arslan javed final project

8/11/2019 Arslan Javed Final Project

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Internship report on Bank Alflah Limited

Preferen*e

Banking sector owes a pivotal importance in the economy of any country though its

vibrant functions. This is the deep-seated motivator that geared up me to oin any

bank for internship. !oreover" the practice and familiarity learned during this tenure

would also attest very helpful and alleviating in the awaiting proficient life. !aking

analysis of financial statements is an important part of our !BA program. It is a

comprehensive" practical and e#tremely accessible presentation bout Bank Alflah

Limited. I have tried my best to present this report with full description.

$very effort is made to e#pose all the relevant concepts in this report. There is a

balance of clarity. !y obective in making analysis this repot is to provide a

fundamental knowledge about the company. I hope" it serves a stock of knowledge

about the Bank Alflah Limited.

It is the re%uirement of the !BA course that al the student s of !BA have to spend

si# or eight weeks in any organi&ation to get practical e#posure and get familiari&ed

wit the ways to live in the organi&ational environment which is dramatically different

from the educational enoinment. That period is called 'Internship (eriod)

If spends properly and sincerely" enables the students to be more confident" more

knowledgeable" more responsible and more committed to its work in the practicalfield. I have also assigned to do internship of si# weeks period in Bank Alflah Limited

it has enabled me to understand the practical scenario and sharpen our decision

making power and utili&ing the resources in an effective manner. *o that our

resources generate ma#imum profit.

In preparing this report. I have putted all my best efforts and tried my level best to

give ma#imum knowledge. +espite of my all coherent efforts. I do believe that there

will be a room for improvements in the efforts of learner like me.

I have strong belief that this report will guide and ease the readers to understand the

operations of banking system and more prominently have good knowledge about

Bank Alflah Limited. ,ne of the most trusty and leading bank In (akistan.

+ear readers" I hope that you will appreciate my report and sense that reading my

repot is not like to waste the time in any respect because of the four principle reason

as under

COMSATS Institute of Information Technology, Lahore

Department of Management Sciences


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/ A conscientious attempt is made to provide 00 1 realistic knowledge of the

real world organi&ation" Bank Alflah Limited.

2/ Almost all the terms are first e#plained in a simple and comprehensive way

used in this organi&ation before bringing them into play in different dealings

so the reader may soundly familiar to the operations performed in the banks.

3/ The data is relevant from beginning to end in this report not even a single

word.




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$- LO.IN' PARENTS,

RESPE(TE& TEA(HERS,

/

&EAR RIEN&S




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A(0NO1LE&'E$ENTS

All praise 4 thanks go to Almighty ALLA5" the creator who is the entire source ofknowledge 4 wisdom endowed to mankind. ,ffer my thanks from the depth of my

soul to the last messenger 5a&rat !uhammad 6(B75/ " who is forever a torch of

guidance and knowledge of entire humanity.

I have also completed a report based on familiarity with my past studies in order to

get a bit familiar with practical e#periences in the organi&ation. By the grace of

ALLA5 Almighty I have accomplished this report.

I am very thank to the !r. Asghar (racha 6Branch !anger/ and his team especially

to !r. 8adeem Trade officer who provided me every kind of help during internship

and in preparing this report.

I am very grateful to my entire well 9 wisher for this support" love 4 sincerity. !ay

ALLA5 give them reward in kind of 5is bless and love:




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Table )f *)ntent

E2e*utive Summary

(ha3ter N)4

5 Intr)du*ti)n

545 Industry Hist)ry and Ba*k+r)und

54% Hist)ry )f Or+ani6ati)n

547 Inf)rmati)n ab)ut )r+ani6ati)n

% Pr)du*ts and Servi*es

7 Or+ani6ati)nal stru*ture / &e3artment

8 Internshi3 E23erien*e

845 Internshi3 E23erien*e

84% 1)rkin+ E23erien*e

847 &uties / Res3)nsibilities

848 A**)m3lishment

849 Pr)blems durin+ Internshi3

9 Internal / E2ternal analysis

945 S:)t Analysis 94% PEST Analysis

947 $arketin+ Strate+y

948 ()m3etitive Strate+y

949 inan*ial Analysis

; ()n*lusi)n and Re*)mmendati)n

< A33endi2

= Referen*es




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Bank Alflah Limited promotes its products and services through print and electronic

media. It also promotes itself by sponsoring different events.

Cor Bank Alfalah Limited" it has to compete in an industry that has grown in 200; in

overall assets The maor > competitors of Bank Alflah" pose close competition and

are mainly large nationally incorporated banks and a few international banks" that all

wants to become the leading bank of (akistan" by creating some edge in the

industry. To create this edge" technology has played an important role in the industry

as banks are continuously trying to improve its products and services by introducing

innovative products.




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(HAPTER NO> 5

Intr)du*ti)n




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545 Industry Intr)du*ti)n and Ba*k+r)und

It has not so far been decided as to how the word 'Bank originated. *ome authors

opine that this word is derived from the words 'Bancus or Ban%ue" which mean abench. ,ther authorities hold the opinion that the word 'Bank is derived from the

=erman word 'Back" which means 'oint stock fund. It is therefore" not possible to

decide as to which of the opinion is correct" for no record is available to ascertain the

validity of any of the opinions.

Banking in fact is primitive as human society" for ever since man came to reali&e the

importance of money as a medium of e#changeD the necessity of a controlling or

regulating agency or institution was naturally felt. (erhaps it was the Babylonians

who developed banking system as early as 2000 BE. IT is evident that the temples

of Babylon were used as 'Banks because of the prevalent respect and confidence in

the clergy.

At the time of independence" there were ?3 offices of scheduled banks in (akistan"

of which @< were located in Fest (akistan alone. As a new country without

resources it was very difficult for (akistan to run its own banking system immediately.

Therefore" the e#pert committee recommended that the eserve Bank of India

should continue to function in (akistan until 30 th*eptember ;@" so that problems

of time and demand liability" coinage currencies" e#change etc. are settled between

India and (akistan. The non-!uslims started transferring their funds and accounts

to India. By the end of Gune ;@ the number of officers of

*cheduled banks in (akistan declined from ?3 to 22>. There were ; foreign

banks with the status of small branch offices that were engaged solely in e#port of

crop from (akistan" while there were only two (akistani institutions" 5abib Bank of

(akistan and the Australian Bank. The customers of the bank are not satisfied with

the uncertain condition of banking. *imilarly the eserve Bank of India was not in the

favor of =ovt. of (akistan. The =ovt. of (akistan decided to establish a full-fledge

central bank. Eonse%uently the =overnor-general of (akistan Huaid-e-A&am

inaugurated the *tate Bank of (akistan on Guly " ;@. Thus a landmark was made

in the history of banking when the state bank of (akistan assumed full control of

banking and currency in (akistan. The banking structure in (akistan comprises of

the following types"




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*tate Bank of (akistan

Eommercial Bank of (akistan

*aving banks. Eooperative banks

*peciali&ed credit institutions.

Eommercial banks have been the most effective mobili&es of savings and have been

providing short-term re%uirements of working capitals to trade" commerce and

industry.

7p to +ecember 3" ;


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54% Hist)ri*al Overvie: )f BAL

Bank Alfalah has gone through different phases over the years. Its name and been

changed in the following se%uence.

