INTERNSHIP REPORT ON

THE BANK ALFALAH LIMITED

MAIN BRANCH ABBOTTABAD (0068)

Submitted by
Sumra Ishaq

Roll # F-052-2013

Supervised by
Sardar Ejaz Ahmed

Government College of Management Sciences

Abbottabad

SESSION
2013-2017
 INTERNSHIP REPORT ON
THE BANK ALFALAH LIMITED
MAIN BRANCH ABBOTTABAD (0068)

Submitted by
Sumra Ishaq

Roll # F-052-2013

Supervised by
Sardar Ejaz Ahmed

This internship report is submitted in partial fulfillment of the

requirements of Bachelors Degree of Business Administration
awarded by the Hazara University,
Mansehra

Government College of Management Sciences Abbottabad

SESSION
2013-2017
 Government College of Management Sciences
Abbottabad

APPROVAL SHEET

Approval Committee
1. External Examiner

Mr.______________________ Signature______________________

2. Supervisor

Sardar Ejaz Ahmed Signature______________________

Designation Assistant Professor

3. Head of department

Prof. Mushtaq Ahmad___________ Signature_____________________

Designation Principal GCMS, Abbottabad
 DEDICATION

To my beloved parents who have been a great source of inspirations throughout my life.
 ABSTRACT

All praises and thanks to Almighty ALLAH. The lord and creator of this universe by shoes
power and glory all goods and things are accomplished. He is also the most merciful, who
gave me the ability and opportunity to work on this report. It is an academic requirement for
the student of BBA Hons to undergo an internship program of eight weeks duration. This
opportunity provides to the students to apply theoretical knowledge and gain practical
experience about the organization. The purpose of internship report is to evaluate the
performance of organization and give concrete recommendation for further improvements.
Another aspect of this internship is that it makes of a student imaginative and be dynamic and
takes him away from bookish and impractical philosophy. So it makes the student a practical
man and helps him to face difficulties of practical life and the solution of problems. Through
internship a student can judge his qualities and expertise, whish he gained from books.
As a compulsory requirement of Professional Degree BBA Hons. I opted to join Bank
Alfalah Limited, to fulfill my degree requirement. My reason for choosing Bank Alfalah was
to enhance my skills, so that to provide myself the opportunity to cope with real life situation.
To better understand the report my recommendation would be to look into different parts
mainly covering the overview of Bank Alfalah, overall management of Finance and
Accounts.
 Table of Contents

Chapter 01..................................................................................................................................1
Introduction to report.................................................................................................................1
1.1 Objective of the Study......................................................................................................1
1.2 Scope of the Study...........................................................................................................1
1.3 Importance of Study.........................................................................................................1
1.4 Methodology of the Study................................................................................................2
1.5 Limitation of Study..........................................................................................................2
1.6 Scheme of the Report.......................................................................................................3
Chapter 02..................................................................................................................................4
Introduction to the Organization................................................................................................4
2.1 Central Background Information.....................................................................................4
2.2 Company Background......................................................................................................5
2.4 Vision & Mission.............................................................................................................7
2.5 Organizational Hierarchy.................................................................................................7
2.6 Board of Directors............................................................................................................8
Chapter 03................................................................................................................................12
Departments of Bank Alfalah...................................................................................................12
3.1 Accounts Opening Department......................................................................................12
Major Deposit Account Products.............................................................................................12
Current Account...................................................................................................................12
Profit& Loss Saving Account..............................................................................................12
Basic Banking Account (BBA)............................................................................................12
Royal Profit Account............................................................................................................12
Kifayat Account...................................................................................................................13
Mahana Amdan Account......................................................................................................13
Alfalah Education.................................................................................................................13
Basic Requirements for Account Opening...............................................................................13
Internal Codes for Bank Alfalah Accounts..............................................................................14
Major Work Done by Account Opening Department..............................................................14
Stop Payment...........................................................................................................................14
Bank Statement and Bank Balance......................................................................................15
Account Opening.................................................................................................................15
3.2 Remittances Department................................................................................................15
Pay Order.................................................................................................................................15
 Procedure for Transferring Money through Pay Order........................................................16
Demand Draft...........................................................................................................................16
Outward DD’s......................................................................................................................16
Inward DD’s.........................................................................................................................17
Foreign Remittances.................................................................................................................17
Procedure for Foreign Transfers..........................................................................................17
3.3 Credit Administration Department (CAD).....................................................................18
3.4 Flow Chart Pre-Disbursement Functions.......................................................................19
3.6 Trade Finance Department.............................................................................................27
Chapter 04................................................................................................................................37
Human Resource Management................................................................................................37
4.1 HR’s Definition at Bank Alfalah....................................................................................37
4.2 HRM DEPARTMENT & BANK ALFALAH..............................................................37
4.3 RESPONSBILITIES OF HR OFFICER........................................................................38
4.4 JOB ANALYSIS............................................................................................................38
4.6 RECRUITMENT...........................................................................................................40
4.7 Human Resource Assessment........................................................................................43
Chapter 05................................................................................................................................53
Analysis of Bank Al Falah.......................................................................................................53
5.1 SWOT Analysis.............................................................................................................53
5.2 PEST Analysis...............................................................................................................56
5.3 Marketing Analysis........................................................................................................58
Chapter 06................................................................................................................................61
Conclusion and Recommendations..........................................................................................61
6.1Conclusion.......................................................................................................................61
6.2 Recommendations..........................................................................................................61
References................................................................................................................................64
 ACKNOWLEDGEMENT

Lots of thanks to Almighty Allah (The most merciful the most beneficial).The only creator of
universe who enabled me to complete this report, in spite of various difficulties. All respects
to the Holy Prophet (P.B.U.H) who enable us to recognize our greater and whose spiritual
teaching guide us every matter of life.
I would like to acknowledge my debts to those officers of Bank Alfalah Limited who have
been extremely helpful to me.
First of all Branch Manager, he has been a permanent source of encouragement and guidance.
His helpful nature did not restrict me to the premises to the branch but extended to any place
and any matter I needed his support on.
I would also acknowledge my debt to my supervisor Sardar Ejaz Ahmed for his continuous
guidance.
Moreover, I would also acknowledge my debt to my family for their helpful hand.
In short, I would always be thankful to all my managers and officers, for their courteous and
compassionate treatment to me.

Sumra Ishaq
 List of Abbreviations

ADBP Agricultural Development Bank of Pakistan

ATM Auto Teller Machine
APD Assets Product Division
AIGP American International Group Pakistan
BTF Balance Transferred Facility
ETD Electronic Technology Department
FC Foreign Currency
FDD Foreign Demand Draft
FS Financial Statement
IDBP Industrial Development Bank of Pakistan
IT Information Technology
IPD Investment Product Division
L/C Letter of Credit
L/G Letter of Guarantee
MNCs Multi-National Companies
MIS Management Information System
MT Mail Transfer
NIT National Investment Trust
NDFC National Development Finance Corporation
PLS Profit & Loss Sharing
RTCs Rupee Travelers Cheques
SBP State Bank of Pakistan
SBU Strategic business unit

EXECUTIVE SUMMARY
Pakistan after getting its independence, did not inherit a strong banking industry and since
then saw a number of events in the industry, like the nationalization of banks in the 1970’s.
However, the banking industry of Pakistan has been grown over the past few years, mainly
because of the consistent policies implemented by the Government of Pakistan, including the
privatization of banks in Pakistan. Also the State Bank of Pakistan’s, monetary policy has
been very friendly toward the banking industry. But in 2008 because of world economic
crisis, the economy of country was in crisis so the all businesses went down so as the banks
‘business result in lower performance and profibility. There are a number of different banks
established in Pakistan, including local incorporated commercial banks, foreign incorporated
commercial banks, development financial institutions, investment banks, discount &
guarantee houses, housing finance companies, venture capital companies, micro finance
banks and Islamic banks.

Pakistan has a well-developed banking system, which consists of a wide variety of

institutions ranging from a central bank to commercial banks and to specialized agencies to
cater for special requirements of specific sectors. The country started without any worthwhile
banking network in 1947 but witnessed phenomenal growth in decades to come. By 1970, it
had acquired a flourishing banking sector. Nationalization of banks in the seventies was a
major upset to domestic banking industry of the country, which changed the whole
complexion of the banking industry. With irrational decision at the top, all the commercial
banks were made subservient to the political leadership and the bureaucracy. The commercial
banks thus lost their assets management equilibrium, initiative and growth momentum. They
ceased to be a business concern and became big bureaucracies. The era of nineties was the
climax of privatization, deregulation and restructuring in the domestic banking industry and
financial institutions. The Muslim Commercial Bank was the first bank to privatize.
Followed by Allied Bank limited, United Bank Limited and Habib Bank Limited have all
been privatized.

I did my eight weeks internship at Bank Alfalah, Main branch Abbottabad and worked in
Credit administration department, Trade Finance Department, Account opening department
and remittances department. The over all experience at the bank was good. A lot of things
have been learnt, some of which relate to classroom learning. Alfalah is expanding its
network all over the Pakistan yet there are many untapped areas. 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. Social and technological issues are of secondary importance but they also can not be
neglected. BAFL is focusing positively regarding technological issues but it should also keep
its eye on the social cultural factors also.

