1. Executive Summary: 2.

Acknowledgement: ACKNOWLEDGEMENT

I am highly grateful to almighty Allah who gave me the power to complete this report. I am also highly thankful to my honora le !fficers of "ank Alfalah for their guidance.

I am inde ted to the employees of "ank Alfalah #td$ Shahdin %an&il$ #A'!(E. Special thanks to )%(.'assi *ilani+ Accounts %anager of "and Alfalah #td$ Shahdin %an&il "ranch and my thanks are also to the young$ dynamic$ congenial$
and ,ualified staff of "ank Alfalah who never let me alone in different situations related to my online training program. -ithout their hum le help$ it was not easy.

.. /opy of /ollege 0ermission #etter for Internship:

1. Internship /ertificate issued y !rgani&ation: Shahdin Manzil

"ank Alfalah is committed to the pro2ection of 0akistan3s rich cultural heritage. -e strongly elieve that the all must fulfill our social responsi ilities in addition to achievement of the commercial o 2ectives. A few examples set y "ank Alfalah are Alfalah S,uare$ Alfalah %ini 4olf $ the resurrection of Shahdin %an&il$ right across the main %all road 5Shahrah6e6 7uaid6e6A&am8$ #ahore. Shahdin %an&il sym oli&es more than an ideal colonial architecture. It is known y the name of and stands testimony to the memory of its owner$ the first %uslim 2udge of the #ahore 'igh /ourt 6 *ustice Shaahdin 'umayun and su stantiates #ahore3s claim as a centre of academic and cultural excellence. It has always remained as a landmark in the historic city of #ahore with its typical architectural eauty. !ver the years$ the elements of nature and neglect had rendered the uilding uninha ita le. 9he management of "ank Alfalah has chose to resurrect Shahdin %an&il to its original splendor and grandeur. 9he restoration work is resulted in a fusion of the old with the new$ together with some interesting new design elements. 9his spirit of merger that is eing carried into the new design with modern uilding techni,ues and materials assures us that the old lends seamlessly with the new$ and yet hold its own place.

"ank Alfalah has also allotted .:1th of a floor of this uilding to house an I.9. li rary with round the clock research facilities for I.9. developers and researchers. 9he ank has not changed its name and the renovated$ refur ished and redecorated uilding will continue with its original name i.e. "SHAHDIN MANZIL". Shahdin %an&il has developed into a state6of6the6art$ technologically advanced and intelligent office premises$ which incorporates all the concepts of a modern office while maintaining the rich facade of the uilding. It has een made structurally sound with most modern and high6tech office facilities within its walls ut would retain its original and historic look from its exterior. 9he new look of Shahdin %an&il stands out as a model of most modern facilities lended with history and grandeur of the past. Shahdin %an&il will always continue to remain a landmark of #ahore$ and will e a proof of "ank Alfalah3s mission to contri ute towards the welfare of the community and heritage at large.

;. /ontents with 0age <um ers

OBJECTIVITY Internship is asically practical implementation of the re,uired fields a out which we have read out. 9his (eport is the asic college re,uirement so the students tell the teachers that what they learned through this system and how they will implement in their practical lives.

The in e!n"hi# a Ban$ Al%alah Li&i ed Shah Din B!an'h (ill !e&ain a )e!* +,,d e-#e!ien'e. .. /0!#,"e ,% he " 0d* 9he main purpose of carrying out this is to fulfill this practical re,uirement of %.com degree as well to get practical experience of what study and moreover its purpose is to: /ompare the theatrical knowledge with the actual practical work. Study of actual working of a ank=s work and to analy&e its strength and weakness. 4et an insight into professional life efore getting any 2o as a professional. 1. S',#e ,% he " 0d* 9he scope of the study revolves around the product and services introduced and offered y "ank Alfalah Islamic and function of different departments. 2. Li&i a i,n ,% " 0d* As the internee it is not possi le to get access to all departments of the ank so the study is restricted to the department where I get appointment for training as an internee.

3. Me h,d,l,+* ,% he " 0d* >or data collection during internship use secondary data. I. /!i&a!* da a 0ersonal o servation oth primary and

ii. Se',nda!* da a >inancial statement of "ank Alfalah #imited -e site of "ank Alfalah #imited %anuals (elated ooks

4. Hi" ,!* ,% he O!+aniza i,n

"ank of /redit ? /ommerce International 5"//I8 was a 0akistan ased ank$ esta lished y %r. Agha 'assan A di from @"#$ in association with @.A.E and Europe. "//I has its ranches in A1 different countries of the world. It had its . ranches in 0akistan. In 1BB1$ the "//I was anned$ when is accused reason y European countries that the ank was involved in some illegal operations with 4ulf countries. 9he ma2or ehind European accusation was that "//I was of ank was closed due to ranches were Islamic mode. 9herefore$ the taken over

international pressure. 9hen$ its . 0akistani named as 'a i

y the 4overnment of 0akistan$ which were /redit and Exchange "ank 5'/E"8 and

these were working as su sidiary of 'a i "ank #imited.

>ollowing the privati&ation in *uly 1BBA$ 'a i credit and Exchange "and assumed the new identity of "ank Alfalah on >e ruary 2;$ 1BBC. "ank Alfalah #imited was incorporated on *une 21st$ 1BBA as a pu lic limited company under the /ompanies !rdinance 1BC1. Its anking operations commenced from <ovem er 1st$ 1BBA. 9he ank is engaged in commercial anking and related services as defined in the "anking companies ordinance$ 1BD2. 9he "ank is currently operating through 1B; ranches in A1 cities$ with the registered office at ".A."uilding$ I.I./hundrigar$ Earachi. Since its inception$ as the new identity of './.E." after the privati&ation in 1BBA$ the management of the ank has implemented strategies and policies to carve a distinct position for the ank in the market place. Strengthened with the anking of the A u driven y the strategic goals set out management$ the "ank has invested technology to have an extensive range services. Fha i 4roup and y its oard of in revolutionary of products and

This facilitates our commitment to a culture of innovation and seeks out synergies with clients and service providers to ensure uninterrupted services to its customers. We perceive the requirements of our customers and match them with quality products and service solutions. During the past five years, we have emerged as one of the foremost financial institution in the region endeavoring to meet the needs of tomorrow today.

Vi"i,n and Mi""i,n S a e&en

Gision 9o e the premier organi&ation operating locally ? internationality that provides the complete range of financial services to all segments under one roof.

Mi""i,n 9o develop ? deliver the most innovative products$ manage customer experience$ deliver ,uality services that contri utes to rand strength$ esta lishes a competitive advantage and enhances profita ility$ thus providing value to the stakeholders of the ank.