Bank of Eredit and Eommerce International 6BEEI/;


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(redit Ratin+

(AEA" a premier rating agency of the country" has rated the bank 'AA 6double A/"$ntity ating for long term and A 6A one plus/ for the short term. These ratings

denote a very low e#pectation of credit risk" strong capacity for timely payment of

financial commitments in the long term and by highest capacity for timely repayment

in the short term" respectively. The ratings of first and second and third unsecured

listed and subordinated TCE issues of (J ?>0 million" (J "2>0 million and

s."32> million have been maintained at AA- 6+ouble A minus/.




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547 Inf)rmati)n ab)ut the )r+ani6ati)n

54745 .isi)n

The vision o Bank Alflah is to be the premier organi&ation operating locally 4

internationality that provides the complete range of financial services to all segments

under one roof.

5474% $issi)n

The mission of the Bank Alflah is to develop 4 deliver the most innovative products"

manage customer e#perience" deliver %uality services that contributes to brand

strength" establishes a competitive advantage and enhances profitability" thus

providing value to the stakeholders of the bank.

54747 .alues

The values of Bank Alflah Limited are philosophy of honesty" transparency in

customer dealings" product innovation" e#cellence in customer service and our

commitment to being a responsible corporate citi&en.

54748 Ob?e*tives

To please their customers by fulfilling the financial needs as best as possible" they

believe in placing the client at the center of business and all of the products and

service. Cor this the management has adopted the strategy of" caring for you M..,ur

customerN

The obective of Bank Alflah is as follows

To get ma#imum share of the market




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To price the products optimally

To e#pand more the network of branches in several other cities of

(akistan as well as in the countries of the world.

To reinforce a corporate culture that fosters learning" creativity andfle#ibility.

To invest further in banking innovations which include Islamic banking"

*!$

5ome loans and other areas of product development to provide higher

levels of services and values to the clients.

To create ma#imum economic values for share holders through a

constant relationship focuses on financial services. Leveraging Bank Alflah Limited investments in the IT field.

,n going assessment of opportunities for customers" leading to the

constant development of new products and services.

To promote industrial" agricultural and socio economic processes through

the active participation of private and public sector in the country.

To create best relationship between customer and the banker.

To ma#imi&e profit share




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(HAPTER NO> %

PRO&@(T AN& SER.I(ES




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%45 Pr)du*ts and servi*es by BAL

The privati&ation process for the e#pansion and diversification of economic

activities in the country also demanded the introduction of new banking

products. BAL took initiative in this direction and for the first time BAL devised

and marketed new products and services with brand names to enter the

varying re%uirements of its diversified customer.

Alflah Islamic Banking offers the largest products range available with any

Islamic banking institution in (akistan including" Iarah" !udarbah" Istisna and

!usharika. Al l these products have been approved by the Banks

!anagement and cleared by the centre of Islamic $conomics.BAL currently has following products and services in the banking sector that

are making BAL more prominent in the banking sector

.

%4545 Alfalah $usharaka savin+ A**)unt

A profit and loss sharing saving account is an account characteri&ed by the fact thatprofit and loss is shared by the bank and customer. (rofit is distributed according to

the pre agreed ratio and the loss is shared according to the investment made by the

bank and the customer.withdrawls up to a specified limit is restricted. The customer

should have to give < days notice to bank for the withdrawal of money in the

account. The re%uirements for opening of a saving account are different from current

account.

%454% (urrent A**)unt

This account offers unlimited deposit and withdrawal facility to facilitate business

transactions. There is absolutely no limit on number of transactions" deposits" and

withdrawal.

%4547 Alfalah H)me $usharaka




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The customer identifies a property that heOshe wants to purchase and approaches

Alfalah-Islamic Banking for financing. 7nder the !usharika 5omes concept Alfalah-

Islamic banking will provide financing up to a ma#imum of 01 of the value of the

property to be purchased on !usharika property is gradually transferred to the

customer through purchase of !usharika units on diminishing !usharaka Basis.

This scheme enables clients to own their dream homes or renovate their e#isting

homes. The musharika home also enables the clients to transfer their conventional

mortgage from an interest based commercial bank to *hariah compliant product.

%4548 Alfalah *ar I?arah

The customer is able to finance their vehicle the smart way with Alfalah. Bases on

the *hariah principles of Iarah" Alfalah Islamic Banking will purchase the vehicle of

the customer choice and later rent to the client at a pre agreed rental amount.

,wnership of the vehicle is transferred to the client upon satisfactory payment of all

the rentals by the time the customers security deposits period e#pires. Insurance

and registration charges are Bourne by the Bank and the customer is not supposed

to pay any rental unless the vehicle is delivered to him.

%4549 $udarbah inan*in+

7nder this product the client and the Bank enter into a sale contract. The re%uired

goods are first purchased by the bank and then sold to the customer for a specific

period and at an agreed !udarbah price.

%4% Other Pr)du*t and Servi*es

Fith the mission to provide all-encompassing banking services to the

customers" Bank Al-Calah has a uni%uely defined menu of financial products.

Eurrently it is one of the most comprehensive portfolios of personali&ed financial

solutions that are custom-tailored to serve the re%uirements not only of conventional

customers but also fulfill the needs of the corporate sector

!oney =ram

Agriculture loans




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Lowest !ark up

Lower Insurance

Huick (rocessing

Lower +own (ayment

%4%49 Ru3ee Travelers (heue

upees Travelers Ehe%ue are as good as cash and are accepted at the maor

shops" travel agents" hotels business establishments and all over the country and

abroad. This service is being offered to facilitate instant fund availability to travelers

and business people who used to carry a large sum of money with them.

%4%4; Online Bankin+

To provide enhanced and value added products to customer bank is constantly

striving for additional facilities. Bank provide fully automated on-line telephone

banking facilities to its customers enabling them to carry out banking transactions

like balance in%uiries" statement re%uests" product information and e#change rate.

%47 (redit (ards

Bank Al-Calah Pisa Eard is everywhere and globally accepted and welcomed at

locations displaying the PI*A logo. It is accepted at nearly 30 million merchants and


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It is accepted at over 2; million locations in more than 200 countries

around the globe and at over 2


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Audit)r

A4I er+us)n / *)

(hartered a**)untant

(hief O3eratin+ Offi*er

$r4 Shakeel Sadi

()m3any Se*tary

$r4 Hamid Ashraf

Re+istered Offi*e

B4A4Buildin+

I4I4 (handi+ar R)ad

0ara*hi4

Bran*h Setu3>

The branch setup of BAL is following

Bran*h man+er

O3erati)nal mana+er

Seni)r )ffi*er

Juni)r )ffi*er




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74% &e3artment )f BAL>

Account opening +epartment

Accounts +epartment

Trade Cinance +epartment

Agriculture +epartment

Elearing +epartment

Eash +epartment

Eredit Administration +epartment

5uman esource +epartment

74%45 A**)unts )3enin+ &e3artment

Account opening department is one of the departments that come under

the general banking facilities provided by Bank Alflah Limited. This department

maintains all formalities of the accounts and account holders like it account name"

account holders name" code number and full address. +ifferent debit and credit

voucher come from different department like clearing" emittances" Eash" Coreign

e#change and advances posted against some of the maor deposit accounts opened

Accounts opening department is one of the departments that come under the

retailOgeneral banking facilities provided by Bank Alfalah. *ome of the maor deposit

accounts opened by Bank Alfalah are as follows

$a?)r &e3)sit A**)unt Pr)du*ts

(urrent A**)unt

Eurrent Accounts are non interest bearing accounts that have a minimum account

opening re%uirement of s. 0"000. 8o &akat is deducted on the accounts balance.

Curthermore all current account holders receive a 5ilal debit card and there are no

restriction on the number of withdraws or deposits made to and from the account.




