INTERNSHIP REPORT ON

BANK ALFALAH LIMITED

Internship Report submitted to the Faculty of Management & Administrative
Sciences in Partial Fulfillment of the Requirements for the Degree of
Master of Business Administration.

BY
Program & SessionMBA2012 to 2015

UNIVERSITY OF GUJRAT
Date of Submission
23.08.2013

Name of Program Coordinator ___________________

Signature of Program Coordinator_________________

Page 1

2.ACKNOWLEDGEMENT
All the appreciation and gratitude is for the Almighty Allah who is the most merciful and
beneficial. He is the only one who bestowed us knowledge and wisdom and made us
capable of doing the challenging tasks. We thank the Almighty for all those capabilities
that he granted us to complete this project.
I am thankful to all the employees of Bank ALFALAH limited jalal pur jattan branch.
Special thanks to Muhammad Ali Manager of Bank ALFALAH limited jalal pur jattan
branch. And all other employees of the branch for their co-operation. I am very thankful
to the honorable internship supervisor. I learnt a lot from this training program and this
would guide me a lot while selecting my career. I also know how to face the problems
and how to find out the ways for their solutions.

Page 2

Table of contents
Serial #
1.
2.
3.
4.

Topics
Title page
Acknowledgements
Table of contents
Executive summary
Part 1

5.

Main body of report

5.1
5.1.1
5.1.2
5.1.3
5.1.4
5.2
5.2.1

Introduction
Introduction of the organization
Purpose of the Studies
Scope
Objectives of the study
Over view of the organization
History of the bank
Vision
Mission
Bank alfalah Slogan

5.2.2
5.2.3
5.2.4
5.2.4.1
5.2.4.1.1
5.2.4.1.1.1
5.2.4.1.1.2
5.2.4.1.1.3
5.2.4.1.1.4
5.2.4.1.1.5
5.2.4.1.1.6
5.2.4.1.1.7
5.2.4.1.1.8
5.2.4.1.2
5.2.4.1.3
5.2.4.1.3.1

Page#
1
2
3
8
9
10
10
11
11
11
11
11
12
12

Nature of organization
Business volume ,reward honors and success stories
Product and service lines
Product lines and Brand portfolio of bank Alfalah
Deposit Products
PLS Saving Accounts Saving
Current Account
Term Deposit
Royal Profit Savings Accounts
Kifayat account
Mahana Amdan
Alfalah education
Foreign Currency Accounts
Safe Deposit Lockers
Consumer Finance Products
Home Finance

12
12
13
15
15
15
16
16
16
16
17
17
17
17
17
18
18

Major Home Finance Products

18

Page 3

5.2.4.1.3.2
5.2.4.1.3.3
5.2.4.1.4
5.2.4.1.5
5.2.5
5.2.5.1
5.2.5.2
5.2.5.3
5.2.5.4
5.2.5.5
5.2.6

Start it together
Easy Transfer
Credit Cards
Remittances
PEST analysis
Political Factors
Economic Factors
Socio- Cultural Factors
Technological Factor
Legal factors
Organizations contrition toward economic

18
18
20
20
21
21
21
21
21
22
22

development
Alfalah Karobar finance
Alfalah Milkiat Finance
Alfalah Quick Finance

22
22

5.3
5.3.1
5.3.1.1
5.3.2

Organizational hierarchy
Hierarchy of bank alfalah
Board of directors
Number of employees of bank Alfalah

23
24
24
25
25

5.3.3
5.3.4
5.3.4.1
5.3.4.2
5.3.4.3
5.3.4.4

Benefits provided by Bank Alfalah

Registered and head office
Introduction of all departments
Operations department
Cash Department
Finance department
Credit department

25
26
26
26
29
30
31

Credit Cards
Funded credit line facility
Unfunded credit line facility
5.3.4.5
5.3.5
5.4

Accounts Department
Comments on organizational structure
Part 2
Internee work
Page 4

31
32
34
33
33
34

5.4.1
5.4.2
5.4.3
5.4.4
5.4.4.1
5.4.4.2

Brief introduction of bank branch

Detail of supervisors
Weekly time table
Detail description of departments
Account opening department
Local remittance department
Demand draft
Pay order
Telegraphic transfer

5.4.4.3
5.4.4.4
5.4.4.5
5.4.5
5.4.6
5.4.6.1

34
35
36
38
38
41
41
42

43
Customer service department
44
Clearing department
47
Funds transfer department
49
Detail description of task assigned to me in internship 50
Summary of learning
51
What skills and qualifications which I gained from my 51
internship

Communication Skills
Conceptual Skills
Interpersonal Skills
Stress Management Skills
Office Working Skills
Co-Ordination
Time Management Skills
Human Skills
Self Control

51
51
51
51
51
52
52
52
52

5.4.6.2

Responsibilities that I have undertaken during my 52

5.4.6.3
5.4.6.4

internship
The internship will be influence my future career plans 53
How do you think the internship activates that I carried 53
Page 5

6.
6.1
6.2
6.3

out are Correlated with class room knowledge

Conclusions of the report
Conclusions derived from the experience of internship
General observation about the bank alfalah
SWOT analysis

7.
8.

54
54
54
55
55

Strengths
Weaknesses
Opportunities
Threats

56
57
57
58
60

Recommendations
Reference

4.Executive summary

Page 6

I have made my internship report on Bank Alfalah Limited in which I will briefly discuss
about the organization policies and my learning from Bank.
In start of my internship I will tell you about the organizations introduction, scope
objective brief history structure and vision mission of bank Alfalah limited and product
and services provided by bank Alfalah limited and also discusses there different
department.
In 2nd and at last of this report it consists of my learning and gaining as an internee in
bank Alfalah limited jalal pur jattan branch. I discussed my duties & responsibilities as
internee. I have learned from the tasks which are given to me. I also quote SWOT
analyses that I observed working as internee. And I wrote some lines on how this
experience

impact

on

my

career

in

near

future.

At

last

have

given

recommendation/suggestions for corrective measures for bank Alfalah.

Internship is the only stage at the starting which provides better knowledge and
experience of work to perform in future. I implement my all efforts to gain from the work
as much as I can learn. This will be very supportive in the near future. I concluded it in
sense that whenever I go in professional life this working experience will help me.

Page 7

5. Main body of report

Page 8

5.1 Introduction
5.1.1 Introduction of Organization:
It is the part of university requirement for finishing MBA Master in Business
Administration of the students are required to undergo six weeks of internship.
Banking is one of the most responsive businesses all over the world. Banking is
considered as the backbone of an economy in every country and Pakistan is no
exception. Banks are guardian to the assets of the general public. The banking sector
plays a important role in a modern world of money and economy. It influences and
regulates many different but integrated economic activities like resources mobilization,
poverty elimination, manufacture and division of general public finance.
Pakistan has a strong banking system, which consists of a wide variety of institutions
circulates from a central bank to commercial banks and to expert agencies to provide
for special supplies of specific sectors.
It had acquired a flourishing banking sector by 1970. By the Nationalization of banks in
the 1970s was a major disturb to local banking industry of the country, and it had
changed the whole scenario of the banking industry. The political leadership and the
bureaucracy were made obedient through the illogical decision at the strategic level in
all the commercial banks due to which assets management equilibrium, initiative and
growth momentum lost by the commercial banks. They stopped to be a business
concern and turn into big bureaucracies. The climax of privatization, deregulation and
restructuring in the domestic banking industry and financial institutions was in early
1990s. The Muslim Commercial Bank was the first bank to privatize and then after
wards Allied Bank limited, United Bank Limited and Habib Bank Limited have all been
privatized.

