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BANK ALFALAH LIMITED

MBA (FINANCE)

Submitted in partial fulfillment of the requirement


For the degree of Master in Business Administration
At
Department of Business administration
University Of Gujrat
G.T. Road Campus, Gujrat

HE IS ONE ALLAH,
THE CREATOR, THE INITIATOR,
THE DESIGHNER
TO HIM BELONGS THE MOST
BEAUTIFUL NAMES,
GLORIFYING HIM IS EVERYTHING
IN THE HEAVENS AND EARTH,
HE IS ALMIGHTY, MOST WISE.

TABLE OF CONTENTS
CONTENTS
Acknowledgement
Dedication
Executive Summary
Introduction
Bank Alfalah Objectives
Branches Network of Bank Alfalah
Nature of the Organization
Vision of Bank Alfalah
Mission of Bank Alfalah
Core Value/Groups
Feature and Finance Policy
Departments
Funded and Non Funded Facilities
Exports and Imports
Work done by me
Introduction of the branch of Bank Alfalah in which I worked

1st Week Of Internship


Account Opening

2nd Week Of Internship

Clearing Department
3rd Week Of Internship
Cash Department
4th Week Of Internship
Token Department
5th Week Of Internship
Credit Department
6th Week Of Internship
Collection of Bills
Learning as an Internee
Swot Analysis
Recommendation
Coclusion
Reference

ACKNOWLEDGEMENT

First of all I would like to thank ALLAH, without who it would have
been impossible for me to reach where I am at the moment. I
have completed this report with the help of a lot of people and I
would like to thank all the people who helped me out for the
completion of my report and for helping me out regarding many
problems which I faced during the internship tenure. It is only due
to divine help and courage that I am able to do all , and all the
people at BANK ALFALAH LIMITED, who helped me to collect
information, which was necessary for the completion of this
internship report.
I would also like to thank my family who helped me a lot in the
ups and downs of my career.

I dedicate my work and all efforts to my PARENTS and respected


TEACHERS who taught and hold my hands on every step of my life.

Executive Summary
Following privatization, Bank Alfalah emerged as new identity of
Habib Credit and Exchange Bank with a revived purpose and
commitment. Charged with the strength of Abu Dhabi consortium
and under the leadership of His Highness Sheikh Nahayan
Mabarak Al-Nayayan, the bank has already made significant
contributions in building and strengthening both corporate and
retail banking sector in Pakistan.
Designing the product portfolio of bank in response to the
customers preferences, the product like Royal Profit, Royal Patriot
and Royal Custodial are prime examples of quality and innovation
providing timely banking opportunities to the customers of bank.
Assessment of the needs and wants of the customers is an
ongoing process at Bank Alfalah, which helps to continually
develop new products and services. To continuously offer
courteous, professional and advanced banking solutions, the team
of bank has recently been rejuvenated by going though training
programs with a focus on information technology.
To make their banking solutions become accessible to more and
more people, they have embarked upon a rapid expansion
program, aiming to provide a networking that makes the services
available to any of their customers in all the major urban centers
of Pakistan- with a view to go international in the near future.
With their key indicators of progress already soaring to new
heights, the bank is committed to dedicate all its energies,
resources and time to bring higher value and satisfaction to their
customers, employees and shareholders.

The graph of bank is going up and up every year. The ratio of


profit is increasing at good percentage. The bank is serving the
people at high level of standard by going according to the
whishes of the customers.

Commercial Banking Scenario in Pakistan


At the time of independence in 1947, there were 38 scheduled
banks with 195 offices in Pakistan but by December 31, 1973,
there were 14 scheduled Pakistani commercial banks with 3,233
offices all over Pakistan & 74 offices in foreign countries.
Nationalization of Banks was not done 1 st January 1974 under the
Nationalization act 1974, due to certain objectives. But it had
negative effects on efficiency of the banking sector afterwards a
privatization Commission was set up on January 22, 1991, the
commission transferred many banks to the private sector i.e.,
MCB & ABL. The government approved & permitted the
establishment of 10 new private banks in 1991;hence many new
private banks have incorporated, since then, BANK ALFALAH in
one of the namely established private scheduled banks in
Pakistan.

Introduction to Bank Alfalah


Bank of Credit & Commerce International (BCCI) was a Pakistan
based bank, established by Mr. Agha Hassan Abdi from UBL, in
association with U.A.E and Europe. BCCI has its branches in 74
different countries of the world. It had its 3 branches in Pakistan.
In 1991, the BCCI was banned, when is 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. Therefor, the bank was closed
due to international pressure. Then, its 3 Pakistani branches were
taken over by the Government of Pakistan, which were named as
Habib Credit and Exchange Bank (HCEB) and these were working
as subsidiary of Habib Bank Limited.
Following the privatization in July 1997, Habib credit and
Exchange Band assumed the new identity of Bank Alfalah on
February 25, 1998. It is now Abu Dhabi based bank as the family
of Sheikh Nahayan Mubarik Al-Nahayan purchased 70% of its
shares and 30% shares remained with Habib Bank on behalf of
Government of Pakistan.
It has its 18 branches in 8 cities of Pakistan. The Multan branch
has recently been opened in May 1999. It is not listed on any
stock exchange of Pakistan.
Charged with the strength of Abu Dhabi consortium, and under
the leadership of His Highness Sheikh Nahayan Mabarak AlNahayan, Minister of Higher Education and Scientific Research,
Government of Abu Dhabi, and a prominent member of Royal
Family, the bank is energized with the vision, envisaging the
development of various sectors in Pakistan.

Mission/Objectives
Edge on competitors.
High profits.
Expansion of strong structure.
Variety of Products.
A good banking standard.

Bank Alfalahs Slogan


Lets Look Ahead Towards a Brighter Future. Together.

Bank Believes
Every door leads to our customers.
The legacy of leadership stands as our guiding light.
The strength of chain relies on the strength of each link.
A keen ear is a key to understanding. Achievement is nothing
without target.
Time is our most valuable asset.
Performance is nothing without the ability to measure it.
Every drop counts.

Branches Network
Bank Alfalah has its 18 branches in 8 cities of Pakistan. Detail is
as under:

KARACHI
Main branch, B.A. Building, I.I. Chundrigar Road.
Cloth Market Branch.
Clifton Branch.

Shahrah-e-Faisal Branch.
Karachi (new Branch).

LAHORE
Kashmir Road Branch.
Gulberg Branch.
Defense Branch

RAWALPINDI
Mall Road Branch.

OTHER BRANCHES
Other Branches are in:
Sialkot
Islamabad
Peshawar
Multan
Faisalabad
Quetta
Sukkur

Hyderabad
Gujranwala
Now, Bank Alfalah is going to establish its branches in some
foreign countries. Hopefully, in Dhaka (Bangladesh) and Bahrain,
its branches will be opened in the year 2001. Some branches will
also be opened in European countries.