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Pr)fit/ L)ss Savin+ A**)unt

(rofit4 Loss saving accounts can be opened with a minimum balance re%uirement of

s. >"000 and profit is credited on a half yearly basis. There are no restrictions on

the number of deposits and withdrawal made to and from the account and all

account holders receive a 5ilal debit card as well. (rofit and loss saving account

cannot be opened by a business corporation" however can be ointly opened by

individuals. (rofits are paid at 21 on all account balances.

Basi* Bankin+ A**)unt CBBAD

Basic Banking Account was introduced by banks on an order by the *tate Bank of

(akistan and is current in nature. There is no minimum balance re%uirement for

BBA" however initial deposit must be s 000. !a#imum two withdrawals and

deposits are allowed by Ehe%ue" while there is no restriction on AT! withdrawals.

R)yal Pr)fit A**)unt

oyal profit accounts are opened with a minimum balance re%uirement of s >0"000.

The basic aim of this account is that the higher the balance the higher the return" as

profit is credited on a monthly basis. The profit paid to account holders is as follows

(rofits paid on oyal (rofit Account

Amount (rofit pa.Crom s.>0"000 to ;;;";;; 2.>01

Crom s."000"000 to @";;;";;; 3.>01

s.>"000"000 and above 8egotiable

0ifayat A**)unt

Jifayat account is another saving account product that can be opened with a

minimum balance re%uirement of s 0"000" with a ma#imum limit of s million.




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(rofit is calculated on a monthly basis" while it is credited on %uarterly basis. Bank

Alfalah pays million. (rofits are paid at 01 pa" credited on a monthly basis. ,ther features

of this account include free personal accident insurance and automatic renewal for

another 3 years" after the e#piry of original period.

Alfalah Edu*ati)n

Alfalah education is a one year T+ that can be purchased by people having school

going childrens. A person can purchase a unit for s 00.000" with a ma#imum of 3

years. This T+ pays


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5D Individual A**)unts

There are two types of individual accounts

/ *alaried individual

2/ *elf $mployed

Salaried Individuals

$mployment certificate by the employer acknowledging the individual as

employee along with his salary" designation and period of employment on the

letter head and signed under rubber stamp of company

Attested copy of service card" or any other acceptable evidence of service

Self Em3l)yed

Eopy of 8.T.8 certificate of the individual

A letterhead along with a rubber stamp for proof of business or any other

acceptable evidence for verifiable source

Cor sole proprietorship" letter from the proprietor confirming proprietorship

%D ()m3any A**)unts

In this case the following documents are re%uired

Eopies of 8IE of +irectors of the company

Eertificate of incorporation of business

Eertificate of commencement of business6in case of (ublic Limited Eompany/

Article and !emorandum of Association

Latest copy of Corm-2;

List of +irectors

Eopy of Board esolution

7D Partnershi3

Attested copy of partnership deed duly certified by notary public and signed

by all parties of the firm

Attested copy of computeri&ed 8.I.E of all partners




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ubber stamp of all partners

(artnership mandate on the firms letterhead to operate the account

Attested copy of registration Eertificate

Attested copy of 8.T.8 certificate

8D (lubs # Ass)*iati)ns # S)*ieties

Eertified copies of rules O By laws

Eertified copies of certificate of egistration

esolution of the =overning body O $#ecutive committee for opening of

account authori&ed the person to operate the account and attested copy ofcomputeri&ed 8.I.E of that authori&ed persons.

An undertaking by all the authori&ed person on the behalf of the institution

mentioning that any change will be informed to the bank immediately

9D Trusts

Attested copy of certificate of registration

Attested copies of Eomputeri&ed 8.I.E of all trustees

Eertified copy of instrument of trust

Board esolution resolving to open and operate the account

Eertified copy of By- laws.

O3enin+ the a**)unt

The procedure of opening the account is as follows.

A**)unt O3enin+ )rm>

Cirst of all" the customer fills the account opening form 6A,C/. Cilling of account

opening form includes type of account" currency of account" name" address"

signature of customer and signature of introducer and attach a photocopy of national




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identity card. 5e also signs an undertaking that he will follow the rules and

regulations of the bank.

5DIntr)du*ti)n>

The signature and account number of the account holder introducing the account to

the new person is obtained on the account opening form.

%D S3e*imen Si+nature (ard>

The signature of the client is obtained on a specimen signature card 6*.* Eard/. The

card is obtained with two signatures from the customer. $very time a Ehe%ue is

received for payment from the client" the signature on the Ehe%ue is verified by

comparing it with *.* Eard.

7D Reuisiti)n sli3

A re%uisition slip for Ehe%ue book is also given to the customer. The customer fills it

and gives it to the account opener.

8D 0n): -)ur (ust)mer )rm

$very account holder fills this form. The basic purpose of this form is to get some

information about the customer.

9D A**)unt Number>

Fhen all the formalities are completed" an account number is allotted to the

customer and all the information is entered into the computer and register. Then that

account number is written on *.* Eard and account opening form.

;D &e3)sitin+ )f am)unt in a**)unt>




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The client deposit cash in the account. Cor this purpose cash pay-in-slip is used. The

minimum initial deposit is fi#ed for each account according to the nature of account.

Cor e#ample for (L* O saving account the minimum re%uirement is s.>"000 only.

After opening an account with the bank" the account holder makes a re%uest in the

name of the bank for the issuance of a Ehe%ue book. *uch a re%uest is known as

e%uisition *lip. BAL issues Ehe%ue books of at least 2> leaves. Fhen he used this

book completely then he can apply for another. This process takes a day because

the Ehe%ue books comes from Jarachi head office.

=D Entry )f (heue B))k>

Before issuance of a Ehe%ue book the bank stamp every leaf with the account

number of the customer" enter it in the Ehe%ue book register and computer and

issues the Ehe%ue book to the customer after his signature on the register.

"D ilin+ )f AO>

Account opening forms are basic documents of the contract therefore these are filed

in numerical order and kept for reference.

5!D Letter )f Thanks

A letter of thanks is prepared. ,ne letter is for the customer and one for the

introducer. ,ne copy is send to the customer and the other copy is kept in the record

along with other documents.

Amendments in A**)unts>

BAL provides the facility of amendments in accounts" whenever re%uired by the

customers. Account holder gives an application along with necessary documents to

the bank. Then the amendments are made in the account of the depositor. These

amendments can be made by filling certain application forms. These forms are as

follows




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(han+e )f Address )rm

To change the address of the account holder

(han+e )f si+nature f)rm

To change the signatures of the customer.

Liability # Inuiry )rm

This form is used if some person has ac%uired loan from the bank and he wants to

close his current account " then he fills this form and this form is send to credit

department. Fhen the credit department declares him free from any debt

obligations then his account is closed.

.erna*ular )rm

This form is used when some person wants to sign in any language other than

$nglish.

$andate t) the third 3arty t) )3erate the a**)unt

This form is used to enable any third party operate the account.

(l)sin+ )f a**)unts

The procedure of closing of account is as follows.

Cirst of all the customer gives the re%uest to close the account.

5is signatures are verified.

5e withdraws all his money from his account but in case of current

account s. >0 is deducted as a charge of closing the account.

A liability form is send to the credit department if he has taken a loan from

the bank. If he is cleared from all the liabilities then further proceeds are

taken.

(ermission is granted by the authori&ed person 6the manager/.

Account is closed in the computer system.

5ic specimen signature card is attached with the account opening form

and marked closed.