5.1.2 Purpose of the Studies:

Page 9

The basic reason of the study in hand is together relevant information to assemble
internship report on bank Alfalah.
To observe, analyze and interpret the relevant data knowledgeably and in a

useful method.
Practically to work in an organization.
Develop interpersonal communication.
To take deposits accounts.
Find out How to respond in different situational problems and its solutions

5.1.3 Scope
As an internee I have a very good experience of doing work in bank Alfalah. Banking
sector have a very broad scope an targets of mine are also related with it. As male
concerns, doing job in banks is the most preferable job in Pakistan because people
think that jobs in bank is suitable to our environment and males feel safe and comfort
while doing job in bank.
5.1.3 Objectives of the study
The practical achievement of my knowledge which I got during my study and obtaining
the information about the practical work in field and also getting the working experience
of the work that I have done. I always want to increase my knowledge of the discipline
of banking department.
5.2 Over view of the organization
5.2.1 History of the bank
The history of bank Alfalah started near about 39 years ago, when a bank called BCCI
(bank of credit and commerce international) was operating its monetary facilities in
different countries of the world very professionally as well as in Pakistan, the banks
repute was badly affected due to some western plans involvement and its operations
were come to an end. Government of Pakistan taken over three Pakistani branches of
BCCI by with the name changed as Habib credit and Exchange bank. Its operations
were under the control of HBL. HCEB was considered as a public limited bank at that
time but in 1997, by the government H.C.E.B was privatized. After the privatization of
Page 10

Habib credit and exchange bank Alfalah came into reality on 21 st June 1992. Sheikh
Nahayan Mubarak Al-Nahayan was the chair man of bank Alfalah at that time.Sheikh
Nahayan Mubarak Al-Nahayan was the Minister of Education in Dubai, and he belongs
to a prominent Royal Family. HCEB was put up for sale for the worth of Rs 1.70 billion.
HCEBS management was taken over by Dubai based association. the life of bank
Alfalah starts with this first step.
Vision
To be the premier organization operating locally & internationality that provides the
complete range of financial services to all segments under one roof.
Mission
To develop & deliver the most innovative products, manage customer experience,
deliver quality services that contributes to brand strength, establishes a competitive
advantage and enhances profitability, thus providing value to the stakeholders of the
bank.
Bank Alfalah Slogan
The carrying bank
5.2.2Nature of organization
Bank Alfalah Limited has the obligations to Islamic Banking with objective of operating
Shariah Based Banking in the country in a very tough manner. Islamic Banking
proposes various assets and liabilities services and products also. The Bank strictly
sticks on to the crucial and model agreements for Islamic modes of financing approved
by State Banks Shariah Board. In adding, Shariah Advisors are monitor the day-to-day
operations. Deposit Product on Profit/ Loss sharing basis based on Musharakah,
Mudaraba offers by the Bank. Murabaha, Salam, Ijarah, etc are the major products for
financing. In addition to these, other products are customized in according with the
requirement of the customers strictly based on Shariah principles.

Page 11

5.2.3 Business volume, reward honors and success stories

Number of branches
Currently, Bank Alfalah Limited has 471 branches covering more than 163 cities
spread all over Pakistan. In this year 2013, currently the strategic management is
making the plans to open the new branches in the various cities of Pakistan to confirm
the customers get the benefit in the form of extended branch network and complete
products and services. Bank has made extra ordinary successes within a short period of
time even though being in the growing stage. Bank is devoted to set all its efforts,
resources and time to provide high value to its customers, employees and share holders
since 1997.

Bank Alfalah is working very professionally and has a extra ordinary growth in the
banking sector of Pakistan. Not only within the boundaries of Pakistan but also in
foreign countries is Bank Alfalah considered as a well reputed bank. For the sake of
satisfying its customers and human capital and also for competing in the private banking
secto rBank Alfalah is putting all its efforts and energies. Bank has an outstanding

Page 12

achievement in its business volume during last five years. Bank Alfalahs business
volume has been rising in past five years.
Description
2007
Profit before 2967

2008
3264

2009
6906

2010
3831

2011
4701

Tax
Profit

1763

3130

1301

899

after 1708

Tax
Shareholders

6756

10573

13764

14609

19170

equity
Advances net
Total Assets
Deposits
Investments

116464
247314
222045
58916

149999
275686
239519
56502

171129
328895
273174
88492

191790
348991
300733
75973

180042
389070
323760
99960

119937
70844
6543

184305
79090
7371

190289
93406
7584

167304
109493
79863

24416
0.68%

31822
2.04%

35789
1.38%

40743
0.24%

Imports
Exports
Number

1145210
71874
of 5212

employees
Total Income 140095
Return
on 0.85%
assets

Total asset of Bank Alfalah showed increasing trend during 2007 to 2011 it was 248314
million in 2007, 275686 million in 2008, 328895 million in 2008, and 348991 million in
2009 and in 2010 it was 389070 million. Shares holders equity of Bank Alfalah is
continuously increasing during last five years. In 2007 share holders equity was 6738
million, 10573 million in 2008, 13767 million in 2009, 14609 million in 2010 and 19770
million in 2011. Imports of Bank Alfalah were 116210 million, 119937 million, 184305
million, 190289 million and 197304 million in 2007,2008,2009,2010 and 2011
respectively. Its exports showed continuously increasing trend in 2007 these were
71847 million, 70844 million in 2008, in 2009 these were 79090 million, in 2010 these
were 39406 million and in 2011 these were 100493 million. BAL return on asset was
0.84% in 2007, 0.67% in 2008, 1.04% in 2009, and 0.38% in 2010 and in 2011 it was

Page 13

0.24%. Total income of BAL received during 2007 to 2011 was 14515 million, 24416
million, 31822 million, 35789 million and 40743 million respectively.
5.2.4 Product and service lines
Bank Alfalah offers different types of products to their customers which include

Checking Accounts

Home Loans

Credit Cards

Funded and Unfunded Loans

Debit Card/ Halal card

Car Financing
Money Gram
Agri Finance
Credit Card
Online Banking
safe deposit lockers

5.2.4.1 Product lines and Brand portfolio of bank Alfalah

Alfalah is included in one of the best private banks of Pakistan. Alfalah create important
products for their customers to fulfill the requirements of their needs. And with the help
of this they create a wide range of their products and build up a wide range of portfolio.
Through this Alfalah attracts more customers and investors to be part of Bank Alfalah.
bank Alfalah to serve their customers offers the following products.
5.2.4.1.1 Deposit Products
Deposits accounts includes the following accounts offer by the bank to its loyal
customers
5.2.4.1.1.1 PLS Saving Accounts Saving
With a minimum balance requirement of Rs 5,000Profit& Loss saving accounts can be
opened and profit is credited on a half yearly basis. The number of deposits and
withdrawal made to and from the account and all account holders receive a Halal debit
card as well there are no restrictions. Profit and loss saving account can be jointly
opened by individuals and cannot be opened by a business corporation. Profits are paid
Page 14

at 6% on all account balances. Accounts are planned to mobilize savings primarily from
a large number of individuals and house hold. Any one or more individuals or
partners/persons can able to open a PLS saving account with its minimum amount
requirement. For widows, retire officers these kind saving accounts are very best choice
who have no alternate for their business.
5.2.4.1.1.2 Current Account
Current Accounts have noninterest bearing feature accounts which have a minimum
account opening requirement of Rs 10,000. No zakat is deducted on the accounts
balance. Furthermore receive a Halal debit card and there are no restriction on the
number of withdraws or deposits made to and from the account by all current account
holders.
5.2.4.1.1.3 Term Deposit
It is one of the most popular account types. In this account the amount is deposited for
fixed time of period i.e. from one month to five years. The interest is different with the
variation of time limitation. The rate of profits raises as per increase in time period. In it
the customer cannot withdraw money before the maturity. The profit on this account is
paid after the maturity of time limit. But if a customer want to withdraw before maturity,
so he will give a notice to the bank 7 days before borrowing.
5.2.4.1.1.4 Royal Profit Savings Accounts
Royal Profit savings account is suitable for the persons who businesses are very huge
and they have to perform heavy transactions.. Current rates of profit are as follows.
Amount Proposed Rates

(P.A)

Balance up to Rs. 49999

6.00%
From Rs.50000 to 999999 6.50%
From 1000000 to 4999999 7.0%
From 5000000 and above Negotiable

5.2.4.1.1.5 Kifayat account

Kifayat account is also a saving account product of bank Alfalah that can be opened
with a smallest amount requirement of Rs 10,000, with a highest limit of Rs 1 million.
And in it Profit is calculated on a monthly basis, while it is credited on quarterly basis.
Bank Alfalah pays 7% pa interest on Kifayat Account.
Page 15

5.2.4.1.1.6 Mahana Amdan

Mahana Amdan account isa account which is Term Deposit Receipt (TDR) and it is for
three years and it has a minimum balance requirement of Rs 100,000, with a maximum
limit of Rs 15 million. And the Profits which is offered is 10% pa, credited on a monthly
basis. Other features of Mahana amdan account includes free personal accident
insurance and automatic renewal for another 3 years, after the expiry of original period
5.2.4.1.1.7 Alfalah education
Alfalah education is a one year term deposit receipt(TDR) which people can purchase it
by having their school going children. A person can purchase a unit for Rs 100,000, up
to maximum time period of3 years. This term deposit receipt(TDR) has influencing
features like pays 7% interest, paid at the time of maturity and this gives an additional
advantage of giving monthly school fee of the child if the wage earner of the family die
or if there is any case of disaster occurred in the family.
5.2.4.1.1.8 Foreign Currency Accounts
This Account is accessible to resident and non-resident Pakistanis as well as foreigners
can also open the foreign currency accounts. A foreign currency (fcc) account can be
opened as savings account/current accounts. In foreign currency saving account the
profit is paid on half-yearly basis or at semi annually basis and on term deposit it is paid
on prime of life. It is interest free account so no interest is being paid on accounts.
5.2.4.1.2 Safe Deposit Lockers
For safekeeping of customers valuable things like documents, securities and jeweler
etc. Bank Alfalah provides safe deposit lockers facilities to its customers also.