5. Mana+e&en ,% he O!+aniza i,n B,a!d ,% Di!e' ,!"

H.E. Sheikh Hamdan Bin Mubarak Al Nahayan

Chairman

Mr. Mohammad Saleem Akhtar

Chief Executive Officer

Mr. Abdulla Khalil Al Mutawa Mr.Khalid Mana Saeed Al Otaiba Mr. Abdulla Nasser Hawalileel Al-Mansoori Mr. Ikram Ul-Ma eed Seh!al Mr. Nadeem I"bal Sheikh

Mana+e&en Mr. Mohammad Saleem Akhtar

Chief Executive Officer

Mr. Sira uddin A#i#

Chief Operating Officer

Mr. $ar%e# A. Shahid Executive In'ha!+e

Strategic Planning & lo!al "arketing

Mr. Bakhtiar Khawa a

Executive Incharge #uman $esources Division

Mr. Mohammad &ousu' E-e'0 i)e In'ha!+e

%redit Division

Mr. Ather Shehab E-e'0 i)e In'ha!+e

&sta!lishment & 'dministratration

Mr. Shahid M. Murta#a E-e'0 i)e In'ha!+e "usiness Fevelopment Fivision

S.'."( %ar )inance( *easing

Mr. Mohammad I"bal Sai'ee E-e'0 i)e In'ha!+e

'udit & +nspection Division

Mr. Adil (ashid E-e'0 i)e In'ha!+e

%ards Division

Mr. Nadeem ul Ha" E-e'0 i)e In'ha!+e

Systems & ,perations

Mr. Shakeel Sadi" E-e'0 i)e In'ha!+e Mr. Asad )amil E-e'0 i)e In'ha!+e
+T Division

%orporate -anking & #ome )inance

Mr. M *ari" Mir E-e'0 i)e In'ha!+e

,verseas ,perations

Mr.Mahmood Ashra' E-e'0 i)e In'ha!+e

%redit "onitoring Division

Mr. Hamid Ashra'

Executive Incharge *egal 'ffairs Division.

Mr. +ahid Ali H. )amall E-e'0 i)e In'ha!+e

)inance Division

Mr. I a# ,aroo" E-e'0 i)e In'ha!+e

+slamic -anking Division

6. 7ield ,% A' i)i ie"

9he %ain heads of Activities areH

9hese heads are now discussed one y one.

Feposit #ending #ockers (emittance 'ilal : Fe it

Feposit

Accounts (ates

Feposit Accounts

C899ENT ACCO8NT:

<on

interest

earing

checking

account.

%inimum account opening re,uirement of (s. 1I$III only. >ree de it card can e used to withdraw cash and make purchases at thousands of outlets across 0akistan which provides access to funds 21 hours a day. <o restriction on num er of withdrawals and on num er of deposits

/LS SAVINGS ACCO8NT:

0rofit

#oss

Sharing

Saving

"ank

Account.

%inimum account opening re,uirement of (s. ;$III only. <o restriction on num er of withdrawals and num er of deposits. 0rofit on saving accounts is credited to the customer account on half6yearly asis. >ree de it card can e used to withdraw cash and make purchases at thousands of outlets across 0akistan which provides access to funds 21 hours a day

9OYAL /9O7IT:

%inimum Feposit re,uirement of (s. ;I$III only. 'igher returns on higher alances.

<o restriction on num er of withdrawals and on num er of deposits. >ree de it card can e used to withdraw cash and make purchases at thousands of outlets across 0akistan which provides access to funds 21 hours a day. 0rofit is credited to the customer account on monthly asis.

BASIC BANKING ACCO8NT:

Initial deposit for account opening is (s. 1$III with no minimum alance re,uirement. <on interest earing checking account.

%aximum 2 deposits ? 2 withdrawals through che,ue is allowed. >ree de it card can e used to withdraw cash and make purchases at thousands of outlets across 0akistan which provides access to funds 21 hours a day. <o restriction on A9% withdrawal.

Al%alah Ki%a*a ACCO8NT:

Any 0akistani resident over the age of 1C can open this

account. 9his account is for individual:2oint customers only. !ther customers like companies$ corporate etc are not eligi le for opening of this account. %inimum alance re,uirement for opening this account is (s. 1I$III:6 with a maximum of (s.1$ III$III:6 9hree de it transactions are allowed in a month either through che,ues or Fe it /ard:0!S machine. 9here is no restriction on deposit transactions. 9he ank will issue the first che,ue Fe it card free of cost. ook of 2; leaves and a

0rofit will e calculated on monthly minimum alance asis and will e credited in the account on ,uarterly asis. <o profit shall e paya le for a particular month$ if the minimum alance for any particular day of said month falls elow the amount of (s. 1I$III:6. Jes it is. 5Su 2ect to fulfillment of all related re,uirements8 All service charges are as per the prevailing KSchedule of /harges= !nly one account per customer will ranches of "ank Alfalah. e allowed across all

Account statement will e generated on half yearly asis

Al%alah Mahana A&dan

Alfalah %ahana Amdan is a . year 9F( with expected rate of profit of 1IL p.a. 9his term deposit will provide an opportunity to individual:2oint customers to en2oy higher returns that will automatically e credited to his:her current:0#S:(0:""A account on 1st working day of each month. 9his facility is not availa le for customers. S,&e "alien %ea 0!e" 1. %inimum placement limit is maximum placement limit (s. is 1II$III:6 and (s.1;$III$III:6 usiness and corporate

2. Expected (ate of profit is 1IL 0er annum 5as per 0#S governing rules8 .. 0rofit will e automatically credited on the 1st working day of each month into customers /urrent:0#S:(0:""A account

1. >ree 0ersonal Accident Insurance coverage up to the deposit amount or (s. 1$;II$III:6 whichever is lower. ;. /ustomer can avail financing facility up to BIL of the deposit5as per anks policy8 D. Any 0akistani resident over the age of 1C can open this account A. Alfalah %ahana Amdan term deposit can e maintained only at any one "A# ranch with a maximum cap of (s. 1; %illion. An undertaking shall e o tained from the customer certifying that he:she is not availing Alfalah %ahana Amdan 9erm Feposit (eceipt facility from any other "A# ranch.5included in A!>8 C. Alfalah %ahana Amdan 9F( will e issued for three years tenure with auto renewal facility of principal amount i.e. the facility will e renewed automatically on maturity 5i.e. . years8 B. Alfalah %ahana Amdan 9F( will e su 2ect to Makat$ -ithholding 9ax as well as any other applica le taxes

Al%alah Ed0'a i,n

Alfalah Education is a 9erm Feposit product with <o Additional /ost 5<A/8 education insurance cover for account holders with school going children. Alfalah Education Account $ eside offering competitive return on 9E(% FE0!SI9 $ offers tuition fee reim ursement of children for 1; years of schooling or up to their 2Ith irthday$ in the unfortunate event of the death 5either through accident$ illness or natural causes8 of the main readwinner 5account holder8 parent. Alfalah Education offers a competitive return on term deposit and secondly$ it creates a contingency provision for our school going youth=s education in the hapless event of the death of any ma2or readwinner. 9he product seems rewarding in the current scenario of increasing num er of children of school going age and the general pu lic interest in ,uality education of their off springs. 7ea 0!e"

Feposits can e placed in multiple of 1II$III units with maximum . units allowed per depositor$ i.e. a maximum deposit per customer of (s. .II$III across all "A# ranches. All . units can e purchased for 1 child or each for up to . children. <o evidence of insura ility 5medical examination:health decoration8 is re,uired.

%aximum entry point age is ;; years 5renewa le up to D1th irthday8 "enefit payment increases with age:class of the child. 9he product will e offered as a 1 year term deposit at upto A L profit to e paid at maturity 0remium cost for each deposit unit of (s. 1II$III would e (s. C; per month and orne y the ank. (egular Makat and -'9 would apply on the deposit. %onthly payments set forth will e paid directly to the mother:guardian$ regardless of the actual school fee. In case of 2oint account holders$ only main readwinner account holder would e covered under the policy. 0remium will e paid to A#I/! y "A# on monthly asis.