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747 A**)unts &e3artment

$very transaction which takes place recorded in the computer so all transactions

in different departments are forwarded to account department. *ince all vouchers

from different departments are forwarded to current department so this department

tallies all such transactions with current department after maintaining the ledger of

each department. Collowing are different functions performed by this department

Budgeting

eports

Cunds management

Activity checking

econciliation

Coreign e#change" old Account Eontracts

!aintenance of fi#ed assets and calculation of their depreciation

Test Jeys

Bud+etin+

The main task performed by the accounting department is the preparation of the

budget. Budget is based on forecasting and their own inspiration for future" whereas

forecasting is based on past performance. This is one important task on the basis of

which funds are allocated to various branches and also the targets are determined.

The targets determined +eposits" Advances" and revenues. $very branch prepares

its own budget for the fiscal year and then budgets of all the branches across the

country are consolidated at the head office in Jarachi. In this way a consolidated

budget is also prepared.




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Ciscal year of the bank starts from Ganuary to +ecember. Accounting department

starts preparing the budget from ,ctober for the ne#t year.

Before the preparation of budget the bank reviews its sources and funds it has and

the uses of those sources.

The main sources of the bank are the follows

+eposits" Eapital" Borrowing from other banks" etc

The main uses of a bank are the follows

Advances" Investment in securities" placement in interbank markets"

,ther things which are undertaken into account while formulating the budget are

Income" $#penses" etc.

The revenue target is fi#ed keeping in view the past performance. The cost of

generating these revenues is also estimated. Then budget of each branch is

submitted to head office for modifications and for approval. After the modification and

approval the budget for a specific branch is being set by the head office. !onthly

budget meeting is held to analy&e the monthly performance by all the branch

mangers with head office. The actual performance is compared with the estimated

and variance is calculated. Pariance can be negative as well as positive. If there is a

negative variance" this shows managements inefficiency in controlling its e#penses

or incompetence in achieving the desired revenue targets. (roper adustments are

made in the ne#t months target according to the previous months performance

because sometimes the goals which are set by the head office are unrealistic and

unachievable.

Re3)rts

In Bank Alfalah many types of reports are being prepared. These are daily" weekly"

monthly" semiannual and annual reports. These are generated from the main frame

and are used for proper analysis. The following reports are generated daily from the

main frame which are being used by the accounts department for the preparation of

their own reports




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Statement )f affairs>

It includes information about assets" liabilities and their balance. +aily position of

deposit and advances are also calculated in this report.

Subsidiary Statement>

This is a detailed report which includes all the information regarding the statement of

affairs.

In*)me and E23enditure re3)rt>

It includes all the details regarding to both the heads of income and e#penditure in

detail.

R)yal Pr)fit Re3)rt>

It includes the details of the deposit of royal profit account.

(urren*y :ise re3)rt C**yD>

It provides the details of all the deposits currency wise.

Ne: *y re3)rt>

This report includes the information regarding only the new foreign currency

accounts. The old foreign currency accounts are those" which were at the time of

nuclear e#plosions in (akistan and were being free&ed by the 8awa& *harif

government.

Sub ;; Re3)rt>

It contains income" e#penditure" general ledger accounts and their balances.

8ow following are the reports" which are being prepared with the help of the above

reports

&aily 3)siti)n )f advan*es and de3)sits>

This report is being sent to the head office daily in which the detail is given regarding

the new accounts of deposits and advances.




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Statement )f affairs>

This report includes assets and liabilities. Two copies of this report are made daily"

one is sent to the area office and one to the head office for analysis but the format is

different for both of them. *tatement of Affairs also prepared at the weekend for thewhole week as well as at the end of a month.

$)nthly Bud+et Revie: Re3)rt>

This report is made to review the performance of the month by calculating the

variance. And then if the variance is in negative" positive actions are taken and

reasons will also be mentioned in the report.

unds $ana+ement

$very bank in (akistan has an account with *tate bank of (akistan and has to

maintain >1 of the total deposit in the account with the *tate bank. Cunds

management is done only through the main branch. If the bank has so many

branches in a single city then only the main branch is responsible for the funds

management. +aily a report was prepared and reported to *tate bank.

The important factors that affect the report are as follows

Total +eposit 6of all branches in a single city/

,pening Balance 6closing balance of the previous day/

Inward Elearing

,utward clearing

Ehe%ue issued by *tate Bank

Ehe%ue +eposited

After all the calculations" a result is obtained which signifies the cash in hand of the

respective day. If the cash in hand is sufficient to fulfill the needs of the *tate Bank"

well and good other wise if the cash is not sufficient then the other options are

considered.

In case of shortage of funds" the main branch has the following options" which it can

adopt.

. TT from 5ead ,ffice




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2. Eover from 5ead ,ffice

3. Cunds from ,ther banks

TT fr)m Head Offi*e>

,ne solution of the problem is to contact and inform head office about our

respective position and demand for funds. 5owever the most fre%uent reason" why

this practice is not followed is that *tate bank has allowed only one TT free of cost

for all the branches in (akistan.

Therefore we first have to confirm head office that whether or not it is sending TT to

another branch of bank Alfalah. If the head office sends us the TT then it cannot

send any other TT to another branch of Bank Alfalah without charges. The charges

are also not negligible for e#ample the charges of TT for an amount of one hundred

million is above ?0"000. Cor this specific reason the TT is not encouraged.

()ver fr)m Head Offi*e>

The most fre%uent option used is to inform 5ead office about the shortage and ask

for cover. The head office then maintains e#tra amount in its account with *tate

bank. The e#tra amount will be the shortage of main branch reported. The main

branch will then pay interest to the head office on a rate of .>1 per day. The head

office is paid on monthly basis.

unds fr)m Other banks>

In case of funds shortage another bank is contacted with whom the bank has

settlement for instance $mirates bank. If this option is taken the head office is

informed and the head office then pays to the Jarachi branch of the respective bank

from which funds are taken.

A*tivity (he*kin+

Activity checking is the process of the entire banking" which has taken place. A report

known as activity report is prepared on daily basis. The report specifies every

vouchering" which has taken place. *orting is made according to the mainframe-

generated report. All the vouchers are checked that whether they are properly posted




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or is there any transaction left to be posted. This checking makes the working of the

bank more efficient and avoids any loopholes.

Re*)n*iliati)n

BAL prepares its reconciliation statements with

5ead ,ffice

*tate Bank of (akistan

Head Offi*e Re*)n*iliati)n>

All the debit and credit entries of the main office account are recorded in the

statement. Then it is checked with physical vouchers and if there is any problem"

they reconcile it. 5ead office e#tract are statements sent by branches to the head

office. They check the outstanding entries" if there is any entry posted by branch but

not by head office they will send their %uery to the branch and branch will respond to

that %uery by sending the re%uired document. 5ead office reconciliation is carried out

in the head officeD accounts department handles in%uiries.

State Bank )f Pakistan>

*B( maintains the account of every scheduled bank including bank Alfalah. The

statement of account reconciliation shows the entries that are passed during the

month in both banks. Bank Alfalah compares the statement with the ledger card of

*tate bank of (akistan in which all entries are recorded done with *B(. If any

amount debited by *B( and Bank Alfalah does not credit that amount" it is added in

the balance of the reconcile statement provided by the *B( to BAL.

$aintenan*e )f i2ed Assets and (al*ulati)n )f their &e3re*iati)n

Account department maintains the record of fi#ed assets. The accounts department

calculates the depreciation the assets by using straight line method. +epreciation is

the allocation of cost of the asset over the useful life. +epreciation is accrued on

monthly basis and charged at year-end. +epartment prepares Asset purchase report

and Asset sale report after every si# months.