5.2.4.1.3 Consumer Finance Products

5.2.4.1.3.1 Home Finance
Bank Alfalah has launched home loans now which are the main part of consumer
banking and some of the products that come into the point of home finance are:
Major Home Finance Products
Buy your Home
Page 16

In this type of loan Bank Alfalah gives its customers a facility to purchase their own
home, with 80% of the financing coming from the bank to help their customers.
Build your Home
In this type of loan the bank Alfalah try to help the customer by giving him loan to built
up a new home which he will build on his plot if customer did not purchase a plot the
bank also help in purchasing the plot as well.
Renovate your Home
When you have your home, you wish with the best of accessories available to furnish
and renovate your home. Bank Alfalah gives you the 40% of the amount which you
spent on the renovation and furnishing your home in your own way.
5.2.4.1.3.2 Start it together
This product is especially planned for young qualified starting their careers. With Bank
Alfalah start it together, these professional can purchase a home and get a suspension
of up to 3 years, that is they only have to pay the bank mark up on their loan which you
borrow from bank, while the payment on principal amount start after that period.
5.2.4.1.3.3Easy Transfer
With Bank Alfalah easy transfer, bank Alfalahs customers can now move their existing
home loan from any other bank to Bank Alfalah. Bank Alfalah have feature in which
bank Alfalah pay on your behalf to the other bank and after it will start a repayment
schedule which is according to Bank Alfalahs rules and regulations for customers.
Consumer finance is the fast growing part of banking business in Pakistan. The
principal consumer finance products are personal loans housing financing Credit cards,
car finance, loans for purchasing household appliances, computers and related
accessories and housing financing.
Bank Alfalah also has a strong focus on consumer banking and consumer financeas a
market oriented bank. A brief description of products is as follows:
Auto Leasing and Financing
Car Finance
Car leasing

Page 17

Alfalah car scheme allows customers to buy a car with minimum down payment and
insurance at easily affordable installments.
Facility (only for Alfalah Customers) and it is characterized in terms of:

Lowest Mark up
Lower Down Payment
Quick Processing
Lower Insurance

Features of Bank Alfalah Car financing are

Tenure of 1-5 years
least down payment- starting from 10% of car value
5 % more at time of pre-mature payment.
Insurance facility from three special insurance company es
Tracking devices is also available with all Suzuki Mehran and all Toyota Models
Fixed mark up rates
Co borrowers facility

Financing Product

1Yr

2Yr

3Yr

4Yr

5Yr

Car Loan for Brand New Vehicles

14.00% 14.50% 15.00% 15.50% 15.50%

Corporate & Individual Car Leasing

Bank Alfalah freshly introduced car leasing facility for individuals and corporate sector
has set new scope for the product. Now the customers of bank Alfalah are provided with
the option of either to get their vehicle in terms of leased or in terms of finance.
5.2.4.1.4 Credit Cards
Credit Cards are progressively more becoming way of life in Pakistan. In Dec, 2002
Bank Alfalah (visa) Credit Card product was launched at the first time. And this has
achieved the great success in a very short period of time. There is no cared issuance
fee as it is free bank Alfalah Credit Cards are unique in this sense. Bank Alfalah Visa
Card has the ability that it is everywhere and globally accepted and welcomed .visa card
is only in nature of credit cards which is accepted at nearly 30 million merchants and
870,000 ATMs in more than 150countries around the globe and over 10,000
Page 18

establishments in Pakistan. Alfalah VISA used for shopping, travel, entertainment,

meals and much more. And bank Alfalah have different credits cards for different type of
customers. And these include platinum, titanium, Gold& Silver, Supplementary Cards.
Credit Card

Market Segment1

Silver

Salaried and self-employed individuals

starting their careers

Gold

Salaried

individuals

or

self-employed

individuals with high income

Platinum

For exclusive customers of the bank with

huge deposits or very high income

5.2.4.1.5 Remittances
In order to transfer money there are two instruments which are used, which are as
follows:

Pay order: transfer money inside one city

Demand Draft: transfer money outside the city

5.2.5 PESTL analysis

5.2.5.1 Political Factors
The organizations and institutions are also greatly affected by the political factors in any
countries. If there is a stable political environment in any country then the organizations
grow more positively and effectively but if there is instability in political environment of
any country, then there is a bad impact on all institutions and organizations within the
country. Govt. also have to follow some rules .If we look Bank Alfalah In terms of
political environment in order to launch a bank a regulatory approval is necessary from
the State Bank of Pakistan. in addition there is a requirement of State Bank of Pakistan
1
Page 19

that the paid up capital of Bank Alfalah must be Rs 15 billion by 2010, Rs 20 billion till
2011 and Rs 28 billion by 2012.
5.2.5.2 Economic Factors
The economic conditions of the country as we know are not stable and many banks
affected by the big economic crisis recently. According to me Bank Alfalah must have to
consider the key problems of the economy then it should make some steps to solve
different economic problems which have been arrived. In current situation challenges
like inflation, unemployment and economic crisis etc, like many other banks Bank
Alfalah are also being affected.
5.2.5.3 Socio- Cultural Factors
Every organization has its own social values and cultures. Bank Alfalah is doing great
by keeping in mind the cultural values which are ruled out in our country.
Advertisements of bank Alfalah reflect the true cultural and social values of country. And
it has a great deal that customers are attracted by doing this Because it is natural that
the customers are always attracted towards that particular organization when some
organization takes care of customers social and cultural values.
5.2.5.4 Technological Factor
The technology plays a very vital and important role in todays flourishing organizations.
Bank Alfalah is doing well by implementing fine technology for the customers. Further it
trains the employees to use this particular technology to serve more and more to its
customers.
5.2.5.5 Legal factors
Bank Alfalah is officially announced as the certified and registered bank that is providing
all the facilities to its customers and gives more value to its customers by using its
resources. Operations are done legally is very important for any organization. it is not
only good for employees but also for the customers to deal with the legal company.
Pakistan government or any other government preferred the legal companies who deal
with their customers in legal manners.
5.2.6 Organizations contrition toward economic development

Page 20

The vital role of agriculture in the economic development of Pakistan ruled by the Bank
Alfalah Limited and bank has organized the Rural Finance Program named as
"BANKALFALAH ZARIE SAHULAT". The product is designed to provide multiple
financing necessities of our farming zone.
Through this chain of complete distinguished and specialized products for agriculture
sector we are caring our customers to help the farmers with expert advice, technical
know-how and Credit for their different activities through reasonable and all possible
modes to suit farmer necessities Bank Alfalah Branches are designed.
Bank Alfalah Limited Strategy is to focus on following Objectives.
Provide reliable and better infrastructure for Agri-customers.
Help farmers to utilize funds more efficiently and effectively.
Alfalah Karobar finance
Alfalah Karobaris Bank Alfalahs first SME product.AKF is a running finance facility for
customers which are provided on the basis of projected cash flows. Under AKF, we offer
different features like working capital finance (Rs.0.5 million to Rs. 20 million) to SMEs
at highly competitive rates. Provide expert financial advice along with customized
packages to a diverse range of business clientele by the Bank Alfalahs team of expert
credit officers. Through all Bank Alfalah conventional branches across the country this
product is available to SMEs.
Alfalah Milkiat Finance
By introducing Alfalah Milkiat Finance Bank Alfalah took another step towards
addressing the needs of the industry. AMF is aim to strengthening the Small and
Medium ventures. offers comprehensive and flexible financing packages from Rs. 0.5M
up to Rs. 30 million for the purchase, restoration and development of business premises
By Alfalah Milkiat Finance.
Alfalah Quick Finance
Alfalah quick financing is a personal loan against National Saving Certificates, Prize
Bonds, Alfalah GHP Principal Protected Fund & PKR/FCY deposit for meeting personal,
family and household needs.
Page 21

