Department of Management Sciences COMSATS institute of Information Technology Lahore

Internship Report
Bank Alfalah Limited

Submitted To
Madam Naheed Malik

Submitted By
Muhammad. Adil Sarwar CIIT/BBA-SP09-078/LHR Batch 11, Section C

Date
August 24, 2011

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Acknowledgement
All praises, thanks and acknowledgements are for CREATOR; the ALMIGHTY ALLAH Who has bestowed upon human being the crown of creation and has endowed him with knowledge and wisdom. I offer thanks to the Holy PROPHET (PBUH) WHO is the beacon of enlightment and the greatest benefactor the mankind ever had. Who brought for us revelation and unlimited knowledge and civilized the barbarian human being. I would like to present a token of thanks for the staff members of Bank Alfalah Limited Hasilpur Branch who were cooperative to me in the completion of this report and provide me their complete guidance. As banks are very much sensitive about their secrecy, even then after taking an understanding, they let me handle their delicate operations. My special thanks to Mr. Syed Noman Zaidi (Branch Manager), Mr. Qamar Islam Bhati (operations manager), Miss. Farkhanda Jabeen (HR manager), Mr. Faisal Hashim (credit manager), Mr. Talha Iqbal Baig (Accounts officer), Mr. Muhammad Khurram (Account opening officer), Mr. Muhammad Kashif (Remmittance In charge) Shahzaib Ghori (Business Development Officer), Miss Zahida Parveen Mr. (DMS

department In charge) Mr. Safdar Husain (Clearing Department officer) , Mr. Asim Butt (Agri officer), Mr. Aamir Chugtai (Car finance officer) and Mr. Muhammad Shahbaz (Cash department In charge), who gave me a horde of useful information and treated me extraordinarily at each step of my learning over there.

Muhammad Adil Sarwar

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Preface
Internship is the basic requirement of all business programs in nearly all of the business institutes and especially in COMSATS Institute of Information and Technology Lahore. It is actually the basic requirement of the course of BBA (Honors). Firstly the purpose of internship period is to become familiar with the practical world that what is actually happening in different national and multinational companies and how different activities are performed over there. Secondly, to cope the theoretical knowledge with the practical side that what is to be taught us in business institutes and how it is implemented in different enterprises?

I have done my internship in Bank Alfalah Limited (Hasilpur Branch) since 1st of July 2011 to 15th of August, 2011. I gained a lot from this internship tenor under the kind supervision and guidance of my internship supervisor. During my whole time I was visited through different cells of the bank and was thoroughly briefed about the procedure and working by cordial senior staff of there. My report is all based on what I have learnt there. I hope that my report will given you good overlook of all the banking related matters.

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Executive Summary
The evolution of Bank Alfalah signifies a movement from concept to reality; a reality to bring about a change in the banking industries of Pakistan; offering an alternative way of banking; providing people an opportunity to practice beliefs in their financial matters. Following privatization, Bank Alfalah emerged as new identity of Habib Credit and Exchange Bank with a revived purpose and commitment. Charged with the strength of Abu Dhabi consortium and under the leadership of His Highness Sheikh Nahayan Mabarak Al-Nayayan, the bank has already made significant contributions in building and strengthening both corporate and retail banking sector in Pakistan. At present Bank Alfalah Limited (BAL) have 380 branches in Pakistan and main objective is to provide its customers with safe, secure and reliable service through wide range of products. Today Bank Alfalah is the fifth largest Banking operation in Pakistan. Since its inception, it has registered the fastest growth rate ever witnessed by any Banking operation in Pakistan. The most valuable asset of any financial institution is its human resource. Bank Alfalah has at present a dedicated and commendable workforce of around 7571 staff members other than outsourced. Bank Alfalah has lined up a number of innovative products. These products are Alfalah Hilal Cards, Credit Cards, Online services, and different types of accounts according to customer requirements. Being an active player in banking sector in Pakistan, they are confident that with the commitment of their team they will be able to gain the reputation of the fastest paced financial institution. This report covers all the information regarding Bank Alfalah Limited and its operations. Bank has different departments to handle its operations. Working of these departments (Account opening, Car finance, Agri Finance, Remittances, Clearing, Accounts, Credits, Document Management System (DMS) and cash department) described in details. To analyze the company from various aspects of marketing, SWOT Analysis has been carried out with devoted efforts. The strengths, weaknesses, opportunities and threats depict the future of Bank Alfalah Limited.

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Dedicated To
I would like to dedicate this accomplishment Offline to my beloved and caring parents, and to my Teachers with the support of whom I am standing at this Step of my life stairs.

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Contents
Acknowledgement......................................................................................................... 2 Preface ........................................................................................................................... 3 Executive Summary ...................................................................................................... 4 Dedicated To .................................................................................................................. 5 Bank Alfalah Limited ................................................................................................... 16 Introduction ................................................................................................................ 16 History and Present Status of Bank Alfalah Limited: .................................................. 18 Vision Statement ........................................................................................................ 20 Mission Statement: .................................................................................................... 21 Objectives of Bank Alfalah Limited: ............................................................................ 22 Nature of the organization: ......................................................................................... 23 Number of Employees: .............................................................................................. 23 Product line: ............................................................................................................... 24 Organizational Structure of Bank Alfalah: ................................................................ 25 Chairmans Message: ............................................................................................. 25 Board of Directors: .................................................................................................. 26 List of Executives: ................................................................................................... 27 Branch Setup: ......................................................................................................... 30 Bank Alfalah Limited Policy Formation: ...................................................................... 31 Lending Policy: ....................................................................................................... 31 Selection of Clients: ................................................................................................ 32 Services and Product Polices: ................................................................................ 32 Credit Facility: ......................................................................................................... 32 Stop Payment Instructions: ..................................................................................... 32 Deposits: ................................................................................................................. 32 Trade Department Policy ........................................................................................ 33 Marketing Policy: .................................................................................................... 33 Promotion and Incentives: ...................................................................................... 33

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Accounting Policies:................................................................................................ 33 Recruitment Policy: ................................................................................................. 34 Training and Development Policy: .......................................................................... 34 Quality assurance services: .................................................................................... 35 Growth Policy:......................................................................................................... 35 Liquidity Policy: ....................................................................................................... 35 Investments Policies: .............................................................................................. 35 Job Satisfaction: ..................................................................................................... 35 Management at Bank Alfalah Limited Hasilpur Brach: ............................................ 36 Management Styles: .................................................................................................. 36 Managerial level:..................................................................................................... 37 Department Head level: .......................................................................................... 37 Staff Level: .............................................................................................................. 37 My Duties and Learning at Bank Alfalah Ltd (HSP) .................................................. 38 Remittances Department: ........................................................................................... 39 1. Deposit Slips: ...................................................................................................... 40 2. Cash Online Slips: ............................................................................................... 41 3. Demand Drafts: ................................................................................................... 42 4. Cheque Deposit Slips: ......................................................................................... 45 5. Cheque Filling: .................................................................................................... 48 6. Cheque Online Slips: ........................................................................................... 48 7. Credit Card Payment Slips: ................................................................................. 50 8. Money Gram:....................................................................................................... 51 Account Opening Department: .................................................................................. 53 Basic Information about Account: .................................................................................. 53 1. Minimum Balance: ............................................................................................... 53 2. Deposits: ............................................................................................................. 53 3. Withdrawals: ........................................................................................................ 54 4. Statement of Account: ......................................................................................... 54 5. Closure of Account: ............................................................................................. 54 6. Stop Payment Instructions:.................................................................................. 54

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7. Death of Customer: ............................................................................................. 54 Types of Accounts: ........................................................................................................ 55 1. Current Account: ................................................................................................. 55 1.1. 1.2. 1.3. 1.4. Simple Current Account (S.C.A): .................................................................. 56 Alfalah Kamyab Karobar Account (A.K.K.A): ................................................ 56 Basic Banking Account (B.B.A): .................................................................... 57 Foreign Currency Account (F.C.A): ............................................................... 57

2. Saving Account: .................................................................................................. 58 2.1. 2.2. 2.3. 2.4. Profit & Loss Simple Account (P/L.S.A) ........................................................ 58 Kafayat Account: ........................................................................................... 59 Royal Profit Account (R.P.A): ........................................................................ 59 Alfalah Mahana Account (A.M.A): ................................................................. 59

Entities Types who can open Current/Saving Account: ................................................. 60 1. 2. 3. 4. 5. 6. Individual: ......................................................................................................... 60 Illiterate: ........................................................................................................... 60 Partnership: ...................................................................................................... 60 Sole Proprietorship: .......................................................................................... 61 Corporate: ........................................................................................................ 61 Trust/Foundations and Societies: ..................................................................... 62

DMS (Document Management System) Department: ............................................... 63 1. Stamping: ............................................................................................................ 63 1.1. 1.2. 1.3. 1.4. 1.5. Crossing Stamp: ........................................................................................... 63 Transfer Stamp: ............................................................................................ 64 Signature Verifying Stamp: ........................................................................... 64 Bank Smart Stamp: ....................................................................................... 65 Payees Account Stamp: ............................................................................... 66

2. Setting: ................................................................................................................ 66 3. Scanning: ............................................................................................................ 66 4. Editing: ................................................................................................................ 66 5. Sorting: ................................................................................................................ 67 6. Ticking: ................................................................................................................ 67

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7. Voucher Binding: ................................................................................................. 67 Agriculture Department: ............................................................................................. 68 1.Loan Types: ............................................................................................................... 68 1.1. 1.2. Development Loans: ........................................................................................ 69 Production Loans: ............................................................................................ 69

2.Financing Policies: ..................................................................................................... 69 1. Turn Financing Policy: ......................................................................................... 69 2. Ever Green Financing Policy: .............................................................................. 70 3.Basic Requirement for Granting Loans: ..................................................................... 70 3.1. 3.2. 3.3. 3.4. 3.5. 3.6. Age Limit: ......................................................................................................... 70 Cast: ................................................................................................................. 70 Location: .......................................................................................................... 70 Facilities: .......................................................................................................... 71 Ownership: ....................................................................................................... 71 Cultivation: ....................................................................................................... 71

4.Loan Granting Steps: ................................................................................................. 71 4.1 4.2 4.3 4.4 Documentation: ................................................................................................ 71 CIB (Credit Information Bauru) Report: ............................................................ 72 CLP (Credit Line Proposal): ............................................................................. 72 Approval of Loan: ............................................................................................. 72 Secured Loan: ........................................................................................... 72 Unsecured Loan: ....................................................................................... 73 Physical Verification: ................................................................................. 73 Document Verification:............................................................................... 73

4.4.1. 4.4.2. 4.4.3. 4.4.4.

5.Loan Issuing Not Allowed: .......................................................................................... 73 Car Finance Department: ............................................................................................ 74 1.Documentation for Car Finance: ................................................................................ 74 1.1. Income Documents: ......................................................................................... 75

Credits Department: .................................................................................................... 76 1. 2. Purpose of Credits: .......................................................................................... 76 Credit philosophy at BAL: ................................................................................. 76

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3. 4.

Importance of Credits: ...................................................................................... 76 Risks involved in Lending: ................................................................................ 76

Types of borrowers:....................................................................................................... 76 1. 2. 3. Individuals: ....................................................................................................... 77 Businesses Entities: ......................................................................................... 77 Others: ............................................................................................................. 77

Borrowing Entities: ..................................................................................................... 77 1. 2. 3. 4. Individual as a Borrower: .................................................................................. 78 Partnership as a Borrower: .............................................................................. 78 Company as a Borrower: ................................................................................. 78 Government as a Borrower: ............................................................................. 79

Bank Alfalahs Lending Principles: ................................................................................ 79 Divisions of Credits:....................................................................................................... 80 1. Credits Marketing: ............................................................................................... 80 2. Credit Administration: .......................................................................................... 81 Procedure of Lending Credit: ........................................................................................ 81 1. Customer Evaluation: .......................................................................................... 81 1.1. 1.2. 5 Cs of Credit:............................................................................................. 81 Adverse (Harmful) Cs of Credit:.................................................................. 82

2. Nature of the Risk Exposed To a Bank:............................................................... 83 3. Credit Line Proposal (CLP):................................................................................. 84 3.1. 3.2. 3.3. 3.4. 3.5. 3.6. 3.7. 3.8. 3.9. 3.10. Types of Proposal: ........................................................................................ 84 Borrower: ...................................................................................................... 84 Amount: ........................................................................................................ 84 Ownership and Shareholding: ....................................................................... 84 Nature of Facilities: ....................................................................................... 84 Customer Profile: .......................................................................................... 86 Line of Business/Main Products: ................................................................... 86 Summary of key Financials: .......................................................................... 86 Liability Details: ............................................................................................. 87 Performance during Last One Year: .......................................................... 87

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3.11. 3.12. 3.13. 3.14.

Account Statistics for the previous year: .................................................... 87 Branch Comments and Recommendations: .............................................. 87 Credit Division Comments and Recommendations: .................................. 87 Prudential Regulations Compliance Checklist related to Credit: ................ 87

Securities against Lending Credit: ................................................................................. 88 Types of Securities: ................................................................................................... 88 1. 2. 3. Pledge: ............................................................................................................. 88 Hypothecation: ................................................................................................. 90 Mortgage and its types: .................................................................................... 91

Guide Line of Credit Policy: ........................................................................................... 93 Cash Department: ....................................................................................................... 94 1. Basic Activities: ................................................................................................... 94 Deposit Cash in Customers Account: .................................................................... 94 Make Payments from Customers Account: ............................................................ 94 2. Types of Cheques: .............................................................................................. 94 2.1. 2.2. Open Cheques: ............................................................................................. 95 Crossed Cheque: .......................................................................................... 95

3. Kinds of Crossing: ............................................................................................... 95 3.1. 3.2. General Crossing: ......................................................................................... 95 Special Crossing: .......................................................................................... 96

4. Cheque Encashment Procedure: ........................................................................ 96 4.1. 4.2. 4.3. 4.4. Receiving of Cheques: .................................................................................. 96 Verification of Signature: ............................................................................... 96 Computer Terminal Process: ........................................................................ 96 Payment of Cash: ......................................................................................... 97

Accounts department: ................................................................................................ 98 1. Activities: ............................................................................................................. 98 1.1. 1.2. 1.3. 1.4. Budgeting: ..................................................................................................... 98 Reporting: ..................................................................................................... 98 Maintaining of Fixed Assets & their Depreciation: ......................................... 99 Miscellaneous Functions: .............................................................................. 99

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Clearing Department: ................................................................................................ 101 1. Clearing House: ................................................................................................. 101 2. Advantages of clearing: ..................................................................................... 101 3. Role of State Bank of Pakistan in clearing: ........................................................ 102 4. Clearing Outward: ............................................................................................. 102 4.1. Procedure: .................................................................................................. 102

Financial Summary of Bank Alfalah Pakistan Limited ........................................... 103 Competitors of Bank Alfalah: ................................................................................... 106 SWOT Analysis of Bank Alfalah Limited: ................................................................ 107 Strengths:................................................................................................................. 107 Weaknesses: ........................................................................................................... 107 Opportunities:........................................................................................................... 108 Threats: .................................................................................................................... 108 Marketing Mix of Bank Alfalah Limited: .................................................................. 109 Product:.................................................................................................................... 109 Nature of Products and Services Offered: ............................................................ 109 Miscellaneous Services: ....................................................................................... 115 Price: ........................................................................................................................ 116 Place: ....................................................................................................................... 116 Promotion:................................................................................................................ 117 Recommendations .................................................................................................... 120 Conclusions ............................................................................................................... 121 References...124

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Commercial Banking Scenario in Pakistan

