Академический Документы
Профессиональный Документы
Культура Документы
Introduction to Banking
History of bank is as old as human society. Forever since man came to realize the
importance of money as medium of exchange, the necessity of a controlling or regulating
agency or institution was naturally felt.
The work ‗BANK‘ is derived from the word „BANCUS‟ or „BANQUE‟ which means a
bench. Other authorities hold the opinion the work ‗BANK‘ is derived from the German
word ‗BACK‘ which means ‗joint stock fund‘. Later on, when the Germans occupied
major part of Italy, the work „BACK‟ was Italianized into „BANK‟
What is Bank:-
There are many definitions of the word "bank" even the standard encyclopedia and law
books find it difficult to state exactly what a bank is.
There have been many attempts by different writers to explain the exact significance of
the term ―bank‖. Here some of the definitions are quoted as follows.
According to Kent:-
“An organization whose principle operations are concerned with the accumulation of the
temporarily idle money of the general public for the purpose of advancing to others for
expenditures.”
In March1947, there were 487 offices of banks situated in the area which now comprises
Pakistan, but soon after Independence many banks closed their branches and offices. On
June 30, 1948 there were only 195 bank branches left in Pakistan. This situation posed a
great threat to the economic position of Pakistan.
There were 19 non-Indian foreign banks in Pakistan at the time of independence with
the status of small branch network, whose policies and operations were controlled by
their head offices abroad. These banks were solely engaged in export of crops from
Pakistan. There were only two banks in Pakistan at the time of partition i.e. Habib bank,
which had transferred its head office from Bombay to Karachi after the announcement of
the partition and Australasia bank which have been working in Pakistani territories
prior to June 1947.The Govt of Pakistan tried hard to eliminate the banking crises.
The Indian Govt withheld Pakistan's share of 750 million in cash balances held by her
at the time of independence. The forgoing developments clearly brought home the
urgency of assuming the control and currency in Pakistan and brought to the force the
need to setup a central banking institution to take the place of reserve bank of India.
Therefore it was agreed between the Govt of India and Pakistan to authority of Pakistan
from 30th September 1947 to 30th June 1948.
Nationalization of Banks:-
The banking reforms turned out to be a transitional and temporary step and hardly after
18 months, the government nationalized the banking system. Thus through the
nationalization bank act 1974, SBP and all commercial banks incorporated in Pakistan
and carrying on business in or outside the country were brought under the government
ownership with effect from January 1974.Thie ownership and management of all
Pakistan banks stood transferred and rested in the federal government .The shareholders
were provided compensation in the form of federal government bonds redeemable at par
any time with in a period of fifteen years. The amount of compensation was equal to the
break up value of the shares in case of commercial banks. For the SBP shares the amount
of compensation was estimated on the basis of average of the clearing quotations during
the 6 working days preceding nationalization.
The chairman/ director and chief executive of various banks were removed from their
offices other than those appointed by the federal government and the state bank. The
central board of banks, managing committees and similar other bodies were dissolved. A
Pakistani banking counsel was established for nationalized commercial banks to co-
ordinate their activities. As a result of merger of banks the following 5 major banking
companies were formed:
National bank of Pakistan
Habib bank limited
United bank limited
Muslim commercial bank limited
Allied bank of Pakistan
The effects of Nationalization of the banking system were favourable to overall banking
industry because number of branches increased from 3397 on 31st December 1973 to 7306
by December 1982 and these numbered 8130 by 30th June 1998. Bank deposits also
increased from Rs. 19025 billion in 1973 to Rs. 117.05 billion in 1932, and these were
1000.72 in June 1998.
Foreign branches increased from 15 in 1973 to 95 in 1982 and by June 1998, these were
81
In 1985, commercial banks transformed their nomenclature stating all Rupee saving
accounts as interest-free, but the procedures adopted by the commercial banks were
declared unislamic by the Federal Shariat court. In 1997, Al-Meezan Investment Bank is
established with a mandate to pursue Islamic Banking, In January 2002, the State Bank of
Pakistan granted Meezan Bank the nation's first full-fledged commercial banking license
dedicated to Islamic Banking. On 30 June 2007, 5 Islamic banks were operating in
Pakistan.
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, Karachi, Lahore and Rawalpindi. The Lahore branch was opened on 15th
December 1978. This branch was opened at that time when some other international
banks like Citi Bank, Bank of America, and American Express etc. were already working.
But within a few years this branch crossed mostly all the other banks in case of deposits,
advances, imports and exports dealings, guarantees, traveler‘s cheque sales etc. In 1991,
the BCCI was banned, when it 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.
In July 1991, the branches of BCCI in Pakistan at that time were taken over by The
Ministry of Finance and SBP. All three branches were given under Habib Bank Limited
after valuation of its assets for 15 million dollars, which were named as Habib Credit and
Exchange Bank (HCEB) and these were working as subsidiary of Habib Bank Limited for
around about 10 months from 14 March 1992 to 31st October 1992.
The Abu Dhabi Group, comprising prominent members of the ruling family and
leading businessmen of UAE, own the majority shareholding in BAL since its
privatisation in 1997. The chairman of the board, H.E. Sheikh Hamdan Bin Mubarak Al
Nahayan (holding 10.03% shares of BAL), is Federal Minister of Public Works, United
Arab Emirates. The chief executive of the bank is a career banker with over 43 years
experience both within Pakistan and abroad, and has been with the bank since its
incorporation. A team of experienced professionals assists him. BAL, operating the sixth
largest network of 195 branches in Pakistan has branches in Bangladesh and Afghanistan,
and is on the lookout for further regional expansion.
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 its
commitment to culture of innovation and seeks out synergies with clients and service
providers to ensure uninterrupted services to its customers. It perceives the requirements
of its customers and matches them with quality products and service solutions. During
the past ten years, it has emerged as one of the foremost financial institution in the region
endeavoring to meet the needs of tomorrow today.
The bank also entered into other dimensions of financial services – brokerage, asset
management, and insurance – through its subsidiaries, which are in their development
phase and would require sometime before emerging as material contributors to BAL‘s
revenue stream.
Bank Alfalah Ltd. is committed to the projection of Pakistan's rich cultural heritage. It
strongly believes that the all must fulfil its social responsibilities in addition to
achievement of the commercial objectives. A few examples set by Bank Alfalah are
Alfalah Square, Alfalah Mini Golf and the resurrection of Shahdin Manzil on the main
Mall road (Shahrah-e-Quaid-e-Azam), Lahore.
Vision
“To be a Leading Financial Institution…..”
Mission
“To maintain a competitive edge …..”
Corporate Philosophy
BAL Culture:-
The culture at Bank Alfalah is diversity based. People come from various regions, they
don‘t directly come to Bank Alfalah as their first job, so they come from various other
organizations, so there is a pool of culture there. But after joining bank Alfalah they do
not find any difficulty in exercising their skills and practices and there is no obligation to
adopt and particular culture
They plan their work very properly as the top management direct their
employees in this case there is no biased planning for one group of people
and unbiased for others. All are equally treated. Praising element is found in
frequent and due to this the communication level also enhanced. Employees
can easily communicate with their managers without any fear.
Members having strong track record of honesty are held in high esteem, they are
honoured in every place. However, maintain controls and if the trust is breached,
withdraw it, and let the employee know. Friendliness is also a plus point in their culture.
As the supervisor shows fairness when dealing with its teams, and respects and adheres
to rule. Friendliness and trust should not be balanced so that there are not mistaken for a
sign of weak management. BAL develops employees by assigning them additional
responsibility where possible.
Board of Directors:-
H.E Sheikh Hamdan Bin Mubarak Al Nahayan Chairman
Abdullah Khalil Al Mutawa Director
Abdullah Naseer Hawaileel Al-Mansoori Director
Khalid Mana Saeed Al Otaiba Director
Ikram Ul-Majeed Sehgal Director
Nadeem Iqbal Sheikh Director
Mohammad Saleem Akhtar Chief Executive Officer
Company Secretary:-
Hamid Ashraf
Auditors:-
KPMG Taseer Hadi& Co
Website
www.bankalfalah.com
Branch Network
Conventional Banking Branches
Karachi Sukkur
Hyderabad Nawabshah
Quetta Chaman
Gawadar Mirpurkhas
Larkana Lahore
Islamabad Rawalpindi
WahCantt Faisalabad
Peshawar Attock
Hungu Multan
Sailkot Rahin Yar Khan
Gujranwala Sahiwal
Sargodha Gujrat
Mardan Bahawalpur
Chiniot Daska
Hafizabad Chichawatni
Arifwala Pakpattan
Dera Ghazi Khan Mingora,Sawat
Jhelum Mian Channu
Sheikhupura Dera Ismail Khan
Okara Abbotabad
Jhang Toba Tek Singh
Burewala Kohat
Sadiqabad Mandi Bahauddin
Lala Musa Ahmedpur
Daharki Ghotki
Haroonabad Hasilpur
Kharian Gilgit
Chakwal Bhalwal
Kasur Mansehra
Bannu Chitral
Hazro Kotla
Mirpur Kallar Syedan
Gujar Khan Gojra
Muridke Jaranwala
Bahawalnagar Muzaffaegarh
Khanpur Haripur
Karachi Lahore
Islamabad Rawalpindi
Peshawar Gujranwala
Faisalabad Multan
Sialkot Rahin Yar Khan
Overseas Branches
Branch Manager
Remittance Dept..
