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ACKNOWLEDGMENT

I have completed a report based on my familiarity with my past

studies in order to get a bit familiar with the practical experiences in

organizations. By the grace of Allah Almighty I have accomplished this

report.

Sincerely, to my knowledge and exposure to this subect, I dedicated

my little effort to every one who works for the cause of !akistan. I

express my appreciation to Bahria "niversity that scheduled and

assigned me this report and I hope my efforts will be duly regarded.

1



PREFACE

#heory and practice completes the cycle of human instinct $uest for

knowledge and his need to solve day%to%day problems systematically.

#he purpose of this program is to give practical knowledge about the

functions of the organization.

#he Internship !rogram also gives better comprehensive and exposure

of theoretical concepts, which are studied during BBA as well as helps

the students to get ac$uainted with actual working atmosphere and

re$uirements in organizations.

&or the purpose of Internship I oined Bank Alfalah. 'uring my period

of Internship I got a chance to work in different departments and I

have tried my best to compile the same in my report.

2



THE VISION

(ur vision is to be a leading financial institution, with a niche in

areas where we have a competitive advantage with complete

banking solutions. (ur focus is on improving performance in each

of our businesses to achieve consistent and superior returns for

our highly valued clients and stakeholders.

3



THE MISSION

(ur mission is to maintain a competitive edge in $uality banking,

customer service and profit performance. (ur activities are

geared towards making Bank Alfalah a responsible corporate

citizen. #he emphasis on )*uality and Innovation+ will remain our

key mission statement. e will continue to strengthen our

position as the leading provider of $uality financial services in

!akistan.

4



THE PHILOSOPHY

-xcellence in Service

*uality !erformance

!roduct Innovations

5



INTRODUCTION

Banking backgr!n" in Paki#$an

At the time of independence there were /0 offices of scheduled

banks in the territories of !akistan. #he 1eserve Bank of India was

the only bank to settle the problem of coinage, currencies and

exchange etc. #here were 23 non% Indian foreign banks with the status

of small branch offices, which were engaged solely in export of corps

from !akistan, while there were only 4 !akistan institution i.e. 5uslim

commercial bank, 6abib bank 7#', and the Australasia bank.

State bank of !akistan was established on 8uly 2, 23/ and assumed

full control of banking and currency in !akistan. In order to develop

sound banking 9 weeding out weak institutions, the Banking :ompanies

:entral Act was promulgated in 233, empowering the State Bank to

control the operations of banking in !akistan.

Another very significant event in the development of banking in

!akistan was the appointment of the :redit In$uiry :ommission in 23;3

to examine the scope and working of the institution providing credit

facilities to agriculture, trade, commerce and industry and

recommended measures for further improvements

6



Bank A%&a%a'

Bank Alfalah during the past five years, has assumed a brand new

identity plied with a spurred vision and revived commitment, following

the privatization of 6.-.:.B in 2330. Since then the Board and the

5anagement of the bank have implemented strategies and policies to

carve a distinct position to carve an instinct position for the bank in

the market.

#he strengths of Abu 'habi <roup have helped Bank Alfalah

contribute towards the development of $uality retail and :orporate

banking in !akistan.

#he bank was ac$uired by the Abu 'habi :onsortium, which is headed

by Shaikh =ahyan Bin 5abarak Al%=ahyan, a prominent business

professional of the ruling family of Abu 'habi and the 5inister of

6igher -ducation and Scientific 1esearch, ><ovt. of "A-?. (ther

members of the :onsortium include 1oyal &amily members and leading

businessmen of "A-. #he consortium owns 0@ of the shares while

the <ovt. of !akistan has retained the remaining 4@ of the banks

shares. #he financial and managerial strength of Abu 'habi :onsortium

has greatly enhanced the credibility of the bank in !akistan and is

reflected in the banks improved performance in all the spheres of

banking.

7



In pursuance of State Bank of !akistan, directives to all commercial

banks to get themselves )rated+. Bank Alfalah also undertook the

exercise with !A:1A >!akistan :redit 1ating Agency?. #he premier

rating agency, which is an affiliate of IB:A, rated the bank as AA% for

long term and A2C for short term. Both ratings are investment grade

and denote very high credit $uality and very low expectation of credit

risk. #he ratings are applicable to senior unsecured creditors of the

bank.

In the efforts to branch out overseas, the bank is in the process of

ac$uiring a D; stake in a banking company in Bangladesh. #his

ac$uisition will not only help the bank promote bilateral trade with

Bangladesh, but also help in the initiation of business with other

countries of SAA1: and &ar%-ast region.