#ockers

"ank Alfalah provides safe deposit locker facility to its customers for safe keeping of their valua les like documents$ securities and 2ewellery etc. I&#,! an %ea 0!e" ,% l,'$e!" %a'ili * a!e a" %,ll,(":

Garious si&es to choose from small$ medium ? large. Annual locker rent ranges from (s.1$III:6 to (s..$;II:6. #ocker rent is waived for customers maintaining a minimum deposit of (s.2 million in current account or a ove @S N2;$III:6 in a current account or @S N;I$III:6 in a savings account.

L,'$e! 9a e" 9he annual license fees of the following si&es of lockers will e as follows:

L,'$e! Size S&all Medi0& La!+e S#e'ial

Cha!+e" 9"..;;;<= 9"..>;;<= 9".2;;;<= 9".2>;;<=

Ke* De#,"i :

9"..;;;<= ?9e%0nda@leA

9he license fees lockers will e paya le in advance every year and no part of the same shall e refunda le in any circumstances.

(emittance

9hrough our international correspondent anking relationships we provide direct and indirect foreign currency remittance facility around the world.

M,ne* G!a&

"ank Alfalah limited$ in colla oration with M,ne* G!a&B offers remittance service to 0akistan. M,ne* G!a& is person to person money transfer service that allows consumers to receive money in 2ust a few minutes. Se'0!e and !elia@le:

An extensive network of ,uality agents$ linked y computer$ will transfer your money safely and ensure that it is handled with care and without delay. 9housands of people already use the M,ne* G!a& service all over the world. It is trusted for its relia ility and security. C,n)enien and %a" : M,ne* G!a& is availa le in over 1;1 countries and in more than 1I$III locations worldwide. -ith M,ne* G!a& your money is transferred immediately and usually arrives at the receiving end within 1I minutes while other services can take days or weeks. 9here are no complicated procedures and you do not need a ank account or a credit card. -hat=s more$ the receiver is handed the cash immediately. 7!ee &e""a+e "e!)i'e ?%,! "ende!"A: 9here is also an added personal touch6you can receive a 1I word message from the sender with every transaction at no extra cost.

'ilal : Fe it

In our endeavor to provide you versatile anking options to fulfill your financial needs$ "ank Alfalah #imited presents the

Alfalah 'ilal /ard$ a Fe it /ard which gives you unlimited access to your current : savings account with a simple swipe at millions of retail shops and A9%s worldwide. 9he Alfalah 'ilal /ard comes with a host of conveniences and enefits com ined with the wide reach of Gisa <etwork$ ena ling it to e accepted at more than 1 million A9%s and 1. million retail outlets around the world$ making it the most accepta le Fe it /ard availa le in 0akistan. -hat3s more$ it is easy to operate and can e used on any electronic self6printing 0!S machine where GISA is accepted$ locally and internationally. <o more hassle of remem ering your 0I< for retail transactions and no need to go to the A9% for cash withdrawalO !ne swipe and your transaction is complete. 7ea 0!e" 9he Alfalah 'ilal /ard can e used electronically at any retail outlet or A9% that accepts GISA cards and displays these logos:

/e!",nal Iden i%i'a i,n N0&@e! ?/INA: Fe it cards that are currently availa le in 0akistan re,uire the card mem er to enter the 0I< num er in order to complete a transaction. 9he Alfalah 'ilal /ard is a P!ne6 Swipe /ardP and does not re,uire you to remem er any 0I< in order to execute retail transactions. 9he 0I< which will e delivered to you for Gisa Electron will e re,uired for A9% ased transactions only. S#e'ial /OS Ma'hine": In order to use other de it cards currently in the market you would need to find outlets that carry special 0!S machines

where these cards can e used. Alfalah 'ilal /ard is accepted at all outlets displaying the GISA:Electron logo worldwide and having self6printing 0!S terminals.

T, @e 0"ed N, , @e 0"ed for Alfalah 'ilal /ard for Alfalah 'ilal /ard Gl,@al A''e# a@ili *: 9he Alfalah 'ilal /ard is glo ally accepted welcomed at all locations displaying the GISA: E#E/9(!<:0#@S logos with self6printing 0!S terminals. Jour card is accepted at nearly 1. million physical locations in more than 1.I countries round the glo e with a ove 11$III ma2or esta lishments in 0akistan. -ith your Alfalah 'ilal /ard$ you can pay for shopping$ meals$ travel$ entertainment$ holiday$ petrol and much more. Also it gives you access to ready cash through your 0I< 50ersonal Identification <um er8 at more than 1 million A9%s to withdraw any amount up to your availa le ank account alance. 9his premier card service is a convenient point6of6 sale alternative for A9% cardholders who do not ,ualify for Gisa credit purchasing power. 9hrough Alfalah 'ilal /ard$ you can access your "ank Alfalah3s account from anywhere in the world. 13=H,0! C0" ,&e! Se!)i'e !ur 216'ours /ustomer Service is there to help you with your re,uests. !ur well6trained and ,ualified /ustomer Service team will assist you in:

a @ ' d

Answering your ,ueries (egistering and resolving your complaints (eporting a lost: stolen card Activating your /ard

7,!ei+n T!an"a' i,n": 9ransactions made outside 0akistan will e converted from the transaction currency to @S Follars$ ased on international exchange rate prevailing on that date. In order to assist card mem ers$ all transactions will e converted to 0ak (upees for payment. 9his conversation will e ased on the market exchange rate ,uoted y authori&ed money changers and in accordance with the "ank3s 0rocedures applica le from time to time. Ze!, L,"" Lia@ili *: If ever you lose your card$ "ank Alfalah ensures that you never have to worry a out itO Jou are covered for all fraudulent charges made on your card as soon as it has een reported lost to us. *ust make sure that you report the loss immediately upon discovery. Jou are completely secure against loss$ theft after the card loss has een reported to us. N, Mini&0& In',&e 9eC0i!e&en : @nlike other /ards$ the Alfalah 'ilal /ard is easy to o tain. 9here is no preset income re,uirement to en2oy the enefits of this fast$ convenient and safe. All you need to do is open and maintain an account with any of the ranches of "ank Alfalah #imited. Si&#li'i *:

/harge goods and services to your Alfalah 'ilal /ard at all point6of6sale terminals with self6printing a ility displaying GISA : Electron sign in 0akistan and a road. 7le-i@ili *: -ith Alfalah 'ilal/ard you may withdraw cash from over 1 million A9%s 5Automatic 9eller %achines8 worldwide. Jou no longer need to worry a out whether you3ll make it to the ank efore closing time$ ecause A9%s never close 6 they are open 21 hours a day$ A days a week$ .D; days a year. /!,&# ne"": @sing Alfalah 'ilal/ard at A9%s and : or shops re,uires less time than ,ueuing in the "ank and writing out checks. C,n !,lled S#endin+: All Alfalah 'ilal/ard transactions are su 2ect to authori&ation$ which means whenever you do a transaction the status of your account is checked. 9hus you eliminate the risk of spending the money you don3t have 6 you yourself control your account. O)e!)ie( ,% E-#en"e": Each single charge and each withdrawal of cash at A9% made using your Alfalah 'ilal/ard shall e clearly itemi&ed on your ank statement ena ling you to easily check the status of your account. I&&edia e /a*&en :

-ith Alfalah 'ilal/ard you pay your ills immediately unlike when you use a /redit /ard and get the ill later. 9he amount is directly de ited from your designated /urrent:Savings account.