The function of commercial banking and application of the fundamental principle of the depositor bank relationship have remind essentially the same since about 500 B.C. Bank operation methods and procedures, on the other hand , have undergone a constant process of evaluation because of economic growth, the mounting volume of transaction and greater use of banking feasibilities. At the time of independence there were practically no industries and resources so it was very difficult of Pakistan to run its own banking system immediately. There were 487 offices of scheduled banks in the territories now constituting Pakistan. Therefore in accordance with the provision of India independence Act of 1947, and expert committee was appointed to study the issue. The committee recommended that the Reserve bank of India should continue to function in Pakistan until 30th September 1948. It was also stipulated that Pakistan would take over the management of public debt and exchange control Reserve bank of India on 1st April 1948. Then Indian notes would continue to be legal ender in Pakistan till 30th September1948. By 30th June 1948, the number of offices of scheduled banks in Pakistan decline from 487 to 195. In order to establish a full-fledged control bank the Governor General of Pakistan Quaid-E-Azam Muhammad Ali Jinnah, inaugurated the state bank of Pakistan on July1st, 1948. At the time of independence in 1947, there were 38 scheduled banks with 195 offices in Pakistan but by December 31, 1973, there were 14 scheduled Pakistani commercial banks with 3,233 offices all over Pakistan & 74 offices in foreign countries. Nationalization of Banks was done 1st January 1974 under the Nationalization act 1974, due to certain objectives. But it had negative effects on efficiency of the banking sector afterwards a privatization Commission was set up on January 22, 1991, the commission transferred many banks to the private sector i.e., MCB & ABL. The government approved & permitted the establishment of 10 new private banks in 1991; hence many

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new private banks have incorporated, since then, BANK ALFALAH in one of the namely established private scheduled banks in Pakistan. The fact show that the commercial banking has made tremendous progress and achieve a phenomenal growth since independent and that commercial bank have duly played a vital role as mobilize of people saving to constitute the most important source of financing in country economy. As the result of these contributing methods and practices necessary to handle the increase volume of detail work have been developed while another and quicker method have been adopted in order to cope with the increase volume, which has been accomplished without unduly increasing cost of doing business. During last 20 years we have experience a constant change from the old to the new, from manual to mechanical method and procedure, from old establish practices to current techniques and to a more scientific approach to the solution of the problems brought about day to day changes in business practices. Commercial banks operating in the country can be divided into four distinct categories, private banks, foreign banks, privatized banks and nationalized commercial banks (NCBs). The number of private banks has remained almost constant ever since they commenced operations in early nineties. However, ownership of a number of private banks has changed over the years. Lately, with the takeover of Prudential Bank and Platinum Bank by the new sponsors their names were changed to Saudi Pak Commercial Bank and KASB Bank respectively. Earlier, ownership of Union Bank and Schon Commercial Bank changed. While the new sponsors of Union Bank preferred to continue with the same name, the buyers of Schon Commercial Bank changed its name to PICIC Commercial Bank. Union Bank acquired the operation of Emirates Bank International (EBI) in Pakistan. The scheme of amalgamation was notified by the central bank on September 03, 2002 and Union Bank settled the amalgamation price of US$ 37 million on September 09,

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2002. Union Bank had acquired Pakistan operations of Bank of America in year 2000 and American Express credit card business in Pakistan in year 2001. In the NCBs category two banks Habib Bank and National Bank of Pakistan have been left after the privatization of United Bank. National Bank of Pakistan has been listed at local stock exchanges and parts of its shares were off loaded. The GOP is actively pursuing the privatization of Habib Bank, through sale of its 26% shares along with transfer of management. The remaining shares of the GOP in Muslim Commercial Bank and Bank Alfalah were also sold. The GOP sold majority shares of Allied Bank of Pakistan in early nineties but has not been able to off load its remaining shares in the bank. The consortium comprising of Abu Dhabi Group and Best way Group has acquired 51% shares of the bank along with management control. Since October 2002 the bank has been working under the new sponsors. Meezan Bank was created as a result of merger of Al-Meezan Investment Bank and Societe Generale. The first ever license to operate as a Scheduled Islamic Commercial Bank was granted to Meezan Bank on January 31, 2002. Pakistan operations of Societe Generale were amalgamated into Meezan Bank on May 01, 2002. The number of foreign banks operating in Pakistan has been declining constantly since the GOP decided to freeze foreign currency accounts in May 1998. The total number of foreign banks in the country has reduced to half since the freezing of foreign currency accounts. The positive point is that most of the foreign banks were able to sell their Pakistan operations at attractive prices.

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Bank Alfalah Limited

Introduction:
Bank Alfalah Limited was incorporated on June 21st, 1997 as a public limited company, under the Companies Ordinance 1984. Its banking operations commenced from November 1st, 1997. The bank is engaged in Islamic banking, commercial banking and related services as defined in the Banking Companies Ordinance, 1962. The Bank is currently operating through 389 branches, 7 overseas branches, 120 Islamic banking branches and 1 offshore banking unit as work 240 cities, with the registered office at B.A.L Building I.I. Chandigarh, Karachi. Management of Bank Alfalah accepted the challenge to transform this bank into a highly professional, most efficient & service oriented institution. The management has been successful in fulfilling the undertaken challenge. It has been successful in making a significant contribution to both corporate and retail banking in Pakistan. Over the years, its emphasis on growth has resulted in a strong entity capable of offering high quality services to a wide spectrum of clients, in a highly challenging business environment. Its strategy is to maximize the synergies of branch network through an optimal allocation of financial resources in the face of dynamic challenges of present financial environment. Strengthened with the banking of the Abu Dhabi Group and driven by the strategic goals set out by its board of management, the Bank has invested in revolutionary

technology to have an extensive range of products and services. This facilitates their commitment to a culture of innovation and seeks out synergies with clients and service providers to ensure uninterrupted services to its customers. The bank perceives the requirements of its customers and matches them with quality products and service solutions. During the past ten years, we have emerged as one of the foremost financial institution in the region endeavoring to meet the needs of tomorrow today.

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Bank Alfalah Limited has continued its upward climb in pursuit of excellence. Strengthened by the backing of the Abu Dhabi Group and driven by strategic goals set out by its Board and management, Bank Alfalah Limited increasingly inspires trust and confidence of all its clients. Within a short span of time the bank has carved a significant niche for itself in the banking industry. These achievements have been preceded by concerted effort to provide highest levels of service and value to our customers. The bank aims to further enhance performance standards through implementation of innovations in both products as well as customer care, by discovering newer avenues of client benefit. This customer-focused strategy has enabled Bank Alfalah Limited to evolve as a single source financial service provider of corporate and retail banking services. Bank Alfalah reputation has been built on its tradition of high quality and the expertise of its extremely motivated and qualified staff. With strategic mergers and acquisition, Bank Alfalah has become a leading player in the global banking arena. The Bank Alfalah Limited team comprises of dedicated professionals equipped with a diverse array of skills, vast experience and pro customer attitudes. The management concentrates its energies on making informed economic decisions, translating it into greater returns for our investors and customers. This prudent attitude has created a synergistic organizational structure leading to improvements in profitability and a sustainable competitive advantage for the bank. A Highly Responsive Product Portfolio is not only comprehensive but also customizable to match the needs and preferences of the customers. These characteristics of the portfolio have helped Bank Alfalah Limited to face challenging economic conditions. The product lineup continues to fulfill and satisfy the banking requirements of not just the

conventional consumer, but the demanding financial needs of the corporate sector as well. Today, as Pakistan moves into the 21st century with its ambitious expansion and development programs, Bank Alfalah is here to join the efforts to help the country meet its growth objectives. The bank offers an extensive range of financial services

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specifically designed to cater to the needs of its successful associations with the Government and Private Sector.

History and Present Status of Bank Alfalah Limited:

Bank of Credit & Commerce International (BCCI) was a Pakistan based bank, established by Mr. Agha Hassan Abdi from UBL, in association with U.A.E and Europe. BCCI has its branches in 74 different countries of the world. It had its 3 branches in Pakistan. In 1991, the BCCI was banned, when was accused by European countries that the bank was involved in some illegal operations with Gulf countries. The major reason behind European accusation was that BCCI was of Islamic mode. Therefore, the bank was closed due to international pressure. Then, its 3 Pakistani branches were taken over by the Government of Pakistan, which were named as Habib Credit and Exchange Bank (HCEB) and these were working as subsidiary of Habib Bank Limited. Following the privatization in July 1997, Habib credit and Exchange Bank assumed the new identity of Bank Alfalah on February 25, 1998. It is now Abu Dhabi based bank as the family of H. E. Sheikh Hamdan Bin Mabarak Al-Nahayan purchased 70% of its shares and 30% shares remained with Habib Bank on behalf of Government of Pakistan. Since its inception, as the new identity of H.C.E.B after the privatization in 1997, the management of the bank has implemented strategies and policies to carve a distinct position for the bank in the market place. Since 1997, the bank has made great strides towards growth and profitability. BAL network has expanded from 3 in 1997 to 380 as on March 2010. The deposit base moved from less than Rs.9 billion to over Rs. 354 billion, advance from 5.8 billion to 207 billion. Being a bank that is focused on financing of foreign trade, volume of foreign trade business has grown from Rs. 5.8 billion to over Rs. 254 billion as on December 2010. Charged with the strength of Abu Dhabi consortium, and under the leadership of His Highness Sheikh Nahayan Mabarak Al-Nahayan, Minister of Higher Education and Scientific Research, Government of Abu Dhabi, and a prominent member of Royal

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Family, the bank is energized with the vision, envisaging the development of various sectors in Pakistan. Bank Alfalah is a profit generating organization just like the other banks or organizations. The bank borrows money at low rates and lends it on higher rates for generating profits and run the business. So Bank Alfalah is also a profit generating organization but the most important thing and the principle, which is followed in the bank, is the customer satisfaction. This is the main principle of Bank Alfalah. This property categorizes it into a caring bank. So even it is the profit generating organization but the first priority is the customers. Thats why from 9:00 am to 5:00 pm the bank is open for the customers. Even in the lunch breaks the cash counters are open to provide the service. So the Bank Alfalah is a customer-oriented organization.

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Vision Statement

To be the premier organization operating locally and Internationally that provide the complete range of the Financial services to all segments under one roof.
Our vision is to become a leading financial institution offering complete banking solution to our clients and to maintain a systematic focus in areas where we have a competitive advantage. Our focus is on improving performance in each of our businesses to achieve consistent and superior returns for our highly valued stakeholders.

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Mission Statement:

To develop and deliver the most innovative products, manage customer experience, deliver quality service that contribute to brand strength, establishes a competitive advantage and enhance profitability, thus providing value to the stake holders of the bank.

Our mission is to maintain a competitive edge in quality banking, customer service and profit performance. Our activities are geared towards making Alfalah a responsible corporate citizen. The emphasis on Quality and Innovation will remain our key mission. We will continue to strengthen our position as the leading provider of quality financial services in Pakistan.

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Objectives of Bank Alfalah Limited:

No organization is complete without objectives. It is the end towards which all the activities of an organization are directed. Profit generation is the main objective of any organization. Mainly objectives of Bank Alfalah Limited are:
1. Bank Alfalah believes in the phrase that Customer comes first. BAL objective is

to please its customers by fulfilling the financial needs as best as possible. They believe in placing their client at the center of the business and all of the products and services. . For this the management has adopted the strategy of
Caring for you Our Customers

2. To maintain a competitive advantage in quality banking. Alfalah strives continually on the development of new areas of activities to distinguish itself in the market place along with traditional banking activities of resource mobilization and credit disbursement. 3. To develop and deliver the most innovative products. 4. To deliver quality service that contributes to brand strength. 5. To increase its deposits. 6. To achieve service excellence. 7. Banks focus is on foreign trade as primary niche of business. 8. Automation and computerization of all its banking activities. 9. Development of the skills of its employees through training. It makes positive contribution to the service culture of the banking system as a whole. 10. To get maximum share of the market 11. To price the products optimally 12. To expand more the network of branches in several other cities of Pakistan as well as in the other countries of the world. 13. To reinforce a corporate culture that fosters learning, creativity and flexibility.

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Nature of the organization:

Bank Alfalah is a profit generating organization just like the other banks or organizations. The bank borrows money at low rates and lends it on higher rates for generating profits and run the business. With the mission to provide all encompassing banking to the customers, Bank Alfalah has a uniquely defined menu of financial products. Currently they offer one of the most comprehensive portfolios of personalized financial solutions that are custom-tailored to serve the requirements not only of conventional customers but also fulfill the needs of the corporate sector:

1. Car Financing 2. Rupee Travelers Cheques 3. Online Banking 4. SME Financing 5. Money Gram Remittance Services 6. Credit Cards 7. ATMs 8. Home Financing 9. Corporate and Structured Financing

Number of Employees:
The working environment of the Bank Alfalah is very cooperative and secure. All of the employees are very cooperative with each other. Branch manager is at easy access to all the employees of the bank. Similarly all the other senior employees are very cooperative with the junior employees and try to help them out in every possible way. This concerned behavior of the senior staff towards the junior staff motivates the employees and make them feel secure and easy to work. In the bank branch manager plays a role of leader who is there to take initiatives. He/she has authority to make decisions and deal the officers of range 1,2 and 3. Branch

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manager represents each and every employee of the branch and that is why most of the time he performs the role of leader in the branch. This is why number of employees of the Bank Alfalah is increasing every year. Total number of employees (other than Outsourced) in 2006 was 6.543 M and at the closing of 2010 it becomes 7.571 M. In total it is 15.40 % increase from 2006.

Product line:

BAL Products

Accounts

Hilal Cards

Current Simple Current Kamyab Karobar

Saving PLS Account

Debit Card Silver Gold Royal Profit Account

Credit Card

Basic Banking Mahana Amdan

Kafayat Account

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Organizational Structure of Bank Alfalah:

H.E.Sheikh Hamdan Bin Mubarak Al Nahayan is chairman of Bank Alfalah Limited. List of board of directors and executives given after Chairmans message.

Chairmans Message:
H.E. Sheikh Hamdan Bin Mubarak Al Nahayan

Chairman

"Our core philosophy of honesty, transparency in customer dealings, product innovation, excellence in customer service and our commitment to being a responsible corporate citizen pervades this website
Since the inception of Bank Alfalah, by the grace of the Almighty, we have moved rapidly in expanding our branch network and deposit base, along with making profitable advances and increasing the range of products and services. We have made a breakthrough in providing premier services at an affordable cost to our customers. Keeping in view our valued clients and the need for constant and effective communication of information, we have designed this website to be as user-friendly as possible. As we pursue the path of excellence, customer satisfaction remains our priority. It is only when we know our customers better, can we deliver a higher quality of services, thereby adding synergy to our existing management expertise, financial strength and profitability. This is yet another channel of communication for the delivery of quality products and services to enhance value to our stakeholders. H.E.Sheikh Hamdan Bin Mubarak Al Nahayan

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Board of Directors:
H.E. Sheikh Hamdan Bin Mubarak Al Nahayan Chairman

Mr. Abdulla Nasser Hawalileel Al-Mansoori Director Mr. Abdull Khalil Al Mutawa Director

Mr.Khalid Mana Saeed Al Otaiba Director

Mr. Ikram Ul-Majeed Sehgal Director

Mr. Nadeem Iqbal Sheikh Director

Mr. Sirajuddin Aziz Director & CEO

All above shown personalities form governing body of Bank Alfalah Limited. Decisions and changes made and implemented by them.