Some of the recommendations include promotion on the basis of merit, loans to students and
scholarship programs for its employees. Lastly 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.
 Chapter 01
Introduction to report

1.1 Objective of the Study

For getting the Bachelors degree in Business Administration, each student is required
to spend at least 8 weeks as an internee in a recognized organization. The students are
required to work in their specialized fields.

The main purpose of this program is to make students familiar with the practical
work, as there is great difference between the theory they have learnt during their
BBA Hons (HRM), and how the job is practically done.

Another important aspect of the internship program is that the internee is placed in
most of the departments of the organization through job rotation. It provides them
with a glance of each department, as the working period is too short for learning in
detail.

1.2 Scope of the Study

1) It is a compulsory requirement for the award of a Bachelors Degree in

Business Administration.

2) It will help present and prospective students of the department in making

assignments and writing reports on the organization.

3) It can also provide help to the organizations management in identifying their

Strengths, Weaknesses, Opportunities and Threats.

4) It can also provide assistance to students seeking financial data for analysis.

1.3 Importance of Study

Banks play a central and a very important role in the economic life of a country.
That’s why they are considered as the lifeblood of modern economy. Today no one
can deny the importance of banking in the economy. They facilitate and expedite

1
trade and commerce and provide a variety of services that one can’t imagine with out
banks. Besides this, the AlFalah Bank plays an important role in the economic
development of Pakistan.

1.4 Methodology of the Study

The methodology that is adopted for this research project is based on both the primary
as well as secondary data. The sources of primary data were:

1. Formally arranged interview/ discussions with Management, Officers of the

Bank.

2. Personal observations.

The sources of secondary data were;

1. Annual reports

2. Over view of the Bank Alfalah Limeted

3. Bank statistical report

During the project, it was observed that enough written material regarding the Bank is
not available, so it had to count on the personal observation and interviews with
operational manager assist manager and other employees.

A lot of time was spent in the branch at each department and the information was
collected from discussions and interviews with Managers Officers, so most of the data
of this report is primary source.

1.5 Limitation of Study

The span of operation is too large to be covered completely in short time of 8 weeks.
Which does not permit to fully analyze and understand the function, and the privacy
policy of Bank also limits access to the organizational data and information that is
termed as confidential.

2
1.6 Scheme of the Report
The report is divided into five chapters as under:

Chapter 1: Includes Objective, purpose, scope, limitations, methodology, and scheme

of the report.

Chapter 2: Includes background and history of banking in Pakistan, background of

Bank Alfalah, roles, functions and branches.

Chapter 3: Includes organizational structure of Bank Alfalah, organizational charts

and departments of Bank.

Chapter 4: Includes financial, SWOT analysis and findings based on work in chapter
three.

Chapter 5: Includes recommendations of the study based on the analysis in the

previous chapter.

3
 Chapter 02
Introduction to the Organization

2.1 Central Background Information

Banking is one of the most sensitive businesses all over the world. Banks play an
important role in the economy and are considered as the backbone of an economy in
every country and Pakistan is no exemption. Banks are custodian to the assets of the
general masses. The banking sector plays a significant role in a contemporary world
of money and economy. It influences and facilitates many different but integrated
economic activities like resources mobilization, poverty elimination, production and
distribution of public finance.

Pakistan has a well-developed banking system, which consists of a wide variety of

institutions ranging from a central bank to commercial banks and to specialized
agencies to cater for special requirements of specific sectors. The country started
without any worthwhile banking network in 1947 but witnessed phenomenal growth
in decades to come. By 1970, it had acquired a flourishing banking sector.
Nationalization of banks in the seventies was a major upset to domestic banking
industry of the country, which changed the whole complexion of the banking industry.
With irrational decision at the top, all the commercial banks were made subservient to
the political leadership and the bureaucracy. The commercial banks thus lost their
assets management equilibrium, initiative and growth momentum. They ceased to be
a business concern and became big bureaucracies. The era of nineties was the climax
of privatization, deregulation and restructuring in the domestic banking industry and
financial institutions. The Muslim Commercial Bank was the first bank to privatize.
Followed by Allied Bank limited, United Bank Limited and Habib Bank Limited have
all been privatized.

Today, the banking sector is providing financial solutions to the masses and is
growing and becoming a solid partner in the development of the Pakistani economy,
this growth potential has seen different acquisitions in the banking sector, with the
Standard Chartered and Union Bank being the most prominent.

4
2.2 Company Background
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 “BAFL”.

5
2.3 Credit Rating
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)

These ratings denote a very low expectation of credit risk, strong capacity for timely
payment of financial commitments in the long term and by highest capacity for timely
repayment in the short term, respectively. Further, the unsecured subordinated debt
(Term Finance Certificates) of the bank has been awarded a credit rating of AA-
(double a minus).

PACRA, a premier rating agency of the country, has rated the bank ‘AA’ (double A),
Entity Rating for long term and A1+ (A one plus) for the short term. These ratings
denote a very low expectation of credit risk, strong capacity for timely payment of
financial commitments in the long term and by highest capacity for timely repayment
in the short term, respectively. The ratings of first and second and third unsecured
listed and subordinated TFC issues of PKR 650 million, PKR 1,250 million and
Rs.1,325 million have been maintained at AA- (Double A minus).

Strengthened with the banking of the Abu Dhabi Group and driven by the strategic
goals set out by its board of management, the Bank has invested in
revolutionary technology to have an extensive range of products and services. This
facilitates its commitment to culture of innovation and seeks out synergies with clients
and service providers to ensure uninterrupted services to its customers. It perceives
the requirements of its customers and matches them with quality products and service
solutions. During the past twelve years, it has emerged as one of the foremost
financial institution in the region endeavoring to meet the needs of tomorrow today.

The bank also entered into other dimensions of financial services –brokerage, asset
management, and insurance – through its subsidiaries, which are in their development
phase and would require sometime before emerging as material contributors to BAL‘s
revenue stream.

Source:http://www.bankalfalah.com/about-alfalah-bank/group-information-other-groups-2

6
2.4 Vision & Mission

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

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

2.5 Organizational Hierarchy

Chief Executive Officer

Co-Chairman Central Management Committee

Group Heads

Regional Managers

Area Managers

Hub Managers

Branch Managers

Source:http://www.bankalfalah.com/about-alfalah-bank/group-information/

7
It’s 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. After group heads in the hierarchy, there are regional, hub and area
managers who are managing and guiding the working of different branches of bank.

2.6 Board of Directors

The board of directors has the authority in guiding Bank affairs and in making general
policies. Directors are the personnel of the Bank Alfalah Limited follows.

H.H. Sheikh Hamdan Bin Mubarak Al Nahayan – Chairman

His Highness Sheikh Hamdan Bin Mubarak Al Nahayan is
a prominent member of the ruling family of Abu Dhabi in
the UAE. He is the Chairman of Bank Alfalah Limited and
the Chairman of Alfalah Insurance Company Limited. His
responsibilities as part of the UAE Government include
being the Minister of the UAE Federal Cabinet, Ministry
of Higher Education and Scientific Research. He also
serves as Chairman of Royal Jet, the premier aircraft
charter company in the Middle East, operating the world’s largest fleet of Boeing
Business Jets (BBJs). Prior to being appointed as the Minister of Higher Education
and Scientific Research, he served as Minister of Public works, Chairman of the
Sheikh Zayed Housing Program, Chairman of the National Transport Authority,
President of the Higher Committee for UAE Civil Seaport & Airport Security and the
National Media Council. Sheikh Hamdan has been Chairman of the Civil Aviation
Department of Abu Dhabi, Gulf Aircraft Maintenance Company (GAMCO), Abu
Dhabi Aviation and the Rotating Chairman of Gulf Air.

His Highness graduated from the UAE University in Al-Ain with double majors in
Economics and Administration.

8
Abdulla Nasser Hawaileel Al-Mansoori – Director
Mr. Abdulla Nasser Hawaileel Al Mansoori is a prominent
businessman of Abu Dhabi, UAE. He is Chairman of Al
Nasser Holdings and Group Companies. He was also
Director of the National Investor, Abu Dhabi, UAE. In the
past, Mr.Huwaileel Al-Mansoori was Director of United
Arab Bank, Water & Electricity Department of Abu Dhabi,
Director of Projects, ADNOC, General Industries
Corporation, Abu Dhabi and Director General & Vice
Chairman of General Industrial Corporation, Abu Dhabi. In addition, he held other
Board positions and Chairmanships of Abu Dhabi Ship Building Co, PJSC.
Mr. Abdulla Nasser Hawaileel holds a B.Sc. (Hons) degree in Electrical Engineering
from Swansea University, UK.

 
Abdulla Khalil Al Mutawa – Director
Mr. Abdulla Khalil Al Mutawa is the General Manager of
H.E. Sheikh Suroor Bin Mohammad Al Nahyan. He is a
Board Member of the UAE Banks Federation. He is also a
Director of the Abu Dhabi Commercial Bank Ltd; and
Director of Makhazen Investment Company in Abu Dhabi,
and Alfalah Exchange Company, Abu Dhabi. Mr. Abdulla
Khalil Al Mutawa is a former Director of Wateen Telecom
Limited, Pakistan and Warid Telecom (Pvt) Limited,
Pakistan. Mr. Abdulla Khalil Al Mutawa holds a B.Sc. in Business Administration
from the University of North Carolina, USA.

