Table of Contents

Introduction of Bank Al-Falah-------------------------------------------------------------------------04

Mission & Vision------------------------------------------- --------------------------------------------04

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Chairperson’s Message---------------------------------------------------------------------------------05

Historical Overview-------------------------------------------------------------------------------------05

Board of Directors---------------------------------------------------------------------------------------06

Management----------------------------------------------------------------------------------------------06

1. Planning----------------------------------------------------------------------------------------------07

1.1. Definition---------------------------------------------------------------------------------------07

1.2. Types of Planning------------------------------------------------------------------------------

07

1.2.1. Informal---------------------------------------------------------------------------------07
1.2.2. Formal-----------------------------------------------------------------------------------07

1.3. Goals / Objectives-----------------------------------------------------------------------------07

1.3.1. Long Term objective------------------------------------------------------------------07

1.3.2. Short Term objective------------------------------------------------------------------07

1.4. Process of Planning----------------------------------------------------------------------------07

1.5. Types of Strategy------------------------------------------------------------------------------08

1.6. Internal & External Factors-------------------------------------------------------------------08

1.6.1. Internal Factors------------------------------------------------------------------------08

1.6.2. External Factors------------------------------------------------------------------------08

1.7. Swot Analysis----------------------------------------------------------------------------------09

1.8. Decision Making Authorities----------------------------------------------------------------09

2. Organizing-------------------------------------------------------------------------------------------10

2.1. Bank al-Falah’s Structure---------------------------------------------------------------------10

2.2. Purpose of Organizing------------------------------------------------------------------------11

2.3. Bank Al-Falah’s Management Chart--------------------------------------------------------11

2.4. Finance Department---------------------------------------------------------------------------11

2.5. Marketing Department------------------------------------------------------------------------12

2.6. IT Department----------------------------------------------------------------------------------12
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 2.7. Centralization vs. Decentralization----------------------------------------------------------13

2.8. Type of Organization--------------------------------------------------------------------------14

2.9. Human Resource Management (HRM)-----------------------------------------------------14

2.10. Communication---------------------------------------------------------------------------
-----15

3. Control------------------------------------------------------------------------------------------------15

3.1. Testing the system of internal control-------------------------------------------------------15

3.2. Separation of Duties---------------------------------------------------------------------------15

3.3. Security------------------------------------------------------------------------------------------
16

4. Organization design---------------------------------------------------------------------------------16
4.1. Types of Organization Design---------------------------------------------------------------16

5. Conclusion & Suggestions-------------------------------------------------------------------------------------------17

5.1. Conclusion--------------------------------------------------------------------------------------------------------17
5.2. Suggestions-------------------------------------------------------------------------------------------------------17
Reference---------------------------------------------------------------------------------------------------------------------17

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INTRODUCTION:
Bank Al-Falah was incorporated on 21st June, 1997 as a public limited company under the
Companies Ordinance 1984. Its banking operations commenced from 1st November, 1997.
The bank is engaged in commercial banking and related services as defined in the Banking
companies’ ordinance, 1962.
Bank Al-Falah Limited is a Pakistan-based bank, engaged in commercial banking and related
services. The services offered by the Company include Branch banking, Consumer banking,
electronic banking, corporate banking and Treasury and Investment.
The Company offers services through a network of 142 branches and 59 ATM machines.
Some branches are in the following cities of Pakistan.

Karachi Abbott Abad Ahmedpur East

Arifwala Attock Bhalwal
Bannu Burewala Chakwal
Chaman Chichawatni Chiniot
Chitral D.G.Khan D.I.Khan
Daharki Daska Fasialabad
Ghotki Gilgit Gujranwala
Gujrat Hafizabad Hangu

MISSION & VISION:

Mission
“To develop and deliver the most innovative services, products, manage customer experience,
deliver quality service that contributes to brand strength, establishes a comprehensive
advantage and enhances profitability, in this way providing value to the stakeholders of the
bank.”
Vision
“To be the premier organizations operating locally & internationally that provides the
complete range of financial services to all segments under one roof.”

