INTERNSHIP REPORT ON BANK ALFALAH

GUJRAT BRANCH

SUBMITTTED TO;

SIR ADNAN BASHIR

SUBMITTED BY;

AFTAB AHMED
(15112720-100)
SEC,(B)
MBA(3.5)

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INTERNSHIP REPORT On BANK ALFALAH
Acknowledgement
All praises are for Allah Almighty who is the most merciful and benefcient. After Allah, the last
Prophet Mohammad (PBUH) Who brought for us revelation and give many information and
unlimited knowledge and civilized the barbarian human being.

I am very thank full to Allah Almighty who gave me the courage to complete this difficult task
and to my ever caring and loving father and mother whose prayers helped me to reach this
stage of my life.

Besides, there are more people who supported me in formulation of this report and without
the support of them I could never be able to complete this report successfully. In this respect I
am very thank full to Mr.TANVVEER KHALIQ(Branch Manager), Mr. ZALI BUTT (Operations
Manager & Incharge Internship) and the qualified staff members of Bank Alfalah Limited
GUJRAT. who cooperated with me with their guidance at each step of my internship. They have
provided me a lot of important information and knowledge about the banking operations in a
very short period of time.

Last but not least, my very special thanks to the manager of bank Alfalah who provided me with
his guidance and desirable knowledge whenever I need that.

Thank you
Manager of the bank Alfalah
Dedicated to:

My respected and loving Parents

&
Respectable Teachers of UOG

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 Table of Contents

Executive Summary 06
Introduction of Organization 07
• Banking History 07
• Introduction of Bank Alfalah Limited 08
Mission, Vision of Organization 10
Objectives of Organization 11
Corporate, Business and Departmental Level Strategies 15
Performance of Bank Alfalah 16
Working of Various Divisions/Departments 16
 Account Opening Department 16
 Car Financing Department
 Remittances Department 18
 Credits 19
 Clearing 20
Financial Analysis 21
SWOT Analysis 22
Suggestions and Recommendations 25
Conclusion 27

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 Executive Summary
Bank Alfalah is a private bank providing financial services to the customers under manager and
ownership of Abu-Dahbi group. Bank is engaged in corporate social responsibility and retail
banking.

Currently bank continues to higher its presence in market by the help of expansion plan. By the
end of 2015 bank has375 branches which includes 55 Islamic Banking branches with seven
foreign branches out of which 5 branches are in Bangladesh and 2 in Afghanistan and 1 offshore
branch in Bahrain.

The Bank Alfalah is growing very impressively and making profits which growing higher day by
day with the slogan of “The Caring Bank” making the wishes of people come true through the
of transferring concepts to reality. Bank is providing its financial services to customers with the
help of his qualified human work force of 9,552, who is very energetic and humble towards
customers which is beneficial for the bank.

This report includes the introduction of banking, Introduction of the Bank Alfalah, the
strategies, policies which they have implemented, about departments, products and complete
overlook on the financial performance of the bank with SWOT analysis of the bank,
recommendations and suggestions with a conclusion of the Bank Alfalah’s internship report.

Bank’s product portfolio includes such type of innovative products according to the needs and
preferences of the customers which are providing benefits to customers as well as adding
profits to the bank. These products includes Alfalah car financing, Alfalah credit cards, Alfalah
Hilal Cards, Alfalah Zarie Sahulat. Advances credits, Money Gram, Royal Profits, online banking
and Islamic Banking.

Bank’s growth graph is showing upward, positive and continuous trends and its profit
percentage is increasing every year. Last but , this report almost includes each and every aspect
about Bank Alfalah which is very helpful for every reader.

Introduction
History of Banking:
The word “Bank” is derived from the Italian word “Bancus or Banque” which means bench,
counter. Because in ancient times the benches were used by the Jews for the benefit of
exchanging money. In ancient times the religious temples were used as the safest place for
keeping money and gold by people of under the supervision of the priests. Goldsmiths then
acted as the financial agents in exchange of gold and valuables which provided the basis of

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modern banking. Today’s modern banking system is the ultimate and step by step achievement
of the ancient banking system of accepting deposits from those who have surplus and lending
to those who do not have it or.

