers and employers.
The graph of the bank is going up and up every year. The ratio of profit
is increasing at a good percentage. The bank is serving the people at
high level of standard by according to expectation of customers.
THE VISION
Our vision is to be a leading financial institution, with a niche in areas
where we have a competitive advantage with complete banking
solutions. Our focus is on improving performance in each of our
businesses to achieve consistent and superior returns for our highly
valued clients and stakeholders.
THE MISSION
Our mission is to maintain a competitive edge in quality banking,
customer service and profit performance. Our activities are geared
towards making Bank Alfalah a responsible corporate citizen. The
emphasis on “Quality & Innovation” will remain our key mission
statement. We will continue to strengthen our position as the leading
provider of quality financial services in Pakistan.
THE PHILOSOPHY
Excellence in service
Quality performance
Product innovations
THE BOARD
H. H. Sheikh Nahayan Mubarak Al-Nahayan
Chairman
CORPORATE INFORMATION
Company Secretary
Mr. Hamid Ashraf
Auditors
A. F. Ferguson & Co.
Chartered Accountants
Head Office
B. A Building
I. I. Chundrigarh Road
P.O. Box 6773
Karachi
EXECUTIVE COMMITTEE
Mr. Mohammad Saleem Akthar
Chairman
BRANCHES NETWORK
Bank Alfalah has 45 branches in 21 cities of Pakistan. Detail as under:-
Karachi
Main branch, B.A. Building, I.I. Chundrigar Road
Cloth market branch
Karachi Stock Exchange Branch
Clifton branch
Shahrah-e-Faisal Branch
P.E.C.H.S Branch
Timber Market Branch
Defence Housing Authority Branch
Gulshan-e-Iqbal Branch
Jodia Bazar branch
Korangi industrial area branch
M.A. Jinah Road Branch
North Napier Road Branch
S.I.T.E Branch
Paper market branch
North Karachi branch
Lahore
Gulberg branch
Defense branch
Circular road branch
Township branch
LDA Plaza branch
Badami bagh branch
Allama Iqbal Town Branch
Shah Alam Market Branch
Rawalpindi
Mall road branch
Satellite town branch
Peshawar
Peshawar Branch
Peshawar City Branch
OTHER BRANCHES
Other branches are in:
Hyderabad
Sukhar
Rahim Yar Khan
Multan
Sialkot
Islamabad
Jehlum
Quetta
Mingora, Swat
Faisalabad
Gujranwala
Sargodha
Bahawalpur
Dera Ghazi Khan
Gujrat
Sahiwal
Mardan
FEATURES
Bank Alfalah Limited is an established bank. It has some special
features with the help of those it is growing rapidly.
EFFICIENCY
Employees at Bank Alfalah are quite efficient. As Multan branch 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.
CUSTOMER SERVICES
All the customers are entertained individually. Same kind of behavior
and attention is given to all the customers.
ROYAL GROUP
Royal Group is a joint investment plan that allows individuals to invest
money collectively and earn higher rate of profit.
Amount Profit %age
From Rs. 100000/- to 999999/- 8.00%
From Rs. 1000000/- to 9999999/- 8.25%
From Rs. 10000000/- and above 9.00%
ROYAL PROFIT
It is profit obtained by individuals on their deposited amount.
50,000,000 & Alone profit is given on daily basis. It is just to attract
customer.
Amount Profit %age
From Rs. 50000/- to 999999/- 7.50%
From Rs. 1000000/- to 9999999/- 8.%
From Rs. 10000000/- to 49999999/- 8.25%
From Rs. 50000000/- to 149999999/- 9.00%
From Rs. 150000000/- to and above 9.25%
ROYAL PATRIOT
It is fix for specified time period. It is similar to term deposit. In term
deposit one get no benefit of profit when he withdraws his money
before maturity date. But in case of Royal Patriot of one withdraw his
money before the maturity date, he can get the benefit of profit. The
profit rates for different periods are following:
Tenure 1 3 6 12 24
month months months months months
25000-999999 7.50% 8.50% 9.00% 9.50% 9.50%
1000000-49999999 7.60% 8.60% 9.10% 9.60% 9.75%
5000000 & above 7.70% 8.70% 9.20% 9.70% 10.00%
CONSUMER FINANCE BANKING
FINANCING SCHEMES
The bank has introduced many financing schemes such as Term
Finance and CF, FAFB, FAPC. The bank has recently introduced a Car
Finance Scheme.