 
Khalid Mana Saeed Al Otaiba – Director
Mr. Khalid Mana Saeed Al Otaiba is the Office Manager
of His Excellency Dr.Mana Saeed Al Otaiba (Personal
Advisor to His Highness, the President of UAE). He is also
Deputy Chairman of Al Otaiba Group of Companies. Mr.
Mana is a Director of Alfalah Insurance Company Limited,
Pakistan. He is also Chairman of Liwa International

9
Investment Tourism and Royal Mirage Hotel & Resort Ltd, Morocco. He is also a
Director of Ghantout International. Mr. Khalid Mana Saeed Al Otaiba holds a
Bachelor of Arts & Science degree in International Economics from Suffolk
University of Massachusetts, Boston, USA.

 
Kamran Y. Mirza – Director
Kamran Y. Mirza is the Chairman of Philip Morris
(Pakistan) Ltd., Unilever Pakistan Foods Ltd. (UPFL) and
Education Fund for Sindh (EFSJ). He is also serving as
Director on the Boards of Abbott Pakistan, International
Steel (ISL), Karwan-e-Hayat and Safari & Outdoor Club
of Pakistan. Mr. Mirza has been the Chairman of the
Export Processing Zone Authority from 2007 to 2009. He
has also served as Chairman of Pakistan Mercantile
Exchange Ltd. and Karachi Stock Exchange (KSE), President of Overseas Chamber
of Commerce & Industry (OICCI), American Business Council (ABC) and Pharma
Bureau (Association of Pharmaceutical Multinationals in Pakistan). He was also
served the Pakistan Business Council, which is a think tank and a Business Policy
Advocacy Forum, as CEO and retired from this position in December 2015.

Mr. Mirza is a Fellow member of the Institute of Chartered Accountants of Pakistan

and the Institute of Chartered Accountants, England and Wales.

 
Atif Bajwa – Director & CEO
Mr. Atif Bajwa has been the President and CEO of Bank
Alfalah since November 2011. Mr. Bajwa has diversified
and rich experience in Banking and has held various senior
positions. He has been the President of the Abu Dhabi
Group (Pakistan), President of MCB Bank and Soneri
Bank in Pakistan, Regional Head for Citigroup for the
Central and Eastern Europe region, Head of Consumer
Banking for ABN AMRO’s Asia Pacific region as well as
Country Manager for ABN AMRO. Mr. Atif Bajwa is the President of the Overseas
Investors Chamber of Commerce and Industry (OICCI) and is also a Director on the

10
Board of various companies including Pakistan International Airlines Corporation,
Alfalah Insurance Company Limited and the Board of Investment. Mr. Bajwa
received his education at Columbia University, New York.

 
Efstratios Georgios Arapoglou – Director
Mr. Efstratios Georgios Arapoglou has extensive
experience in managing, growing, restructuring, acquiring
and integrating banks and financial institutions, in both
developed and emerging markets. He has been part of the
Boards of Directors and Board Committees of high profile
listed companies in SE Europe and the Middle East. Mr.
Arapoglou also has experience in interacting with
regulators, in raising capital in international equity and
debt capital markets and in developing and maintaining relationships with
international institutional investors. Mr. Arapoglou completed BA in Mathematics
from the University of Athens, Greece, B.Sc in Naval Architecture & Ocean
Engineering from University of Glasgow, Scotland and MTech in Management from
Brunel University, Uxbridge, London.

 
Khalid Qurashi – Director
Mr. Khalid Qurashi is a recently retired banker with
considerable international banking experience. He has
worked for 38 years with a major US International bank,
where his area of expertise was in corporate risk
management and profit centre/franchise management. He
was responsible for risk management for the Middle East,
Africa and Turkey operations. He contributed materially to
overall institutional policy debate and strategy formulation.
Before he took over responsibilities as a risk senior, he managed a couple of large
country franchises in the Middle East and Africa, where the portfolio encompassed a
wide spectrum ranging from large corporates, to governments, to financial institutions
as well as SMEs and PE companies. 
Source: http://www.bankalfalah.com/about-alfalah-bank/board-of-directors

11
 Chapter 03
Departments of Bank Alfalah

3.1 Accounts Opening Department

Accounts opening department is one of the departments that come under the
retail/general banking facilities provided by Bank Alfalah Abdali road. Some of the
major deposit accounts opened by Bank Alfalah Abdali road are as follows:

Major Deposit Account Products

Current Account
Current Accounts are non interest bearing accounts that have a minimum account
opening requirement of Rs. 10,000. No zakat is deducted on the accounts balance.
Furthermore all current account holders receive a Hilal debit card and there are no
restriction on the number of withdraws or deposits made to and from the account.

Profit& Loss Saving Account

Profit& Loss saving accounts can be opened with a minimum balance requirement of
Rs. 5,000 and profit is credited on a half yearly basis. There are no restrictions on the
number of deposits and withdrawal made to and from the account and all account
holders receive a Hilal debit card as well. Profit and loss saving account cannot be
opened by a business corporation, however can be jointly opened by individuals.
Profits are paid at 2% on all account balances.

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.

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.

12
Kifayat Account
Kifayat account is another saving account product that can be opened with a
minimum balance requirement of Rs 10,000, with a maximum limit of Rs 1 million.
Profit is calculated on a monthly basis, while it is credited on quarterly basis. Bank
Alfalah pays 7% pa interest on Kifayat Account.

Mahana Amdan Account

Mahana Amdan account is Term Deposit Receipt (TDR) for three years that can be
opened with a minimum balance requirement of Rs 100,000, with a maximum limit of
Rs 15 million. Profits are paid at 10% pa, credited on a monthly basis. Other features
of this account include free personal accident insurance and automatic renewal for
another 3 years, after the expiry of original period.

Alfalah Education
Alfalah education is a one year TDR that can be purchased by people having school
going children’s. A person can purchase a unit for Rs 100.000, with a maximum of 3
years. This TDR pays 7%, paid at maturity and gives an additional advantage of
giving monthly school fee of the children’s if the breadwinner of the family dies.

Source: http://www.bankalfalah.com/about-alfalah-bank/Products

Basic Requirements for Account Opening

The basic requirements to open an account for individuals/self employed are as
follows:

 CNIC
 Source of income (salary slip etc)
 NTN certificate (optional)
 Company letterhead or authorization (as required)

The basic requirement to open an account for a partnership:

 Partnership Deed
 Partners CNIC
 Company Letterhead
 NTN certificate (optional)

13
The basic requirement to open an account for companies:

 Memorandum of Association
 Article of Association
 Directors CNIC
 Company Letterhead
 NTN certificate (optional)

Internal Codes for Bank Alfalah Accounts

Some of the major account opened at Bank Alfalah Abdali road and their internal
codes are as follows:

Internal Codes for Some Accounts

Account Type Code

Current Account 010*****
Profit& Loss Account 020*****
BBA Account 0189****
Royal Profits 029*****
Current Account USD 018*****

Major Work Done by Account Opening Department

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.

Bank Statement and Bank Balance

14
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’.

Account Opening
Whenever a customer comes to open their account, they have to fill a relationship
contract with the bank. As part of my internship I had to fill these forms and then use
the appropriate bank stamps to complete these forms. Also as part of the relationship
form, I also had to do a ‘Verisys’, a verification system started by NADRA on the
CNIC of the new account opener. A ‘Verisys’ tells, if more information pertaining to
the customer is needed to open the account or not. Furthermore as all relationship
forms have to be sent to Karachi, a central location, for all account relationship forms.

3.2 Remittances Department

The need of remittance is commonly felt in today’s business. A major function of any
bank is to “transfer of funds form one place to another”.

There are two main types of instruments that are used to transfer money, which are as
follows:

 Pay order: Used to transfer money within the city

 Demand Draft: Used to transfer money outside the city

Pay Order
Pay orders are made to transfer money within the city and this is a safe way to transfer
money as the person who makes the transfer through pay order pays in advance. The
procedure that is carried out in transferring money through pay order is as follows:

Procedure for Transferring Money through Pay Order

15
The customer will come to the bank and fill in the pay order application, giving in the
details to which account the money is being transferred, the amount etc and attach a
cheque to pay for the pay order. Pay orders can also be made through cash but mainly
it is made through cheque.

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
Demand Draft is another way in which customers can transfer money outside the city.
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

16
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

Foreign Remittances
Another type of remittances is foreign exchange transfer from another country to a
Bank Alfalah account in Pakistan, through SWIFT. Bank Alfalah for foreign
exchange transfers takes the help of Citi Bank for routing.

Procedure for Foreign Transfers

The customer will come to Citibank to transfer money to Pakistan. The entries passed
will be:

Customer A/c

Citibank A/c

Citibank will then transfer that money to Bank Alfalah Karachi. The entries are:

Citibank A/c

Bank Alfalah Nostro A/c (khi)

Later Bank Alfalah will transfer the Nostro A/c money into the demand account.

