bank alflah report
DESCRIPTION
Interenship report on Bank AlflahTRANSCRIPT
CHAPTER NO 1
INTRODUCTION
1.1: Background Information:
Bank Alfalah limited (BAL) is a private bank in Pakistan owned by the Abu Dubai
Group. Bank Alfalah was incorporated on June 21, 1997 as a public limited
company under the companies ordinance 1984. Bank Alfalah is registered at both
Karachi and Lahore stock exchange with a ticker name of “BAFL”. Its banking
operations commenced from November 1, 1997. The bank is engaged in commercial
banking and related services as defined in banking companies ordinance, 1962,
with the registered office at B.A building I.I. chundigar road Karachi.
This was a further strengthened with a partnership of Abu Dubai Group which
owns 70 % of Bank Alfalah shares. This allowed the bank to invest more in
revolutionary technology to increase its range of products and services.
Since its inception, as new identity of Habib Credit and Exchange Bank Limited
(H.C.E.B.) after the privatization in 1997, the management of the bank started
implementing strategies & policies to crave a distinct position of bank in market
place.
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VISION AND MISSION
1.2:Vision
To be the premier organization operating locally & internationality that provides
the complete range of financial services to all segments under one roof.
1.3:Mission
To develop & deliver the most innovative products, manage customer experience,
deliver quality services that contributes to brand strength, establishes a competitive
advantage and enhance profitability, thus providing value to the stake holders of
the bank.
1.2: Board of Directors:
CEO:
Atif Bajwa
Directors:
H.E. sheikh Hamdan Bin Mubarak Al Nahayan
Mr. Mohammad Saleem Akhter
Mr. Abdullah Nasser Hawalileel Al-Mansoori
Mr. Abdullah Khalil Al Mutawa
Mr. Ikram ul Majeed Sehgal
Mr. Khalid Mana Saeed Al Otaiba
Mr. Nadeem Iqbal Sheikh
Central Management Committee:
Mr. Bahauddin Khan Member
Mr. A. Wahid Dada Member
Mr. Faisal Farooq Khan Member
Mr. Khurram Hussain Member
Ms. Mehreen Ahmed Member
Mr. Mirza Zafar Baig Member
Mr. Rizwan Ata Member
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Mr. Saad ur Rahman Khan Member
Mr. Aly Mustansir Member
Mr. Suhail Yaqub Khan Member
Mr. Syed Ali Sultan
Chief Operating Officer
Mr. Bahauddin Khan
Company Secretary
Mr. Mian Ejaz Ahmad
Chief Financial Officer
Mr. Mirza Zafar Baig
3
CHAPTER NO 2
ORGANIZATIONAL STRUCTURE
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ChairmanChairman
Board of DirectorsBoard of Directors
Chief Executive OfficerChief Executive Officer
Executive CommitteeExecutive Committee
Area Manager NorthArea Manager North Area Manager SouthArea Manager South
Executive InchargesExecutive Incharges
2.1: Branch Hierarchy
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Branch Manager
Operation Manager
Credit Manager
Import/ Export
Manager
Account Opening
Remittances Clearing Cash Accounts
CHAPTER NO 3
PRODUCT AND SERVICES
3.1: Product & Services Offered by Bank Alfalah
Branch
The following are product & services being provided by Bank Alfalah
currently.
Branch Banking e.g Lockers, Remittances, Deposits, Foreign Trades
Consumer Banking e.g Home Loans, Auto Loans, Credit Cards, Debit Cards
Corporate Banking e.g Trade Finance, Short/ Long Term Finance, Structured
Finance
Electronic banking e.g Online Banking, ATM’s, Telephone Banking
Treasury & Investment e.g Government Securities, Investments, Forex Market
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3.2: Business Performance
Performance in 2010:
Total
Deposit Of
2010
Total
Advances
Of 2010
Total profit
of 2010
Branch Profit
Saving Rate
Increases 2%
Total lockers
Opened in 2010
6000.00(M) 1700.00(M) 90.00(M)
From
5% to 8% 35
Branch Accounts Performance in 2010
Total No. OF current
A/C Opened In 2010
Total No. Of Pls
A/C Opened In
2010
PLS A/C Deposit
Increases
20%
Current A/C
Deposits Increases
47 %
1600 400From
1200.00(M)
TO
1320.00(M)
From
1600.00(M)
TO
1980.00(M)
750 600
From
1600.00(M)
TO
From
1200.00(M)
TO
1380.00(M)
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1920.00(M)
Branch Term Deposit Increases In 2010:
TERM DEPOSIT PROFIT INCREASES FOR
04 (Months) 08 (Months) 12 (Months)
.25 (paisa)
From
8.50
To
8.75 Rs.
.50 (paisa)
From
8.50
To
9.00 Rs.
.75 (paisa)
From
8.50
To
9.25 Rs.
Branch performance in 2011:
Total Deposit Total
Advances Of
Total profit
of 2011
Branch Profit
Saving Rate
Total
lockers
8
Of 2011 2011 Increases 5% Opened in
2011
8000.00(M) 2200.00(M) 150.00(M)
From
6% to 11% 54
Branch Accounts Performance in 2011:
Total No. OF
current A/C
Opened In 2011
Total No. Of Pls
A/C Opened In
2011
PLS A/C
Deposit
Increases
25%
Current A/C
Deposits Increases
50 %
2200 700From
1320.00(M)
TO
1800.00(M)
From
1980.00(M)
TO
2500.00(M)
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Branch Term Deposit Increases In 2011:
TERM DEPOSIT PROFIT INCREASES FOR
04 (Months) 08 (Months) 12 (Months)
.30 (paisa)
From
8.75
To
9.05 Rs.
.60 (paisa)
From
9.00
To
9.60 Rs.
.90 (paisa)
From
9.25
To
10.15 Rs.
Branch performance in 2012:
Total Deposit
Of 2012
Total
Advances Of
2012
Total profit
of 2012
Branch Profit
Saving Rate
Increases 11%
Total
lockers
Opened in
2012
15000.00(M) 3500.00(M) 200.00(M)
From
11% to 22% 81
Branch Accounts Performance in 2012:
10
Total No. OF
current A/C
Opened In 2012
Total No. Of Pls
A/C Opened In
2012
PLS A/C
Deposit
Increases
37%
Current A/C
Deposits Increases
73 %
3000 1100From
18000.00(M)
TO
2100.00(M)
From
2500.00(M)
TO
4700.00(M)
Branch Term Deposit Increases In 2012:
TERM DEPOSIT PROFIT INCREASES FOR
04 (Months) 08 (Months) 12 (Months)
.32 (paisa)
From
9.05 To
9.37 Rs.
.64 (paisa)
From
9.60 To
10.24 Rs.
.97 (paisa)
From
10.15 To
11.12 Rs.
3.3: Branch Level Analysis
In branch level analysis there is include that how much departments are exist in the
branch and how they perform there duties and what kind of products and services offered
by the branch.
