Executive Summary: The Caring Bank

Executive Summary
Bank Alfalah was incorporated in 1997 and was privatized by the Government of
Pakistan. The Abu Dhabi Group bought the majority shares of the bank and so got the
rights to control the bank’s operations. Since the privatization of the bank, Bank Alfalah
has implement different policies to make it one of the best banks of Pakistan, which
included introducing new products and services and increase its operations by opening
new branches in Pakistan. Bank Alfalah is dealing in Foreign Currency Accounts,
Foreign Remittances and Foreign Bills for Collection, imports and Export. But the
Branch in which I worked it deals in Pakistani rupee transaction in foreign currency was
not the practice of this branch. I did my 8 weeks internship at Bank Alfalah Islamic
Banking Group, Kotabdul Malik Branch. This branch is established in 2008 and major in
Operations. I worked there in Account opening department and remittances department.
I also Spent some of my time at Clearing Department and understood the procedure of
Islamic Banking. The over all experience at the bank was good. Infact the maximum
Customer of the branch were Individuals and businesses entities. Most of the
businesses have their Salary accounts and saving accounts there. As the branch has
been established in an Industrial Area so many of the Employer Companies are
enjoying the services of the bank. During my internship Program, I found that due to the
effective customer service and proper Guidance the number of customer are increasing
day by day. The competitors of BAFL are also in aggressive position. The Economic
and Political conditions of the country are very disturbing; the high inflation and law and
order situation affects every business including Alfalah. Bank Alfalah has seen a rapid
growth in its activities by introducing a range of products and services and showing its
presence in the country by opening new branches and in future should keep this
momentum and always strive to become the best.
THE CARING BANK Page 1

Company Background
Bank Alfalah Limited (“BAL”) is a private bank in Pakistan owned by the Abu Dhabi
Group. Bank Alfalah was incorporated on June 21, 1997 as a public limited company
under the Companies Ordinance 1984. Bank Alfalah is registered at both Karachi and
Lahore Stock Exchange with a ticker name of “BAFL”. Its banking operations
commenced from November 1, 1997. The bank is engaged in commercial banking and
related services as defined in the Banking companies ordinance, 1962, with the
registered office at B.A.Building, I.I.Chundrigar Road, Karachi.
Since its inception, as the new identity of H.C.E.B (Habib Credit and Exchange Bank
Limited) after the privatization in 1997, the management of the bank started
implementing strategies and policies to carve a distinct position for the bank in the
market place.
This was further strengthened with a partnership with the Abu Dhabi Group which owns
70% of Bank Alfalah shares. This allowed the bank to invest more in revolutionary
technology to increase its range of products and services, perceiving the requirements
of their customers and matching them with quality products and service solutions.
Bank Alfalah has gone through different phases over the years. Its name and been
changed in the following sequence.
Bank of Credit and Commerce and International (BCCI)—1972
Habib Credit and Exchange Bank—1992
Bank Alfalah—1997
Bank of Credit & 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 3 branches in
Pakistan, Karachi, Lahore and Rawalpindi.

The Lahore branch was opened on 15th December1978. This branch was opened at
that time when some other international banks like Citi Bank, Bank of America, and
American Express etc. were already working.
But within a few years this branch crossed mostly all the other banks in case of
deposits, advances, imports and exports dealings, guarantees, traveler‘s cheque sales
etc. In 1991, the BCCI was banned, when it was accused by 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.
In July 1991, the branches of BCCI in Pakistan at that time were taken over by The
Ministry of Finance and SBP. All three branches were given under Habib Bank Limited.
After valuation of its assets for 15 million dollars, which were named as Habib Credit
and Exchange Bank (HCEB) and these were working as subsidiary of Habib Bank
Limited.
Following the privatization in 1997, Habib credit and Exchange Bank assumed the new
identity of Bank Alfalah on June 21st, 1997 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 282 branches. This includes 48 Islamic banking
branches and 7 foreign branches in Bangladesh, two in Afghanistan and one offshore
banking unit in Bahrain with the registered office at B.A.Building, I.I.Chundrigar, Karachi.
The bank is listed on the Karachi and Lahore Stock Exchange with a ticker name of
“BAL”.
PACRA, a premier rating agency of the country, has rated the bank
For long term „ AA‟ (double A)
For short term A1+ (A one plus)
Introduction

Central Background Information
Banking is one of the most sensitive businesses all over the world. Banks play an
important role in the economy and are considered as the backbone of an economy in
every country and Pakistan is no exemption. Banks are custodian to the assets of the
general masses. The banking sector plays a significant role in a contemporary world of
money and economy. It influences and facilitates many different but integrated
economic activities like resources mobilization, poverty elimination, production and
distribution of public finance.
Pakistan has a well-developed banking system, which consists of a wide variety of
institutions ranging from a central bank to commercial banks and to specialized
agencies to cater for special requirements of specific sectors. The country started
without any worthwhile banking network in 1947 but witnessed phenomenal growth in
decades to come. By 1970, it had acquired a flourishing banking sector. Nationalization
of banks in the seventies was a major upset to domestic banking industry of
the country, which changed the whole complexion of the banking industry. With
irrational decision at the top, all the commercial banks were made subservient to the
political leadership and the bureaucracy. The commercial banks thus lost their assets
management equilibrium, initiative and growth momentum. They ceased to be a
business concern and became big bureaucracies.
Today, the banking sector is providing financial solutions to the masses and is
growing and becoming a solid partner in the development of the Pakistani
economy, this growth potential has seen different acquisitions in the banking
sector, with the Standard Chartered and Union Bank being the most prominent.
Islamic Banking
History

The history of Islamic banking from its recorded inception is less than 40 years old.
From a humble beginning in a small village in Egypt in the late 60’s, it has spread to the
four corners of the world. By normal standards in a time span that is less than half a
century it could have hardly been expected to establish foothold in Muslim world, let
alone make its presence felt in Muslim-minority countries. Yet such has been its
phenomenal rate of growth that not only is it taking firm roots in its homestead, but is
also attracting genuine interest among the standard bearers of conventional banking
and in swathes of land where Muslims are a small minority only.
Still there is much ground left to cover. In Pakistan, Islamic Banking is less than 3% of
the Banking sector. Even in the Gulf states, where it has a larger footprint, in no single
country is the volume of Islamic banking more than a third of the entire sector.
Many blame Islamic Banking small share against conventional banking to a smaller
portfolio of products. A standard complaint against Islamic banks is that they do not
have the same variety of financial instruments as found in conventional banking.
Though valid to an extent, this popular jeremiad needs to be seen in the perspective of
Islamic Banking brief history against more than two centuries of conventional banking
adopted in full force across the globe, its competition against an entrenched system of
banking and the constraints within which it must operate.
Notwithstanding, Islamic banking is still growing at more than twice the growth rate of
conventional banking worldwide, and while it may not have the latter’s plethora of
financial products, its repertoire of Islamic financial products is steadily increasing.
Riba
It has been argued in vain for long in some circles that the prohibition in Islam is that of
excessive interest only. Or that it is the interest on consumptive loans that has been
forbidden and as

such loans extended for commercial purposes are entitled to an excess over the
principal amount lent. Such tendentious arguing fails to give due understanding to
verses 278 and 279 of Surah Al-Baqarah (quoted below).
“O ye who believe! Be afraid of Allah and give up what remains (due to you) from
Riba (usury) (from now onwards) if you are (really) believers! 2:278
And if you do not do it, take notice of war from Allah and His Messenger! But if
you repent, you shall have your capital sums 2:279
However, this does not mean that Islam prohibits any gain on principal sums. In Islam,
profit is the recognized reward for capital. When capital employed in permissible
business yields profit that “excess over capital” becomes the rightful and just claim of
the owner of the capital. As a corollary, the risk of loss also rests exclusively with the
capital and no other factor of production is expected to incur it.
Basic Islamic Instrument

Musharakah
Musharakah is one of the two ideal modes of Islamic financing. The other one being
Mudarabah. Musharakah is a contractual relationship formed through mutual consent of
the parties for sharing of profits and losses in a joint venture.
Mudarabah
Like Musharakah, Mudarabah is also a form of partnership. Whereas all partners in
Musharakah contribute capital, under Mudarabah partnership is formed between
provider of capital and provider of expertise or human resource. Proportions for sharing
profit are decided upfront. Losses are incurred solely by the partner contributing capital.
Murabaha
Murabaha is a non-participatory mode of Islamic financing where the bank sells the
asset required by its client to the client on cost-plus basis. The asset is first purchased
by the bank and the bank incurs
he risk of any loss or damage to the asset as long as the asset remains under its
ownership.
Ijarah
Under this facility a client may take on rent, property, vehicle or any other real asset
belonging to the bank. The bank transfers the right of use of the asset to the client,
while retaining the ownership of the asset. The client pays periodic rent to the bank for
the use of the asset.
Salam
Salam is a contract of advanced payment against deferred delivery of goods. Goods
paid for in advance by the buyer are delivered by the seller after an interval of time.
Istisna
Manufacture of a specific product against precise specifications by a manufacturer for
delivery to buyer. It is necessary that the price of the product and product specifications
are fully agreed upon by the manufacturer and the buyer, and that the material required
for manufacture is arranged by the manufacturer.
Bank Alfalah Islamic
Company Information
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.
BAL-IBD has entered into a Shariah Consultancy agreement with the Centre of Islamic
Economics, Karachi, which is a noted and well-known seat of learning for Shariah
scholars and a prominent institution dealing in Shariah Advisory services. Besides
assisting in advancement of the Division’s product portfolio, the Centre also stamps
approval of the Division’s conduct of business following periodic audits. These audits
are in addition to those carried out by the State Bank of Pakistan and the internal audits
undertaken by the Division itself.
Performance
Bank Alfalah’s Islamic Banking Division (BAL-IBD) started operations in 2003 and at its
yearend reflected a modest capital base of Rs 100 million and deposits totaling Rs
113.7m.
By following yearend, BAL-IBD’s equity had risen more than 4 times to Rs 569m and
the balance sheet footing had swelled to Rs 7,799 million. Deposit size had grown from
less than Rs 114m to over Rs 7,229 million. The pace of frenetic, triple digit growth was
continued over the next twelve months as equity more than doubled to Rs 1,278 million
from Rs 569m.
Assets also recorded a more than 100% growth, climbing to Rs 15,634 million from Rs
7,799 million. Deposits alone failed to double – rising to Rs 12,476m from Rs 6,548
million – yet managing a healthy 90% increase. Financial results as of June 30, 2006,
reflect growth but at more modest pace.
Total balance sheet size fell shy of Rs 18 billion – Rs 17,970m vs Rs 15,634m – and
deposits climbed to Rs 14,111 million, rising Rs 1,635 million in six month’s period.
Income for the 6-month period was Rs 111.23 million.
Bank Alfalah Islami overall structure is in the following way.
Personal Banking
Personal Accounts