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List of Executives:
Mr. Sirajuddin Aziz Chief Executive Officer

Mr. Parvez A. Shahid Co-Chairman Central Management Committee

Mr. Shakil Sadiq Chief Operating Officer

Mr. Talib Rizvi Group Head Retail & Middle Market, North

Mr. Adil Rashid Group Head Consumer Finance

Mr. Shahab Bin Shahid Group Head Retail & Middle Market, South

Mr. A. Wahid Dada Group Head Operations

Mr. Adnan Anwar Khan Group Head Retail & Middle Market, Central

Mr. Nadeem Ul Haq Group Head Technology & Operations

Mr. Mohammad Yousuf Group Head Credit

Mr. M. Iqbal Saifi Group Head Credit Monitoring

Mr. Arfa Waheed Malik Group Head Corporate & Investment Banking

Mr. Ijaz Farooq Group Head Islamic Banking

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Mr. Bakhtiar Khawaja Group Head Learning

Mr. Yasar Rashid Group Head Audit & Inspection

Mr. Zahid Ali H. Jamall Chief Financial Officer

Mr. Falak Sher Chief Compliance Officer

Mr. Tariq Mir General Manager International Business

Mr. M. Mudassar Aqil General Manager Human Resource & Quality Assurance

Mr. Shahid H. Kazi General Manager Strategic Planning

Mr. Ather Shehab General Manager Establishment & Administration

Mr. Haroon Khalid General Manager Risk Management

Mr. Hamid Ashraf General Manager Legal & Company Secretary

Mr. Imtiaz Ahmad Sheikh General Manager Information Technology

Mr. Hamid M. Mirza Head of Marketing

Mr. Nasim Ahmed Head of Equity Portfolio

Mr. Umer Hayat Head of SAM South

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Mr. Muhammed Omer Dogar Head of SAM North

Mr. Khurshed A. Khair Head of Special Projects

Mr. Zafar Iqbal Head of Treasury

Mr. Syed Hassan Head of FI

Mr. Yawar Ali Gulani Head of Systems, Policies & Procedures

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Branch Setup:

Branch Manager

Credits

Human Resource

Info Technology

Accounts

DMS Operations

Remittances

A/C Opening

Cash Dep.

Agri Financing

Car Financing

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Bank Alfalah Limited Policy Formation:

Since the inception of Bank Alfalah Limited in 1997, by the grace of almighty, the bank has moved rapidly in expanding its branch network and deposit base, along with making profitable advances and increasing its range of products and services. It has made a break-through in providing premier services at an affordable cost to our customers. Managerial policies followed by the bank have a direct contribution in its success. The Board and Management of the Bank have implemented strategies and policies to carve a distinct position for the Bank in the market place. In a bid to satisfy shareholders and valued clients of Bank Alfalah, the management initiated the process of realization of the Bank's vision by consolidating its financial position and creating a large and diversified business base. Bank Alfalah has made notable progress in business volume, efficiency, and profitability following its increased involvement in trade finance, commercial lending, and foreign exchange and money market operation. Major policies that have been made and implemented at Bank Alfalah are: Consumer Banking Policy Alfalah policy regarding consumer-banking policies includes the development through the electronic consumer banking operations. Likewise, Bank Alfalah has created a niche for itself in the marketplace. It is planning to introduce new consumer products like credit cards, e-banking etc.

Lending Policy:
Bank Alfalah pursues a conservative yet dynamic credit policy. This strategy has enabled the bank to have a high quality risk portfolio. Bank prefers to finance exporters because of less risk involved. Bank Alfalah manages the credit risk, liquidity risk, market risk and other operational risks very efficiently. For this very purpose Bank Alfalah has got an effective credit line proposals system to be sanctioned to the clients on demand.

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Selection of Clients:
Management is very selective of clients. All of the references are carefully checked to learn about a potential client before establishing a relationship. References are excellent sources of new accounts as they give an opportunity to learn about a potential client before establishing a relationship. This policy helps in protecting the integrity of the bank. It ensures good relationship with the clients.

Services and Product Polices:

Bank Alfalah provides a vast variety of services to its clients. Some of those policies are discussed below:

Credit Facility:
In this service the loans are provided to the customers by the bank to meet revenue shortfalls.

Stop Payment Instructions:

It is one of the most important services provided by the bank to its clients. In case the account holder has lost his/her cheque he can issue the stop payment instructions to the bank. The bank till further instructions will not honor the cheque.

Deposits:
The bank offers different types of Deposits to its account holders. 1. Alfalah Musharakah Saving Account 2. Current Account 3. Musharakah Time Deposits On PLS Basis 4. Drafts, Telephonic Transfers, Pay Orders These are the facilities that the bank offers its customers and, at times, to the people who do not maintain an account with the bank, that is, ordinary people. For offering these services the bank charges commission besides the government taxes and duties.

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Trade Department Policy

Focus of Bank Alfalah is on Foreign Trade as its primary market of business. It maintains high emphasis on enlarging its Correspondent Banking network besides aiming to enhance the scope and level of cooperation with existing correspondents. The Trade finance department has efficiently done management of the changing trade policies by the central bank over there.

Marketing Policy:
Bank Alfalah inverts heavily for the marketing policies and orientation, for the publicity of its new products/services. It uses television advertisements, newspaper as well as various promotional schemes to attract customers. The Bank sponsors a number of sporting and community development initiatives to play its part as a responsible corporate citizen

Promotion and Incentives:

Bank hires officers in range 1. Then depending upon their job performance they are promoted to next range. More facilities and increments are given along with promotion. The bank gives a car facility to the officers of range 5. Banks policy is to give cash rewards and salary increments for increasing the employees satisfaction. Also with the expansion of the branch network growth in the current era, more and more opportunities have been provoked not only for the young generation but also for the employees of the bank.

Accounting Policies:
Bank Alfalah has adopted almost the same accounting procedures that other financial institutions are adopting at this time. These accounting procedures or Accounting policies are made according to Generally Accepted Accounting Principles, the GAAP. The process flow and the usage of the policies in the day wise routine are mandatory for all the employees working in the specified departments at the branch.

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Recruitment Policy:
Hiring is mainly of two types i.e. direct hiring and promotion from lower levels. Banks policy is to hire suitable candidates. By suitable candidates bank refers to candidates having proper educational qualification, experience and background. It is the policy of the bank that President of the bank will be the representative of major stakeholders/owners. Board of Directors is representative of sponsors. Bank is reluctant in making direct appointment of senior executives. EVPs are promoted from lower levels. Every year Bank Alfalah opens its doors for about 30 fresh post-graduates to join the prestigious ranks of Management Trainee officers with the Bank. The MTO scheme is a highly competitive and sought after induction scheme, in which short-listed applicants appear in a written test followed by a panel interview. Successful candidates then receive comprehensive training in essential areas of branch banking at the Banks state-of-the-art training facility at Lahore and Karachi, prior to their posting at various branch locations. Preferred educational background for entry into the MTO scheme includes an MBA degree, MA Economics or M.Com from reputable Pakistani or foreign institutions with GPA of 3 plus, or equivalent. Strong personal character, as well as communication and interpersonal skills are essential pre-requisites to succeed as an MTO.

Training and Development Policy:

Policy of Bank Alfalah is to take special interest in recruitment and training. This training is been given in two instances, i-e, the Off-job training and the On-job Training. To impart technical skills to its staff Training and Development Center offers programs in several skill areas. Its employees attend seminars and courses offered by Institute of Bankers. Alfalah also offers various computer-training courses to its employees. It is obligatory for each staff member of the bank to attend a minimum number of training courses during the course of a year. Wherever the Training Department is unable to provide focused training for certain groups of staff, reputable external training providers are invited to fill the gap

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Quality assurance services:

Service excellence is one of the priorities of Bank Alfalah. A separate quality assurance department is to be established as well very soon for the removal of little flaws that are still prevailing at some of the branches regarding facilities for the consumers. The focus of the bank is to develop new areas of activities along with traditional banking activities of resource mobilization and credit disbursement.

Growth Policy:
Bank Alfalah emphasizes on growth along with providing best quality customer service. Banks policy is to maximize the synergies of branch network through optimal allocation of financial, human and other resources to compete in the marketplace.

Liquidity Policy:
Bank Alfalah maintains positive and healthy liquidity. Banks policy is to keep surplus liquidity in fixed income securities issued by the Federal Government of Pakistan. If necessary it can be easily converted into cash.

Investments Policies:
Bank Alfalah investment policies are based on federal and provincial securities, debentures, and participation term certificates treasury bills and blue chip share of joint stock companies.

Job Satisfaction:
Job satisfaction is the major important factor to be considered while evaluating any organization. To evaluate an organizations strength and repute in the industry, job satisfaction is the key factor as well like that of growth and development in the monetary terms. During my internship program, I observed being in touch with most of the employees over there, that all the employees are working with devotion that is the basis for job satisfaction. In addition all the employees are satisfied with the working ambiance, with

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the salaries and with the increments and promotions. Only thing to be mentioned out over here is the workload and the employee timings for their job. Some of the employees are over burdened with the work. But that does not impact the overall job satisfaction of the organization. Bank takes much care of its employees because they are precious assets of it. Bank celebrates birthdays of all employees, arrange trips and give them opportunity for recreation and enjoyment.

Bank hires officers in range 1. Then depending upon their job performance they are promoted to next range. More facilities and increments are given along with promotion. The bank gives a car facility to the officers of range 5. Banks policy is to give cash rewards and salary increments for increasing the employees satisfaction. Also with the expansion of the branch network growth in the current era, more and more opportunities have been provoked not only for the young generation but also for the employees of the bank. At Bank Alfalah the employees are very much satisfied with the job and the overall working conditions of the bank, so in due response, the bank is enjoying high efficiency in managing the time delays in reporting and working operations.

Management at Bank Alfalah Limited Hasilpur Brach:

Management at Bank Alfalah Ltd HSP branch is very much keen towards maintaining the decorum of the cooperative culture within the organization and also with the clients of the bank. The way managers treat the employees and an operative is outstanding at bank Alfalah. This is the reason why each and every employee is pretty much satisfied with the job.

Management Styles:
Management must have to adopt some administrative style to get all the activities to be done effectively and efficiently. As far as the management styles at Bank Alfalah HSP Branch are concerned, there is both centralization and decentralization to some extent.

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Management refers to the universal process of effectively and efficiently getting activities completed with and through other people. It is a process by which certain basic functions, that are planning, organizing, leading and controlling, are performed to achieve the desired objectives of the organization. These functions are being performed at three levels in Bank Alfalah.

Managerial level:
Administrative style of Branch Manager is authoritative. His authoritative style is the requirement of administration. For the implementation of strategies and getting all the activities to be done properly with an organized environment, unity of command was the requirement of the time. In his absence, I observed the environment of uncertainty and deregulation in the bank to a little extent.

Department Head level:

Department heads are responsible for the overall operations of the department assigned. There is a sign of good delegation of authority for decision-making in Alfalah Bank at this level. Department managers always ask his subordinates before referring the solution to a problem to the Branch Manager. So at this level employees are very much contended to their work. This is also an example of decentralization.

Staff Level:
At the staff level, as employees are satisfied with the work assigned and authority structure, so management at this level is concerned to the decisions of the department heads level.

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My Duties and Learning at Bank Alfalah Ltd (HSP)

For my summer internship I have chosen Bank Alfalah Limited. I worked in Bank Alfalah Limited Hasilpur Branch for about more than six weeks. There I worked in different departments under the supervision of kind staff of Bank Alfalah Hasilpur Branch. Hasilpur Branch has got a wide range of excellent services departments been supervised under the best ambiance and a very well educated staff. The following list is showing the main departments of BAL Hasilpur Branch in which I worked during my period of internship.

Alfalah Bank Hasilpur Branch

Operations Department Acc Opening Remittances Cash Accounts Clearing Doc Mgt System

Credit Department CAD Admin Car Financing Agri Financing Credits

Now, I am going to discuss these departments with which I was in touch during my internship program.

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Remittances Department:
In first week from Monday I regularly started my work in Remittances department. In this department I learnt these things: 1. Filling and use of Deposit Slips 2. Filling and use of Cash Online Slips 3. Making of Demand Drafts 4. Filling and use of Cheque Deposit Slips 5. Cheque Filling 6. Filling of Check Online Slips 7. Filling of Credit Card Payment slips 8. Money Gram All these are described below in detail and specimen also shown. I learnt all this in my 1st week which described below in my report.

Account Codes:
Before filling any slip a person must known with the account codes. Different types of accounts have different codes and normally accounts differentiate on basis of these accounts. These are: 1. Current Account Code: 01 2. Profit/Loss Account Code: 02 3. Royal Profit Account Code: 029 4. Business Account Code: 01875 5. Kafayat Account Code: 0599 6. Basic Banking Account Code: 01899

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1. Deposit Slips:
Check Deposit Slips are used by the person who wants to deposit money in his account or any other persons account. This slip require Title of account and account no in which person wants to deposit money. It is not compulsory that person who is using deposit slip for depositing money must have his own account in bank. It can also used by the person who dont have account and he has to pay cash to any other person but that person refuse to take cash and ask the person to deposit money in his account. In this case the person who is paying must know the Title and Account no of Payees account. There must be no cutting and overwriting on deposit slip. In case of cutting and overwriting signature of the person who is depositing money must be taken on place of cutting and overwriting. This prevents the depositor and banker from any problem on time of Auditing. Deposits slip filling method shown in Fig.1

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Figure 1

2. Cash Online Slips:

Cash Online Slips are used for the purpose of sending cash online. These slips are mostly used by the people who dont have account in Bank Alfalah and they have to send cash to any persons who have account in any Branch of Bank Alfalah in any other city over the country. Cash online slip is divided into two major columns; one column consists of detailed information of payee. Account number, branch in which payee has account and title of payee account. Second column consists of amount in figures and words and information of person who is sending cash. Information of cash sender that included in cash online slip include his name, National Identity Card number, Address, Contact number and signatures. Cash online slip filling method shown in Fig.2 below.

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Figure 2
A photocopy of National Identity Card of customer who is sending cash also attached with cash online slip. One thing must keep in mind that NIC whose photocopy is attached not expired. Signature of customer that taken on cash online slip must matched with the signatures that are printed on customers NIC. This is to confirm the authenticity of customer. There must be no cutting and overwriting on cash online slip. In case of cutting and overwriting signature of customer who is using this service to send cash online must be taken on place of cutting and overwriting. This prevents the Customer and Banker from any problem on time of Auditing.

3. Demand Drafts:
Demand draft is draft of a specified amount of money that will be paid to some specified person named as payee on certain date. DD prepared on demand of payee. Suppose if a person purchased some items of Rs. 100,000 from some company such as Nestle Pakistan. All the purchases made on account and purchaser promise to pay after some period. On a certain date Nestle Pakistan demand a draft of Rs. 100,000 from purchaser to recover their outstanding payment. So the purchaser will prepare DD of Rs. 100,000 using the Payees title. In this example DD will be prepared by name of Nestle Pakistan Limited. By accepting DD Nestle Pakistan can withdrew money from any Branch of Bank Alfalah over the Pakistan. Demand drafts can be used by both persons who is account holder or who dont have account in Alfalah Bank. DD form consists of four major portions. 1. First portion includes Name of payee, City of Payee, and Amount in words and figures. 2. Second portion is for beneficiary details but this portion not used while filling DD form.

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3. Third portion is for Account holder which includes the details of purchaser such as Title of Account of purchaser, Account number, Account Type, Purpose of remittance ( purpose for which Demand Draft is formed as in last example purpose of remittance may be payment of Dairy Products ). 4. Fourth portion is for non account holder. This portion also includes detail of non account holder such as Name, NIC number and Address. Besides these portions People who came with cheque for making of DD, bank mentions the cheque number on top of DD form to avoid any future problems. During my working hours a person came and he gave me a cheque of specified amount that will paid to some company for purchases made by him. He asks me to prepare a Demand Draft in name of that company. I filled the DD form using the details given on cheque and attached that cheque with DD form. I took the signature of maker and stamped the form and sent it for further proceedings. In case person came with cheque so cheque must be attached with DD form. There must be no cutting and overwriting on Demand Draft. In case of cutting and overwriting signature of maker of DD who is using this service must be taken on place of cutting and overwriting. This prevents the Maker and Banker from any problem on time of Auditing. People who have bank account and use demand draft to make payment may provide cheque but they prefer DD. Reason for this is demand draft is secured as compared to cheque. Reason that why companies Demand a Draft: Some time companies dont want to show their account number to customer to keep them secured from all sides, so in this case companies demand draft from customer to get their payment. Making of Demand Drafts show in Fig. 3

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Figure 3 In above specimen last two filled portions are for maker of DD. 1st is for Account holder and 2nd is for Non Account holder. One can be used at a time.