The Board
The list of Board of Directors of Bank Alfalah Limited is as under:
H.H. Sheikh Nahayan Mabarak Al-Nahayan.
Mr. Abdulla Naseer Hawalled Al-Mansoori.
Mr. Abdulla Khalil Al-Mutawa.
Mr. Omar Z. Al-Askari.
Mr. Naeem Iqbal Sheikh.
Mr. Ikram-ul-Majeed Sehgal.
Mr. Muhammad Saleem Akhtar.

The Core Group


In the core group, there are 2 committees, i.e.,
Board Advisory Committee.
Executive Committee.

Board Advisory Committee

Mr.
Mr.
Mr.
Mr.

Omar Z. Al-Askari.
Abdulla K. Al Mutawa.
Ganpat Singhvi.
Bashir A. Tahir.

Executive Committee

Mr.
Mr.
Mr.
Mr.
Mr.
Mr.

Mohammad Saleem Akhtar.


Ikram-ul-Majeed Sehgal.
Parvez A. Shahid.
Tanveer A. Khan.
Mohammad Yousaf.
M. Waqas Mohsin.

Auditors
A.F. Ferguson & Co.

Chartered Accountants.
ORGANIZATIONAL CHARTS

FEATURES
Bank Alfalah Limited is and established bank. It has some special
features with the help of those it is growing rapidly.

Good Work Environment


As the work environment plays a great role in this competition
age, so the bank has good work environment. All the people work
with cooperation; managers are so kind that each problem can be
discussed with them.

Efficiency
Employees at Bank Al-Falah are quite efficient. As Multan branch
is a new one, its employees have to bring their bank among the
list of good banks. Therefore, they work more than their working
hours and it is all according to their will. It also shows their
loyalty, commitment to organization.

Customer Services
All the customers are entertained individually. Same kind of
behavior and attention is given to all the customers.

Suggestions asked from Customers


Getting ideas for improvement from customer side is a new idea
and that is working very well in Bank Alfalah Ltd. All the
customers are asked to fill a suggestion form and the standards of
the bank are improved through them.

Employee Benefits
Employees are given the benefits like bonus, gratuity funds,
loans, increments, house rent, medical and conveyance.

Computerized Working Environment


In bank, all the work is done on computers. All the entries are
made in computer. Balance are fed into the computer. This
increases efficiency of the bank.

Share Capital
The authorized capital of Bank Alfalah is of Rs. 1000 Million
(100,000, 000) Paid-up capital is of Rs 600 Million (600,000,000)
ordinary shares of Rs.10 each issued for cash.

Products
Prioritizing its product portfolio in line with its corporate and
consumer needs and wants the bank is committed to develop
products that give more value to its customers in both the
sectors.
Following their trend of bringing value added products and
services to their customers the bank has present Royal Group,
Royal Profit and Royal Patriot.

ROYAL GROUP
Royal Group is a joint investment plan that allows individuals to
invest money collectively and earn higher rate of profit.

Deposit Amount

Rate

100,000-999,999

9.50 %

1,000,000-9,999,999

9.70 %

10,000,000 and above

10.00 %

ROYAL PROFIT
It is the profit obtained by individuals on their deposited amount.

Deposit Amount

Rate

50,000 to 999,999

9.00 %

1,000,000 to 9,999,999

9.50 %

10,000,000 & Above

10.50 %

ROYAL PATRIOT
It is similar to term deposit. In term deposit one get no benefit of
profit when he withdraws his money before maturity date. But in

case of Royal Patriot if one withdraw his money before the


maturity date, he can get the benefit of profit. The profit rates for
different periods are following:

Duration

1Month 3Months 6Months 12Months 2Years

Amount

Rate

Rate

Rate

Rate

Rate

25,000-999,999

8.00 %

10.00 %

10.50 %

11.00 %

11.00 %

1,000,000-4,999,999 8.10 %

10.10 %

10.60 %

11.10 %

11.25 %

5,000,000 & Above

10.25 %

10.70 %

11.20 %

11.50 %

8.20 %

FINANCE POLICY
Bank Alfalah finance on short term basis only against current
assets to its customers in both corporate and consumer sectors.
They dont invest too much in fixed assets. Maximum credit for
short term is Rs. 50 Millions for one party, they dont go beyond
five years financing.

FINANCING SCHEMES
The bank has introduced many financing Schemes such as Term
Finance & Royal Personal Finance. The bank has recently
introduced a Car Finance Scheme.

Royal Personal Finance


This is the facility for individuals to finance their domestic
requirements such as purchase of household equipments,
computers, funding of education, marriage, planning a holiday,
payments of credit card bills, other liabilities or any other
personal requirement.
Facility Range Minimum Rs. 50,000 Maximum Rs. 500,000
Tenure From 1 to 3 years.

Maximum Loan Entitlement (Approximately)


Tenure

1 year

2 years

3 years

Factors

0.09168

0.04993

0.03615

ALFALAH CAR
Its a scheme that enables one to own his desired car at easily
affordable and flexible installments with a minimum down
payment and insurance.

Salient Features
Lowest Financing cost available in the market
Tenure of 1 to 5 years as per individual requirement
Quickest processing

Minimum processing charges: Rs. 3000 payable once


Down Payment requirement of 25%
Repayment through monthly installments
Lowest Insurance
insurance companies

rates

available

from

banks

approved

Monthly Installments
Monthly Installments for Alfalah Car can be calculated by
multiplying Banks financing amount with the following factors:

Periods

Factors

For 12 months

0.09072

For 24 months

0.04962

For 36 months

0.03609

For 48 months

0.02944

For 60 months

0.02553

Eligibility Criteria
All Businessmen, Corporate Employees, and other salaried or selfemployed professionals having net take home income in excess of
three times the monthly installment.

Account opening Department


Borrowing funds from different sources has become an essential
feature of todays business enterprises. But in the case of bank
borrowing funds from outside parties is more vital because the
borrowed capital of a bank is much greater their own capital.
Banks borrowing is mostly in the form of deposits. These deposits
are lent out to different parties such deposit creation is done
through open an account in the bank.
The Bank does not make payment of a cheque bearing a sixmonth or older date. If an account is not operated in six months, it
is called Dormant Account.

Types of Account
1. Current Account
2. Saving Account
3. Notice Deposit
4. Term Deposit

Current Account
There is no interest on these accounts. It is only for transaction
purposes. They paid on demand. Where a banker accepts, paying
all checks drawn against him to extend of the balance in the

accounts. As there is no profit paid on this account, it is also


called checking account because cheque can be drawn on it.
Current account is mostly opened for business. The minimum
balance requirement for opening the current account is Rs. 1000.

Saving Account
The purpose of this account is to introduce the habit of saving
individuals in the neighborhood. The profit on saving accounts is
paid on the basis of profit and loss sharing at 9 % six monthly. The
minimum balance requirement for opening the account is
Rs.5000.