Banking In Pakistan:
before to Independence British banks controlled the banking operation in Pakistan. After
independence there were no resources so that Pakistanis could start their own banking system
in a very short period of time. Then at that time it was decided that “Reserve Bank of India” will
control the banking operations in Pakistan. But this was not good for the best interest of
Pakistan because British Government at that time distributed the reserves of the “Reserve Bank
of India” between India and Pakistan with the share of 70% India and 30% Pakistan. It was a
very big loss for Pakistan at that time as being a new nation with new country having few
resources for survival. Then “Quaid-e-Azam” (The Governor General of Pakistan) at that time
took a step ahead and inaugurated “The State Bank of Pakistan” on July 1 st , 1948 which then
took control of all the banking operations of Pakistan.
Introduction of Bank Alfalah Limited (The Caring Bank):
Bank Alfalah Limited was incorporated on June 21st, 1992 as a public limited company under
the Companies Ordinance 1984. Its banking operations commenced from November 1st ,1997.
The bank is engaged in commercial banking and related services as defined in the Banking
companies ordinance, 1962. The Bank is currently operating through 195 branches in 74 cities,
with the registered office at B.A.Building, I.I.Chundrigar, Karachi.

Since its inception, as the new identity of H.C.E.B after the privatization in 1997, the
management of the bank has implemented strategies and policies to carve a distinct position
for the bank in the market place. This facilitates our commitment to a culture of innovation and
seeks out synergies with clients and service providers to ensure uninterrupted services to its
customers. We perceive the requirements of our customers and match them with quality
products and service solutions. During the past five years.

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 Mission

To develop& an delive the more

innovative products, manage
customer experience, deliver
Quality services that contributes
To brand strength,
competitive advantage and
enhances profitability, thus
providing value to the
stakeholder.

Vision
To the organization
operating locally &
internationality that provides
The completen range office
Service segment sunder.

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Human Resource Management:
As it’s a actual fact that the success of any organization lend in the hands of their human
resource or the staff working for that organization and the human resource is the most valuable
asset of any organization. In this concern the mgt of Bank Afalah is well known for their hard
work, innovative thinking and full dedication to satisfy and retain the clients of the Bank and
keep the Bank on front row.

The employees of Bank Alfalah is well equiped with skills, knowledge and vast experience of
financial world which is required to keep the Bank on the way of modern banking with the
objective of gaining high profits. The core ideology of Bank Alfalah in respect of their human
resource selection is to hire double talented and dedicated professionals, who can perform
well best for the Bank with little external and in-house training to increase the efficiency and
productivity of the human resource. Although the head dept, of Human Resource Management
of Bank Alfalah is in Karachi but every branch is managing its employees on its own with the
philosophy of controlling every subordinate by his supervisor because these supervisors are
working according to the policies directed by the Head Office. they are cooperating with one
another and are achieving the goals and limit of the Bank set by the top management.

Training and Development of the Human Resource:

After hire the human resource, their training and development is necessary and necessary to
keep them up to date about new methods of working and performing operations. In this
respect Bank Alfalah conducts training programme with the passage of time and at regular
intervals of the year at Head Office Karachi for increasing skills, knowledge and productivity of
human resource. This is essential for every employee to attend these training and development
facilities and conferences once in a year. For this ideas Bank Alfalah is providing training to
their employees in following important areas,

• Marketing
• Credit administration/documentation
• Consumer banking operations
• Performance appraisal skills.
• Credit marketing and proposals.
• Trade Finance
• Time management

Products & Services:

• Debit Card.
• Car Financing.

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 • Money Gram
• Credit Cards
• Online Banking

1. Debit Card
Alfalah debit or gives you the immediate and easy access to your current or saving account
anywhere and anytime with a simple swipe of your card at millions of ATM’S and retail shops.
With the Visa Networksis acceptable at more than 1.9 million ATM’s and 30 Million retail
outlets around the world. If you have this facility then there is no need of dealing in physical
cash withdrawal and your transaction will be completed in no time.

2. Car Financing:
Bank Alfalah has introduced Car Financing in which you have two options, either you get the
vehicle leased or finance.

3. Money Gram:
Bank Alfalah is providing the facility of Money gram which is the people to people transfer of
money that allows consumers to receive money in just few moments. Money Gram is available
in over 180 countries and territories and in more than 190,000 locations worldwide, and money
is handled by quality agents linked through computers who makes it sure that your money is
safely transferred to the desired place and person.

4. Agri Finance ( Alfalah Zarie Sahulat):

In view of importance of agriculture for the Pakistan economy and keeping in view the small
farmers who have little resources for production for them, Bank Alfalah has designed “Rural
Finance Programme” which is named as “Bank Alfalah Zarie Sahulat”This facility is available for
short, medium and long term durations.