T'( Manag()(n$

Alfalahs manegement is known for their hard work, product innovation

and dedication to make sure that the development and modernization

process keeps the bank ahead of competition.

8



ith a team of talented, service dedicated professional bankers, Bank

Alfalah commits all of its energies, resources and time to cater to

banking and financial needs of its valued clients.

&ollowing members form the board of directors of Bank Alfalah.

2. Shaikh =ahyan Bin 5abarak Al%=ahyan >:hairman?

D. 5r. Abdullah Ehalil al%5utawa

4. 5r. (mar F. Al%Askari

. 5r. Abdulla =asser 6awaileel Al%5ansoori

;. 5r. =adeem I$bal Sheikh

G. 5r. Ikram "l%5aeed Sehgal

0. 5r. 5ohammad Saleem Akhtar >:hief -xecutive?

9



Organi*a$ina% S$r!c$!r(

All the affairs of Bank Alfalah are run by the Board of 'irectors,

headed by the :hairman and :hief -xecutive, who are responsible for

all matters happened in the company i.e. profits, plans strategies,

losses and employee satisfaction etc.

#he management network can easily be visualized in the organization

chart.

Manag()(n$ S$r!c$!r(

:hairman

:hief -xecutive (fficer

5anager

Senior Authorized (fficer

10



Senior :lerk

8unior :lerk

COMPANY ANALYSIS

O+(ra$ing an" Financia% Ana%,#i#

#he bank is currently operating in 4/ branches within the country and

has been successful during the year on the further mobilization of

resources by attracting low cost and stable deposits. Bank Alfalah has

shown remarkable progress in their operations within these few years.

'espite notable economic uncertainties, the banks financial strength

has greatly enhanced during the recent years. #he successful

expansion program has proved the banks capability and commitment in

comparison with the competition in the industry. It is heartening to

note that in ust a few years, which are considered as the infancy

stage in industry, the bank has increased its branch network a lot. #he

11



expansion program is strategically important to increase customer

base and help the bank to approach different customer segments

#he banks treasury activities comprise of almost client%backed

transactions, emanating largely from foreign trade business. #he

#reasury is $uite active in both sections of the inter%bank market i.e.

foreign exchange and money market.

#he bank continues to maintain positive and healthy li$uidity. #heirsurplus li$uidity is mainly kept in fixed income securities, issued by the

&ederal <overnment of !akistan that can be easily be converted into

cash, if necessary.

ithin the first year >233/? their 'eposits grew up by 42, Advances

by , #rade &inance by almost 2@@ and the total assets by 4;.

#he banks position has still improved in the year D@@D.

#his situation can be observed in the table on the other pageH

12



-../

>Billions?

-...

>Billions?

Gr0$'

E1!i$, 2.G42 @.3@2 ;2

D(+#i$# [email protected]@0 D@./D 0

I)+r$# DG.G;/ 24.DD/ 2@D

E2+r$# D;.DG2 2G.0;0 ;2

Pr&i$ b(&r(

Ta2

;D.2G @@.4;@ 42

Pr&i$ a&$(r

Ta2

[email protected] D2;.4;@

T$a% A##($# @.@3/ D/./;; 43

A"3anc(# [email protected]@ 2G.4;0 D

/4 C!rr(n$ Ra$i

:urrent 1atio J :urrent Assets

:urrent 7iabilities

13



Y(ar -... Y(ar -../

1upees in @@@

0,43@,/2 /,@3@,G0D

G,G;,3GD 0,042,@/0

/4// /4.5

-4 D(b$ $ E1!i$, Ra$i

'ebt to -$uity 1atio J #otal 'ebt

Share -$uity

Y(ar -... Y(ar -../

1upees in @@@

D0,24G,;4@ 40,34/,22

3@@,G/@ 2,4G2,D3D

6.4/-7 -8479:

64 D(b$ $ T$a% A##($# Ra$i

14



'ebt to #otal Assets J #otal 'ebt

#otal Assets

Y(ar -... Y(ar -../

1upees in @@@

D/,/;,G4D @,@3/,@3;

D0,24G,;4@

40,34/,22

/4.9 /459

H!)an R(#!rc( Ana%,#i#

Bank Alfalah believes that humans are their most valuable assets. In

the pursuit to impart sound technical skills to their staff, the #raining

and 'evelopment :enter continues to offer programs in several skill

areas. #he banks training and business philosophy is geared to provide

professional, personalized and efficient services to the clients at all

times. #he bank is making its own positive contribution to the services

15



culture of the banking system as a whole, providing at the same time a

breakthrough to the customers in terms of choice based on $uality.