Ge 7a&ilia! 1. Jour <ame 2. Jour exclusive 1D digit card num er .. Galidity 0eriod 1. GISA logo ;. .6F hologram security for card

1. A magnetic strip containing coded information for the security of your card. 2. Jour Signature panel .. Gisa 0lus #ogo 1. "ank Alfalah contact

Wha i" ,n he Ca!dD E Shah Din Manzil

7inan'ial Se!)i'e"

Structured >inance 9rade >inance S%E #ease >inance

Structured >inance Fepartment comprises a team of hand picked professionals$ dedicated to syndicated loans and

structured products. 9he team=s expertise is well known in the marketplace with its capa ility to assist pu lic ? private sector entities$ ma2or financial institutions$ multinational corporations$ domestic ? international institutional investors in innovative financing including underwriting ? private placements. 9he scope of S>@=s activities also encompasses advisory assignments$ such as privati&ation$ %ergers ? Ac,uisitions 5%?As8$ domestic listings$ I0!=s and restructuring. Furing the past few years$ S>@ has een successful in sourcing and participating in a num er of prestigious transactions involving large amounts. S,&e ,% he )al0e added "e!)i'e" ,%%e!ed @* S78 in'l0de he %,ll,(in+:

#oan

syndication

0u lic floatation of 9erm >inance /ertificates 59>/s8 and e,uity 0rivate placement of 9erm >inance /ertificates 59>/s8 and e,uity underwriting 4uarantee >inancial %ergers >ostering ? Ac,uisitions 2oint syndications restructuring 5%?As8 ventures uyers side advisory

0rivati&ation Q Sale side and

Structuring new financial instruments

In future$ S>@ is envisaged to supplement the enhanced profile and profita ility of "ank Alfalah #imited through its value added services$ through oth asset uilding and income generating aspects

Inspired y a challenging spirit and an unyielding desire to create a sound and relia le network of correspondent relationships$ the ank has placed great emphasis towards it growth. Accomplishing something for the first time re,uires a special focus. It demands foreseeing possi ilities. In our endeavor to do so$ we successfully surmounted pro lems and difficulties arising out of issues relating to weak economic conditions of the economy and a continuous deteriorating status of country risk. 9he incertitude and skepticism of the international anking community towards financial institutions from emerging markets remained intact. !ur persistence during the past four years allowed us to make significant inroads into the arena of correspondent anking. #arge international anks$ after critically evaluating us$ agreed to enter into relationship. Furing 2II2 we added C1 anks to our network of correspondents$ ringing the total num er over 1AI. !f these relationships$ there are now several anks that rank amongst$ the top financial institutions in the world. !ur geographical coverage now extends to over 1II countries$ which is ade,uately compati le with our trade flows. !ur correspondents$ during the year extended us un,ualified support$ which ena led us to undertake a healthy ,uantum of foreign trade usiness. 9here are many challenges ahead for the ank$ in the coming year$ our ank will not only

continue to review its efforts on existing correspondents to make the relationship more eneficial$ ut will also add more correspondents to esta lish a comprehensive international networking to facilitate our customer=s transaction as well as the "ank=s proprietary needs. -e have provided against the list of correspondents their world and country ranking. 9hese ranking have een taken from 9he "ankers Almanac Q *uly 2II1 issue. -e would like to emphasi&e that correspondent arrangements do not necessarily imply the existence of account relationship. -e are in the process of rationali&ing our current nostro account relationships. -e shall continue to open new accounts in various currencies ased on our trade flows and usiness re,uirements

Small and %edium Enterprise 5S%E8 means an entity$ ideally not a pu lic limited company$ which does not employ more than 2;I persons 5if it is manufacturing : service concern8 and ;I persons 5if it is trading concern8 and also fulfills the following criteria of either Ka= and Kc= or K = and Kc= as relevant: 5a8 A trading : service concern with total assets at cost excluding land and uilding up to (s ;I million. 5 8 A manufacturing concern with total assets at cost excluding land and uilding up to (s 1II million.

5c8 Any concern 5trading$ service or manufacturing8 with net sales not exceeding (s .II million as per latest financial statements. An Individual$ if he or she meets the a ove criteria$ can also e categori&ed as an S%E. (eali&ing its corporate social responsi ility and carrying forward the image of P9he /aring "ankP$ "ank Alfalah started a separate department at the 'ead !ffice level in early 2II1. 9he S%E Fepartment was esta lished with a mandate to foster S%E finance at "A#$ explore opportunities for developing structured product programs for S%Es$ introduce the concept of Fedicated S%E officers and finding market ased solutions to fill the financing gap to this important and under6served usiness segment. "ank Alfalah elieves in innovation$ simplification of procedures$ and reduction in turnaround time and customer friendly service. 9o accomplish this resolve$ the S%E Fepartment is supported y CD dedicated officers in ;A ranches of the ank who are nurturing valua le relationships in the S%E sector. AL7ALAH KA9OBA9 7INANCE "ank Alfalah=s first S%E product Alfalah Earo ar >inance is a running finance facility ased on pro2ected cash flows. @nder AE>$ we offer working capital finance 5(s.I.; million to (s. 1I million8 to S%E=s at highly competitive rates. -e have a team of professional credit officers who provide expert financial advice along with customi&ed packages to a diverse range of usiness clientele. 9he product is availa le to S%Es through our CD ranches in .C cities.

"ank Alfalah took another step towards addressing the needs of the industry y introducing Alfalah %ilkiat >inance.

A%> is aimed at strengthening the Small and %edium Enterprises vi& a vi& their usiness premises. Alfalah %ilkiat >inance offers comprehensive and flexi le financing packages from (s. I.;% up to (s. 2I million for the purchase$ renovation and expansion of usiness premises.

In modern days leasing has now ecome an economic and financial reality of primary importance. It is the originality of the leasing techni,ues and its economical advantages$ which has ena led it to enter the world of industrial investment in 0akistan and on the international scene. #ease finance provides a significant source of funds for companies to ac,uire or use assets. #easing provides additional earning opportunities to ac,uire assets and to get the inflows simultaneously out of the operations of the same assets. 9he ownership of the asset is vested with the "ank 5lessor8 and in return for rental paymentsH the client 5lessee8 has full use of the asset. "eing a medium to long term mode of financing$ it allows the lessee to use the funds for other profita le purposes which otherwise would have een tied up in case of immediate payment for purchase of the asset. 9he lease finance facilities are availa le for a variety of assets 5imported:local8 conforming ut not limited to the following categories:
1. Vehi'le" 2. /lan B 3. CNG 4. Gene!a ,!"?Ind0" !ial F C,&&e!'ialA

?/!i)a e Ma'hine!*

F and

C,&&e!'ialA eC0i#&en EC0i#&en

C,n"0&e! Ban$in+

/redit /ards 'ome #oans Auto:Gehicle #oans %oney 4ram Agri >inance

C!edi Ca!d

Jour "ank Alfalah /redit /ard is your partner everywhere and is glo ally accepted and welcomed at locations displaying the GISA logo. It is accepted at nearly .I million locations in more than 1;I countries around the glo e and over 1C$III "ank Alfalah=s esta lishments in 0akistan.