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 Profit Zakat deductions

balance
Current deposit PKR 10,000/= Nil Not applicable
Musharakah PKR 5,000/= Tiered structure, 6 Applicable
Savings monthly pay-out
deposit
Musharakah PKR 50,000/= Tiered structure, 6 Applicable
Term deposit monthly pay-out
All profits subject to 10% withholding tax
On-line cash deposit facility at all branches of Bank Alfalah
On-line transfer facility between all branches of BAL-IBD
Remittances
Foreign and local remittances are both available. Foreign remittances are available in
the following currencies: US dollars, Pound Sterling and Euro.
Locker services
Locker services are offered at select branches. Lockers are available in three sizes –
small, medium and large. Annual charges for the lockers are as follows:
Small Rs 1,000/-
Medium Rs 2,000/-
Large Rs 3,000/-

Lockers are available to account holders and carry an insurance value of Rs .250, 000/-
Corporate Banking
Murabaha Finance
 Types
o Local purchases: For purchase of locally available goods
o Imported goods/commodities/assets
 Mode of repayment
o Immediately in cash
o On a mutually agreed future date
o Spot Murabaha (Import)
o Deferred Sale Murabaha
Trade Finance
 Imports
o Letter of Credits
o Import Murabaha Finance
o Full range of services related to imports e.g. Contract registration, Import
bills for collection, Shipping Guarantees and Advance payments against
imports.
 Exports

o Export Murabaha Finance
o SBP Islamic Export Finance Scheme

o Other export related services e.g. Collection of export bills, Negotiation
under Sight LCs, Advising/Confirmation/Transfer of Letter of Credits
opened by other bank.
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.
Consumer Banking
 Alfalah Musharaka Homes

 Alfalah Hilal Card
 Alfalah Car Ijarah
Islamic Financing Is Asset-Based Financing
A key feature of Islamic banking is that unlike conventional banks which deal primarily in
money and financial securities, Islamic financing is related to an asset that is a feature
of the transaction, and quite often the principal feature itself. From this springs an
important distinguishing feature of Islam
wherein Islamic financing is always based on illiquid assets that have intrinsic value.
Profit to Islamic financing is generated through bonafide sale of these assets.
Conventional banking, on the other hand, is free of such limitations. It lends money and
makes its earnings through this act of lending. Its earnings are unconcerned with the
economic fate of its lending.

Branch Network
Alfalah bank Islami has 13 branches in Lahore, 14 in Karachi, 3 in Islamabad ,3 in

Rawalpindi.2 in multan.1 in Peshawar,4 in Faislabad along with these Islamic bank is
working in Total 24 cities of Pakistan.
The Head Branch is in at Uni Tower, I. I. Chundrigar Road, Karachi.
I completed my Internship at Bank Alfalah Islami Kotabdul Malik Branch Sheikhupura.

This single branch is in operation in this city.
VISION
“To be the premier
Organizations operating locally
and internationally that provided
the complete range of financial services
to all segments under one roof”

MISSION
“To develop and deliver the most innovative products, manage

customers experience, deliver quality service that contributes
to brand strength, establishes a competitive advantage and
enhances profitability, thus providing value to the stakeholders
of the bank

Organizational Hierarchy

Chief Executive Officer
Co-Chairman Central Management Committee
Group Heads
Regional Managers
Area Managers
Branch Manager
Operations Managers
Fig.1
A general hierarchy of bank which is showing about the main authorities of Bank Alfalah
Limited who are controlling its management in Pakistan. Bank’s management is divided
into different groups, regions and areas. Co-chairman is providing supervision to group
heads that are responsible for controlling the affairs of different groups.

Board of Directors
The board of directors has the authority in guiding Bank affairs and in making general
policies. Some directors are the personnel of the Bank Alfalah Limited follows.
H.E. Sheikh Hamdan Bin

Mubarak AlNahayan
Chairman
Mr. Mohammad Saleem

Mr. Abdulla Nasser
Akhtar
Hawalileel Al-Mansoori
Mr. Ikram Ul-Majeed

Mr. Abdulla Khalil Al Mutawa Sehgal
Mr.Khalid Mana Saeed Mr. Nadeem Iqbal Sheikh
Management
Board Advisory Committee
Mr. Abdulla Khalil Al Mutawa Director
Mr. Khalid Mana Saeed Al Otaiba Director
Mr. Bashir A. Tahir Member
Mr. Ganpat Singhvi Member

Mr. M. Iftikhar Shabbir Secretary
Board Audit Committee
Mr. Abdulla Khalil Al Mutawa Director
Mr. Khalid Mana Saeed Al Otaiba Director
Mr. Bashir A. Tahir Member
Mr. Ganpat Singhvi Member
Mr. M. Iqbal Saifi Secretary
Auditors
KPMG Taseer Hadi & Co.,
Chartered Accountants
Registered / Head Office
B. A. Building
I. I. Chundrigar Road
Karachi.
Chain Of Command

Executive Incharge
Executive Incharge
Strategic Planning & Global
International &Treasury Division
Marketing
Executive Incharge Executive Incharge
Human Resources Division IT Division
Credit Division System & Operation Division.
Executive Incharge
Executive Incharge
Credit Monitoring Division
Establishment & Administration

Business Development Division Legal Affairs Division.
S.A.M./ Car Finance/ Leasing
Executive Incharge
Executive Incharge
Finance Division
Audit & Inspection Division

Corporate Banking, Islamic Banking Division
SME Financing & Home Loans
Fig.2

Now 13byears after being incorporated, Bank Alfalah has emerged as one of the
foremost financial institution in the region, endeavoring to meet the needs of tomorrow
today, operating through more than 200 branches in 74 cities nation wide, with total
employees exceeding 7000. Bank Alfalah also expanded its network internationally by
opening branches in Afghanistan, Bangladesh and Bahrain to further improve its image
as a premier banking institution.
Celebrating 10 Years of Bank Alfalah
Fig.3

About the Bank
A. Human Resource Planning
B. Policies
C. Core Values
D. Communication
E. Marketing
F.Managerial Practices
Human Resource Planning in Bank Alfalah

Human Resource Planning is the process of assuring that right type of people with right
capabilities are available when required. HRD of Bank Alfalah has to care all the
important activities. It is engaged in the process of hiring, firing, training, development
and all other related activities. HRD is also engaged in process of designing and
evaluating the jobs and determining a pay structure for the jobs.
Terms of Employment
The following are the four categories
1 Regular (M.T.Os, C.R.Os)
2 Contractual (B.D.Os)
3 Temporary
4 Casual
Job Analysis and Design

In the job analysis, HRD of BAL plays the key role in the job identification, respective
duties and responsibilities. They systematically collect, evaluate, and organize the
information about jobs. Basically job analysis is review of job from which they analyze
the performance of employee and on the basis of this performance they give rewards
and benefits.

Job Analysis
Job Description Job Specification

Fig.4
Job Description
In BAL, virtually against every job, job description is prepared. The main features of job
description are
1 To whom the employee is responsible.
2 What are the Job Grade, title, and location of the job.
3 Job Summary and duties. It briefly describes which are the duties of the
employees, their responsibilities and brief introduction of the job.
4 Working conditions.
Job Design
As we know that jobs are more than a collection of tasks recorded on a job description.
While designing the job, HR Department specify the work activities of the individual.
However designing the job in the Banking sector is a complex function because of
variety of factors that enter into arriving at the ultimate job structure
Once the job analysis exercise has been practiced successfully, and job description for
each job is prepared, then HRD’s job does not end. It starts from this activity and
engage in estimating the demand and supply of human resources.
Recruitment

Recruitment is basically attracting the employees and encouraging them to apply for the
job. Human resource department is responsible for the recruiting process. First of all
they analyze that it is essential to do recruitment or there is alternative to recruitment.
i.e. contracting
Methods used or internal recruitment
For internal recruitment they use to inform their employees that there is any job exists
and also use job bidding which help the employees to apply for a vacant job who think
that they have enough capabilities for doing the job. Then after internal methods they
will go for external recruitment.
Method used or external recruitment
Most important source of their external recruitment for the purpose of filling low level
jobs are advertisements and fresh students from universities. On the other hand for
management and executive level they recruit the experience people.
Selection
In BAL, the selection process is a series of steps through which applicants pass. The
process starts from the review of applications and resumes, then after analyzing the
resumes they take the preliminary interview as the next step to find out that whether this
employee have potential or not according to the related job. Then there are tests for
employees. After the tests there are detail interviews for the employees. These
interviews are structured and there are group interviews for the employees. After the
interviews Successful candidates are selected.
Orientation
Once the selection process is completed, new employees are oriented in order to
become productive contributors. Orientation improves the rate at which the employees
are able to perform their job.
Training and Development