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3.4: DEPARTMENTS
3.5: OPERATION DEPARTMENT
3.5.1: Account Opening:
The first part establishes the preference regarding the type of account to be
maintained. The various choices offered in this regard are:
Types of Accounts
Current Account
Saving/ PLS Account
Royal Profit Account
Term Deposit Account
Basic Banking Account
Current Account
The current account is the most common account and the most preferred amongst
business concerns. There is no restriction on the amount of withdrawal. Current account
enables the client to do cash transactions in a more efficient manner.
Features:-
Current Accounts can be opened in the BAL with the sum not less than
Rs.5000/-
No Profit
No deduction of Zakat
Account close charges Rs.150
Service charges for maintaining minimum balance Rs.100
Online Charges Rs.100
Saving / PLS Account:
In Pakistan (PLS) saving account was introduced in January 1982. Individuals who wish
to invest their money in order to get profit maintain this account.
Features:-
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The minimum balance requirement for opening the account is Rs.500
There can be profit or loss on the investment of the Customer’s funds deposited
with the bank and this amount shall be acceptable to the Customer. The profit is
paid half yearly.
Deduction of Zakat
With holding tax on profit @ 10%
No Service Charges to close the account
Service Charges for maintaining minimum Balance Rs.100
Online Charges Rs.150
Royal Profit Account:
Royal Profit is also opened in BAL and it is not the most common account. Royal profit
has some features.
Features:
The minimum balance requirement for opening the account is Rs.50,000.
Profit on Monthly Basis
Higher the amount higher the profit
Deduction of Zakat and Withholding Tax
No Service Charges on minimum balance requirement but no profit for that
month.
No Charges to close to Account
Term Deposit Account:
A term deposit is a deposit that is made of a certain period of time. At the end of specific
period the customer is allowed to with draw the principal amount.
Features:-
Fixed Profit
The longer the period for which the amount is kept higher is rate of interest.
Term Deposit usually for the period of three months, six months, One year, and
five years.
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Deduction of Zakat and withholding Tax @ 10%.
Basic Banking Account:
Basic Banking Account is opened is BAL. The minimum amount deposit in this account
is very small as compared to other accounts.
Features:-
Minimum Deposit amount is Rs. 1000
1st two transactions is free of cost
Bank can close the Account after one year if balance is zero
Requirements for Account Opening:
First of all I learned about the requirements of account opening which are
CNIC
Source of income (salary slip etc)
NTN certificate (optional)
Company letterhead or authorization (as required)
The basic requirement to open an account for a partnership
Partnership Deed
Partners CNIC
Company Letterhead
NTN certificate (optional)
The basic requirement to open an account for companies:
Memorandum of Association
Article of Association
Directors CNIC
Company Letterhead
NTN certificate (optional)
3.5.2: Remittance:
Remittance department deals with the local remittances and foreign remittances.
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Functions:
It deals with the remittances or fund transfers that occur within the country
between banks or individual people and organizations. The fund transfer was
identified by me simply as inflow and outflow of the money.
It deals with the provision and receiving of pay orders and demand drafts and TTs
etc.
Also all types of utility bill payments are entertained by this department.
It deals with the transfer of funds which are in a foreign currency form such as US
dollars, Euros etc
This fund transfer may be at international level between the banks and individuals
and banks or between the individuals and organizations etc but the currency used
is other than PKR.
Pay Order:
The instrument is used for transfer of funds within the premises of a city. Using the cash
in hand, if pay order is up to the limit of Rs. 200,000, the bank charges are Rs. 232. If it is
more than Rs. 200000, bank charges 0.1% of the pay order money. If using the bank
Account (cheque), the customer is charged Rs. 58 when the pay order money is below Rs.
100,000. For the pay order above this amount, charges are increased
Demand Draft:
The instrument is used to transfer the funds from one city to other within a country. Bank
charges are same as for the pay order mentioned above.
TT (Telegraphic Transfer):
There are four forms of telegraphic transfer which include the transfer of funds (from
other countries also such as UAE etc) using internet. These are:
Cash payment is made to the customer.
The account of the individual customer is credited.
Funds are transferred to the some other bank.
Funds are transferred to the account of an organization (a company).
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The important thing about the telegraphic transfer is bank do not charge any
commission on such transfer.
3.5.3: Lockers:
Bank Alfalah has given its customers the facility of lockers, so that they can secure
their important things in the lockers, for example gold, important documents or
anything which a person wants to keep safely. BAFL lockers are available in three
different sizes large, medium, and small on a yearly fee. There is no need to open
account to get the facility of lockers.
Serial
number
Locker size Annual locker rent
(current)
Maximum loss
coverage/Limit
1: Small Rs. 1500/- Rs. 300,000
2: Medium Rs. 2000/- Rs. 400,000
3: Large Rs. 3000/- Rs. 500,000
3.5.4: Clearing / Collection
. There are two types of clearing:
Inward clearing
Outward clearing
Inward Clearing
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The process where instruments drawn payable on Bank Alfalah Abbottabad City Branch
are deposited by the holder with other banks/ branch and presented for payment.
Outward Clearing
The process where the instrument drawn payable on some other bank / branches is
deposited for collection with Bank Alfalah Abbottabad City Branch.
Clearing Cheques:
This department receives the cheques and other negotiable instruments drawn on local
branches of other banks. NIFT has a clearing house, in which
Cheques and other negotiable instruments are brought by each local bank
representative and the claims of each bank on other is offset and a settlement is made by
the payment of difference. Clearing system is helpful for both the customers and bank in
saving money, time and labor.
Procedure:
The cheques and drafts which come to branch from different banks. They entered into the
register. After this process the balance with total drafts and total amount are given to the
representative in shape of clearing. BAFL works under the rules and a regulation set by
the State Bank of Pakistan (SBP) and BAFL has an account with SBP. The main work of
the clearinghouse of SBP (NIFT) to collect inward and outward cheques and maintain the
record as branches. The clerk of forwarding branch prepares the schedule and vouchers of
all the clearing cheques, which he receives by the clerk on that day and sends these
cheques to the checking officer. Checking officer passes these cheques and vouchers by
his signatures, endorsement stamp and branch special crossing stamp. Clerk posts the
contra entries of these vouchers in the clearing register. Representatives’ banks collect
these cheques. Next day at 10:00 A.M. representatives of all local banks and foreign
banks exchange their cheques, which are drawn on their banks.The clearinghouse
debits/credits the payee/receipt branch with the total amount of the cheques paid on their
behalf. The settlement of book entries e.g., if BAFL is to give Rs. 4 Million to MCB and
MCB has to give Rs.3 million to BAFL then BAFL will draw a cheque of 1 Million in
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favor of MCB. SBP will debit this amount from BAFL count & credit If MCB account.