ANMOL DEPOSIT CERTIFICATE
In Anmol deposit, profit is given on daily basis. Profit is calculated
from date of purchase (Subject to minimum holding period of 30 days).
Certificate can be encashed from the issuing branch.
ALFALAH CAR
It’s a scheme that enables one to own his desired car at easily
affordable and flexible installments with a minimum down payment
and insurance.
SALIENT FEATURES
Lowest financing cost available in the market.
Tenure of 1 to 5 years as per individual requirement
Quickest processing
Minimum processing charges: Rs. 3000 payable once
Down payment requirement of 20%
Repayment through monthly installments
Insurance rates available from bank’s approved insurance
companies
Flexibility of adjustment at anytime during tenure.
Easily affordable flexible installment
Lowest markup
Pre-mature Termination 5% Of Principal Outstanding
MINIMUM INSTALLMENTS
Monthly Installments for Alfalah Car can be calculated by
multiplying Bank’s financing amount with the following factors:
Periods Advance Deferred
installment installment
For 12 months 0.09072 0.09216
For 24 months 0.04962 0.05041
For 36 months 0.03609 0.30666
For 48 months 0.02944 0.02996
For 60 months 0.02553 0.2594
Eligibility Criteria
1. Application Form
2. Copy of National Identity Card.
3. Copy Of Driving License
4. N.T.N Certificate.
5. Copy Of current utility bill of residence.
6. Bank account statement for last six months from the date of
application.
7. Signature verification from duly verified by the Banker.
8. Assets and Liabilities Statement ( Where Bank’s Financing
Exceeds Rs. 5 Lac)
9. CIB Report Required ( Where Bank’s Financing Exceeds Rs. 5
Lac)
10.Basic Borrower fact Sheet
ADDITIONAL REQUIREMENTS FOR BUSINESS
CLASS INDIVIDUALS.
A) COPY OF RENTAL/ PURCHASE AGREEMENT OF
BUSINESS PREMISES.
B) SOLE PROPRIETORSHIP LETTER ON RELEVANT
BUSINESS LETTER HEAD.
C) PARTNERSHIP DEED (IF APPLICABLE).
D) NOC FROM OTHER PARTNERS (IF APPLICABLE).
Documents
1) Non-resident Pakistani of UAE, holding valid Pakistani
passport.
2) Valid UAE visa
3) Pakistani ID Card
Must be 21 year of age or over salaried and 62 in case of
businessmen
OPERATION DEPARTMENTS
Operations department of the Bank Alfalah Limited is responsible for
the overall operations of the bank.
Mr. Hassan Zaidi is operation Manger. He looks after the overall to the
higher authority about all its departments. The detail of those
departments which are controlled under this department is as under.
a) Account opening
b) Cash department
c) Clearing
d) Remittances
e) Online Transactions
ACCOUNT OPENING DEPARTMENT
It is most important department of bank and its major source of income
for bank. Miss Shazia Bashir deals in this department.
Following procedure is adopted for this purpose.
TYPES OF ACCOUNTS
The bank different types of accounts exist.
1) INDIVIDUAL ACCOUNT
Any individual or proprietor of business can open an individual account
at BAF.
PLS (profit and loss sharing) saving accounts can be opened with the
minimum balance Rs. 1000/- with expected profit rate is 9%. Following
requirements has to be fulfilled for this account.
Signature of customer on back of AOF.
Mention next of kin (nominee)
Name and A/C # of introducer.
Verified sign of introducer.
Customer signature admitted by officer.
N.I.C photocopy attached.
Letter of thanks.