The Bank continues to follow its strategy of hiring batches of young and energetic
Management Trainees who are sent to Training and Development Center for training in
all areas of banking. Training of the seventh batch is expected to commence in May
2005. At the same time, short courses are continually conducted for other team
members to not only enhance their skill level but also increase their performance
potential.
Career Development
Bank Alfalah is committed to the personal welfare and professional development of all
its employees. The management realizes that proper career development is essential,
not only for a more productive and satisfied work force but also for a excellent corporate
culture.
Career planning is very important aspect for development of the employees. By career
planning employee's career goals are set and to achieve them. The bank feels the
responsibility to develop the careers of their employees so that they would be able to
get themselves high and high in corporate hierarchy. Then the principle aim of career
development programs is to help employees, analyze their abilities and interests to
better match personal needs for growth and development with the needs of the
organization.
Performance Appraisal
Performance appraisal is the process of reviewing the individual performance. First of
all, bank set some standards for different level of employees and direct to their
employees to do work according to these standards and evaluating their performance.
Period
In BAL performance appraisals are usually prepared after every six months,
performances of every employee is to be reviewed and on the basis of these
performances compensations and benefits are determined.
Performance Appraisal methods

Which are being used in Bank are

1 Essay about employee performance description
2 Work standard
Policies of Bank Alfalah Limited
Alfalah Bank since its establishment has been providing excellent services all because
of the strengthened policies and strategies set out by its Broad
and Management. These police cover all grounds of good banking, following is the road
map to their success
1. Customer satisfaction will always remain the number one benchmark; the aim is
to maximize value for clients by offering high quality financial solutions that best
meet their current needs and long-term goals.
2. Bank is continuously looking for expansion in terms of deposits so highly

dedicated Business developments Officers (B.D.Os) are being hired.
3. To maintain sufficient resources over a long period of time and utilize them in
productive way. This can be done through Liquidity Management and Credit Risk
Management.
4. To promote strong and ethical business practices in the industry by focusing
more on effective collaboration with stakeholders.
5. The corporate policy focuses on striking the optimum balance in organizational
workflows and processes
6. Bank Alfalah is committed to the personal welfare and professional development
of all team members and sharing expertise and operational excellence across the
groups.
7. The Bank is fully aware that branch network has direct impact on the business
so; an intensive branch network will be established all around the Country.
Core Values of Bank Alfalah

Bank Alfalah is firmly grounded with a corporate philosophy that incorporates five
solid values, which each individual associated with the bank. These Values and
Business Principles provide the framework within which they carry out their
operations abides by.
1.Humility
Bank encourages a culture of mutual respect and treat both for team members
and customers with humility and care.
2.Integrity
Integrity means a synergic approach towards abiding the core values. United
with the force of shared values and integrity, Bank Alfalah form a network of a
well-integrated team.
3.Team Work
Bank Alfalah team strives to become a cohesive and unified force, to offer you,
the customer, a level of service beyond one’s expectations. This force is derived
from participative and collective endeavors, a common set of goals and a spirit to
share the glory and the strength to face failures together. The entire department
heads work with their subordinates as team members they provide them help
and guide them to achieve their goals.
4. Culture of Innovation
The Bank aim to be proactively responsive to new ideas, and to respect and
reward the agents, leaders and creators of change.
Communication

The Communication in the branch is quite simple; the chief managers take circulars
from the Area Office viva Head Office and inform others in the branch through a formal
meeting, while the top management uses newspapers, circulars, and weekly
magazines, annual reports for downward communication.
The Branch manager can also inform top management about any query or problem and
in the same way subordinates can talk about anything that is troubling them.
Marketing
No business activity can be planned without objectives therefore every company has its
own marketing objectives like, to achieve maximum market share, to achieve desired
volume and gain maximum profit.
In order to achieve such marketing objectives each organization has its own ways and
tactics. These ways and tactics help in achieving the pre-determined goals of the
organization.
Competitive Strategy of Bank Alfalah
The strategy used by the management to position BAL in such a way that it will have
distinctive advantage over its competitors.
Cost Leadership
Bank Alfalah adopted the strategy to be the cheapest services provider (the
cheapest rates for the services of Remittance, foreign trade etc), and the lowest
interest rates for their products.
Differentiation
The strategy an organization follows when it wants to be unique among its competitors
with unique products and value added services.
Target Market

The target market, of Bank Alfalah Limited, is not only the conventional
consumers but the corporate sector as well.
Unique products and services

Bank Alfalah plans to introduce innovative and flexible financial products
and services.
Lowest Rates
The rates will be surely charged less then the completing products of other banks
e.g. UBL car financing.
Managerial Practices
Aggressive Banking
Bank alfalah expanding their network of Islamic Banking. Bank Al Baraka has been
serving the Islamic banking sector since 10 years and they have only 5 braches in
Pakistan. On the other hand bank Alfalah has established 20 branches in a year.
Motivation
Bank Alfalah motivating their employees by giving them comprehensive benefits and
professional environment within the organization, which enhances the performance of
the employees. Bank motivates their employees by giving 3 bonuses in a year.
Benefits
 Monitory Benefits
Monitory benefits are given to the employees on the basis of their performance like
salary rise, cash prize.
 Grade Promotion

Bank also provides benefit to their employees in the form of grade promotion. Grade
promotion motivates the employee to do their work efficiently and effectively.
 Abroad Posting
Bank benefit their employees by sending them on overseas posting where they can
enhance their professional skills and get handsome financial benefits in terms of salary
or fridge benefits.
Controlling
Bank has proper setup of controlling the day to day transactions and operational affairs.
Bank controls the operations through a proper check and balance system and properly
monitor the daily work.
Internal Control Unit
Bank has an Internal Control Unit that monitors the daily transactions within the
organization and keeps informing the management about the rules and policies
violation. Internal control unit has a proper check and balance on operations and other
bank departments.
Internal Audit
Internal audit is a tool to have a proper check on daily working in a bank. Internal auditor
has to point out the discrepancies found during audit. Internal auditors hand over the
audit report to the audit chief and he hand over that to the management. Management
overlook all the discrepancies and try to reduce the violation and also took the
necessary actions. Internal audit conducted in a bank twice a year.
External Audit

External auditors are the representatives of state bank of Pakistan. State bank assigned
them to audit the banks the find out the lapses or discrepancies according to the rules
and regulations of state bank of Pakistan. State bank imposed penalty on bank if they
found any discrepancies related to banking practices or procedures. External auditor
hand over the audit report to state bank of Pakistan and SBP handover the report to the
management along with the debit advice in form of penalty and management overlook
the discrepancies and take necessary actions. External audit conducted once in a year.
Bank Al Falah has a Chartered Accountant Company on his panel who prepare and
overview the financial reports of the bank.
Customer Problems
It seems that the priority is given to the corporate customers in Bank Al Falah as the
individuals from middle class have to remind the management of certain branch to do
the needful for them. Customer is the king and customer always right. Bank is earning
profit from the customers. Bank should have a proper relationship with corporate as well
as individual customers. It is recommended that the management should stress on
having satisfactory relationship with individual customers because they can also provide
the revenue in term of profit.
Structure of the Organization

BAL is highly centralized and partially decentralized organization. All the decisions are
made by Board of directors, Members of Executive Committee and Divisional Heads of
the Bank Alfalah Limited. This centralized structure helps them to make big decisions,
while decentralized structure provides authority to Area Mangers and Branch Managers
to make any decision regarding their fields of interest. Following is the structure of Bank
Alfalah Limited:

Kind of Organization
Bank Alfalah is a Public Limited Company, and provides financial services to customers.
It is all and all a customer-oriented organization. The banking solutions are not only for
the conventional consumer but also for the demanding needs of the corporate sector.
Social Commitment
The Public Relation Division of BAL maintains effective rapport with the general
public by communicating the policies and schemes of the bank through press and
electronic media. Besides maintaining close relationship with journalists & advertising
agencies, the Division also receives the visiting dignitaries and delegations from abroad.
BAL believes in serving the nation and building the country strong. BAL is always at the
forefront to support noble causes and promote the social & cultural activities in the
country. The Public Relation Division of BAL sponsors various social, cultural and sports
events to generate healthy activities in the society. It also organizes religious programs
to uphold the religious tradition of the people.
Mechanics of generating Profits
The mechanics of generating profits is the BAL’s valuable services e.g. Foreign trade,
Remittance, BTF and comprehensive and diversified products e.g. Auto Finance, Home
loan, Visa Card etc.
Morale of the Employees
The employees at ALFALAH BANK are self-motivated and the reason for their such
kind of motivation is the working environment which has to be conductive for efficiency.
The morale of workers in Alfalah Bank is very high and this high morale is as a result of
keen interest and careful supervision of the top management. It is all because of the
healthy environment provided at all branches of the Bank and very kind and neat
relationship among the employees, and very satisfactory compensation and benefit
system.
Employment Opportunities for new People

Bank Alfalah is creating opportunities for the new people as Bank Alfalah is the fastest
growing bank of Pakistan with the network of more than 200 branches, covering 70
cities and all the employees are Pakistani. Bank follows a strategy of optimum financial
and quality human resource allocation in order to enhance the performance. BAL is
continually endeavors to hire numbers of undergraduates, graduates and professionals.
Career Development
Bank Alfalah is an organization that provides opportunities for its staff to have a
challenging and rewarding long-term career. To this end the Human Resource
Department (HRD) encourages and motivates its employees to excel in the
responsibility that they have in the organization. BAL believes that creativity and
innovation comes from talent, knowledge and experience and it is endeavours to
provide and maintain an environment which not only nourishes these strengths but also
provides opportunities for the staff to have a career which has multidimensional growth
opportunities.
The overall direction of HRD has been towards nurturing the strengths of the human
capital to its maximum with a defining principal to help create a progressive environment
During 2004, workshops, skill development clinics and seminars in the disciplines of
Service & Attitude, Market Research & Selling, Management & Communication, Credit
& Finance, I.T. & e-Banking, Treasury & Trade Finance, Global/ Domestic Banking
Operations and on other diverse subjects were conducted.
Internal Structure of Bank