4. Cheque Deposit Slips:

Cheque deposit slips are used when a person want to deposit cheque taken from any other person in his own account. These are also used when a person want to deposit his own cheque in any payees account but for this Bank account of same Branch is essential. These slips filled with the Account Title, Account number of payee in which money will be transferred. Amount in words and figures and date must be mentioned on these slips. There is also a column where we write cheque number of cheque that will be attached to these slips before further proceedings. Signature of person who came to transfer money in payees account or any other account must be taken on slip. These slip consist of two copies; one is bank copy and other is customer copy. Bank copy is attached with cheque and proceeds further and customer copy returned to customer after signing by authorized person and stamping by the Bank Alfalah. There are no charges of transferring money to any account and this service only provided by Bank Alfalah. If the money that customer transferring is 500,000 or more than 500,000 then another form attached with this slip and that is only for bank usage. If a person came with cheque of Bank of Punjab or any other bank rather than Alfalah and want to deposit that cheque in his Bank Alfalah account so he will use cheque deposit slip. In this case Bank Alfalah will collect money from that bank whose cheque provided by customer and will deposit money in that customers account. There are some charges of urgent collection that bank will deduct from that persons account. If the cheque provided by customer for collection is of any other bank rather than Alfalah, these cheques will be listed in clearing. Collection in Area of Tehsil Hasilpur is handled by a company named as NIFT. If cheque of any other bank is outside the area of NIFT then these cheques will be listed in OBC (Outward Bill for Collection). A notice of

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OBC sent to that bank to ask them to make payment as soon as possible. If the bank didnt make payment within a week then again a notice sent to that bank called Reminder, to remind them that they have to make payment to Bank Alfalah. OBC of Bank Alfalah considered as IBC (Inward Bill for Collection) for other bank, and OBC of other bank in counter to Alfalah considered as IBC for Alfalah. OBC notice contain cheque number, amount, and OBC number. OBC notice sent to branch of Alfalah that is in area of collection to collect money on sender branch behalf. If Alfalah branch didnt exist then notice will be directly sent to that bank of which cheque provided for collection. This collection takes time of at least one week. First notice of OBC is shown on next page:

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Avoid Cutting and overwriting. In case of cutting and overwriting take signatures of customer. Specimens are shown in Fig. 4

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Figure 4

5. Cheque Filling:
A cheque is a bill of exchange drawn on a specified banker and not expressed to be payable otherwise than on demand. If a person wants to with draw money from bank using cheque he will fill cheque with his name or with word of self in place of Pay, and fill the amount in words and figures. Cheque must be signed by that person one times from front and two times from its back. There must be no cutting and overwriting on Cheque. In case of cutting and overwriting signature of cheque holder must be taken on place of cutting and overwriting. Two time cutting is acceptable with the customer signature but if cutting on cheque is more than two times than cheque not accepted by the bank and became useless. This prevents the Customer and Banker both from any problem on time of Auditing. Specimen of cheque is given in Fig. 5

Figure 5 6.

Cheque Online Slips:

Cheque transfer (deposit) slip is also used for cheque online purpose. In cheque online and cheque transfer the only difference is that cheque transfer the transfer of cash is between the accounts of same Branch of Bank Alfalah but in case of cheque online the transfer of cash is between the accounts that are in two different branches of Bank Alfalah over the Pakistan.

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Filling of this slip is same as of cheque transfer slip, the only difference is that in cheque transfer slip as we know that accounts are of same branch so branch code not necessary with account number, but on the other hand in cheque online accounts are of two different branches so Account Number must be written with that Branch Code in which Branch payee has account. All other details such as Account Title, Amount in words and figures, cheque number are same as of cheque transfer slip. Under taking of customer in form of signatures is also necessary on cheque online slip. Cheque is also attached with these slips before any further proceedings. If the money that customer transferring is 500,000 or more than 500,000 then another form attached with this slip and that is only for bank usage. There must be no cutting and overwriting on Cheque online slip. In case of cutting and overwriting signature of customer must be taken on place of cutting and overwriting. This prevents the Customer and Banker both from any problem on time of Auditing. If the branch code written with payees account number differ from the branch code written with the account number on left bottom corner of cheque under account title that will be considered as online cheque. Filling of cheque online slips and cheque used for this purpose is shown on next page in Fig. 6.

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Figure 6

7. Credit Card Payment Slips:

Credit Card Payment slips are used for the payment of credit card. Payment can be made in form of cash or can be transferred from any account. Credit card slips includes following heads: 14 Digit credit card number Name of card holder Amount in words and figures Undertaking (signature) of customer After filling the slip and signing by the customer, customer can make payment on cash counter. Cutting and overwriting must avoided on these slips and in case of cutting and overwriting signatures of customer are necessary on place of cutting and overwriting. Specimen of credit card payment slip is given in Fig. 7

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Figure 7

8. Money Gram:
Money Gram is a company that is providing services to send or receive cash from any country within a minute. It is operating in 188 countries over the world any provide fastest services to send or receive money among its competitors. Bank Alfalah also has authorization and using money gram services. Using this service customer who dont have account in any bank can receive money from any part of world outside Pakistan. The person who will send money told a money gram code (Bank Alfalahs money gram code consist 8 Digits) to concerned person that will receive money. Cash payment voucher also attached by bank with money gram, it contains bank code (1060300701) and amount in words and figure that customer will receive. Money gram slip has these heads: Money Gram Code/ Reference Number Receivers Full Name and address Code of concerned branch of Bank Alfalah Post code of City Phone Number of Receiver Sender Name Signatures of Customer

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A photocopy of National Identity Card is also attached with money gram form before any further proceedings. Signatures of Customer must be matched with his NIC signatures this confirms the authenticity of receiver. If money gram is more than Rs. 50,000 then a it is necessary that receiver must be verified from NADRA. This verification from NADRA is attached with money gram form and called VERSYS. This measure is taken to prevent frauds. Money Gram shown below in Figure 8;

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Account Opening Department:

In this department I learnt basic requirement of account opening and some information about account types. Each account will be allotted a distinctive number, which should be quoted in all correspondence with the bank relating to the account. The account shall be subject to applicable law of Pakistan and the prevailing rules, regulations and directives of SBP. If the event, at any time, an account is opened with incomplete documents or information, the bank may restrict the operations of such account till such time that all the required information or documentation is provided to the bank.

Basic Information about Account:

Basic information regarding account is described below shortly.

1. Minimum Balance:
Customer shall maintain minimum credit balance in the special deposit accounts (other than regular saving accounts) as may be prescribed by the bank from time to time. If the customer does not maintains the minimum balance with the bank the bank will prevails the schedule of charges for not maintaining minimum balance requirement.

2. Deposits:
Cash deposits in the account should be accompanied with banks standard form for cash deposits showing the correct titles and account number to be credited. Cheques of any other account can also be deposited in account. Cheque of any other bank can also be deposited in customer account. In this case bank will collect money from other bank on behalf of customer.

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3. Withdrawals:
Withdrawals from the account shall be made by using cheque book / Debit card supplied by the bank at request of the customer. The customer shall ensure the safety of cheque book. In case of lost the customer shall notify the bank in writing.

4. Statement of Account:
The bank shall at six month or quarterly or at such another interval as may be agreed send to the customer statement of account and the customer shall check the entries made therein. In case of any discrepancy or error in the statement of account, the customer shall notify the bank within 14 days of receipt of the statement of account. Statement of account will not be sent to the customer whose account has been dormant. In case of error the bank will notice the error and take action to remove the error.

5. Closure of Account:
The bank reserves the right to close the account by fiving 14 days notice to the customer to the right to close the account by fiving 14 days notice to the customer. On closure of account the customer shall return to bank unused cheques duly cancelled by drawing two horizontal lines and ATM card, Credit Card and Debit Card after cutting them in half.

6. Stop Payment Instructions:

The bank may stop payment instructions from the customer if a cheque is reported lost or stolen, by providing the necessary details of lost/stolen cheque. Customer will give the notice to the bank verbally or in written.

7. Death of Customer:
In case of death of an individual customer, no withdrawal from the account will be permitted by the bank after receiving the notice of customers death.

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Types of Accounts:
There are two major types of accounts which are: 1. Current Account 2. Saving Account Now the details of these account which I learnt given below;

1. Current Account:
Current account may be opened with an initial deposit as may be prescribed by the bank. No interest or profit shall be payable on current account. The current account shall not be overdrawn except by the prior agreement with the bank. In the event of the bank permitting in its sole discretion, to allow the customer to overdraw the account the bank shall charge mark up/interest on the overdrawn amount at its prevailing lending rate. The customer shall repay the overdrawn amount with interest. Where overdraft or any other banking facility is being provided by the bank in the account, credit received in the account, shall be applied first toward the payment of interest, and charges, and then toward the payment of principal amount of overdraft or any other banking facility. Any overdraft facility approved by the bank may be disallowed by the bank if customer fails to perform his obligations. Current account further has some types which are mentioned here; 1. Simple Current Account 2. Alfalah Kamyab Karobar Account 3. Basic Banking Account
4.

Foreign Currency Accounts

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Details of these accounts given below;

1.1. Simple Current Account (S.C.A):

Simple current account can be opened by depositing 5000 as per minimum requirement by the Bank Alfalah Limited. The customer must maintain average of 5000 during each month, but if customer fails to maintain the minimum average balance bank will charge 50 Rupees to customer for not maintaining the balance. For example if a customer deposit 200,000 on start of month any then withdraw money, the average will be more then 5000 for each day of month. The bank will charge nothing to this customer but if customer having less average he will be charged. Cheque book is free and unlimited in this account. No interest or profit shall be payable on simple current account by the Bank Alfalah. There will be no deductions (of ZAKAT, USHR etc.) from simple current account. Code which is used for simple current account is 01. Any single person, partnership or company can open simple current account by full filling the requirements of account opening. In Current Account Alfalah is facilitating its customers by providing them facility of free cash and cheque online from both sides Alfalah to Alfalah.

1.2. Alfalah Kamyab Karobar Account (A.K.K.A):

Minimum cash requirement to open AKK account is 5000. In this account customer did not need to maintain the minimum average balance for every month. There are also no deductions from this account. Cheque book is free and for the person having AKK Account. No interest or profit shall be payable on simple current account by the Bank Alfalah. In Current Account Alfalah is facilitating its customers by providing them facility of free cash and cheque online from both sides Alfalah to Alfalah.

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1.3. Basic Banking Account (B.B.A):

Alfalah is facilitating poor people who are unable to pay 5000 for account opening. Basic Banking Account can be opened by depositing 1000 minimum balance as per requirement of Bank Alfalah Limited. In this way the cash from poor people will also enable to circulate in economy and to contribute in economy progress. Customer using this account can only withdraw or deposit money two times in his account free of cost. On third deposit or withdrawal customer will charged 150 Rupees for each deposit or withdrawal. No interest or profit shall be payable on this current account. There are no deductions from this account. On lines are also free in this account.

1.4. Foreign Currency Account (F.C.A):

In Foreign Currency Accounts dealings of Alfalah Bank Limited is in foreign currency all in all. Foreign Currency Accounts opened and maintained subject to local laws and regulations in force from time to time, including foreign exchange control regulations and directives of State Bank of Pakistan and Government of Pakistan. Profit/Interest on Foreign Currency saving Account will be paid as per determined frequency of foreign currency account product. No profit will be paid on foreign currency current account. Withdrawal from foreign currency account shall be based on availability of foreign currency in bank. The bank may decline foreign currency notes for deposit in foreign currency account. The bank shall not be liable for any exchange loss resulting from any transfer of balance from foreign currency to Account holders account in another currency.

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2. Saving Account:
The amounts deposited in PLS saving account shall be on profit and loss sharing basis. The Banks determination of profit or loss shall be final and binding on the customer for all purpose. The deposit received by the bank in PLS saving account will be used by the bank in any manner the bank considers appropriate. Profit/Loss earned in PLS saving account will be credited / debited in the account as per determined frequency of saving account product. ZAKAT whenever applicable shall be deducted on valuation date from applicable accounts having balances in excess of the exempted limit as declared for that particular ZAKAT year. If a person want to take exemption, the declaration of proforma is necessary but at least one month prior to the valuation date of ZAKAT. ZAKAT will be deducted as per ZAKAT and USHR ordinance 1980. Saving Account further has some types which are mentioned here; 1. Profit & Loss Simple Account 2. Kafayat Account 3. Royal Profit Account 4. Alfalah Mahana Account Details of these accounts given below;

2.1. Profit & Loss Simple Account (P/L.S.A)

Simple profit and loss account can be opened by depositing minimum 5000 balance initially. Profit is calculated and deposited at the end of each year on all deposits of year. Profit rate used in P/LS account is 5% per year. There are deductions such as ZAKAT etc from saving account. Taxes are also applied on these accounts.

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2.2. Kafayat Account:

Minimum balance requirement from Alfalah Bank Limited to open this account is 10,000 Rs. In this account profit or interest calculated and deposited to customer account. Profit calculated on average balance of month and deposited in customer account at end of each month. Profit rate of this account is 8%. There are deductions such as ZAKAT etc from saving account. Taxes are also applied on these accounts.

2.3. Royal Profit Account (R.P.A):

Royal Profit Account in Bank Alfalah Limited is opened by depositing minimum 50,000 initially. In this account profit/interest calculated on daily basis on amount which is in that account on that day. Suppose on 1st April a person have 100,000 in his RP account the profit will be calculated on 100,000 and on 2nd April if same person have 1 Million in his account so on 2nd April profit will be calculated on 1 Million rather than calculating on average. Profit/Interest rate which is applied is 5% per month. By calculating on daily basis profit rate would be 5%/30. There are deductions such as ZAKAT etc from saving account. Taxes are also applied on these accounts.

2.4. Alfalah Mahana Account (A.M.A):

Alfalah Mahana Account is opened by depositing 50,000 initially as per minimum requirement of Bank Alfalah Limited. Deposit fixed for a year in this account. Person having Alfalah Mahana Account cannot with draw money from his account before a year. Profit and Interest also calculated and deposited in customer account. Profit rate is 10.5% and is in case if customer didnt withdraw money within a year. If customer withdrew money before a year the profit rate will became simple. In this case the profit calculation rate would be 5%. There are deductions such as ZAKAT etc from saving account. Taxes are also applied on these accounts.

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Entities Types who can open Current/Saving Account:

There are some entities that can open any type of account from head of Current Account or Saving Account. Entities are listed below: 1. Individual 2. Illiterate 3. Partnership 4. Sole Proprietorship 5. Corporate 6. Trust/Foundations and Societies There are some document requirements from these entities to open any account Current or Saving in Bank Alfalah Limited. These requirements are given below:

1. Individual:
Copy of CNIC. Proof of Employment and or of salary. Vernacular Form in case of signatures of the customer is in Urdu. Customer cannot get ATM card if his signatures are in Urdu. This is major disadvantage of Urdu signature.

2. Illiterate:
Two passport size photographs. 1 to be affixed on the AOF (Account Opening Form) and other on the Specimen signature card also 2 thumb impressions to be taken. People with shaky signature or immature signatures will follow the same. Photographs should be properly attested. Copy of CNIC also required.

3. Partnership:
Copy of NIC or passport of all partners.

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Partnership Deed/Agreement. Certified true Copies. All the partners must sign each page of the photocopied deed.

Partnership Mandate (Permission to open an account) should be on the Letter Head of the company and Mandate form should be as per the requirements of Bank Alfalah.

Request for opening an account on Letter Head with signatures of all the partners.

Copy of NTN (National Tax Number). It is to inquire that partnership is paying tax or not.