Chief Executive OfficerMr M. SaleemAkhtar

Executive In charge
Range VIII
Area Manager
Range VII, VIII
Branch Managers
Range VII

Credit Manager
Range VII

Manager Operation
Range V

Internal Audit
Department

Corporate FinanceCorporate Finance Corporate Finance

Range III
Range III
Range III

5.3 Organizational hierarchy

5.3.1 Hierarchy of bank Alfalah
The management hierarchy of Bank Alfalah Limited is started from the Chief Executive
CD In charge Credit Cards Dept.

IT

Officer and itRange

is categorized
as given
below:Department
III
t

Trade Department Account Opening

Cashier
Page 22
Tele Communication
Business Development
Clearance Department
Accounts Department

5.3.1.1Board of directors

H.H. Sheikh Hamdan Bin Mubarak Al Nahayan Chairman of BAL

Mr. Abdulla Khalil Al Mutawa Board of Director
Mr. Abdulla Nasser Hawaileel Al-Mansoori Board of Director
Mr. Khalid Mana Saeed Al Otaiba Board of Director
Mr. Ikram Ul-Majeed Sehgal Board of Director
Mr. Nadeem Iqbal Sheikh Board of Director
Mr. Sirajud din Aziz Chief Executive Officer
Page 23

5.3.2 Number of employees of bank Alfalah

The total numbers of employees of bank Alfalah are more than eight thousand in
amount. It is expected that there will be an increase in its number of employees the
reason of it that in coming few years Bank Alfalah limited will open its new branches in
many different cities of Pakistan for serving more and more people that leads to
increase the job opportunities for new people as well in the economy.
Benefits provided by Bank Alfalah
Some of the monetary and non monetary benefits that Bank Alfalah provides to its
employees are as follows:

Attractive wages Package

Employee Provident Fund

Gratuity Fund

Medical Insurance

Bonuses

Life Insurance

Promotions

Various types of Staff Loans

Assistance in Pursuing Higher Education

5.3.3 Registered and head office

B A Building, II.Chandi garh Road, P. O. Box 6773, Karachi.
WEBSITE www.bankAlfalah.com
5.3.4 Introduction of all departments

Operations department
Finance department
Credit department
Accounts department
Cash Department
Page 24

5.3.4.1 Operations department

Operations department is responsible for its all major activities:

Clearing
Transfers
Remittances
Cash Transfers

These are the jobs which are done by different departments in large branches of Bank
Alfalah. But as Bank Alfalah jalal pur branch is a small branch, all the jobs which are
done by one department, known as operations. Operations department is also known as
the Transact department.
Clearing
For the clearing of all cheques the clearing department is responsible. The bank
receives daily and the different types of clearing cheques that come in the bank are

Inward Clearing
Outward Clearing
Online Clearing
Outward Bills for Collection

Inward Clearing
Inward clearing start when a Bank Alfalah account holder draw a cheque for the NonBank Alfalah account holder. The process of inward clearing is as follows
Cheques are received by the operations department from NIFT
The bank officer verifies all particulars from the instruments and the system for
sufficient balance etc. the officer will mark the cheques as a return, stating the
reasons with them if any fault is found in cheque.
If no fault is found, then the officer passes the entries of these cheques in the
system by debiting the customer account.
The particular of the returned cheques are entered in the O/W return of inward
clearing register and returned to NIFT.
Outward Clearing

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It is opposite to the inward clearing Cheques drawn by Non-Bank Alfalah customers in

the favor of Bank Alfalah customer and deposited are known as outward clearing
cheques. The process for outward clearing is as follows
Cheques are received by the operations department of Bank Alfalah jalalpur
jattan branch.
The customer in favor of whom the cheque is drawn is credited to the
account.
The cheque sent to the other bank via NIFT after the clearing stamps are
affixed on it.
If any cheque returns the next days as a returned then the posted entries are
reversed by the operation department and the cheque is returned to the customer
who presented it and is recorded in the cheque return register.
Online Clearing
Online clearing takes place when a cheque is drawn by a Non-Bank Alfalah account
holder in favor of a Bank Alfalah account holder but it is deposited at Bank Alfalah
branch., who had drawn this cheque, however he should have an account in the
Islamabad/Rawalpindi area. The process for online clearing is as follows
The cheque which is sent as an outward clearing through NIFT
Through the online transfer software when the cheque is cleared, it is credited to
the Bank Alfalah account.
Outward Bills for Collection (OBC):
By a non Bank Alfalah Account that is outside the twin city area there are some cheques
that are drawn in favor of Bank Alfalah account holders and that are treated as OBCs.
The process for clearing of the OBCs is as follows:
Cheques received by Bank Alfalah
The officer attaches the OBC stamp on the cheques and writes its individual
number from the OBC register.
All entries of OBC cheques are written in an OBC register.
An OBC letter is printed, which shows the cheque numbers, the branch drawn
on and amount.
By courier original cheques are attached to these letters and sent to the main
Bank Alfalah branch in that area.
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 The officer at the branch credits the customer account with that amount when
that area branch clears the amount from the Non-Bank Alfalah branch; it
sends an Inter Branch Credit Advice (IBCA) to Bank Alfalah branch.
Transfers
Bank Alfalah uses the Bank Smart software to make the transfers by the bank itself.
There are two types of transfers:

Internal Transfers
Online Transfers

Internal Transfers
When a Bank Alfalah account holder draws a cheque in favor of another Bank
Alfalah account holder Internal transfers plays the vital role there. The process for
internal transfer is as follows.
Officer of the bank receives the cheque and determine if the cheque is an
internal transfer by looking at the branch code, if they are same then it is an
internal transfer
The officer will credit the account in favor of whom the cheque was drawn or
to who transfer the money and debit the account that drew amount it.
For verification of the entries the cheque will be sent for super vision to the
operations manager.
When supervised, the cheque will be attach with the official stamps and kept
with the bank.
Online Transfers
All those transfers in which a Bank Alfalah account holder draws a cheque in favor of a
Bank Alfalah account holders are known as online transfers. The process for online
transfer is as follows.
The bank officer collects the cheque from the depositors.
And then Verifies if the accounts are online and need to be transferred online.
Posts entries by debiting the account of the cheque, while crediting the account
on the slip attached with the cheque.
The operation manager supervise the check
The cheque will be affixed with the official stamps and kept with the bank when
supervised.
5.3.4.2 Cash Department
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The cash department controls all the circulation of cash. As bank is an institution in
which borrowing and lending money regularly takes place, so-on these bases cash is
the top most priority of Bank. Another aspect is that cash department is only department
in bank which is responsible for the security; security in a means there should be no
fraudulent of funds or in money give to bank by any party or person. A bank is fully
depended on this department a bank which has an efficient cash department he should
be a leading bank in a city or country.
Cash department be obligated its important to the fact that it is a major point of contract
between the bank and the customer, the banks most valued relationships based on this
department. This department also used by the banks as a showcase because it creates
a first impression on customer of bank through this department working a customer can
judge the whole bank.
Normally cash department performs the functions which are given below

Collection of funds
Acceptance of deposits
Collection of utility bills
Payment of checks
Remittances
Transfer of funds from one account to another
Verification of signatures
Posting

5.3.4.3 Finance department

Home Finance
Some of the features of Bank Alfalah home finance are as follows.

A tenure of 3 to 20 years (renovation tenure for 10 years)

For people who are between the age of 23 to 65 years.
Facility of home loans to customer have range from 0.5 million to 50 million and

the renovation facility for 3.5 million.