#he bank continues to hire fresh 5BAs from prestigious universities in

batches of D@ D; officers, who then undergo rigorous and intensive

training, first at the hands on experience. #he Board places utmost

importance to its human asset base.

T(c'n%g, Ana%,#i#

#echnology and automation play a pivotal role in the progressive

development of an organization. It has become impossible to control

the operations of a bank effectively in real time situation without the

latest technology.

#echnological developments are opening up new vistas of solutions for

distributing traditional financial products. :oncurrently, rapid change

in customer preferences has resulted in maor shift from manual to

automated services.

Information technology today, is all pervading in the corporate world.

'uring the past years Bank Alafalah made heavy investments towards

enhancing its capabilities in the area of automation and information

16



technology. #he bank plans to achieve total connectivity between

branches by the end of last $uarter, D@@D. the obectives are to

achieve efficiency in services and to control costs. #he bank is working

on a plan to increase their A#5 installations and also oin a Switch

<roup of other prominent banks. In the first phase of this program,

the installation of D0 A#5s is already underway.

ENVIRONMENTAL ANALYSIS

Branc' N($0rk

Bank Alfalahs obective has been to expand its branch network to

meet its clients needs. #he banks strategy is to maximize the

synergies of branch network through an optimal allocation of financial,

human and other resources in order to meet the dynamic challenges of

present financial environment.

Inherited with a network of 4 branches, Bank Alfalah has escalated it

to 4/ branches all over !akistan. #he bank is well positioned and

geographically poised to cater for increased business demands from

its existing and potential clientele. =ow there are branches in almost

every maor city.

17



#he bank, at the end of D@@D plans it, that this figure of 4/ branches

would reach to ;.

&ollowing are the cities in which branches of Bank Alfalah are present.

2. Bahawalpur

D. &aisalabad

4. <uranwala. <urat

;. 6yderabad

G. Islamabad

0. Earachi

/. 7ahore

3. 5ultan

2@. 5ardan

22. 5ingora

2D. !eshawar

24. *uetta

2. 1awalpindi

2;. 1ahim Kar Ehan

2G. Sahiwal

20. Sukkur

2/. Sargodha

18



23. Sialkot

S(r3ic(#

#he Banks performance over the passing years seems to improve even

when faced by challenging economic conditions. #his has been the

result of the banks highly prioritized product portfolio, specifically

tailored to suit the discerning needs and preferences of customers.

Besides being focused on :orporate and Investment Banking business,

Bank Alfalah is now entering into :onsumer Banking area. In addition to

tailor made products to meet customers re$uirements, Bank Alfalah

offers the following services to its clientsH

• Ca#' Financ( Faci%i$,

#o meet short%term li$uidity re$uirements, the bank offers :urrent

&inance &acility to meet working capital re$uirements. A special

relationship officer is assigned to look after corporate accounts to

ensure smooth and efficient functioning.

• S$r!c$!r(" Financing

#he bank has a dedicated team of thorough professionals providing

tailor made financing solutions. In adherence to re$uested

19



re$uirements the team provides cost and time effective solutions

ranging from -$uity :onsultation, &inance through :apital 5arkets

in the form of #&:s and 'ebentures, "nderwriting and arehouse

Indirect &inancing through !roect &inancing and Syndication.

• C%%(c$in Faci%i$,

#he bank provides collection facility from any of the 4; branches.

(ne can transfer funds from collection accounts from any of the

branches to his L her main account on daily basis without any timedelays and at very nominal rates. In places where Bank Alfalahs

branches are not available, the bank facilitates funds transfer

through strategic alliance with their correspondent banks.

• Sr$ T(r) ; M("i!) T(r) F!n" P%ac()(n$

#o optimize returns on ones surplus funds, the bank offers

competitive rates for which they have products that provide

returns on daily product basis. In addition, profit is paid on a

monthly basis that can boost ones annualized rate of return.

(ther facilities are as followsH

20



• 1oyal !rofit >'aily L 5onthly Interest earning accounts in

currency?