Current Account:-
Current account is usually opened by the businessmen, contractors and other concerns
who use their cash in daily operations.
2year 6.00%
3year 6.50%
4year 7.00%
5year 7.50%
*Term deposit shall be eligible for profit on the condition that it will not be withdrawn
before maturity date.
Royal Profit:-
Features of Royal Profit:-
Minimum deposit requirement of Rs.50, 000/-
only
High profit on high balances
Profit will be credited on monthly basis
No restriction on no of deposits and withdrawl
Service charges of Rs50 in case of balance less than Rs.5000/=
Zakat deduction at 2.5%
like companies, corporate etc are not eligible for opening of this account. The rate given
on these kinds of deposits are more than given on other PLS accounts.
Features of AFA:-
Only one account per customer will be allowed across all branchs of BAL
Minimum balance requirement for opening this account is Rs. 10,000/- with a
maximum of Rs.1, 000,000/-
Three debit transactions are allowed in a month either through cheques or Debit
Card.
No restriction on deposit transactions.
Free first cheque book of 25 leaves
Debit card free of cost.
Profit will be calculated on monthly minimum balance basis and will be credited
in the account on quarterly basis.
No profit shall be payable for a particular month, if the minimum balance for any
particular day of said month falls below the amount of Rs. 10,000/-.
Online facility
Facility of personalized banking on Alfalah‘s sales and service centres
Complementary Warid mobile connection
Service charges of Rs.50 if not maintaining balance of Rs10,000/-
Account statement will be generated on half yearly basis.
Features of AMA:-
Minimum placement limit is Rs. 100,000/- and maximum placement limit is
Rs.15,000,000/-
Expected Rate of profit is 10% Per annum (as per PLS governing rules)
Profit will be automatically credited on the 1st working day of each month into
customers Current/PLS/RP/BBA account
Free Personal Accident Insurance coverage up to the deposit amount or Rs.
1,500,000/- whichever is lower.
Lockers:-
Bank Alfalah LTD provides lockers facility to its customers. The lockers are
issued only to the depositors. No lockers are issued to any unknown person or
non account holder. Bank provides safe deposit locker facility to its customers
for safe keeping of their valuables like documents, securities and jewellery etc.
Features of Lockers:-
Various sizes to choose from small, medium & large.
Annual locker rent ranges from Rs.1, 000/- to Rs.3, 500/-.
Locker rent is waived for customers maintaining a minimum deposit of Rs.2
million in current account or above US $25,000/- in a current account or US
$50,000/- in a savings account.
Key Deposit: Rs.1000/- (Refundable)
The license fees lockers will be payable in advance every year and no part of the
same shall be refundable in any circumstances.
All expenses incurred to open a locker resulting from customer negligence will be
bear by customer.
Charges of lockers are same for the staff of bank.
Remittance:-
Bank Alfalah provides direct and indirect foreign currency remittance facility around
the world through money gram and international correspondent banking relationships.
Money Gram:-
Bank Alfalah limited, in collaboration with MoneyGram, offers
remittance service to Pakistan. MoneyGram is person to person money
transfer service that allows consumers to receive money in just a few
minutes.
Hilal/Debit Card:-
Alfalah HilalCard is a debit card that gives an access to bank
account. Alfalah HilalCard allows customer to purchase goods
at merchant establishments across Pakistan and abroad and also
gives freedom to withdraw cash from any VISA/
Electron/PLUS ATMs in Pakistan and abroad, and all local
1-Link and MNET ATMs. It can also be used for the payments of utility bills and Alfalah
credit card bills.
ATM facility
Immediate payment from bank account
In case of Classic HilalCard daily transaction limit is up to Rs. 50,000/- on cash
and Rs. 50,000/- on retail transactions
In case of Gold HilalCard, daily transaction limit is up to Rs. 1,00,000/- on cash
and Rs. 1,00,000/- on retail transaction
In case of card stolen, a new card will be issued within 1 week of reporting the
loss with replacement charges of Rs.200
Alfalah HilalCard is valid for 3 years from the date of issue
Alfalah Education:-
Alfalah Education is the unique Term Deposit that not only
provides competitive profit on deposit but in case of the death
of depositor, ensures monthly tuition fee payment of children,
for upto 15 years of schooling fee absolutely free. Alfalah
Education term deposit is issued as a one year TDR, renewable
at maturity, make available to individuals/joint accounts only.
2. Consumer Banking:-
As financial institutions offer diversified and attractive products and service packages
for the consumers, consumer Banking in Pakistan is becoming a challenging industry.
However because of the prudent financial policies and clear understanding of the market
scenario, Bank Alfalah has been able to maintain its position among the leaders in
consumer banking in Pakistan. BAL‘s responsive and alert teams, spread in branches all
over the country provide timely and accurate information to the consumers. This unique
personalized service has transformed the status of the Bank into the „Caring Bank‟.
Products offered by Bank Alfalah are,
Credit cards
Agriculture Finance
Auto /Vehicle loans
Home Loans
Credit Cards:-
Bank Alfalah Credit Card is globally accepted and welcomed at
locations displaying the VISA logo. It is accepted at nearly 30 million
locations in more than150 countries around the globe and over 22,000
Bank Alfalah‘s establishments in Pakistan. Alfalah VISA lets its
customers 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.
Offers a comprehensive cover up to Rs. 3.5 Million on Alfalah VISA Gold Card in
case of an accident, while traveling on any common carrier
Utility bills payment
24 hours phone banking service
In case of late payment, charges are Rs.600 or 10% of minimum amount whichever
is high
Service charges of 3% per month on cash advance and retail transactions
In case of card stolen or lost, replacement fee is Rs500
Agriculture Finance:-
Bank Alfalah Limited acknowledging the vital
role of a agriculture in the economic
development of Pakistan has designed Rural
Finance Program named as "BANK ALFALAH
ZARIE SAHULAT‖, which offers finance
facilities covering entire spectrum of Farm and
Non-Farm activities both for production and development purpose. Alfalah ZARIE
SAHULAT is available for short, medium and longterms.
Eligibility Criteria:-
An eligibility criterion for various products of Bank Alfalah Zarie Sahulat is:
Documentation:-
Copy of CNIC
Rural Finance Application form which is available at Bank Alfalah Branches /
Website
Pass Book issued by Revenue Authority
Copy of Khasra Gardawari (if applicable)
Proof of leased in land (if any)
Home Loan:-
Bank Alfalah Limited (BAL) with the objective to touch
every aspect of their customer‘s life, and encouraged by
the successful launching of a number of consumer finance
proposition, which have been well received in the market,
has launched ―HOUSE FINANCE‖
Tenor:-
Product Minimum Tenure Maximum Tenure
Alfalah Home Buyer 3 years 20 years
Alfalah Home Construct 3 years 20 years
Alfalah Home Improver 3 years 10 years
Alfalah Home Start 10 years 20 years
Alfalah Balance Transfer
3 years 20 years
Facility
Limit of Financing:-
Minimum limit
Product Maximum limit (M)
(M)
Alfalah Home Buyer .5 20
Alfalah Home Construct .5 20
Alfalah Home Improver .1 3.5
Alfalah Home Start .5 20
Alfalah Balance Transfer
.5 20
Facility
Eligibility Criteria:-
A Pakistani National.
Age is between 23 and 60 years at the time of application. (Subject to maximum
age of 65 at the time of maturity).
In continuous employment in a permanent position for the last 2 years or more.
OR
Have existing 3 years (or more) of business or professional experience.
Gross annual income is Rs: 240,000/-or more (Spouse‘s income up to 50% can also
be combined with him).
Requires a financing requirement starting from at least Rs. 500,000/-
Have been a Bank Alfalah‘s borrower for past one year with clean payment
record.
3. Financial Services:-
BAL provides following financial products:
Structured Finance
Foreign Trade & correspondent banking
SME Financing
Lease Finance
Structured Finance:-
BAL‘s SFU‘s activities cover advisory assignments, such as
privatization, Mergers & Acquisitions (M&As), domestic
SME:-
Realizing its corporate social responsibility and carrying forward the
image of "The Caring Bank", Bank Alfalah started a separate department at
the Head Office level in early 2004. The SME Department was established
with a mandate to foster SME finance at BAL, explore opportunities for
developing structured product programs for SMEs, introduce the concept of
Dedicated SME officers and finding market based solutions to fill the
financing gap to this important and under-served business segment.
Bank Alfalah believes in innovation, simplification of procedures, and
reduction in turnaround time and customer friendly service. To accomplish this resolve,
the SME Department is supported by 86 dedicated officers in 57 branches of the bank
who are nurturing valuable relationships in the SME sector.
Products of SME:-
Alfalah Karobar Finance
Alfalah Milkiat Finance
Lease Finance:-
In modern days leasing has now become an economic and financial reality of primary
importance. It is the originality of the leasing techniques and its economical advantages,
which has enabled it to enter the world of industrial investment in Pakistan and on the
international scene.
BAL works closely with its existing and prospective business partners to deliver most
comprehensive and tailored leasing solutions to meet all asset needs. BAL offers the most
competitive and flexible terms & conditions for lease concerning choice of assets,
repayment, pricing, and tenor which range between 3 to 5 years commensurating with
the specific requirement of the lessee, useful life of the assets and client‘s ability to repay
the lease rentals.