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Description of various departments and Sections
Customer Relationship
Account Opening Department
This department is responsible for opening, closing of an account, issuance of cheque
books, handling customer request, dealing with the customer and explains them the
different type of accounts and their benefits for them. This department has vary
important position in operations because this is the first impression of bank for
customers.
The main document in this department is, of course, the Account Opening Form (AOF)
also known as relationship contract.
Procedure of Opening an Account
1. Completion of the Form
a. Basic customer information
i. Customer name
ii. Father name
iii. Mother maiden name
iv. CNIC number
v. National Tax number
vi. Current house no
vii. Permanent house number:
viii. Contac numbers
ix. Profession
x. Employer details
b. Specimen Signature Card (S. S. Card)

c. Cheque book requisition

d. Operating instruction
e. Type of account
f. Currency for account
g. In case of death how will operate the account
h. Agreement on terms and conditions
i. Online account
2. Allotment of Account Number
3. Letter of thanks sent to customer
4. Issuance Of A Cheque book
5. Entry Of A cheque book
6. Acknowledgement of letter of thanks
7. Filling Of Account Opening Forms
8. Filling of Request
9. Maintaining the Computer Record
Accounts opening department is one of the departments that come under the
retail/general banking facilities provided by Bank Alfalah.
Major Deposit Account Products
The Alfalah Islamic Banking Kotabdul Malik branch is dealing in major deposit product
as follows
Current Account
Current Accounts are non-profit bearing accounts that have a minimum account
opening requirement of Rs.10.000.No Zakat is deducted on the account balance.
Furthermore all current account holders receive a Hilal card and there are no
restrictions on the number of withdrawals or deposits made to and from the account.
Sometimes upon instructions salary Account of an Individual require initial deposit
Rs.500

Basic Banking Account (BBA)
Basic Banking Account was introduced by banks on an order by the State Bank of
Pakistan and is current in nature. There is no minimum balance requirement for BBA,
however initial deposit must be Rs 1000. Maximum two withdrawals and deposits are
allowed by cheque, while there is no restriction on ATM withdrawals.
Saving Accounts
1. Alfalah Musharka Saving Account

Musharka saving account is more suitable for individuals who wish to earn profit on their
savings and investment normally. Musharka saving Account offers monthly Profit
Distribution and Profit calculation is on monthly average balance Bank Alfalah Islamic is
providing great flexibility these accounts because there are three type of accounts offer
under this category suiting almost every individual how wish to invest and want to get
better earning on his saving.
The Latest profit rates are shown as
Table.1
Amount-PKR July-2010
Minimum 0 to 9,999 5.03%
Maximum 100 Million & above 8.01%
In between these variable rates are available
2. Falah Mahana Amdani Account

This account can starts from minimum Rs 10,000 and maximum you can invest five
million rupees. The benefit of this account is that you can withdraw your money you
don’t need to fix your amount for specific period of time. The profit is paid on monthly
basis on the minimum balance you maintain in that month.
Table 2
Amount-PKR July -10
10,000 to 15,000,000 9.03%
3. Falah Classic Saving Account

This account can starts from minimum Rs 10,000 and maximum no limit. This account is
the conventional saving account. Benefit of this account is that you can withdraw your
money you don’t need to fix your amount for specific period of time. Profit is distributed
bi-annually and profit calculation on monthly minimum balance.
Table.3
Amount-PKR July-10
10,000 and above 5.06%
4. Falah Premium Saving Account

This account can starts from minimum Rs.100 maximum Rs.50, 000,000. This account
offers monthly profit distribution and profit is calculated on Daily balance.
Table.4
Amount-PKR July-10
Min 100 to 999,999 5.07%
Max 50,000,000 to 99,999,999 5.75%
5. Term Deposit

In order to earn profit the client is required to keep his/her deposits with the bank for
some time. This period can be 7 days, 30 days, 3 month, 6 month, 1 year, 2 year and 3
years and 5 years. The profit rate starts from5.06% to 11.05% depending on time span
but the profit rate keep on changing on monthly basis. The minimum limit for these
accounts is Rs1,00,000 and maximum no limit.
Musharaka Saving Account
Term Deposit Classic Saving
Mahana Amdani
Fig.6

6. Royal Profit Account
Royal profit accounts are opened with a minimum balance requirement of Rs 50,000.
The basic aim of this account is that the higher the balance the higher the return, as
profit is credited on a monthly basis. The profit paid to account holders is as follows:
Profits paid on Royal Profit Account
Table.5
Amount Profit pa.

From Rs.50,000 to 999,999 2.50%
From Rs.1,000,000 to 4,999,999 3.50%
Rs.5,000,000 and above Negotiable
Internal Codes for Some Accounts

Table.6
Account Type Code
Current Account 020*****
FMA Account 359*****
Saving Account 036*****
Different Type of Accounts and Document Requirement

Current Account
1. Sign on account opening form (AOF).
2. Sign on CNIC Verification.
3. Sign on CNIC Undertaking (if AOF sign differ from CNIC sign).
4. ‘Signature admitted’ stamp on SS card (Once for each person, e.g. incase of joint
account, admit both persons signatures separately).
5. ‘Signature admitted’ stamp on Rules and Regulations
6. ‘Signature verified’ stamp everywhere else on customer signature.
7. Attach Income Proof.
8. Attach Copy of Letter of Thanks to Customer + Introducer with TCS Receipt with
AOF.
9. Attach know your customer (KYC) form.
Saving Account
1. Everything under Current Account + Profit Sheet signed.
(Refer Table 7)
Company Account
1. Same as Current Account for stamping etc, but more documents are obtained.
As mentioned in table 2.
2. Separate KYC for company (KYC Format for Companies), and separate KYC’s
for People involved (KYC Format for Individuals), e.g. in a partnership account
with two partners, three KYC’s will be attached, one for company and two for the
partners.
(Refer Table 8)
Minor Account

(Customer under 18 years of Age)
1. Get Form-B.
2. Get ID card of Guardian.
3. Get Income Proof of Guardian.
4. Get Signatures of guardian as per procedure for account opening.
Photo Account
(Sign weak, or in Weak Urdu)
1. Get Weak Signature indemnity signed.
2. Get Vernacular form signed (in case of Sign in Urdu).
3. Affix “Signed in Our Presence” Stamp.
4. Get two photos (One on SS Card, One on AOF).
5. Affix Photo Admitted Stamp on photos and sign twice.
6. Affix “All cheques to be signed in presence of bank officers” stamp (Once on
SS Card, once on AOF).
7. Can’t give and take mandate of account.
Thumb Impression /Parda Nashen ID card
1. Get two photos attested by town Nazim /Gazetted officer.
2. Get two CNIC attested by town Nazim/Gazetted officer.
3. Indemnity signed that I don’t have any other proof that this is my picture.
Online Account
All accounts are marked online except for FCY accounts. If you fill in the AOF.
Housewife Account
There is no need for any income proof, but if heavy transactions are to be carried out,
then get the source of income, i.e. husbands salary proof, proof of selling land/property
etc.
Student Account
Get Student ID card (Valid), fee challan /receipt etc.

Table.7
Check List for Opening an Account
Sole Proprietor Partnership Company
1. NIC 1. NIC of all Partners 1. Copy of Certificate of

Incorporation (Attested by
Company Secretary)
2. Proprietor 2. Account Opening Request 2. NIC copies of all directors
Declaration / ON LETTERHEAD + Account (Attested by Company Secretary)
Undertaking (Bank’s Opening Form to be signed by
Format ON all partners
LETTERHEAD)
3. Company stamp 3. Partnership Mandate form to 3. Memorandum AND Articles of
be signed by all partners Association (Attested by Company
(Bank’s Format) Secretary)
4. NTN 4. Partnership Deed (on 4. Copy of Board Resolution with
stamp paper) ATTESTED BY Company Seal (Bank’s
NP +Company
5. Signed by ALL Partners
stamp Format
(with 5. List ON LETTERHEAD)
of Directors on letter head
Company’s name and Partner) (Attested by Company Secretary)
6. Registration Certificate 6. Latest copy of Form - 29
(Form C) incase of Registered (Attested by Company Secretary)
Partnership
7. NTN 7. Signing authority on letter head
with A/c opening request
8. Company Stamp
9. A/c Opening form to be signed
by All Directors
10. NTN
 NTN is must in all company accounts.
Table.8

Check list for Opening Accounts (Individuals)
Salaried Business Landlord
1. CNIC 1. CNIC 1. CNIC
2. Employment 2. Letterhead + Stamp 2. NTN

Certificate/Sala OR OR
ry Slip/ NTN in Business Name Fard Name
Appointment + Visiting Card
Letter OR
Partnership Deed
Stamp Specimen
Company Name Company Name

Fig.7
Proprietor Partner
Fig 7
Requests
Cheque Book Issuance
1. Get sign on Requisition (Front and Bank) and verify them.
2. Enter in the purchase order slip as mention below.
3. Deduct Charges (Rs. 5 per leaf) for example 25 leaves cheque book.
Dr. Customers Account 125
Cr. Cheque Book Charges Recovered 125

4. Send this Po to operation Manager after reviewing.
5. Operation Manager or Branch Manager will send the requisition .on the said
email address till 3Pm.
6. Next day till 11Am cheque books will receive.
7. Get customer’s signature on slips and send list of cheque books to the vendor,
and verify sign from the SS card.
8. Sign and write date in the slip next to customer’s sign.
9. Enter series in system against that customer from Account Operation.
10. Get authorized from Manager Operation.
Cheque Book Third Party Delivery

1. Sign on requisition for third party authority OR get thirds party authority signed.
2. Take ID card of Third Person (Bearer).
3. Get CNIC verification request from the Bearer and print out Verisys.
4. Get Bearer sign on authority/requisition and on Cheque Book Register.
5. Send third party letter to customer, attach copy with requisition.
6. Get written acknowledgement on the letter before activating the cheque book (or
via phone in special cases).
7. File another copy of the third party letter in the Third Party Letters file. (This copy
is with the TCS Receipt).
Lost Cheque Book

1. Stop payment on lost cheque.
2. Manager Operation will issue FORM B + Indemnity.
3. Issue cheque book against form B after verifying signs of the customer and the
guarantor. Cheque book issued on form B charges are Rs. 500.