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+epreciation is charged at the following rates

Building 2.>1

Curniture 01

Earpets 4 curtains 2>1

$%uipment 201

Test 0eys

Test is a coding system used to authenticate money transactions between banks.

Fhenever money is transferred through TT" the concerned officer re%uests the

accounting department to apply test to the message. The test is applied to the

messageD three copies of this message are prepared. ,ne goes to the test key

department" one to the Tele#Ofa# operator and the third one goes to the department

record. Fhen the TT is received at the other end" this test is verified. The transaction

will be carried out if and only if the test matches with their own test.

Banks have arrangement with other banks with which they have %uite a large volume

of business and it is beneficial to have a direct arrangement with these banks. This

test arrangement can be with banks within country and outside country. Cor e#ample

BAL has test arrangements with AB8 Amro 8.Q" American e#press 8.Q" Eitibank 8.Q"

etc. Fhen this arrangement is carried out a test key is provided to the concerned

bank" which contains codes. This test key is different for every bank. This test key is

also different for inward and outward TT.

In local transfer double coding is used and in foreign transfer single coding is used.

Test key tables are to arrive at the code. *eparate key table are used for different

banks. Twelve branches of BAL have arrangement for local transfer and three

branches are authori&ed for foreign transfer. Cour things should be carefully checked

because code is based on four things

Branch name

Eurrency

+ate

Amount




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Test can be applied on nil amounts. The purpose is to ust secure the transaction.

Another important significance of test is agency arrangement" which bank built with

other banks. In%uiries originated by any bank regarding the delay of any message

are also solved by the bank. They will check the message and will respond to the

%uery.

748 Trade inan*e &e3artment

Trade Cinance involves the import and e#port activities. This department provides

protection to the rights of importer and e#porter. The function of this department is to

serve as a bridge between the importer and e#porter in order to settle a transaction.

Fhen trade is taking place between the representatives of two countries 6e#porter

and importer/" the e#porter involves his bank 6the Advising Bank/ in the transaction"

as he wants to feel secure regarding timely payment of his goods in the re%uired

currency. ,n the other hand the importer involves his bank 6the Issuing Bank/" in

order to get a sense of security regarding timely supply of the re%uired product" in

the re%uired manner.

Trade Cinance +epartment handles two activities-

Import

$#port

I$PORT

Import +epartment of BAL deals with the import of merchandise. Import can be

defined as

KThe bringing of commodities into (akistan from outside by sea" land or air.)

e%uirement for the Importer

These re%uirement O document must be fulfilled from importer before doing the

import-

8T8 68ational Ta# 8umber/ certificate




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*ale egistration Eertificate

!embership from Ehamber ,f Eommerce

Huestionnaire duly filled in

8IE 6attested copy/

E23)rts

$#ports are maor sources of earning foreign e#change and play an important role in

the economic development of the country. It helps to utili&e e#cess resources of the

country.

K$#ports mean selling goods to another country.)

$#ports of all eligible commodities through authori&ed banking channels are

admissible under e#change control regulation.

Reuirement f)r the E23)rter

These re%uirement O document must be fulfilled from e#porter before doing the

e#port-

Account holder of Bank Alfalah Limited !ust be a (akistani

!embership from Ehamber ,f Eommerce

8T8 68ational Ta# 8umber/ certificate

The person must have the *ales Ta# egistration Eertificate.

Corm $ 6 e#port form/ dully filled in

*ale egistration Eertificate

$eth)ds )f &)in+ Internati)nal Trade

Letter of Eredit

Eontract

LETTER O (RE&IT CL # (D>

LETTER Of (redit CL # (D A&.ISIN'




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Letter of Eredit 6LE/ is a written and conditional undertaking by a bank on the behalf

of applicant to the beneficiary to pay a certain amount at a certain dateD if the

stipulated terms and conditions are complied with.

The process of International Trade starts with asking of importer to its bank for LOE.

Then importers bank will be called as issuing bank. The issuing bank sends the LOE

to Bank Alfalah Limited. A bank that receives the LOE is called an advising bank

because after receiving the LOE" it performs the LOE advising function. A cover letter

is prepared and is sent to the beneficiary of the LOE" advising him his LOE has

reached Bank Alfalah Limited and he should collect it immediately. A copy of the LOE

is sent along with the letter.

ISS@AN(E O EOR$S

=overnment has provided facility to e#porter in taking $-Corm from any bank and is

a part of the e#change control mechanism of the *tate Bank of (akistan. Fhen an

e#porter receives an LOE" his ne#t ob is to get an $-form from an authori&ed Bank.

,n the $-form sent by the commercial bank following things are mentioned

+escription of the commodity

Huantity of the commodity e#ported

Amount reali&ed

Coreign bank charges

Eountry of the importer

(ERTII(ATION O THE EOR$

After filling in the complete information about the goods to be e#ported" the e#porter

brings the $-form to the bank for verification. Bank issues $-form certification to

e#porter and he submits it to the custom officer along with $-form certification to

certify $-form.

&)*uments

After getting the $-form verified the e#porter starts preparing his shipment. Banks

only deal in documents. In order to receive payment from his goods the e#porter has




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to send certain documents to the issuing bank via his negotiating bank. These

documents are.

Bill )f e2*han+e

A bill of e#change is an instrument in writing containing an unconditional order"

signed by the maker" directing a certain person to pay a certain sum of money only

to" or to the order of" a certain person or the bearer of the instrument. It is drawn by

the e#porter 6drawer/ and orders the importer or the importers bank 6+rawee/ to pay

to the order of Bank Alfalah Limited 6payee/ a specific amount. If the draft is drawn at

sight" the importer must make the payment on receipt of the documents. If it is time

draft" the payment must be made within the specified time limit.

()mmer*ial Inv)i*e

The e#porter prepares it. Its amount must tally with that of the LOE. It shows the

name and address of the importer as well as the invoice number. This number is

very significant as it is used in all the correspondence between the e#porter and his

bank. It also contains all the specifications of the commodity being e#ported. The

standard definition of commercial invoice is that it is an itemi&ed list of goods shipped

to a buyer" stating %uantities" prices" and shipping charges.

Bill Of Ladin+

The shipping company or the airline that has been assigned the task of transporting

the goods issues these. The shipper must ensure that the goods are shipped andhanded over the right person when documents are presented to him. The standard

definition of a bill of lading is contract between the seller of the goods and the carrier.

The following are types of bill of lading

,E$A8 Bill ,f Lading

Air Faybill

Inland Bill ,f Lading




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Pa*kin+ List # 1ei+ht List

The e#porter prepares these lists in order to show that the consignment is accordingto the order of the buyer. It gives a detailed account of the manner in which thegoods have been packed and the number of cartons they have been packed in.

(ertifi*ate )f Ori+in

This document certifies the origin of the e#ported goods. In the case of e#ports from(akistan" the certificate of origin shows that the country of origin of the goods is(akistan. The certificate of origin is a document in which the e#porter certifies to theplace of origin of the goods to be e#ported.

E)rmIt is a necessity for all e#ports out of (akistan. All commercial banks always issue

the $-form in %uadruplicate.

,riginal is sent to the custom officer

+uplicate Bank receive the duplicate

Triplicate is sent to the *tate Bank ,f (akistan

E23)rt .isa

This document is re%uired when the destination of consignment is Eanada" America"

and 7.J. +ifferent countries fi# %uota for different commodities and restrict imports of

those goods with in a specific limit. There fore visa is re%uired which is in fact a

permission to e#port goods to the specified countries.