This way mutual cross debiting and crediting in the books of SBP settle the banks
account.
Collection Cheques / OBC
The collection cheques/OBCs are the cheques, which we have cleared for our customers
when some of our customers receive the cheque that is of some other city. These types of
cheques are known as collection cheques or the other name we gave them is OBC
3.6: CREDIT DEPARTMENT
The Credit department of Bank Alfalah works with both SME’s and corporate clients.
There are two major categories of credit line facilities that Bank Alfalah provide to its
customer.
Funded Credit line facility
Unfunded Credit line facility
3.6.1: Funded Credit Line Facility
There are three major products that come under the credit line facility.
Current Finance
Karobar Finance
Milkiat Finance
Current Finance
Current Finance is a short term facility mainly provided to companies. It provides the
customers with the funds over a period of time, mainly one year. The main advantage of
the current finance facility is that markup is only charged on the utilized part of the
finance facility and is mainly used by companies for their working capital management.
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The bank to provide this facility keeps a security; mainly a mortgaged property and can
provide 60% of its assessed value as funds.
Karobar Finance
Alfalah Karobar Finance is another short term facility that is only provided to individuals
and sole proprietors. This facility also has one year validity with markup charged on the
amount used.
This facility again provides individuals to maintain their working capital management
and is again given to individuals for a security. The conditions for current finance and
karobar finance are same with one big difference, which is that in karobar finance, the
individual has to clear all his balance in his account, once in a year.
Milkiat Finance
Alfalah Milkiat Finance is a long term facility that is provided to SMEs’ and there are
four main types of facilities provided:
Acquisition of rented commercial/industrial property
Construction on an owned commercial/industrial plot
Purchase of a commercial/industrial property
Renovation of owned commercial property
Some of the features of Milkiat finance are as follows:
Tenure of 2-12 years except for renovation, which is for 2-4 years
Mark up of (KIBOR+4%)
Financing from Rs 0.5 million to Rs 20 million, renovation financing up to 3.5
million
Eligibility age should be less than 65, with 3 years of existing business.
3.6.2: Un Funded Credit line Facility
There are two types of unfunded credit line facility, which are as follows:
Letter of Credit (LC)
Letter of Guarantee (LG)
Letter Of Credit (LC)
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A letter of credit is a written undertaking by a bank (issuing bank) given at the request
and accordance of a buyer (the applicant) to the seller (the beneficiary) to a fact payment
up to a stated amount of money within prescribed time limit provided that the terms and
conditions are complied with. Letter of Credits issued in the international trade business.
Letter Of Guarantee (LG)
Letter of guarantees is a guarantee that the bank gives to an organization on behalf of the
bank. Letter of Guarantee’s are mainly used when a tender for a specific job is filled by a
customer.
3.7: TRADE FINANCE DEPARTMENT:
Trade finance involves the import & export activities. This department provides
protection to the rights of importer and exporter.
Function
The function of this department to serve as a bridge between the importer and
exporter in order to settle a transactions.
Trade Finance department handle two activities.
Import
Export
3.7.1: Import
Import Department of BAL deals with the import of merchandise. Import can be defined
as:
“The bringing of commodities into Pakistan from outside by sea, land or air.”
Requirements of the importer
These requirement / document must be fulfilled from importer before doing the import:-
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NTN
Sale Registration Certificate
Membership from Chamber Of Commerce
Methods of Doing Import
Letter of Credit
Contract
Advance Payment
Open Account
Letter Of Credit
A Letter Of Credit is a financial instrument issued by a bank on behalf of the registered
customers It gives surety to the Exporter that his amount is safe.
“The letter of credit is a written instrument issued by the buyer’s bank authorizing the
seller to draw in accordance with certain terms and conditions.”
Parties Involved In A Letter Of Credit:-
There are four basic parties involved
1. Importer
2. Issuing Bank
3. Exporter (Beneficiary)
4. Advising Bank
Contract
These are the contracts on which there is no liability of the bank. Bank charge
commission against this services.
Main Reason of Bank Involvement
Bank involve in contract for that purpose:
The record of this foreign exchange entered in State Bank Of Pakistan (SBP) and this
record shows that how many Foreign Exchange go outside Pakistan that is helpful to
count the total imports of Pakistan.
Advance Payment
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In mean some part of payment is made before shipment and remaining is made after
shipment. Advance Payment is through TT (Telegraphic Transfer). But State Bank Of
Pakistan allows limit of Rs.10, 000 it means that Advance Payment does not exceeds
Rs.10, 000.
In case of Advance Payment the importer show the document to Bank Al-Falah Limited
after four months as a proof of import.
Open Account
Open Account is reciprocal of Advance Payment. In this case importer first receives the
shipment and then makes the payment. And there is no limit involved in open Account.
Importer makes payment of any amount.
In open Account there is no as such restrictions from State Bank Of Pakistan (SBP)
importer simply show the document and make payment after one year means no
restriction of time is involved.
Import Process
An L/C form is filled.
The customer prepares insurance document from any insurance company.
Filled the SBP Application form that is called Annexure B.
Performa Invoice is Prepared.
Undertaking from the customer on letter Head.
Prepare four copies of Form I (Form I explain the detail of import that are helpful
for the SBP.
Approval From Area Office
Prepare voucher and make entries in the system.
Preparation of L/C
These forms are then sent to the Swift Centre of BAL.
3.7.2: Export
Exports are major sources of earning foreign exchange and play an important role in the
economic development of the country. It helps to utilize excess resources of the country.
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“Exports mean selling goods to another country.”
Exports of all eligible commodities through authorized banking channels are admissible
under exchange control regulation.
Requirement for the Exporter:-
These requirement / document must be fulfilled from exporter before doing the export:-
NTN
Sale Registration Certificate
Membership from Chamber Of Commerce
As well as the market stability, reputation, financial position of the exporter is
first of all checked.
Documents to Be Attached For Export
Commercial Invoice
Bill of lading
Packing list
Total quantity
Net weight/carton
Gross weight/carton
Total net weight/carton
Total gross weight
Bill of exchange (original or draft)
E-form: Initial document on which total export proceeding is based. In this form,
all the conditions are given, which are necessary for exports.