Change of Address
1. Sign on Request (Verify Sign, Affix Received Stamp).
2. Change in System.
3. Print out changes, debit invoice attach with request.
4. Get authorized and send change of address letter to customer.
5. Attach copy of the letter with TCS receipt with the request and file with AOF.
Third Party Mandate
Third party mandate is an authority that the account holder gives to a third party to sign
on his/her behalf. It is not given to everyone, the Manager Operation needs to approve
the operation.
1. Get third party mandate signed by the customer and the third party.
2. Get CNIC’s of both the customer and the third party.
3. Get Verisys.
4. Get the third party mandate approved by both the Branch Manager and the
Manager Operation.
Stop Payment
If a customer looses their cheque book, then that customer will have to come to the
bank and firstly report the loss and then stop payment, by telling the series of cheque he
has lost. By stopping payment, the customer is guaranteed that no illegal payment is
made from their account. The process for stopping payment, after the customer tells
that he has lost is cheque book is that he fills a ‘Form B’, which is same as a cheque
book requisition form and an indemnity form, stating no responsibility on behalf of the
bank if any illegal payment is made before the time of announcing a cheque book lost.

2. Mark stop payment in System (Record Received and Marked Time on Request).
3. Deduct charges, attach debit invoice with request (Rs. 200 per cheque + FED,
Rs. 500 Max for full cheque book +FED).
Dr. Customers Account 220
Cr. Service Charges Recovered 200
Cr. FED on Others 20
4. Attach Stop payment register with request.
5. Send Stop payment Letter to customer, attach copy with request (along with TCS
Receipt).
6. Enter in Stop payment register (current / saving).
7. File in Stop payment file. (Current / saving).
Sign Change Request

2. Get ID card from customer.
3. Get new SS Card sign.
4. Delete old sign in system.
5. Get new sign authorized and uploaded in system.
6. Attach request with AOF with cancel old SS card..
7. Mention date of change of signature on SS card.(W.e.f)

Dormant/Inactive Account
2. Get ID Card.
3. Unmark in system.
4. Attach Print out with request.
5. Get authorized.
6. File with Manager Operation.
Statement issuance
1. Sign on Request (Verify Sign, Affix Received Stamp)
2. Give statement to customer.
3. Deduct Charges by.
Dr. Customer A/c Rs. 55
Cr. Service Charges Recovered Rs. 50
Cr. FED on Others Rs. 5
4. After deducting charges, file request in the Statements file.
Bank Statement and Bank Balance

A bank statement tells the whole activity of a bank account over a period of time.
Customers often come and want their bank statements and have to fill a form, relating
to the time period for which the bank statement is needed. As part of my internship, I
was to assist the customer to fill the ‘Bank
Statement Form’ and printed statement is given through the banks software. Often
customers want to know their accounts balance over the phone and thus I had to tell
them their account balances using the banks information system “Bank Smart”

Zakat Exemption Request
Zakat is deducted on Pak Rupees Saving Accounts and on TDR’s. If a customer does
not want to pay Zakat he has to
1. Give a ZAKAT DECLERATION on Rs. 20 Stamp Paper.

2. Verify Sign of customer on the declaration and affix Received Stamp.
3. Make changes in system (Marking customer’s Fiqah under ‘Zakat’).
4. Enter in Zakat Register
Non Muslims are also marked under ‘Zakat’ in Account Maintenance. There Verisys
should show their Religion as Non-Muslim.
Clearing Department
Inward clearing
In inward clearing cheques of our customer which are presented in any other local or
out of station bank for payment are come back to the bank to honor. These cheques are
received through NIFT (National Institute of Facilitation Technology). These cheques
are examine date, amount in figure and words, signature of customer and stamps. If all
above mentioned particulars are in order then check customer account to inquire about
sufficiency of balance to pay. If balance is sufficient then cheque is cleared and
payment is made. In case of local Bank Alfalah Islamic or conventional branch the credit
is given through IBCA(Inter Branch Credit Advise). In case of local bank other than the
bank Alfalah the credit first given to the Main office of Bank Alfalah Islamic, SBP have

all banks main offices accounts, then transfer the fund to the respective branch main
office and their main office give credit to the respective branch.
Stamps by Bank Alfalah Islamic

One stamp that is signature verification.
Stamps by sending bank

Three stamps used by the sending bank
 Special Crossing
 Banker Discharge stamp at the back+ Signature of authorize officer.
 Clearing stamp(Date must be that at which cheque is presented)
Return of the Cheque

 Cheque can be returned on following basis,
 Amount in figure and words not matched.
 Signatures differ.
 Pre dated check.
 Date of presentation of check expired.
 Insufficient balance.
 Mutilated cheque.
 Stop payment by customer.
 Diseased account.
 Wrong stamps..

 Wrong date on stamp.
 Dormant account.
Outward Clearing
In outward clearing the cheques of the banks other than the bank Alfalah presented by
the customer on Bank Alfalah counter. Out ward clearing is of two types
Local Outward clearing

In local outward clearing the cheques of the local banks other than the bank Alfalah
presented by the customer on Bank Alfalah counter. Clearing department sent these
cheques through NIFT to the respective local branches. After stamping and entering in
their register. NIFT deliver the cheque to their respective local branch. That cheque
become inward clearing for that bank and repeats the process as mentioned before in
inward clearing and give credit to its Main office, SBP have all banks main office
accounts, then transfer the fund to the respective branch main office and their main
office gives credit to the respective Bank Alfalah branch.
Stamps on the cheque by Bank Alfalah Islamic In local out ward clearing
Three stamps are used
 Banker Discharge stamp at the back+ Signature of authorize officer.
 Clearing stamp (Date must be that at which cheque is presented).
Out of station Clearing

There are two ways of out of station clearing, these are
Inter city
In out of station clearing outward clearing the cheques of the out of station clearing
banks other than the bank Alfalah presented by the customer on Bank Alfalah counter.
Clearing department sent these cheques through NIFT to the respective out of station
clearing branches. After stamping and entering in their register. NIFT deliver the cheque

to their respective local NIFT of that city. That local NIFT deliver the cheque to their
respective local branch. That cheque become inward clearing for that bank and repeats
the process as mentioned before in inward clearing and give credit to its local Main
office of that city, SBP local have all banks main office accounts, SBP of that city
transfer the credit to its branch of that city in which Bank Alfalah Islamic branch need
the credit then transfer the fund to the respective branch main office and their main
office give credit to the respective Bank Alfalah branch.
This method is not used quite often because the status of the cheque can not be
determined. Usually prefer Outward bills for clearing. If cheque is send in this type of
clearing, nothing mentioned in effects of that account, it takes 4-5 working days to clear
the cheque. Clearing charges are 0.15% of the amount of that cheque + Rs.150 courier
charges.
Stamps on the cheque by Bank Alfalah Islamic In intercity out ward clearing
Four stamps are used
 Payees Account will be credited on realization + Signature of authorize officer.
 Clearing stamp(Date must be that at which cheque is presented).
 Intercity clearing.
Outward Bills for clearing (OBC)
Another way of out of station clearing is outward bills for clearing. In this type of clearing
out of station cheque are received, sent to the respective city Bank Alfalah Islamic
branch after stamping and giving number. Those cheques become local outward
clearing for that city Bank Alfalah Islamic branch. That branch clear that cheque as
mentioned before in local out ward clearing. When that cheque is realized the credit
given back to the branch who send it for clearing through OBC. This credit transfer is
given through IBCA.

If Bank Alfalah Islamic Don’t have branch in that city, cheques are sent to Bank Alfalah
Limited conventional branch. If conventional branch is also not there the directly sent to
the respective bank’s branch. In that case the credit can’t transfer through IBCA which
uses only for Bank Alfalah. Then the
Bank Alfalah Islamic request that bank to make the demand draft in favor of their branch
for realization of that cheque.
This method is used quite often because the status of the cheque can determine. If
cheque is send in this type of clearing, it will mentioned in effects of that account, it
takes 4-5 working days to clear the cheque. Clearing charges are 0.15% of the amount
of that cheque + Rs.150 courier charges. NIFT is not used in this type of clearing.
Stamps on the cheque by Bank Alfalah Islamic In intercity out ward clearing
Four stamps are used
 Payees Account will be credited on realization + Signature of authorize officer.
 OBC stamp with number..
Remittance Department
Cheque
Whenever a cheque is presented at the counter the cashier after a clear supervision
make payments and he finds any ambiguity he returned the cheque unpaid. The bearer
of the cheque sign the cheque in front and twice at back of the cheque.
Instrument used for transfer of money
Pay order: Used to transfer money within the city
Demand Draft: Used to transfer money outside the city
Pay Order