4. Sole Proprietorship:
Copy of NIC /Passport. Copy of NTN. Declaration of Proprietor on the Letter Head. Also it should be stamped with the proprietor name and the business name i.e. the stamp should mention the name of the owner of the business. The proprietors stamp should be affixed on the Specimen signature card with the signatures. This is for security of customer because when a customer issue a cheque and sign that cheque, signatures are matched with the signature of customer that is on specimen card. In case signature didnt matched with signature of specimen card cheque didnt passed and Bank inform to customer. Power of Attorney (if required by the customer).

5. Corporate:
These accounts are of the two types i.e. for the Private Limited companies and Public Limited Companies. The requirements for account opening are as fallow. Certificate of Incorporation i.e. from the Joint Registrar. Title of account should be similar with that on certificate of incorporation. Certified Copy of memorandum and articles of association of that company.

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List of current directors. Form 29 from SECP (Securities and Exchange Commission of Pakistan) and it should be issued within the past 6 months. It should also have the list of latest directors of the company.

Signatures of all the authorized Partners. Obtain a CNIC of all the directors. Authorized directors can be found from Board Resolution. Attested copy of NTN (national tax number). Resolution of Board of Directors of the company to open an account with BANK ALFLAH LIMITED (BRANCH NAME) under companys common seal, signed by all authorized directors, signatories, chairman and companys secretary. This resolution of the board of directors should also contain all account opening instructions and the state the name of those persons/signatories authorized to operate the account on the companys behalf.

Certified copy of certificate of commencement of business in case of Public Limited companies.

VERISYS verification of all CNIC cards.

6. Trust/Foundations and Societies:

Copy of CNIC/passport copy of trustees/office Bearer. Complete individual profiles of all trustees and or Founder Members or Managing Committee Members, attached with the account opening form. Certified attested copy of certificate of registration. Certified true copy of trust deed. Instrument of trust by law rules and regulations /memorandum and articles of associations as appropriate. Official resolution of governing body/executive committee for opening conduct of the account with Bank Alfalah Limited. Authorizing nominating person to operate the account. Certified true copy of NTN. Certified true copy of Tax exemption certificate.

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DMS (Document Management System) Department:

I also worked in DMS (Document Management System) department. Working of this department is to arrange documents of whole day to maintain a record of daily transaction. Working of this department consists of seven steps listed below: 1. Stamping 2. Setting 3. Scanning 4. Editing 5. Sorting 6. Ticking 7. Voucher Binding These steps are described below in detail.

1. Stamping:
This is the first step of documentation. In this step all Cheques, Cheque Deposit Slips, Cheque Transfer Slips, Demand Drafts and Debit, Credit Vouchers of daily transactions are stamped. Stamps which are used in stamping process are; Crossing Stamp Transfer Stamp Signature Verifying Stamp Bank Smart Stamp Payees Account Stamp

Stamping detail is given in next paragraph;

1.1. Crossing Stamp:

Crossing stamp is stamped on all documents including cheques, DD applications, and deposit slips. When this stamp is stamped on a document that document became property of Bank Alfalah Limited. Specimen of crossing stamp is given:

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Stamp specimen which is used here is crossed in to avoid any illegal use. Crossing stamp is not stamped on Cr/ Dr Vouchers.

1.2. Transfer Stamp:

Transfer stamp stamped on all documents including Cheques, Transfer slips, Cr/ Dr Vouchers. This stamp used to confirm that all Cheques transferred or deposited by the amount written on them to payees account. Specimen of transfer stamp is given;

Stamp specimen which is used here is crossed in to avoid any illegal use.

1.3. Signature Verifying Stamp:

This stamp is stamped to verify the signatures of authorized officer of Bank Alfalah Limited. For example when officer of Bank Alfalah deposit or transfer any cheque to payees account or convert cheque of customer into cash, he/she sign that cheque. For confirmation of that officers signatures signature verifying stamp is stamped.

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This stamp also stamped on DD application, Money Gram Application form on Bank officer signatures. Specimen of Signature Verifying stamp is given:

Stamp specimen which is used here is crossed in to avoid any illegal use.

1.4. Bank Smart Stamp:

Bank Alfalah Limited use software named as SMART for making of Demand Drafts, for transferring cheques and cheques online by the amount mentioned on them. When a cheque is transferred or any other transaction takes place by this software this software generate a Scroll Number for that transaction. Scroll Number written on cheque and transfer slips generated by SMART. Bank Smart is stamped on that Scroll Number. This scroll number provide information about daily transactions and helpful in maintaining record. Specimen of Bank Smart Stamp is given:

Stamp specimen which is used here is crossed in to avoid any illegal use.

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1.5. Payees Account Stamp:

This stamp is stamped on back of cheques which are transferred to Payees account. Signatures of Bank officer are also necessary on back of cheques. Payees account stamp is to confirm that payees account credited successfully by the amount of cheque listed on that cheque. Specimen of Payee Account stamp is given:

2. Setting:
Setting is second step in working of DMS. In this step all cheques, Deposit slips, Cheque online slips, Cheque transfer slips, DD applications and Cash online steps are separated. Stamps and Signatures on all slips, application and cheques also checked in this step. All documents arranged and prepared for scanning in this step.

3. Scanning:
Scanning is third step in working process of DMS. In this step all the documents scanned as they were arranged in setting process. Cheques, DD Applications, Cheque online and deposit slips, cash online and deposit slips scanned separately to maintain record of all documents separately.

4. Editing:
Fourth step working of DMS department is Editing. Scanned documents edited in this step. All vouchers, cheques, and scanned slips are arranged with respect to the account title, account number, date, and serial number written on that specified cheque, slip or

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voucher. Edited documents are placed in database with respect to the date of which they are.

5. Sorting:
Sorting is fifth step of documentation process. In this step all Current Accounts (Current Account Simple, Basic Banking Account, and Alfalah Kamyab Karobar Account) Vouchers and Slips are separated from all Saving Accounts (Profit Loss Account, Kafayat Account, and Royal Profit Account) Vouchers and slips. After separating the Current Account and Saving Account documents, these vouchers and slips arranged by the account number mentioned on that cheque, slip or voucher. Order of this arrangement is ascending from 0 to onward. On first the cheque or slips that will placed must have lowest account number from all Current Account vouchers and slips. E.g. slip having A/C number (01000023) among all placed first because it is lowest and (01000100) second lowest among all so will be placed on second and up to so on.

6. Ticking:
This is sixth step of Documentation. In this step all DMS department take print of all day transactions activity and match it by ticking with the voucher and slips sorted in last step for confirmation that all transaction took place correctly. After this confirmation all transaction counted in separated heads to maintain record that how much transaction took place from head of Bank Alfalah, from C.A/ S.A heads.

7. Voucher Binding:
This is the last step in working of DMS department. In this step all Current vouchers, cheques, slips and All Saving vouchers, slips and cheque bounded separately. This is to keep record of daily transactions of by Bank Alfalah Limited. This documentation is also checked by the auditors on the time of auditing. Bank also writes a Compact Disc of all scanned documents and sends it to head office for maintaining record in form of soft copy in head office.

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Agriculture Department:
Agriculture department of Bank Alfalah Limited deals with loan providing to farmer customer. In this department I learnt about the basic requirements that Bank Alfalah demands from customer when customer step in for taking loan. I also learnt about loan types that Bank Alfalah Limited provides to its farmer customer. Bank Alfalah is providing some Agri Products which are listed below. There is difference in requirements for providing the Products to customers. Agriculture Products by Bank Alfalah Limited: 1. Development Agri Facilities 2. Continuous Agri Facilities 3. Tractor and Transport Agri Facility 4. Machinery Facility 5. Bank Alfalah Dairy Facility 6. Processing and Packing Plant Facility (for fruits and vegetables) 7. Cold Store Facility 8. Poltry Farming Facility Bank Alfalah is providing loan to its Agricultural Customers so that they must their needs on time and take part in progress of country.

1. Loan Types:
There are two major types of loans that Bank Alfalah Limited is providing to its Agri Customers. 1. Development Loans 2. Production Loans These are described below:

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1.1. Development Loans:

Development loans are provided to customer for purchasing of Machinery or any other instruments. As in case of Poltry and Dairy farming this loan is provided to facilities the customer in growth, purchase of cold van for delivery of milk and making customer able to meets its time to time requirements. As in case of Agriculture loan is provided to customer to purchase any machinery for his use. This includes tractor, Harvester, Storage cyclo Capsule, truck or pick up for delivery, processing machine for processing of fruits and vegetables etc. Development loans are short term loans and only provided to facilities the customer during his period of working.

1.2. Production Loans:

Production loans are long term loans. These loans are provided to facilitate the customer from start of his working to end of his working. In case of Agriculture sector loan is provided for purchase of Seeds, Water, Pesticides, Spray Machines, Electricity Bills, Preparation of Land, delivery of production and for storage house expenses etc.

2. Financing Policies:
1. Turn Financing Policy 2. Ever Green Financing Policy These policies are described in short below:

1. Turn Financing Policy:

Turn finance is the policy in which bank facilities customer by making installments of loan. As in case if customer takes tractor from bank he will pay a periodic payment for it. So this way of financing is turn financing.

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2. Ever Green Financing Policy:

In this financing policy customer pay loan at end of period and on second day he can get loan back from bank. This type of loan is also called continuous loan.

3. Basic Requirement for Granting Loans:

There are some requirements mentioned which are necessary and checked before granting loan to customer by Bank Alfalah Limited. Agriculture loan is not provided to female in any case. If female became defaulter Bank cannot recover loan from that female. Bank cannot suit filed against female in case of not repaying loan. So due to these recovery problems Bank Alfalah Limited not provide loans to any female on any condition. Agriculture loan is provided to male customer. These are the requirements in male customer who is taking loan form Bank Alfalah Limited.

3.1. Age Limit:

Male customer who is taking loan should not be less than 24 year and more than 60 years. Mature person is necessary for taking loan.

3.2. Cast:
Loan is granted to every cast but near Bank Alfalah Limited ARRAIN is most preferable cast for providing the Agriculture loans. Reason of this preference is that ARRAIN people are good in their dealing and the repay loan as per decided between Bank Alfalah Limited and them.

3.3. Location:
Loan is provided to customer that is within area of 25-50 Kilometers from Bank Alfalah Limited Branch form where he is getting loan.

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3.4. Facilities:
Water and Production facilities also checked before granting the loan to customer. Per acre production is also notified.

3.5. Ownership:
A person who is taking loan must be the owner of minimum 10 Acres. Person having less than 10 Acres cannot get loan from Bank Alfalah Limited.

3.6. Cultivation:
Cultivated land under control of person taking loan form Bank Alfalah Limited should not be less than 25 Acres.

4. Loan Granting Steps:

Now there are some steps through which Bank Alfalah Grant loan to customer.

4.1 Documentation:
This is first step of granting loan to customer. In this step Bank Alfalah Limited require some document from its customer so that a secured loan must be provided to that customer. These documents are required by the person who is taking loan from Bank Alfalah Limited. 1. 3 photographs of Applicant 2. 3 copies of CINC of person who is applying for loan 3. Agricultural Passbook 4. Proof of land customer that is on lease 5. KAHSRA GARD AWARI (this is possession of land by the person who prepare legal document of land. This will inform the bank that person is cultivating more than 25 Acres and this will be approved by that legal personality who prepared all documents named as PATWARI.)

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6. Guarantee of two people 7. 3 CNIC copies of guarantee people 8. Two witness with their phone number and 3 CNIC copies 9. ASV of property (Actual Sale Value of property at time of taking loan)

4.2 CIB (Credit Information Bauru) Report:

Credit Information Bauru Report includes the detail of customer who applied for loan in Bank Alfalah Limited. This report is to confirm that person is not defaulter in any other branch of Bank Alfalah Limited in any other city. Person is taking loan first time or not. All bio data of regarding customers history listed in this report. If the person proved a defaulter of Bank Alfalah Limited from any other branch loan application disapproved and rejected.

4.3 CLP (Credit Line Proposal):

In third step of granting loan branch of Bank Alfalah Limited in which customer applied for loan make a proposal named as Credit Line Proposal. In this proposal Bank will provide all details of customer, his property worth and attach his application of Agriculture loan. Then concerned branch send this proposal to head office on behalf of customer to approve loan.

4.4 Approval of Loan:

This is last step for approval of loan. Loan may be: 1. Secured Loan 2. Unsecured Loan

4.4.1.

Secured Loan:

Loan granted by Bank to customer based on his property worth. In this type of loan customers total worth calculated and then loan approved. In case customer fails to pay loan to bank, bank can recover loan from his assets.

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4.4.2.

Unsecured Loan:

Loan granted on persons reputation for honesty, integrity, good will, and worthiness. These are unsecured loan and if customer became defaulter loan cant be recovered. After finalizing the type of loan Brach office send all documents to Area office. After receiving the documents Area office arranges a team that came to verify the applicant details and to visit the land of applicant. There are two types of verification: 1. Physical Verification: 2. Document verification

4.4.3.

Physical Verification:

Physical verification includes verification of land and other property that is mentioned by the applicant in documents. Present value of all assets calculated at time of verification. This is to estimate the credit worth of customer.

4.4.4.

Document Verification:

Document verification includes verification of CNIC and other document provided by customer to Bank. After this all verification all bio data sent to the head office and head office after approving forward this data along with verification report to regional office. Regional office checks CLP and sends all documents to Karachi head office of Bank Alfalah for approval of loan. After that Head office demand approval of authentication of customer from concerned branch in which loan applied, concerned branch send approval to head office. At the end head office after all verification and documentation approve loan and give authority of issuance of loan to Bank Alfalah branch in which loan was applied.

5. Loan Issuing Not Allowed:

Loan issuing is not allowed by Bank Alfalah Limited to Advocates, Police, Religious Institutions and Politicians.

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Car Finance Department:

Car finance department finances customer in purchasing car on easy installments. Customer can enjoy new car which is possible quicker than his thought and this all because of Bank Alfalah Car Finance. Bank Alfalah car financing is more successful in market and reason behind this success is Bank Alfalahs quickest processing and turnaround or delivery time. Willing person can get a car according to his need with minimal documentation.

1. Documentation for Car Finance:

1. Age limit required is not less than 21 and more than 65 years 2. Debt Burden verified (3 Times with take home income, which means that income must be three times of installment of car. E.g. if a person pay 30,000 installment of car his income must be 90,000 or more.) 3. Debt Burden Calculated ( liabilities must be lowest other than car installments, if a person has income 90,000 and he pay 40,000 in other liabilities then his net income will be 50,000. So he cant get car having installment 30,000) 4. Last 6 months Bank Statement and stamped by bank 5. Business/Service Tenure (1 year for permanent, 2 years for contractual and 2 years of business experience) 6. Application Form 7. Witnesses along with CNIC copy and all data 8. BBFS Completed (Basic Borrower Fact Sheet which include all detail about the customer and 2 referrals) 9. PFS Completed (Personal Financial Statement which include all personal assets details of customer and their valuation in current situation) 10. CU Completed (Customer undertaking that he will not misuse the car) 11. Valid CNIC copies 12. Signature Verification 13. Vehicle quotation & price verified

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1.1. Income Documents:

1. In case of salary: salary slip needed 2. In case of proprietor ship concern: Personal A/C Bank Statement required 3. In case of Partnership: Partnership deed form 29 required 4. In case of Rental Income: Verified Rent Agreement 5. Agriculture Income: Verified land title documents

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Credits Department:
The sum of money that a bank makes available to client in excess of any deposit called credit. Credit means belief or trust. The quality of being credible or trustworthy another words we can define credit as Trust in ones integrity in money matters and ones ability to meet payment when due.

1. Purpose of Credits:
Earnings of a bank are dependent on CREDITS, because: A bank receives (borrows) deposits. It pays cost on these deposits. On the other hand bank lends the deposits to borrowers and charges interest on the lending. This function is performed by CREDITS in any bank

2. Credit philosophy at BAL:

Banking is an art of striking between risk and revenue The extension of a credit facility should add value to the banks assets.

3. Importance of Credits:
CREDITS are the most important department of a bank. Performance of all other departments is dependent upon Credits. It attracts corporate accounts, as a company prefers to do import and export business from the banks from where it is availing limit (credit) facilities.