Financing up to 80% of property value while 50% of plot value.
It is also fixed and variable rates of markup.
Fixed rate for one year @ 11.5% Salaried and @ 13.5% Businessmen and

emigrant Pakistanis.
Car Financing
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Car financing is a very important and popular facility for customers provided by the
banks it has the feature that the customer can pay out the whole payment of car in 1 to
5 years. Today banks take additional step in this facility by providing additional facilities
of insurance and tracking devices in cars as well. Salaried individuals, businessmen and
other individuals with a high disposable income are the main segments of people to
whom this service is targeted.
5.3.4.4 Credit department
Credit Cards
Credit cards are also we can say as plastic money.
Features and services of all cards are same.
All cards are differentiated with their limits up to the policies of bank.

Types of Cards

Debit Card/ATM Card

Credit Card

Debit Cards
Debit Cards are Halal because funds are in our accounts. We can withdraw our money
in any time by the use of ATM machine.

Cash with-drawl
Can do shopping

Credit Cards

Cash with-draw
Shopping
Demand Draft Pay order facility

Types of Credit Cards

Seven types of credit cards, in which six for Visa and one for Master Card

Page 29

Visa Gold

Limits 150000-500000, for salaried and business persons.

Classic Silver

Limits 50000-150000, for salaried and business persons.

Classic Blue

Limits 20000-50000, for salaried persons.

Women Exclusive

Limits 50000-60000, for only house wives

Student Card

Limits 1000-50000, for only six institutes of Lahore

Visa Platinum

Limits 750000-2000000, for salaried and business persons

Master Card

Limits 300000-750000.
Funded Credit Line Facility
There are three major products that come under the funded credit line facility:

Current Finance
Karobar Finance
Milkiat Finance

Current Finance
Current Finance is a short term in nature and this type of facility mainly offered to
companies. Under this facility you can borrow the money from bank for only one year.

Page 30

The main feature of this facility is that you pay markup only on the utilize part of loan so
thats way companies prefer this facility for capital management.
The bank to provide this facility keeps a security for safe its side, mostly a mortgaged
property and can provide 60% of its assessed value as funds.
Karobar Finance
Alfalah Karobar Finance is another short term facility of finance. This facility is only for
individuals and the persons who are sole proprietors. This facility also has similar
feature of current finance like one year validity with markup charged on the amount
used.
This facility only enjoys that individual which has something valuable things which are to
be presented to the bank for security of bank. The conditions for current finance and
karobar finance are same but one big difference, which is that in karobar finance, the
individual which has borrow the money from bank has to clear out all his balance in his
account, once in a year.
Milkiat Finance
Alfalah Milkiat Finance is a long term facility which is only for SMEs and there are four
major types of facilities provided.

Acquisition of rented commercial/industrial property

Construction on an owned commercial/industrial plot
Purchase of a commercial/industrial property
Renovation of owned commercial property

Some of the features of Milkiat finance are as follows:

Tenure of 2-12 years except for renovation, which is for 2-4 years
Mark up of 4%
Financing from Rs 0.5 million to Rs 20 million, renovation financing up to 3.5

million
Eligibility age for any individual should be less than 65, with 3 years of existing
business

Procedure for Milkiat Finance

A customer should provide all the documents Other forms of verification also take place
in this process. How much a bank can finance this thing should be final by see the
actual property of customer.
Page 31

A CLP (clear land paper) is made by the bank, which with other documents is sent for
approval to the area office after the valuation process is complete.
When the area office approves the application of customer, then customer is called into
the bank to give the security papers to the bank and bank also provide all legal
documents are signed and the money is transferred to the bank.
Unfunded Credit Line Facility
There are two types of unfunded credit line facility, which are as follows:

Letter of Credit (LC)

Letter of Guarantee (LG)

Letter of Credits
A letter of credit is a responsibility by a bank (issuing bank) in a written way which is
given at the request and on a will of a buyer (the applicant) to the seller (the beneficiary)
to a particular payment on a specific time or date which is predefined by both parties
with specific terms and conditions. For the international trade business letter of Credits
are issued.
There are two types of Letter of Credits:

Usance
Sight

Usance
Usance LC is a type of letter of credit, in which the bank takes on to admiration the
beneficiary usance draft on an acceptance that the items are in accordance with the
conditions of which the deal is done between seller and buyer. Payment is made after
the acceptance it is more risky from the seller point of view.
Sight LC
This type of Letter of credit is for securing the seller because the buyer gets the goods
when he accept and pay the amount of goods firstly. This is a more safe form of LC as
payment is made against the documents.
Page 32

Letter of Guarantees

Letter of guarantees is a guarantee that the bank gives to an organization on behalf of

its customer. Letter of Guarantees are mainly used when a tender for a specific job is
filled by a customer. There are three main types of LGs:
Bid Bonds
Bid Bonds are filled at the time of completing the tender and states that if the company
issues the tender to the bank, then it will start working on it and will not walk away
Performance Bonds
Performance Bonds are issued to the beneficiary person by the bank to assure him that
the candidate of the tender will perform the contract under a certain time period and
conditions. The difference point is that Performance bonds are issued after the tender is
approved for the applicant.
Mobilization against LG
This type of LG is take place when the one party is beneficiary gives the certain amount
in advance for the tender to that party for which is applicant and bank give the
guarantee of the advance amount will return.
5.3.4.5 Accounts Department
Basic Requirements for Account Opening
The basic requirements to open an account for individuals/self employed are as follows:

CNIC
Source of income (salary slip etc)
NTN certificate (optional)
Company letterhead or authorization (as required)

The basic requirement to open an account for a partnership

Partnership Deed
Partners CNIC
Company Letterhead
NTN certificate (optional)
The basic requirement to open an account for companies:
Memorandum of Association
Article of Association
Directors CNIC
Page 33

Company Letterhead
NTN certificate (optional)

5.3.5 Comments on organizational structure

The approach of centralization is being followed by the Bank Alfalah for its
organizational structure. I have delivered report on all the activities which bank Alfalah is
performing for its customer to the central bank. All branches of bank Alfalahs are
controlled and directed by the bank Alfalahs head office. All the branches of bank
Alfalah are working in much disciplined manner that is ruled by the strategic
management of bank Alfalah. Branches are given the authority to recommend the
people for new jobs to the head office for hiring and selecting the new people e.g.
previous internees of the branches. Recruiting, selection to the jobs and also for firing
the people from the jobs these all major work is done by the head office.

Page 34

5.4 Internee work

5.4.1

Brief

introduction of bank

branch
I

started

my

internship

on

11thJuly,2013 to 21st

august.

internee

completed

internship

bank

Alfalah

Being

an
my

limited

at

jalalpurjattan

district, Gujrat. As for

the prospect of this

branch

established in 26th

decemeber,2011.At

start

manager was Mr. Mir

Hamza

branch
now

Mr. Muhammad Ali is

playing his role as

branch manager and

eight

are there which are

working

and

was

employees
under

branch

other than helping

staff.

Branch detail

Page 35

manager

Branch Name
Branch Code
Address
Phone
Fax
Tehsil
District
Province

Alfalah Bank limited

0556
BANK ALFALAH LIMITID circular road, jalal pur jattan
district, Gujrat
053-431741
053-431745
Gujrat
Gujrat
Punjab

5.4.2 Detail of supervisors

under the delegation of different supervisors I have performed many activities as an
internee.
Name of supervisors

Positions

Qualifications

Muhammad Ali Butt

Branch manager

M.com

Azam Riaz

Account opening dept officer

MBA

Mr. Muhammad Nawaz

Operational manager

MBA

Awais-ur-Rehman

Local remittance

MIT

Page 36

Mr.muhammad omer

In charge of customer services MBA

dept.

Ms.Umelaila

DMS

MBA

Asim sohail

Cash dept

B.com

5.4.3 Weekly time table

I started internship work at Alfalah bank on 11 July 2013 till 22 August. Basically this
timetable shows my activities which I have performed here. I work in departments
during internship in each department some supervisors supervise me. The signature of
all supervisors is also given in weekly time table schedule. They all are very cooperative and hard worker. Without supervisors I cannot accomplish all those activities
which are listed below.