“Pay Order is a negotiable instrument made by the bank, on account of a customer, to
pay on order the specified amount to the directed person (payee)”.
Pay Orders are used to make guaranteed payment or to guarantee transfer of

money, most importantly with in the same city. Pay Order is always drawn on the bank
that has issued it. Rs 105 are charged for each pay order.
Explanation
When a person requires a Pay Order, he is asked to complete the prescribed
application form in which the amount of pay order is to be stated. Certain amount of
commission and advance tax is charged on issuance of pay order. After having the total
amount deposited in the bank (in cash or through cheque, in case of account holder),
pay order is issued in favor of the payee
Like cheques, when pay orders issued by Bank Alfalah Limited, are presented in other
banks to get them deposited in the payee’s accounts, they constitute the outward
clearing for those banks and inward clearing for Bank Alfalah Limited
The officer checks all the details in the application, makes out the charges for the
transfer that the customer will pay and then make the pay order for the customer and
pass the following entry
Customer A/c
Pay order payable
When the customer in favor of whom the pay order was made gives the pay order to his
branch, the entries passed are
Pay order payable
Customer A/c

Demand Draft
“A Demand Draft is a negotiable instrument issued by the bank, on account of a person,
and drawn on its own branch in a specific city or on the branch of another bank in that
city (in case bank doesn’t have any branch there), requesting it to pay the specified
amount to the person named on it”.
Demand Drafts are used to make guaranteed payment or to guaranteed transfer of
money, most importantly out of the city. Demand Drafts are always made for out of the
city payments. Or transfer.
Explanation
Suppose a customer requests to provide him a DD made on his account for a particular
city like Karachi. Then, after having the total amount (including commission and
advance tax) to be deposited with application form, demand draft is issued in favor of
the specified person in Karachi (supposed) and is drawn on Bank Alfalah Limited,
Karachi Branch. So, when this demand draft is presented by payee in any bank, it
constitutes the inward clearing of Bank Alfalah Limited, Karachi Branch.
There are two types of situations for transfer of money through demand drafts
Outward DD’s
When a customer comes to Bank Alfalah to make a DD to transfer money outside the
city is known as outward DD. The customer will fill the details in a DD application form,
and will attach a cheque or pay cash as he wish.
Then the officer will check all the details and make a demand draft for the customer and
pass the following entries:
For Cheque: For Cash:

Customer A/C Sundry A/c

Head Office Head Office
Inward DD’s
This is the procedure adopted when the issuing branch sends copy of the instrument as
an advice. When the bank receives the advice, the officer will pass the following entries
Head Office A/c

DD Payable A/c
When the customer comes with the DD to get his payment, the following entries are
passed:
DD Payable A/c
Cash
If that customer is a Bank Alfalah account holder then the following entries are passed
DD Payable A/c
Customer Account
Call Deposit Receipt (CDR)

Bank Alfalah Limited also issues Call Deposit Receipts (CDR).

“It is an instrument issued by the bank on account of a customer & in favor of a person,
to pay the specified amount”.
CDR’s are issued to make payments, especially when a company goes for some
tenders or for purchase of government securities. The bank enjoys the benefit of
keeping funds deposited until the payment is not made. During this time, the bank uses
the deposit and earns income on that.
Cancellation of PO.DD or CDR

After issuance of Pay Order, Demand Draft or Call Deposit Receipt by BAL-IBD, if any
one of these has to be cancelled by the customer, it is returned in the bank. For
cancellation original document must be presented. These instruments can only be
cancel by the instrument issuing branch. For CDR the organization for which it is made
must stamp it on back side to release the payment. Then, after deducting the
cancellation charges of Rs.100, the remaining (net) amount is paid to the customer
through Cash Payment Voucher.
Inter Branch Transfer

In inter branch transfer the customer request through an application to transfer the cash
from one account to another account like city school maintains the salaries account in
Bank Alfalah Islamic it can request the bank to transfer amount from salary account to
different staff members account.
Online Transfer
In online transfer first of all your account should be online. All Bank Alfalah Islamic and
Bank Alfalah Conventional branches are online and they are connected. When the
customer request the online transfer there is a module in Bank Smart Software they
open that module and hit that account in which online transaction needed. They can
only debit and credit that account , Signature can also verified for that account. But

details of that account only have by the branches that maintain that particular account. It
will take 5-10 minutes for online transaction depends on network. Flat rate of Rs. 105 is
charged per transaction.
Product and Services
The branch is dealing in the following Riba free consumer products

 Alfalah Musharaka Homes
 Alfalah Car Ijarah
 Alfalah Hilal Card
Alfalah Musharka Homes

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.
Fig 8
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 8with a free Title to the
property.
The Alfalah Musharaka Homes product can be used in multiple situations, giving you
pure Islamic solutions for your desired objectives.
 Purchase an already constructed house (Alfalah Buyer).

 Purchase a plot and subsequently construct upon it (Alfalah Builder).
 Renovate, extend, restore and enhance your already owned housing unit
(Alfalah Renovation.).
 Transfer your existing exposure of housing finance facility from another financial
institution to our Riba-free facility.
 You have the option to choose tenures for the purchase of units from between 3
to 20 years* * 3 to 7 years in case of renovation.
Alfalah Car Ijarah
A Shariah compliant car-leasing scheme with

added features such as
 No upfront registration charges


 No upfront insurance premium
 No rentals before delivery of car.
The facility applies to all locally-assembled new cars
Fig.9
 Up to Rs 4 million. Used cars not older than three years can also be considered.
Bank contributes up to 70% and 30% by the customer.
Alfalah Hilal Card

Carry your bank account in your wallet with Alfalah
HilalCard Bank Alfalah Islamic Banking Division
(IBD) offers Alfalah HilalCard to its customers for a
conscious free spending in a modernized form of
currency that provides you with a wide range of
accessibility using VISA’s worldwide network.
Fig 10
Alfalah HilalCard can be utilized for all your financial needs around the world, round the
clock, wherever VISA cards are accepted locally and Internationally, giving you a more
secure and convenient mode of payment.
The Alfalah HilalCard is an International VISA Debit card which gives you an unlimited
access to your current/savings (musharka) account with a simple swipe, at more than 1
million ATMs and 27 million outlets around the world.
The reasons that make Alfalah HilalCard different from others:
HILAL CARD IS A BUY NOW, PAY NOW OPTION.
 4 No monthly repayment
 4 No interest charges
 4 Backed by a customer maintained current/savings (Musharaka) account
 4 Your limit is your balance

 HilalCard can be used electronically at any retail outlet or ATM that accepts any
VISA cards.
Features
 24/7 ATm cash withdrawl facility for customer of
BAL/IBG customers-Rs50 k per day
Other 1 link bank Customer
VISA international users
 Balance Inquiry
 Mini account Statement
 Fast cash
 Pin Change
 Funds transfer on ATMs-Rs 50 k per day
 Utility Bills payment for
Electricity
Gas Bills
Mobile Phone Bill Payment
 BAL credit card Bill payment on ATM
 Cash –Deposit function on selective BAL ATMs
Money Gram
Money gram is an international cash transfer facility. Through this
facility funds can be send any part of the world to beneficiaries in
Pakistan and can be received in any of the Money Gram
authorized BAL branches.
MG is strictly a person to person transfer of cash
Bank Alfalah limited, in collaboration with MoneyGram, offers remittance service to
Pakistan. MoneyGram is person to person money transfer service that allows
consumers to receive money in just 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 MoneyGram service all
over the world.
Locker Service
Locker service is provided by the bank to its account holders of the following nature
1. Small
2. Medium
3. Large
This service is categories as on the basis of the value as shown in the table
Locker Value/Rs Charges p.a

Small 5 00k Rs 1000
Medium 750 k RS 2000
Large 1000k Rs 3000
Table.9

Financial Analysis
Profitability Ratios
The continued viability of any bank depends on its ability to earn an appropriate return
on its assets and capital. Good earning performance enables a bank to fund its
operations, remain competitive in the market and increase or decrease in market funds.
1. Return on Capital Funds
Formula = Net mark up Received
Capital Funds)
2009 = 6835605 = 34.57%

19770260
2008 = 6928926 = 50.03%

13766673
percentage
60
50
40
30 percentage
20
10
0
2008 2009

chart.1
Interpretation
This ratio relates the net profits to the amount of capital funds that have been employed
in making that profit.
The above given ratios suggest that the profitability of the bank has decreased last year
indicating less profitable operations of the bank.This ratio shows a weak financial
position of the bank.
2. Return on Assets
Formula = Net income after taxes
Total Assets
2009 = 897035 = 0.23%

389070055
2008 = 1301301 = 0.37%

348990764
0.4
0.35
0.3
0.25
0.2 percentage
0.15
0.1
0.05
0
2009 2008
Chart.2

Interpretation
This ratio indicates the profit earned by the bank on the resources employed. As far as
BAL is concerned, we observe an decrease in the utilization of the resources. It has
decreased to 0.23 % in the year 2009 from 0.34 % in the year 2008; the reason behind
the slight decrease in the profit may be due to the lack of efforts by the management.
3. Return on Deposits
Formula = Net income before taxes
Total Deposits
2009 = 1016316 = 0.312%

324759752
2008 = 1794720 = 0.59%

300732858
percentage
0.7
0.6
0.5
0.4 percentage
0.3
0.2
0.1
0
2008 2009
Chart.3

Interpretation
Interpret This ratio indicates to what extent deposits which represent funds mobilization
on the part of the bank contribute towards income generation. Although the other ratios
regarding the profitability are showing satisfactory position of the bank but still bank
need to increase its utilization of resources in order to increase its profitability because
the banks have to pay heavy taxes on their profit and this ratio is indicating that bank’s
income is decreasing.
4. Income to Expense Ratio
Formula = Income
Expense
2009 = 4071527 = 37%

11001542
2008 = 3543357 = 35.58%

9957130
percentage
60
50
40
30 percentage
20
10
0
2008 2009
Chart.4
Interpretation