Bank Alfalah has designed this facility to achieve following objectives

5. Credit Cards:
Alfalah credit card is globally accepted at all those locations which have the logo of VISA. It is
accepted at nearly 29 million locations in more than 200 countries around the world. and in
Pakistan also. It enables you to pay for shopping, travel, entertainment, meals and much more.
The features which makes Alfalah Credit card as an important product for customers are,

• No joining/ Annual
• Electricity, Sui Gas, PTCL abd Warid bills payment through 24 hour Call Center and Auto
Debit instructions.
• SMS for card usage, mini statement, receipt confirmation, etc.

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6. Online Banking:
Bank is providing online banking services to its customers such as balance inquiries statement
requests through automated online telephone service and online ATM services anywhere and
at every place where bank exists.

Corporate, Business and Departmental level Strategies:

Bank Alfalah is successfully completing its journey towards progress with the help of its
specialized, skilled, highly qualified and professional management at all levels. Top
management formulates in accordance with the standards formulate to achieve the desired
goals and objectives. As with the passage of time and it is fact that the external business
environment is very dynamic in nature so these strategies keep on changing to keep the Bank
up to date. For this idea the managerial policies which are adopted by the Bank Alfalah are as
under.

Corporate Level Strategies:

At the top level there is board of directors and executive committee, who controls such
important functions as determining objectives, formulations of business policies and strategic
planning. Corporate philosophy stresses the highest level of security, reliability and value for its
client’s money which is the core strength of the bank.

Business Level Strategies:

Top management formulates the business level strategies. Chief Managers are also the part of
this management level who formulates the strategies and technical planning which determines
the methods of getting the best and in time completion of jobs from its human resource. They
define and interpret the objectives and goals and formulate policies to achieve them.

Departmental Level Strategies:

At this Head of the Departments formulate these strategies. every branch manager
formulates the policies according to the branch setup and at each level of bank environment
because he is directly responsible for the management and controlling the activities of the
employees. For implementation of these policies meeting are called with the presence of Head
of the Departments to get the best and efficient and desired goals behind these formulated
policies.

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10
 Departments Worked During Internship

I did my internship at Bank Alfalah Limited Circular Road Bahawalpur. During my whole
duration of six months I have done work in the following departments.

• Accounts Opening
• Car Finance
• Remittances
• Credits
• Trade Finance
• Clearing

Accounts Opening Department

Most important and front line department of bank which comes under the retail/ general
banking. Following are the types of the accounts,

1. Current Account
2. Saving Account
1. Current Account:
It is a non-interest bearing account. The minimum balance requirement for opening this
account is Rs.10,000. Furthermore there is no restriction of deposition and withdrawal of
money from this account at any point of time. All the current account holders receive a Hilal
Debit Card to get benefit from the ATM service of the bank. Following are the types of accounts
which come under the head of current account. They are

• Basic Banking Account (BBA account)

• Simple Current Account

Thee detail on each is as under.

i).Basic Banking Account (BBA account)

This account is introduced for low income people like persons with 25,000 salary and for
students who cannot maintain minimum balance of Rs.10,000 in their accounts because in this
account there is no requirement of minimum balance maintenance. This account is also called
as “Student Account”.

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Features:
• Minimum Initial deposit of Rs. 1,000.  No service charges at all.

• Facility of ATM.
• Only 4 transactions cheque are allowed in a month otherwise Rs.58 will be charged per
month.

ii).Simple Current Account:

• A minimum initial deposit of Rs.10,000 is required to open this account.

• Average balance of Rs.10,000 should be maintained in this account otherwise Rs.58 will
be charged per month to account holder.  Online service is available (on customer
demand)  No charges for online service.

iii). Alfalah Kamyab Karobar Account:

• This account is especially for businessmen.

• Initial deposit of Rs.5000 is required.
• Average balance maintenance is according to the type of category in which the
customer lies.

2. Saving Account:
Saving account is an interest-bearing account. It has following types of accounts,

• Simple saving account

• Royal Profit A/c

• Kifayat A/c
• Alfalah Mahan Amdan Account

i).Simple Saving Account:

• Initial deposit and average balance maintenance is Rs.5,000.

• Profit rate is 5 %
• Profit is distributed on half yearly basis.

ii).Royal Profit Account:

• Initial deposit and average balance maintenance is Rs.50,000 for this account.
• Profit is distributed at rate of 5 % per year but its calculations are done on monthly
basis.
• If there is not maintained a balance of Rs.50,000 then the account holder will not get.

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iii).Kifayat Account:

• It is a type of saving account in which minimum initial deposit and average balance
maintenance of Rs.10,000 is required.
• Maximum amount of deposit in this account is of Rs.1 million.
• Profit is paid at the rate of 7% per annum. If balance falls from 10,000 then no profit will
be given to account holder.

iv).Alfalah Mahan Amdan Account:

It’s a term deposit for three years.