Notice Deposits
Notice Deposits are kind of fixed deposits. The minimum balance
requirement for opening the account is Rs. 5000 and payment is
drawn on maturity of the specific period.

Notice deposit is of two types.


One for which a prior notice of 30 days and is required from the
customer before withdrawing deposited amount and for which
rate return is 6.10%.
Second for which a prior notice of 30 days and above is required
from the customer before withdrawing deposited amount and for
which the rate of return is 7.50 %.

Term Deposit
A term deposit is a deposit that is made of a certain period of
time. At the end of specific period the customer is allowed to with
draw the principal amount. The rate of return of this account
varies from 8 % to 13 %. The term deposit account varies from
one month to 5 years and the minimum balance requirement is
Rs. 5000.

Profit Calculation Methods


Daily Product Basis
Deposited Amount Rate of return.
365 (No. of days in a year)
Average Month Balance
Sum of daily end Balance Rate of return / No. of days in month
Minimum Month Balance
Any minimum balance during the month is taken for calculating
profit
Saving A/C (05 days _ Minimum Monthly Balance).
Minimum Balance of first 5 days is compared to the minimum
balance of the minimum balance of remaining 25 days. Less
balance is calculated for profit.

The amount of profit is given to deposits in three ways:


1. Cash payment ( only in case of term Deposits ). Or as per
customer requirement.
2. By sending bank draft to depositors home address or officers or
whichever is specified as mailing address.
3. The depositors account is credited at maturity.

Amount of Deposits & Other Accounts in 1999


Fixed Deposits Rs. 4,038,133,000.
Saving Deposits Rs. 8,734,265,000.
Current Accounts Rs. 1,499,657,000.

Margin, Call & Sundry Deposits Rs. 158,708,000.


Deposits of Federal Government Rs. 1,389,710,000.

Particulars of Deposits & Other Accounts


In Local Currency Rs. 8,829,008,000.
In Foreign Currencies Rs. 6,991,465,000.

Total Deposits Rs. 15,820,473,000.

Account opening procedure


For the chequing account, there are different types of account
holders are required for all these types of account holders. The
operation/procedure requirement that is needed for Individual
Account differs greatly from the Joint Accounts proprietorship
A/C, Partnership A/C, Private Limited company A/C and Public
Limited Company A/C.

Individuals Account
When a single man or woman opens an account in his or her own
name and has the right to operate, it is called individual A/C.

Documentation
Copy of National Identity Card.
Proper Identification ( Introduction ).

Operation
The person place in the type of account and type of operation
required in the account opening form.
He/she fills in part 1 of the form, a fix his/her either two of four
similar signature ( or thumb expression in the signature space )
and get it introduced and signed by a person who already has an
account with the bank and write his account number in the
specific rows in a specific space.
The person fills his or her father, mother, husband/wife or any
other relatives name, his/her address, phone number, his or her
sign to certify this requirement. This requirement is needed
because in his/her absence bank can have correspondence with a
specific person.
The person deposits the initial amount for opening account onto
the cash counter. The person put his signature on form on two
places in authorized Signature and fills in the Title of Account
space by writing his name.
If the person put his signature in Urdu or any other language
other than English, he signed a Vernacular Form.
The next day is opening of account

Joint Account
When two or more persons neither partners nor, trustees, open an
account in their name is joint account.

Documentation
copy of N.I.C card.
Identification ( Introduction ).

Operation
The person checks the type of account and type of operation
required in the respective box on the form.
The person fills the Part-1 and Part-II
Signature of box or all persons are obtained on the formed in the
area specified for signature.
In the title of account space names of all persons maintained.
Account holders specified in the form that they will operate the
form singly or jointly.

Proprietorship Account
When the owner of the firm operating singly, open an account in
his firm name.

Documentation
Copy of N.I.C.
Status of the firm.
Copy of Sole Proprietorship Declaration.

Operation
All operation remains the same, except that the firm name is
written in title of account area and Signature of the proprietor in
the specified area.

Partnership Account
The account is opened in the firm name and all partners
designate one or two persons to act behalf of the partnership firm
all acts of the firm jointly and serverly.

Documentation
Copy of N.I.C of all partners.
Status of the firm ( In case of registered firm ).
The attested copy of Partnership Deed (in case of registered firm
).
Operation of the A/C (as per deed).
Third party Mandate.
Letter showing the authority of one or more partners to act on.

Operation
All other requirements are same except that all partners dully sign
the form, cards are signed by all of those partners who will act on
behalf of the firm.

Private Limited Company account


Documentation
N.I.C of all partners.

Articles and Memorandum of association.


List of directors.
Resolution of Board of directors.
Certificate of Incorporation Form 29 (B) (Lasted Copy).
Company secretary will certify all these copies.

Operation
The person authorized in the resolution of the board of directors
put their signature on the S.S Card.
Next of Kin requirement is not need in a case of Private Limited
Company. Other procedure is same.
After completing each and every formalities are signed by all
partners who will act on behalf of the firm.

Pubic Limited company account


Documentation
Copy of N.I.C of all partners.
Articles and Memorandum of association.
List of directors.
Resolution of Board of Directors.
Certificate of commencement of Business.

Operation
Operation is same as Private Limited Company

Responsibilities of Account Opening


Department
Documentation Intact.
Proper Introduction.
ChequeBook Issuing.
Receiving Inward cheques.
Account Closing.
Every Day Posting.

ACCOUNT CLOSING
When a customer wants to close his account because of any
reason, he has to give a hand written application to the head of

the Operations Department to close his account, plus remaining


leaves of the chequebook.
The Operations Manager first verifies the signatures of account
holder, then closing is done from the registers on the computer
where the account was opened. In the file of account holder, his
account opening form is also crossed.
For this closing, a fee of Rs. 150 is charged in Bank Alfalah.

Cheque Book Issuance


When the account is opened, then, the customer is given a
cheque book to sign upon and en cash money. It is proceeded as
under.

PROCEDURE
All the account opening formalities must be completed before,
issuance of cheque book. Particulars of the chequebook
requisition should be completed containing title of account,
account number, type of currency, number of leaves and
signature of the customer. Signature of, the customer are verified
on the requisition.
If customer is unable to collect his chequebook, then he can give
authority to the 'third person to collect his cheque book' on his
behalf by signing on the back of .the requisition. In such case, the
particulars of the third person are required like name of the
person, NIC number and signature of that person on requisition
and chequebook issuance register.

Chequebook is delivered to the customer and his signature is


taken on the cheque book issuance register, cheque serial
number is entered in the system (Bank Excel).
Stock of Cheque books are balanced at the end of each day and
kept under safe custody.
Earlier in the banks were charging a fee for issuance of cheque
book, but now whenever a new account is opened, the account
holder is issued a cheque book free of charge.

Bank Alfalah issues the following chequebooks.