This ratio signifies the proportion of the expenses that are causing to generate income
The ratios calculated above gives a clear picture of the bank’s operations. This ratio is
increasing from year 2008 to 2009 With respect to the banking expansions this ratio is
showing a very good picture as we know the expansions required lot of expansions,
although the operating expenses of the bank are increasing but their proportion of
increase is not alarming.
In short, the bank in an attempt to maintain at a good level of liquidity, has a low level of
profitability but there is a continuous push in the profits and there are chances that the
bank will reach at a point of high liquidity and profitability.
Liquidity Ratio
Liquidity can be defined as
“The bank’s ability not only to meet possible deposit withdrawals but also to provide for
the legitimate needs of the economy as well”
5. Advances to Deposit Ratio
Formula = Advances
Total Deposits
2009 = 188042438 = 57.9%

3542759752
2008 = 191790988 = 63.7%

300732858

percentage
37.5
37
36.5
percentage
36
35.5
35
34.5
2008 2009
Chart.5
Interpretation
It demonstrate the degree to which bank has already used up its available resources to
accommodate the credit needs of its customers.
This ratio, a comparison of funds generation and its funds mobilization, indicates the
total loans sanctioned by the bank in relation to total amount of money deposited with
the bank stands at 57.9%compared with the last year figure of 63.7%. This shows that
the bank has less potential to advance additional loans. Total loan able funds roughly
measured by the deposits are sufficient to enable the bank to make additional loans
without recourse to more or less continuous borrowing.
6. Deposit to Total Asset Ratio

Formula = Investment
Total Assets
2009 = 99159957 = 25.4 %

389070055
2008 = 75973238 = 21.7%

348990764
percentage
26
25
24
23
percentage
22
21
20
19
2008 2009
Chart.6
Interpretation
is an indication of BAL’s funds management policies. The funds allocation to the
financial institutions has increased to a great extent despite the fact that still it holds a
small proportion relevant to the total resources raised by the bank. It is a positive
indicator in the sense that the financing to the banks are the most secure ways of

lending. Considering the economic conditions of the country, it seems to be the best
alternative available to the bank.
7. Debt Ratio
Formula = Total Liabilities
Total Asset
2009 = 366936635 = 0.94%

389070055
2008 = 331946025 = 0.95%

348990764
percentage
0.95
0.95
0.95
0.95
0.94 percentage
0.94
0.94
0.94
0.94
0.93
2008 2009
Chart.7
Interpretation

It shows the relationship between total assets and liabilities. Debt ratio is decreasing
with the passage of time which is good for bank.
8. Capital Adequacy Ratio

Formula = Capital Funds
Total Assets
2007 = 12099 = 6.64%

182172
2006 = 9619 = 5.79%

166033
percentage
6.8
6.6
6.4
6.2
percentage
6
5.8
5.6
5.4
5.2
2008 2009
Chart.8
Interpretation

This ratio indicates the extent of the funds employed by the bank in the total resources
as shown in the balance sheet. This ratio has been increased with a good margin.
9. Capital Funds to Risk Assets Ratio

Formula = Capital Fund
Risk Assets
2009 = 19770260 = 10.5%

188042438
2008 = 13766673 = 7.1%

191790988
percentage
12
10
8
percentage
6
0
2008 2009
Chart.9
Interpretation
This ratio takes into account the difference between cash and marketable securities &
other kind of assets. Cash & marketable securities, which are risk less items, are

excluded to find out the true picture of the capital adequacy. In case of BAL the ratio is
increasing.
Concluding Remarks
1) Total income of bank is increasing which shows its good position
2) Operating expenses have increased due to formation of new branches
3) Net income before tax and provision has increased and after tax has decreased
due to tax provision increase including operating expense and interest expense
more interest.
4) Investments and deposits show a very good sign because they are increasing
with a large proportion
5) Shareholder equity is also increasing with a high proportion.
6) A total asset shows a better position of the Organization .

SWOT Analysis
SWOT is stands for strengths, weaknesses, opportunities and threats. SWOT analysis
is a careful evaluation of an organization’s internal strengths and weaknesses as well as
its environmental opportunities and threats. In SWOT analysis the best strategies
accomplish an organization’s mission by exploiting an organization’s opportunities and
strengths while neutralizing its threats and avoiding its weakness. During my internship I
also observe these factors of bank and made a conclusion which is as follows:
 Strengths
Bank Alfalah Image
Bank Alfalah is a reputable financial organization and is well known all over the
Pakistan. Perception is of producing a high quality services. Since, inception of
Bank Alfalah, it has moved rapidly in expanding branch network and deposit
base, along with making profitable advances and increasing the range of
products and services bank have made a break-through in providing premier
services at an affordable cost to our customers.
Bank Alfalah has been awarded an AA- (double A minus) and an A1+ (A one plus) in
the long and short term respectively by the PACRA. These rating denote very high
credit quality and very low expectation of credit risk.
The main source of a financial institution is public savings in this regard public
confidence plays a vital role. So, the confidences of customers are the main strength of
Bank Alfalah.
In order to maintain an effective communication of information regarding the need of
valued clients bank has designed its website to be as user-friendly as possible.

This facilitates to pursue the path of excellence and customer satisfaction through
delivering higher quality of services, thereby adding synergy to our existing
management expertise, financial strength and profitability. Hence, it’s a channel of
communication for the delivery of quality products and services that enhance value to
our stakeholders.
Customer Care
The Bank not only provides high quality services but it also look for the comfort and
convenience of the clients, BAL always preferred their customers.
Market Share
BAL has covered much of the potential market and the net profit is increasing years
after years. Deposits and advances have sufficiently increased.
Large number of diversify Products
This is also its main strength as it has diversified in many products in its not only in its
conventional but also in Islamic banking
such as:
1 Debit card/Alfalah Hilal card
2 Visa Card
3 Car Financing/Cra Ijarah
4 Home Financing?Musharaka Home
5 Money Grams
6 Import and Export Facility
7 Agriculture Financing
Islamic Banking
Bank Alfalah IBG bank is the reknown bank in Islamic banking sector. Following
the Islamic mode of businesses or Riba free banking It’s banking network in
Pakistan with many of them online branches in major cities of the country Lahore,
Karachi, Gujranwala, Faisalabad, Islamabad, Peshawar and Rawalpindi.

Automatic Operations
The operations performed by the bank are highly automated that result in assurance for
the customers that their transactions are completed reliably, efficiently and securely.
Full Day Banking
One can avail the benefit of the services provided at the bank till 6:00 P.m. which is
highly useful for those customers who find it difficult to leave their officers in the
morning..
ATM Network
The bank has the largest ATM Network cross the country. The customers of BAL
withdraw access their funds any time at all the ATM Sites .
Customer Oriented Network
The priority banking centers of the bank offer an unmatched where the customer
receives highly privileged services in a highly elegant environment. It gives the chance
of experiencing new standards in banking. Designed specially for those who appreciate
only the finest things in life,Priority Banking offers the very highest levels of
personalized banking to match customer’s unique status.
Electronic Banking
The revolution in the banking in the form of electronic banking operations have opened
avenues of excellent, efficient and quick services saving the time and costs of the
customers and fortunately BAL is among those few banks who are already reaping the
benefits of electronic transactions.
Electronic Fund Transfer

BAL management is quite prepared to adopt the latest advancements in technology
resulting in revolution in the banking operations such as check clearing process,
computer based teller equipment, automatic teller machines, and electronic funds
transfers among the others.

Branch Network
It is the greatest strength of the Bank. With the expansion of bank branches all over the
cities in Pakistan has increased its market share and No. of customer. The branch
network is according to the target market and the people look very satisfied with the
banking system and their progress too.
Sound Marketing
Skillful marketing of the products is being achieving countrywide goals of Bank Alfalah
Limited.
Phone Banking
Every account holder can confirm its balance on Phone and may ask for any query.
There are also 24 hours help lines for customers
 Weaknesses
As per Bank policy, advertising and publicity is not extensively emphasized. Through
advertisement customers could be kept abreast with the products and services.
The main focus of Bank is major cities of Pakistan. It is direly needed to extend its
network and people should be educated about the functioning of bank. Since, Bank
Alfalah has strong set up in UAE and Middle East, therefore, specifically those areas of
Pakistan should be targeted where large number of people is working abroad. Hence,
bank could avail an excellent deposit rate by using its annual budget specified for
network extension. Hence it weakens its progress.
Short Term Approach and Risk-aversive

Bank Alfalah always introduce new product to compete in the market but does not take
initiative, which shows that BAL plans in Short terms . Critics says that BAL has become
risk aversive.
Low Job Satisfaction
Understanding and the effective management of the human resources is the most
difficult challenge faced not only by the bank but by all the organizations. Even though
the people have been sacrificed in the new organizational developments, it is becoming
clear that the true lasting competitive advantage comes through human resources and
how they are managed.BAL seems to not focusing
on this highly critical issue as the job satisfaction level of the employees working at BAL,
was quite low.
Lack of Specialization
This famous and useful concept given by Adam Smith in 1776 seems to be missing in
the bank. The employees are constantly rotated from one job to another job of totally
different characteristic in the view of giving them the know-how of the working in all the
departments. But I think this is not a very good tactics used by the management.
Otherwise the situation might be like this ‘Jack of all and master of none.’
Centralization
There is a high degree of centralization in the bank. Almost all the decision-making is in
the hands of the upper management. But centralization is effective up to a certain level
otherwise it becomes inefficient and at times costly too. I personally observed that delay
occurred in the operations of the employees only due to the fact that they had not got
any instructions from the head office.
 Opportunities
The life cycle of an organization is comprised of threats as well as opportunities. If we
say, today the rates of challenges are too high but simultaneously the rate of

opportunities is also high. It is mandatory to try to make progress with consistency as
well as to adapt changes with the needs of time, in order to cope up with both
conditions.
In the prevailing scenario, Bank Alfalah could penetrate further and could capture
various corporate customers in addition to the retail customers by expanding their
network.
In addition to the excellent routine banking, it has earned a good name by offering
special products like car financing, home financing and credit card. So, the penetration
of these products could enhance the market share.
In the rapidly growing industry of Pakistan, launching of another SBU, Alwarid Mobile
will be an excellent addition towards the credibility as well as enhancement of Bank
Alfalah’s market share.
Bank Alfalah has launched another division known as Islamic Banking. This new
aspect will also attract a large number of people, who don’t want to deal with interest
bearing banking. Hence, it’s a new opportunity where competitors are limited.
Diversification
They may enter in new business or any other consumer-durable product in order to
promote their name, by introducing Loan for the students, small businesses, and
handicraft industry.
These are positive external environmental factors effecting the organization.