Minimum balance of account is Rs.100,000 with an upper limit of Rs 1.5 million.

Profit rate is 10 % per annum and paid on monthly basis.

v).Alfalah Mahan Amdan Plus(Term Deposit):

In this account the amount is fixed for one year.

Minimum balance of account is of Rs.50,000 with no upper limit.

Profit rate is 10.5% on monthly basis.

Free insurance.

Opening an Account:
For new customers who want to open an account at Bank Alfalah has to fill a “Relationship
Contract”, which includes such information as follows

1. Title of Account.
2. Personal information of applicant

This portion is important for securing the money of the customer in case of his/her death of or
any incident with the account holder. By this thing the account holder specifies and provide the
information and data of the person who will be the owner of his/her money after his/her death
or any serious incident with him/her. If account holder leaves it blank then bank will be the
owner of his/her money.

Address for correspondence

3. Type of Entity
 Individual
 Joint sole proprietorship
 Public/Private Ltd Co.

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 4. Nature of Account
 Current Account
 PLS Saving Account
 Royal Profit Account
 Saving Account

5. Currency of Accounts

Bank Alfalah uses in five currencies and account holder must have select from them. These are
PKR, USD, GBP, Euro, and JPY

6. Zakat Deduction
7. Details of other bank accounts
8. Introduced by

Basic Requisites for Opening an Account for individuals/self employed persons

are as follows
• CNIC

• Company letterhead or authorization (as required)

• NTN certificate (optional)
• Source of income (salary slip etc)
The basic Requisites to open an account for a partnership:
• NTN certificate (optional)
• Partnership Deed
• Company Letterhead
• Partners CNIC
The basic Requisites to open an account for companies:
• Article of Association
• Directors CNIC
• Memorandum of Association
• NTN certificate (optional)
• Company Letterhead

Car Financing Department

In the age of today’s modern banking, car financing is one of the most important and selling
product of of all the banks including Bank Alfalah. Because it is very easy for the people to save
them from paying a huge sum of money that’s why people prefer to have finance their vehicles.
• Tenure period ranging from 1-5 years

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 • Minimum down payment starting from 20 %
• No hidden charges
• Insurance facility
• Premature termination charges should be paid by the customer according to the year in
which he/she terminated the contract of payments on the remaining amount which are,
Year 1 2 3 4 5
Mark up 5% 4% 4% 3% 2%
• Mark up rates of Bank Afalah for all presented vehicles for financing are,
Financing Product 1Yr 2Yr 3Yr 4Yr 5Yr
Car Loan for Brand
17.50% 17.50% 18.00% 18.50% 18.50%
New Vehicles
Car Loan for Brand
New Imported 19.00% 19.00% 19.00% 19.00% 19.00%
Vehicles
Band New Semi
Commercial Vehicles
20.00% 20.00% 20.00% 20.00% 20.00%
(locally
manufactured)
Second Hand
21.00% 21.00% 21.00% 21.00% 21.00%
Vehicles

Remittances Department
Remittance means the transfer of funds form one account to another or one city to other city.

Instruments which are used for transfer of money are,

• Demand Draft
• Pay slip
• Pay order (payment order

i).Demand Draft:

• It’s a negotiable instrument

• It’s a written order drawn by one branch of a bank upon another branch of the
same bank or upon another bank under special arrangements to pay a certain sum
of money according to the order by the customer.
• DD is cannot be issued within the same city.
There are two ways in which a demand draft can be used for transfer of money,

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Outward DD:
When money is transferred from Bank Alfalah to other city on the demand of the customer it’s
known as outward DD. The procedure foe this is that the customer will fill the DD application
form and present the cash he wants to transfer through DD. After checking all the provided
details the bank officer will make a DD and pass the following entries for this transaction
For Cheque:

Customer Account (Dr)

Head Office (C

ii).Pay Slip:

This is Bank’s cheque copy, used for the payment of the branch expenditure. This is also called
as true banker cheque. The entries for the payments are passed as,
Expenses Account (Dr)

Pay Slip (Cr)

iii).Pay order
Pay order is the way of transferring money within the same city. It is issued, paid and
maintained by the same branch. It is also called as Banker Cheque or Manager Cheque. It is
cleared in 5-6 days and it is crossed by default.