Letter of credit: It is written agreement between importer and exporter.
Certificate of Origin (Form –A)
Insurance (if any)
Procedure
Receipt of Letter Of Credit:
Issuance of E-Forms that is verified by an authorized signatory. There are four
copies of it.
Copies of E-Form
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Original: is sent to the custom officer
Duplicate: Bank receive the duplicate
Triplicate: is sent to the State Bank Of Pakistan
Quadruplicate: is kept by the exporter for his personal record.
Verification of E-Form
Export Documents
Scrutiny Of The Documents
Dispatch
3.8: ACCOUNTS DEPARTMENT:
In my last & sixth week at Bank Alfalah was in account department. Here I
learned some important concepts and assumptions that are use in the accounting
for banks.
Functions
The major functions of this department include:
Keeping accounts of income and expenses of the bank.
Keeping records of the daily transactions in hard copy and soft copy, that is all
type of book keeping.
Reporting the daily, weekly and monthly performance reports to the respective
offices.
Preparing the annual reports /financial statements (final accounts) of the bank.
Keeping a check on daily expenses and controlling the expenses.
Department deals with the sale and purchase of required assets for the branch,
reimbursement of daily expenses by bank staff and medical cover etc.
3.8.1: Reports
It generates reports like Statement of Account Activity (a report on the activity of all
accounts at Bank Alfalah Liaqat Road), Statement of Affairs (a report on the assets
and liabilities of Bank Alfalah Liaqat Road), Statement of Foreign Exchange (a
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report on the foreign exchange currencies at the bank) and Statement of Profit &
Loss (a report on the income and expenditures of Bank Alfalah Liaqat Road).
These reports can be generated at daily, weekly, monthly, quarterly or yearly basis as
required by the bank.
3.8.2: Income and Expense
The department also needs to calculate the revenues and expenses, control expenditure
and forecast profits every month
.
3.8.3: Budget
Formulation of yearly budgets & targets in consultation with the branch manager is also
done by the accounts department.
3.8.4: Activity Checking
Daily activity checking and monitoring is done by the accounts department of the whole
bank.
Collecting vouchers, cheques etc from all departments
Sorting Vouchers
Checking Activity
Packing
3.8.5: Storage of Records
Accounts Department also has the duty to store vouchers and system generated reports
3.8.6: Payments
The accounts department is responsible to pay vendors on behalf of the bank with
authorization from the branch manager. It also has to amortize large payments and
calculate depreciation of branch assets.
25
26
CHAPTER NO 4
LEARN AS AN INTRNEE:
4.1: My Activities:
In the branch I perform different types of duties in different department. I was rotated in
different departments in different weeks, so that I could get the experience of different
tasks in the bank. The departments in which I worked are given below.
Account Opening:
I worked for one week in the account opening department at the bank & learned a lot
from the caring and helping staff in the department.
Whenever a customer comes to open their account, they have to fill a relationship
contract with the bank. As part of my internship I had to fill these forms and then use the
appropriate bank stamps to complete these forms. Also as part of the relationship form, I
also had to do a ‘Verisys’, a verification system started by NADRA on the CNIC of the
new account opener. A ‘Verisys’ tells, if more information pertaining to the customer is
needed to open the account or not.
Furthermore as all relationship forms have to be sent to Karachi, a central location, for all
account relationship forms, I had to develop a list of daily forms sent and their quantity.
Remittance:
The second week I was advised to spent few days in remittance department and try to
learn its functions and working of this department. This department was administrative
by Mr. Abdul Hamid. He helped me in learning all about the local remittances and
foreign remittances.
Learning
My major learning was about the concepts of Transferability and the negotiable
instruments.
27
Online Transfer Of Money:
In this department I learned to make transfer slips and see the online transfer of money
from one branch of ABL to another, I spent one week in this department.
I couldn’t get a chance to transfer money myself online because this is a very sensitive
issue. That’s why I was assigned the duty of filling the online slips of the customers, to
tell them about this facility and solve any of their quires. As online transfer facility is the
point on which branch really has comparative advantage that’s why a lot many people
used to come for online transfer of money every day and as it’s a new service and people
used to have many queries and I had to solve them ,that’s why it kept me very busy all
the week.
Cheque books and Lokers:
I also spent one week in this department. I learned how to issue cheques books and to
operate lockers. Whenever any customer used to come to collect his or her cheques book
then I used to take his sign on the register as record, do stamping, write date of issuance,
match his sign with SS card and then provide his cheques book.
Clearing / Collection:
In the third week of my internship I was shifted in clearing/collection department. In this
department I learned all the important functions and working related to clearance of
cheques. I also learned to fill the cheques in this department, as most of the customers do
not know that how to fill the cheques and deposit slips.
I also learned to do clearing of inward and outward cheques.
I learned to make OBC’s
I learned to make IBCA
AND I also learned to enter the daily inward and outward proceedings in the
register as record.
Credit Department
In the fourth week of my internship I was advised to spent the whole week in Credit
department. I learned here many important concepts of interest.
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The Credit department of Bank Alfalah work with both SME’s and corporate clients.
There are two major categories of credit line facilities that Bank Alfalah provides to its
customer.
Funded Credit line facility
Unfunded Credit line facility
Trade Finance Department
In the fifth week of my internship at Bank Alfalah I was assigned to work in trade finance
department. Trade finance involves the import & export activities. This department
provides protection to the rights of importer and exporter.
The function of this department to serve as a bridge between the importer and
exporter in order to settle a transactions.
Trade Finance department handle two activities.
Import
Export
Account Department
In my last & sixth week at Bank Alfalah was in account department. Here I
learned some important concepts and assumptions that are use in the accounting
for banks.
In the accounts department, I had to do daily activity checking and there are four stages
in which activity checking takes place:
1. Collecting vouchers, cheques etc from all departments
2. Sorting Vouchers
3. Checking Activity
4. Packing
4.2: Major Product
Banking sector has a wide variety of products that carter to financial need of
masses; some of the major products that bank provide to its customers and it is
mostly used by the banks customers are as follow,
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Checking Accounts
Car Financing
Home Financing
Credit Cards
Funded and unfunded loans
4.2.2: Checking Accounts
There are the main types of checking accounts that banks provide
Basic Banking Account (BBA)
Current Account
Profit and loss account
4.2.2: Car Financing
Car financing has become one of the most selling financial products of almost all
banks. People prefer getting their cars financed rather than paying upfront because
it is convenient and lessens the burden of paying a huge sum of money upfront.