Alfalah GISA lets you pay for shopping$ travel$ entertainment$ meals and much more. /ard mem ers are facilitated through a num er of promotions from time to time. In addition$ there are a num er of strategic usiness partnerships with leading local and international rands for purchase of home appliances at exciting Step6"J6Step 5S"S8 monthly installment plan with free home delivery at lowest interest rates. Salient features are: <o *oining : Annual : (enewal fee Electricity$ Sui 4as$ 09/# and -arid ills payment through 21 hour /all /enter and Auto Fe it instructions S%S for card usage$ mini statement$ payment receipt confirmation$ etc. /ash withdrawal at all 1#I<E A9%s Special offer on -arid post paid connections (ush now to avail matchless features offered y Alfalah GISA 0latinum /ard It is accepted at nearly .I million locations in more than 1;I countries around the glo e and at over 1A$III esta lishments in 0akistan.

4old Silver

A perfect card com ination for all segments of salaried ? professional individuals.

Joung 0rofessional 9his /ard is for you$ if you are: R a 4raduate... R have 2ust started your /areer...

-omen Exclusive <ow for the first time in 0akistan$ "ank Alfalah has introduced a credit card exclusively for women. 9his card has its uni,ue features...

Student /ard >or the first time in 0akistan$ "ank Alfalah introduces a credit card for Students. . Supplementary /ard <ow you can give >ree Supplementary /ards to anyone you care for... Gisa %ini

Gisa %ini is a practical and convenient part of your everyday life 6 whether you go for shopping$ dine out$ uy grocery$ want to go for holidays... Awami /ard Alfalah Awami /ard is your partner everywhere and is glo ally accepted and welcomed at locations displaying the GISA logo. It is accepted...

H,&e 7inan'e

-ith this facility$ you no longer need to 2ust dream a out the home you want for yourself and your family .-e will provide you upto 6;G of the purchase price of the property, so that you can realise your dream
and enter the reality of owning a home..

/a*&en #e!i,d !an+e" %!,& 2 , 1; *ea!".

Jou own a plot ut need financing to construct a home$ that excites everyone in your familyO <o pro lem. -e will provide up6to 1IIL of the construction cost ena ling you to say good6 ye to rent foreverO Even if you don3t have a plot$ we will provide upto DIL of the value of the plot that you have selected to purchaseO D, (e e-'i e *,0! i&a+ina i,nD /a*&en #e!i,d !an+e" %!,& 2 , 1; *ea!".

/ou already own a home, !ut need e0tra space for a growing family or want to see some rooms get a new look. Simply apply for financing of the surveyed value of your home and get yourself the e0tra space.

0# , 9". 2.>; &illi,n ,! 3;G of

Y,0 'an " !e 'h *,0! #a*&en " %,! 0# , .; *ea!"

9he crown 2ewel of our 'ome >inance scheme$ the golden opportunity for someone starting a career to uy an already constructed housing unit early in lifeO -e offer a &,!a ,!i0& ,% 0# , 2 *ea!" in principal payments, for a financing of upto 12
years. /ou service only the mark3up element initially, and principal repayment starts after the end of moratorium period.

H,&e S a!

is specially designed for young professionals to own a quality asset.

Foes your existing installment on a home finance leave you with nothing to spendS Jou need not worry any more ecause we have genuinely attractive rates and flexi le payment options that could leave more funds with you each month. -ith our 'ome "9>$ repaying your home finance will not make you reak into a sweatO 9ransfer upto 1II L of the existing finance. S !e 'h *,0! !e#a*&en ,n'e a+ain H #e!i,d %,! 0# , 1; *ea!"

Ca! 7inan'e

7uickest <o %inimum /omplete repayment hidden down at any point

processing. charges. payment. of time.

"alance transfer facility T"9>U for existing as well as new clients from other "anks. 9enure period ranging from 1 to ; years.

>inancing of all and

rand new locally assem led vehicles used cars. etween (s. 2II$III:6 to (s. rand new cars.

>inancing limit ranging 2III$III:6 for

C,!#,!a e F Indi)id0al Ca! Lea"in+ "A#=s recently introduced car leasing facility for individuals and corporate sector has set new dimensions for the product. <ow you are provided with the option of either to get the vehicle leased or financed. In"0!an'e (enowned and relia le Insurance companies are offering the competitive rates of insurance. 0ay year insurance premium in advance T at the time of down payment U and the remaining in the su se,uent e,ual monthly installment. H,( M0'h E- !a M,ne* Bein+ /aidD IMa!$=8#J "ank Alfalah3s mark6up rates are as follows :

7inan'in+ /!,d0'

.Y!

1Y!

2Y!

3Y!

>Y!

/ar #oan for "rand <ew 11.II 11.;I 1;.II 1;.;I 1;.;I Gehicles L L L L L /ar #oan for "rand <ew 1D.II 1D.II 1D.II 1D.II 1D.II

Imported Gehicles

/ar #oan for <ew 1;.;I 1;.;I 1;.;I 1;.;I 1;.;I /ommercial Gehicles L L L L L /ar #oan for Gehicles Assem led !nly8 @sed 1A.II 1A.II 1A.II 1A.II 1A.II 5#ocal L L L L L

/ar #oan for Internal : 1D.II 1D.II 1D.II 1D.II 1D.II External "9> 5#ocal L L L L L Assem led8 /ar #oan for Internal "9> 1A.II 1A.II 1A.II 1A.II 1A.II 5Imported8 L L L L L

C,!#,!a e Di"',0n 9a e A /orporate Fiscount of I.;L shall continue to apply on all a ove mentioned rates. 9e#a*&en " Easily afforda le installments on monthly asis in the form of post6dated che,ues will set you free of depositing your rental che,ues every month. Se'0!i * 'ypothecation of vehicle in the name of "ank Alfalah #imited. Y,0 Can A' A" A C,=B,!!,(e! Acting as a co6 orrower will ena le your family mem ers Tspouse$ children6 1C year and a oveU to avail the financing facility and get the car registered in their names as well.

A+!i 7inan'e

"ank Alfalah #imited acknowledging the vital role of a agriculture in the economic development of 0akistan has designed (ural >inance 0rogram named as P"A<E A#>A#A' MA(IE SA'@#A9P. 9he product is designed to cater for multiple financing re,uirements of our farming sector. -e are caring our customers through chain of complete$ distinguished and speciali&ed products for agriculture sector. "A# "ranches are designed to help the farmers with expert advice$ technical know6how and /redit for their multifarious activities through timely$ afforda le and attaina le modes tosuit farmer re,uirements. "A<E A#>A#A' MA(IE SA'@#A9 is availa le for Short$ %edium and #ong terms. "ank Alfalah #imited Strategy is to focus on following ! 2ectives:

0rovide relia le infrastructure for Agri customers. 'elp farmers utili&e funds efficiently and effectively. 0rovide farmers an integrated package of credit$ supervision and technical know6how.

"ank Alfalah #imited is committed to make dreams come true y making 0akistan3s (ural Economy healthier and stronger.

T!ea"0!* and In)e" &en

M,ne* Ma!$e

Short

term

money

market

inter6 ank

trading.

Active 9reasury "ills trading in secondary market. >orward Q forward inter6 ank money market trading. %oney market linked lending to and corporate orrowing from clients.