Procedure:
The customer fills the application form for pay order along with his details and cash or cheque.
Usually cheque is used for transfer of money through pay order. After paying the charges for
making pay order the pay order is issue to the customer. The entry for the issuance of pay
order is,

Customer Account (Dr)

Pay order Payable (Cr)

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Charges for making Pay Order are Rs.58 including 16 % federal excise duty (FED).

When the customer comes to get the money through pay order then following entry is passed
by the bank,

Pay order Payable (Dr)

Customer Account (Cr)

Credits Department
Credits department advances loans to needy and eligible customers and this department adds a
big share of profit to overall profit of the Bank Alfalah. These loans are sanctioned by the Head
Office at Karachi. Bank Alfalah’s credit department works both with Retail and middle market
group and corporate groups.

Types of Credit line Facilities:

Bank Alfalah is providing 2 types of credit line facilities,

i. Funded
ii. Non-Funded

1. Funded Credit Line Facility:

In funded facility the amount of loan is physically dispersed to the customer. The products
which comes under credit line facility are as follows,

• Running/Current Finance
• Cash Finance
• Term finance
• Lease Finance

i).Running/Current Finance:
Current finance is provided to the companies for supporting their operations for a short time
period of one year. Bank provides funds against some securities like mortgage securities. And
Bank advances funds up to 60% of the given securities. This credit facility is very attractive for
the companies in managing their working capital because mark up is charged by the bank only
on the utilized part of the funds.

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ii).Cash Financing:
Cash financing is also a few term credit facility of one year. This is basically a stock financing for
those small businessmen who can run their business very smoothly if they get credit from the
bank which they can’t perform well otherwise. Financing is done on the basis of analysis of the
business.

iii).Term Finance:
Term finance is a long term credit facility of 2, 4, and 6 years. It is also known as project
financing. The important point in this credit facility is, mark up is charged by the bank on the
whole amount of funds either customer utilized the sanction limit or not. Repayment is done in
installments. iv).Lease Finance:
It is also a long term credit facility provided by Bank Alfalah. It is also known as equipment
financing. Actually financing is done for the equipment. In this credit facility, the ownership is
on the name of bank first, after repayment of funds the ownership is transferred to the
customer.

2.Non Funded Credit Line Facility:

It’s a commissioned based financing. In this credit facility funds are not transferred to the
customer directly. This credit facility has two products,

• Letter of Credit
• Letter of Guarantee/Bank Guarantee
i).Letter of Credit:
This is used for the purpose of foreign trade. It is actually a written undertaking by the issuing
bank for the payment a sum of money during a specified duration of time on the request of
applicant (buyer) to the beneficiary (seller). It will be discussed in detail in department of
“Trade Finance.”

ii).Letter of Guarantee/Bank

Guarantee:
It is a written guarantee by the bank on the behalf of the customer which bank gives to the
specific company because it is usually used in bidding and tenders filling. It will be discussed in
detail in department of “Trade Finance.

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 Trade Finance Department
This department controls the trade which occurs across the borders from Pakistan to other
countries or in short foreign trade which includes imports and exports. For this purpose “Letter
of Credit” is issued by the issuing bank to facilitate the trade between two traders of the
different countries. It provides security and safety for the payment of a sum of money involves
in trading to the applicant and beneficiary who are doing imports or exports.

Letter of Credit:
As it is stated earlier in non funded credit facility in “Credit Department” that Letter of Credit is
actually a written undertaking by the issuing bank for the payment of a sum of money during a
specified duration of time on the request of applicant (buyer) to the beneficiary (seller). It is
issued against some securities like mortgage properties, pledge of stocks etc.

Types of LC’s:
There are two types of LC’s

i. Site LC
ii. Usance LC

i).Site LC:
Site LC is the form of LC in which the bank honors the beneficiary against the documents and
the material stated in the LC at the place which is stated by the mutual consent of the applicant
and beneficiary. Receiving of shipment and payment occurs at the same time.
ii).Usance LC:
In this type of LC payment is made against the acceptance of the items stated in the LC with
stated conditions. Payment is done after some time.

Documents/Requirements for LC:

Applicant will provide the following things for a LC,

i. LC application request
ii. Sale Contract/Performa Invoice
iii. LC application form iv. Customer Portfolio

Beneficiary will provide the following things,

i. LC amount
ii. Quantity of imports (Weight, units)
iii. Partail shipment allowed or not allowed iv. Certificate of Origin
v. Bill of Lending

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 vi. Airway Bill
vii. Truck Receipts
viii. Packing
After verification of securities and details provided by the application, a credit line proposal is
made which is sent to the Area Office. After Area Office requestl the LC is issued to the
customer.