BAL offers two types of lease finance facilities, i.e., Direct Lease and Sale & Lease
Back. In the case of direct lease, direct payment is made to the vendor/supplier/indenter
for the purchase of asset(s). While in the case of sale and lease back, the client having
bought the asset(s) from his own funds may refinance and the payment is made to the
client.
Field of Activities
This section of report provides and comprehensive view of functions of different
departments in Bank Alfalah. In this part of report I have discussed about every aspect of
the bank which I observed and perceived during my internship programme. Bank
Alfalah limited Model Town Branch is newly opened branch (open in 2006), and yet not
offering many products of bank like house finance, lockers, agriculture finance. But
branch has strong deposit base of 1.2 billion as on 31 June, deposits are mainly consists
of TDR (term deposit receipts) amounting Rs.600million, current accounts Rs.250
million and others(saving, basic banking account and kifayat account) Rs.350 million, on
the other hand advances are on the lower side around of 200million only. Moreover
there are about 1100 current accounts, 150 saving accounts, 150 royal profit, and 100
foreign currency accounts.
There are mainly 7 departments in Bank Alfalah Ltd. (13, Bank square Central
Commercial Market, Model Town, Lahore)
1. Customer Service
2. Account opening
3. Accounts
4. Clearing and Remittance
5. Credit
6. Car Financing
7. Cash
Balance Confirmation:-
The Customer relationship officer is responsible to provide answer to inquiries about
balance on telephone as well as personal visits of the customers. Customer service
department also issues balance confirmation certificate on request of customer and
charges of Rs.250/- are debited from customer account.
Issuance of Statements:-
The bank provides statements of accounts on the requirement and instruction of the
customers. Normally the bank sends the statement of account after every six months but
if desired by the customer the statement can be sent on quarterly basis monthly basis or
even weekly basis.
Closing of an account
Issuance of lockers
Opening of an Account:-
The opening of an account is a contractual agreement between the bank and the
customer, after which both indulge in a mutually beneficial business relationship.
Process of account opening is the first contact which the customer establishes with the
bank and vice versa. But a branch will exercise maximum care while opening a new
account and it should not violate,
SBP rules and regulations
Applicable local laws
Bank‘s Internal Policy
For an account opening the client is required to provide the following information. The
first part establishes the currency in which the account is to be maintained/ operated.
The currencies include
Pakistani rupee.
U.S. dollar
Pound sterling
Euro
The second part then establishes the preference regarding the type of account to be
maintained. The various choices offered are
Profit & Loss / Savings account.
Current account.
Foreign currency Account.
Royal Profit Account
3. Partnership Account:-
Covering letter (letter-head) requesting for opening of an account with BAL,
Model Town, Lahore.
Account opening form duly completed (corporate section also be filled), signed
and stamped by all partners.
14. some peculiar circumstances arise, get the profit out of his account but this is not
the case. The name and address of a close relative is only recorded in order to
undertake necessary communication when needed.
15. In case of a business concern there are two more things that are to be provided by
the business.
16. Type of organization. The various types of organization which are present in
Pakistan at present are
i. Limited company
1. Public
2. Private
ii. Partnership
iii. Association/Club/Society
iv. Sole-Proprietorship
17. The business concerns also have to give their full name, brief description of the
business, date of incorporation, and place of incorporation, national tax number,
telephone number and fax number.
18. Nature of an account.
19. The choice of either the deduction or non-deduction of zakat also needs to be
highlighted. Zakat is deducted out of PLS / saving account.
20. Details of other account/s maintained with other branches of BAL or other banks
are also to be given.
21. The name, signatures, and account number of the introducer. The introducer is a
person who already has an account in the same branch. It can also be a person
from the staff of the branch as well.
22. Then the client also has to put forth the instructions regarding as to whether the
account would be maintained on the basis of ‗either or survivor‘, ‗jointly‘ or ‗any
one of us‘.
23. After this three signatures of the client are needed and if it is an account of a
business concern then the rubber stamp of the company/organization is also
needed below the three signatures.
24. In case of a joint account all the persons unanimously might give the right to
operate the account to one person. This right is also termed as mandate for joint
account. If the mandate is given to a person all join account holders must sign as
an evidence of their approval.
General Observations:-
Personal Information must be same as on CNIC no abbreviation will be used.
In case of cutting over writing must be signed by authorized signatory.
Online indemnity in case of online account.
Notarized vernacular form on stamp paper of Rs.100/- in case of customer‘s
signature is other than English/thumb impression.
Step 3-Introducion
The introduction of a current account holder is accepted for the opening of either a
current account or a saving account. The signature of the account-holder introducing the
account is obtained at the place provided for in the account opening form.
A/C number, sign it properly and mentions the no of leaves he requires. Normally BAL
issues a cheque book having at least 25 leaves. Every cheque book also contains one leaf
that is used for another issue of a cheque book.
Step8-Filling of KYC
For current, saving and basic banking account, separate files are maintained in which
the KYC is punched in numerical order and kept under lock and key in fireproof steel or
safe. KYC should contain the signatures of Operation manager and account opening
officer.
Stage 1
Branch have to mark the special condition of (WHUN) i.e. where about of the customer
unknown condition on system, immediately on the same day of receiving intimation
from centralized account opening. In such cases all the debit transactions are to be
referred to the OM / BM.
Branches to confirm the status to centralized account opening that the special condition
of WHIJN has been duly marked against these accounts.
On marking the condition, it is to be ensured that if the customer visits the counter at
the branch, he is referred to OM for address confirmation. In case if the customer does
not visit and seven days of marking the condition have lapsed then stage 2 is to be
followed to contact the customer.
Stage2
Stage3
If the customer is not traceable at the given contact numbers then Introducer of the said
account is to be contacted and correct details of the said customer address to be obtained.
Even if the introducer is not traceable or does not have the required information then the
Stage4
In case if the customer is not traced and the correct address can not be obtained, then
the account is to be closed by branch by giving 14 days notice with the prior approval of
BM. On closure of account if customer visits the branch, unutilized cheque book and
ATM cards are to be withdrawn.
Closing of an Account:-
Procedure for Closing an Account:-
1. The client who wishes to close an account first has to give an application, duly
signed on the pre-printed application of the bank. The client has to attach this
application with the liability form (explained below). The client can also give an
application on a plain paper, but correct signatures are very necessary. The
request for closing of an account specify,
i. Account Number
ii. Account Title
iii. Reason for closure of account
iv. Customer Name
v. Customer signature
vi. Verifying officer (name and signature)
2. After receiving a request from the customer, an officer mention,
i. Date and time of receiving the request for closing.
ii. Account opening date
iii. Status of cheque book and ATM card
iv. Clearance received from various departments
v. Name of the officer who close account on system
3. All account holders should sign the request for account closure.
4. In case of corporate account, resolution should be obtained.
5. A charges of Rs.150( except PLS saving account) will be debited from customer
account and following entry will be pass in the system,
Customer account Dr Rs.150/-
Other/Miscellaneous income a/c Cr. Rs.150/-
6. Along with the application to close the account client‘s Cheque book is also
received from him and then it is destroyed in order to prevent any misuse in the
future.
7. A liability form is filled and sent to the Trade Finance Department and Credit
Department in order to Cheque that the customer does not owe the bank a single
penny in any regard. A debit voucher and a credit voucher are also attached to the
liability form.
8. When both of these departments approve that the customer does not owe any
money to the bank and the form is returned to the account opening department
and the account is marked ‗account closed‘ along with the date on which it is so
marked. One thing has to be taken into immediate consideration that the account
number allotted to the client (who has closed his account), after closure of the
account becomes useless and is not allotted to anyone in the future.
9. After approval of the liability form, it is sent to either the Foreign Currency
Accounts Departments or the Cash Department, as the case may be so that the
officer who scanned it in the first place could return the specimen signature card
to the account-opening department.
10. Once the S. S. Card is received back from the concerned official then the liability
form, the client‘s application along with the specimen signature card is pasted in
the ledger right alongside. In the computer as well all the entries and records
related to that particular account are permanently deleted by using the ‗close
account‘ option.
Issuance of Lockers:-
Procedure for Issuance of lockers:-
1. Customer who wants a locker, request by filling an ―application for renting safe
deposit lockers‖, which specify:
i. Name
ii. Signatures
iii. Size of locker
iv. Fee for locker
v. Special instructions for locker operation if any (provide power of
attorney)
vi. Address of customer
vii. Telephone Number
2. Bank officer provides S.S card to customer for completion.
3. Officer receives complete documents, if non customer also letter of introduction.
4. In case of Limited company, obtain resolution indicating official authorize to
operate the locker.
5. Assign locker number and assign details in record of lockers
6. Retrieve sealed envelope containing keys for the locker being rented, handover
envelope to the customer against an acknowledgement on agreement form.
7. Accompany customer to locker to test keys
8. Record of visits by customer to the lockers will be maintained through customer
visit register.
Page# Key# Locker# Date Name Rent Rent Size A/c # Remarks
let out recovered recoverable
up to
Access to Lockers:-
1. Receive customer (or attorney, if power of attorney has been granted by customer,
obtain Customer S.S card.
2. Verify customer signature from S.S card.
3. Accompany customer to locker. Apply master key to enable the customer to use
his key to open the locker.