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CHAIRPERSON’S MESSAGE:

“Our core philosophy of honesty, transparency in customer dealings, product innovation,

excellence in customer services and our commitment to being a responsible corporate citizen
pervades this website.”
Since the inception of Bank Al-Falah, by the grace of the Almighty Allah, we have moved
rapidly in expanding our branch network and deposit base, along with making profitable
advances and increasing the range of products and services. We have made a break-through
in providing premier services at an affordable cost to our customers.
Keeping in view our valued clients and the need for constant and effective communication of
information, we have designed this website to be as user-friendly as possible.
As we pursue the path of excellence, customer satisfaction remains our priority. It is only
when we know our customers better, can we deliver a higher quality of services, thereby
adding synergy to our existing management expertise, financial strength and profitability.
This is yet another channel of communication for the delivery of quality products and
services that enhance value to our stakeholders.
HISTORICAL OVERVIEW

Bank Al-Falah Limited was incorporated 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 104 branches
in 36 cities, with the registered office at B.A.Building, II.Chundrigar, Karachi.
Since its inception, as the new identity of H.C.E.B after the privatization in 1997, the
management of the bank has implemented strategies and policies to carve a distinct position
for the bank in the market place.

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BOARD OF DIRECTORS

H.E. Sheikh Hamdan Bin Mubarak Al Nahayan

Chairman

Mr. Abdulla Nasser Hawalileel Al-Mansoori

Director
Mr. Ikram Ul-Majeed Sehgal
Director
Mr. Abdull Khalil Al Mutawa
Director
Mr. Nadeem Iqbal Sheikh
Director

Mr.Khalid Mana Saeed Al Otaiba

Director

MANAGEMENT

Mr. Sirajuddin Aziz

Chief Executive Officer

Mr. Parvez A. Shahid

Co-Chairman Central Management Committee

Mr. Shakil Sadiq

Chief Operating Officer

Mr. Arfa Waheed Malik

Group Head
Corporate & Investment Banking

Mr. Mohammad Yousuf

Group Head
Credit & Collections

Mr. Bakhtiar Khawaja

Group Head
Training & Development

Mr. Imtiaz Ahmad Sheikh

General Manager
Information Technology

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1. PLANNING:

1.1. Definition
Planning is
 Defining organization’s goals and objectives.
 Establishing overall strategies for achieving those goals.
 Developing a comprehensive set of plans to integrate and coordinate
organizational work.
1.2. Types of Planning
Bank Al-Falah use both formal and informal types of planning.
1.2.1. Informal
In informal planning, their planning is not written down, short term focus and
specific to an organizational unit.
1.2.2. Formal
In formal planning, their planning is written down, specific, long term focus
and involves shared goals for the organization.
1.3. Goals / Objectives
 Financial strength and Profitability by making profitable advances
 Customer satisfaction by providing higher quality of services at an affordable cost
 Growth by expanding branch network and deposit base
1.3.1. Short-term Objectives
 Profitability
1.3.2. Long-term Objectives
 Profitability
 To optimize the use of resources
1.4. Process of Planning

Process of Planning
Mission

Strategies

Plans

Programs

Policies

 Mission
Mission of Bank Al-Falah is to develop and deliver the most innovative products,
manage customer experience, deliver quality service that contributes to brand
strength, establishes a comprehensive advantage and enhances profitability, in this
way providing value to the stakeholders of the bank.
 Strategies

Strategies of Bank Al-Falah are giving loans and accepting deposits. 7

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  Plans
Plans of Bank Al-Falah are short-term & long-term Advances & Deposits.
 Programs
Programs of Bank Al-Falah are up to one year or more than one-year advances, fixed
account, current account etc, debit card, credit card etc.
 Policies
Policies of Bank Al-Falah are profitability, by making profitable advances and
customer satisfaction by providing best services at an affordable cost.
 Rules
Their rules are defined by upper level of management according to situation
 Budget
Bank Al-Falah always met its budget.
1.5. Types of Strategy