Clearing Department
Clearing means the transfer of funds within the same bank or to other banks. It is the part of
the Remittances Department. Clearing is done for cross cheques only. Clearing can be done in
following ways,

Inward Clearing

Outward Clearing

Inward Clearing:
When a customer comes who has his account in Bank Alfalah and he presents a cheque which is
also of Bank Alfalah then transferring of funds in this case through cheque from one account to
another is termed as inward clearing.

Outward Clearing:
When a person with his account in Bank Alfalah comes and presents a cheque of the bank other
than Bank Alfalah then transferring of funds in this case through cheque from one account of
the other bank to another account of Bank Alfalah is termed as outward clearing. Usually it
takes 4-5 days for clearing a cheque.

Same day clearing:

Clearing of cheques which occurs in one day is called same day clearing. Presentation and
clearing of cheques is carried out in the same day. But there is a condition under which a
customer can use the facility of same day clearing and that is, cheque should be above than
Rs.200,000 otherwise a person can’t use the facility of same day clearing.

The process of clearing is done in a clearing house of the State Bank. National Institutional
Facilitator Technologies (NIFT) is used for this purpose. The NIFT employees come daily and
take all the cheques from the bank for clearing purpose and deliver them to State Bank. In this
way the process of clearing is done by The Bank Alfalah.

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Suggestions and Recommendations:
During my internship I found some of the faults and lack of some of the facilities in bank’s
operations. Here are some of the suggestions which I recommend to the Bank Alfalah.

 The advertising of bank and bank’s products is not so much good and exposed to
people. So, Bank should hire some of the skilled marketers who can design creative and
attractive advertisements and advertising campaigns by using all possible medias to
make every person aware of the bank’s updates about old and new products and
services.
 Bank is using token system to avoid difficulties for the customers to withdraw or pay
deposits. But uneducated and some of the educated customers do not know that which
token should they get from the machine. So there must be a bank employee for the
guidance of customers.
 Training sessions of bank employees of all over the country are conducted by bank at
Head Office Karachi which is very expensive for the bank to bear the accommodation
and meal charges of the employees. So bank should expand and establish some more
training centers in other cities of the country in order to reduce these expenses.
 Bank is somewhat slow in launching new products. So bank should review its policies of
launching new products in short and reasonable time.
 Foreign branch network should be increased in order to capture profits from all over the
world.
 There should be a communication link between executives and top level management.
 Incentives and award system should be introduced for the employees for their
motivation.
 Employees should not be overloaded with work, this helps in relaxation of employees
and will increase job satisfaction of employees which is in best interest of the bank.

Conclusion
The “bank” is an institution which accepts or collects the money or deposits from those who
have surplus of it and lend it to those who have it or have capital in deficit, it actually acts as a
financial which connects persons with surplus money to those who have shortage of money. In
this process banks earn profit or commission for connecting these people. The word “bank”
originates from the Italian word “ banque or bancus” and no one is sure about its true origin. In
the past times the people used religious as a place for keeping their money, savings and gold
with precious metals as well because the people thought that their money and gold is safe
there. Goldsmiths of that time started the exchange and gold and they acted as bank agents
between the people, that was the time which started the concepts and need of proper system
of banks. But today’s modern banking system is much different from that system.

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Till the end of June,1948 the financial operations of Pakistan was governed by the “Reserve
bank of India” but that casted a loss to Pakistan in a sense that British Government distributed
the 70% of reserves to India and Pakistan got just 30%. After this Quaid-e-Azam laid down the
foundation of “The State Bank of Pakistan” in July 1st, 1948.

In Paksitan there are a number of commercial banks which are accepting deposits and
advancing loans to customers with a lot of other facilities of providing financial services and
products to customers like car financing, home loans, debit and credit cards, agricultural loans
and a lot of other products.

Bank Alfalah is one of the most important, emerging and profitable bank in Pakistan which is
owned by the Abu Dahbi Group and is governed by His Highness Sheikh Nahayan Mabarak
AlNayayan. It was incorporated on June 21st, 1992 and started its banking operations from
November 1st ,1997. In its 13 years of age it showed a remarkable performance and
improvement with huge profits which is becoming high and high. But do not forget about the
“Global Economic Crisis 2008” which affected all the banks including all the businesses.

Bank Alfalah has aimed to provide the customers all those financial services which is better for
them and to become the leading bank of Pakistan. The mission of the bank is complement and
to the services which the bank is providing to the customers. The mission of the bank is,

“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”.