Payment by im3)rter

$#porters bank sends all the documents negotiated in LE to importers bank. ,nce

the shipment arrives in importing country" documents are kept with the bank until the

importer makes full payment to bank.

(OLLE(TION # NE'OTIATION>

Fhen the e#porter comes to the bank with the documents" he has two options.

*end them for collection

=et Them negotiated




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()lle*ti)n

The bank sends the documents on behalf of the e#porter to the importers bank for

payment. The payment is made in (ak upees and the e#change rate is the Buying

rate of the day normally called the T.T. Elean Buying ate. Fhen the reimbursing

bank is to pay Bank Alfalah Limited it credits its nostro account maintained with it

6the reimbursing bank/" and afterwards bank debits the e#porters account with the

local e%uivalent of the e#port proceeds calculated at the TT clean buying rate.

Ne+)tiati)n

The bank purchases the documents from the e#porter i.e. the e#porter gets them

discounted before their maturity. Cor e#ample" the drafts are at ;0 days from BOL

date. In simple words" the payment for the e#ports would be received after three

months. The e#porter might not want to block his funds for such a long time. 5e can

get his documents negotiated the day he presents them to the bank. The e#change

rate he will get will however be lower than the TT clean buying rate because the

bank is paying him an amount that it is going to receive after three months itself.

Eontracts are not negotiated however in any case. This is because they are unsafe

documents and the bank does not take the risk.

&is3at*h

The documents brought by the e#porter are in the form of sets containing an original

and a number of copies. The number of each document re%uired by the importer is

mentioned on the credit. 7sually they are

!anually signed commercial invoice

Bills of lading

(acking list in %uadruplicate

Bill of e#change

ilin+

A separate file is maintained in each case and if the documents have been

negotiated" it is titled C+B( that is the abbreviation of Coreign +ocumentary Bills




47/80


(urchased. If the documents have been sent for collection" a file in the similar

fashion is kept but it is labeled C+BE i.e. Coreign +ocuments *ent Cor Eollection.

(ONTRA(T

The e#porter might e#port the goods based on a E,8TAET with the importer. In

such a case" there is no surety to the e#porter that the importer will make the

payment. The importer might reect the goods on receipt and deny and payment to

the e#porter. Therefore" the contract is an unsafe document. There are two types of

contracts.

(A& C(ash a+ainst &)*umentsD>

The documents are sent to the issuing bank. The issuing bank informs the importer

that his documents have arrived. The importer deposits the amount of the contract

with the bank and takes possession of his documents have arrived. The issuing bank

then makes the payment to the e#porters bank.

&A C&)*uments A**e3tan*eD>

+rawee takes documents and possession from the issuing bank and signs a bill of

e#change in return giving his acceptance for payment on a specific maturity date.

8ow" if he does not make the payment to the issuing bank no payment is made to

the e#porter and there is no liability on either bank.

749 A'TI(@L@RE &EPART$ENT

Banks Agriculture division deals with the agriculture advances. Bank provides the

Agriculture Advances in order to enhance and support the agriculture sector of the

country. Agriculture advances are of the two types. The types are as follows

Carm Eredit




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8on Carm Eredit

arm (reditThese are the credits provided by the BAL for the purchases of inputs for

development of agriculture sector. Collowing are two main sub classes of Carm

Eredit.

(roduction Cinance

+evelopment Cinance

Pr)du*ti)n inan*e

These are short-term loans. These loans are provided to farmers for purchases of

different type of input" for e#ample" *eeds" Certili&ers" (esticides. These loans are

provided against personal guarantees or mortgage of land as a security. ate of

profit for these loans is 01.

&evel)3ment inan*e

These are medium or long term loans. These loans are provided for the developmentof agriculture sector. !ain purpose of these loans is to purchase instrument Tractors

Implements 6Trolley" Thresher etc./

Installation of tube-well

(lanting of garden

The loans are disbursed against security of land 6mortgage/ or any other security

acceptable to bank. The rate of profit for these loans is 1 to


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Collowing are the different types of small industries for which loans are provided to

improve the economy of the country

Cish Carm

Eattle Carm

(oultry Carm

Dairy Farm

Se*urities>

Bankers lend money in the form clean advances against promissory note as well as

secured advances against tangible and marketable. These reports are only valid

!EB normally allow the advances to the customers against the following types ofsecurities

Bankers Lien

!ortgage

(ledges

5ypothecation

Bankers Lien

This type of security is accepted in case of advances against share" life policies"

bonds" ornaments and fi#ed deposits etc. It is type of most li%uid security.

$)rt+a+es

There are two types of !ortgage. These are following

Legal !ortgage

$%uitable !ortgage

Legal mortgage and e%uitable mortgage are accepted in case of immovable

properties like land" building and machinery etc.

Pled+e

This type of security is accepted in case of stocks or raw materials. In a

pledge" the borrower has not right to sell the stocks with the permission of

bank.




50/80


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The Bank Alfalah limited credit is e#tended on the basis of these rules and

regulations. These regulations tells the term and conditions under which you can

e#tend loans to the borrower and to what e#tent.

Eredit Cacilities

At BAL there are two types of credit facilities

Cunded facilities

8on funded facilities

unded fa*ilities

These are the facilities in which there is direct involvement of cash fund. Collowing

are the funded facilities.

Eurrent finance KEC)

Term finance KTC)

Cinance against foreign bills KCACB)

Cinance against packing and credit KCA(E)

Cinance against imported merchandise KCI!)

Cinance against trust receipt KCAT)

N)n unded fa*ilities

The facilities where there is no direct involvement of banks fund. There are two types

of unfunded credit line facility" which are as follows

Letter of Eredit 6LE/

Letter of =uarantee 6L=/

74" Human Res)ur*e &e3artment

Bank Alfalah not only is one of the fastest growing bank in (akistan" that provides its

customers with a number of financial services" but is also a great employer of human

resources" that provides its employees with a conducive environment that not only is

challenging but also helps them in applying and gaining knowledge. But in the period

200 to 200; the no of employees decrease due to crisis in the country.

Bat*h Trainees

All employees selected through this process" have to first complete a probationperiod before given a complete status of a Bank Alfalah employee.




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i+ure %> Pr)*ess f)r Em3l)yin+ resh (andidates

S)ur*e> Bank Alfalah 1ebsite

E23erien*ed Pr)fessi)nals

Based on re%uirements of e#perienced staff" Bank Alfalah also recruits talent

from the marketplace. Bank Alfalah offers competitive salary O benefits to worthy

professionals at all levels who wish to oin hands with Bank Alfalah. The procedure

for selecting such professionals is as follows

i+ure 7> Pr)*edure f)r Em3l)yin+ E23erien*ed Pr)fessi)nals

S)ur*e> Bank Alfalah 1ebsite

Benefits 3r)vided by Bank Alfalah *ome of the monetary and non monetary benefits that Bank Alfalah provides

to its employees are as follows




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Attractive *alary (ackage

$mployee (rovident Cund

=ratuity Cund

!edical Insurance

Bonuses

Life Insurance

(romotions

Parious types of *taff Loans

Assistance in (ursuing 5igher $ducation

Eash ewards on completing IB( +iploma

(ha3ter N) 8

Internshi3 E23erien*e




55/80


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5stI worked with trade officer !r. 8adeem *hah. I learned how to fill $-Corm that is

used for e#port of goods. Fhat are the documents re%uired for $-Corm. This form is

issued by the bank to factories for e#port purposes. This form contains three leaf

original for owner" +uplicate for bank" Triplicate for *tate bank of (akistan. The

documents attached with form are commercial invoice" packaging list" good

declared" bill of lading etc

The amount as well as weight" BOL number is written carefully on the form.