2) JOINT ACCOUNT
When more than one person open a single account it is called joint
account. The names of persons are written on the title of A/C and on
S.S. card.
Joint A/C cannot be opened by single person. Both persons have to sign
on cheques. When two or more person neither partner nor trustee open
account in their name is joint account.
Requirements
Sign of both customers on back of AOF
Sign on joint A/C # mandate
Name and A/C # of catrodiecer
NIC copies of both members.
Mode of operation.
3) BUSINESS ACCOUNTS
When the owner of the firm operating singly, open an in his term name.
Three types of Accounts are Here For Business Accounts:
a) Sole Proprietor Account
b) Partnership Account
c) Limited Company
Requirements
Sign of customers on back of AOF.
NIC copies of partners
Partnership deed (certified copy) duly attested by notary
republic.
Partnership mandate (prescribed format)
Companies rubber stamp
The A/C is opened in the firm name and all partners designate one or
two persons to act behalf of the partnership firm all acts of the firm
jointly and severely.
PRIVATE LIMITED
Requirements
Restrain on companies letterhead dully attested by chairman.
Sing of all directors on back of AOF.
NIC copies of all directors.
List of directors on company’s letterhead.
List of memorandum and article of association.
Copy of board resolution.
Latest form 29 (if director is to be changed or in case of his
death, this kind of form is filled, it includes information that a
new director has how much number of shares with him.
Companies rubber stamp.
Copy of certificate of incorporation should be attested by
Director, co register an office stamp should be affix.
Code Of Accounts
Saving account 02
Current account 01
Royal profit 029
Royal group 05
FSB 028
FCP 018
EURO 0287
PUBLIC LIMITED
1) Certificate of commencement of business
2) Same as a home documents.
PROCEDURE
All the account opening formalities must be completed before issuance
of chequebook. Particulars of the chequebook requisition should be
completed containing title of account, account number, type of
currency, number of leaves and signature to the customer. Signature of
the customer is verified on the requisition.
If customer is unable to collect his cheque book, then he can give
authority to the third person to collect his cheque book on his behalf by
signing on the back of the requisition, in such case, the particulars of
the third person are required like name of the person NIC number and
signature of that person on requisition and cheque book issuance
register.
Chequebook is taken out from the safe / locker. It is assured that series
of the chequebook. Particulars are entered in the chequebook issuance
register. Account number is stamped on very leave of the chequebook
and those leaves are counted. Name of account holder is written on the
cover of the chequebook. And requisition on the chequebook for further
issuance is properly filled, stamped and signed by officer of the bank.
Chequebook is delivered to the customer and his signature on the
chequebook issuance register. Chequebook serial number entered. In
the system (Bank Smart)
Stock of chequebook are balanced at the end of each day and kept
under safe custody.
Earlier the banks were charging a fee for issuance of cheque book but
now whenever a new account is opened, the account holder issued a
cheque book free of charge.
Bank Alfalah issues the following chequebooks.
Saving account-25 leaves
Current account 50 leaves.
Current account – 25 leaves
Foreign currency $ 10 leaves
Foreign currency 10 leaves
Loose cheques are also issued in some cases.
Closing Of Account
When a customer wants to close an account he has to given a hand
written application to the head of the operations department to close his
account plus remaining leaves of cheque book.
The manager first verifies the sign of account holder, then closing is
done from the registers on the computer where the account was opened.
In the file of the account holder his account opening form is crossed.
For this closing a fee of Rs. 150/- is charge in BAF.
CASH DEPARTMENT
Cash 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.
This department performs the main function.
a) Cash receipts
b) Cash payments
CASH RECEIPTS
In cash department depositors use deposit slip for depositing the
amount into their accounts. The officer checks if the deposit slip is
properly filled up containing title of account. A/C number date and
amount in words and figures. Detail on both counter file and cash
receipt voucher should be the same. Cash is received by cash receiving
officer, twice counted and matched with the deposit slip. The cash
details are written on the back of the deposit slip and are also entered in
cash receiving register. Cash received stamp is affixed on the face of
the deposit slip along with the signature of the cash receiving officer.