17
Nostro A/c Bank Alfalah

Demand A/c

Now when the customer will come to take his money, the following entries will be
made:

Demand A/c

Customer A/c

3.3 Credit Administration Department (CAD)

Taking cognizance of the sustained progression of the bank business and the inherent
risk factors attached to expansion, the management felt a need for setting up of
independent Credit Administration Department (CAD) in its branches so as to
minimize the losses occurring from giving credit.

According to the Bank Chairman Review

“Conservative yet dynamic credit policy”

While adhering to the above policy it is imperative that the perfection

of security and enforceability of support documents are ensured for affective
Management.

Its main purpose is to streamline the working of CAD to mitigate the chances of
losses arising from incomplete security and documents covering advances.

It is suggested that CAD headed by a manager is to be set up in branches meeting the

following criteria

“Aggregate funds and non-fund based credit portfolio of

RS.500 million and above and minimum number of borrowing customers being
twenty five”.

The personnel of CAD are furthered advised to keep themselves update by the latest
instruction/regulation issued from Head Office, State Bank of Pakistan and Other
regulatory institutions.

3.4 Flow Chart Pre-Disbursement Functions

18
 Start

Receive sanction advice from credit manager

Obtain Security as per Sanction advice

Check all Facilities Documents

Complete registration of the Bank’s charge over security with SECP/ Gov authorities

Appraise Relationship/ If
credit manager and Complete
branch manager

Any exception to the

terms and conditions
of sanction advice,
ensure waiver obtained
for competent
authority A

19
Source: Self Made by observing Branch’s Functions during my Internship

20

Complete Standard facilities and security

documentation
 Lodge security and documents attested by the
concerned credit manager

Feed limits in the system

Release facilities

END

Source: Self Made by observing Branch’s Functions during my Internship

21
3.5 Flow Chart Post-Disbursement Functions

Start

Obtain relevant reports such as stock report,

insurance report etc. As per sanction advice

Review and monitor system generated

reports and other instruction periodically

Correct recovery mark up and other changes

relating to credit facility (ies)

Preparation and submission of statements to

SBP, HO, and other institutions

Safe keeping and periodical balancing of pre-

stamped documents/stamps papers
22

Issuance of guarantees
 END

Source: Self Made by observing Branch’s Functions during my Internship

23
24
Credit Administration Process

1. Registration of charge
The CAD manager has to register charge with security and exchange commission of
Pakistan (SECP) of mortgage/ hypothecation within 21 days from the date execution
of documents.

2. Securities/ Facilities Documentation

The CAD manager has following options while securing credit.

 First exclusive Charges: In first exclusive charges, first the claim of bank is
satisfied in the case of default of the borrower.
 Ranking Charges: In this, the ranking is given. The first on the ranking is
satisfied and then comes the second and so on.
 Pledge: It confers physical possession of movables but not ownership.
 Hypothecation: It is a security for a debt, which remain in the possession of
the borrower.
 Mortgage: It is a claim against real estate or fixed assets. The deposit of title
deeds without documentation can create a mortgage.
 LCs, Bank Guarantees, other guarantees

3. Valuation
A CAD manager can take value and evaluate security worth from the following
sources

Security Source
Deposits Computer prints out showing actual
amount
Government securities Face value or encashable value rates
published by the government of Pakistan
Shares Stock exchanges rates in daily newspaper
Mortgage of property/ assets Valuation report by bank’s evaluator
showing market value
Stock( under pledge, hypothecation) For pledge Karachi Cotton Association
issues its rates. For hypothecation stock

25
 report submitted by borrower
Book Debt/ Receivables Life of book debts/receivable submitted
by the borrower.
Life Insurance Policy Surrender value of life policies issued by
insurance company
Any other security As per terms of sanction advice

4. Stock report
Frequent submission of stock reports is necessary as per term of sanction advice.

5. Stock Inspection
Verification of stock is made and it should be the same as given in stock report. The
following are usually checked.

 Stock break up
 Evidence of ownership
 Quality/condition of warehouse
 Fire Protection adequacy
 Adequate protection from theft, burglary etc.

6. Insurance
Assets charged to the bank should be insured through an approved insurance
company. One month before expiry of the insurance policy, the concerned customers
should be reminded to renew the policy.

7. Search report
All public/private limited companies are required to register bank’s charge over its
current and fixed assets with SECP. Search report is prepared from the records of
SECP showing the ranking of charges over borrower’s assets to different banks.

8. Credit Information Bureau (CIB)

State Bank of Pakistan requires banks to obtain detailed information from CIB, SBP
when considering proposals of over Rs. 0.5 million to any borrower. In case CIB
26
report indicates over exposure/ default in meeting obligation etc. The accommodation
to the concerned borrower can be derived.

9. Borrower Basic Fact Sheet

SBP requires that all facility application should be accompanied by the Borrower’s
Fact Basic Sheet as per approved format of SBP.

Borrowers
The following are the categories of the borrowers

1. Corporate Body
The term “Corporate Body” will include:

 A company incorporated under the companies act.

 A corporation created by a ordinance/ a statute/ act of legislature

a. Obtain memorandum and Articles of association of the company

 Whether company is public limited and quoted on stock exchange, not quoted
on stock exchange is a private limited.
 Whether it is empowered to borrow?
 Are there any restrictions on the company’s power to borrow?
 What are directors’ powers?

b. Obtain board resolution and ensure that it contains

 Authorization to raise facilities

 Create Charge on company assets/pledge securities which are in companies
name

2. Partnership
The partnership deed is obtained. In its absence bank’s standard letter of partnership,
duly signed by partners is obtained. Although all partners are jointly and severally
liable for the debt of the firm, however, it is considered inexpedient to obtain personal
guarantees for good business reason.

3. Sole proprietorship

27
It is owed by an individual and there being no formal procedure to be followed for
setting the business so a declaration on the firm letter head evidencing proprietor’s
name etc is taken.

4. Individual
It is ensured that borrower is not suffering from any incapacity and is not a minor,
insane or insolvent. These people are not capable of contracting and therefore any
borrowing by them is unlawful.

5. Clubs, Associations, Trusts, Charitable societies

Extra care is taken as these borrowers may enjoy legal protection, which is not
available to others.

3.6 Trade Finance Department

Trade Finance involves the import and export activities. This department provides
protection to the rights of importer and exporter. The function of this department is to
serve as a bridge between the importer and exporter in order to settle a transaction.
When trade is taking place between the representatives of two countries (exporter and
importer), the exporter involves his bank (the Advising Bank) in the transaction, as
he wants to feel secure regarding timely payment of his goods in the required
currency. On the other hand the importer involves his bank (the Issuing Bank), in
order to get a sense of security regarding timely supply of the required product, in the
required manner.

Trade Finance Department handles two activities:-

 Import
 Export

IMPORT
Import Department of BAL deals with the import of merchandise. Import can be
defined as:

“The bringing of commodities into Pakistan from outside by sea, land or air.”

28
Requirement for the Importer

These requirement / document must be fulfilled from importer before doing the
import:-

 NTN (National Tax Number) certificate

 Sale Registration Certificate
 Membership from Chamber Of Commerce
 Questionnaire duly filled in
 NIC (attested copy)

Exports
Exports are major sources of earning foreign exchange and play an important role in
the economic development of the country. It helps to utilize excess resources of the
country.

“Exports mean selling goods to another country.”

Exports of all eligible commodities through authorized banking channels are

admissible under exchange control regulation.

Requirement for the Exporter

These requirement / document must be fulfilled from exporter before doing the
export:-

 Account holder of Bank Alfalah Limited

 Must be a Pakistani
 Membership from Chamber Of Commerce
 NTN (National Tax Number) certificate
 The person must have the Sales Tax Registration Certificate.
 Form E ( export form) dully filled in
 Sale Registration Certificate
Methods of Doing International Trade

29
  Letter of Credit
 Contract

LETTER OF CREDIT (L / C):

1) LETTER Of Credit (L / C) ADVISING
Letter of Credit (LC) is a written and conditional undertaking by a bank on the behalf
of applicant to the beneficiary to pay a certain amount at a certain date; if the
stipulated terms and conditions are complied with.

The process of International Trade starts with asking of importer to its bank for L/C.
Then importer’s bank will be called as issuing bank. The issuing bank sends the L/C
to Bank Alfalah Limited. A bank that receives the L/C is called an advising bank
because after receiving the L/C, it performs the L/C advising function. A cover letter
is prepared and is sent to the beneficiary of the L/C, advising him his L/C has reached
Bank Alfalah Limited and he should collect it immediately. A copy of the L/C is sent
along with the letter.

2) ISSUANCE OF E-FORMS
Government has provided facility to exporter in taking E-Form from any bank and is a
part of the exchange control mechanism of the State Bank of Pakistan. When an
exporter receives an L/C, his next job is to get an E-form from an authorized Bank.

On the E-form sent by the commercial bank following things are mentioned

 Description of the commodity

 Quantity of the commodity exported
 Amount realized
 Foreign bank charges
 Country of the importer

3) CERTIFICATION OF THE E-FORM

After filling in the complete information about the goods to be exported, the exporter
brings the E-form to the bank for verification. Bank issues E-form certification to

30
exporter and he submits it to the custom officer along with E-form certification to
certify E-form.