4. Risks involved in Lending:

Though lending is main source of earnings for any bank but it is risky as well. Whenever money is advanced to any customer there is always a risk involved of default. To minimize the risk involved BAL gives loans to credible customers.

Types of borrowers:
There are different types of borrowers who can borrow money from bank. These types are given below:

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1. Individuals:
Existing account holders staff members Close relatives of staff members Business sponsored by staff members Employees of other banks Joint accounts

2. Businesses Entities:
Sole proprietorship Partnership Limited liabilities Company Joint venture Group account\s

3. Others:
Clubs and associates Government bodies Traders Contractors Transport, storage and warehousing Property dealers Manufacturers

While lending to any of these parties the credit officer of BAL has to check the different information regarding the borrower.

Borrowing Entities:
1. Individual 2. Partnership 3. Company 4. Government

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Information required from these major borrowers is:

1. Individual as a Borrower:
Lending to an individual the credit officer must ask him to see. 1. His financial statements for, at least the previous three years. 2. A continuing guarantee. The decision of extending credit to an individual borrower is necessarily a decision for the officer concerned based on the reputation and credit standing of a client. Depending on the amount advanced, the loan should be secured by a pledge, hypothecation, or mortgage.

2. Partnership as a Borrower:
Where the borrower is a partnership, the credit officer must ask to see, following documents; 1. Original partnership agreement/deed and the original certificate of registration which will contain the name of the partners and the date of their joining the partnership. 2. An individual financial statement from each partner 3. Loan documents signed by all partners 4. continuing guarantee duly signed by all partners 5. Resolution/authorization to borrow and execute loan documents, signed by all partners. 6. A letter signed by all partners, requesting the bank to extend credit facilities to the firm 7. Certified copy of the partnership deed and certification of registration.

3. Company as a Borrower:
Where a company is a borrower the credit officer must ask and keep on record following information: 1. The certificate of incorporation

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2. The memorandum and articles of association 3. The certificate of commencement of business 4. The last annual report containing accounts and balance sheet, to ensure that the company is legally qualified to do business. Further to ensure that the company is in existing form and good standing. Credit officer should check with the registrar of joint stock companies, and request the borrower to furnish certified5. List of shareholders (current) 6. List of directors 7. With public limited company verify its existence and standing on the stock Exchange. 8. It is important that the borrowing company and its directors should have requisite authorization and power to borrow which should be reflected in the memorandum and article of association 9. Also see corporate resolution to borrow.

4. Government as a Borrower:
Where the government is a borrower, the credit officer must ensure that the documents of indebtedness are signed by an officer of the government who is duly authorized in writing and or by the rules of business. Legal counsels opinion should be taken in these cases.

Bank Alfalahs Lending Principles:

o P-1 Know your Customer o P-2 Purpose of Facility o P-3 Profitability o P-4 Source of Repayment o P-5 Security o P-6 Tenor of Facility

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All these principles kept in mind while lending credit to any customer by Bank Alfalah Limited. Principle 5 is somewhat critical so it is described below: Attribute of Good Tangible Security: Good Marketability Easy Ascertainment of Value Durability Ascertainment of Title Easy Transferability of Title Good Yield Insured Frequency of Revaluation of Securities (Land and Property up to 70%, Machinery& Equipment up to 40%)

Divisions of Credits:
CREDITS are further sub divided into two sections: 1. Credits Marketing 2. Credits Administration The above-mentioned two sections perform the overall activities of credits. Role of each section is discussed below:

1. Credits Marketing:
Marketing personnel is responsible for attracting customers to bank for advancement of loan facilities. They must have complete information of trends in the industry. However several precautions are followed to give loans to only credible customers, as the aim of bank is to recover the money at time and through earnings of the client and through liquidation of securities.

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Bank Alfalah Ltd. always prefers to give loans to credible customers. For this BAL requires detailed information about the customers. Customers are basically evaluated on 5Cs scale.

2. Credit Administration:
It is the second section of CREDITS. It performs very important functions for the bank. After the approval of CREDIT LINE PROPOSAL, it comes to Administration section. The Administration decides the terms and conditions regarding securities offered against the facility given to a client. It is a highly responsible task because in case of default liquidation of securities is an important source for bank for recovery of loan amount. Other important functions such as adjustment of loans are also handled by administration section.

Procedure of Lending Credit:

Procedure of lending credit to customers by Bank Alfalah Limited is described below:

1. Customer Evaluation:
Firstly walking in customer is evaluated based on Credit Cs. Credit Cs are described shortly below:

1.1. 5 Cs of Credit:
1.1.1. Character: Who is the borrower (company)? What is its reputation for honesty, integrity and willingness to pay? 1.1.2. Capacity: How is the business managed? What are its strength weaknesses? What is the business capacity to generate the funds to repay?

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1.1.3. Capital: How solid are its financial and human resources? Are financial resources matched with adequate human resources? 1.1.4. Conditions: What is the condition of company within the economic cycle? Will the economic and business conditions impact the borrowers ability to repay? 1.1.5. Collateral: What is the real liquidation value of the collateral? If the creditor is forced to use the collateral as payment, what value will be realized at liquidation? Ratio of credit is 60% of total value of collateral.

1.2. Adverse (Harmful) Cs of Credit:

1.2.1. Carelessness: While evaluating, disbursing and monitoring of the credit, professional standards and tools are not exercised. 1.2.2. Complacence: When the information and data base on which decisions are to be made, are accepted without any critical evaluation 1.2.3. Connivance: While certain unfavorable aspects observed in the operating performance, financial position, debt servicing, etc. are not accounted and favoring the client. 1.2.4. Concealment: When certain important facts are deliberately and willfully prevent from the management which could have harmful effects on credit evaluation, security, credit recovery and bilateral relationship with borrower.

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1.2.5. Collusion: When a bank officer and borrower willfully join their hands for achieving some ulterior motives 1.2.6. Corruption: When official matters are dealt with for financial and non- financial benefits at the cost of the lender. After observing the customer on basis of these Cs by Bank Alfalah Credit is offered to trusted and credible customers. There are also some risk factors to which Bank exposed while lending the credit to customer.

2. Nature of the Risk Exposed To a Bank:

Credibility (Market reputation, Integrity, Reliability etc) of the sponsors Financial standing (Financial Soundness and net worth) Professional capability (Professional strength and experience) Mis-Management (Financial, Technical, Marketing, Personnel) Credibility of credentials, data and information Misappropriation of funds Mis-Utilization of funds Unauthorized advances to sister concern, affiliates etc Product obsoleteness, waning market and threatening market environment Inconsistent and ineffective marketing plans and business strategies Obsolescence of the technology and lack of adaptability High interest rates Liquidity risk Inconsistent government tariff policies and their impact on the selling price, cost of production, profitability etc International environment and inter-country business risk Credibility and poor performance of Muccadams Credibility of surveyors, evaluators, pre-delivery inspectors

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Over capitalization Credibility of the auditing firms

Credit Line Proposal (CLP) is prepared after evaluating the customer on basis of Credit Cs and risk factors.

3. Credit Line Proposal (CLP):

CLP is originated by Manager Credit of a branch. His primary responsibility is to properly structure the loan after negotiations with the client, and to prepare CLP keeping in view the required credit appraisal parameters, policy guidelines and regulatory requirements. A CLP contains and takes into consideration following information:

3.1. Types of Proposal:

1. New 2. Renewal 3. Revision 4. Single transaction

3.2. Borrower:
Name of Borrower Address of Borrower Nature of Entity Nature of Business etc.

3.3. Amount:
As requested by the borrower or as per Credit Policy of the Bank Alfalah Limited.

3.4. Ownership and Shareholding:

Details of ownership and share held by each partner/director

3.5. Nature of Facilities:

These facilities are either:

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1. Fund Based Facilities 2. Non-Fund Based Facilities Various types of funded and non-funded facilities are given below: 3.5.1. Fund Based Facilities: Funded facility is that facility in which the bank funds are physically involved. Cash Finance/Running Finance Cash Finance/Running Finance: It is a short-term facility given to companies for working capital requirements (raw material, WIP, finished goods, receivables). It is a revolving limit. In this facility a specific limit is given to the customer. He is given withdrawing right up to that limit. He can avail the facility by playing within that limit. Mark-up is charged on the outstanding amount. Marketing personnel keeps a check that whether or not a party is adjusting the limit and then withdrawing the amount or not. If not then there is something wrong and the facility availed is being misused. 3.5.2. Non-Fund based Facilities: It is a facility in which funds of bank are not involved. However a non-funded facility can become funded at any time. Letter of guarantee

Letter of Guarantee: It is a non-fund based facility type. In this type of facility no funds from the bank side are involved. Three parties involved in letter of guarantee are: 1. Principal: to whom bank is giving guarantee on beneficiarys behalf. 2. Beneficiary: in whose favor guarantee is given. 3. Guarantor: it is the bank that is giving the guarantee.

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In this facility bank guarantees the payment of loan amount if the beneficiary fails to perform his or her duty at the settled time.

3.6. Customer Profile:

1. Legal Status: It specifies legal status such as: o Individual o Proprietor o Partnership o Limited liability company 2. Date of Account opening and Account Number 3. Purpose of Financial Assistance 4. History of Relationships with Bank Alfalah Limited 5. History of Borrowing Relationship with BAL 6. Information of whether account opening formalities are complete or not

3.7. Line of Business/Main Products:

Following information is required in this regard Sales break-up in various cities Market share Competitive brands Industry Profile and Market Position

3.8. Summary of key Financials:

It includes following: Sales/Revenue, Net Profit Total Assets, Liabilities with BAL and other Banks Working Capital, Current Ratio Paid-up Capital, Reserves, Net Worth ROE, Debt-to-Equity Ratio

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Days Receivables, Days Payables, Days Inventory

3.9. Liability Details:

It includes liabilities with Allied Concerns and with other banks both funded and nonfunded.

3.10. Performance during Last One Year:

Following questions are considered: Are acceptance paid on due date Are all the instruments of TFs paid as per schedule Audit exceptions related to credit matters only Are checks returned due to lack of funds

3.11. Account Statistics for the previous year:

It shows: Maximum balance Minimum balance Date of latest adjustment of CF

3.12. Branch Comments and Recommendations:

Based on all of the above facts and information branch gives its comments and recommends different suitable facilities.

3.13. Credit Division Comments and Recommendations:

Based on all of the above facts and information, credit division gives its comments and recommends different facilities.

3.14. Prudential Regulations Compliance Checklist related to Credit:

Following matters are to be checked: 1. Limit of banks exposure to a single person 2. Limit of banks exposure against clean facilities

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3. Linkage between a borrowers equity and total borrowing from bank

4. Maintenance of debt-to-equity ratio

Credit Line Proposal prepared by analyzing all above information of a customer. Basic Borrower Fact Sheet also attached with this CLP and sent to HO for further proceedings.

Securities against Lending Credit:

Lending is very risky for any bank. Bank covers the risk involved in lending by keeping a suitable security, which can be tangible as well as intangible. Bank always prefers a security that is marketable as well as sustains its value (not perishable).

Types of Securities:
Following are various types of securities 1. Pledge 2. Hypothecation 3. Mortgage

1. Pledge:
The bailment of goods as security for the payment of a debt or performance of a promise is called pledge. Two parties are involved in this: 1. Pledgor i.e. the borrower/customer 2. Pledge i.e. the bank Possession is with the bank. Bank keeps the goods in its go downs. Muccadams are responsible for the security of the pledged goods. Borrower is entitled to get back the goods after the repayment of loan. In case of non-payment bank has the right to sell the

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goods. Surplus on sale is paid back to the pledgor. In case of deficit after the sale, bank always has the recourse to the court of law to recover the deficit. Documents required for C.F. Pledge Legally stamped documents required are: 1. Agreement of finance 2. Promissory note 3. Letter of guarantee 4. Memorandum of deposit of title deed 5. Letter of hypothecation 6. Letter of continuity Letters which can be accepted without Stamps are: 1. Letter of arrangement 2. Letter of disbursement 3. Letter of authority 4. SBP regulation undertaking Margin: Bank keeps a margin or cushion for every facility advanced. The margin differs from case to case depending upon several other factors. Precautions: Following are some of the precautions, which are taken by the bank: 1. Banker looks closely at the NATURE OF COMMODITY. The commodity should not be perishable. It should be marketable.
2. Banker should have complete knowledge about the market value of the

commodity pledged. Price should not fluctuate rapidly. 3. Banker must take store the pledged commodity in proper go downs under suitable conditions.

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4. Banker must take precautions in valuing the commodity. There are approved valuers for this purpose. The commodity should not be overvalued because it will lead to difficulty in the recovery of loan amount at the time of liquidation.

2. Hypothecation:
It is an agreement to give charge on goods or documents of title to these goods without conferring possession to the lender. 1. Lender neither has possession nor ownership. 2. Security is created through a letter of hypothecation, which contains information such as description of goods, and value of goods. Documents required for C.F. Hypothecation: Legally stamped documents required are: 1. Promissory note 2. Letter of Hypothecation 3. Letter of guarantee 4. Letter of continuity
5. Agreement of finance

Letters which can be accepted without Stamps are: 1. Letter of arrangement 2. Letter of disbursement 3. Letter of authority 4. SBP regulation undertaking Periodical Stock Reports: Bank requires periodical stock reports from the borrower. Stop Orders: The bank can issue stop orders against the trading of hypothecated stock.

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Precautions: 1. Lender/bank should go for surprise visits to check stocks. 2. Stock should be insured against all possible risks such as theft, fire etc. 3. Lender should put the nameplate, which signifies that stock has been hypothecated. 4. Before lending bank should make sure that stocks have not been already hypothecated with any other bank. It can be confirmed from the registrar.

3. Mortgage and its types:

It is the transfer of specific right in an immovable property for securing a payment of money advanced or to be advanced as a loan or for the performance of an agreement or settling a future liability. In mortgage there are two parties; Mortgager: Mortgager is the person who transfers specific rights to the mortgagee. He can get back the specific rights after the repayment of loan. Mortgagee: He is the lender i.e. bank. Mortgage Deed: Mortgage deed is that document through which the mortgage is executed. Property Documents for mortgage 1. Legal advice about property documents 2. Title deeds (original documents of property 3. Aux Sajra (location site map) 4. NEC (Non-Encompress Eertificate) 5. PT 1 in favor of borrower 6. PT 1 in favor of bank

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7. MOTD (Mortgage of title deeds) 8. Agreement to create mortgage 9. Letters submit to registrar 10. Irrevocable general power of attorney (IGPA) 11. Valuation report According to transfer of legal title there can be two types of mortgage. 3.1. Legal Mortgage: Title is legally transferred to mortgagee. Mortgage is to be registered in case the loan amount is greater than Rs.100. After the payment of loan, legal title is transferred back to the mortgager. It is executed by the mortgage deed, which is signed by the mortgager and 2 witnesses. This mortgage deed is registered with the revenue officer. It is mentioned in the mortgage deed that legal title will be transferred to the mortgager. 3.2. Equitable Mortgage: The original deeds are submitted with the mortgagee with an intention of creating its equitable interest in that property. Mortgager cannot sell the property without the consent of the mortgagee. Process: The original title deeds are submitted with the bank with the covering letter stating that these documents are submitted with the bank for the purpose of creating an equitable mortgage. It is to be registered with the Registrar of Joint Stock Companies within 21 days of the mortgage agreement.

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Guide Line of Credit Policy:

Total outstanding financing facilities by banking company to single person shall not at any point of time exceed 30% of banks unimpaired capital. No banking company shall make loans or advances against the security of its own shares. No banking company shall grant unsecured loans / advances on the guarantee of, o Any of its directors. o Family member of director o Any private company in which banking company is interested. Aggregate exposure of bank against all its clean facility shall not at any point exceed the amount of banks capital and general reserve. Advances given to the employees of bank in accordance with their entitlement. While granting any accommodation, bank shall ensure the total accommodation availed by any borrower from banks / financial institution does not exceed 10 times of the capital and reserve of the borrower. No banking company allow financing facilities whether fund based / non funded against the shares of companies which are not in central depository system.