7,!ei+n E-'han+e Ma!$e

Active

trading

in

ready

and

forward

@SF:0E(.

Active ,uotations of foreign exchange rates in fifteen ma2or currencies. Information in respect of prevailing rates of most of the currencies of the world for corporate clients and individuals. >orward Q >orward foreign exchange rates of @SF:0E(. Active swap trading in @SF:0E( and other ma2or currencies such as E@($ 4"0$ *0J and /'>.

In)e" &en

Active

Investment

in

treasury

ills

59"s8.

Active 9rading in 0akistan Investment "onds 50I"s8. Active investment in /ertificate of Investment 5/!Is8 Active investment in 9erms >inance /ertificates 59>/s8

G,)e!n&en Se'0!i ie"

Efficient service for individuals and corporate clients for uying and selling govt securities on their appropriate re,uests.

C0" ,dian"hi#

Investment Securities 0ortfolio Accounts of /ustomers for holding on their ehalf 9reasury "ills$ 0akistan Investment "onds.

7inan'ial Ad)i",!* Se!)i'e"

"riefing on current information availa le in market in respect of prevailing rates of @SF:0E(. "riefing on current information availa le in market in respect of foreign exchange rates of ma2or foreign currencies.

>uture expectations and sentiments on ma2or foreign currencies including 0ak.(upees.

(emittances are transfers of money y foreign workers to their home countries. 9he -orld "ank officially estimates that migrants from developing countries sent from a road$ 'ome (emittances more than @SN 22. illion to their families during the Jear 2II;$ a figure more than twice the level of international aid. (emittances are playing an increasingly larger role in the economies of many countries. Around 1.I$III people leave our country annually$ opening up many avenues to enrich the stream of home remittances. 9herefore under the present circumstances where enhanced volumes of funds are flowing in from a road$ "ank Alfalah is proactively seeking to e an important conduit to facilitate the growth of si&ea le usiness. !ur 'ome remittances unit is strategically proactive in diminishing the informal channels of transfer of funds. !ur strength of correspondent anking relationship plays a pivotal role in augmenting the ,uality of our remittance services. -e continue to offer unprecedented and most efficient services to our clients.

I"la&i' Ban$in+

9he thrust for Islamic "anking is founded on the desire to su mit to the Fivine Instructions on all transactions$ particularly those involving exchange of money for money. 'owever$ it would e ,uite unfair to limit Islamic "anking to elimination of (iba only. (iba is ut one of the ma2or undesira le elements of an economic transaction$ the others eing -harar 5uncertainty8 and .imar 5speculation8. -hile elimination of these o 2ectiona le aspects in a transaction is indeed a critical aim of Islamic anking system$ it is y no means its ultimate o 2ective. At the heart of Islamic "anking is a system of commercial transactions that not only provides Halal modes of commercial transactions y avoiding that which is o noxious and o 2ectiona le$ ut also fosters ethical$ fair and 2ust practices. A key element of Islamic economics is distri ution of e,uita le rewards to the different factors of production. Islamic economic system seeks system of (edistri utive 2ustice where concentration of wealth in a few hands is countered and flow of money into economy is fluent. Islamic "anking is$ therefore$ seen as a lynchpin to achieving the economic and social goals of the Islamic economic system. 9i@a It has een argued in vain for long in some circles that the prohi ition in Islam is that of excessive interest only. !r that it is the interest on consumptive loans that has een for idden and as such loans extended for commercial purposes are entitled to an excess over the principal amount lent. Such tendentious arguing fails to give due understanding to verses 2AC and 2AB of Surah Al6"a,arah 5,uoted elow8.

KO *e (h, @elie)eH Be a%!aid ,% Allah and +i)e 0# (ha !e&ain" ?d0e , *,0A %!,& 9i@a ?0"0!*A ?%!,& n,( ,n(a!d"A i% *,0 a!e ?!eall*A @elie)e!"H 1:156 And i% *,0 d, n, d, i B a$e n, i'e ,% (a! %!,& Allah and Hi" Me""en+e!H B0 i% *,0 !e#en B *,0 "hall ha)e *,0! 'a#i al "0&" 1:15L 'owever$ this does not mean that Islam prohi its any gain on principal sums. In Islam$ profit is the recogni&ed reward for capital. -hen capital employed in permissi le usiness yields profit that )excess over capital+ ecomes the rightful and 2ust claim of the owner of the capital. As a corollary$ the risk of loss also rests exclusively with the capital and no other factor of production is expected to incur it. Another important element of Islamic finance is that profit or reward can only e claimed in the instance where either risk of loss has een assumed or effort has een expended. 0rofit is therefore received y the provider of capital and wages:remuneration y la our:manager. A depositor in an Islamic ank can therefore make earnings on his or her deposit in several ways. 9hrough return on his capital when that capital is employed in a usiness ventureH through sharing of profit when his capital is part of the capital that is employed in a partnership$ and finally through rental earnings on an asset that has een partially financed y his capital. I"la&i' %inan'in+: A""e =@a"ed %inan'in+ A key feature of Islamic anking is that unlike conventional anks which deal primarily in money and financial securities$ Islamic financing is related to an asset that is a feature of the transaction$ and ,uite often the principal feature itself. >rom this springs an important distinguishing feature of Islam wherein Islamic financing is always ased on illi,uid

assets that have intrinsic value. 0rofit to Islamic financing is generated through onafide sale of these assets. /onventional anking$ on the other hand$ is free of such limitations. It lends money and makes its earnings through this act of lending. Its earnings are unconcerned with the economic fate of its lending. A /e!"#e' i)e: 9he history of Islamic anking from its recorded inception is less than 1I years old. >rom a hum le eginning in a small village in Egypt in the late DI=s$ it has spread to the four corners of the world. "y normal standards in a time span that is less than half a century it could have hardly een expected to esta lish foothold in %uslim world$ let alone make its presence felt in %uslim6minority countries. Jet such has een its phenomenal rate of growth that not only is it taking firm roots in its homestead$ ut is also attracting genuine interest among the standard earers of conventional anking and in swathes of land where %uslims are a small minority only. Still there is much ground left to cover. In 0akistan$ Islamic "anking is less than .L of the "anking sector. Even in the 4ulf states$ where it has a larger footprint$ in no single country is the volume of Islamic anking more than a third of the entire sector. %any lame Islamic "anking=s small share against conventional anking to a smaller portfolio of products. A standard complaint against Islamic anks is that they do not have the same variety of financial instruments as found in conventional anking. 9hough valid to an extent$ this popular 2eremiad needs to e seen in the perspective of Islamic "anking=s rief history against more than two centuries of conventional anking adopted in full force across the glo e$ its competition against an entrenched system of anking and the constraints within which it must operate.

<otwithstanding$ Islamic anking is still growing at more than twice the growth rate of conventional anking worldwide$ and while it may not have the latter=s plethora of financial products$ its repertoire of Islamic financial products is steadily increasing. In the following space$ principal Islamic instruments are riefly descri ed to ac,uaint the reader with their fundamental aspects. >ollowing that$ Islamic 0roducts in "A#6I"F=s portfolio are illustrated in terms of their features.