4) THE DOCUMENTS
After getting the E-form verified the exporter starts preparing his shipment. Banks
only deal in documents. In order to receive payment from his goods the exporter has
to send certain documents to the issuing bank via his negotiating bank. These
documents are.

Bill of exchange:
A bill of exchange is an instrument in writing containing an unconditional order,
signed by the maker, directing a certain person to pay a certain sum of money only to,
or to the order of, a certain person or the bearer of the instrument. It is drawn by the
exporter (drawer) and orders the importer or the importer’s bank (drawee) to pay to
the order of Bank Alfalah Limited (payee) a specific amount. If the draft is drawn at
sight, the importer must make the payment on receipt of the documents. If it is time
draft, the payment must be made within the specified time limit.

Commercial Invoice
The exporter prepares it. Its amount must tally with that of the L/C. It shows the name
and address of the importer as well as the invoice number. This number is very
significant as it is used in all the correspondence between the exporter and his bank. It
also contains all the specifications of the commodity being exported. The standard
definition of commercial invoice is that it is an itemized list of goods shipped to a
buyer, stating quantities, prices, and shipping charges.

Bill Of Lading
The shipping company or the airline that has been assigned the task of transporting
the goods issues these. The shipper must ensure that the goods are shipped and
handed over the right person when documents are presented to him. The standard
definition of a bill of lading is contract between the seller of the goods and the carrier.

31
The following are types of bill of lading:

 OCEAN Bill Of Lading

 Air Waybill
 Inland Bill Of Lading

Packing List / Weight List

The exporter prepares these lists in order to show that the consignment is according to
the order of the buyer. It gives a detailed account of the manner in which the goods
have been packed and the number of cartons they have been packed in.

Certificate of Origin
This document certifies the origin of the exported goods. In the case of exports from
Pakistan, the certificate of origin shows that the country of origin of the goods is
Pakistan. The certificate of origin is a document in which the exporter certifies to the
place of origin of the goods to be exported.

E-Form
It is a necessity for all exports out of Pakistan. All commercial banks always issue the
E-form in quadruplicate.

 Original: is sent to the custom officer

 Duplicate: Bank receive the duplicate
 Triplicate: is sent to the State Bank Of Pakistan
 Quadruplicate: is kept by the exporter for his personal record.

Export Visa
This document is required when the destination of consignment is Canada, America,
and U.K. Different countries fix quota for different commodities and restrict imports
of those goods with in a specific limit. There fore visa is required which is in fact a
permission to export goods to the specified countries.

Payment by importer
Exporters bank sends all the documents negotiated in LC to importers bank. Once the
shipment arrives in importing country, documents are kept with the bank until the
importer makes full payment to bank.

32
3.7 COLLECTION / NEGOTIATION

When the exporter comes to the bank with the documents, he has two options.

 Send them for collection

 Get Them negotiated

Collection
The bank sends the documents on behalf of the exporter to the importer’s bank for
payment. The payment is made in Pak Rupees and the exchange rate is the Buying
rate of the day normally called the T.T. Clean Buying Rate. When the reimbursing
bank is to pay Bank Alfalah Limited it credits its nostro account maintained with it
(the reimbursing bank), and afterwards bank debits the exporter’s account with the
local equivalent of the export proceeds calculated at the TT clean buying rate.

Negotiation:
The bank purchases the documents from the exporter i.e. the exporter gets them
discounted before their maturity. For example, the drafts are at 90 days from B/L date.
In simple words, the payment for the exports would be received after three months.
The exporter might not want to block his funds for such a long time. He can get his
documents negotiated the day he presents them to the bank. The exchange rate he will
get will however be lower than the TT clean buying rate because the bank is paying
him an amount that it is going to receive after three months itself.

Contracts are not negotiated however in any case. This is because they are unsafe
documents and the bank does not take the risk.

Dispatch:
The documents brought by the exporter are in the form of sets containing an original
and a number of copies. The number of each document required by the importer is
mentioned on the credit. Usually they are:

 Manually signed commercial invoice

 Bills of lading
 Packing list in quadruplicate
 Bill of exchange
33
Filing:
A separate file is maintained in each case and if the documents have been negotiated,
it is titled FDBP that is the abbreviation of Foreign Documentary Bills Purchased. If
the documents have been sent for collection, a file in the similar fashion is kept but it
is labeled FDBC i.e. Foreign Documents Sent For Collection.

CONTRACT
The exporter might export the goods based on a CONTRACT with the importer. In
such a case, there is no surety to the exporter that the importer will make the payment.
The importer might reject the goods on receipt and deny and payment to the exporter.
Therefore, the contract is an unsafe document. There are two types of contracts.

CAD (Cash against Documents):

The documents are sent to the issuing bank. The issuing bank informs the importer
that his documents have arrived. The importer deposits the amount of the contract
with the bank and takes possession of his documents have arrived. The issuing bank
then makes the payment to the exporter’s bank.

DA (Documents Acceptance):
Drawee takes documents and possession from the issuing bank and signs a bill of
exchange in return giving his acceptance for payment on a specific maturity date.
Now, if he does not make the payment to the issuing bank no payment is made to the
exporter and there is no liability on either bank.

3.8 Application of Class Room Learning

During my Internship at Bank Alfalah Abbbottabad, I saw some practical application
of some class room learning.

I saw most of knowledge application in Trade finance department and Credit

Administration. Operation department had less knowledge application.

34
Trade Finance Department:
At Trade Finance Department, I got a lot of practical exposure of studying
International Finance. Since this department mostly deals with imports and exports, I
saw the processing of letter of credit and the documents needed for imports and
exports. Customers were coming for the purpose of their business and they were
informed about the rules and regulation for importing and exporting. Letter of
guarantees were also issued by the department.

Credit Department:
At the Credit Department, my practical learning was excellent. At this department, the
loans are to be disbursed. So for this purpose a complete interview with borrower is
conducted and borrower is asked about its financial strength then a CLP is made.
Loan is disbursed after the complete study of financial reports such as balance sheet
and income statement. Making of installments, interest charging and calculation and
others all were practically performed at the department.

3.9 Product & Services

Karobar Finance
Alfalah Karobar Finance is short term facility that is only provided to individuals and
sole proprietors. This facility also has one year validity with markup charged on the
amount used. This facility again provides individuals to maintain their working capital
management and is again given to individuals for a security. Karobar finance is type
of current financing with difference i.e., in karobar finance, the individual has to clear
all his balance in his account, once in a year.

Milkiat Finance
Alfalah Milkiat Finance is a long term facility that is provided to SMEs and there are
four main types of facilities provided:

 Acquisition of rented commercial/industrial property

 Construction on an owned commercial/industrial plot
 Purchase of a commercial/industrial property
 Renovation of owned commercial property
Some of the features of Milkiat finance are as follows:

35
  Tenure of 2-15 years except for renovation, which is for 2-4 years
 Mark up of (KIBOR+5%)
 Financing from Rs 0.5 million to Rs 30 million
 Eligibility age should be less than 65, with 3 years of existing business

Quick Finance
Alfalah Quick Finance is another short term and a type of current financing facility
that is only provided to individuals for the fulfillment of personal or family needs.
The financing is given against the deposits and government securities up to the 90%
of the cash value of security. Financing is made from 50,000 up to 25 million.

3.10 The five C’s of Credit

i) Capital:
The capital & resources of the borrower his capital structure and the gearing ratios
either borrower Under-capitalized? Does the borrower have its own resources to fall
back on, in case of need?

ii) Capacity:
Capacity or the capability of the borrower to manage his business profitably and the
capacity to repay the advances and service the facilities according to agreed terms. Is
the borrower in a capacity to borrow? Or is there any legal complication?

iii) Collateral:
The security provided against the facilities. Is the security provided: Adequate,
Realizable, Marketable, Valuable, Storable, Non-perishable, Durable, and
Transferable/with clear Title.

iv) Character:
Are the borrower's personal character, market standing and reputation impeccable?
Has he met his part commitments? Does he have good bank reference?

v) Conditions:
Have the conditions of lending been drawn up taking into account all possibilities Is
the sector/industry in decline, is growing or it has reached at plateau? Is there a
market for the products and the market size to justify production plans and sales

36
forecasts? Are the economic conditions feasible generally and for the business, in
particular?

3.11 Learning as an Internee

My internship experience has given me a realistic preview of my field of education.
Now I feel that I am better prepared to enter the world of professional work. I have
come to know and been appreciated by a number of professionals who are lending
their services to the banking sector for more than a decade. I feel honored that I have
worked with such experienced professionals. I must admit that such interaction in this
respectable professional community will help me in seeking out job opportunities in
the near future. Each task I performed was a different experience in itself. By the end
of it, I must say I realize my potentials, I have realized that earning money is not so
easy after all, it takes a lot of hard work and devotion, and not to forget time. And I
now know that if I want I can make things possible, and I also know how good it feels
to having accomplished something and being appreciated for it. I definitely have
learnt things, which will impact my career and my character.

The overall experience of my internship was very good; I have learnt the sense of
responsibility in its literal meaning. I am now capable of dealing with different sort of
customers, and how to be patient while doing so. Besides this I also gained knowledge
about banking which I previously lacked and many more products being offered by
the bank. So in a nutshell, this internship gave me the experience, which would no
doubt boost my confidence to work in future.