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Cash Department:
The cash department is the most important department of the bank. It receives cash from customers and then deposits it into the accounts of the customers and maintained their balances. The officers in this department are called teller.

1. Basic Activities:
This department involves in two activates; Deposit cash in customers account Make payments from customers account Details of these as follows:

Deposit Cash in Customers Account:

When the customer want to deposit amount in his account at opening of account or after that then he has to fill a deposit slip that shows the amount and the account in which the cash deposit will be made . Then teller will receive amount and credit the customers account that shows increase in customers bank account.

Make Payments from Customers Account:

When the customer draws a cheque on the bank to pay a certain amount then teller will debit the customers account that shows reduction in his account balance.

2. Types of Cheques:
There are two main types of cheques that are: Open Cheques Crossed Cheques The difference in these cheques is:

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2.1. Open Cheques:

Open Cheques are those cheques, which are paid across the counter of the bank. Cheques are not crossed. Open cheques may be:

Bearer Cheques Order Cheques Bearer Cheque: If the drawer orders the bank to pay a stated sum of money to the bearer, it is called a bearer cheque. Any person who lawfully possesses a bearer cheque is entitled to receive payment of that cheque. Order Cheque: The amount of this cheque is payable to the person whose name is written on the face of the cheque. The amount is paid at counter after identification of that person.

2.2. Crossed Cheque:

The amount of this cheque is not paid at counter. The amount of this cheque is transferred to the persons account whose name is specified on the cheque. Two parallel transverse lines are drawn across the face of the cheque.

3. Kinds of Crossing:
Legally there are two kinds of crossing: General Crossing Special Crossing

3.1. General Crossing:

In case of General Crossing the payment can only be deposited into the payees account only.

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3.2. Special Crossing:

In case of Special Crossing the payment can only be made to bank named therein the cheque.

4. Cheque Encashment Procedure:

Cheque Encashment are made in four steps, these are: 1. Receiving of Cheques 2. Verification of Signature 3. Computer Terminal Process 4. Payment of Cash

4.1. Receiving of Cheques:

The cash is paid against the cheque of the client. The following points are important. Cheque is drawn on BAL Cheque is not post dated. Amount in words and figure are same. It should be a bearer cheque so the word bearer should not cross.

4.2. Verification of Signature:

After receiving the cheque, officers verify the signature of the account holder in Bank record and on the cheque are same. If the signature is not same cheque is returned back to customer otherwise forward to computer terminal.

4.3. Computer Terminal Process:

After verification of signatures the cheque is received in computer terminal, where the computer operator checks the balance of the account holder. The operator also sees the stop payment instructions are received from account holder or not. After considering these points computer operator post the cheque in account holder ledger and returned back to the officer.

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4.4. Payment of Cash:

After posting the cheque the officer crossed the cheque and returned back to cashier. The cashier enters the cheque in cash paid record and pays against the second signature of receiver on the back of the cheque. If the payment is of Rs. 50000 the cashier can make it on its own. If the amount is greater than Rs. 50000 then officer verifies the cheque thoroughly. Officer also verifies account holder presences by taking the VERSYS (verification of person from NADRA).

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Accounts department:
This department is responsible to keep the record of each and every transaction and prepare reports about the amount of deposits and advances and sent it to Head office or State Bank of Pakistan on monthly, quarterly and yearly basis. Account department of each branch manage the assets, liabilities, income and expenses of that branch and prepare the record of all these and report to HO. Account statements of customer account also prepared by Accounts officer.

1. Activities:
The accounts department deals with various routine activities for the bank. The main activities performed by it are:1. Budgeting 2. Reporting 3. Maintenance & depreciation of fixed assets 4. Miscellaneous functions These activities are described below:

1.1. Budgeting:
Accounts department of every bank, for a year makes budget of its branch. Fiscal year of bank starts from January 01 and ends on December 31. The accounts department starts preparing budget from October for the next year. Budgeting is based on all future expenses that are expected.

1.2. Reporting:
The accounts department, in the form of reports, clubs the details of various departments together. Each and every minute detail is provided in weekly, monthly and annual reports. The reports are submitted to head office, SBP and to the government. The accounts department prepares many reports, of which the most common are:

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1. Statement of Affairs 2. Income & Expenditure report 3. Outstand Receipt Report 4. Currency Wise Deposits and with drawls Report 5. Daily Exchange Position and Funds Management Report 6. Assets & Liabilities (advances and deposits) Report 7. Budget Review Report 8. Performance Review Report 9. Investment report

1.3. Maintaining of Fixed Assets & their Depreciation:

Accounts department maintains the record of all the assets and charges depreciation on them. The bank normally uses the straight-line method to compute the depreciation. It is calculated on monthly basis and charged yearly. Bank not only depreciates the existing assets but also the assets transferred in and out.

1.4. Miscellaneous Functions:

The accounts department also performs some other miscellaneous functions like: 1. Closing Entries 2. Daily activity checking 3. Daily activity Reporting 4. Minor expense recording 5. Taxes and Insurance payment Further description is given below: Closing Entries: Accounts department also passes the closing entries on monthly, biyearly and yearly basis to calculate the profit and analyze the overall performance for a certain period.

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Daily Activity Checking: All the operations performed in various departments of Bank Alfalah Limited are computerized. The functions are performed through the customized software. In order to facilitate double-checking of all the transactions done, every concerned official also passes vouchers and cheques manually. At the day end all the vouchers passed by various officers working in different departments are given to Accounts Department. Furthermore the I.T. department also prints a very bulky report of all the transactions / entries which have been fed into the computer system of the branch that day. When both of these things are at the desk of concerned officer, he performs the job of tallying the daily activity report with all the corresponding vouchers and cheques, in order to track down any discrepancy. Daily Activity Reporting: Report of daily activities prepared by accounts department and sent it to head office and to maintain record in branch. Minor Expense Recording: The account department of BAL Hasilpur Branch has to record even the minor expenses of the branch like tea for the staff, stationery for the branch. Taxes and Insurance Payment: Taxes and insurance payment functions also performed and recorded by accounts officer.

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Clearing Department:
This department deals in clearing process of cheques and other instruments that are drawn on any other bank other than Bank Alfalah Limited Hasilpur Branch. A system by which banks exchange cheques and other negotiable instruments drawn on each other within a specific area and thereby secure payment for their clients through the Clearing House at specified time in an efficient way. By clearing means sometimes the account holder of Bank Alfalah Limited presents a cheque, which is not drawn on Bank Alfalah Limited, but the person has an account in Bank Alfalah Limited. In this case bank accepts the cheque in clearing and later on collets the amount from bank on which cheques is drawn through clearing house. All this process is called clearing.

1. Clearing House:
It is a place where representatives of all banks sit together and interchange their claims against each other with the help of controlling staff of NIFT. It is one of the services provided by NIFT to other commercial banks. NIFT acts as a clearinghouse. Different banks are the members of the clearinghouse. A representative of each bank represents his bank in the clearinghouse. Each bank has collected cheques as behalf of their customer, they hand over these cheques to respective banks on which these cheques are drawn.

2. Advantages of clearing:
1. Clearing is systematic arrangement for the collection of cheque. 2. It is speedy and economic way of collection of cheque. 3. Cheque and other instruments of Bank other than Alfalah cleared easily in systematic way without any flow or mistake. 4. The collection and clearance of government bills, instruments and cheques made easily.

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5. It avoids the difficulties and cumbrances faced by the branches if they collect the instruments directly from branch to branch. 6. Confidence among the clearing members is produced.

3. Role of State Bank of Pakistan in clearing:

1. State Bank of Pakistan gives the license end enlist members of different banks as clearing house members authorizing to exchange their clearance cheque and instruments, 2. The State Bank of Pakistan provides the facility to member banks for clearances of their cheque drawn on different branches of banks in different parts of their cities. It would have been more cumbersome and time consuming if they had been dealing from branch to branch. 3. State Bank of Pakistan is a bankers bank; it deals in a parental attitude and provides educated and experienced staff to deal all the matters of other Banks. 4. All the payments and receipts are settled to these accounts without any difficulty. 5. The State Bank of Pakistan chalks out clearing house timings and its procedures.

4. Clearing Outward:
When the customer deposits cheque & other instruments of other banks for collection, we send the cheque in outward clearing.

4.1. Procedure:
These are the steps which are followed in clearing process: 1. Cheque are received and entered in cheque deposit slip 2. Customer copy returned to customer 3. Cheque is crossed specially by drawing two parallel line on cheque and crossing stamp also fixed 4. Endorsement stamp is fixed on the back of the instruments. 5. Depositors account number shall be mentioned on the reverse of the instruments for the future reference. Endorsement and cheque deposit slip are signed by an officer.

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6. All the instruments ate entered in clearing register 7. Cheque sent to NIFT for collection
8. NIFT collect the amount from other bank and pay it to Bank Alfalah Limited

9. In case of cheque return other bank mention the reason of not clearing the cheque on memo that is also attached with returned cheque.

Financial Summary of Bank Alfalah Pakistan Limited

Years Internship Report 2006 2007 2008 2009 2010 pg. 103

Operational Results
Total Income Operating Expenses Profit after Taxation Shareholders Equity Total Assets Advances - Net of Provision Investments- Net of Provision Deposits and Other accounts Imports Exports 24,416 5,918 1,763 10,573 275,686 149,999 56,502 239,509 119,937 70,844 31,822 8,289 3,130 13,767 328,895 171,199 88,492 273,174 184,305 79,090 35,789 9,957 1,301 14,609 348,991 191,790 75,973 300,733 190,289 93,406 40,743 11,002 897 19,770 389,070 188,042 99,159 324,760 197,304 100,493 42,238 12,754 968 19,727 411,484 207,153 113,426 354,015 254,705 132,277

Balance Sheet

Others

Ratios
Income/Expense Ratio Return on Average Equity (ROE) Return on Average Assets (ROA) Advances/Deposits Ratio Basic Earnings Per share No. of Employees (Other than outsourced) Cash Dividend Stocks Dividend 4.13 20.37 0.67 62.63 2.91 6.543 33.33% 3.84 25.72 1.04 62.67 3.92 7.371 30% 3.59 9.17 0.38 63.77 1.41 7.584 15% 23% 3.70 5.22 0.24 57.90 0.71 7.462 12.5% 3.31 4.90 0.24 58.52 0.72 7.571 8% -

ANNUAL REPORT 2010

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45,000 40,000 35,000 30,000 25,000 20,000 15,000 10,000 5,000 2006 2007 2008 5,918 8,289 9,957 24,416 31,822 35,789

40,743

42,238

Total Income Operating Expenses 11,002 12,754

2009

2010

Profit after Taxation

3,500 3,000 2,500 3,130

2,000
1,500 1,000 500 -

1,763 1,301 897 968 Profit after Taxation

2006

2007

2008

2009

2010

Alfalah posted an after tax profit of Rs. 968M with earnings per share of Rs 0.72 in FY10 as compared to profit after tax of Rs. 897M with earnings per share of Rs 0.71 in FY09, depicting a significant growth in FY10. Deposit and Advances ratios increased from 57.90 to 58.52. Income/ expense ratio decrease from 3.70 to 3.31 which is positive for the organization.

The asset base increased from 389,070 million to 411,484 million in 2010 as compared to 2009.Deposits showed a steady increase to bring the figure to Rs 354,015 million as compared to Rs 324,760 million in financial year 2010. Advances increased to Rs 207,153 million from 188,042 million, while the investments increased to Rs 113,426 million from 99,159 million.

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Competitors of Bank Alfalah:

Bank Alfalah is facing a very tough competition in the market. Almost all of the local and foreign banks are its competitors. The competition is based on the performance and as in the modern world it is more on the basis of customer satisfaction.

Bank Alfalah has offered the wide range of products at lowest mark-up e.g. Car Finance of the Alfalah is the best scheme at lowest mark-up i.e. 8.5 %. Similarly the credit cards scheme is the good one as it has no joining fee and very low mark-up is charged for the credit. That is how Bank Alfalah is competing in the market.

To fulfill the targets, Alfalah needs adequate resources. The problems of scarce resources vary from branch to branch. In some branches, the location is not very good or the building is not large enough to carry out all the activities in proper way. In some branches the staff is short and recruitment is required. So the problems do occur due to the inadequate resources but the management of the bank tries to overcome these problems as soon as they occur.

Now more than 13 years after being incorporated, Bank Alfalah has emerged as one of the foremost financial institution in the region, endeavoring to meet the needs of tomorrow today, operating through 380 branches in 160 cities nationwide, with total employees exceeding 8000. Bank Alfalah also expands its network internationally by opening branches in Afghanistan, Bangladesh and Bahrain to further improve its image as a premier banking institution.

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SWOT Analysis of Bank Alfalah Limited:

Strengths:
1. Computerized and online facility is provided for customers as well as for employees. Well established net work facilities (with other branches and SBP) like Email, Fax, online transfer of funds, and online verification of CNIC of proposed client. 2. Decisions are taken on the basis of majority. 3. Private building with more facilities 4. Teamwork is preferred. 5. There is Honesty, equality and fairness between staff. 6. Proper training / courses are provided to employees. 7. Loyalty towards the customers 8. Brand name 9. Good advertising campaign 10. Decentralized decision making 11. Phenomenal Growth in Profitability, Branch Network And Deposit Portfolio

Weaknesses:
1. Lack of staff / required staff is not available. 2. Swift facility is not available in all the branches. 3. Human resource and marketing department is not available in all the branches. 4. No incentives for excellent work. 5. It is a step behind in using new technology as compared to other banks. 6. Most of the employees are overloaded with work. There is uneven distribution of work and promotions are not very timely. 7. It is slow in the introduction of new services.

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Opportunities:
Plenty of opportunities are available in Pakistan which Alfalah Bank I exploiting for benefit of bank sector such as: 1. Better and convenient services to employees and business class. 2. Expand branch network. 3. Engage qualified professionals for providing specialized banking products and services to their customers, reorganization of existing systems as well as Infrastructure with de-centralized work processes. The human resource factor plays a critical role maintaining the efficiency and profitability level of the bank in future. 4. Institutionalization of HRM (best person should be posted for best assignment). 5. Promotion is given on the basis of experience and reputation. 6. Bank can extend its network in other countries. 7. It can enhance its profitability by making use of new technology. 8. It has the opportunity to introduce new products and services.

Threats:
1. Other banks are providing better services to their customers like customers can excess their account from home through internet and can get information about their account. 2. Other banks are providing loans with low interest rates. 3. Other banks are providing better salary package to their employees. 4. Bank is facing intense competition from other private commercial and foreign banks.

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Marketing Mix of Bank Alfalah Limited:

Marketing mix is a set of tools you need for establishing your detailed marketing plans and forecasting your sales to pursue the marketing objectives in the target markets. Thus marketing mix of any organization is very much important in order to ascertain the overall functioning of the organization. Bank Alfalah has a strong marketing mix structure for its branches growth. Marketing mix of Bank Alfalah will be focusing the following major aspects:

1. Product 2. Price 3. Place 4. Promotion

Product:
Due to trend setting and innovative banking, Bank Alfalah presents a range of quality products with revolutionary perks and convenience. Alfalah provides a wide range of products/ services to its customers, which can be compared with any foreign, or national bank in terms of quality and reliability. The acceptability of these products is very much effective to the customers. Bank Alfalah has now achieved a competitive advantage over other banking institutions by offering a complete range of banking solution for its valued customers. As per current laws and State Bank of Pakistans regulations, customers are required to provide proof of their identity and a satisfactory introduction to open any Bank Account. Term Deposit account can be opened by providing a copy of national identity card only. Here is an overview of different products and services formulated by Bank Alfalah.