• (ne of the fastest and most lucrative &:K accounts mechanism

• (n line banking

• A#5

• !ersonal loans

• 7ockers

• Internet banking

•

:ar &inancing• Staff Salary Accounts

• !ersonal 1elationship Banking

C)+($i$r#

7ike all others, Bank Alfalah also has a number of competitors

2. 5uslim :ommercial Bank

D. =ational Bank of !akistan

4. "nion Bank

. "nited Bank

;. Allied Bank of !akistan

G. :itibank

0. 6abib Bank 7td.

21



/. &aysal Bank

3. !rime :ommercial Bank

2@. !latinium :ommercial Bank

22. Saudi !ak :ommercial Bank

2D. Indus Bank

24. Soneri Bank

2. #he Bank of Ehyber

2;. Bank of !unab

2G. <ulf :ommercial Bank20. 5etropolitan Bank

22



MY WORKING IN BANK ALFALAH

As stated earlier, I oined Bank Alfalah for the purpose of internship.I have worked here as an internee for two months. 'uring my

stay of two months I have worked in different departments. In

these departments, I was assigned different obs, which helped

me gain some practical experience.

I had to report at 3.@@ am sharp and was given a warning that, if I was

late for 4 days, I would be fired. It was applicable for all other

employees. #he bank timings were 3.@@ am to ;.@@ pm for all other

employees, but I am thankful to the manager, who relaxed me and I

was allowed to leave at 2.4@ pm due to my classes of the summer

semester.

#he overall staff was $uite cooperative and friendly, and everyone

treated me very well. But at the same time, there was a very strict

policy about punctuality as well as discipline.

&ollowing are the departments in which I have worked.

23



/4Car L(a#ing D(+ar$)(n$

I have worked in this department for almost D; days. 5y

supervisors name was 5r. Imran Shami. 6ere I learned the whole

procedure of getting a car leased.

5y duty was to contact clients at the time when their monthly

installment was due. 5oreover, 5r. Imran Shami made me deal with

customers who came for the purpose of car financing. I used to give

out a presentation about all this procedure.

In addition to this, I brought interested customers for Bank

Alfalah. All the were friends of mine, who got their desired cars

leased through me.

-4R()i$$anc( D(+ar$)(n$

#he next 2@ days of my internship were in the remittance

department. 6ere, my duty was to remit amounts. I was responsible

for remitting amounts to different accounts, which were received

from foreign countries.

24



64C!#$)(r S(r3ic(# D(+ar$)(n$

I passed my last 2; days in the :ustomer Services 'epartment.

6ere I was given a telephone line and I had to attend phones and

guide people as well as transfer calls to different departments.

Secondly I was assigned the duty of opening new public accounts. I

opened a number of new accounts during my internship program.

25



IDENTIFICATION OF A MAIN PROBLEM

Prb%()

It is a universal truth that every thing in this world has its own bright

and dark sides. It is the case with Bank Alfalah. 'uring my Internship,

I found a number of good things in addition to a few problems.

#he first day I entered the bank I was informed that on being late for

three days in a month, an employee is fired. -very one has to report at

3.@@ am sharp. Any one coming late is warned and is fired after three

days.

As mentioned before, I have also worked in the car%financing

department. #he second problem was observed there. I noted that

there was no separate phone line for that department. 'ue to this,

the personnels over there have to wait $uite long for the phone line to

be free.

S%!$in

#he problem is $uite serious, i.e. the rule is $uite rigid and there is no

leniency anywhere. A person can have any problem, and at anytime. =o

26



one is informed prior to getting in trouble. If a person gets late, he

should be allowed to explain the reason. If the reasoning is ustified,

then he L she should be excused.

#he second problem is not $uite serious. It can easily be resolved by

adding one more phone line in the department.

27



FINDINGS

&ollowing are the findings that I obtained during my internship.

2. #he bank maintains a very strict policy about punctuality.

D. Internees are treated well.

4. #he management continuously strives to minimize absenteeism in

employees.

. "p till now, Bank Alfalah is offering the lowest mark up rates in

car financing.

;. #he bank has remarkably escalated from 4 to 4/ branches within

!akistan.

G. #he bank has heavily invested in order to enhance its capabilities

in the field of automation and technology.

0. 'espite the uncertain economic conditions, the banks financial

position has improved $uite a lot.