Saving account - 25 leaves


Current account - 50 leaves
Current account - 25 leaves
Foreign currency $ - 10 leaves
Foreign currency - 10 leaves

Loose cheques are also issued in some cases


Receiving Inward cheques
Another responsibility &function of Account Opening Department
is to receive Inward cheques for collection of other banks. These
cheques are sent to clearing official who clears these cheques at
SBP from other banks.

Every Day Posting


At the end of each day, Posting of cheque books is performed. The
account opening department makes credit vouchers of excise

duty and provincial tax on chequebook leaves, and posts it in the


company.

CASH DEPARTMENT
Mr. Aqeel and Mr. Jawad helped us in learning about Cash
Department. Cash Department performs two main functions:
1. Cash Deposits
2. Cash Payments

CASH DEPOSITS
Cash receiving officer receives cash along with pay-in slip from
the customer. He checks if the deposit slip is properly filled up
containing title of account, account number, date and amount in
word and figures. He also verifies signature. Detail on both
counter file and cash receipt voucher should be the same.
Cash is received by the cash receiving officer, twice counted and
matched with the deposit slip. The cash details are written on the
back of the deposit slip and are also entered in cash receiving
register. Cash received stamp is affixed on the face of the deposit
slip along with the signature of the cash receiving officer.
Deposit slip and cash receiving register is given to the officer in
cash department. Again proper scrutiny is made by the officer
cash department both on cash receipt and cash receiving register.
Officer cash department signs both the deposit slip and register;
Deposit slip is credited and posted in the concerned account in
the system.
Counter folio is given to the depositor as receipt. One
consolidated cash debit voucher is posted in the system to
balance the cash.

PAYMENT OF CHEQUES
The process for payment of cheques for local and foreign currency
is same. First the customer presents the cheque or holder to
branch and the particulars of cheque are properly filled in.
Signature of the holder is taken on the back of the cheque.
Cheque handed over to the officer cash department for scrutiny
where officer checks the date, amount in words and amount in
figures, payee's name crossing if any, account number, cheque
serial number, any material alterations, endorsements and
signature of the customer.
Account is debited and then the officer cancels cheque. It is
posted in the system and posting stamp and number is affixed on
it. Cheque is handed over to the cash payment officer for
payment. One more signature on the back of the cheque is taken
from the holder to match with the first one, and then cash is paid
to the payee. Cash detail is written on the back of the cheque.
Cash paid stamp is affixed on the face of the cheque. Entry is
passed in the cash payment register.
If the payment is of Rs. 50000 the cashier can make it on its own.
If the amount is greater than Rs. 50000 to Rs. 100,000 the cashier
and cash deposit Incharge will verify the check and will sing it.
Then the payment will be made. But, if the amount is greater than
Rs. 100000 to Rs. 1000,000 the manager operation will also verify
the check and sign it so that the payment can be made. If the
amount is greater than Rs. 1000,000 the Branch Manager
Will also verify the check and sign it. Otherwise the payment will
not be made.

CLEARING DEPARTMENT
In clearing, Mr. Anees remained so helpful. The clearing process
majority involves receiving the cheques and making payments.
This process can be inward or outward.

CLEARING PROCESS (INWARD/OUTWARD)


Here the local cheques are received that are drawn on BAF. All the
cheques are received on one counter alongwith the paying slips
duly filled in properly containing particulars of cheques and
account harder. Counter folio of paying slip is handed over to the
customer by putting stamp for cheque received for collection for
Bank Alfalah' on it duly signed by officer. These are then entered
in clearing register and cheques for collection, are entered in OBC
register and handed over the Bills Department for collection.
Clearing officer checks and verifies title of all the cheques
deposited by the customers to confirm the good title of the
cheques. Special crossing, endorsement and clearing stamps are
affixed on the cheques. Cheques of each bank are sorted and
arranged branch wise. All the cheques are then entered into the
clearing system of the bank
Next morning, these cheques are delivered to the respective
banks in clearing house of State Bank of Pakistan between 9:00 to
9:30AM. In the same manner, other banks present their clearing
drawn on Bank Alfalah. After proper scrutiny of cheques,
verification of signatures and confirmation of balance in the
account, the Officer Cash Department pays these cheques by
canceling and posting them in the system.
Second clearing is called at 2:30PM to check the fate of the
cheques presented to other banks in the morning. If any cheque is
to return, that is delivered to the same bank in second clearing. In
the same manner, if any cheque presented by Bank Alfalah in first
clearing is returned, they receive it and once again give schedule
of clearing figure to the Officer Clearing House SBP containing
number of cheques and their amount delivered and received
unpaid.

Remittances Department

The need of remittances is commonly felt in todays business. The


main function of remittance department in a bank is the transfer
of funds.
Mr. Hassan in Bank Alfalah is the officer for Remittances
Department. In remittances, following banking instruments are
used:
1. Pay order
2. Demand draft
3. Telegraphic transfer
The procedure for dealing with all these under local as well as
foreign currency in BAF is as under.

1.Pay Order
A pay order is a written order issued by a bank, drawn upon &
payable by itself, to pay a specified sum of money to or to the
order of a specified person.

Procedure for Pay Order


Application form is given to the customer to fill. Two signatures
are taken on the form one for request and other for receiving the
instrument. All the particulars of application form are checked and
bank commission charges and withholding tax is written on the
top of the application form. If the customer is maintaining his
account with the branch, he can give cheque for total amount of
instrument plus bank charges. Cheque and application from is
then given to the officer Cash Department for the payment of
cheque.
After proper scrutiny, Officer Cash Department posts the cheque
and signs the application form in token of payment received. If
the customer wants to pay cash, then cash is deposited by the
customer along with the bank charges and withholding tax.

Application form is then given to the Remittances Incharge for


issuance of instrument. He enters all the particulars of the
application form in the system and computer gives an Auto
Control Number to the instrument. Printout is taken on the block
of payment Order. Two authorized officers of the branch then sign
it. Instrument is then protectographed, and given to the customer.
When instrument is presented for payment, it is posted in the
system and canceled by the Remittances Incharge after proper
scrutiny.

2. DEMAND DRAFT
A Demand Draft (DD) is an instrument, which is drawn by one bank upon another
bank for a specific sum of money payable on demand. It is made by the bank,
given to the purchaser against cash or cheque.

Parties Involved in DD:


1. Purchaser
2. Issuing Branch
3. Drawee Branch
4. Payee
Procedure for Issuing DD
Issuance procedure of Demand Draft is same as of pay Order.

PROCEDURE FOR DEMAND DRAFT PAYABLE


When DD advice is received, signatures of both signatory on the
DD are verified. All the particulars of the DD payable are entered
in the system. Prints out of vouchers (DD payable) are taken.
When instrument is presented for payment, signatures of the
attorneys are verified on DD and after proper scrutiny, it is posted
in the system and canceled by the Remittances Incharge.