Deposit slip and cash receiving register is given to the officer in the
cash department. The officer cash department both on cash receipt and
cash receiving register makes again proper scrutiny. Officer cash
department signs both the deposit slip and register. Deposit slip is
credited and posted in the concerned accounted in the system. Counter
folio is given the deposition as receipt. One consolidated cash debit
voucher is posted in the system to balance the cash.
Inward Clearing
When cheques drafts, etc, of our branch presented to us for clearing by
the SBP. Cheques to be honored by bank.
Outward Clearing
The cheques of other banks that the account holder deposits in their
accounts are send for collection.
DEMAND DRAFT
It is instrument, which is used to transfer amount from one city to
another city it can be made on cash as well as on cheque. If it is made
through cheque that it is necessary that person must be A/c account
holder while in case of cash any person can made. It consists of three
copies.
1) Original copy which is given to account holder.
2) DD advice is sent to the central branch.
3) Third copy is for reconciliation. Its photocopy is kept with us
(bank) while original is sent to head office for reconciliation.
Procedure
The client who wants to transfer his funds form one city to another fills
a form requesting the bank to prepare a DD. DD application form
contains columns requiring information for the preparations of DD eg.
Beneficiary name
Applicant’s name
Address
Amount to be sent etc.
Bank deducts some charges against DD. These charges include
commission tax provincial tax etc. Tax is deducted 0.3% while PT
charges are 0.50 paisas. If customer is taxpayer than advance tax is
exempt provided that he submit the tax exemption certificate.
TELEGRAPHIC TRANSFER
It is another mode of transfer of funds. It is quickest mode of transfer of
funds from one city to another. For TT, client has to submit the
application on a prescribed form of the bank. Client can deposit money
in to the bank or can request the bank to deduct the amount against the
TT along with the charges against the issuance of TT from his account.
The charges against the issuance of TT charged by Bank Alfalah.
After proper scrutiny, officer cash department posts the cheque and
signs the application form, to assure that payment is received. Then
cheque and application form is given to the incharge. Remittances, who
will enter all the particulars of the application in the FDD issuance
register. If the customer wants to pay cash, it is deposited by the
customer on cash counter. Cash receiving officer receives cash on the
application form along with the bank charges. Application form is then
given to the remittances incharge for the issuance of the instrument. A
control number is allotted to the instrument form FD registers.
Instrument is complete by putting all the particulars in it and signed by
two attorney holders. Instruments are then handed over to the
customers. FDD advice is sent to the responding foreign bank / paying
bank where they are maintaining dollar account through registered
mail. Exchange transaction credit advice (ETCA) is sent to eh Head
office fore the reimbursement. Copies of the FDD and ETCA are kept
in the record of the bank.
Procedure For Foreign Telegraphic Transfer Issuance
Application form is given to the customer to fill the same. Two
signatures are taken on the form one for request and other for
signatures are taken on the form one for request and other for receiving
the instrument. All the particulars of application form are checked and
bank commission is charged, which is US$ 15/- that rate for each
amount of each FTT.
If the cheque is received from the customer, it is taken for total amount
of FTP plus bank commission. Cheque and application form is then
given to the officer cash department for the payment of cheque. After
proper scrutiny, officer cash department posts the cheque and signs the
application form to assure that payment is received.
If the customer wants to pay cash, it is deposited by the customer on
cash counter; cash-receiving officer receives cash on the application
form along with the bank charges. Application form is then given to the
remittances incharge for the issuance of instrument. He enters all the
particulars of the application form in the FTT register and a control
number is allotted to the FTP. TT message is written in the telex
containing name of transferring branch, name of receiving branch, date
amount, currency, payee’s name and account number or identification
if any, payer name and payment instructions. A test number is given to
the FTT message for receiving branch. This message is then sent
through telex to the receiving branch. Customer is confirmed that FTT
has been made. Exchange transaction credit advice (ETCA) is sent to
the Head Office for the reimbursement. Copies of advice (ETCA) and
FT are kept in the record for the bank.