4. Upon departure of customer ensure locker is locked. Record departure time in
record of customer visit register.
5. Access to lockers can be blocked under instructions from legal authorities‘ i.e.
income tax, court order. The block will only be lifted when instructions are
received from the authority who has issued the original order.
6. In case of deceased locker holder, upon receipt of the notice of death of customer
access to the locker blocked until the executor of the deceased estate or authorize
7. person appointed by court or legal heirs complete all formalities required under
law.
Collection of Rentals:-
1. Lockers rental should be collected in advance for minimum of one year at a time.
2. Review diarizing cards one month in advance to identify rental due date, for
collection of rent debit customer account if debit instructions.
3. If there is no debit instruction from customer, send reminder to customer for
rental payment.
4. On due date where attorney to debit account held or on receipt of rent, prepare
voucher and entry pass in the system
Customer account Dr
Rent on lockers Cr
5. If rentals are still outstanding, send another reminder.
6. If rentals are remain unpaid, bank has an authority to break the locker after
sending customer a notice for breaking/open the locker
Surrender of Locker:-
1. Customer request through written notice for surrendering locker
2. Verify customer signature on notice
3. Verify that customer has paid all rent due,
4. Record customer visit to the locker and allow customer to empty contents from
lockers
5. Receive locker key from customer, check locker in the presence of customer to
ensure that the locker is empty.
6. Refund key deposit of Rs.1000/- to customer
7. Indicate refund of key deposit on record of lockers.
8. Drop the key into the locked box
9. At end of day, retrieve keys from locked box, place key in an envelope, seal the
envelop and indicate locker number, relock the box.
Re-possession of Locker:-
Re-possession of lockers should be carried out in the presence of witnesses comprising
of locker custodian, designated officer and court appointed official. A list of the contents
signed by all witnesses and contents along with list will be placed into the sealed
envelope.
Accounts Department
Functions performed by Accounts Department:-
The predominant functions performed by the accounts department are,
Budgeting
Reporting
Daily activity checking
Report generation
Maintenance & depreciation of fixed assets
Budgeting:-
Procedure for Budgeting:-
The budget is based on forecasting through past performance
1. First of all, the bank reviews what are its sources of funds and where it can utilize
these funds?
2. The main sources of the bank are deposits, securities issued by the bank,
borrowing from other banks, borrowing from SBP, bank‘s paid-up capital, its
reserve fund, profit generated by the bank.
3. The bank may employ these funds in lending to others at a high rate of mark-up.
Investment in securities, placement in inter-bank markets etc.
4. It also takes into account the income from other sources, cost of funds,
administrative expenses, and utilities expenses.
5. Then the budget is submitted to the head office for recommendation and
modification.
6. Monthly budget meeting is held by branch managers to analyze the monthly
performance, review of budget and performance is done on 3 rd of every month.
Budget and actual performances are employed and variance is computed for
analysis.
7. Variance can be negative or positive. Variance does not mean that it will have
positive effect on the overall profitability e.g. positive increase in deposits is not
always coupled with positive increase in advances.
8. The management will then drive the reasons for the variance and take remedial
measures to achieve the targets.
Reporting:-
The accounts department, in the form of reports, compiles the details of various
departments together. Each and every minute detail is provided in weekly, monthly and
annual reports. The repzorts are submitted to head office, SBP and to the government.
Accounts department prepares the following reports.
1. Statement Of Affairs
2. Income & Expenditure
3. Foreign Currency Report
4. Royal Profit Report
5. Currency Wise Deposits Report
.
Daily Activity Checking:-
All the operations performed in various departments of BAL are computerized. In
order to facilitate double-checking of all the transactions done, every concerned official
also passes vouchers manually. At the day end all the vouchers passed by various
officers working in different departments are given to the Accounts Department.
Furthermore the I.T. department also gives a detailed report to accounts department
which constitutes of the computer print outs of all the transactions / entries which have
been fed into the computer system of the branch that day, accounts department tally the
transactions with the computer generated report. The report of activity checking has the
following columns,
Moreover account department pass the entries of the vouchers regarding bank expense
(stationery, amount given to the employee of bank for fuel etc), bank income
(commissions, postage charges, on-line transaction charges), payment to government
institution (taxes, excise duty etc)
Report Generation:-
The exact number of reports generated by the accounts department on a daily, weekly,
monthly, bi-yearly and yearly basis is somewhere in the bracket of 500. From these
statements, five reports carry extreme importance. The five reports are
1. Daily position of advances and deposits
2. Statement of affairs
The various columns included in this particular report are position at the end of
previous year, expected at the end of month, yesterday‘s position, present day‘s position,
and the variance in the yesterday‘s and present day‘s position. The basic purpose of
generating this report is to manage the available funds in a proper manner and also to
maintain a healthy liquidity position.
All commercial banks are supposed to maintain 5% of their time and demand liabilities
with SBP. When all the branches of Bank Alfalah Limited send this report to the head
office head office consolidates the reports of all the branches and sends the consolidated
report to SBP. SBP, after analyzing the deposit position of the bank checks whether the
amount deposited with it is sufficient to meet the 5% requirement or not. Head office
after sending the report to SBP also calculates the 5% requirement amount for every
branch separately; if a branch is contributing an amount which is in excess of what is
required of that branch the head office gives an interest to that branch on the excess
amount, and if a branch is short of the its required amount then that branch has to pay
interest on the shortage to the head office..
2. Statements of Affairs:-
Statement of affairs is basically the balance sheet of BAL that is generated by the
accounts department on a monthly basis. But when we take into consideration the
standard contents of a balance sheet we have to make an exception in connection with
this statement as their no head such as equity in this statement, this statement gives the
complete detail of all the assets and liabilities on a monthly basis. When head office gets
this statement from all the branches it consolidates these statements in order to have a
picture of assets and liabilities of the bank. Other important statements maintained by
account department are,
Statement of review of performance
Statement of deposits maintained by financial institutions
Tax statement
Statement of assets and liabilities
Daily exchange position report
Clearing Department
Functions performed by Clearing department:-
Inward Clearing
Outward Clearing
Inward bills for collection
Outward bills for collection
Inward Clearing:-
Procedure for Inward Clearing:-
1. Inward clearing, in which the cheque are drawn by BAL customer in favour of non
BAL customer.
2. In the morning, the bank receives its own cheques, which have been presented by
the customers in some other bank to be deposited in their account
3. N1FT provides the facility of bringing cheques for inward
4. Bank makes clearing in computer by checking the balances of the respective
customer
5. If their balances are up to the mark then that cheques is cleared than pass in the
system
Customer account Dr
H/O account clearing Dr
Balance with Central bank Cr
6. If the balances are short then that cheques is bounced back to the related bank
with memo and cheque return charges are deducted from customer account.
Customer a/c Dr Rs.300
Cheque return charges Cr Rs.300
7. At day end, report through IBCA (inter-branch credit advice) is send to main
branch (LDA plaza, Lahore) with description of number of cheque returned and
total amount of cheques returned.
8. Entry in cheque return register showing the following columns
Outward Clearing:-
Procedure for Outward Clearing:-
1. Outward clearing, in which cheque is drawn in favor of BAL customer
2. Bank officer receives cheque from customer along with pay-in-slip.
3. The officer affix the following stamps,
Crossing stamp
Clearing stamp (clearly specify date and branch name)
Endorsement stamp
4. Every stamp except crossing is authorized by an officer.
5. The details of the cheque i.e. the amount, cheque number, the account number and
the name of the drawee bank are entered into the system
6. Send cheques through NIFT. a sheet and bundle covers along with the cheques to
ensure that all the cheques are being entered and sent through NIFT
representatives.
7. Credit the customer account, when know that all cheques are clear.
8. Entry pass in the system,
Customer account Cr
Balance with Central bank Dr
9. At day end, report through IBDA (inter-branch debit advice) is send to main
branch (LDA plaza, Lahore) with description of number of cheque logged in
outward clearing.
Remittance Department
Remittance department of BAL (Model Town) deals in two instruments,
Demand Draft
Pay Order
Demand Draft:-
DD is an unconditioned instrument in writing drawn by a bank in favour of any person
on a branch of its own bank or any other bank to pay a certain sum of money to his order
for value received. Demand Draft can be issued to customer as well as to non-customers
against cash receipt, cheque and against letter of instruction.
provide him a DD made on his account for a particular city like Islamabad. Then, after
having the total amount (including commission and advance tax) to be deposited with
application form, demand draft is issued in favour of the specified person in Islamabad
(supposed) and is drawn on Bank Alfalah Limited, Islamabad Branch. So, when this
demand draft is presented by payee in any bank, it constitutes the inward clearing of
Bank Alfalah Limited, Islamabad Branch.
Pay Order:-
PO is an order to pay. It is a facility provided to customers. It contains instructions for
payment to certain person whose name is written on pay order or in whose name/favour
pay order is prepared.
Making of PO:-
Suppose a customer requests his Bank Alfalah Limited, Model Town Branch, Lahore to
provide him PO made on his account on a name of a particular person within a city.
Then, after having the total amount (including commission and advance tax) to be
deposited with application form, PO is issued in favour of the specified person in Lahore.
So, when this PO is presented by payee in any bank, it constitutes the inward clearing of
Bank Alfalah Limited, Lahore Branch.