There are seven kinds of strategy:

 Cost Leadership Strategy
 Differentiation Strategy
 Focused Strategy
Bank Al-Falah is following the focused strategy. They are focusing on
customers by advancing and depositing.
1.6. Internal & External Factors
1.6.1. Internal Factors
HRM
HRM is playing both positive and negative role in the performance of
organization. Positively, HRM is performing its functions and managing the
human resource properly. On the negative side, sometimes HRM adopts the
policy of favouritism due to political pressure in managing human resource.
Structure / Infrastructure
Bank Al-Falah has sound structure and infrastructure.
Organizational Policies
Policies of Bank Al-Falah are favourable for customers.
Nature of Organization
Financial Institution.
1.6.2. External Factors
Technological Factors
Technologically, Bank Al-Falah is weak and this element is threatening to Bank Al-
Falah. Online Banking (advances, deposits, transactions etc.) is not working properly.
Political Factors
Politically, people are influencing on the performance of Bank Al-Falah. Particularly,
agricultural people get benefits due to relation to politicians. Such people are getting
advances and jobs on favouritism.

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 Physical Factors
Physical structure of Bank Al-Falah is very sound.
Demographic Factors
Population of Pakistan is a big number, which is supportive for bank.
Economic Factors
Population of Pakistan is rich which is beneficial for the bank.
Legal & Ethical Factors
Bank has legal entity and is taking care of ethics which is giving it advantage in
attaining customer attention.
Social & Cultural Factors
Social and cultural factors are affecting the bank. Majority of the population is un-
educated and unaware of the benefits of banking sector. They have low saving and
want to keep money with them.

1.7. SWOT ANALYSIS

The SWOT analysis is an extremely useful tool for understanding and decision-
making for all sorts of situations in business and organizations. SWOT is an acronym
for Strengths, Weaknesses, Opportunities, and Threats.

Growth Stability
Strengths (+) Strategy Strategy
(+ , +) (+ , -)

Stability Retrenchment
Strategy Strategy
Weaknesses (-)
(- , +) (- , -)

Strengths Opportunities (+) Threats (-)

Following are the strengths of Bank Al-Falah:
 Brand
 Decent customer dealing
 Rapidly expansion in branch network
Weaknesses
Following are the weaknesses of Bank Al-Falah:
 Poor employee development and promotion
 Improper online Banking
Opportunities
Following are the opportunities of Bank Al-Falah:
 Improvement in online banking
 More customer satisfaction

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 Threats
Following competitors are threats to Bank Al-Falah:
MS Global
Saudi Pak Bank
Habib Bank
Standard Chartered Bank
1.8. Decision Making Authorities
1.8.1. Top Level of Management
Important and overall decisions of the bank are made by top level of management. For
example: Chairman
1.8.2. Regional Manager
Regional manager makes decisions at regional level.
1.8.3. Branch Manager
Branch manager makes decisions at branch level.
2. ORGANIZING
Managers work in organization. But what is an organization? An organization is a
deliberate arrangement of people to accomplish some specific purpose. Your banks,
university is an organization, colleges, govt. departments are all organizations because
they have three common characteristics.
First, each organization has a distinct purpose. This purpose is typically expressed in
terms of a goal or set of goals that the organization hopes to accomplish.
Second, each organization is composed of people. One person working alone is not an
organization and it takes people to perform the work that’s necessary for the organization
to achieve its goals
Third, all organization develop some deliberate structure so that their members can do
their work.
2.1. Bank Al-Falah’s Structure
Sweden’s premiere bank is one of the largest banks in the Nordic region. Lars
Grunted(pictured), president and group chief executive, oversees a business that is
organized around a decentralized structure with a network of some 540 branches in
Norway, as well as in nine European countries and six countries outside Europe. He
believes that the bank’s 30-plus years of developing its branch network has allowed it
to consistently grow market share and achieve a return on equality above the average
of its Nordic competitors are starting to copy Handelsbanken’s structural model.
Handelsbanken’s branch managers can choose their customers and product mix.
They also set staffing numbers and decide salary levels. All customers, private and
corporate, no matter what size, are the responsibility of a local branch.
Handelsbanken’s flat management structure and emphasis on personal responsibility
and consensus approach is well suited to the Swedish culture.\ 10