COLLECTION
All the cheques under collection are called cheques under collection in
Bank Alfalah Limited. There are two types of bills for collection:
Outward Bills for Collection
Inward Bills for Collection
PAY ORDER
Is written order issued by a bank, drawn upon and payable by itself, to
pay specified sum of money to the order of a specified person.
Application form is given to the customer to fill. Two signatures are
taken on the form one for request and other for receiving the
instrument. All the particulars of application form are checked and
bank commission charges and with holding tax are written on the top of
the applicant form. If the customer is maintaining his account with the
branch he can give cheque for total amount of instrument plus bank
charges. Cheque and application form is then given to the officer cash
department for the payment post the cheque and signs the application
form in token of payment received. If the customer wants to pay cash,
cash is deposited by the customer on cash counter cash receiving
officer receives, cash on the application form along with the bank
charges and withholding tax.
Application form is given to the remittances in charge for issuance of
instrument. He enters all the particulars of the application form in the
system (BPG) and computer gives an auto control number to the
instrument. Print out a take on the block payment order. Two
authorized officers of the branch then sign it. Instrument is the protect
graphed and given to the customers.
When the instrument is presented for payment, it is posted in the BPG
and canceled by the remittances in charge after proper scrutiny.
CALL DEPOSIT
When the party wants to give payment from itself to another party then
it makes call deposit. The bank keeps it with itself unless it does not
receive instructions from other bank. Normally it is made on cash and
goes in party account.
PAY SLIP
It is used when bank itself pay for any type of transaction e.g.
purchased of stationary.
MONEY GRAM
Bank Alfalah Limited, in collaboration with money gram offer
remittance services to Pakistan.
“It’s basically a person to person money transfer service that allows
consumer to receive money in just a few minutes.”
Procedure
Person must have reference no.
Person must tell reference no. and compute the simple form.
Person has to show NIC and tell compute introduction after that
he can obtain money.
1. Call Deposits
Depending on local practice Call Deposits are to be repaid immediately
upon demand and during counter hours.
2. Notice Deposits
Notice deposits are kind of fixed deposits. The minimum balance
requirement for opening the account is Rs. 500/- and payment is drawn
on maturity of the specific period.
Deposits repayable on receipt of notice from a customer after a pre-
specified period are termed as notice deposits. The depositor indicating
his intention to withdraw the funds selects the notice period. Notice
Deposits are usually held for pre-specified tenors of seven days and
thirty days. A deposit should be placed for a minimum of 7 days in
order to qualify for accruing of profit. If the deposit runs for a period in
excess of the notice period, then the profit shall be payable up to the
encashment date.
Notice Deposit Is Of Two Types
One for which a prior notice of 30 days and is required from the
customer before withdrawing deposited amount and for which
rate return is 6.10%.
second for which a prior notice of 30 days and above is required
from the customer before withdrawing deposited amount and for
which the rate of return is 7.50%.
All deposits placed by the Bank on behalf of the depositor are non-
cumulative, non-transferable and non-negotiable.
Application Form:
Every deposit taken must be supported by either a written request along
with a confirmatory cheque/cash and a Term Deposit Application
(BAF-TD-001) duly signed by the depositor. The application should
contain all required instructions in connection with the nature of
deposit, principal amount, and a particular period. The branches are
advised to cite the account number on the application, if the depositor
is already a customer. Also a copy of valid identification document
should be obtained from all depositors.
Deposit Receipts:
The deposit receipt (BAF-TD-002) should be issued in duplicate. The
original will be issued to the depositor, the copy be attached to the
Term Deposit Application Form (BAF-TD-001), filed as per 2.2 above
and which should be retained at the issuing branch.
XXX-YYYY-ZZZZ where:
Profit Accrual:
Period Run: The period for which the time deposit has run from the
date it was established.
Prevalent Rate: The rate of profit, which is declared by the Bank twice
a year i.e. from Jan. to Jun. and July to Dec.