3.Telegraphic Transfer
Sometimes, when the remittance is urgently required by the
remitter, Telegraphic Transfer (TT) is issued . TT may be issued to
general public on their written request and against the value
received.

Procedure for Issuing Telegraphic Transfer


Application form is given to the customer to fill. Two signatures
are taken on the form one for request and other for receiving the
instrument. All the particulars of application form are checked and
bank commission charges and withholding tax is calculated and
written on the top of the application form (if customer is tax
payer, he can give tax exemption certificate). If the customer is

maintaining his account with the branch, he can give cheque and
application form is then given to the officer for the payment of
cheque.
After proper scrutiny, Officer Cash Department posts the cheque
Telegraphic Transfer message is written in the telex containing
name of transferring branch, name of receiving branch, date,
amount, currency, payees name and account number or
identification if any, payer name and payment advice. A test
number is given to the T. T. message for receiving branch. This
message is then sent through telex to the receiving branch
followed by a T.T. advice. The customer is confirmed that T.T. has
been sent.

Procedure for T. T. Payable


When T.T. message is received, tested number on the T.T. is
checked and verified. Tested number is then written in the
register and signed by the holder of test keys for officer record.
All the particulars of the T.T. payable are entered in the system.
Payment instruction on the T.T. message are followed if it is pay
and advice it will be paid through TTR on the cash counter or
through clearing and if it is credit and advice,. If TTR is presented
for payment, signatures of the authorized officers are verified on
TTR and after proper scrutiny, it is posted in the BPG and
canceled by the remittances Incharge.

Procedure for Foreign Demand Draft Issuance:


Application form is given to the customer to fill the same. Two
signatures are taken on the form, one for request and other for
receiving the instrument. All the particulars of application form
are checked and bank commission is charged, which is US$ 5/- for
each amount of FDD.
Cheque is received from the customer for total amount of FDD
plus bank commission. Cheque and application form is then given
to the Office Cash Department for the payment of cheque.

After proper scrutiny, Officer Cash Department posts the cheque


and signs the application form, to assure that payment is
received. Cash Receiving Officer receives cash on the application
form along with the bank charges. Application form is then given
to the Remittances Incharge for the issuance of the instrument.
A control number is allotted to the instrument from FDD Register.
Instrument is completed by putting all the particulars in it and
signed by two attorney holders. Instrument is then handed over to
the customer. Exchange Transaction Credit Advice (ETCA) is sent
to the Head Office for the reimbursement. Copies of the FDD and
ETCA are kept in the record of the bank.

PROCEDURE FOR FOREIGN TELEGRAPHIC


TRANSFER ISSUANCE
Application form is given to the customer to fill the same. Two
signatures are taken on the form one for request and other for
receiving the instrument. All the particulars of application form
are checked and bank commissin is charged, which is US$ 15/(flat rate) for each amount of FTT.
If cheque is received from the customer, it is taken for total
amount of FTT plus bank commission. Cheque and application
form is then given to the Officer Cash Department for the
payment of cheque.
If the customer wants to pay cash, it is deposited by the customer
on cash counter. Cash Receiving Officer receives cash on the
application form along with the bank charges. Application form is
then given to the Remittances Incharge for the issuance of
instrument
This message is then sent through telex to the receiving branch.
Customer is confirmed that FTT has been made. Exchange
Transaction Credit Advice (ETCA) is sent to the Head Officer for

the reimbursement. Copies of the FTT and ETCA are kept in the
record of the bank.

Collection
All the cheques under collection are called cheques under
Collection in Bank Alfalah Limited. There are two types of bills for
collection:
1. Outward Bills for Collection
2. Inward Bills for collection

1.OUTWARDS BILLS FOR COLLECTION


All the cheques are received on one counter along with the paying
slips duly filled in properly containing particulars of cheques and
account holder. Counter folio of paying slip is handed over to the

customer by putting stamp for cheque received for collection for


Bank Alfalah on it duly signed by officer. These cheques are
scrutinized and cheques for local clearing are separated from
OBCs.
Cheques for local clearing are entered in Clearing Register,
whereas cheques for collection are entered in OBC register and
handed over to the Bills Department for collection. OBC number is
allotted to the cheque from OBC register. Special crossing and
bank endorsement stamps are affixed on the cheque.
OBC schedule is attached with the cheque and dispatched to the
main branch of that city for collectionIf DD is received against
OBC, it is presented in the clearing for collection. If IBCA is
received from the branch for the payment of OBC, certain
vouchers are posted in the system.

2. INWARD BILLS FOR COLLECTION


If any other bank sends a cheque of Bank Alfalah Limited, it is
Inward Bill for Collection. Bank Alfalah remits money after
checking the balance of the customer account.
The process of collection starts when the cheques of Bank Alfalah
Ltd. Are received from other banks. Then these cheques are sent
to the Head Office Karachi, which sends the cheques to SBP for
clearing and get the confirmation of cheque and credit advice.
Main activity of clearing is performed by Head Office, which
contacts other banks through SBP.

BILLS FOR COLLECTION IN 1999


Payable In Pakistan Rs. 22,092,000
Payable Outside Pakistan Rs. 1,964,738,000
Total Rs. 1,986,830,000

Credit and Advance Department


Credit and Advances Department deals with the provision of loans
(credit facility) to the customers. At BAF, credit is given on the
basis of a policy made by Board of Directors and is called Credit
Policy. This policy statement sets out the underlying principles
from which the BOD will determine the commercial credit activity
of Bank Alfalah Ltd. The committee to approve direct and review
commercial lending of Bank and to ensure that credit policies are
adhered to and the credit operation is conducted in an efficient
and effective manner.
Purpose of this policy is to set out the credit policies for the boar,
which will be implemented by the Credit Committee. The policies
are described under the following readings:
Credit principles
Portfolio limits
Approval
Administration
Monitoring and review

1. CREDIT PRINCIPLES
It includes principles to be adopted for lending authority,
approval, monitoring and control on a basis consistent with Bank
Alfalah Ltd.
The operational objectives and business strategies regarding
objectives, structure, performance and administration are also
included.

2. CREDIT PORTFOLIO
These are the guidelines set down by Credit Committee regarding:
Total facilities
Term facilities

3. CREDIT APPROVAL
When the terms and conditions are set and both parties are
agreed, the Credit committee makes approval for the credit.

4. CREDIT ADMINISTRATION
The credit application when handed over to Credit Administration,
then they critically examine securities given by client to bank
against credit facilities. Credit Administration keeps liaison with
lawyers, surveyors, valuators and other corporate bodies.

5. CREDIT MONITORING
The client can present his own account insurance policy as
security for credit. When he presents his own account as security,
his account is blocked for the same amount, which the bank is
granting him. When the facility is adjusted at that time, the
blocking is released from the account. Clients can also use third
partys account for getting credit. Shares can also be kept as
security in this case these are verified and duly signed. These are
kept separate to avoid theft. The company whose shares are used
is informed that its shares are in the custody of the bank.