The existing state of bank shows that the bank management is skilled enough because they are
providing innovative products to customers and are delivering quality services which has
strengthened the brand name of the bank and are getting high profits which is shown by their
mission statement. So the bank is on its way to achieve its missions and objectives very
enthusiastically and energetically in this age of high and tough business environment with the
passage of time.

It is very interesting to know that at the time of its inception there were only three branches of
Bank Alfalah which faced a number of problems to start with and had no experience at that
particular time of its working but now at this time of modern banking Bank Alfalah is operating
through 321 branches including 60 Islamic Banking branches with seven foreign branches out of
which five branches are in Bangladesh and two in Afghanistan and one offshore branch in
Bahrain which is providing its financial services to customers. This is showing that it is one of
the emerging and fast growing banks of Pakistan.

Bank is engaged in such activities which are helpful for the bank to be premier banking
institution of the Pakistan, although it is very difficult and challenging goal but is realistic for
achieving.

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Strategic planning continuously reviewed by the bank so their policies and planning remains
relevant to the diverse business environment. And this is helpful for the bank for handling the
difficult situations.

To meet these requirements the bank has a training department at Head Office which arranges
seminars and workshops at time to times and train existing staff members about the new
business dealing behaviors, new ways of working and dealing customers, about competitors
and many more. Human resource department hires 30 fresh post graduates as MTO’s
(management training officers) who train staff of the bank.

Bank Alfalah is successfully completing its journey towards progress with the help of its
specialized, skilled , highly qualified and professional management at all levels. Top
management formulates the strategies in accordance with the standards formulate to achieve
the desired goals and objectives. As with the passage of time and it is fact that the external
business environment is very dynamic in nature so these strategies keep on changing to keep
the Bank up to date. For this purpose bank adopted corporate, business and departmental level
strategies which helps the bank perform well.

At the corporate/top level there is board of directors and executive committee, who controls
such important functions as determining goals and objectives, formulations of business policies
and strategic planning. Corporate philosophy stresses the highest level of security, reliability
and value for its client’s money which is the core strength of the bank.

Top management formulates the business level strategies. Chief Managers are also the part of
this management level who formulates the strategies and technical planning which determines
the methods of getting the best and in time completion of jobs from its human resource. They
define and interpret the objectives and goals and formulate policies to achieve them

Department strategies are formulated at the department level and are formulated by the Head
of the Department.. Each and every branch manager formulates the policies according to the
branch setup and at each level of bank environment because he is directly responsible for the
management and controlling the activities of the employees. For implementation of these
policies meeting are called with the presence of Head of the Departments to get the best and
efficient and desired goals behind these formulated policies.

Bank Alfalah is the fastest growing and expanding bank in Pakistan. It is establishing its
branches all over the Pakistan not just in urban areas but also near some rural areas so that
every person can have access to the bank. Simelarly bank is aimed to expand at international
level to serve the customers as its vision statement shows,

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

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The bank’s primary and foremost priority is to find and support clients’ financial needs. At Bank
Alfalah all is ensured through constant restraining regimes, they are going towards professional
development, advanced banking solutions and information technology.
For the satisfaction of the valued customers and the shareholders the management of bank
implemented some of the new and modern ways of doing work and policies which aimed at
consolidated the bank’s financial position and creating a very big, strong, consisten and
diversified business base.

Despite the fact that the economic condition n of the country as well as of the world is not
favorable, even then the performance of the bank over the years remained very good and
progressing. And this is the result of the highly prioritized product portfolio, specifically tailored
to suit discerning needs and preferences of highly valued customers.

Bank Alfalah is aimed at maintaining quality banking, profit performance and reliable customer
service and these things will make it a responsible corporate citizen. The key mission is the
emphasis on innovation and quality both in products and services as well as the quality of
human resource. At this time bank has maintained its positions as a quality financial institution.
The success of every business depends upon the good clientele. Bank Alfalah is very good at its
policy of selecting clients which will retain for a long time and will provide profits to the bank.

The bank checks all the particular and required things and references about the clients before
final selection. Bank confirms and verifies all the provided detail and referrals before final
selection of the client and having a relationship with the customer. This bank’s policy helps and
protects the integrity of the bank and a long term relationship with the customer.

The marketing department of the bank works on the philosophy that the customer is the
central focus of the bank’s business because without customer there is no existence of tha
bank.

Products are launched by placing the customer at the centre of the business, and each service is
developed for the satisfaction and fulfillment of the customer needs as best as possible.

Bank ALfalah’s culture is service excellence oriented. Bank is working on the enrichment and
development of the quality services which will distinguish it from other banks and provides it a
competitive advantage by developing new areas of activities.