37
 Chapter 04
Human Resource Management

“The policies and practices involved in carrying out the “People” or Human Resource
aspects of a management position, including recruiting, screening, training,
rewarding, and appraising”

The concepts and techniques need to carry out the “people” or personal aspects of
management job are:-

 Conducting job analyses (determining the nature of each employee’s job)

 Planning labor needs and recruiting job candidates
 Selecting job candidates
 Orienting and training new employees
 Managing wages and salaries (compensating employees)
 Providing incentives and benefits
 Appraising performance
 Communicating (interviewing, counseling, disciplining)
 Training and developing managers
 Building employee commitment
4.1 HR’s Definition at Bank Alfalah

“We Are Struggling For People.”

4.2 HRM DEPARTMENT & BANK ALFALAH

Like other organizations HRM department acts as the mind of the organization.
Without the HRM department Bank Alfalah cannot imagine being able to function. At
Bank Alfalah, HRM has great significance, everybody depends on this department for
the entire organization to work and succeed in its mission.

38
4.3 RESPONSBILITIES OF HR OFFICER

Following are the responsibilities of HR Officer in Bank Alfalah:-

 Recruitment And Selection

 Policy Making
 Retention Program
 Improve Working Relation Of Employees

HRM Management Responding To Changing Environment:

Bank Alfalah’s HRM Management is responding to changing environment by

 Follow Customers Needs

 Adopt Continuous Changes
 Decentralized Organization

COMPETITIVE ADVANTAGES

Bank Alfalah has following competitive advantages over its competitors:

 Strong Pay Structure

 Retention Program
 All Banking System Based On It
 Select People From Top Universities
 Account EI Has 30 Years Work Experience

4.4 JOB ANALYSIS

“The procedure for determining the duties and skill requirements of a job and the kind
of person who should be hired for it”

Job Analysis includes:

39
 Job Description
 Job Specification

Job Description:

“A list of job’s duties, responsibilities, reporting relationships, working conditions,

and supervisory responsibilities”

Job Specification:

“A list of job’s human requirements,” that is, the requisite education, skills,
personality, and so on “

METHODS OF COLLECTING JOB ANALYSIS INFORMATION

There are two methods of collecting Job Analysis Information:-

 Interviews
 Observation

INTERVIEWS

“A procedure designed to obtain information from a person through oral responses to

oral inquiries”

Who Conducts Interview?

“Interviews are taken by the branch HR head responsible for recruitment and
selection”

Types Of Interviews Taken:

 Structured interview only

 Structured Sequential Interviews
 Panel Interview

Criteria for Selecting Candidates:

40
Following is the criteria for selecting candidates in Bank Alfalah based on:

 Communication Skills
 Present Personality
 Educational Background (etc.)
 Skills And Competency

INTERVIEW QUESTIONS

 Why Should I Hire You?

 Why Do You Want To Work For Us?
 What’s Your Great Strength?
 What’s Your Great Weakness?
 How Much Salary Do You Expected From Us?

4.6 RECRUITMENT

“The development of a pool of applicants for jobs in the organization”

Sources Of Job Recruitments:

Following are the some sources of Job Recruitment in Bank Alfalah:

 By Universities
 By Website
 By Coaching
 By Newspapers

Recruitment Process:

Following are the recruitment processes in Bank Alfalah:

1.) Assess need (strategic planning and tactical planning)

2.) Create a pool of candidates:

41
3.) Screen out candidates:

4.) Make selection

5.) Evaluate recruitment process:

1.) Assess need (strategic planning and tactical planning)

There is no fixed quota of number of employees to be recruited, it depends on need

and the strategic (organizational) and tactical (branch level) requirements.

2.) Create a pool of candidates:

The prospect candidates are attracted through advertisement in the newspapers, on the
website online and also the walk in.

3.) Screen out candidates:

Through interviews and tests they screen out the less attractive candidates.

4.) Make selection:

After further interviews and other processes the final candidate is selected. Questions
in an interview are made by doing proper job analysis of the job. That includes
identifying the job duties and requirements.

5.) Evaluate recruitment process:

Evaluate effectiveness of recruitment by comparing the results to expected results.

TYPES OF RECRUITMENT

There are two types of recruitment in Bank Alfalah:

1. Internal
2. External

42
1. Internal:

“Includes recruiting of already existing employees for new jobs within the
organization”

2. External:

“Includes bringing “new blood” in an organization. Recruiting people who are new”

INTERNAL RECRUITMENT IN BANK ALFALAH

Bank Alfalah normally

 Less emphasis on Internal Recruitment

 Existing employees can respond to new job offers as externals
 Performance appraisals

EXTERNAL RECRUITMENT IN BANK ALFALAH

In Bank Alfalah external recruitment is on

 Need basis
 No yearly or monthly recruitments
 Every branch has it’s own HR department
 Head office sanctions recruitment for new employees
 Adds in leading newspapers (Dawn, Jang)
 College Recruitment (under planning)
 Online application forms
 Short listing
 Interviews
 Decisions made through head office
 No help from recruiting agencies

DIRECT INDUCTION OF FRESH CANDIDATES

Through direct induction of fresh candidates, Bank Alfalah is able to employ fresh
postgraduate candidates for its organization and the process is as follows:

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EXPERIENCED PROFESSIONALS

Based on requirements of experienced staff, Bank Alfalah also recruits talent from the
marketplace. Bank Alfalah offers competitive salary / benefits to worthy professionals
at all levels who wish to join hands with Bank Alfalah. The procedure for selecting
such professionals is as follows:

 Executive Recruitments:
 In Bank Alfalah, Executive recruitments are done by CEO.
 Recruitment of MTO’s (Management Training Officers):
 In Bank Alfalah, recruitment of MTO’s is done on Yearly Basis
 Recruitment of Internees:

In Bank Alfalah, recruitment of Internees is on

 Walk-ins
 Letter of recommendation from college

4.7 Human Resource Assessment

Bank Alfalah Ltd. has worked hard to build its human resource team and ensure that
the quality of newly inducted staff is not comprised with growth. For recruitment and
selection bank‘s policy is to hire suitable candidates. By suitable candidates bank
refers to candidates having proper educational qualification, experience and
background.

Bank Alfalah not only is one of the fastest growing bank in Pakistan, that provides its
customers with a number of financial services, but is also a great employer of human
resources, that provides its employees with a conducive environment that not only is
challenging but also helps them in applying and gaining knowledge.

The above figures show that all prospect employees feel confidence in Bank Alfalah
as their prospective employer. Bank Alfalah, as a response to this confidence has
three ways of employing prospect employees for their organization.

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OREINTATION

The orientation program of Bank Alfalah contains:

 Introductory Lecture
 Printed “ Employee Hand book” in Bank Alfalah
 Time Duration
 Familiarize new employees with their new jobs, work units and organization
in general.

BATCH TRAINEES

All employees selected through this process, have to first complete a probation period
before given a complete status of a Bank Alfalah employee. The major benefit of this
procedure is that Bank Alfalah can employee a large number of employees at a lower
cost. The procedure for accepting a batch trainee is as follows:

4.8 TRAINING

“The process of teaching new employee the basic skills they need to perform their
jobs.”

Basic Steps in Training:

Following are the basic steps in training employees in Bank Alfalah:

 Need Analysis
 Instructional Design
 Validation
 Implementation
 Evaluation and follow up
 Training Mangers and faculty is hired for training purposes.
 Training Mangers are in their respective head offices

The Training Centers Of Bank Alfalah:

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Bank Alfalah’s training centers are in Karachi & Lahore. These training centers are
responsible for providing multi-level high quality training programs in following
areas:

 Consumer banking operations

 Credit administration/documentation

 Trade finance operations 

 Marketing & selling skills 
 Customer service skills 
 Performance appraisal skills
 Time management & personal effectiveness

TWO SCENARIOS OF TRAINING

Training Calendar:

In Bank Alfalah, Head office devises a calendar according to which they train their
employees

Need Basis:

In Bank Alfalah, Branch Manger realizes that specific department lacks in some skill.

TWO TYPES OF TRAINING

On The Job Training:

“Training a person to learn a job while working on it”

Off The Job Training:

“Training an employee to learn a job while providing him a class room environment”

ON THE JOB TRAINING

“On The Job Training” in Bank Alfalah is done by

46
  Making teams of new employees with a few old specialized Employees.
 Contribution to overall productivity.
 Lower cost
 Lower Time

Management Training Officers (MTO) Training Program:

In Bank Alfalah, MTO’s training program is 3 months On the Job Training & 9

months Off the Job Training.