Cancellation of DD/PO:-
A customer can request for cancellation of PO/DD by writing a request for
cancellation and returning original copy to the issuing bank, the bank officer will verify
the signature and cancel the cheque and after deducting the cancellation charges of
Rs.200, the remaining (net) amount is paid to the customer through Cash Payment
Voucher.
Credit Department
Functions performed by Credit Department:-
Lease Finance
Credit facilities
SME Financing
SME Financing:-
Products of SME:-
1. Alfalah Karobar Finance
2. Alfalah Milkiat Finance
Features of AKF:-
Finance Facility for procurement of raw material, finished goods and other
working capital requirements of the business.
Amount ranges from 0.5M to 10 M.
Quarterly mark-up payable within 15 days of its becoming due.
Mark-up varies in line with money market trends
Processing time 20 working days from the date of receipt of complete Loan
Application Form along with required documents.
Customer can avail other credit facilities with AKF if there is cushion in the
security offered and the projected cash flows of your business.
Documentation:-
Copies of last three years income and wealth tax returns/statements of
partners/proprietor/director.
Copy of title documents and other supporting documents of property to be placed
with bank as security.
Copy of payment receipt of last property tax.
Certificate from existing banker indicating the constitution of firm, name of
proprietors/partners and date since account is being maintained.
Copy of current professional association/trade body membership.
Copy of any latest utility bill received at residential address of proprietor and
partner.
Copy of any latest utility bill of business place.
Two recent passport size photograph of the partners/proprietor.
Copy of CNIC.
Rent agreement of business place.
Proprietorship declaration or partnership deed.
Bank statement of business/borrowing account for last six month.
Financial statements of last six months (in case of limited companies F.S shall be
audited).
Basis factsheet.
Features of AMF:-
AMF 1, 2 & 3 shall be repayable in 2-12 years whereas AMF-4 shall be repaid in 2-
4 years.
Monthly installments will be hassle free through post dated cheques
The security against Alfalah Milkiat Finance should be mortgage of urban
commercial/industrial property
The property being financed shall be mortgaged in favor of the bank.
Processing fee is Rs.5000/- or 1% of loan whichever is high
Business and financial appraisal charges are Rs.5000/-
Documentation, legal and valuation charges (actual and approved charges) will
bear by customer.
Minimum equity participation of the SME shall be 30% under AMF 1 & AMF 3.
No equity participation required for AMF 2 & AMF 4.
Repayment through equal monthly installments. .
Disbursement within one month after completion of documentary requirements
by the customer
Market based mark-up (SBP discount rate + 4%) shall be charged on the
outstanding principal balance.
Full and final early repayment from own sources shall not attract any penalty,
once a year partial repayment shall be allowed without any penalty however
In case the outstanding liability is swapped by another bank 5% of the
outstanding principal balance shall be charged.
Under AMF-2 a grace period can be allowed for a period not exceeding 9 months
inclusive in the total tenor of facility.
Monthly mark-up shall be serviced during the grace period.
In case of individual/sole proprietor, life insurance of the borrower shall be
obtained with Bank as loss payee in both cases. Insurance premium shall be built
in the installment amount.
5. Security; all advances will be made against adequate security and with the
completion of modalities to enable the bank to either have possession or
undisputed title of the securities. The basis of security valuations will be
third party assessment viz. a viz. current market price and forced sale
value.
6. Tenor of the facility; bank officer should know the tenor of the facility
being granted.
Procedure:-
1. Interview borrower in the presence of credit manager.
2. Receive request stating the amount, type, tenor, and purpose of facilities as well as
securities offered.
3. Prepare visit report to access whether borrower is good credit risk.
4. The potential and growth of the business and client is verified through evaluators.
5. Get verification report from evaluators.
6. Where proposal is not viable refuse request.
7. Where proposal is viable assign task to credit officer.
8. Request CIB and other credit reports from other banks.
laid down in Policy 4.6 and where so considered necessary, at more frequent
intervals. The object of the exercise is to ensure that there is no deterioration in the
value of the security, which will call for immediate corrective measures by way of
additional security, reduction in Bank's exposure etc.
4. The Bank's charge over a security must be supported by proper documentation as
prescribed by the Bank. Where so necessary, (like pledge of goods, floating charge
over goods / receivables etc.), periodical declarations from the customer showing
the details and value of the security should be obtained. The security under the
Bank's charge but not in Bank's possession (as in case of hypothecation) should be
inspected according to the prescribed intervals laid down by the Head Office from
time to time.
5. The expiry/renewal date of the charge created on a security should be carefully
diarized so that such charge is not allowed to expire thereby preventing the Bank
from having access to the security. The matter regarding extension in the validity of
the charge or the security itself must be taken up with the customer sufficiently in
advance unless the Bank is already authorized by the customer to effect such
amendments.
6. No security charged to the Bank should be released by the Branch Manager (even
when the debt has been repaid) without checking with the Credit Division to ensure
that no other liabilities exist against the customer at other branches.
Verification Report:-
Verification report obtain from evaluators has following contents,
1. Introduction of management and business.
About company (category)
Business detail (employee number, key buyers, key suppliers)
Principle address
Management structure (information about the accounting system, operational
details of business, detail about applicants)
2. Business assets and net worth.
3. Applicant‘s net worth.
4. Operations and profitability
Expenses
Financial statements
5. Applicant‘s personal expenses and data
Personal expenses (information regarding bills, education, household and
conveyance)
Personal data (address, vehicle, ownership)
Credit card (bank, limit, number)
Detail bank relationship
Borrowing (bank, type of loan, tenure, installments)
1- BORROWER
The name / title of the borrower should be correctly stated and spelt and should be
same as appear on account opening form (every page of CLP should mention the name
and title of the borrower)
1.1 BRANCH
Name of the branch with address.
1.4 NEW/RENEWAL/REVISION
It shows whether proposal is submitted for first time or submitted to renew existing
facilities or to enhance/reduce existing facilities.
1.5 GROUP
Mention name of group ( if applicable)
1.14 DATED:
It shows date on which the CLP is prepared.
1.15 OWNERSHIP/SHAREHOLDING:
Mention name of the person, complete residential address, CNIC number, age and
percentage of shareholding in a company.
1.18 PRICING:
Mention the existing rate of Mark-up.
1.19 EXPIRY
Date the existing facility (ies) is/are expiring
1.21 MATURITY
Mention future date upto which the proposed limit is available to the borrower.
1.22 PRICING
The proposed Mark-up for each facility is mention here.
1.23 TENOR
Mention the appropriate period of adjustment of the facility.
2. CUSTOMER PROFILE:
2.1 LEGAL STATUS/ PROPRIETOR/PARTNERS/DIRECTORS/ NIC NUMBER:
It mentions information about customer‘s legal status, name with CNIC number of
directors/partners.
2.2 GROUP EXPOSURE AT BAL:
Indicate existing and the proposed aggregate funded and un-funded exposure of bank
on,
2.4 CIB:
Mention status of customer in CIB report.
4. BACKGROUND OF PROPRIETOR/PARTNERS/DIRECTORS:
This section covers the aspects relating to the owner/managers, their background and
experience, managerial capability, integrity and market reputation. Additionally,
comments are made on the following:
Owners/partners/directors and their relationship with each other.
Main/active owners and their experience and expertise.
Infrastructure facilities at office/factory/industry.
4.1 MANAGEMENT:
List strengths and weaknesses of business as well as brief comments on the financial
and managerial capabilities here. Some of these are listed for guidance:
4.2 LIABILITY DETAILS - ALLIED CONCERNS WITH BAL AND WITH OTHER
BANKS / DFIs
5. BRANCH COMMENTS/RECOMMENDATIONS:
Recommendations and comments about the growth and potential of business and on
the credit net worth and capabilities of management and directors. Recommendations
should be signed by the respective mentioned officers of the Credit Department / Branch
Management.
8. ANNEXURES:
Annexure attached to CLP are,
Ownership/shareholding of partners
Details of associated concerns
Conduct of account
Summary of key financials
Liability detail –allied concerns with BAL and other banks
Certification
Branch comments
Credit Sanction Advice
Risk index line
Applicable prudential regulations
Credit File:-
A ‗Credit‘ file is maintained for every borrowing account which provides all the
relevant information when considering credit facilities. The file contains:
1. Application form duly filled by borrower.
2. CLP with sanction advice.
3. Customer profile
4. Irregularities
Adverse CIB
Past record (past dues, cheques return)
5. Correspondence
Procedure:-
1. A customer visits Bank alfalah branch and get the required information about the
Alfalah car financing.
2. The bank officer provides him criteria and required documents.
3. Customer fulfills ―Car financing Application Form‖ and provides all required
documents.
4. After completing all the formalities the case of the customer will sent to the Bank
Hub.
5. Approval will take minimum one week.
6. Car will be rented to customer.
7. A file of every customer is kept separately for each customer.
8. Customer pay minimum down payment of 10% of cost of vehicle.
9. Installment will be made monthly.
10. In case of non- payment of installment a plenty of Rs.500 plus Rs.100/- will be
charge from customer.
11. Bank charges of Rs.4410/- will be charjge as processing and documentation
charges.
12. 5% of outstanding principle is charge as plenty in case of early payment.