Bank Alfalah has made a remarkable progress in the areas of consumer banking as a niche area
for the bank and earned a lot of profit from it. Like car financing and debit and credits cards.
The bank has developed a system for internal control and monitoring for measuring risks which
can be arise from the consumer banking and developed automated, electronic and
computerized environment to control this.

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Bank has great strengths which its competitors do not have as it has a vaery attractive brand
name with a slogan of “The Caring Bank” which is somewhat emotional touchy for the persons
who seeks for care. The HR of the bank are very trained, professional and skilled which is
contributing towards the profits of the bank and bank in this way going towards attaining
continuous profits. The workforce of the bank is very young and energetic and working is being
done on standard basis. Pkiatan government is supporting the bank because it is the foreign
investment bank which is acting as FDI for Pakistan.

The graph of the bank’s performance is going in upward position which is a very good sign for
the bank. It was possible for the bank because the bank has given a lot of importance and
attention to its customers and made the product portfolio according to the needs and wants of
the customers. Because bank is using the continuous process of assessing the needs and
preferences of the customers which is very helpful in making new products and for providing
the desired services to the customers.

In 2009 the bank was able to attained 2nd position in respect of the size of the balance sheet. In
that year bank maintained the capital adequacy ratio of over 13 %.

As in the portion of financial analysis I have calculated a number of financial ratios for BAL for
past five years which are clearly showing that the performance of the bank is very good with
little variations in the profit but realistically the growth has fallen in 2009 because of the affects
of Global Financial Crisis of 2008 which affected not only the performance of BAL but also of
the other businesses as well. Similarly the economic and political condition of the Pakistan is
not very good for the bank because changing political situations, terrorism and changing
government policies affecting the performance of the bank very badly.

Last but not the least; Bank Alfalah has all the capabilities for coping with the changing business
environment, bad economic conditions and political condition of the bank. If the bank will keep
on moving on its way like this with the help of their unique business policies then the time is
near when The Bank Alfalah The Caring Bank will be at the top of all the banks. The history of
banking in Pakistan is very interesting because at the time of independence there was no bank
in Pakistan which could perform the banking operations for this area of the world. Till the end
of June,1948 the financial operations of Pakistan was governed by the “Reserve bank of India”
but that casted a loss to Pakistan in a sense that British Government distributed the 70% of
reserves to India and Pakistan got just 30%. After this Quaid-e-Azam laid down the foundation
of “The State Bank of Pakistan” in July 1st, 1948.

In Paksitan there are a number of commercial banks which are accepting deposits and
advancing loans to customers with a lot of other facilities of providing financial services and
products to customers like car financing, home loans, debit and credit cards, agricultural loans
and a lot of other products.

Bank Alfalah is one of the most important, emerging and profitable bank in Pakistan which is
owned by the Abu Dahbi Group and is governed by His Highness Sheikh Nahayan Mabarak

25
AlNayayan. It was incorporated on June 21st, 1992 and started its banking operations from
November 1st ,1997. In its 13 years of age it showed a remarkable performance and
improvement with huge profits which is becoming high and high. But do not forget about the
“Global Economic Crisis 2008” which affected all the banks including all the businesses.

Bank Alfalah has aimed to provide the customers all those financial services which is better for
them and to become the leading bank of Pakistan. The mission of the bank is complement and
to the services which the bank is providing to the customers. The mission of the bank is,

“To develop & deliver the more innovative products, manage customer experience, deliver
quality services that distribute to brand strength, establishes a competitive advantage and
enhances profitable, thus providing value to the shareholder of the bank”.

The existing state of bank shows that the bank management is skilled enough because they are
providing innovative products to customers and are delivering quality services which has
strengthened the brand name of the bank and are getting high profits which is shown by their
mission statement. So the bank is on its way to achieve its missions and objectives very
enthusiastically and energetically in this age of high and tough business environment with the
passage of time.

It is very interesting to know that at the time of its inception there were only three branches of
Bank Alfalah which faced a number of problems to start with and had no experience at that
particular time of its working but now at this time of modern banking Bank Alfalah is operating
through 321 branches including 60 Islamic Banking branches with seven foreign branches out of
which five branches are in Bangladesh and two in Afghanistan and one offshore branch in
Bahrain which is providing its financial services to customers. This is showing that it is one of
the emerging and fast growing banks of Pakistan.

Bank is engaged in such activities which are helpful for the bank to be premier banking
institution of the Pakistan, although it is very difficult and challenging goal but is realistic for
achieving.

26
BEST OF LUCK

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