Nature of Products and Services Offered:

No doubt in saying that the basic function around which the banks operations circulate constitute the opening of accounts and ultimately enhancing the deposit base for the

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branch. Accounts offered by the banks for the deposits of customers constitute the basis of their operations and develop the basic relationship between a banker and customer. Current Accounts: This account offers unlimited deposit and withdrawal facility to facilitate business transactions. There is absolutely no limit on number of transactions deposits and withdrawals. Individuals, partnerships, companies, associations, clubs, societies, and NGOs are eligible to open current account. It has further three types which are: 1. Simple Current Account 2. Alfalah Kamyab Karobar 3. Basic Banking Account Savings Accounts: Saving account is the most common account for individuals. Saving accounts are

designed to mobilize savings primarily from a large number of individuals and households. Any one or more individuals or partners can open a PLS saving account with the bank. It also have further some types which are: 1. PLS Saving Account 2. Royal Profit 3. Alfalah Kafayat Account. Alfalah Education: Alfalah Education is a Term Deposit product with No Additional Cost (NAC) education insurance cover for account holders with school going children. Alfalah Education Account , beside offering competitive return on TERM DEPOSIT , offers tuition fee reimbursement of children for 15 years of schooling or up to their 20th birthday, in the unfortunate event of the death (either through accident, illness or natural causes) of the main breadwinner (account holder) parent.

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Alfalah Education offers a competitive return on term deposit and secondly, it creates a contingency provision for our school going youths education in the hapless event of the death of any major breadwinner. The product seems rewarding in the current scenario of increasing number of children of school going age and the general public interest in quality education of their off springs. Alfalah Mahana Amdan: Alfalah Mahana Amdan is a 3 year TDR with expected rate of profit of 10% p.a. This term deposit will provide an opportunity to individual/joint customers to enjoy higher returns that will automatically be credited to his/her current/PLS/RP/BBA account on 1st working day of each month. This facility is not available for business and corporate customers. Notice Deposits: These are the short-term deposits of customers where the notice is to be given to the bank prior to the withdrawal. Profit rates for these deposits are: 07 - 29 days 30 days & above 4.00% 4.50%

Foreign Currency Accounts: Due to the increasing globalize business; all leading commercial banks have been offering foreign currency accounts to their customers. Bank Alfalah has done it by facilitating its customers to have their foreign currency accounts in the bank. At present, BAL offers US Dollar & UK Pound accounts and profit is being paid on half yearly basis.

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Online Services: Bank Alfalah provides on-line services to its customers. At present, this service facilitates the customers to deposit and transfer their amounts from one branch to another of BAL. It is being planned to launch a universal account to update this facility and make it more extensive. Besides the accounts variety that has been mentioned in the previous sections, Bank Alfalah Islamic Banking provides a wide range of products that are purely Islamic based. These products fall in the category of Musharakah, Maharajah based financing, that is related to the trade concerns and not the interest based financing or mark up thing. Alfalah Visa Cards (FREE forever): Your Bank Alfalah Credit Card is your partner everywhere and is globally accepted and welcomed at locations displaying the VISA logo. It is accepted at nearly 30 million locations in more than 150 countries around the globe and over 18,000 Bank Alfalahs establishments in Pakistan. Alfalah VISA lets you pay for shopping, travel, entertainment, meals and much more. Card members are facilitated through a number of promotions from time to time. In addition, there are a number of strategic business partnerships with leading local and international brands for purchase of home appliances at exciting Step-BY-Step (SBS) monthly installment plan with free home delivery at lowest interest rates. Alfalah Hilal Cards (Debit Card): In our endeavor to give you versatile banking options to fulfill your financial needs, Bank Alfalah Limited presents you the Alfalah Hilal Card, the first Visa Electron International Debit Card which gives you an unlimited access to your current / savings account with a simple swipe, at millions of retail shops and ATMs, worldwide. The Alfalah Hilal Card is globally accepted welcomed at all locations displaying the VISA/ ELECTRON/PLUS logos with self-printing POS terminals. Your card is accepted at nearly 13 million physical locations in more than 130 countries round the globe with above 14,000 major establishments in Pakistan.

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It is easy to operate and can be used on any electronic self-printing POS machine where VISA is accepted, locally and internationally. Balance transfer facility also provided by Bank Alfalah through Debit Cards. Car Finance: Financing a car at Alfalah Bank is very easy with the due favor of no collateral requirement. Alfalah Car is a consumer-financing scheme that enables a customer to own his desired car at easily affordable and flexible installation with minimum down payment and insurance. All maintenance and insurance expenses are borne by the bank because of the reason that the ownership of the car is still with the bank even after the signing of the contract. The bank is just receiving the rentals from the customers. All businessmen, Corporate Employees, Salaried and self-employed professionals having net take home income in excess of three times the monthly installment are eligible to take the advantage of this scheme. The customer is able to finance their vehicle(s) the smart way with BAL. Bank will purchase the vehicles(s) of the customers choice and later rent to the client at a pre agreed rental amount. Ownership of the vehicle(s) is transferred to the client upon satisfactory payment of all the rentals by the time the customers security deposits period expires. Alfalah Agri Finance: Bank Alfalah Ltd. (BAL) Agri finance program has been named as "Bank Alfalah Zarie Sahulat. Bank is extending this service to the clients on a competitive markup rate. BAL model is in letter and spirit based on SBP instruction. The scheme now covers financing of a multitude of activities related to crop production, harvesting, transportation, marketing, storage, processing, packing, export, Agri development, working capital and fixed investment financing of Agri non crop activities, storage, silos, etc. making it quite exhaustive and comprehensive. The products have been, therefore, designed keeping in mind objectivity of practical applicability in market scenario and to cater to the most commonly demanded items of agricultural financing by farmers.

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Alfalah Karobar finance: AKF is a Running Finance facility between Rs 0.50M to Rs 10.0M. At Bank Alfalah,

more than 65 branches are designated to deal with AKF business in the entire country. The purpose of the AKF is financing procurement of raw material, finished goods and receivables of SME businesses. Money Gram: Bank Alfalah limited, in collaboration with Money Gram, offers remittance service to Pakistan. Money Gram is person to person money transfer service that allows consumers to receive money in just a few minutes. Money Gram is available in over 156 countries and in more than 40,000 locations worldwide. With Money Gram your money is transferred immediately and usually arrives at the receiving end within 10 minutes, other services can take days or weeks. There are no complicated procedures and you do not need a bank account or a credit card. Whats more, the receiver is handed the cash immediately. Bank Alfalah Rupee Traveler Cheques: Rupee travelers cheques are being pioneered by MCB Bank limited initially but these days many banks are engaged in providing this service to the clients. Rupee traveler cheques are been issued at different denominations at Bank Alfalah. Relationship Banking: Relationship banking is basically a term been used for the purpose of the banking 365 days all along and 24 hours a day. The Bank prides itself on recognizing and fulfilling the varied financial needs of its customers. In doing so, it tries to develop and build upon relationships that are based on mutual trust and confidence: the very essence of what they call "Relationship Banking". A customer can operate his account from any branch in the country, or through its 24-hour ATMs. Bank Alfalah Lockers: Before disclosing the details of lockers facility by the bank, a quote needs to be mentioned,

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If your jewellery has been giving you sleepless nights, and the prize bonds tucked in the bottom drawer make you feel tense, it's time to discover peace of mind. Bank Alfalah provides safe deposit locker facility to its customers for safe keeping of their valuables like documents, securities and jewellery etc. For the snatching of the peace of mind, Bank Alfalah is the best Trustee amongst all. Because of the reasons that the bank is providing extraordinary services for the easy lockers. The online and Phone Banking: Contrary to other banking organizations, Bank Alfalah is constantly engaged in finding new ways to facilitate its customers and to increase its customer net. THE BANK ALFALAHs ON-LINE BANKING is a competitive edge for them; because in this service they provide a facility to their customer that they can operate transfer their amount on a phone call! All the requirements for inquiries, transactions, suggestions and complaints are handled over the phone. 24 hours UAN connectivity with unmatched ease and convenience servers our customers efficiently through interactive Voice Response delivering cards, PIN generation and other services. Automated Teller Machines (ATMs) The ATMs are provoking new ways to attract the customers through facilitating transactions. The Auto Teller Machines at Bank Alfalah are continuously running and delivering instant cash facilities to the customers any time in the day. Its ATMs allow the customers an access to their money 24 hours a day, 7 days a week, giving you flexibility to bank at your convenience.

Miscellaneous Services:
1. Issuance of Pay Order 2. Issuance of Demand Draft 3. Collection of Local, outstation and foreign bills

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4. Import export facilitation

Price:
The term pricing refers to: The key to pricing is to Build value into the product and price it accordingly. Bank Alfalah has to face the ever-increasing competition in the industry. As the number of competitors are increasing day by day but still Bank Alfalah enjoys a reasonable market share with the facts of providing excellent services amongst the competitors. BAL provides different products and services to its customers, which have been discussed in previous section. Pricing of products means the commission to be paid by the customer in return of services provided by the bank. The price paid for the services mainly include: 1. Mark up 2. Bank charges 3. Fees and bank commission etc. These charges and commissions are prescribed on Schedule of Bank Charges (SOC) that keeps on changing time-to-time, and issued by the bank periodically (generally after six months).The price charged for all the products and all the services is given in complete detail in the schedule of bank charges for Islamic banking are as follows:

Place:
Placing refers to the following methodologies taken by an organization: Various activities the company undertakes to make the product accessible and available to the target customers Place refers to the means by which our customer acquires product. This includes the actual place it is purchased (the shop, the telephone, the web page, the warehouse) as well as the actual route of distribution. Simply place refers how you will sell your product to your customers.

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The objective of Bank Alfalahs has always been to expand its branch network to meet clients needs as has been mentioned clearly in the mission statement of the bank. . Bank is well positioned and geographically poised, to cater for increased business demands, from its existing potential clientele. Bank Alfalah has 380 branches, spread all over Pakistan covering major business centers and principle cities. Bank plans to add more branches to his growing network in the ensuing years. At present, Bank Alfalah has opened all its branches at commercial and business areas or near to commercial areas so that the customers or clients face no problem in reaching the bank. Head Office of Bank Alfalah is situated in Karachi.

Promotion:
Promotion is a term that refers to the following statement: Steps taken by the company to enhance its sales by focusing the target markets Thus we can say that promotion can be categorized into different categories based on the above mentioned marketing perspective definition of promotion. So advertisement, sales force, billboards etc are major sources through which the promotion scheme can be implemented. This is an age of competition. Numerous organizations are providing financial services to the customer. These days everyone is facing pressure of competitors. In this world of growing competition, the only way to survive and grow, for an organization, in the market place is the proper marketing and promotion of its products. Same 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 emphasizing much on their marketing strategies. In this scenario, the key for a bank to succeed and attract its customers is adequate promotion of its products &services. The bank can attract and retain its customers through:

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1. Sales Promotion 2. Advertisement 3. Direct Marketing 4. Public Relations The most prominent and important way to attract a large number of customers is the advertisement of bank and its products/services. Bank Alfalah has adopted different approaches for the accomplishment of this purpose. For example, formation of Alfalah Mini Golf near Gulberg is a major step taken by BAL. It not only provides a source of recreation to the people but it serves as a major source of marketing for the bank. Due to Bank Alfalahs assistance for the construction of fountain in Liberty Market Square, it is named as Bank Alfalah Square. BAL Square, for being situated in such a business and commercial area has its unusual importance and has resulted into banks promotion. Construction of Shaahdin Manzil as main branch Lahore is also a revolutionary step for Bank Alfalah. It would not serve just as a main branch only, but it would also be a great source of ever growing marking and promotion of bank. Bank Alfalah issued its own rupee travelers cheques with highest denomination. I have seen some colored advertisements of RTCs in some well-known magazines like Herald. Also, some fascinating advertisements have been printed on Daewoo City Busses, which serves as a dynamic source of marketing. However, one drawback or shortcoming is that, Bank Alfalah has formalized a lot of products and services for its customers, even more than other commercial banks, but any advertisement on electronic media has not been seen. Since, to take over the major competitors and to overcome the threat of being taken over Bank Alfalah is also emphasizing more on its advertisement.

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Along with the advertisement, the bank is providing personal services to its clients with maximum security as other banks provide. Bank also encourages the public relation policy of marketing. Some brochures and promotional material has been printed but it is distributed mainly through the clients who visit the branch for their day-to-day business or through the customers who come to get information about new schemes launched by the bank.

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Recommendations
It was an interested experience to do internship in Bank Alfalah Limited. The staff was highly cooperated and due to their help I learned big deal about modern banking. I suggest that such an internship program highly integrative for the students education so that the students should be enquired with the knowledge of practice world .I do summarize that it would be a great help to me in selection of job or future field of work. Here I am putting some suggestions, which will enable the bank to compete with other banks more effectively & efficiently. 1. It is observed that the employees were overburdened so they have to stay at

branch till late at night. In this way their efficiency is affected and hiring more employees can reduce their work. 2. 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. 3. Bank Alfalah Limited should properly advertise and Communicate to public about the services provided by it, so that more customers will be attracted. 4. The banks management should give more incentives and pay scale of officers

should be revised & improved. 5. Expenditures 6. System 7. IT draw must be control, which are very high.

and operations should be more defined and organized. backs should be improved. Computer systems must be changed.

8. Management should distribute work equally among different employees. Some of the employees are overburdened while some sections are overstaffed. 9. 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. 10. Employees must be facilitating with the benefits like bonus, gratuity funds, increments, and medical. 11. General working conditions ought to be improved

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Conclusions
If I have to express my experience of internship in Bank Alfalah Limited Hasilpur Branch Lahore I would briefly say: Bank Alfalah is a good Organization in the way that anybody can join it for his/ her longterm career. Overall working environment is comfortable. Management of branch cares a lot of its employees and considers them as the Asset of bank. Behavior of senior executive of bank is very polite and they are caring about the individuals career and their growth. However management is very demanding about the targets but good reward at the achievement of assigned targets is awarded. Employees at Bank Alfalah are quite efficient. As Hasilpur Branch established few years ago but it is counted in some top braches of Punjab. DMS department of HSP Brach was on 2nd position at end of financial year 2010 among 15 branches. Employees work more than their working hours and it is all according to their will. It also shows their loyalty, commitment to organization. All the customers are entertained individually. Same kind of behavior and attention is given to all the customers. Getting ideas for improvement from customer side is a new idea and that is working very well in Bank Alfalah Ltd. All the customers are asked to fill a suggestion form and the standards of the bank are improved through them. Prioritizing its product portfolio in line with its corporate and consumer needs and wants the bank is committed to develop products that give more value to its customers in both the sectors. In bank, all the work is done on computers. All the entries are made in computer. Balance is fed into the computer. This increases efficiency of the bank.

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During my internship training I gathered information regarding how a successful bank operational aspect decorticated with the practical. I found my internship training at Bank Alfalah Limited Hasilpur Branch Lahore to be a very rewarding experience. The training was beneficial because it helpful me to aware a real life working environment. So far my learning is concerned; all the employees at branch were quite cooperative. They helped me to understand the activities of a bank to possible extent. Their good attitude gave me more confidence to learn more and to ask if I have any query in my mind. Besides their ever going activities they never get irritant by my questioning. I had made an honest effort to present the working & operation of Bank Alfalah Limited Hasilpur Branch Lahore in simplest way. I feel pleasure that I have really gained a lot during 6 weeks & enjoyed working with experienced cooperative & intelligent staff.

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References:
1. http://ilm.com.pk/directories/banks/bank-alfalah-limited-pakistan 2. http://bankalfalah.com/about/financial_performance.asp 3. http://en.wikipedia.org/wiki/Bank_Alfalah 4. http://bankalfalah.com/general/deposit_accounts.asp 5. http://bankalfalah.com/hilalcard/index.asp 6. http://bankalfalah.com/zarie/index.asp 7. http://bankalfalah.com/treasury/home_remittance.asp 8. http://bankalfalah.com/moneygram/index.asp

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