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 2.2. Purposes of Organizing
 Divide work to be done into specific jobs and departments in Bank Al-Falah.
 Assign tasks and responsibilities associated with individual jobs in Bank Al-Falah.
 Coordinates diverse organizational tasks in Bank Al-Falah.
 Establishes relationships among individuals, groups and departments in Bank Al-
Falah.
 Establishes formal lines of authority in Bank Al-Falah.
 Allocates and deploys organizational resources in Bank Al-Falah.
2.3. Bank Al-Falah’s Management Chart
 Management performs different functions in Bank Al-Falah.
 C.E.O (Chief executive officer)
o Controls the whole management affairs in Bank Al-Falah.
 Executive In charge (E.I)
o Establishes the environment of strategic planning and aware of to hold the
global market.
o Manages the HRM and assigns work to individual for betterment.
o Divides the credit in different ways and allocation to safer place.
o Controls the administration activities and carries on the establishment
process for the betterment of Bank Al-Falah.
o Investigates the business development reports that our business gets profit
or loss.
o Analysis the audit and inspection division for efficient work.
o His work is to divide the cards in best manner, just like debit cards, credit
cards, ATM’s cards and Hilal cards in Bank Al-Falah.
o He did his work for international and treasury division in Bank Al-Falah.
o Divided the I.T (information technology).
o Supports the corporate and home finance.
o He monitoring the credit division.
o Investigates the legal affairs.
2.4. Finance Department
Finance is responsible in terms of money in all departments or monetary policies. It
is concern with more inflow of the cash that outflow of the cash in terms of Bank Al-
Falah.
Structured Finance
Established in 1998 in order to provide innovative investment banking services to our
valued clients.
A team of handpicked professionals, dedicated to syndicated loans and structured
products. The team’s expertise is well known in the marketplace with its capability to
assist public & private sector entities, major financial institutions, multinational
corporations, domestic & international institutional investors in innovative financing
including underwriting & private placements.
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 The scope of SFU’s activities also encompasses advisory assignments, such as
privatization, Mergers & Acquisitions (Man’s), domestic listings, IPOs and
restructuring.
During the past few years, SFU has been successful in sourcing and participating in a
number of prestigious transactions involving large amounts.
Some of the value-added services offered by SFU include the following:
 Loan syndication
 Public floatation of Term Finance Certificates (TFCs) and equity
 Private placement of Term Finance Certificates (TFCs) and equity underwriting
 Guarantee syndications
 Financial restructuring
 Mergers & Acquisitions (M&As)
 Fostering joint ventures
 Privatization – Sale side and buyers side advisory
 Structuring new financial instruments
In the future, SFU is envisaged to supplement the enhanced profile and profitability
of Bank Al-Falah Limited through its value-added services, through both asset
building and income generating aspects.
2.5. Marketing Department
Marketing department performs different functions in terms of Bank Al-Falah.
2.5.1. Sales
In Bank Al-Falah sales gets only in the light of the customer.
2.5.2. Need Identification
First of all, you identify your customer and how is your dealing with that
person.
2.5.3. Positioning
In Bank Al-Falah, what is your position to deal that person?
2.5.4. Targeting
What is your long-term goal and short-term goal according to Bank Al-Falah?
2.5.5. Promotion
It is concerned with all types of advertisement. Its purpose is to get more
customers in terms of promotion according to Bank Al-Falah.
2.6. IT Department
2.6.1. ATM’s
Bank Al-Falah through its commitment to provide superior and improved
services to its valued customers, has unveiled a nationwide network of ATMs.
For your convenience, you now have access to instantaneous cash availability,
24 hours a day, 7 days a week.
Our ATM network is geared up to exploit the latest technology, and is
equipped to meet the highest standards of security and efficiency.
 With your new Hilal-Card you can now:
 Withdraw Cash
 Use our convenient, user-friendly fast cash option 12