Some of the features of Bank Alfalah Car Financing are:
Tenure of 1-5 years
Minimum down payment- starting from 10% of car value
5 % extra at time of pre-mature payment.
Insurance facility from three different insurance companies
Tracking devices with all Suzuki Mehran and all Toyota Models
Fixed mark up rates
Co borrowers facility
The mark up rates for all locally build new cars is a follows.
Mark up rates for car financing
Fixed Rates
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Financing Product 1 yr 2 yr 3 yr 4 yr 5 yr
Car Loan for Brand New Vehicles
17.50% 17.50% 18.00% 18.50% 18.50%
Car Loan for Brand New Imported Vehicles
19.00% 19.00% 19.00% 19.00% 19.00%
Brand New Semi Commercial Vehicles (locally manufactured)
20.00% 20.00% 20.00% 20.00% 20.00%
Second Hand Vehicles 21.00% 21.00% 21.00% 21.00% 21.00%
Variable Rates:
Financing Product2 yr - 3
yr4 yr - 5 yr
Car Loan for brand new vehiclesKibor +
3%Kibor + 4%
Car Loan for brand new imported vehicles
Kibor + 5%Brand New Semi Commercial Vehicles
(locally manufactured)
Second Hand Vehicles
Source: Bank Alfalah Website
31
4.2.3: Home Financing
Bank Alfalah has introduced home loans as part of their consumer banking and
some of the products that come under home finance are:
Alfalah Home Buyer
Alfalah Home Construct
Alfalah Home Improver
Alfalah Home Smart
Alfalah Home BTF
Alfalah Home Purchase & construct
Features of Home Financing
Some of the features of Bank Alfalah home finance are as follows:
A tenure of 3 to 20 years (renovation tenure for 10 years)
For people between the age of 23 to 65
Facility of home loans range from 0..5 million to 50 million (renovation
facility for 3.5 million)
Financing up to 80 % of property value while 50 % of plot value
Fixed and Variable rates of markup
Fixed rate for one year @ 11.5% Salaried and @ 13.5% Businessmen and
expatriate Pakistani’s.
4.2.4: Credit Cards
Credit Cards are today’s one of the most selling product that banks offer. There
are three major types of credit cards:
The Type & market segment are following as
32
Credit Card Market Segment1
Silver Salaried and self employed individuals
starting their careers
Gold Salaried individuals or self employed
individuals with high income
Platinum For exclusive customers of the bank
with huge deposits or very high income
4.3: Benefits
Some of the monetary and non monetary benefits that Bank Alfalah provides to its
employees are as follows:
Attractive Salary Package
Employee Provident Fund
Gratuity Fund
Medical Insurance
Bonuses
Life Insurance
Promotions
Various types of Staff Loans
Assistance in Pursuing Higher Education
Cash Rewards on completing IBP Diploma
1
33
4.3.1: ADDITIONAL BENEFITS OFFERED BY THE BRANCH:
Some benefits which Bank Alfalah provided to its customer.
24 hours helpline service.
Free internet banking facility.
SMS transaction alerts.
ATM/DEBIT card for cash withdrawals through any ATM and debit transactions
at various retail outlets.
4.4: Market Analysis
In today’s contemporary business world, marketing plays an important role and banks,
such as Bank Alfalah Liaqat Road that have a number of competitors in the banking
industry, need to use their marketing plan and strategies effectively to attract customer
loyalty for its customer. The target market of the branch is business community. As
internee I saw that branch organize the functions for their customers, like cricket
matches, Eid celebration parties, organize dinners for those customers who have high
deposit & good relationships with the branch.
During my internship Minerva Road branch also organize the movie program for their
customers. As internee I saw that how this branch creates public relation with others to
contribute and bring about positive changes in the area.
4.5: Competitors Analysis
Bank Alfalah Liaqat road branch has this strategy that it always gives first priority
to its customers as compared to other banks. According to their strategy it is the demand
and need of customers which should be given priority and importance, so that if
customers will get what they really want then definitely they will be satisfied and prefer
then bank over others. Another important thing which differentiates them is that, this
branch believes that making your existing customers loyal is very important, because it is
really the existence of your already existing customers that attracts new people, like a
famous saying that money attracts money so in the same way loyal customers attract new
customers. To achieve this motive, this branch has made it its policy to give its customers
full time and attention, to introduce them with new policies, through their employee.
34
4.6: LEARNING AND EXPERIENCE DURING INTERNSHIP
During my stay at this internship at Bank Alfalah, my learning & experience could be
stated as under:
Learned about developing skills in the application of theory to practical work
situation.
I availed this opportunity to test my aptitude for a particular career before
permanent dedication are made.
I become aware of the organizational environment and gain a real world
experience.
I become aware of the working of a bank and banking system in Pakistan.
I availed the opportunity to develop attitudes favorable to effective interpersonal
relationships.
Learned about developing skills and techniques directly applicable to my career.
Understand and observe the nature of informal organizational interrelationships.
Experience, observe and acquire good work habits.
It prepared me to enter into full-time employment in their area of specialization
upon graduation.
CHAPTER NO 5
SWOT ANALYSIS
35
Following is the SWOT Analysis of BANK ALFALAH LIAQAT ROAD on my personal
based experience and the recommendations proposed:
Strength
Followings are the strengths of BANK ALFALAH LIAQAT ROAD BRANCH under my
observation during my internship.
Liaqat Road Branch holds a sound repute in the financial circle of grain market.
Efficient services of the staff to the customers.
Liaqat Road Branch has its own building.
It has a reliable and easy to use internal computer system.
This Branch maintaining the healthy correspondent relationship with other
branches & foreign banks.
The branch has very strict rules & regulations about the customer’s complaints.
The customers are treated as very special persons in the branch.
Branch has the flexibility with changing environment.
The Branch has efficient services of the staff to the customers.
Liaqat Road Branch has its own ATM services.
Liaqat Road Branch also provides the locker services with reasonable charges.
Salaries & incentives are paid in time to its employees.
Weakness
During my stay at internship, one of the weakness I observed Bank Alfalah facing
that some remuneration is charged on Cheque Book, Statement & online transfers
etc. Most of the clients complaint about it and compare it with other banks
functional. As other banks are providing free or with less charges.
The branch was having huge business, but the workforce in branch was not in that
number that it can handle the maximum customers, so resulting in loss of
customer and loss of revenue. So as a weakness, there must be more workforce to
handle the business in a branch.
36
Opportunities
All the opportunities to be availed in the information technology. Information
technology is the future. Therefore Minerva Road Branch should emphasize
much on IT.