In this +epartment I also learned the procedure of foreign inward TT 4 outward TT.

I leaned the detail of transaction in these case perform by the Branch" 5ead office 4

Coreign bank.

Bank also provides the facility of money gram international money transfer. I learned

what the re%uirements to fill the money gram.

%nd I worked in account opening +epartment with !.Rubair. I learned how to fill

current and saving deposit slips" how to fill account opening form" JQE 6know your

customers/ forms" 5ow to update accounts on daily basis" what are the re%uirements

of account opening what type of document are re%uired. Fhat types of account Bank

Alflah is offering to the customers. I have learnt the procedure that an account

opening officer has to follow in order to open and maintain an account. *ome of the

maor deposit account opened by bank Alflah was as follows

Alflah $ducation

(rofit 4 loss saving Account

Basic Banking Account

oyal (rofit Account

Jifayat Account

!ahana Amdan Account

Eurrent Account

If customer wants to close the account then he has to given written application to

head of the ,peration +epartment. After verifies the signature the account will be

close. The Eharges fee is s.>0.

I also learned the procedure of issuance of Ehe%ue book. Fhen the Ehe%ue book is

issued then the signature of customer is taken on the Ehe%ue book issuance




57/80


register. *tock of Ehe%ue books are balanced at the end of each day and kept under

safe custody.

7rdI worked with !r. !a%sood in agriculture department. 5ere I learnt about different

types of loans for agriculture. Loans are sanctioned only to farmers who are the

owner of land. The pass book issued to the farmer. it contains red and green copy

which is filled by Tahsildar. In this book all the detail such as area" productive unit"

location" cultivate or not.

The loan is also given on the behalf of security such as commercial property" +*C 4

8E.

I learnt how to sanction different types of loans" what are the procedures" how to

manage risk" how to check creditability of customers" how to determine interest rate.

The installments are on semi annually and %uarterly basis.

8thI worked with account officer !r. Aamir in Account +epartment. I have learned all

the transactions in different departments are forwarded to account department. *ince

all vouchers from different departments are forwarded to current department so this

department tallies all such transactions with current department after maintaining theledger of each department. I have learned how to make the budget which depends

on the forecasting of person. +aily" weekly" Huarterly" *emi annually" annually

reports are made that describes the proper analysis of branch. BAL prepares its

reconciliation statements. All the debit and credit entries of the main office account

are recorded in the statement. Then it is checked with physical vouchers and if there

is any problem" they reconcile it.

Account department maintains the record of fi#ed assets. The accounts department

calculates the depreciation the assets by using straight line method

+epreciation is charged at the following rates

Building 2.>1

Curniture 01

Earpets 4 curtains 2>1

$%uipment 201

84% 1)rkin+ E23erien*e Im3a*t )n *areer




58/80


!y internship e#perience has given me a realistic preview of my field of education.

8ow I feel that I m better prepared to enter the world of professional work. I have

come to know and have been appreciated by a number of professionals who arelending their services to the banking sector for more then a decade. I feel honored

that I have worked such e#perienced professionals.

The overall e#perience of my internship was very good. I learned the sense of

responsibility in its literal meaning. I am now capable of dealing with different sort of

customers" and how to be patient while doing so. Besides this I also gain knowledge

about banking which I previously lacked and many more products being offered by

the bank. 8o doubt this internship gave me the e#perience" which would boos my

confidence to work in future.

847 &uties and Res3)nsibilities

!y duties and responsibilities are as follows

!aintain a good relationship with the bank senior staff.

Ereate a good and effective learning environment in the bank"

$%ually deal all the type of people belonging to any type any gender" race"

religion etc.

To help the senior staff during working hours to reduce his work load.

Fhenever a customer comes to open their account" they have to fill a

relationship with the bank. As part of my duty I had to fill these forms and then

use the appropriate bank stamps to complete these forms.

!aintain the secret information of customer accounts.

(rovide complete and accurate information to customers about different type

of accounts.

(rovide information to customers about their bank balance and issue bank

statement to those customers who demand this.

Earefully fill $-Corm and check all the figures carefully.

Cill the $-form after carefully checking the weight" BOL number.

+eal with customer in the absence of staff




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5ow to sit with professional" how to talk and how to work with other also

learning for me.

I learnt how to present the products to customers and how to e#plain the

characteristic of the product. I also learnt how to maintain good relationship with the owners of different

factories.

849 Pr)blems

Cor any ob skills and abilities are ac%uired to perform the ob but in case to perform

professional task then man should perfect and have a lot of skills to perform any type

of task. But during the internship I faced some problems

There is no proper way to give proper training to internee. Lack of skill with dealing with different type of customers

+ifficult to perform work in e#cel because maor work is done on e#cel.

,perate different type of computer program especially in software.

Ac%uired the skill of communication 4 other professional skill.

Lack of Jnowledge how to face problems encountered.

Internee is shifted to the department where the work load is greater.

They dont help t great e#tent as such for employees.

+uration of time work is too long that is hurdle doing efficient work in proper

way.

8o proper procedure for transferring in the department.




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(HAPTER NO 9

E2ternal / Internal analysis

945 S1OT Analysis

*F,T is stands for strengths" weaknesses" opportunities and threats. *F,T

analysis is a careful evaluation of an organi&ations internal strengths and

weaknesses as well as its environmental opportunities and threats. In *F,T

analysis the best strategies accomplish an organi&ations mission by e#ploiting an

organi&ations opportunities and strengths while neutrali&ing its threats and avoiding

its weakness. +uring my internship I also observe these factors of bank and made a

conclusion which is as follows

94545 Stren+ths




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Being the private organi&ation its main aim is not to earn profit but also to

satisfy its customers and slogan of BAL is also the representative of this

purpose as Bank Alfalah KThe Earing Bank).

Bank has AA 6+ouble A/ and A 6A one plus/ Eredit ating for long term andshort term loans respectively.

!ain source of profit for any financial institution is public saving which only

comes from public confidence and BAL is getting this confidence which is one

of the main strengths of bank

Bank Alfalah is also getting fame in the market due to its name KALCALA5)

which is leaving the Islamic and favorable impact on the minds of public.

BAL is providing the facility of !oney =ram to its entire people who are itscustomer or not and through this service it has got the leadership in !oney

=ram because any other bank is not offering this service.

Fith in very short period it has got a superb accomplishment which shows the

competency of top management.

(ersonnel of Alfalah are well trained and highly skilled.

Criendly 4 5ealthy Forking $nvironment.

Coreign Trade is the focus of bank. It has become an ideal bank for theimporters and e#porters

Bank Alfalah has a wide network of branches at the ideal locations" catering

the financial needs of its clients.

The management of the bank is very much concerned with the development

and improvement of the working environment. The bank has state of the art

and purpose built branches where all the modern technologies are provided to

get the efficiency of the workforce and the customer satisfaction.

9454% 1eaknesses

Beside all these strengths I also noted some weaknesses in the operations of bank

Alfalah which are described below

Bank Alfalah is charging online charges for transfer of money but some other

banks not charge online transfer charges.




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!aority of the workforce consists of young professional" they lack in their

e#perience. And sometimes lack of e#perience becomes a hurdle while

serving to the customers. It is the point where they feel difficulty while

competing with the other banks. It was observed that at present the motivation level of the employees is not

very much.

8o ob rotation for employees.

The increased workload has resulted in the reduced efficiency of the

employees. Because now the time re%uired for completing the tasks for a

single customer has been increased. As a result the environment of the

branch has become very messy. BAL is that it is not offering the loan facility to newly established businesses

because its the BAL policy that it will loan only to that people who are running

their businesses from 3 years.