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  Make a Balance Inquiry.
 Get an instant printout of your account balances
 Get a printout of your last transactions (Mini-statement) on the spot.
 Change your PIN (Personal Identification Number).
Bank Al-Falah is pleased to introduce 55 states of the art ATMs, deployed at
the most convenient and accessible locations. Bank Al-Falah is a founder
member of the 1-Link Switch, thus making a country wide network of ATMs
available.
2.6.2. Online Banking
Bank Al-Falah now offers the facility of on-line banking to its customers
through its country wide network of branches. Customers can use the ATMs
or the banking counters of any branch for day-to-day banking needs,
irrespective of branch where they maintain their accounts.
For Corporate customers centralized Cash Management facility is also offered
through on-line banking.
2.6.3. Phone Banking
"Al-Falah Phone Banking” is available to all customers on a countrywide
basis. Customers can dial 111-225-111 (without any city code/prefix) from
their respective cities i.e., 21 cities where Bank Al-Falah is present, and can
get prompt services from the Centralized Phone Banking Services. 
Customers enjoy 24x7 Round the Clock Phone Banking Services. 
Bank Al-Falah is the first bank in Pakistan to offer Centralized UAN
connectivity from 21 cities to its Call Centre with Hunting & ACD facilities. 
2.7. Centralized vs. Decentralization
Centralized describes the degree to which decision making is concentrated at a
single point in the banking organization. If top managers make the banking
organization’s key decision with little or no input from below, then the
banking organization is centralized.
In Bank Al-Falah the major portion of organization is ‘Decentralized’, because
the Managers of all levels have the power of decision making.
2.8. Human Resource Management (HRM)
HRM means to put the right man, for the right job, at the right time and at the right
place, so HRM deals with the fair job description as a whole in Bank Al-Falah.
Road-Map of HRM
The road-map through which HRM helps the managers to organize the activities of
man-power in Bank Al-Falah.
2.8.1. How HRM is important
A banking organization HRM practices have been found to have a significant impact
on organizational performance.
2.8.2. HRM process
Activities necessary for staffing the organization and sustaining high employee
performance in Bank Al-Falah.
2.8.3. HRM training and development
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 Bank Al-Falah’s HR management believes in developing the potential of the Bank’s
employees to the fullest extent. Training & Development Centre of the Bank is
housed in custom-built, state of the art facility on the 4th floor of the Head Office
building at Karachi. The centre is responsible for providing multi-level high quality
training programs to all staff members in the following areas:
 Consumer banking operations
 Credit marketing & credit proposals
 Credit administration/documentation
 Trade finance operations
 Marketing & selling skills
 Customer service skills
 Performance appraisal skills
 Time management & personal effectiveness
2.8. Communication
The flow of information in Bank Al-Falah.
2.8.1. Direction of communication
Bank Al-Falah communication can flow downward, upward, laterally, or
diagonally.
Down-ward Communication
Any communication that flows downward from a C.E.O to employees is
downward communication.
Up-ward Communication
Any communication that flows upward from employees to C.E.O.
Lateral Communication
Communication that takes place among employees on the same level is called
lateral communication.
Diagonal Communication
Communication that cuts across both work areas and organizational levels.
2.8.2. Communication Model
Message
Any type of message of Executive In charge (E.I) to be conveyed.
Encoding
Converting a message into symbols.
Channel
The medium a message travel along.
Decoding
Retranslating an Executive In charge (E.I) message.
Receiver
The seven elements involved in transferring meaning from Executive In
charge (E.I) to another.
Feed back