Penal Rate: The rate, which is currently valued at 2% by the
Management, is to be applied for the uncovered period of the maturity
and is deductible from the profit to be paid. Penal Rate as authorized by
the SBP and the Bank policy is intended to discourage premature
encasements.
Whenever a request for partial withdrawal of deposit is allowed, the
entire amount of the deposit will be treated as prematurely paid-up. The
amount being withdrawn will be repaid to the customer and the balance
placed as a fresh deposit from the date of partial withdrawal to the new
maturity date as requested by the customer, at the appropriate rate
prevalent on that date for that period.
Royal Patriot has a different mechanism for premature encashment
details of which are already provided to the branches. Also this product
is exempted from the levy of penal rate.
Matured Deposits:
All Rupee deposits are non-cumulative i.e. they are not automatically
renewable/rolled over. However, if the Customer desires to withdraw
the profit only and continue the placement of principal for a same tenor
then the Bank will properly endorse the details of profit paid at the
reverse of the receipt (BAF-TD-002), which will be returned to the
Customer, and the system shall be updated.
Profit on time deposit exceeding the maturity date shall be payable only
if the deposit runs for an " equivalent tenor" of the deposit's original
period of placement.
However, the Branch Manager using his discretionary powers can
authorize payment of profit on a period shorter then the original tenor
after the maturity of the deposit.
a) TREASURY
All new (after Jul. 01, 1998) foreign currency deposits, when
created/withdrawn should be reported to the treasury, same day, with
respect to their amounts and tenors.
A schedule 'D' format is used to book contracts for old deposits with
the SBP.
The sale/purchase (dealing activity) is communicated to the SBP on
daily basis. Moreover, at month end a consolidated statement of all
outstanding contracts booked with the SBP are reported in respect to
contract number, amount and expiry/maturity of the contract.
However, the reporting requirements are subject to change as per the
instructions of SBP and internal policies.
Account Documentation
a) Placements should then be linked with the term deposit account.
The receipt (BAF-TD-003) should contain a clause that provides
for automatic renewal of the deposit amount together with interest
accrued at maturity in the absence of instructions to the contrary,
from the depositor.
The control over documentation outlined in Account Opening Manual
(BAF-OM-CB-003) will apply to term deposits as well. All necessary
account opening documentation where required must be obtained at the
time of opening the respective Term Deposit Account for the customer
or at the time of accepting the first term deposit.
In certain instances, it may not be possible to obtain the original written
request from the customer and instead a facsimile, mentioning that the
original debit authority will shortly follow, may be accepted. It should
be ensured that the term deposit is being created in the favor of the
account holder and not a third party and that prior approval of the
branch manger is also obtained in writing. Follow up, should be
adopted for obtaining of the original debit authority.
The system will generate term deposit advice in duplicate. The original
will be issued to the depositor and the copy retained at the branch as a
file copy. The advice should, inter alia, indicate the following'
• The account number
Withdrawal
The customer has to instruct the Bank in writing for either
withdrawal of the term deposit before or at maturity and / or for
principal amount including interest or otherwise
A facsimile message can be accepted for encashment of the deposit,
if it contains confirmation of the original request being mailed shortly;
and only if the proceeds credited to the deposit holder's account (SB or
CD).
Import
All goods and services brought into a country that were purchased from
organization located in other countries.
Export
All goods and services sent from one country to another country.
FORM-E
Government has provided facility to exporter in taking E-Form from
any bank and he can present it to any bank for negotiation. Export
precede realization certificate.
SBP gives rebate to exporter against export after realization. It is paid
according to commodity wise and bill wise. Claim period: 1 year.
TRANSPORT DOCUMENT (BILL OF LADING, AIRWAY
BILL)
When insurance is done by importer, C&F (cost and freight)
usually used.
FOB cost (free on board)
CIF (cost insurance and freight) when insurance is done by
exporter, CIF is used.
Tenor (At sight) immediate payment by importer after receiving
product.
Partial shipment: Product is sent partially.