9he "ank is fully aware that the ranch network has direct implications on the services that it provides to its customers. -e offer services through a network of 1BC ranches and 11C state of the art A9% machines. B. -ork done y the Students 1I. >inancial Analysis

9ATIO ANALYSIS *he su//ess o' any or!ani#ation is /ontin!ent u0on its 0er'orman/e and the 0er'orman/e le%el /an be "uantitati%ely measured throu!h the 'inan/ial analysis also known as (atio analysis ..C899ENT 9ATIO /urrent (atio is a direct evaluation of a company=s li,uidity. 9he higher this value$ the more li,uid a company=s resources are. A /urrent (atio of 2.I would e considered satisfactory. /urrent (atio is found y dividing /urrent Assets y /urrent #ia ilities.
CURRENT RATIO = CURRENT ASSETS CURRENT LIABILITIES

C0!!en A""e " C0!!en 1.$.1A$CB ;C$1A1$;2 Lia@ili ie D A " 9a i, 2.D; ..1; C899ENT ASSETS : 9otal assets Q !perating fixed assets Q long term investment 2II;: 21C$.1.$AB. 6 DD2IIDA 6;A12;AII V 1C1$2DC$I2D 2II1: 1;1$C..$;.1 Q 1$2CI$;I1 Q .;$;I.$1BD V 11;$I1B$C.1

1;;3 11;$I1B$C .1

1;;> 1C1$2DC$I 2D

C899ENT LIABILITIES: 9otal lia ilities Q #ong term lia ilities #ong term lia ilities V orrowings from financial institutions W fixed deposit accounts W lia ility against assets su 2ect to financial lease 1;;>: 21I$C1B$DDA Q 5;$C11$.CB W 1AD$;.I$A;1 W I8 V ;C$1A1$;2A 1;;3: 11B$;A.$I;I Q 512$A2.$C.I W B.$;I1$.21 W I8 V 1.$.1A$CBD COMMENTS /urrent (atio of 2:1 is considered good and accepta le as far as financial ratios are concerned. As conventional ratios are more than two which is a very good sign. It means current ratios are satisfactory. 1. NET /9O7IT 9ATIOS: 9his is comparison of net profit markup:interest earned y the ank. >ormula: after tax and

Ne /!,%i A% e! Ta- M.;; Ma!$=0#<in e!e" ea!ned

2II;: 1$AI2$IB1 : 12$21D$C11 X 1II V .2.L;G 2II1: 1$IB1$BCB : ;$D2I$2I. X 1II N .L.31G COMMENTS

9he net profit ratio of "ank Alfalah #imited has declined from 1B.12 L to 1..BI L ecause here in year 2II; the net profit has increased utt on the other hand the mark6up earned also has increased resulting in a decrease in the profita ility ratio of this ank. 2. NET INTE9EST INCOME TO G9OSS INCOME 9ATIO: 9his is comparison of net interest income earned and the gross income y the ank. >ormula: ne &a!$ 0# < in e!e" in',&e G!,"" in',&e M.;;

2II;:

;$I11$C1B : A$2CA$1CB X 1II V 4L..L G 2II1: .$1C;$A11 : 1$AIC$AB. X 1II V 45.5; G He!e +!,"" in',&e Nne in e!e" in',&e O n,n= &a!$0# in',&e 2II;: ;$I11$C1B W 2$21; .AI V 5B165B.6L 2II1: .$1C;$A11 W 1$;2I$I1B V 3B5;>B5L2 C,&&en ": 9he net income to gross income ratio of "ank Alfalah limited for the year 2II; that is DB.1BL$ this is good as this ratio is increasing as compared to DA.AL in year2II1. .. O/E9ATING EP/ENSE 9ATIO

It is a comparison of operating expense and the markup : interest earned y the ank. 7,!&0la: N,n Ma!$0# E-#en"e G!,"" in',&e M.;;

2II1: 2II;: C,&&en ":

CB1B.2C : 22D1;ID1 111;DD.A : .2A.D;B2

X 1II X 1II

N2L.2G N23.LG

9he operating expense ratio to gross profit of "ank Alfalah #imited for the year 2II; is BC.CL which is good as compared to ration of previous year that is 2II1 ;1.AL which is mainly due to increase in gross profit and decrease in operating expenses of the ank. 1. TOTAL ASSETS T89NOVE9 9ATIO:

It is comparison of the mark6up : interest earned y the ank to the total assets of the ank. 7,!&0la: &a!$0#<!e 0!n<in e!e" ea!ned T, al a""e " 2II;: i&e" 2II1: i&e" C,&&en ": 9he total assets turn over ratio of "ank Alfalah #imited for the year 2II; is I.I1B times which is good as this ratio is increasing as compared to I.I.D times in year 2II1.it is mainly due to increase in markup:interest earned y the ank. 2. 9ET89N ON ASSETS 9ATIO: 12$21D$C11 : 21C$.1.$AB. ;$D2I$2I. : 1;1$C..$;.1 V V ;.;3L ;.;24

It is compared of net profit after tax and total assets of the ank. 7,!&0la: Ne #!,%i a% e! aT, al a""e " M.;;

1;;>: 1$AI2$IB1 : 21C$.1.$AB. X 1II V ;.46G 1;;3: 1$IB1$BCB : 1;1$C..$;.1 X1II C,&&en ": 9he return on assets ratio of "ank Alfalah #imited for the year 2II; is I.DCL which is less then the previous years and it is mainly due to the in crease of net assets of the ank as compared to the previous year. 3. TOTAL ASSETS T89NOVE9 9ATIO: V ;.5;G

It is comparison of the mark6up : interest earned y the ank to the total assets of the ank. 7,!&0la: &a!$0#<!e 0!n<in e!e" ea!ned T, al a""e " 2II;: i&e" 2II1: i&e" C,&&en ": 9he total assets turn over ratio of "ank Alfalah #imited for the year 2II; is I.I1B times which is good as this ratio is increasing as compared to I.I.D times in year 2II1.it is mainly due to increase in markup:interest earned y the ank. 12$21D$C11 : 21C$.1.$AB. ;$D2I$2I. : 1;1$C..$;.1 V V ;.;3L ;.;24

>. 9ET89N ON ASSETS 9ATIO:

It is compared of net profit after tax and total assets of the ank. 7,!&0la: Ne #!,%i a% e! aT, al a""e " M.;;

1;;>: 1$AI2$IB1 : 21C$.1.$AB. X 1II V ;.46G 1;;3: 1$IB1$BCB : 1;1$C..$;.1 X1II C,&&en ": 9he return on assets ratio of "ank Alfalah #imited for the year 2II; is I.DCL which is less then the previous years and it is mainly due to the in crease of net assets of the ank as compared to the previous year. V ;.5;G

5. 9ET89N ON EQ8ITY 9ATIO: It is comparison of net profit after tax and owners e,uity of the ank.