28





Equity 1!631 0!901 51

Deposits 30!207 20!482 47

Imports 26!658 13!228 102

Exports 25!261 16!757 51

ro!it "e!ore #ax 524!164 400!350 31

ro!it a!ter #ax 310!612 215!350 44

#otal Assets 40!098 28!855 39

Ad$ances 20!220 16!357 24

%uman &esource Analysis

'an# (lfalah belie$es that humans are their most $aluable assets! In order to imro$e

staffs rofessional uality and rofi%ien%y the ban# %ondu%ted onob training rograms

and in house seminars %ourses at one training %enter! 'an# (lfalahs training a%ademy

is euied with the latest audio$isual training aids whi%h fa%ilitate in the

dis%rimination of #nowledge and s#ills!

"he ban# indu%ted thirty management trainees who are being ta#en through a simonth

%omrehensi$e ban#ing training rogram! "he ban# intends to %ontinue on a need basis

su%h rograms ea%h year!

#echnological Analysis

30



"e%hnologi%al de$eloments are oening u new $istas of solutions for distributing

traditional finan%ial rodu%ts! on%urrently raid %hange in %ustomer referen%es has

resulted in maor shift from manual to automated ser$i%es!

Information te%hnology today is all er$ading in the %ororate world! .uring the year

2000 'an# (lafalah made hea$y in$estments towards enhan%ing its %aabilities in the

area of automation and information te%hnology! "he ban# is well ositioned to meet

%lient needs with imro$ed %ometiti$e ad$antage!

%uman &esource Analysis

'an# (lfalah belie$es that humans are their most $aluable assets! In order to imro$e

staffs rofessional uality and rofi%ien%y the ban# %ondu%ted onob training rograms

and in house seminars %ourses at one training %enter! 'an# (lfalahs training a%ademy

is euied with the latest audio$isual training aids whi%h fa%ilitate in the

dis%rimination of #nowledge and s#ills!

"he ban# indu%ted thirty management trainees who are being ta#en through a simonth

%omrehensi$e ban#ing training rogram! "he ban# intends to %ontinue on a need basis

su%h rograms ea%h year!

'er$ices

'esides being fo%used on ororate and In$estment 'an#ing business 'an# (lfalah is

now entering into onsumer 'an#ing area! In addition to tailor made rodu%ts to meet

%ustomers reuirements 'an# (lfalah offers the following ser$i%es to its %lients

(ash Finance Facility

31



"o meet shortterm liuidity reuirements the ban# offers urrent Finan%e Fa%ility to

meet wor#ing %aital reuirements! ( se%ial relationshi offi%er is assigned to loo# after

%ororate a%%ounts to ensure smooth and effi%ient fun%tioning!

'tructured Financing

"he ban# has a dedi%ated team of thorough rofessionals ro$iding tailor made finan%ing

solutions! In adheren%e to reuested reuirements the team ro$ides %ost and time

effe%ti$e solutions ranging from :uity onsultation Finan%e through aital ;ar#ets in

the form of "Fs and .ebentures &nderwriting and +arehouse Indire%t Finan%ing

through )roe%t Finan%ing and <yndi%ation!

(ollection Facility

"he ban# ro$ides %olle%tion fa%ility from any of the 35 bran%hes! =ne %an transfer funds

from %olle%tion a%%ounts from any of the bran%hes to his her main a%%ount on daily basis

without any time delays and at $ery nominal rates! In la%es where 'an# (lfalahs

bran%hes are not a$ailable the ban# fa%ilitates funds transfer through strategi% allian%e

with their %orresondent ban#s!

Sort Term / Medium Term Fund Placement

"o otimi*e returns on ones surlus funds the ban# offers %ometiti$e rates for whi%h

they ha$e rodu%ts that ro$ide returns on daily rodu%t basis! In addition rofit is aid

on a monthly basis that %an boost ones annuali*ed rate of return!

=ther fa%ilities are as follows

32



• =n line ban#ing

• (";

• )ersonal loans

•>o%#ers

• Internet ban#ing

• ar Finan%ing

• <taff <alary (%%ounts

• )ersonal ?elationshi 'an#ing

#echnological Analysis

"e%hnologi%al de$eloments are oening u new $istas of solutions for distributing

traditional finan%ial rodu%ts! on%urrently raid %hange in %ustomer referen%es has

resulted in maor shift from manual to automated ser$i%es!

Information te%hnology today is all er$ading in the %ororate world! .uring the year

2000 'an# (lafalah made hea$y in$estments towards enhan%ing its %aabilities in the

area of automation and information te%hnology! "he ban# is well ositioned to meet

%lient needs with imro$ed %ometiti$e ad$antage!

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