Mark-up Rates:-
Financing Product 1 2year 3year 4year 5year
year
Car loan for brand new vehicle 14% 14.50% 15% 15.50% 15.50%
Car loan for brand new imported vehicle 16% 16% 16% 16% 16%
Used car 17% 17% 17% 17% 17%
Security:-
Hypothecation of vehicle in the name of Bank Alfalah Limited.
Insurance:-
Renowned and reliable Insurance companies are offering the competitive rates of
insurance. Pay year insurance premium in advance {at the time of down payment} and
the remaining in the subsequent equal monthly installment.
Cash Department
Functions performed by cash department:-
Accepting cash deposit
Payment of cash
Online cash/clearing/transfer transactions
Payment of Cash:-
For the payment of cash/encashment of cheque following procedure is to be followed,
1. When depositor present at the counter , cashier check the following points,
Pay-in-slip is completely filled.
Cheque is not stale, post dated or has incomplete dated.
Cheque is not mutilated.
The cheque belongs to Alfalah and is not to be lodged in clearing.
Amount should be written both in words and figures and should be the same.
If any changes are to be made there must be signatures of the account holder
confirming the changes made.
For the payment of cheque on counter the cheque must be a bearer cheque.
2. Verify the signatures of the account holder. Signatures on the cheque are matched
with the ―signature specimen card‖. If signatures are not matched then payment is
not made and cheque is returned.
3. After verification of signatures the operator at the computer terminal checks the
balance in the account and makes sure that there is adequate balance in the
account for the encashment of presented cheque.
4. If enough funds are not available the cheque is return to the customer along with
memorandum, and cheque return charges of Rs.200 will be debited from an
account.
Every year Bank Alfalah opens its doors for about 30 fresh post-graduates to join the
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 Bank‘s state-of-the-art
training facility at 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.
BAL prefers to hire candidates having MBA degree for credits. For relationship officers,
education qualification is not very important. Their family background and
communication skills are more important. Bank hires fresh MBAs from prestigious
Universities in batches of 20-25 officers. 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 to officers of range 5.
Bank‘s policy is to give cash rewards and salary increments for increasing the employees‘
satisfaction.
Human Resource team takes special interest in recruitment and training. Its training
and business philosophy is geared to provide professional, personalized and efficient
services to its clients. Alfalah provides both “In-house training” and “Outside the house
training” to its employees. To impart technical skills to its staff ―Training and
Development Center‖ offers programs in several skill areas, 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.
All new employees of the Bank initiates preparation of their Job Description and get it
finalized with the help of their immediate supervisors within 30 days of joining at their
place of posting. The job Description duly signed and agreed by the new joiner, his/her
immediate supervisor and manager should be sent to HRD for record. Concerned Branch
Managers will be held responsible for non compliance of this requirement. The purpose
of the Job Description is to clearly define the job responsibilities of each employee and to
ensure that employees are made aware of and understand what is expected from them.
For Departmental Heads or Managers the maximum period in one assignment should
not exceed five years.
For training and development of employees of bank an Annual Training Plan shall be
circulated by HRD in December for both Training and Development Centers, keeping in
view the requirements of various departments of the Bank identified through the annual
appraisal form and feedback from Audit Division. The plan would list all workshops,
courses & seminars to be offered during the next year.
It is obligatory for each employee of the Bank to attend at least two days of training in a
calendar year. Branches, Area Offices and Head Office Division/Departments are to send
their nominations for training courses in advance (as prescribed by the concerned
Training & Development Centre). Employees are encouraged to take initiative and get
them nominated through their supervising officers for training courses relevant to their
needs.
TDC organize full day induction sessions for new joiners, both at Lahore and Karachi.
These one day programs are aimed at giving a broad overview of Bank Alfalah‘s
corporate culture, values, norms, products and services to new employees. New joiners
are also briefed on employees‘ benefits as well as service rules. Heads of Branches and
Units must ensure that all newly inducted staff members attend these sessions,
preferably within the first three months of their joining.
As per the requirements, the Bank recruits batches of fresh graduates under various
schemes through a competitive process and offers them comprehensive training. Batch
Trainees may be asked to go through on-job training by way of structured rotation
programs. In order to enhance in-house training efforts, external training providers will
be utilized on a periodic basis, by nominating Bank Alfalah‘s employees to external
Staff monthly salary is to be disbursed before the end of each month usually on 26th/27th
of the month. Salary & allowances of each employee is a confidential matter. Those
officials, who due to reasons of procedural expediency, are in the knowledge of salary
particulars of their colleagues, must treat such information as confidential. Their failure
to do so may result in disciplinary proceedings against them. In order to disburse salary
on time, branches are advised to ensure that all salary amendments must reach HRD
latest by 20th of every month. Review of salary and allowances, which is based on
previous year‘s performance, is carried out once a year during the first quarter of every
year.
Employees in need of funds for an emergency may be allowed advance against salary
for the current month to be adjusted in full on disbursement of salary. Since this facility is
only meant for emergencies, no staff member may be allowed to make a habit for
applying for such advance. Approval shall be obtained from the Departmental
Head/Branch Manager and forwarded to HRD. As a matter of policy, a staff member
may avail this facility only twice during a calendar year under the following conditions:-
If the staff member is proceeding on leave and next payday falls during vacation
period.
In case of emergency
Salary deduction on account of leave without pay will apply to the entire salary
package of the concerned employee, including allowances and perks. Moreover,
weekends and public holidays falling during this period will also be considered as part
of leave without pay.
The Bank‘s performance appraisal (PA) system is primarily based on goal setting in the
beginning of a year, monitoring by supervising officers on bi-annual basis and final
evaluation, using standardized performance appraisal forms at the end of the year. Some
weightage is also given to evaluation of enabling personal skills and personality traits, as
listed in the Appraisal Form. Appraisal exercise is done only for those employees who
have completed six month‟s service with the bank on 31st December and whose
appraisal forms have been received from their respective officers within the specified
time limit. To reward high performance during the period under review, performance
bonuses may be awarded to deserving officers based on their performance rating.
All employees of the Bank, who are on Bank‘s payroll (whether in regular or
contractual employment), upto the age of 65 years, will be covered under the Group Life
Insurance, also medical services are provided to employees. Moreover BAL entitled to
provide the benefits of provident fund and gratuity fund. All permanent confirmed
employees are eligible for membership of Bank Alfalah Ltd. Employee Provident Fund
Scheme. An employee will contribute an amount equivalent to one month‘s basic salary
in a year (8.33% of monthly basic salary) towards the Provident Fund Scheme and an
equivalent amount will be contributed by the Bank. PF deduction will continue to be
made from monthly salary even if an employee has resigned and is working during
notice period. Membership of PF Scheme will be automatically cancelled on the last
working day of the notice period. For a gratuity payment if period of service is less than
05 years, no gratuity will be payable if period of service is 05 years and above, gratuity
will be payable equivalent to one month‘s salary (last drawn) for each completed year of
service.
BAL Marketing:-
BAL provides different products and services to its customers as discussed earlier
which differentiate BAL from other banks , the 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 mark-up, bank charged and 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).
Bank Alfalah‘s has been expanding its branch network to meet clients‘ needs. Bank is
well positioned and geographically poised, to cater for increased business demands, from
its existing potential clientele. BAL has 195 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, BAL 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 BAL is situated in Karachi.
Bank Alfalah also gives a significant consideration not only to its product publicity but
also to the creation of public relations. Bank has proves its public goodwill by
contributing money and time to public service and activities. Bank as performing the
following activities in offer to create a good public image.
Sponsoring different events like cricket matches, basant and golf events in order
to increase the public trust.
Giving heavy donations to human welfare organizations that support the needy
people
Make heavy investment on overhead bridges.
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 Alfalah‘s 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 bank‘s promotion.
Construction of Shaahdin Manzil as main branch Lahore is going to be the revolutionary
step for BAL. 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.
Along with the advertisement, the bank is providing personal services to its clients with
maximum security as other banks provide.