First week
Name of departments: Account opening
Supervisor name: Azam Riaz
Supervisor signature:

Date
11July 2013

Activities during this week

I have learned about account departments in the bank

Page 37

12July 2013

Learnt about different accounts in banks which bank offer to its customer
and also learnt about opening and closing of these accounts

13July 2013

Bank holiday

14July 2013

Bank holiday

15July 2013

Work with supervisor to open different accounts

16July 2013

i filled the account opening form

17July 2013

Checked the requirements of account opening forms

Second week
Name of departments: Account opening
Supervisor name: Azam Riaz
Supervisor signature:
Date

Activities during this week

Page 38

18July 2013

Worked in account opening department under supervisor

19 July 2013

Worked in account opening department under supervisor

20 July 2013

Bank holiday

21 July 2013

Bank holiday

22 July 2013

Worked in account opening department under supervisor

23 July 2013

Worked in account opening department under supervisor

24 July 2013

Worked in account opening department under supervisor

Third week
Name of departments: Local remittance
Supervisor name: Awais-ur-Rehman
Supervisor signature:

Date

Activities during this week

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25July 2013

Learn about local remittances

26 July 2013

Work with the supervisor and learn about clearance

27 July 2013

Bank holiday

28 July 2013

Bank holiday

29 July 2013

Learnt about the outword clearing

30 July 2013

Learnt about the inward clearing

31 July 2013

Practically did inward and outward clearing

Fourth week
Name of departments: Local remittance
Supervisor name: Awais-ur-Rehman
Supervisor signature:

Page 40

Date

Activities during this week

1 august 2013

Worked in local remittances department under supervisor

2 august 2013

Worked in local remittances department under supervisor

3 august 2013

Bank holiday

4 august 2013

Bank holiday

5 august 2013

Worked in local remittances department under supervisor

6 august 2013

Worked in local remittances department under supervisor

7 august 2013

Worked in local remittances department under supervisor

Fifth week
Name of departments: Customer service department
Supervisor name: Muhammad Omer
Supervisor signature:
Page 41

Activities during this week

Date
8 August 2013

Eid holiday

9 August 2013

Eid holiday

10 August 2013

Eid holiday

11 August 2013

Eid holiday

12 August 2013

Introduction of department and over view of slips

13 August 2013

Learnt how to fill the slips and Practically Filling the slips of customers

14 August 2013

Independence day holiday

Sixth week
Name of departments: Operational department
Supervisor name: Muhammad Nawaz
Supervisor signature:

Page 42

Date

Activities during this week

15 August 2013

Introduction o department

16 August 2013

Over view the activities of operational manager

17 August 2013

Bank holiday

18 August 2013

Bank holiday

19 August 2013

Learn the issuance of different instruments

20 August 2013

Work with the taller

21 August 2013

Work with the taller

5.4.4 Detail description of departments

5.4.4.1 Account opening department
Responsibilities of account opening department
The responsibilities of account opening department are as following

Opening a new account

Page 43

Fill out the various documents to open a new account

Issuing the new cheque book to the customer after opening a new account.

Account opening
The work of account opening department is started when a customer is asked to bank
for opening a new account. On the request of the customer for opening a new account
branch manager makes queries for accounts category for the customers requirement
the categories of accounts are given below.

Individual account
Joint account
Sole proprietor account
Partnership account
Company accounts

Detail of activities of the first week:

During first week of my internship I have learnt about account
department in the bank and also learn about those accounts which bank offers to its
customers. After that I worked with the supervisor and know how to fill the account
opening form and also learnt about the requirements to open an account. I have learnt
about different types of accounts which are as follow:

Individual account
Business account
Partnership account

The requirements which need to open these types of accounts are as follow:

Name, fathers name, address, CNIC number, issuance and expiry date of CNIC
card, any other relative CNIC number, account type etc.

An eligible person has the facility to open the various types of account according to his
requirements and the types of accounts are given below.

Term deposit
Royal profit savings accounts
Page 44

Kifayat account
PLS saving Accounts
Mahana amdan account
Alfalah education
Foreign currency accounts
Current account

Procedure for closing the bank account

The procedure for closing the bank account is very simple and brief. The account can
be closed in two ways. 1 st is that if there is any court order or the customer is involved in
any criminal activity.2nd is that customer himself wants to close his account by giving a
certain reason. For this purpose he gives an application to the bank to close the account
and mentions the reason in it. After this if there is any balance in his account bank
refunds him and get back the cheque book which the customer has hold.
Issuance of Cheque Book
First Time Issue of the Cheque Book
Cheque book is the very main and important thing for the customer because this is the
instrument through which cash can be withdrawn from the bank. The authorized person
fills in the requisition slip and then takes signature of the customer in order to maintain
the record. And a customer is rewarded a cheque book within 7 to 8 days.
After giving signatures on the requisition slip customer will be able to get cheque book.
A single cheque book can be of 50 , 80 and 100 pages..Bank only issues only single
check book at one time. In bank there is a separate register for maintaining the record
for the issuing the cheque books of leave number, account number etc. When a check
book is issued by the bank an entry is recorded in this register. Both customer and bank
are facilitated by cheque book.
Reissuance of Cheque Book
A customer must ask the bank to reissue the cheque book when there are two to three
pages left in the cheque book. For this purpose customers have to fill the requisition slip

Page 45

which is attached to the existing cheque book and then it is submitted to the further
bank authorities. After this cheque book is rewarded to the customer.
Loss of the Cheque Book
If there is any case of losing the the cheque then new cheque book can be taken by
doing the simple tasks. For this a customer must block his lost cheque book and then
get a new cheque book by writing a stamp paper in which it is mentioned that the
customer is responsible for any kind of misuse.
5.4.4.2 Local remittance department
Operations/activities performed by Remittance Department
Three instruments are used by the bank alfalahs remittance department inorder to
perform the operations which are given below:

Demand draft

With the help of this money can be transferred from one end to another end.
DD is basically issue from banks in 2 ways:

In cheque

In cash

When demand draft is issued then bank manager passes the entry that the demand
draft to its customer account to be credited and the head office is debited and when the
payment is made similar entry is reversed.
Demand Draft Misplacement
When DD is misplaced or lost firstly the inform the person who buy the demand draft
then that person have to go to bank where it is issued. Then after this bank contacts the
other bank, who receives the DD it would be asked to the other bank whether DD is
Page 46

outstanding or not. If DD is outstanding then bank that receives that particular DD

would stop payment
Agency Arrangement
The places where bank Alfalah has not any branch here bank make agreements with
other banks through which Bank Alfalah can draw the demand drafts. Here the agency
earn commission on each transaction.
Cancellation of DD
For cancellation of DD the customer writes an application on which signatures of both
manager and customer takes place afterwards Rs. 1oo would be charged to the
customer who is cancelling the DD.

Pay order

It is also a type of remittance instrument this is most effective way of transferring

money from one place to another place mostly it is used within a city. It is a very safe
mode of transferring the money from one account to another. Due to public awareness
now a days it has become more useful.
For completing its work it takes maximum 2 days. A number is given by the bank when
pay order is being developed due to which bankers can calculate the annual number of
pay orders.

PO can develop in two ways:

Through Cash

Through Cheque

Firstly customer asks to banker for the pay order then a form is given to the customer
which is after filling it the amount is deposited in the bank for the pay order. The
account holder in a bank can also give a cheque for making transfers. After this finally
Page 47

bank issues the PO to the customer and Rs 10 are charged by bank as fee of issuing
the pay order. Bank also makes some entries when a bank issues the PO bank credit
the account of sundry credits and when any PO is presented for cash then this entry will
reverse.
Cancellation of Pay Order
It is up to the customer that if he wants to cancels the pay order then obediently cancel
the pay orders.
Work on the request of account holder for demand draft and pay order
As a internee I have performed my job for those customers who come in the bank for
the purpose of DD. For both of the customer and bank it is a simplest way to complete
the steps for DD. Firstly for getting the DD you have to go to the counter of remittances
department here the customer has to ask for the DD as being an internee customer
come to me and ask me for DD then I ask for what kind of DD you want cheque DD or
cash DD then the customer the me the required information by the bank after this
customer gave me the cheque then I verify the cheque through its number and account
money then I took the signatures of the customer on the filled form then my supervisor
make some entries on the computer system.
5.4.4.3 Customer service department
This department has various services which are mentioned below:

Dormant reactivation
Issuance of cheque books
Stop payment
Issuance of form B
Safety deposit lockers