Advances
Bank Alfalah Limited, Abdali Road Multan, provides the following
facilities in Advances Department:
Funded facilities
Non-funded facilities

FUNDED FACILITIES
These are the facilities in which funds like cash fund are included.
LPO
Goods purchased on behalf of bank and provided to customers.

PRE-SHIPMENT
It provides to prepare consignment. Maximum tenor is about 150
days. Profit may be 16% per annum. The repayment is generally
from sale proceeds. This is for preparation of consignment.

POST SHIPMENT
During export process, funds are required for preparation of next
consignment that is provided by post-shipment facility. Maximum
tenure is 150 days. Profit rate is about 15% per annum.

NON FUNDED FACILITIES


These facilities are on:
Letter of Credit
Letter of Guarantee
L/C is of two types:
1. Sight L/C for 90 days
2. Usance L/C for 120 days

CREDIT CARDS
Bank Alfalah has no credit card facility but, Inshallah, in March the
credit cards will be issued by bank
ADVANCES IN 1999
Rs. 10,327,324,000 All in Local Currency

Foreign Exchange Department

Foreign Exchanged Department deals within exports and imports.


Mr. Saleem at BAF supervises it. The bank acts as exporter as well
as importer bank for different parties who are in the business of
export and import.

Exports
EXPORTER
When the bank becomes the exporter bank for a party then the
market stability, reputation, financial position of the exporter is
first of all checked.

DOCUMENTS TO BE ATTACHED FOR EXPORTS


Invoice
Bill of lading
Packing list
(a) Total quantity
(b) Net weight/carton
(c) Gross weight/carton
(d) Total net weight/carton
(e) Total gross weight
Bill of exchange (original or draft)
E-form: Initial document on which total export proceeding is
based. In this form , all the conditions are given, which are
necessary for exports.

Letter of credit: It is written agreement between importer and


exporter.
Beneficiary certificate
DHL certificate (TCS certificate)
Form M

FORM E
Certificate of Origin (Form A)
Government has provided facility to exporter in taking E-Form
from any bank and he can present it to any bank for negotiation.
Export Proceed Realization Certificate
SBP gives rebate to exporter against export after realization. It is
paid according to commodity wise and bill wise.
Claim period: 1 year.

Transport Document (Bill of Lading, Airway Bill)


When insurance is done by importer, C&F (cost and freight)
usually used.
FOB cost (free on board)

CIF (cost insurance and freight) when insurance is done by


exporter, CIF is used.
Tenor (At sight) immediate payment by importer after receiving
product.
Partial shipment: Product is sent partially.
Transshipment: Product is sent via any country

E-FORM CERTIFICATION
When export is done on C&F basis, so bank issues E-form
certification to exporter and he submits it to the custom officer
along with E-form certification to certify E-form.

FORM OF AUTHORIZED DEALERS CERTIFICATE


State Bank permits exporter to issue Bill of Lading in the favor of
E-form bank. But if requirement of L/C is to issue Bill of Lading in
favor of company then shipping company issues bill of lading in
favor of Exporter Company. Authorized Dealer Certificate is filled
for this purpose.

CERTIFICATE OF ORIGIN
This certificate shows that goods are from Pakistan.

COVERING SCHEDULE

If in covering schedule, it is given that please remit proceed to


our Karachi Office A/C no. 5740734881 with ABN (Amro Bank New
York), USA for onward credit to BAF Multan.

BENEFICIARY CERTIFICATE
If L/C requires some information as proof of anything from
exporter then exporter has to present beneficiary certificate for
that proof.

E-FORM
E-form has four copies:
1. One for custom officer
2. One for exporter
3. Triplicate copy for SBP
4. Duplicate copy for bank
Bank reporting or duplicate and triplicate is done by bank. Custom
Officer (date is given on the foot of form) should clear product.

PAYMENT FROM IMPORTER BANK


It is the choice of importer to open L/C from any bank and the
bank from which L/C is opened can also refer to some other bank
for payment. So bill of exchange is sent to referred bank and
other documents are sent to L/C opening bank.

SWIFT
It is network among all banks. No other institute can get involved
in it.

BILL OF LADING
Certificate from shipping company for loading documents. If
requirement of L/C is to issue Bill of Lading in favour of L/C
opening bank, then authorized dealer certificate will be provided
by bank in favor of L/C opening bank.

BANK KEEP IN RECORD


Covering schedule
Invoice
Packing list
AWB
Certificate of Origin
E-form
Normally bank keeps photocopy of all documents in record.
Negotiable documents (original documents).

IMPORTS
L/C is opened by the importer. There are two types of L/C.
1. Revocable
2. Irrevocable.

NECESSARY REQUIREMENT
If place of issue and port of loading is different on Bill of Lading,
then along with the stamp of shipment on board, vessel name and
port of shipment is written.
1) Issue date of Bill of Lading shipment on board.
2) There should not be cutting on bill of lading without
authentication.
3) Bill of lading should show capacity of agent. If bill of lading can
be taken by the agent of Importer Company, then his name
should be mentioned on bill of lading.
4) Original GSP should be presented.
5) If TT reimbursement is not acceptable, it means bill of lading is
necessary.
When documents are received for export, do enter into lodgment
register.

DOCUMENTS FOR IMPORT


Performa Invoice signed by importer
Category passbook copy attested by any bank
L/C opening application filled in by the customer
Import registration with export Promotion Bureau
Annexure
Verification of signature by S. S. Card
L/C issued on basis of L/C application form.
Insurance if covered by buyer.
Insurance cover note.
Insurance policy.

Account Department
Most important department of bank as it is concerned with:
Revenue
Expenses
Assets
Liabilities
These are the pillars of any business. This department is
supervised by Mr. Masood Ahmad. In this department, all the
vouchers that are posted during one day are sent to the Account
Department next day. These vouchers
already posted to
computer by the concerned department. So computer also sends

a report to the Accounts Department. The accounts Department


has to tell that all the vouchers are posted under the right head.
Amount, date, stamps, signatures all the requirements for
cheques and vouchers are fully checked.
If any kind of renovation or construction or rebuilding is done, all
is paid from the Accounts Department. Like petrol for the car of
EVP and VP, stationery charges, medical allowance, etc. are all
paid by this department.

Daily Customer Movement List


All the changes that are made in accounts of customer are shown
in the daily customer movement list. By using this list, people of
Accounts Department can prepare the vouchers.
Following activities are performed by Account Department:
Voucher preparation
Preparation of daily, weekly, monthly, and annual statement.
Budgeting and fixed assets
Employers benefit
Expenditure approval.

Work done by me at branch during internship


BAL branch in which I was working:
BANK ALFALAH LIMITED

Back Ground of Study:


As part of the university requirement for completing Master of
Business Administration of the students are required to undergo
six weeks internship in any organization. The internship is to
serve the purpose of acquainting the students with practice of
knowledge and experience.
This report is based on internship of Bank Alfalah and since it has
expended its network in wide sense, becoming the largest Bank
of the Pakistan It offers different products of services to its
customers.