1) It deals in bulk business.
2) A large amount of foreign investment is attracted.
3) Strong potential for growth

4) Steady increase in Customer Deposits
5) Overseas Operations
6) Branches In Remote Areas
7) Islamic Banking
8) Sharp increase in imports and exports
9) Attractive rate of return
 Threats
While doing business, threats are part of the game. Especially, in this era, most of the
financial institutions are working as Private Limited Company and facing or have a fear
of threat from their competitor as well as new entrants.
In order to maintain as well as to enhance the market share, banks always try to
introduce new schemes / packages. Hence, the environment is very much innovative
and adaptive to the needs of customers.
Though Bank Alfalah has a strong footing and maintain a good number of loyal
customer, still bank has threats in various sectors:
a. In Car Financing MCB & UBL are threats however, the expected
car financing of ABN Ambro could also be a threat for Bank Alfalah.
b. In Home Financing Union Bank or to some extent NBP are
threats.
c. In credit cards, Bank Alfalah captured the market share of Citi
Bank and Standard Chartered Bank. Till yet the bank has no prominent
threat. But, the launch of Askari Bank Master Card and Union Bank Card
might be threat after some time.
State Bank Regulation

As the Bank introduces unique products so they face problem if State Bank Of Pakistan
employ taxes on them which force them to increase the rate of Interest.

Competitors
The Bank focuses to compete all the Banks operating in Pakistan, whether national or
multinational. The major threats of Bank Alfalah Limited are Al Faysal Bank, Bank Al
Habib, Askari Commercial Bank. Union Bank Limited, Standard Chartered Bank.
High Employees Turnover
As discussed above, the job satisfaction level of the employee is very low resulting in
high turnover, which is bad for any organization as there are huge monetary and non-
monetary costs involved in the fresh recruitments
SKILLS ACQUIRED
8 week internship at Alfalah bank will surely impact my career in a positive way. Many
things I have learnt there .I have come to know that how to deal with the customer at
bank and how to facilitate with the basic information. During this time period I this

training made me capable of opening an account and what are the in formations
required from customer.KYC(know Your Capital) is the considered very important in
banking. I also came to know how clearing department works and which are the parties
involved in it what is the procedure of clearing for inward and outward clearing.
I am pleased to have an a good working experience in remittance department. There
was very strict rule and regulation to be followed in this department in connection to the
cash room.
Working in this department provide me additional information about DD (Demand Draft),
PO (Pay Order) and CDR(Call Deposit Receipt). I learnt
What is demand draft, pay orders how it is prepared and which parties are involved in
it? I am now quiet familiar with the clearing procedure for OBC and the internal transfer
at bank.
In short this whole was a good experience at the Bank because this was a challenging
environment for every one who was working there.
Conclusion
The whole experience of internship was very good. I enjoyed my stay at the bank. The
staff and overall environment of bank is very supporting. Though I am a commerce
student and in the beginning I was unsure about my decision of selecting a bank for

internship. This was because I feared the lack of knowledge of many of the finance
related terms and jargons which will be used in my new working place. But the
employees and their proper guidance aided me in understanding the operations and
functions well.
The 8 weeks spent at Bank Alfalah Limited IBG Kotabdul Malik branch, no doubt a
source of immense learning for me. This practical training program did not only help me
acquire loads of knowledge about the predominant functions performed by banking
companies, but also imparted a lot of training as regards the set of behavioral traits
which distinguish a particular person from the rest of the lot in a professional
environment.
At this point it certainly is significant to write a word of gratitude for the University’s
administration, which makes it sure, that all the students get an exposure to practical life
in relatively well-reputed organizations.
I must share the fact that writing this internship report was an evenly memorable
experience as actually ‘doing’ the internship. I truly hope that this report also certifies
the fact that all of my worthy teachers performed their duties of academic guidance and
moral mentoring with utmost efficiency and effectiveness.
It seems that the priority is given to the corporate customers in Bank Al Falah as the
individuals from middle class have to remind the management of certain branch to do
the needful for them. Customer is the king and customer always right. Bank is earning
profit from the customers. Bank should have a proper relationship with corporate as well
as individual customers. It is recommended that the management should stress on
having satisfactory relationship with individual customers because they can also provide
the revenue in term of profit.
Recommendation
Alfalah bank IBG is a very good organization. It has earned repute for good public
dealing and also with the business point of view. Here the customers do not feel any

difficulty dealing with the bank due to the hard working staff. In spite of this effective and
efficient behavior exhibited by the bank, there always exists a room for improvement. I
have some suggestions, which can help bank in further escalating its status as a
serving organization. Following are various types of recommendations for Bank Alfalah
and by following these recommendations this banking company can achieve batter
performance in all aspects considered necessary for competing in insurance market.
1. Bank Alfalah Limited should provide greater facilities to its employees, and give them
bonuses for their hard work.
2. The pay should revise after two year.
3. Bank short give longer lasting impact of caring banking over the clients by providing
them extra care.
4. Bank Alfalah should look for more market in corporate sector
Job Rotation
There should be job rotation for the employees working in the banking either in the
same department or in some other departments.
Banking Professionals
The company should hire banking professionals having experience in their respective
fields that will boost the performance of the company as currently MBAs are produced
for this field so they should be hired for enhancing the performance of company.
Attract Customers
The banking company should offer such policies which would attract customers which
are denied by other banking in the market.

BAL is totally centralized bank. In order to improve the working condition of the
branches, modern techniques of decentralization must be adopted. Some of the
authority must be delegated to the lower management and the staff, up to some extent.
This will improve the confidence of the employees, their working performance and may
result in quick and prompt attenuation paid to the customers.
Control and Expansion
Expenditures must be in control, which currently are very high
Canteen for Employees
Because full day banking system is followed in Alfalah , employees have to stay in bank
for long durations of time. They already have no proper lunch break timings. Bank must
be very careful that in striving to facilitate its customers, it must not risk the satisfaction
level of its employees. They must be provided with all basic requirements, one among
which is the in-house canteen from where they can get the food whenever they feel like
having it.
Socializing
The most important recommendation is that the branch should have more of social
parties and evenings where the employers are invited so that this becomes a source of
motivation. Because working the entire time makes one socially dull. Also this will aid
the employees to develop a family culture and more association with their working
place. Thus together they will be able to out perform the existing competition in current
scenario of banking sector.
Bibliography
 www.bankalfalah.com 20.07.2010 to 25.07.2010 8.00 pm

 www.bankalfalahIslami.com 08.08.2010 to 12 .08.2010 9.00pm

 www.google.com 25.08.2010 7.00pm
 Annual Report 2008 & 2009(Audited by A.F.Ferguson & co. Chartered
accountant Karachi Dated March16,2010)
 Banking Circulars
 Financial Reporting &Analysis, 10th Edition By Charles H.Gibson (Business
School Edition Printed Access Card)- (Apr 27, 2006)

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Executive Summary: The Caring Bank

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Executive Summary

THE CARING BANK Page 1

THE CARING BANK Page 2

For long term „ AA‟ (double A)

For short term A1+ (A one plus)

THE CARING BANK Page 3

THE CARING BANK Page 4

THE CARING BANK Page 5

Basic Islamic Instrument

Bank Alfalah Islamic

THE CARING BANK Page 7

THE CARING BANK Page 8

Facility Minimum Profit Zakat deductions

All profits subject to 10% withholding tax

On-line cash deposit facility at all branches of Bank Alfalah

On-line transfer facility between all branches of BAL-IBD

THE CARING BANK Page 9

THE CARING BANK Page 10

 Alfalah Musharaka Homes

Islamic Financing Is Asset-Based Financing

THE CARING BANK Page 11

Alfalah bank Islami has 13 branches in Lahore, 14 in Karachi, 3 in Islamabad ,3 in

The Head Branch is in at Uni Tower, I. I. Chundrigar Road, Karachi.

I completed my Internship at Bank Alfalah Islami Kotabdul Malik Branch Sheikhupura.

“To be the premier

Organizations operating locally

and internationally that provided

the complete range of financial services

to all segments under one roof”

THE CARING BANK Page 12

“To develop and deliver the most innovative products, manage

THE CARING BANK Page 13

THE CARING BANK Page 14

Co-Chairman Central Management Committee

THE CARING BANK Page 15

H.E. Sheikh Hamdan Bin

Mr. Mohammad Saleem

Mr. Ikram Ul-Majeed

Mr.Khalid Mana Saeed Mr. Nadeem Iqbal Sheikh

THE CARING BANK Page 16

THE CARING BANK Page 17

Executive Incharge Executive Incharge

Executive Incharge Executive Incharge

THE CARING BANK Page 18

Celebrating 10 Years of Bank Alfalah

THE CARING BANK Page 19

Human Resource Planning in Bank Alfalah

Job Analysis and Design

THE CARING BANK Page 20

Job Description Job Specification

THE CARING BANK Page 21

Training and Development

THE CARING BANK Page 22

Performance Appraisal methods

THE CARING BANK Page 23

2. Bank is continuously looking for expansion in terms of deposits so highly

Core Values of Bank Alfalah

THE CARING BANK Page 24

THE CARING BANK Page 25

THE CARING BANK Page 26

Unique products and services

THE CARING BANK Page 27