OFF THE JOB TRAINING

In Bank Alfalah, Off the Job Training is done by

 In-house training ,done at least once a year

 Employees from all over Pakistan attend seminars and courses.
 Employees are tested after the completion of the course
 Specialist trainers are hired
 Provide a proper learning environment to the employees
 Professional faculty is hired
 Increases employee loyalty
 Labor productivity is zero
 Cost is high
 Time is consumed

4.9 Training & Development:

In Bank Alfalah, employee is trained & developed in following different operations:

 Consumer Banking Operations

 Credit Marketing & Credit Proposals
 Credit Administration/Documentation
 Trade Finance Operations
 Marketing & Selling Skills

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  Customer Services Skills
 Performance Appraisal Skills (Self Appraisal)
 Time Management & Personal Effectiveness

4.10 PERFORMANCE APPRAISAL SYSTEM

“Evaluating an employee’s current and / or past performance relative to his or her

performance standards”

The performances of employees are appraised yearly at Alfalah Bank. HR head said
that

“Performance appraisal helps us in estimating employee’s current performance,

setting work standards and then providing feedback to employees with the aim of
eliminating performance deficiencies”.

APPRAISAL METHOD AT ALFALAH

The Appraisal Methods at Bank Alfalah are

1. Self Appraisal Method

· Ratting

· Evaluation

1. Problems During Appraisal

· Unfair Assessment (Bias)

BEHAVIOR APPRAISAL

In this service oriented industry behavior is as important as performance on job. To

manage behaviors and appraise company has devised a managing behavior system to
evaluate their core values. Each employee in such a system is rated against the
behavior performance achieved, against the required benchmark applicable,
depending on the Job Grade.

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PERFORMANCE STANDARDS AT ALFALAH

Alfalah Bank Has laid down the following Performance Standards:

1-Demonstrates Commitment

2-Aligns Activities

3-Promotes Alfalah Long Term Objectives

MANAGING CAREER & FAIR TREATEMENT

In Bank Alfalah, Managing Career & Fair Treatment is based on:

 Promotion Decision
 How To Handle Transfer
 Communication At Alfalah
 Manage Dismissals

PAY PLANS & INCENTIVES AT ALFALAH

Pay Plans:

Pay plans Alfalah are establish on the basis of job ratings. All jobs are ranked from
top to bottom, on the bases of compensable factor. Employee with higher rank gets
highest pay and incentives.

Compensation Plans for Employees:

In Bank Alfalah, compensation plan for employees includes:

 Basic Salary
 Bonuses
 Medical Facilities
 Allowances

Incentive Plans:

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In Bank Alfalah, incentive are provided to

 Managers and Executives

 Middle and Lower Level Employees

4.11 EMPLOYEE BENEFIT & SERVICES

The employee benefits & services provided by Bank Alfalah are

 Health & Life Insurance

 Paid Annual Vacations, Leaves, Holidays
 Health Insurance Of Parents
 Pension & Provident Fund
 Discount On Company Products
 Annual Bonuses
 Educational Plans
 Social Events
 Customized Services
 Creative, Learning & Healthy Environment
 Highly Qualified, Experienced & Committed Staff
 Profit & Gain Sharing Plans

Financial Benefits:

The financial benefits provided by Bank Alfalah to its employees are

Severance – Pay

Severance Pay is given according to

1. Policy
2. Give Full & Final Settlement
3. Half Salary As A Complementary (Optional)

Supplemental Unemployment Benefits

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Supplemental Unemployment Benefits are given

1. During Annual Routine Audits

2. Other Privileges

Insurance Benefits:

Bank Alfalah gives insurance benefits on

 Worker’s Compensation
 Complete Life Insurance
 Hospitalization & Medical Insurance

Other Benefits:

Other benefits provided by Bank Alfalah to its employees are

 Pregnancy Compensation
 2 – Bonuses For Each Employee
 Faster Promotion
 Introduction Of MENTORS
 Bank Alfalah MOHTISIB
 Staff Suggestion Scheme
 Family Community Concept
 Salary Of Own Choice
 Job Rotation Facility
 Prizes & Gifts
 Refreshment Packages
 Short Courses & Trainings + Training Material
 Traveling & Stay Allowances
 Communication Benefits

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Retirement Benefits:

Bank Alfalah gives retirement benefits on the basis of

 Age
 Pension Plans
 Provident Fund Facility
 Early Retirement Window
 No-golden Offerings & Defined Contrib. Plan
 No-social Security & Deferred Profit Sharing

Services Benefits:

Following services benefits are provide by Bank Alfalah to the employees:

 Introduction Of MENTORS (HR – REPRESENTATIVE)

 Counseling Services -

Financial, Career, Job-placement, Grievances

 Bank Alfalah Mohtisib

 Lunch & Learn Program
 Employee Transportation
 Educational & Training Subsidies
 Flexible Benefits Programs (Few-limitations)
 No-subsidized Child & Elder Care

EMPLOYEE SAFETY & HEALTH CONTRIBUTION

Bank Alfalah is

 Strict About Occupational Safety Laws

 Obeying The OSHA – Standards
 Major Responsibility – Br. Manager
 Routine Safety Audits

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 Inspection & Citations By Head Branch
 Managing Proper Responsibilities & Rights Of
 Both Employer & Employee

Avoiding the Causes Of Accidents:

Bank Alfalah’s management plays an important role in avoiding the three causes of
accidents

 Unsafe conditions
 Unsafe acts
 Accident prone people

HEALTH PROBLEMS & REMIEDIES

Following are the steps that taken by Bank Alfalah’s HR Department to solve the
health problems in the organization and make possible remedial changes

 Smoke Free Environment

 Role Of Mentors ; Regarding
 Job-stress , Burn-out , Health Conditions
 Remedies For VDTS & Other Tools
 Vaccinations & Health Treatments

Other Precautionary Measures:

Other precautionary measures taken by Bank Alfalah for the safety of employees are

1. Personalized Attention To Employees

2. Angry Employees Management
3. Temporary Stop The Working
4. Counseling
5. Real Root Problem
6. Use Of Personal Skills
7. Professional Attitude Adopted

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 Chapter 05
Analysis of Bank Al Falah

5.1 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:

Main strengths of bank are describe follows due to which bank is becoming
successful day by day and now is on the fifth largest and successful bank in Pakistan
in the bank’s ranking after NBP, MCB, UBL and HBL.

 Being the private organization its main aim is not to earn profit but also to
satisfy its customers and slogan of BAL is also the representative of this
purpose as Bank Alfalah “The Caring Bank”.
 Bank has AA (Double A) and A1+ (A one plus) Credit Rating for long term
and short term loans respectively.
 Main source of profit for any financial institution is public saving which only
comes from public confidence and BAL is getting this confidence which is
one of the main strengths of bank
 Bank Alfalah is also getting fame in the market due to its name “ALFALAH”
which is leaving the Islamic and favorable impact on the minds of public.
 BAL is providing the facility of Money Gram to its entire people who are its
customer or not and through this service it has got the leadership in Money
Gram because any other bank is not offering this service.
 With in very short period it has got a superb accomplishment which shows the
competency of top management.

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  Personnel of Alfalah are well trained and highly skilled.
 Bank Alfalah has a wide network of branches at the ideal locations, catering
the financial needs of its clients.
 The management of the bank is very much concerned with the development
and improvement of the working environment. The bank has state of the art
and purpose built branches where all the modern technologies are provided to
get the efficiency of the workforce and the customer satisfaction.

Weaknesses:

Beside all these strengths I also noted some weaknesses in the operations of bank
Alfalah which are described below:

 BAL is that it is not offering the loan facility to newly established businesses
because it’s the BAL policy that it will loan only to that people who are
running their businesses from 3 years.
 BAL’s lending procedure is quite complicated that some people hesitate to
come as they are requiring a huge file of documents.
 Bank Alfalah is not offering any credit facility for students.
 BAL is not offering the online facility to account holders having photo
account.
 Bank Alfalah is charging online charges for transfer of money but some other
banks not charge online transfer charges.
 Majority of the workforce consists of young professional, they lack in their
experience. And sometimes lack of experience becomes a hurdle while serving
to the customers. It is the point where they feel difficulty while competing
with the other banks.
 It was observed that at present the motivation level of the employees is not
very much.
 The increased workload has resulted in the reduced efficiency of the
employees. Because now the time required for completing the tasks for a
single customer has been increased. As a result the environment of the branch
has become very messy.

55
Opportunities

It is mandatory to try to make progress with consistency as well as to adopt changes

with needs of time, in order to cope up with both conditions.

 Bank Alfalah is spreading its network outside the boundaries of Pakistan and it
has more opportunities to extend this network as State Bank of Pakistan has
prescribed new policies in the prudential regulations.
 In addition to excellent routine banking, it has earned a good name by offering
special products like car, home and credit cards facility. So the penetration of
these products could enhance market shares.
 There is a very good growth trend in the Islamic banking in the country and in
the world as well. BAL has the advantage of having Islamic Banking network
and the growth in this particular field can be very fruitful for the bank, bank
has an opportunity to introduce new products and services in Islamic banking.

Threats:
Threats are the negative trends in external environmental factors. As on one side
environment provides opportunities to one organization, on the other hand it also has
to face some threats. Bank Alfalah also has to face this situation.

 Other foreign financial institutions like City Bank, HSBC etc also having
strong banking policies and there’s a chance that people might move toward
these financial institutions to secure their investments, transactions and related
services.
 For last seven year there is political stability in Pakistan but now again a new
layer of political instability arises which effects almost all industries including
Banks.
 Due to economic instability like currency depreciation and inflation, the bank
is constantly facing a threat e.g. in case of inflation the people have low
disposal income which means lower deposits in banks.
 Other investment opportunities like investment in property and gold are giving
people more return as compare to banks; it can decrease the deposits of bank.