Transshipment: Product is sent via any country.
E-FORM CERTIFICATION
When export is done on C&F basis, so bank issues E-form certification
to exporter and he submits it to the custom officer along with e-form
certification to certify e-form.
COVERING SCHEDULE
If in covering schedule, it is given that “please remit proceed to our
Karachi office a/c no. 5740734881 with ABN (Amro Bank New York),
USA for onward credit to BAF Multan.
BENEFICIARY CERTIFICATE
If L/C requires some information as proof of anything from exporter
then exporter has to present beneficiary certificate for that proof.
E-FORM
E-form has four copies:
One for custom officer
One for exporter
Triplicate copy for SBP
Duplicate copy for bank
Bank reporting or duplicate and triplicate is done by bank. Custom
officer (date is given on the foot form) should clear product.
BILL OF LADING
Certificate from shipping company for loading commodities. If
requirement of L/C is to issue bill of lading in favor of L/C opening
bank, then authorized dealer certificate will be provided by bank in
favor of L/C opening bank.
NECESSARY REQUIREMENT
If place of issue and port of loading is different on bill of lading, then
along with the stamp of shipment on board, vessel name and port of
shipment is written.
1) Issue date of bill of lading – shipment on board.
2) There should not be cutting on bill of lading without
authentication.
3) Bill of lading should show capacity of agent. If the agent of
Importer Company can take bill of lading, then his name
should be mentioned on bill of lading.
4) Original GSP should be presented.
5) If TT reimbursement is not acceptable, it means bill of lading
is necessary.
When documents are received fro export, do enter into
lodgment register.
Payment To Seller
The negotiating bank upon receiving the documents from the seller
checks the documents according to terms and conditions of credit upon
satisfying it self of this the negotiating bank makes payment to the
seller if sight credit. It then forwards the documents to the opening
bank and reimburses it self through the opening banks account with
itself.
CREDIT FACILITIES
At BAL there are two types of credit facilities
1) Funded facilities
2) Non funded facilities
FUNDED FACILITIES
These are the facilities in which there is direct involvement of cash
fund. Following are the funded facilities.
1) Current finance CF
2) Term finance TF
3) Finance against foreign bills “FAFB”
4) Finance against packing and credit “FAPC”
5) Finance against imported merchandise “FIM”
6) Finance against trust receipt “FATR”
7) Payment against document “PAD”
Current Finance CF
The extensively used financing mode at BAL is current finance (CF)
current finance is used to finance both individuals and industries.
Individual take current finance for their personal use while in
industries. It is taken for fulfilling the requirement of working capital.
Term Finance TF
Term finance is for specified time period. Term finance is given for
fixed asset financing.
1) Pre Shipment
Preshipment loans are export related working capital financing.
2) Post Shipment
Post shipment financing is essentially the receivable financing to the
exporters till the period he is out of cash after the shipment.
3. And third is that if that client is trust worthy for bank believing
on him based upon his past record. He releases the goods against
the trust receipt. Trust the customer gives receipt to the bank.
The customer in turn commits that I will pay on such and such
date. Bank pays all taxes and gets merchandise and then gives it
to client. Bank do charges markup against such financing. FATR
is for specific period of time. If client do not pay with in
specified time then bank charges higher per day markup.
Sight L/C
Requires the importer / importing bank to pay as soon as it receives the
clean documents from exporter.
Usance L/C
It extends time period (typically 60, 90, 120 days) to importing bank
for payment. After specified time period importer have to pay.
Letter of guarantee “L/G”. Bank gives guarantee in the behalf of person
that I will pay in case of default.
CREDIT CYCLE
Request
Renewal / Revise /
Write-off
Processing
Informatio
n & CLP
Monitoring
Decision
Disbursement of
Loan
Offer
Purification of
the
Docum
ents &
STEP I
Credit cycle start with request letter. When customer give a request
letter to bank that he want that much amount of credit from bank.
STEP II
When bank receive the request letter from customer. The officer of
credit marketing department make credit line proposal (CLP) of client.