Adoption of information technology will improve the customer services.
The Branch has a sound financial so business parties are much interested to be
the part of the organization.
There is no strong competitor in the market so the branch can expand its
skilled field force to increase the business.
Threats
All the competitors’ branches are using different means and methods to
popularize their product and services.
The management should recruit more staff for Bank Alfalah Liaqat Road Branch,
because in this branch often many customers face tension due to the rush of work.
The pay packages given to the employees in this branch should be enhance.
Opening of new branches in the grain market like Meezan Bank, MCB, & faysal
bank are big threats for this branch.
CHAPTER NO 6
FINANCIAL ANALYSIS
6.1:BALANCE SHEET (RUPEES IN '000)
37
ASSETS 2014 2013 2012Cash & Balances with treasury banks 50,515,643 61,204,697 58,044,054Balances with other banks 12,331,713 34,764,008 26,720,993Lendings to Financial institutions 18,313,485 2,522,022 876,870Investments – Net 324,319,454 219,690,369 189,486,762Advances-net 290,597,237 260,779,850 233,933,358Operating fixed assets 15,740,100 14,835,200 13,747,520Deferred tax assets - 1,204,000 384,601other assets 31,310,661 16,427,478 13,272,536
743,128,293 611,427,624 536,466,694LIABILITIES
Bills payable 11,758,155 9,543,480 8,430,910Borrowings 55,232,916 23,115,102 21,227,834Deposits and other accounts 605,963,224 525,525,770 457,118,723sob-ordinated loans 9,987,000 9,991,000 5,874,742Liabilities against assets subject to finance lease - - -Deferred tax liabilities 853,331 - -other liabilities 14,514,599 11,350,528 13,567,083
698,309,225 579,525,880 506,219,292
NET ASSETS 44,819,068 31,901,744 30,247,402
PRESENTED BY
Share Capital 15,872,427 13,491,563 13,491,563Reserves 12,338,026 7,274,222 5,636,549Unappropriated profit 9,613,374 7,499,831 6,561,628
37,823,827 28,265,616 25,689,740Surplus on revaluation of assets - net of tax 6,995,241 3,636,128 4,557,662
44,819,068 31,901,744 30,247,402
TOTAL LIABILITIES & EQUITY 743,128,293 611,427,624 536,466,694
38
6.1.1:BALANCE SHEET VERTICAL ANALYSIS
ASSETS 2014 2013 2012Cash & Balances with treasury banks 6.80% 10.01% 10.82%Balances with other banks 1.66% 5.69% 4.98%Lendings to Financial institutions 2.46% 0.41% 0.16%Investments – Net 43.64% 35.93% 35.32%Advances-net 39.10% 42.65% 43.61%Operating fixed assets 2.12% 2.43% 2.56%Deferred tax assets 0.00% 0.20% 0.07%other assets 4.21% 2.69% 2.47%
100.00% 100.00% 100.00%LIABILITIES
Bills payable 1.58% 1.56% 1.57%Borrowings 7.43% 3.78% 3.96%Deposits and other accounts 81.54% 85.95% 85.21%sob-ordinated loans 1.34% 1.63% 1.10%
Liabilities against assets subject to finance lease 0.00% 0.00% 0.00%Deferred tax liabilities 0.11% 0.00% 0.00%other liabilities 1.95% 1.86% 2.53%
93.97% 94.78% 94.36%
NET ASSETS 6.03% 5.22% 5.64%
PRESENTED BY
Share Capital 2.14% 2.21% 2.51%Reserves 1.66% 1.19% 1.05%Unappropriated profit 1.29% 1.23% 1.22%
5.09% 4.62% 4.79%Surplus on revaluation of assets - net of tax 0.94% 0.59% 0.85%
6.03% 5.22% 5.64%
TOTAL LIABILITIES & EQUITY 100.00% 100.00% 100.00%
39
6.1.2:BALANCE SHEET HORIZONTAL ANALYSIS
ASSETS 2014 VS 2013 2013 VS 2012Cash & Balances with treasury banks -17.46% 5.45%Balances with other banks -64.53% 30.10%Lendings to Financial institutions 626.14% 187.62%Investments – Net 47.63% 15.94%Advances-net 11.43% 11.48%Operating fixed assets 6.10% 7.91%Deferred tax assets 0.00% 0.00%other assets 90.60% 23.77%
21.54% 13.97%LIABILITIES
Bills payable 23.21% 13.20%Borrowings 138.95% 8.89%Deposits and other accounts 15.31% 14.96%sob-ordinated loans -0.04% 70.07%Liabilities against assets subject to finance lease 0.00% 0.00%Deferred tax liabilities 0.00% 0.00%other liabilities 27.88% -16.34%
20.50% 14.48%
NET ASSETS 40.49% 5.47%
PRESENTED BY
Share Capital 17.65% 0.00%Reserves 69.61% 29.05%Unappropriated profit 28.18% 14.30%
33.82% 10.03%Surplus on revaluation of assets - net of tax 92.38% -20.22%
40.49% 5.47%
TOTAL LIABILITIES & EQUITY 21.54% 13.97%
6.2:PROFIT AND LOSS ACCOUNT(Rupees in '000)
40
2014 2013 2012Mark-up / return / interest earned 55,378,477 43,961,477 46,079,918Mark-up / return / interest expensed 33,505,003 27,066,229 27,500,056Net mark-up / interest income 21,873,474 16,895,248 18,579,862
Provision against non-performing loans and andavence-net 1,447,931 954,563 1,848,535Provision for diminution in the value of investment-net 85,897 94,797 1,708,833Bad debts written off directly 5 4,288 1,164
1,533,833 1,053,648 3,558,532Net mark-up / interest income after provision 20,339,641 15,841,600 15,021,330
Non mark-up /interest incomeFee,commission and brokerage income 3,120,035 2,800,461 2,536,717Dividend income 492,348 482,567 349,061income from dealing in foreign currencies 2,042,957 1,535,808 1,309,703Gain on sale of securities-net 1,058,167 1,588,895 1,328,000Unrealised gain on revaluation of investments 160,098 8,465 1,511Other income 2,162,836 1,862,498 1,756,348Total non mark-up / interest expenses 9,036,441 8,278,694 7,281,340
29,376,082 24,120,294 22,302,670Non mark-up / interest expensesAdministrative expenses 20,261,215 17,288,779 15,204,036Provision against off-balance sheet obligation 38,453 2,100 -22,005Provision /(reversal) against other asset 356,486 -162,621 130,504Other charges 206,362 184,408 206,933 Total non mark-up / interest expenses 20,862,516 17,312,666 15,519,468
8,513,566 6,807,628 6,783,202Profit before taxation 8,513,566 6,807,628 6,783,202Taxation Current 3,122,512 2,400,321 3,141,909 Deferred -288,216 -159,060 -754,828 Prior years 38,419 -110,000 -160,000
2,872,715 2,131,261 2,227,081profit after taxation 5,640,851 4,676,367 4,556,121