Financial Analysis
BALANCE SHEET
(Rupees in ‘000)
LIABILITIES
3,091,135 3,733,124 2,233,671 1,208,671
Bills payable
Borrowings from
financial 8,394,130 5,844,389 12,723,830 13,127,754
institutions
Deposits and other
239,509,391 222,345,067 129,714,891 76,698,322
accounts
Sub-ordinated
3,222,106 3,223,355 1,899,480 649,740
loans
Liabilities against
assets subject to - - - -
finance lease
7,305,496 5,219,666 2,725,344 2,686,754
Other liabilities
INCOME STATEMENT
(Rupees in ‘000)
2006 2005 2004 2003
Mark-up/return/interest earned 21,191,470 12,246,811 5,620,203 4,033,380
Mark-up/return/interest
expensed 15,232,886 7,204,992 2,434,459 2,028,577
Net mark-up/interest income 5,958,584 5,041,819 3,185,744 2,004,803
Provision against non-performing
loans and advances - net (697,690) (402,298) (370,208) (87,091)
Provision for diminution in the
value of investments - 23,163 (2,165) -
Bad debts written off directly (1,537) (512) (351) (418)
(699,227) (379,647) (372,724) (87,509)
Net mark-up/interest income
after provisions 5,259,357 4,662,172 2,813,020 1,917,294
NON-MARK-UP/INTEREST
INCOME
Fee, commission and brokerage
income 1,804,998 1,158,747 675,868 399,383
Dividend income 37,393 52,014 52,539 112,017
Income from dealing in foreign
currencies 386,997 290,091 218,820 106,848
Other income 995,251 744,518 572,822 2,773,503
Total non-mark-up/interest
income 3,224,639 2,245,370 1,520,049 3,391,751
8,483,996 6,907,542 4,333,069 5,309,045
NON-MARK-UP/INTEREST
EXPENSES
Administrative expenses 5,874,745 4,313,023 2,677,635 1,799,490
Other provisions/write offs - 10,125 - 2,000
Other charges 43,306 21,104 1,700 1,875
Total non-mark-up/interest
expenses 5,918,051 4,344,252 2,679,335 1,803,365
2,565,945 2,563,290 1,653,734 3,505,680
Extraordinary/unusual items - - - -
HORIZONTAL ANALYSIS
Balance Sheet (%change)
ASSETS 2006 2005 2004
Cash and balances with
treasury banks 12.3 25.82 133.97
Balances with other banks 31.07 205.07 407.88
Lending to financial
institutions (53.95) - (100)
Investments (1.59) 61.72 22.83
Advances 26.11 33.66 80.70
Other assets
46.25 19.35 107.77
Operating fixed assets 58.65 54.66 53.33
Deferred tax asset - - -
TOTAL ASSETS 1.02 60.37 56.47
LIABILITIES & EQUITY
Bills payable (17.19) 67.12 84.80
Borrowings from financial
institutions (3.08) (54.06) (3.08)
Deposits and other accounts 69.12 71.41 69.12
Subordinated loans 192.34 69.70 192.34
Liabilities against assets
subject to finance lease - - -
Other liabilities 39.96 91.53 24.63
Deferred tax liabilities 296.91 75.49 14.61
TOTAL LIABILITIES 9.38 61.02 58.79
REPRESENTED BY
Share capital 25 20 66.67
Reserves 27.63 83.51 48.52
Unappropriated profit (10.67) 119.32 49.61
Surplus on revaluation of
assets (11.19) (18.64) 129.92
Total EQUITY 64.01 41.86 10.58
Assets:
The assets of the BAL have been growing very fast since its inception. This growth is
the result of the massive expansion policy the management has been following ever since
the inception of BAL. One of the important ingredients of any commercial bank‘s growth
is increase in most of current assets that is a good sign as it increases their liquidity. Let
us first have a look at the liquid assets. The increase in percentage is always a good sign,
but it is especially healthy sign when we take into consideration that it is increasing at a
very commendable rate, but it is observed that in 2006 lending to financial institutions is
decreased by 54% and also there is an decrease of 1.59 which shows remarkable increase
in 2005 of 67%, advances of bank shows increase but in decreasing rate. Therefore all the
assets of the bank shows increasing trend but in decreasing rate except fixed assets and
other assets, increase in fix assets might be because of expansion of bank‘s branch
network.
Liabilities:
As regards the liability section of the balance sheet chief liability of commercial bank is
its deposits it generates from its customer The ratio of increase in deposits in 2006 is
7.72% which is low as compare to increase in 2005 which is 69.12%, it is concluded that
the deposits are increasing but at decreasing rate. The other encouraging ratio we
observe in liability section is borrowing from financial institution which shows
decreasing trend in 2004 and 2005 but it shows an increase of 43& in 2006 which proves
financial strength and its credit worthiness in the money market. On the other hand the
subordinate loans that represent the TFC‘s are decreasing it‘s a good sign as bank is
paying off its long term debts.
Equity:
Bank‘s Share Capital is increasing at increasing rate as bank announce stock dividend
of 25% and in 2006 33.33 % as well as unappropriate profits are also increasing at a much
higher rate especially in 2005. So overall bank‘s equity is increasing at a satisfactory rate.
Income:
The income of the BAL shows the increasing trend in 2005& 2006 but in 2004 the overall
income decrease by 3.84% as compare to 2003 which is mainly because of decrease under
dividend and other income head. Overall the income of the bank increases year by year
but we observe remarkable increase in total income in 2005i.e. raise by 103.29%, mainly
because of interest earned from loans to customer and from financial institutions.
Expense:
The expenses of the bank are increase as operations of the bank increase, like income in
2005 expense head shows higher trend as compare to 2006 and 2004 because penalties
impose by SBP raise from 1700 M to 21104 M.
Profit:
As increase in income is more as compare to increase in expense, so profit after tax
proves a high-quality financial performance of BAL.
Vertical ANALYSIS
Balance Sheet (%)
ASSETS 2006 2005 2004
Cash and balances with
treasury banks 10.11 9.99 12.7
Balances with other banks 4.62 3.91 2.06
Lending to financial
institutions 4.52 10.89 -
Investments 20.49 23.12 22.9
Advances 54.40 47.87 57.4
Other assets
2.08 1.55 2.04
Operating fixed assets 2.76 2.67 3.81
Deferred tax asset - - -
TOTAL ASSETS 100 100 100
LIABILITIES & EQUITY
Bills payable 1.12 1.50 1.44
Borrowings from financial
institutions 3.04 2.35 8.22
Deposits and other accounts 86.88 89.54 83.8
Subordinated loans 1.17 1.29 1.22
Liabilities against assets
subject to finance lease - - -
Other liabilities 2.65 2.10 1.76
Deferred tax liabilities 0.70 0.19 0.18
REPRESENTED BY
Share capital 1.81 1.21 1.61
Reserves 0.99 0.75 0.65
Unappropriated profit 1.02 0.76 0.56
Surplus on revaluation of
assets 0.61 0.29 0.58
Total LIABILITIES
&EQUITY 100 100 100
After analyzing the Balance Sheet, we can see that balances with other banks are
increased in percentage from 2.06 to 3.91 and then further to 4.62 that is a good sign for
management. There is a decrease in percentage of advances that is not a good sign.
Advances are decreased from 57.44% to 47.87%. But these have again increased to 54% in
the year 2006 which is a good sign. Here it is clearly examined that the major part os total
asset is advances.
On liability side, borrowings from financial institutions are also decreased that is very
positive sign as far as banks financial health is concerned. Borrowings are decreased by
8.22% to 2.35% but it has started increasing in year 2006 by 3.04%. More over there is an
increase in deposits from year 2004 to 2005 which shows the faith and trust of people on
BAL. Deposits are increased from 83.78% to 89.54% but decreased to 86% in the year 2006
Income Statement
2006 2005 2004
Total Income 24416109 14515344 7140252
Total Expenses 6048263 12813250 6048263
Profit 1091989 1702094 1762691
(In %)
2006 2005 2004
INCOME
Mark-up/return/interest
earned 86.79 84.37 78.71
NON MARK-UP
/INTEREST INCOME
Fee, Commission and
brokerage income 7.39 7.98 9.47
Dividend income 0.15 0.36 0.74
Income from dealing in
Foreign currency 1.59 2 3.06
Gain on sale of securities 0.74 1.65 -
Unrealized (loss) /gain on
revaluation of Investments (0.11) 0.16 -
Other income 3.45 3.48 8.02
Total Non mark-up/ Interest
income 13.21 15.63 21.29
TOTAL INCOME 100 100 100
EXPENSES
Mark-up/return/interest
earned expensed 67.24 56.23 40.25
Provision against non-
performing loans and
advances-net 3.08 3.14 6.12
Provision for the diminution
in the value of investments - - 0.04
Bad debts written off directly .0067 0.0039 0.0058
NON MARK-UP/
INTEREST EXPENSES
Administrative expenses 25.93 33.66 44.27
Other Provisions/Write Offs - 0.08 -
Other charges 0.191 0.16 0.028
RATIO ANALYSIS
12
10 9.68
8
Percentage 6 6.02
4.52
4
0
2004 2005 2006
Interpretation:
This ratio relates the earning of the bank with the assets. it indicates the rate of return
earned by the bank on the assets. This ratio is gradually increasing over the years
indicating a healthy sign because the operation/business of the bank is increasing, and
also shows good image of the bank that people and financial institutions are agree to take
advance from bank. Average rate of lending is increasing at a increasing rate because the
increment in return is higher than the increment in assets.
7
6 6.07
5
4
Percentage
3 3.11
2
1.69
1
0
2004 2005 2006
Interpretation:
This ratio determines the cost of funds borrowed by the bank. Though this ratio is
increasing over the year at an increasing rate but yet it is better because when we
compare it with the return earned by the bank , the bank‘s margin is increasing at
increasing rate.
5 4.98
4
3.64 3.75
Percentage 3
0
2004 2005 2006
Interpretation:
Spread is basically the margin of the bank between its lending and borrowing, as
compare to 2004 the spread is decrease by 1.34 points but increase in 2006 by 0.11 points
which is good because it shows that the cost of deposits are less than the cost of
advances. Higher the spread, favourable for the bank because of low cost of deposits.
2.5 2.45
2 2.06
1.94
Percentage 1.5
0.5
0
2004 2005 2006
Interpretation:
It measures the cost which the bank has to incur to generate the deposits. The above
ratio is good over the year because it should not 3% of the deposits, here increase in ratio
is not termed as negative sign for the bank because bank is expanding its branch
network, and in 2006 the branches of BAL increase from 128 to 166 and also no. of
employees‘ increases.