Dormant reactivation
When the customer does not use his account for more than the time period of 6 months
the that account would be named as dormant account for re activation the customer has

Page 48

to fill the form of dormant reactivation then after charging a very small amount account
would be re opened.
Requirements for dormant re-activation
Customer`s appearance
Photocopy of original CNIC
Updated KYC
Signature of both persons(in case of joint account)
Verification of signature
Issuance of cheque books
Cheque books are issued on 2 bases:
Form A also known as cheque book requisition:
For newly opened account this is a cheque book which is given to the customer it
contains 25 leaves.
Requirements:
Customer`s appearance
Letter of Thanks
Signature of Customer
Stamp of Bank
Cheque book order:
This cheque book is issued on the order of the customer. This cheque book contains
25 or 50 leaves according to the required option of the customer.
Requirements:

Customer`s appearance
Signature of customer
Stamp of Bank

The customer must receive the cheque book within the 90 days otherwise bank has the
option to destroy that cheque book and bank must inform to the customer before 30
days of completing the 90 days.
Stop payment
Customer asks to the bank to stop the payment of cheque Fee of stop payment per
cheque is 200 rupee in bank Alfalah.
Issuance of form B:
Two conditions apply
Page 49

 Cheque book lost

If in case of losing the cheque book then a customer must inform its bank to block that
cheque book and then bank is liable to issue the new cheque book to the customer for
making daily transactions.
Requisition lost
If in case of losing the requisition then stop payment is not compulsory or necessary
Charges of form B issuance are 250 rupees.
Requirements

Customers ID
Customer`s request
Customer`s acknowledgment

Safety deposit lockers

The lockers provide the facility of safety deposit locker through which customers can put
up their jewellary, personal documents etc. These lockers facility are only for account
holders. Bank Alflah provides 3 types of lockers which are named according to their
sizes.

Small size
Size of small locker is 2 by 4 feet in bank and lockers yearly rent is 2000 rupees with
4000 security which is being deducted at the time of handing over the locker to the
customer and it is refundable.
Medium size
Size of medium locker is 3 by 5 feet and its annual rent is 3000 rupees with 6000
security.
Large size
Size for large locker is 4 by 6 feet and its per year rent is 4000 Rs. with 8000 security.
Page 50

5.4.4.4 Clearing department

Stamps put on the cheques
When the customer gives the cheque in the favor of depositing in to another account
then there are certain stamps of banks which are made.
Crossing the cheques
It means the cheque which is crossed by two parallel lines by the manager of the bank
this cheque is drawn for the purpose of account to account transfers. There are two
types of crossing for this purpose one is simple and one is special. In case simple
crossing the account holder simply draw up two parallel lines on the cheque, anyone
can withdraw the amount of that particular cheque but in case of special crossing only
the authorized person makes the special crossing by stamp on the cheque along with
the two parallel lines on the top corner of the cheque. There is the benefit of the special
crossing which is that money is safe and there is not fear of loss or theft.
Clearing stamp
This is the stamp which is spotted in the front side of the cheque. Clearing stamp is also
spotted on the special crossed cheques for this purpose bank need a whole day, so that
the cheque is available for encashment up till to the next day. This stamp is put on the
front of the cheque.
Endorsement stamp
This is a type of stamp through which the account of the customer is credited and the
stamp is placed on the back side of the cheque.
National institutional facilitation authority
When these stamps has been done then this is the department NIFA which plays the
important role by collecting the cheques from different banks and it gives these cheques
to their particular banks.
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 Send report to the bank

The banks staff tally the amount of that report for its own record after sending the
cheques to different banks .NIFT send report to bank Alfalah jalal pur jattan,
Delivered cheques to respective banks
At the time

when cheques are arrived to the related banks on that time the cash

department of the particular bank makes some amendments for the settlements for the
clearing cheques the bank then debit the account if customer cheques correct in all
perspectives for example it well written the there is enough money When the cheques
are reached to the banks from which they are related. After this the authorized person
returns the cheque by attaching the certain reasons on it.
Credit the Customer Account
When the cheque clears all the specifications in its accounts the bank alfalah credit the
customer account an reducing its liability from the customer account. If the inverse
situation happens then the bank put up its entry on outward register of account.

Procedure of settlement
Suppose Bank Alfalah has got the cheques which are drawn on bank A, bank B, and
bank C for Rs.50, 000, Rs.20, 000, Rs.30, 000 and in total Rs.100, 000/-. It means that
NIFT will definitely credit account of the bank Alfalah with 100,000. While on the other
hand when different banks draw some cheques on bank Alfalah like bank A, bank B
and bank C of Rs.20, 000/- Rs.50, 000/-, and Rs.30, 000/- respectively, its total Rs.100,
000. It means that NIFT debits the bank Alfalah account with 100,000/-. There is no

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difference between Rs.100, 000/- credit and Rs.100, 000/- debit which means the house
is in balance bank Alfalah for these kind of transactions
Settlement sheet
The settlement sheet which is developed by the bank for its personal record in which
bank have the complete details of checks which the bank Alfalah have drawn and
which are drawn on the bank Alfalah to others bank for clearing purpose this sheet is
developed and it contains the cheque number and its amount as well. This sheet is
helpful for both of the bank and customer through it if any misplacement is occur can be
resolved
5.4.4.5 Funds transfer department
I have learnt that how to transfer the fund from one country to another country through
money gram or Alfalah bank to Alfalah bank online under the supervision of Mr. Awaisur-Rehman. He is very hard working and experienced person. The whole work of this
department is based on computer and I have an interest in computer based work. So it
is easy for me to understand and work in this department.
Secure and reliable
Money gram has a wide range network all over the world. Money gram whole process is
based on computer and it is connected with other computers in different countries
through internet. It is a safe and easiest way to transfer money from one country to
another.
Convenient and fast
Money gram is the only one thing which is in service all over the world more than
250,000 places worldwide. Money gram is very faster and convenient mode of
transferring the money from one place to another it just takes 5 min to 10 min to transfer
money while the other mode of transfers takes the time may be in days. With the help of

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money gram you can transfer the money by using your CNIC and there is no
requirement of having any bank account.
Free message service (for senders)
The person who sends you the money has the facility to send the 15 words message to
the receiver.
5.4.5 Detail description of task assigned to me in internship

Opening customers account

Issuance of the cheque book to customer
Reissue the cheque book if customer has lost his cheque book
Adding up the deposits in the account of the customer
Type of documents which are important for both of the customer and banker
Excluding the accounts which are not necessary
Issuance of demand draft
Reactivation of dormant accounts
performing the clearing in the system regarding inward and outward.

5.4.6 Summary of learning

5.4.6.1 What skills and qualifications which I gained from my internship
Communication Skills
Communication and skills is the main factor which is required by anyone in order to
perform any task in any kind of job. By doing internship here I have gained a lot in terms
of communication and skills.
Conceptual Skills
I have performed my duties as an internee in the bank in the very complex situations
due which I have increase my conceptual skills regarding banking system.
Interpersonal Skills