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 Any disturbance that interferes with the transmission, receipts or feedback
of a message.
2.8.3. Types of Communication
Verbal & Non-verbal communication
Verbal communication means audiotape-communication conferences, radio in
Bank Al-Falah. Non-verbal communication means visual, sign board,
newspapers in Bank Al-Falah.
Audio - Video
Audio - Video means multimedia presentations, video conferences and
meetings in Bank Al-Falah.
Formal & Informal communication
Discussion between C.E.O and Executive In charge is Formal communication.
Discussion between employees in Bank Al-Falah is Informal communication.
3. CONTROL

3.1 Testing the System of Internal Controls

The general objective of testing controls is to obtain reasonable assurance that the controls
are in use and operating as planned. Sampling techniques are used in Al-Falah bank. Tests
should meet the following criteria:
3.1.1. Data Integrity
 Are the controls in place to ensure the integrity of the data?
 Are records up-to-date and accurate?
3.1.2. Documentation
 Are all systems, functions, processes, procedures, programs, and activities
clearly documented?
 Is the documentation readily available for examination?
 Are operating procedures adequate?
3.1.3. Recordation
 Are there records that show that controls are in use?
3.1.4 Supervision
 Are appropriate procedures in place for assigning, reviewing, and
approving work?
 Do the employees adhere to procedures for assigning, reviewing, and
approving work?
3.1.5 Authorization
 Are appropriate controls in place to ensure transactions and other
significant activities are authorized and executed only by authorized
personnel?
 Do employees adhere to the requirements of authorization only by
authorized personnel?
3.2. Separation of Duties

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  Are key duties and responsibilities such as authorizing, processing,
recording, and reviewing separated among individuals?
3.3. Security
 Are appropriate procedures in place which limits access to resources
and records to authorized personnel?
 Do employees adhere to security procedures?
4. ORGANIZATION

4.1. TYPES OF ORGANIZATION DESIGN

Mechanistic organization design
 Rigid hierarchy structure
 High Formalization
 Decision making is Centralized
 Specialized jobs are narrowly defined
 Emphasize on individual working
 Communication is Top Down

Organic organization design

 Collaborate hierarchy structure
 Formalization is Weak
 Decision making is decentralized
 Improved both ways Communication
 Jobs are broadly defined
 Emphasize on group working
Boundary less organization design
 Collaboration is within and outside the organization
 Formalization is low
 Communication is both ways
 Decentralized decision making
 Jobs are broadly defined
 Emphasize on teamwork outside the organization
Bank Alfalah has organic organization design

5. CONCLUSION & SUGGESTIONS

5.1. Conclusion
The Bank Al-Falah has a significant progress in the banking sector, and it has
achieved this position in a very short time period, just in 3 years in Pakistan. The
Bank Al-Falah has a great share in the market as well as high growth rate as compare
to the all-other banks, due to its best Customer dealing, Compensations to Customers
and Employees as well and Organizational Control due to the best & powerful
Planning, Leading and Controlling sectors. 16

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 As there is no doubt that Bank Al-Falah is best in its field, but it has also some weak-
points like some of resources are still un-utilized and the political pressure of
References regarding the posts in the organization.
Over all the Bank Al-Falah has proved to be the best bank in the whole banking
sector, due to the fact that its weaknesses are not more than its strengths.
5.2. Suggestions
Following is some suggestions, which will help the Management of bank Al-Falah in
more effective control and greatest position, are;
 The bank should improve its On-line banking.
 They need to eliminate the Reference culture from their bank.
 The bank needs to expand the Network of their Branches, overseas.
 They should try to minimize their threats by proper planning.
 They need to focus more on the Consumer banking, because this field requires
more attention and growth.
 They need to improve & grow the Employee development progress & plans.
 They need to decrease their rate of interest on deposits to compete their
competitors.

REFERENCES
1. Visit of Bank Alfalah, College Road – Branch
2. www.bankalfalah.com
3. www.en.wikipedia.org

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