Introduction of the branch of BAL in


which I worked
I started my internship in Bank Alfalah Limited. I completed my 6
weeks internship Program in Bank Alfalah Limited. Now
manager is really hard working and loyal manager. He maintains a
good relationship with his staff. This is a good opportunity for the
branch to do business with such kind of people there is also a
great competitive environment is not easy to deal with. The main
reason of banks existence is to accept the deposits of people who
have surplus money and lend it to those who need it for their
business.

LEARNING AS AN INTERNEE
Duties and Accomplishment
My duties at the bank were of different types. I was rotated in
different departments in different weeks. But my duties were
always supervised by the employees of BAL so that I do not
make any major mistake, as I was an internee and didnt go
through the training of three months, as all the employees of BAL.

1st Week Of Internship


Account Opening Department
I spent my first week in account opening department during my
internship, in this department; I gain the practical knowledge
about opening of account. In this department I had learn a lot.
Maintaining good relationship with the customer has polished my
interpersonal and intellectual skills and resolving customers
Problems give them a feeling that the Bank employees care for
them.

During my first week in the bank I did work in account

opening department. During my training in that department I was


taught that how to open the account of the customers in the
bank. That whenever a customer comes how he should be

explained about the types of account s and the benefits provided


in each account. My supervisor used to tell me how to fill the form
of opening account and which documents are required for the
opening accounts didnt have the opportunity to enter the
accounts open on daily basis in the software system because it is
very sensitive issue and I was not so much trained thats why I
used only to fill the forms and do stamping on them.
The first requirement for opening an account is to fill the account
opening form. First of all the customer will state the address of
branch where he is going to open his account. Then he will state
the title of account in which he will state his name. Then he will
have to select that which account he is going to open whether he
is going to open.

Individual account

Joint, sole proprietorship


Public Ltd.
Private Ltd account
Partnership
Others

In this department I learned the types of account; Documents are


required to open an account, procedure for opening an account
and the method of filling the opening account.
But in this department I could learn only the procedure of opening
of single & joint account.

Individuals Account
When a single man or woman opens an account in his or her own
name and has the right to operate, it is called individual A/C.

Documentation
Copy of National Identity Card.
Proper Identification ( Introduction ).

Partnership Account
The account is opened in the firm name and all partners
designate one or two persons to act behalf of the partnership firm
all acts of the firm jointly and serverly.

Documentation
Copy of N.I.C of all partners.
Status of the firm ( In case of registered firm ).
The attested copy of Partnership Deed (in case of registered firm
).

Operation of the A/C (as per deed).


Third party Mandate.
Letter showing the authority of one or more partners to act on.

Operation
All other requirements are same except that all partners dully sign
the form, cards are signed by all of those partners who will act on
behalf of the firm.

2nd Week Of Internship


Clearing Department
I also spent a week in clearing department after opening account.
I learned to fill the deposit slip of current and saving account in
this department. I also learned to fill the cheques in this
department. Clearing means to clear the cheque by making and
receiving payments. This is the case in which different banks clear
the cheques drawn upon each other.
There are different types of clearing:
Outward clearing
Inward clearing
Transfer delivery

3rd Week Of Internship

Cash Department
In cash department different kinds of facilities are given to the
customer such as: received cheques, pay cash, receive cash, ,
online transaction. Online service is provided by the bank to
transfer money from one account to another.Cash department
deals with the cash, which either comes in the Bank or goes out
side the Bank. Cash can be in any form of currency.
Having work in cash department I learnt how to accomplish
different tasks like deposit, credit card slips. I have counted
bundles of cash, sorted the cash and make their packets and
bundles again. If there is spoiled cash then it is sent to the head
office. Head office sent this to State Bank, which after checking it
burn the spoiled notes.

In cash department I learnt when we receive the cheques from


the customer, then we have to verify the signatures of the issuer.
The date of issue of cheque, signature and amounts are checked.
Cheque can be encashed after six months of its issue date. If that
period is over then the cheque is returned unpaid. There is a limit,
different officers verify up to different amounts. If there is any
problem in the signatures, then bank call the issuer on the phone
to confirm whether he draws the cheque or not. On the back of
the cheque there should be the sign of the issuer. If any other
person presented the cheque then he has to give a photocopy of
CNIC of issuer. The person who do not able to do signature, paste
thumb impression with copy of CNIC.
In cash department I also learnt how to identify original cheque,
this could save from frauds.

DEPOSITS
This is the major source of the cash inflow.

When someone

deposits the cash in the Bank in any currency, it means that the
cash is coming in the Bank.
Check following things to ensure:
Deposits slip date.

Amount in words and figure matches on deposit slip.


No unauthorized alternation is allowed on deposit slip.
Account details on deposit slip must match with the account
detail on application form in bank.
In case of any discrepancy

Advice the customer to rectify the error.


Authenticate the correction made by the customer.
If all the above information is correct:
Post the transaction in banking application.
Write transaction number on deposit slip.
Write cash value on deposit slip.

4th Week Of Internship


Token Department
In token department, token are issued for the encashment of
cheques

Demand draft, Telegraphic transfer, Mail transfer and

miscellaneous expanses voucher of bank before issuing term we


check the following
Date should be current or previous not advance.
Specimen Signature of account holder should there.
Signature of bearer should on backside of cheques.
Amount should be same both in figure and words.
After all the process, the entry of cheques would be posted on the
given register, which include token no. Code no. and amount.
After banking hours. Total amount on register would be tallied

with the cash department amount, that which has been paid. Any
cheques that is returned from the current department because of
any discrepancy, is debited from the total amount on the register
in token department.

5th Week Of Internship


Credit Department
I spent my 5th week in credit department and learned how loans
are being approved and how proposals are send to valued
customers. There are different types of finances and for them
there are different requirements like requirements of working
capital,

mark

up

rate

has

been

decided

and

clean

up

requirements has also taken into consideration. credit department


offers different products to its customers but I could only learn the
procedure of Advance salary and cash &

gold .Advances

department of a bank provides many facilities to various


individuals and businessmen against charging the interest from
them.

Credit and Advance Department


Credit and Advances Department deals with the provision of loans
(credit facility) to the customers. At BAF, credit is given on the
basis of a policy made by Board of Directors and is called Credit
Policy. This policy statement sets out the underlying principles
from which the BOD will determine the commercial credit activity
of Bank Alfalah Ltd.
Purpose of this policy is to set out the credit policies for the boar,
which will be implemented by the Credit Committee. The policies
are described under the following readings:
Credit principles
Portfolio limits
Approval
Administration
Monitoring and review

6th Week Of Internship


Collection of Bills
All the cheques under collection are called cheques under
Collection in Bank Alfalah Limited. There are two types of bills for
collection:
1. Outward Bills for Collection
2. Inward Bills for collection

1.OUTWARDS BILLS FOR COLLECTION


All the cheques are received on one counter along with the paying
slips duly filled in properly containing particulars of cheques and
account holder. Counter folio of paying slip is handed over to the
customer by putting stamp for cheque received for collection for
Bank Alfalah on it duly signed by officerwhereas cheques for
collection are entered in OBC register and handed over to the Bills
Department for collection.
OBC number is allotted to the cheque from OBC register. Special
crossing and bank endorsement stamps are affixed on the
cheque.