,ormula1 1;;>: 1;;3:

Net 0ro'it a'ter ta2

3455 N 1>G N 13.LG

O(ne!R" eC0i * 1$AI2$IB1 : D$A.C$ID. X 1II 1$IB1$BC1 : 1$.DB$IA2 X 1II

C,&&en " 9he return on e,uity ratio of "ank Alfalah #imited for the year 2II; is 2;L which is almost the same as compared to the previous year and this shows a sta ility in anks usiness. 6. INTE9EST< /9O7IT TO ADVANCES 9ATIO Interest : 0rofit to Advances (atio shows that how much percent ank is generating interest : profit on its advances. 9he more this ratio$ it means advances are generating more profit than efore. In e!e" < /!,%i , Ad)an'e" 9a i, N In e!e" </!,%i Ad)an'e" Ban$ Al%alah ?C,n)en i,nalA 1;;3 1;;> 1$IB1$BCB 1$AI2$IB1 CC$B.1$1I 11C$CD1$I1 I I

/!,%i Ad)an'e " 9a i, 1.2C 1.1. ?GA 9he more profit : interest to advances ratio$ means more generation of profit y each rupee of advances. 'ere we can see that "ank Alfalah Islamic ratio is in negative ecause it has suffered loss in year 2II1 ut in recent year it has improved from this negative mark to I.I12 L which is a etter sign. L. INTE9EST < /9O7IT TO DE/OSITS 9ATIO 0rofit to Feposit (atio shows that how much percent ank is generating interest : profit on deposits.

 9he more this ratio$ it means deposits are generating more profit than efore. In e!e" </!,%i , De#,"i " 9a i,N In e!e" < #!,%i De#,"i " Ban$ Al%alah ?C,n)en i,nalA 1;;3 /!,%i < In e!e" De#,"i 9a i, ?GA C,&&en " 1$IB1$BCB 12B$A11$CB1 ;.55 1;;> 1$AI2$IB1 222$.1;$IDA ;.>3

9he more profit : interest to deposit ratio$ means more generation of profit y each rupee of Feposit. So$ here ratio of "ank Alfalah /onventional is much "etter than Alfalah Islamic "ank. "ut here we can see that "ank Alfalah Islamic ratio is in negative ecause it has suffered loss in year 2II1 and it has improved in the current year from this negative figure to I.IIB; .;. C899ENT DE/OSIT TO TOTAL DE/OSIT 9ATIO /urrent Feposit to 9otal Feposit (atio shows that how much percent current deposit are of total deposits. If /urrent deposits are more it means a ank must have good ,uick ratio and cash availa ility so that it can meet daily re,uirement of cash withdrawal.
CURRENT DEPOSIT TOTAL DEPOSITS

CURRENT DEPOSIT TO TOTAL DEPOSITS RATIO =

C0!!en

Ban$ Al%alah ?C,n)en i,nalA 1;;3 1;;> D;$BD;$AB; C1$I;A$BA;

De#,"i T, al 12B$A11$CB 222$.1;$ID De#,"i 1 A " 9a i, >;.6> 24.34 ?GA COMMENTS 'ere we can see that "ank Alfalah conventional ratio is more than that of Islamic ratio and it means that it must have more cash resources to meet daily cash re,uirement. ... ADMIN EP/ENSES TO DE/OSITS 9ATIO Admin Expense to Feposit (atio shows that how much percent ank is paying admin expense on each rupee : dollar of deposits. #ess ratio is etter. ADMIN EP/ENSES EP/ENSES TO DE/OSIT 9ATIO N ADMIN

TOTAL DE/OSITS Ban$ Al%alah ?C,n)en i,nalA 1;;3 1;;> Ad&in E-#en"e T, al De#,"i " 9a i, ?GA C,&&en 2$DAA$D.; 12B$A11$C B1 1.;4 " 1$.1.$I2. 222$.1;$I DA ..L3

"ank Alfalah Islamic ratio is etter as compared to Alfalah conventional which a etter sign is. .1. ADVANCES TO DE/OSIT 9ATIO

 Advances to Feposit (atio shows that how much percent ank is lending advances from availa le deposits. 9he more this ratio$ its etter. ADVANCES TO DE/OSIT 9ATIONADVANCES DE/OSITS Ban$ Al%alah ?C,n)en i,nalA 1;;3 1;;> Ad)an'e 11C$CD1$I1 CC$B.1$1II " I 12B$A11$CB 222$.1;$ID De#,"i " 1 A 9a i, 46.>4 >2.34 ?GA C,&&en " 9he advances to deposit ratio of "ank Alfalah Islamic is etter than that of /onventional and it also a good sign .2. DEBT 9ATIO De@ 9a i, measures the company=s degree of inde tedness y showing the proportion of orrowed funds used to finance assets. De@ 9a i, is found y dividing 9otal #ia ilities y 9otal Assets. 9he L,(e! this ratio$ the etter.

DEBT 9ATIO N TOTAL LIABILITIES

TOTAL ASSETS Ban$ Al%alah ?C,n)en i,nalA 1;;3 T, al Lia@ili ie" T, al A""e " 9a i, ?GA 11B$;A.$I;I 1;1$C.1$;.1 ;.L5

1;;> 21I$C1B$DDA 21C$.1.$AB. ;.L5

C,&&en " 9he Fe t ratio is favora le if it is less than 1 so we can say that the de t ratio of "ank Alfalah is etter.

Analysis *he debt to e"uity ratio is %ery hi!h 'or Bank Al'alah. *he ratio tells us that /reditors are 0ro%idin! 67.89 'inan/in! 'or ea/h 4 bein! 0ro%ided by shareholders. :reditors would !enerally 0re'er this ratio to be low. *he lower the ratio; the hi!her the le%el o' 'irms<s 'inan/in! that is bein! 0ro%ided by shareholders. So Bank Al'alah should try to redu/e this ratio be/ause normally =5165 is /onsidered to be best. =5> debt 'inan/in! and 65> e"uity 'inan/in! .3. 9ET89N ON EQ8ITY CA/ITAL 9ATIO (eturn on E,uity /apital (atio shows that how much profit : interest shareholder=s e,uity is generating after taxa le income.
RETURN ON EQUITY CAPITAL RATIO = NET PROFIT AFTER TAX EQUITY CAPITAL

Ban$ Al%alah ?C,n)en i,nalA

1;;3

1;;>

/!,%i 1$IB1$BCB 1$AI2$IB1 A% e! TaEC0i * 1$.DB$IA2 D$A.C$ID. Ca#i al 9a i, .2.65 1>.14 ?GA C,&&en " 9he ratio of "ank Alfalah /onventional in year 2II; is etter as compared to all others. -hile on the other hand "ank Alfalah Islamic=s ratio is negative this is due to loss suffered y "ank in year 2II1 that is not a good sign .>. Di)idend #e! "ha!e 7,!&0la : ;>: ;3: .DI$III$III$ .II$III$III ;II$III$III 2;I$III$III Di)idend #aid N, ,% "ha!e" N..1 N1

C,&&en ": The di)idend #e! "ha!e ,% Ban$ Al%alah ha" de'!ea"ed a" ',&#a!ed , #!e)i,0" *ea! i.e. %!,& 1 , ..1 11. /oncluding remarks for Analysis 12. ! servations !rgani&ation 1.. a out any Filemmas faced y

"rief (ecommendation for improvement

11.

/onclusion:

0A/(A$ a premier rating agency of the country$ has rated the ank KAA= 5dou le A8$ Entity (ating for long term and A1W 5A one plus8 for the short term. 9hese ratings denote a very low expectation of credit risk$ strong capacity for timely payment of financial commitments in the long term and y highest capacity for timely repayment in the short term$ respectively. 9he ratings of first and second and third unsecured listed and su ordinated 9>/ issues of 0E( D;I million$ 0E( 1$2;I million and (s.1$.2; million have een maintained at AA6 5Fou le A minus8.