BALs lending procedure is %uite complicated that some people hesitate to

come as they are re%uiring a huge file of documents.

Bank Alfalah is not offering any credit facility for students.

BAL is not offering the online facility to account holders having photo account.

Pery little advertisement on media.

Low salary package as compared to other banks.

94547 O33)rtunities

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

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

Bank Alfalah is spreading its network outside the boundaries of (akistan and

it has more opportunities to e#tend this network as *tate Bank of (akistan has

prescribed new policies in the prudential regulations.




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In addition to e#cellent routine banking" it has earned a good name by offering

special products like car" home and credit cards facility. *o the penetration of

these products could enhance market shares.

There is a very good growth trend in the Islamic banking in the country and inthe world as well. BAL has the advantage of having Islamic Banking network

and the growth in this particular field can be very fruitful for the bank" bank

has an opportunity to introduce new products and services in Islamic banking.

,n the ob training 4 coaching sessions can be conducted.

Fork sharing activities should be started so that a person who is working

continuously for 0 hours can get rela#.

Appraisal should be conducted fre%uently so that employees get motivated 4do their work as a loyal employee

!ove towards technological changes such as $-banking

94548 Threats

Threats are the negative trends in e#ternal environmental factors. As on one side

environment provides opportunities to one organi&ation" on the other hand it also hasto face some threats. Bank Alfalah also has to face this situation.

The conventional banks those having high growth rate and high market share

are always being a threat

There is an average not low turnover rate" mainly because of low incentives

as compared to the other banks.

Large business parties have fewer attractions in being a client of BAL-IB+"

mainly because of e#cessive amount of documentation ,ther foreign financial institutions like Eity Bank" *tandard Eharted etc also

having strong banking policies and theres a chance that people might move

toward these financial institutions to secure their investments" transactions

and related services.

Cor last seven year there is political stability in (akistan but now again a new

layer of political instability arises which effects almost all industries including

Banks.




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*tability and law and order situation under the political regime is very important

for the economy as a whole. The present state of the government in (akistan is

directly affecting the policies of banks. Eontinuous political changes have disrupted

the policies and obectives at each time every political party comes with its own

policies.

94%4% E*)n)mi* Indi*at)rs

The economy of any country directly influences any financial organi&ation. $conomic

indicators include =ross +omestic (roduct 6=+(/" inflation" balance of payment"

debt of the government.

(akistans economy has witnessed the most challenging period after posting si#

consecutive years of healthy economic growth. 5owever" the strong fundamentals

were compromised to prevailing global crises thats shacked the confidence of global

investors. Cinancial crises that prevails all over the world effects the economy of

(akistan. The consistent increases in inflation rate" increase in bop" reduction in

foreign reserve effects the banking environment in (akistan.

Also the load shading is another factor that affects the (akistan economy badly. This

not the end of the story after this (akistan economy face lot of problems like bomb

attacks in (akistan no electricity and the unstable government" due to this the

investor are not invest in the (akistan and the e#isting business men are loosing

their business unit due to the loss.

+ue to this poor economy" businesses are reaping low profits and stock market is in

great danger. (akistans foreign debts are rising day by day so such a situation is a

big challenge for banking institution to survive. The financial crisis in (akistan has

made the management of BACL tensed to work in such an environment.

94%47 S)*i) (ultural Envir)nment

(akistan is situated at very important geographically location and it has a diverse

culture. Islam is the religion of maority of the population and Islam has deep and

ever lasting influences upon the culture of the people of the area. *o" the life style of

people and attitudes of consumers is favorable for Islamic banking as people are

religious and they want to deal in Islamic finances. (akistani people have a respect




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for their religious and cultural celebrations. BAL Islamic banking is taking an

advantage of this socio-cultural environment of (akistan.

About


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products. *ame is the case with banking companies. There is large number of

foreign and local banks working in the country and it has been noticed that they are

emphasi&ing much on their marketing strategies. In this scenario" the key for a bank

to succeed and attract its customers is ade%uate promotion of its products 4services.

BACL for the promotion of its new and e#isting products invest heavily" it advertises

its product through

Ele*tr)ni* media i4e4 televisi)n

Print media i4e4 ne:s3a3er

Billb)ards

Business ma+a6ines

1ebsite

S3)ns)rshi3

94745 Ele*tr)ni*

The maor way in which todays organi&ations promote its products and services is

through television" not only because its economical but also because the visual and

audio aids help in promoting its product.

Television ads for Bank Alfalah mainly try to emphasis the 'The Earing Bank"

message in its advertisements" by showing how its services can help you with the

different financial problems that you face in your every day life. Cor e#ample" an

advertisement showed how Bank Alfalah Eredit Eards helped a couple when they

had no cash left during a shopping trip or how a father happily shows his family a

new car that he had financed from Bank Alfalah.

Another maor way in which Bank Alfalah advertises its products electronically is

through its website" which is designed in an effective manner with detailed

information" so that visitors can effectively know about the different services that the

bank provides.

9474% Print




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(rint advertisements are another maor way in which Bank Alfalah advertises its

product to the masses. (rint media advertisements are mainly printed in maor

$nglish and 7rdu newspapers across (akistan.

The messages of these advertisements are mainly of new financial services that the

bank may introduce over time.

94747 S3)ns)rshi3s

Bank Alfalah also gives a significant consideration not only to its product publicity but

also to the creation of public relations. Bank has proves its public goodwill by

contributing money and time to public service and activities. Bank Alfalah has been

sponsoring different sporting tournament" especially cricket which is the most

popular sports activity of (akistanis and is watched by millions whenever there is a

tournament featuring the (akistani cricket team and is thus a great way to advertise

their products. *ome of the tournaments that Bank Alfalah has sponsored over the

year are as follows

*eries *ponsored By Bank Alfalah

*eries Qear

(akistan Ps $ngland 200>

(akistan Ps Fest Indies 200?

(akistan P* *outh Africa 200?

#!!% 1 '+#)%(% 2 *(*+##' 1 (,*#),*#'

94 RET@RN ON E@IT-

s.6000/

eturn on e%uity describes the shareholder earned on their investment in any firm. it

also describe the profitability of the company. eturn on e%uity in 200; reaches in

lowest position as compared to previous year.



Rs.!!!" #!!$ #!!%

Total Lia&ilities

Total Assets

))$))'

%$!(!!''

*$+)!#'

+%$$!()+

!.$+0 !.$'0

Rs.!!!" #!!$ #!!%

8.(.A.T 00

Share hol3er euity

%$(!' 4 *!!

*$++#)$#

*!*!*4*!!

*'$(#(

+.)0 $.)0


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;4 RET@RN ON ASSETS

eturn on assets describes how the management utili&ing the assets effectively to

get ma#imum profit. it describes decreasing trend in 200; as compared to 200


74/80


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(HAPTER NO ;

()n*lusi)n and Re*)mmendati)ns

()n*lusi)n

At present there is no such organi&ation in the world that is free from problem and

challenges. $very concern has to strive and struggle a lot to be more profitable and

to get more competitive edge.

It has been eighteen years since the establishment of Bank Alfalah" and since its

establishment it has aimed to become the leading bank of (akistan by that provides

outstanding services to its customers. The bank has seen phenomenal growth in the

past few years by opening more branches in the country" increasing the deposit

base" while also increasing the assets and profits of the bank. The services that

Bank Alfalah provides have a great market penetration not only because of their

features but also the profit and markup rates that they charge. Th

arslan javed final project

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