2. INWARD BILLS FOR COLLECTION


If any other bank sends a cheque of Bank Alfalah Limited, it is
Inward Bill for Collection. Bank Alfalah remits money after
checking the balance of the customer account.
The process of collection starts when the cheques of Bank Alfalah
Ltd. Are received from other banks. Then these cheques are sent
to the Head Office Karachi, which sends the cheques to SBP for
clearing and get the confirmation of cheque and credit advice.
Main activity of clearing is performed by Head Office, which
contacts other banks through SBP.

SWOT ANALYSIS
Strengths
Bank has a belief in customer service
Backed by strong Abu Dhabi Consortium
Customer give suggestion for the improvement of bank and
these suggestions are listened carefully.
Manager & EVP Mr. Asif A. Sheikh has good coordination with
staff members.
Environment is friendly.
Products are excellent
Expansion is consistent
Modernized banking (online + Internet)
Fully computerized, each department has to own PC.

WEAKNESSES
BCCI Image.
Mixed Culture
New Setup
No ATM facility is provided
No traveler cheques are issued.
Tokens are not issued to customer so the chances of doubling
are present.

No credit card facility is available.


Personal Lockers are not available.
No internal audit is held.
Staff is lesser.

OPPORTUNITIES
Information Technology.
Credit Card Facility
Internet Banking
Establishing Foreign Branches
Local Setup Expand

THREATS
Competition
Legal Reputation

Recommendations

Finally, We are giving some suggestions for Bank Alfalah Limited.


These suggestions are based on our experience with bank.
This is a routine practice that in order to give personalized
services to the customer, bank staff tries to fill all the columns of
AOE with their own handwriting, which is wrong. AOE must be
filled in by the customers. Bankers should avoid to fill in the AOE
because it can create problem if the address, title of account or
any other information provided by the customer has not been
written properly. Customer may be affected or he may claim that
this information was not provided by him, but if AOE is filled by
the customer then banker cannot be held responsible for any
incorrect information provided by the customer.
Under no circumstances chequebook should be given to the
customer if the account formalities are incomplete.
There are two officers involved in cash deposit process, which is
time consuming. Cashier should be given certain powers to
receive cash of US$, DM and L to provide prompt services.
Similarly, there are two officers involved in cheque payment
process, which is time consuming. Cashier should be given certain
powers to pay cheques up to Rs. 25,000/- to provide prompt
services.
Cheques, which are drawn on Bank Alfalah Branch and returned
unpaid in clearing, are not reflected in the Statement of Account
of the customers. These cheques must be reflected in the
accounts so that credibility of the customers may be assessed.
Tokens should be issued to avoid doubling.
Lockers, ATM, credit card, traveler cheques all these facilities
should be provided
to attract more customers.

Audit should be held internally. Rather there should be an Audit


Department in the branch to make audit on daily basis. This can

become so helpful as different banks are having this department


of their own.

Marketing Practices Adopted by Bank


Nowadays marketing of products is of prime importance for any
organization. In this dynamic environment, every organization has
its own Marketing Department, which is responsible for creating
the demand of its goods and services.
Nowadays banks also have their marketing departments, which
are responsible for creating demand of their products, i.e., their
deposit schemes and increasing the deposit of the bank.
Bank Alfalah has its own full marketing Department at the Head
Office, Karachi. This department prepares different deposit
schemes for its customers, time to time, in order to increase the
business of the bank. At branch level, the Operations Department
follows marketing practices. At each branch of bank, officers are
available to provide marketing activities of their products.
They make customer calls and personally visit the potential
customer to convince them to invest in AFB. They make phone
calls to customers and inform them about their schemes, profit
rates.

CONCLUSION
BANK ALFALAH ( BAF ) 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 Bank attained Number two (2) position in terms of its Balance
Sheet size amongst the private banks in Pakistan in 1999. The

significant improvements in terms of its results in comparison to


the corresponding period for the year 1998 have been much
above the market expectations. Balance Sheet footing of the Bank
reached the level of Rs.21 Billion-an increase of more than 46%
over the previous year.
Customer Deposits rose by 33% on a year-to-year basis and
stood at Rs.15.82 Billion. Bank maintained a Capital adequacy
ratio of over 13%, which is significantly above the Basle
guidelines and international requirement of 8%. The pre-tax profit
of the Bank also increased more than five (5) times as compared
to the previous year and stood at Rs.354 million for the year
1999.
Banks investment in the Financial Sector was based on the
confidence of bank in the country as a whole and it has been
amply demonstrated by the growth plans of bank though
ambitious in nature but prudent and in line with the potentials of
the market place. Although the financial sector in general
witnessed some shrinkage, both in terms of downsizing and
closure of certain locations, the bank, however, continued with its
expansion programme and added five (5) new Branches in their
network, one each in Islamabad, Peshawar, Multan, Faisalabad
and Lahore.
BANK ALFALAH views specialization and service excellence as the
cornerstone of its strategy. The people of bank innovation,
creativity, reliability, customized services and their execution are
the key ingredients for their future growth. Based on this
approach, their Treasury Division and the Structured Finance Unit
have been geared to provide specialized services to the Corporate
customers. Revenues from these activities have started yielding
dividends and they expect significant growth in these areas in the
coming years.

While building on their in-depth familiarity with their customers


needs and anticipated developments in the banking industry, the
Retail and Corporate areas of their operations will continue to
provide a strong and stable base to the business of the Bank.

They are aware that they have stepped into the 21 st century and
they must meet its challenges by acquiring the highest levels of
Technology. They will thus be accelerating their enable them
distribute their products and services through most efficient and
high-tech means. Their programme to launch real time on line
Banking Services and introduction of ATMs at strategic locations
have been firmed up and it will be fully operational during the
year 2001.
Their focus would be to constantly seek out growth opportunities
through increased quality assets and by offering a wider range of
products and services to their esteemed customers They are
committed to enhancing the shareholders value and look forward
with greater optimism to a prosperous future for BANK ALFALAH
Based on the profit of Rs.354 million, the Board has proposed that
a cash dividend at a rate of Rs. 2.00 per share i.e. 20% of share
capital be distributed among the shareholders.

REFERENCES
WWW.GOOGLE.COM
WWW.BANK ALFALAH.COM
WWW.WEBCRAWLER.COM/BANKING
WWW.BANKINGNEWS.COM