It is essential that the proposal define clearly the purpose of facility, the
source of repayment, the agreed repayment. Schedule, the value of
security and customer relationship consideration implicit in credit
division.
The security to be accepted as collateral for the facility and all the
documentation relating to the security of facilities must be in the
approved form all approval procedures and required documentation
must be completed all these things all feed in CLP.
CLP is basically a medium to present proposal for seeking approval of
credit line in client. In CLP they feed complete data of the client their.
Credit limit
Legal status of company.
History of relationship / introduction with bank.
Line of business
Background of proprietor / partner / owner.
Purpose of facility
Security
Along with it they attach borrower basic fact sheet.
CCA
Prudential checklist.
STEP III
After the processing of information. Credit officer decides whether to
give credit to that person or not. They also check whether its security
has any market value or not. Decision is taken by the branch credit
committee (BCC). If the proposal is within the discretionary powers of
committee the proposal may approve after evaluation of credit risk.
It CLP is beyond discretionary power of branch credit committee the
CLP is sent to credit division at head office along with supporting
documents and recommendation of branch credit committee.
STEP IV
When decision is made now credit officer offer that we will give you
loan up till that limit not more than that.
Up till now credit marketing officer does all the process. After that
credit administration officer’s work start.
STEP V
Here documents are checked security is properly checked which is
checked by the valuer. Valuer tells the value of security. Here
following characteristic of security are checked.
Market value
Consistency
Sellable
Storable
Transferable
Transportation
STEP VI
On completion of legal documents and security arrangement and
receipt of completion certificate from recognized legal counsel, the
bank according to the approved schedule prepared by bank after
obtaining confirmation of other payments have been funds from
sponsors other source via, equity fund from sponsors release of fund by
other co-financiers etc. After the valuation of security the loan is
disbursed to customer.
STEP VII
Responsibility lies to branch manager to monitor the overall profit and
risk aspect of credit portfolio in accordance with criteria setout in
bank’s credit policy. After the disbursement credit administration
officer monitor the performance of customer whether he is fulfilling the
requirement or not. He is paying markup or not for which purpose he
has taken the loan whether he is utilizing loan for that purpose or not.
STEP VIII
After specific time period credit officer see what customer want
whether he want to renew / revise or write off it. If he want to renew it
he said to officer to renew it with same limit.
SWOT ANALYSIS
STRENGTHS
Bank has a belief in customer service
Backed by strong Abu Dhabi Consortium
Customers give suggestion for the improvement of bank and
these suggestions are listened carefully.
Manager and EVP Mr. Asif Ali Sheikh have good coordination
with staff members.
Environment is friendly.
Products are excellent
Modernized banks (online banking)
Fully computerized, each department has to own PC.
Quematic machine
WEAKNESSES
Mixed culture
No ATM facility is provided in Multan
OPPORTUNITIES
Information technology
ATM real time one line
Master card facility
Establishing foreign branches
THREATS
Competition
Legal reputation
RECOMMENDATIONS
Finally, we are giving some suggestions for Bank Alfalah Limited.
These suggestions are based on our experience with bank.
This is a routine practice that in order to give personalized
services to the customer, bank staff tries to fill all the columns of
AOF with their own handwriting, which is wrong. AOF must be
filled by the customers.
Under no circumstances chequebook should be given to the
customer if the account formalities are incomplete.
There are two officers involved in cash deposit process, which is
time consuming. Cashier should be given certain powers to
receive cash of US$ & DM to provide prompt services.
Similarly, there are two officers involved in cheque payment
process, which is time consuming. Cashier should be given
certain powers to pay cheques up to Rs. 25000/- to provide
prompt services.
Cheques, which are drawn on Bank Alfalah Branch and returned
unpaid in clearing, are not reflected in the statement of account
of the customers. These cheques must be reflected in the
accounts so that credibility of the customers may be assessed.
ATM, credit card, all these facilities should be provided to attract
more customers.
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 a different banks are having this
department of their own.
Saba Saghir