(Rupees)Basic earnings per share 4.09 3.41 3.38
41
6.2.1:PROFIT AND LOSS ACCOUNT VERTICAL ANALYSIS
2014 2013 2012
Mark-up / return / interest earned100.00
%100.00
%100.00
%Mark-up / return / interest expensed 60.50% 61.57% 59.68%Net mark-up / interest income 39.50% 38.43% 40.32%
Provision against non-performing loans and andavence-net 2.61% 2.17% 4.01%Provision for diminution in the value of investment-net 0.16% 0.22% 3.71%Bad debts written off directly 0.00% 0.01% 0.00%
2.77% 2.40% 7.72%Net mark-up / interest income after provision 36.73% 36.04% 32.60%
Non mark-up /interest incomeFee,commission and brokerage income 5.63% 6.37% 5.51%Dividend income 0.89% 1.10% 0.76%income from dealing in foreign currencies 3.69% 3.49% 2.84%Gain on sale of securities-net 1.91% 3.61% 2.88%Unrealised gain on revaluation of investments 0.29% 0.02% 0.00%Other income 3.91% 4.24% 3.81%Total non mark-up / interest expenses 16.32% 18.83% 15.80%
53.05% 54.87% 48.40%Non mark-up / interest expensesAdministrative expenses 36.59% 39.33% 32.99%Provision against off-balance sheet obligation 0.07% 0.00% -0.05%Provision /(reversal) against other asset 0.64% -0.37% 0.28%Other charges 0.37% 0.42% 0.45% Total non mark-up / interest expenses 37.67% 39.38% 33.68%
15.37% 15.49% 14.72%Profit before taxation 15.37% 12.29% 12.25%Taxation Current 5.64% 5.46% 6.82% Deferred -0.52% -0.36% -1.64% Prior years 0.07% -0.25% -0.35%
5.19% 4.85% 4.83%profit after taxation 10.19% 10.64% 9.89%
42
6.2.2:PROFIT AND LOSS ACCOUNT HORIZONTAL ANALYSIS
2014 VS 2013 2013 VS 2012Mark-up / return / interest earned 25.97% -4.60%Mark-up / return / interest expensed 23.79% -1.58%Net mark-up / interest income 29.47% -9.07%
Provision against non-performing loans and andavence-net 51.69% -48.36%Provision for diminution in the value of investment-net -9.39% -94.45%Bad debts written off directly -99.88% 268.38%
45.57% -70.39%Net mark-up / interest income after provision 28.39% 5.46%
Non mark-up /interest incomeFee,commission and brokerage income 11.41% 10.40%Dividend income 2.03% 38.25%income from dealing in foreign currencies 33.02% 17.26%Gain on sale of securities-net -33.40% 19.65%Unrealised gain on revaluation of investments 1791.29% 460.23%Other income 16.13% 6.04%Total non mark-up / interest expenses 9.15% 13.70%
21.79% 8.15%Non mark-up / interest expensesAdministrative expenses 17.19% 13.71%Provision against off-balance sheet obligation 1731.10% -109.54%Provision /(reversal) against other asset -319.21% -224.61%Other charges 11.91% -10.89% Total non mark-up / interest expenses 20.50% 11.55%
25.06% 0.36%Profit before taxation 25.06% 0.36%Taxation Current 30.09% -23.60% Deferred 81.20% -78.93% Prior years -134.93% -31.25%
34.79% -4.30%profit after taxation 20.62% 2.64%Basic earnings per share 19.94% 0.89%
43
6.3: RATIO ANALYSIS
Total Assets Turnover:
This ratio measures that how much turnover is generated by the total assets of the
organization. This is calculated by the given formula,
Total Assets Turnover = Annual Sales or Total Income/Average Total Assets
Year 2014 2013 2012
TAT 0.89% 0.74% 0.72%
Interpretation:
This ratio should be high which is better for the business but, Bank Alfalah’s total assets
turnover showing a mixed trend of increase and decrease in past five years. In 2014 it is
high at 0.89% as compare to 2013 at 0.74% but is even less of the highest value of 0.72%
in 2012.
Return on Investment:
This ratio is calculated by dividing Op profit by the average of operating assets as shown
by the formula,
Return on Investment = Op Profit/Average Operating Assets
Year 2014 2013 2012
ROI 10.42% 8.33% 8.30%
Interpretation:
The answer of this ratio should be high or should be shown a positive increasing trend for
better and favorable results. Bank Alfalah’s ROI showing a increasing trend over the past
3 years with Highest in 2014 that is 10.42% and lowest as 8.30% in 2012 which is not
favorable for the bank.
44
Return on Deposits:
This ratio measures the return on deposits by the total deposits of the organization
obtained by dividing net income after taxes to total deposits as shown by the formula,
Return on Deposits = Net Income After tax/Total Deposits
Year 2014 2013 2012
ROD 0.93% 0.89% 0.99%
Interpretation:
As this ratio shows the total return which business gains from the total deposits, so it
should be high which will be better for the business but it is showing a continuous
decreasing trend from 2012 to 2014 except a highest value in 2012 which is 0.99%.
Fixed Assets Turnover:
This ratio measures the efficiency of using fixed assets in generating income or sales. It is
the ratio of annual sales to total fixed assets as given by the formula,
Fixed Assets Turnover = Annual Sales or Total Income/Total Fixed Assets
Year 2014 2013 2012
FAT 35.84% 31.52% 33.14%
Interpretation
The result of this ratio should always be high for favorable business environment because
high ratio shows that business is investing more efficiently and effectively in fixed assets
for generating sales. It is showing a very ambiguous trend, as it was high in 2014
decreases then increases in 2012.
45
Current Ratio:
Current ratio indicates the liquidity position of the business that whether business can
fulfill its obligation or not. It is the ratio of current assets to current liabilities as,
Current Ratio = Current Assets/ Current Liabilities
Year 2014 2013 2012
CR 92.63% 297.54% 287.10%
Interpretation:
The current ratio should be in reasonable range. It should not be too high or too low, both
conditions are not favorable. In this case of Bank Alfalah, it is showing a decreasing
trend which is not favorable for the business because it may pose difficulty for the bank
to fulfill its current obligations.