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5.2 PEST Analysis
A broad view of market is important when management is interested in introducing
better services for customers. Rapid technological change, global competition and the
diversity of buyers preferences in many markets require the constant attention of the
market vouchers to identify promises business opportunities, see the shifting
requirements of the buyers, evaluate changes in competitors positioning and guide the
choice of which buyers to target and classify them according to respective segments.

Identification of external and macro factors that influence buyers and thus change the
size and composition of market overtime involves initially building customer profiles.
These influences include:

 Political environment
 Economic Indicators
 Socio cultural environment
 Technological factors

Political Environment

The events in the last couple of years; ever since the sacking of Chief Justice Iftikhar
Choudhary, Pakistan has faced crisis after crisis, including the lawyers’ movement,
violence in Karachi, the Lal Masjid debacle, militancy in FATA and NWFP and its
impact on other parts of the country, the return of Benazir Bhutto and her subsequent
assassination, and current ongoing military operation in Swat– all the above events
indubitably made a huge impact on the economy.

Stability and law and order situation under the political regime is very important for
the economy as a whole. The present state of the government in Pakistan is directly
affecting the policies of banks. Continuous political changes have disrupted the
policies and objectives as each regime brings with it its own agenda. Organizations
need time to adjust to one regime and then work with it towards economic
enhancement. Due the wrong policies of the government, the talibanization also
develop in Pakistan and become the international issue in Pakistan and badly affected

57
the Pakistan repute in the world and promote the uncertain conditions for the business
in the Pakistan. Due to this the investors are not interested in the Pakistan.

Economic Indicators

The economy of any country directly influences any financial organization. Economic
indicators include Gross Domestic Product (GDP), inflation, balance of payment, debt
of the government.

Pakistan’s economy has witnessed the most challenging period after posting six
consecutive years of healthy economic growth. However, the strong fundamentals
were compromised to prevailing global crises that’s shacked the confidence of global
investors and FDI flowing in the country. The steep rise in oil prices to U$ 147 a
barrel, soaring inflation hitting a 24% mark, huge fiscal deficits and balance of
payments issues coupled with plummeting forex reserves added to the economy’s
move to an unstable growth trajectory.

Also the load shading is another factor that affects the Pakistan economy badly. This
not the end of the story after this Pakistan’ economy face lot of problems like bomb
attacks in Pakistan no electricity and the unstable government, due to this the investor
are not invest in the Pakistan and the existing business men are loosing their business
unit due to the loss.

Due to this poor economy, businesses are reaping low profits and stock market is in
great danger. Pakistan’s foreign debts are rising day by day so such a situation is a big
challenge for banking institution to survive. The financial crisis in Pakistan has made
the management of BAFL tensed to work in such an environment.

Socio cultural environment

A low saving culture has offset the huge population advantage this is enjoyed by
Pakistan. Also culture is dedicated by the religion, and in Pakistan a significant
segment of the population is reluctant to accept interest for their deposits due to the
negative religious implications of such an act. About 70% of Pakistan’s population is
based on rural areas and literacy rate of the country is very much low, thus making it
harder for banks to mobilize their deposits within these regions.

58
However, in today world, the customers are becoming more intelligent and through
media they keep themselves up to date. Thus, the lifestyle and expectations of the
customers from the service provider is increasing day by day.

Technological Factors
Banks in the developed world have been turning to heavy IT investments, which
differentiate their products, provide response times, enhance accessibility and
improve customer satisfaction. Though investing in state-of-the-art host banking
solution, ATM and POS (point of sale) networks, visa, BachelorCard, and, smart
cards, telebanking, internet banking and now mobile banking are common IT
investment in the developed world, it is now that these products and services are
gaining faster acceptance in Pakistan.

In BAFL technology has great effect on the working environment. BAFL is always
willing to introduce new computer systems for keeping its staff up to date. With the
successful implementation of new centralized database system, the bank also achieved
remarkable progress in business process re-engineering, turnaround time compliance
by centralizing outward remittances, account opening and credit administration.

5.3 Marketing Analysis

This is an age of competition. Numerous organizations are providing financial
services to the customer. These days everyone is facing pressure of competitors. In
this world of growing competition, the only way to survive and grow, for an
organization, in the market place is the proper marketing and promotion of its
products. Same is the case with banking companies. There is large number of foreign
and local banks working in the country and it has been noticed that they are
emphasizing much on their marketing strategies. In this scenario, the key for a bank to
succeed and attract its customers is adequate promotion of its products &services.
BAFL for the promotion of its new and existing products invest heavily, it advertises
its product through:

59
  Electronic media i.e. television
 Print media i.e. newspaper
 Billboards
 Business magazines
 Website
 Sponsorship

Electronic

The major way in which today’s organizations promote its products and services is
through television, not only because it’s economical but also because the visual and
audio aids help in promoting its product.

Television ads for Bank Alfalah mainly try to emphasis the ‘The Caring Bank’,
message in its advertisements, by showing how its services can help you with the
different financial problems that you face in your every day life. For example, an
advertisement showed how Bank Alfalah Credit Cards helped a couple when they had
no cash left during a shopping trip or how a father happily shows his family a new car
that he had financed from Bank Alfalah.

Another major way in which Bank Alfalah advertises its products electronically is
through its website, which is designed in an effective manner with detailed
information, so that visitors can effectively know about the different services that the
bank provides.

Print

Print advertisements are another major way in which Bank Alfalah advertises its
product to the masses. Print media advertisements are mainly printed in major English
and Urdu newspapers across Pakistan.

The messages of these advertisements are mainly of new financial services that the
bank may introduce over time.

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Benefits provided by Bank Alfalah
Some of the monetary and non monetary benefits that Bank Alfalah provides to its
employees are as follows:

 Attractive Salary Package

 Employee Provident Fund
 Gratuity Fund
 Medical Insurance
 Bonuses
 Life Insurance
 Promotions
 Various types of Staff Loans
 Assistance in Pursuing Higher Education
 Cash Rewards on completing IBP Diploma

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 Chapter 06
Conclusion and Recommendations

6.1Conclusion
During my internship I concluded that At present there is no such organization in the
world that is free from problem and challenges. Every concern has to strive and
struggle a lot to be more profitable and to get more competitive edge. It has been five
years since the establishment of Bank Alfalah, and since its establishment it has aimed
to become the leading bank of Pakistan by that provides outstanding services to its
customers. The bank has seen phenomenal growth in the past few years by opening
more branches in the country, increasing the deposit base, while also increasing the
assets and profits of the bank. The services that Bank Alfalah provides have a great
market penetration not only because of their features but also the profit and markup
rates that they charge. The management of BAFL is taking strategic steps to enable
the bank to emerge as a strong and progressive institution. It is continuing to make
efforts to refine its products and operations to make them more compatible. New
deposit schemes have been introduced and an action plan to maintain revenue growth
in future.

6.2 Recommendations

 There should be a prayer room developed in all branches as many employees

want to pray, but do not have the proper place to do it.

 Also work like sorting, which takes up a lot of space should be done in a
separate place and amenities like television and internet connection should be
placed in the common room, so as to give employees a relaxing environment
when they have a break.

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 BAL should provide loan to students at low mark up rate and easy terms &
conditions.

 Bank Alfalah Limited needs to use more marketing channels such as radio to
make the public aware of its products and services. In the presence of intense
competition Bank Alfalah Limited has to realize the importance of marketing.

 Bank should prefer to promote worker on the basis of their talent and avoid
going for personal like and dislikes. It can be harmful for the organization in
the long run.

 In Bank Alfalah, there is misdistribution of work; some people are over

burdened with the work. So I suggest that there should be fair distribution of
work in all the departments.

 Bank Alfalah is only dealing in Money Gram; it should also starting providing
the service of other money transfer lines like Western Union.

 Bank Alfalah has equipped its branches with all major IT tools being used in
the industry like ATM’s, fax machines, photocopiers, printers, latest
computers and a good connectivity architecture, however it has been observed
that when its time to work, there are many failures seen in the different
devices used by Bank Alfalah, especially its connectivity architecture and
remains offline with the main server, that creates problems for the customers

 There are no incentive schemes for employees of Bank Alfalah like

scholarship schemes for employees that want to pursue higher education. Bank
Alfalah although gives a number of incentives to its employees, like personal
loans at nominal markup but they are only provided to employees that are in
higher ranks. Education fees are also returned by Bank Alfalah to its
employees, after the have finished their studies.

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 There are some departments in the bank that do not have enough employees,
while some have more than needed.

 All this creates inefficiencies and so the operations manager should look at the
department of the branch and see where inefficiencies lie, in consultation of
with the heads of the departments and hire individuals where there are less
employees or rotate employees from other departments.

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 References

 Bank Alfalah (www.bankalfalah.com)

 State Bank of Pakistan (www.sbp.org.pk)
 http://www.bankalfalah.com/personal-banking/cards
 http://www.bankalfalah.com/contact-us
 http://www.bankalfalah.com/personal-banking/loans/alfalah-car-finance

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