3.5
3.25
3
2.5
2
Percentage
1.5 1.51
1 0.88
0.5
0
2004 2005 2006
Interpretation:
The infection ratio determines the percentage of classified advances of the bank. This
ratio is below the ideal ratio for the banking industry because ideal ratio is 6%.especially
on 2005 classified advances are only 0.88 % which increase to 1,51% but still the ratio is
satisfactory. It might be due to the prudent lending policy followed by bank.
16
15.19
14
12 11.63
11.15
10
Percentage 8
6
4
2
0
2004 2005 2006
Interpretation:
The liquidity ratio is also known as cash reserve ratio, every bank has to maintain a
certain percentage of its time and demand liability with a central bank, the liquidity
ratios of BAL is good over the years it shows the decreasing trend in 2005 but again in
2006 increase from 11.15 to 11.63 which is satisfactory .
25
24.38
24
23.34
23
22
Percentage
21
20.62
20
19
18
2004 2005 2006
Interpretation:
The statutory liquidity ratio shows the liquidity of the bank, the ratios shows that the
investment of the bank in government approved securities is decrease over than year as
compare to the increase in deposits, downward trend is also because of decrease in the
investment in government bonds.
18
17.5 17.64
17 16.94
16.5
Percentage 16
15.5 15.52
15
14.5
14
2004 2005 2006
Interpretation:
This ratio indicates the liquidity of the bank. It indicates a normal trend, bank has
enough money invested in the most liquid assets, so it a healthy sign.
80
70 68.56
60 62.63
53.45
50
Percentage 40
30
20
10
0
2004 2005 2006
Interpretation:
This ratio indicates the amount which the banks advance from its deposits. It shows an
increasing trend except 2005. The bank has advance a good amount of its deposits so
earning a higher return. This ratio should not be more than 80% of total deposits, the
advance to deposit ratio of BAL is satisfactory.
7
6.57
6
5.39
5
4
Percentage 3.69
3
2
1
0
2004 2005 2006
Interpretation:
This ratio indicates whether the bank is earning from its primary function and has
permanent source of revenue or from its secondary function, the above calculation shows
that the major source of bank‘s earning is from the investments and advances which is
positive sign for the image and position of bank.
40
36.05 37.09
35
30
25
Percentage 20
16.87
15
10
5
0
2004 2005 2006
Interpretation:
This ratio shows the percentage of time deposits in the total deposits .The time deposit
are less as compared to demand deposit. The greater the time deposit more will be the
cost of funds, as the percentage of time deposit is less than the demand deposit so the
bank bears low cost of funds.
10
9.5 9.48
9
Percentage 8.66
8.5
8.16
8
7.5
2004 2005 2006
Interpretation:
It is similar to debt to equity ratio. For the interest of deposits SBP requires every bank
to maintain a minimum capital requirement which should not be less than 8%.This ratio
is also useful from auditor‘s point of view. The ratio is quite satisfactory in case of BAL.
35
30 30.65
26.89
25
20 20.37
Percentage
15
10
5
0
2004 2005 2006
Interpretation:
ROE measures the rate of return on the shareholders' equity. It measures a bank‘s
efficiency at generating profits from every rupee of net assets. The ROE of the bank
increases in 2005 but decrease in 2006 because increase in share capital is more as
compare to increase in profits.
1
0.9 0.87
0.86
0.8
0.7 0.67
0.6
Percentage 0.5
0.4
0.3
0.2
0.1
0
2004 2005 2006
Interpretation:
ROA of BAL is deceasing over the year because the profit earn is not increase in the
same proportion as increase in total assets of banking company.
6
5.6
5
4.3
4
3.52
EPS 3
0
2004 2005 2006
Interpretation:
Earning per share shows profit to bank from paid up capital. Earning per share is
decreasing in 2006, which is not a healthy sign.
25
22.46
21.15
20
17.47
15
Book value
10
0
2004 2005 2006
Weaknesses:-
Majority of the workforce consists of young professional, they lack in their
experience. And sometimes lack of experience becomes a hurdle while serving to
the customers. It is the point where they feel difficulty while competing the other
bank, which have a very experienced workforce.
It was observed that at present the motivation level of the employees is not very
much
Due to the new regulations of the state bank to deduct 0.02 % tax on every check
amounting to more than Rs. 25000, the customers started issuing too many checks
to avoid this tax. As a result the overall work load on employees has been
significantly increased.
The increased workload has resulted in the reduced efficiency of the employees.
Because now the time required for completing the tasks for a single customer has
been increased. As a result the environment of the branch has become very messy.
Bank‘s marketing department is not very strong .Advertising done by the bank is
less than the requirement.
Lack of communication between employees
Opportunities:-
Extension of local branch network.
Establishing foreign branch network
Unexplored market of multinational corporations
As the increase in overall business activity in the country, the investors are
launching various types of Mega Projects especially in housing and textile the
bank has a great opportunity to finance these projects at very profitable term.
The increase in per capita income and overall economy has resulted into a great
demand for the consumer financing especially for home finance and car financing
and it is said that this trend will increase more in future. The bank can earn a lot
by focusing on its consumer financing sections.
After the privatization of United Bank Limited, the management of the BAL has
purchased the majority shares of the UBL, and it is planning to merge these two
banks. As UBL is the second largest bank in the country, this merger can make the
bank the largest bank of the country.
There is a very good growth trend in the Islamic banking in the country and in the
world as well. BAL has the advantage of having Islamic Banking network and the
growth in this particular field can be very fruitful for the bank, bank has an
opportunity to introduce new products and services in Islamic banking.
As the Pakistani‘s are known for their extravagant practices, and to fulfill their
funds requirements they don‘t hesitate from getting loans from banks. Thus there
is a very good scope for the bank to run successful business in such circumstances.
Threats:-
Private sector banks
Network expansion by foreign banks
Although the economy is growing at a good pace, but there are many factors
which results in the uncertain position of the economy. Such as political
uncertainty, increase in poverty etc. etc. As a result there are permanent threats of
future risks and losses for the bank.
The inflation rate of the country has gone very high. This can result into an
unfavorable situation for the bank. And especially when the ownership of the
bank is UAE based, the net spread for them can substantially decrease.
There is a trend of mergers among the banks to become prominent in the market
and to get the maximum market share. This trend can result into the union of
some leading banks which can give tough time to the bank and it will become
difficult for the bank to compete with them.
There is a trend of launching mega projects in the country. And every one is
involved in this trend without taking any measure for the successfulness of these
projects. This can result into the failure of this project which can make it difficult
for the banks to recover their funds from these defaulters.
Recommendations:-
The employees should be given more financial as well as non financial rewards so
that they remain motivated.
Bank Alfalah Ltd should continuous to expand its business, by increasing its
deposit portfolio through aggressive market penetration strategies.
Human resources constitute the most valuable asset for an organization. To
improve the professional skills and quality, BAL has started six-months
comprehensive training program, BAL should conduct some training programs
for existing employees to improve their proficiency.
Bank Alfalah Limited needs to use more marketing channels to make the public
aware of its products and services. In the presence of intense competition Bank
Alfalah Limited has to realize the importance of marketing.
The number of women hired by the bank is very less. Alfalah should employ more
women. Moreover it should also recruit women for working in ―Credits‖.
Management should distribute work equally among different employees. Some of
the employees are overburdened while some sections are overstaffed.
There are disproportionate numbers of seasoned bankers in top management who
have the responsibility of making strategic decisions. This think tank should also
include a reasonable proportion of young bankers whose mindsets teem with new
creative ideas, which might prove to be invaluable for Bank Alfalah Limited.
The top management should immediately start thinking in terms of rotating the
employees in various departments, as this transforms work force into human
capital, if a particular individual keeps on employing his\her efforts in one sphere
of banking it would not only create a sense of monotony, but also not help
improving the skills of Bank Alfalah Limited employees.
Bank Alfalah Limited should embark upon an even more aggressive management
strategy of expansion of branch network not only in the local market (Pakistan),
but also in foreign markets because that is a huge opportunity for Bank Alfalah
Limited.
Overall Conclusion
Let’s Look Ahead Towards a
Brighter Future Together”
A generation ago the world of banking seemed much simpler and less burdened with
risk than it is today. Regulations are severely limiting the range of bank management
decision making, but it is also tending to shelter the industry from the risk of the
financial market place.
It has been said that banking in an earlier era was concerned mainly with the prudent
management of assets and liabilities and the achievement of satisfactory returns for bank
stockholders. Banking in the modern era, on the other hand, is immensely more
concerned with risk-how to manage risk and still earn enough returns to retain owner‘s
capital and remain viable. In Pakistan, the banking sector continued to support the
financing needs of the country.
In short Bank Alfalah (BAL) since its inception under the leadership of Sheikh
Nahayan Mabarak Al-Nahayan has made significant in building of strengthening both
the corporate and retail banking sectors in Pakistan. The growing client base is a sign of
its recognition in the market place. It made a significant progress despite the keen and
challenging business environment. It made notable progress in business volume,
efficiency and profitability following its increased involvement in trade finance,
commercial lending, and foreign exchange and money market operations. Moreover the
financial statements of the bank show strong financial position and trust of the people on
bank, Bank Alfalah Limited truly proves to be, the caring bank.
References:-
www.bankalfalah.com
www.sbp.org.pk/fsr