Debt Equity Ratio:
This ratio tells about the financial leverage of the organization that what proportion of
debt and what proportion of equity is being used by the organization for financing its
available assets. It is calculated by dividing long term debt to total capitalization as
shown by the given formula,
Debt Equity Ratio = Long Term Debt/ Total Capitalization
Year 2014 2013 2012
DER 26.4% 35.35% 22.88%
Interpretation:
A higher value of debt equity ratio is much favorable for the business as its high value
tells about the efficiency of the business to using its available debt for financing. Bank
Alfalah’s debt equity ratio is showing a decreasing trend over the past 3 years but as
compare to 2014 the ratio of 2013 is increased 35.35% and in 2014 ratio is 26.4%.
46
Return on Total Assets (ROTA):
This ratio tells about the percentage of net profit/earnings which business is attaining by
using its total available assets. It is calculated by dividing net profit to total assets as
shown by the given formula,
Return on Total Assets = Net Profit/Total Assets
Year 2014 2013 2012
ROTA 0.75% 0.76% 0.85%
Interpretation:
Higher Ratio is favorable for the business which shows better use of assets by the
business for generating profits. Bank Afalah’s ROTA is showing a decreasing trend over
past 3 years except in 2012 with a highest value of 0.85%.
Return on Equity:
This ratio shows a relationship between net income after taxes and shareholder’s equity,
and measures the efficiency of the organization of generating profits by using
shareholder’s equity. It is calculated by dividing net income after taxes to shareholder’s
equity as shown by the given formula,
Year 2014 2013 2012
ROE 12.58% 14.65% 15.06%
Interpretation:
It should be high for favorable results. This ratio of Bank Alfalah is showing a decreasing
trend.
47
Investment to Total Assets Ratio (ITA):
This ratio tells about the percentage of investment to assets calculated by dividing
investment to assets as shown by the following formula,
Investment to Total Assets Ratio = Investment/Assets
Year 2014 2013 2012
ITA 43.64% 35.93% 35.32%
Interpretation:
This ratio should be in high figures for favorable results of the business. Bank Alfalah’s
ITA is showing a higher trend of increasing in last 3 years. In 2014 it is high at 43.64% as
compare to 2013 and 2012 which is favorable. But bank should try to keep it high by
making better policies.
Deposits to Total Liabilities
It is calculated by dividing total deposits to total liabilities as shown by the given
formula,
Deposits to Total Liabilities = Total Deposits/Total Liabilities
Year 2014 2013 2012
DTL 86.78% 90.68% 90.30%
Interpretation:
It is showing a mixed trend of increase and decrease over last three years. As it is
decreased in 2014 to 86.78% from 90.68% in 2013 which is not favorable.
48
Equity to deposits ratio:
This is the ratio of total shareholder’s equity to total deposits and is calculated by the
following formula,
Equity to deposits ratio = Total Shareholder’s Equity/ Total Deposits
Year 2014 2013 2012
ED 7.39% 6.07% 6.62%
Interpretation:
It is showing an increasing trend over the last three years which is favorable.
Equity to Assets Ratio:
This is the ratio of total shareholder’s equity to total assets and is calculated by the
following formula,
Equity to Assets Ratio = Total Shareholder’s Equity/Total Assets
Year 2014 2013 2012
ETA 6.03% 5.22% 5.64%
Interpretation:
It is showing an increasing trend except in 2013 but overall it is increasing which is
favorable for the business.
49
Cash to Deposit Ratio:
This ratio tells about the percentage of cash available as compare to the deposits. It is
calculated by dividing cash on hand and with other banks to total deposits as shown by
the given formula,
Cash to Deposit Ratio = Cash on hand and balance with other Banks/ Total Deposits
Year 2014 2013 2012
CTD 10.37% 18.26% 18.54%
Interpretation:
As this ratio tells about the liquidity status of the bank. It is showing increase trend in
2012 and 2013 in 2014 its showing decreasing trend.
50
CHAPTER NO 7
CONCLUSION
The aim of internship for the internee can be concluded as:
To build up skills in the application of theory to practical work situation.
To gain this opportunity to test my talent for a particular career before
permanent commitments are made.
To be aware of the organizational environment and gain a real world experience.
To be aware of the working of a bank and banking system in Pakistan.
To benefit the opportunity to develop attitudes contributing to to effective
interpersonal relationships.
To build up skills and techniques directly applicable to my career.
To enhance my sense of responsibility.
To plan myself to enter into full-time employment in their area of specialization
upon graduation.
To observe and obtain good work habits.
To build up employment records/references that will boost employment
opportunities.
To add an in-depth knowledge of the formal functional activities of a participating
organization.
My internship comprised in working in four different departments, my personal learning
encompasses extensive training in Bank Operations--Account Opening; Remittances;
Clearing/Collection; Account and Credits. This has been a great and valued experience
and exposure for me in the Business and Banking Area.
This internship helped me in learning about how to deal with the customers. More
importantly I learned that every work is done under a systematic process.
The results for my SWOT Analysis can be interpreted as:
BANK ALFALAH is considered to be leader in the Pakistan banking industry.
The financial position of BANK ALFALAH is very strong.
BANK ALFALAH should lower their transaction rates, so that can retain and
attract more customers.
51
BANK ALFALAH is directly facing severe competition from its competitors, so
it must constantly devise strategy, so that its market share remains unaffected.
BANK ALFALAH should have more workforces to handle its operations.
CHAPTER NO 8
RECOMMENDATIONS
52
My recommendations for BANK ALFALAH can be summed up as follows:
There must be a proper IT department in BANK ALFALAH Liaqat Road Branch,
so that IT problems can be adjusted immediately.
There must be a Customer Care Officer in BANK ALFALAH Liaqat Road Main
Branch.
It is observed that the employees were overburdened so they have to stay at
branch till late night. In this way their efficiency is affected and hiring more
employees can reduce their work.
The employees should be signed jobs for specific period and than they should
shifted to other department so that they gain knowledge of other jobs.
Bank Alfalah limited should properly advertise and communicate to public about
the services by it, so that more customers will be attracted.
The banks management should give more incentives and pay scale of officers
should be revised & improved.
System and operations should be more defined and organized.
IT draw backs should be improved.
Administrative drawbacks should be improved by the strict control of general
issues.
Audit should be held internally. Rather there should be an audit Department in the
branch to make audit on daily basis. This can become as helpful as different banks
are having this department of their own.
Lockers, ATM, all these facilities should be provide to attract more customers.
Expenditure must be control, which are very high.
53