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Interpersonal skills are very important this increase both the communication and
conceptual skills of any person and it is also the requirement of the bank that its
employees must have interpersonal skills in order to co ordinate with its different
customers. As an internee I have made good relations with customers and with the help
of this my personality is built up which is helpful for me in professional life.
Stress Management Skills
During the time of internship as an internee, being in the arrival to the new
environment , work pressure and in time of work understanding I have faced the stress
in daily routine so no I am able to work under difficult and hard situations
Office Working Skills
This is the first experience that I have gained from the internship I have performed my
duties in order to manage the files and dealing with different clients.
Co-Ordination
In the business world your survival is only possible with the help of co-ordination with
different workers and colleagues. Co-ordination is the only factor with the help of which
you can work efficiently and this creates the synergic effect.
Time Management Skills
During my internship experience I have learnt the factor of punctuality and I work with
regularity with the help of this my time management is improved for example by
completing my tasks and completing them before deadlines.
Human Skills
By doing my internship I have learnt how to perform the job under the delegation of
supervisors and how to take work from sub ordinates this improve my skills towards all
the humans.
Self-Control
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Self-control is that how much you have the ability to keep yourself in control during the
wrong actions and how you keep yourself calm during frustrated situations.
5.4.6.2 Responsibilities that I have undertaken during my internship
Still I am a student and I am not a professional in banking sector , This is first time in my
life that I am going to perform any kind of job which need a serious natured persons. I
have done a lot of activities during my internship program which are assigned to me by
my supervisors of different departments of bank Alfalah.
Account opening department as u know is the most important department of the
banking sector which increase the deposits for the banks I have performed my job
here.
In this I have learnt about clearing the cheques and get the know how about the
stamps which are required for different purposes.
In the issued the pay orders and demand drafts on the request of different
customers.
As an internee I have worked to issue the cheque books to those customers who are
new to the bank and they in the requisition slip taking process
I worked In the department of funds transfer which is quite interesting thing because
all you need the whole work is done in computers and with the help of this bank
alfalah is affiliated with the money gram.
5.4.6.3 The internship will be influence my future career plans
After completing my internship I am in a good position and satisfied with my experience
which I have gained during my work. By doing this I have gained a bundle of banking
knowledge now I have got the guidance for my career and I am confident enough now
to face and understand the market situations which are very beneficial for me in order to
survive in the market. And it is my recommendation to all the students to go for
internship because it is very helpful to their career and professional point of view.
5.4.6.4 How do you think the internship activates that I carried out are
Correlated with class room knowledge
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The things which I have studied in the class room provide me the base of the practical
experience. I have learnt different and cope up with different new things in the bank
which I just studied in the books. Well I must say that bookish knowledge is also
required because it is very helpful for doing the job in an easy manner but the main
thing I must say is that practical knowledge provides you more than that of bookish
knowledge. After the arrival of me into the bank there were different surprising activities
I saw that everything was well settled and disciplined. The subjects that I have studied
in the class room are very helpful for to implement the knowledge during internship
program which are also helpful for me to communicate with different people.
6. Conclusions of the report
6.1 Conclusions derived from the experience of internship
In conclusion I must say the experience that I have got is very helpful for me in future
because it optimized my gains and findings of internship. And the practical work
experience is the main and very important factor for the progress of your career and
class room knowledge cannot sacrificed because the classroom knowledge is the basic
thing. By doing the internship I come to know that whatever things are studied in the
books are not implemented in the way as they were because there are many social and
environmental factors are there which affect you decision. Being a student I have a
believe that internship is the starting point of your career and I am very much confident
by doing the internship program because it has enhanced my communication
conceptual and working skills
6.2 General observation about the bank Alfalah
Bank Alfalah is fast moving a way towards progress in last five years time period not
only just in profits but I must say in terms of market share also. Afterwards up to my
experience from bank alfalah I must say this bank has a bright future and bank should
do some further steps for its further expandments and achievements and also it must go
for the customer satisfaction and relations.

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Bank Alfalah is the bank which deals with its customers in a great way its staff is very
helping towards the customers of the bank and one and the main thing to be noted is
that bank alfalah is the only bank which introduced the ATm before any other bank.
6.3 SWOT analysis
The SWOT analysis of Alfalah will explain you internal and external condition. These
following areas are cover.

Strengths
Weaknesses
Opportunities
Threats

Strengths

Excellent reputation in the banking market

Alfalah has a excellent condition in market and it is well backed up by the Abu dabi
group. Bank Alfalah has good talented staff members who always create new and new
products for customers. In bank Alfalah innovators are always encourage.

Well-built branch network

Bank Alfalah is only bank in Pakistan which has a huge network of branches not in the
Pakistan but also outside the boundaries of Pakistan. So when a bank has a great
branch network so it means that there is s huge acceptability of customers.

Trained, Skilled & cooperative employees

There are few organizations in market who have the employees as strength, bank

Alfalah one of them, bank Alfalah prefer trained and skilled employees for jobs but bank
Alfalah also trained the new employees who has no privies experience.

Reasonable service charges

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As a good customer you chose that product which is low in price and high in quality so
bank Alfalah have both features.

Highly automated bank

Bank Alfalah has also the look of new generation so bank Alfalah is only in Pakistan
which use the more computerized systems for the safety of public assets.
Weaknesses
There are also some weak points of Bank Alfalah which are discussed below.

Insufficient advertisement

Bank Alfalah has good reputation in market all other banks know very well but public
who are the customer of bank Alfalah not so much aware of it. The reason ot it is tht
bank Alfalah not properly and regularly use the commercial channels.

Behavior towards customer

Bank Alfalah reputation is very high for customer most of people thin that this bank only
for rich and wealthy people I think employees should change their behavior for the poor
people and focus on them.

Mismanagement of time

Bank Alfalah is failed to manage the time for its employees. As you see that only bank
Alfalah is open till 8, 9 pm for employees. Their employees mostly work in over time for
the bank.

Overloading of work on employees

Many of bank Alfalah employees are overloading of work which directly affect the
efficiency of work and reduce the satisfaction level of customers as well.

Few branches has ATM facility

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There are few branches of Bank Alfalah which facilitates to its customers with ATM
facility.
Opportunities
Opportunities for bank Alfalah:

Emphasis on information technology

Today all banks have focus on technology so the technology is very important factor for
any kind of business so bank Alfalah also focus on the technology and create innovation
in IT sector as well.

Increase in Branch network

Bank Alfalah has a great acceptability in market so bank Alfalah have to focus on the
extension of bank branches to target more and more customers.

To be in the list of top banks

Bank Alfalah is at 5th number in banking market this is very fibulas achievement in a
short period of time. So bank Alfalah can avail more and more opportunities at get the
top position.

Effective Marketing strategies

Bank Alfalah have to adopt that strategy which are effective in manner of satisfying
more and more customers. Bank Alfalah have to quickly identify the needs of customers
before they demand.

Threats
The threats from which Bank Alfalah should be aware of are:

Government policies
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The government of any country has their own limitations for the bank so bank Alfalah is
also limited by the government of Pakistan. Bank Alfalah has to follow the instruction of
the government which are implemented by the state bank of Pakistan.

Increased competition in banking market

The banking sector is very competitive industry know the reason is that many new
competitors has arrived in the market, so for the survival in the market bank Alfalah
should high the standard of quality of product and services.

Unstable economic situation

It is the most important factor which effect the banking industry most. It is directly
related with the customer purchasing power and using of resources. When customer
has good economic condition in country he will invest more in business and the flow of
money increase.

Customers high expectation

It is obvious thing that when you deal with customer and provide him good quality then
he never ever downs his expectation.
7. Recommendations
Now I would like to give some recommendations on the basis of my experience which I
got from Bank Alfalah
Bank Alfalah is the famous bank in Pakistan and it can use the market penetration
strategy to attract more customers and increase the market share.
Bank Alfalah should enhance the sector of Information Technology.
Bank Alfalah should introduce the Islamic banking system which regulates the
banking system according to the Quran and Sunnah.
According to my opinion bank should hire fresh graduates who are talented due to
which new marketing strategies can be promoted.
If would be the part of the strategic management then I would give privileges to the
employees because employees are the main rout of the organization.
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 Bank Alfalah has the good image in the foreign countries so it must increase its
relations with the other countries.
This bank has the good future so according to me bank should implement the new
strategies to remove its weaknesses so that it gets more progress.

8. References
I.
II.
III.

Stephen P. Robins, Timothy A. Judge (2008) Organizational Behavior, Upper

Saddle River New Jersey U.S
Stephen P. Robins, Mary Coulter (2006) Management, New York
Corporate
Information
(2011)
Bank
Alfalah

Ltd,

http://www.corporateinformation.com/Company-Snapshot.aspx?
IV.

cusip=C586P0C00
Blue Chip Magazine

V.

http://www.bluechipmag.com/bc/content_detail.php?content=241
Bizcovering
(2010)
Remittances
Department
of
Bank

VI.

(2010)

Bank

Alfalah-

The

Caring

Bank
Alfalah

http://bizcovering.com/business/remittances-department-of-bank-Alfalah/
Business Recorder (2011) Bank Alfalah Ltd Analysis of financial statements
http://www.brecorder.com/index3.php?
show=detail&id=1084466&currPageNo=1&query=&search=&term=&supDate=

VII.

Scribd (2010) Bank Alfalah http://www.scribd.com/doc/19345089/Bank-Alfalah

Bank Alfalah Limited (2008) http://www.bankAlfalah.com/

VIII.

Annual report of 2009 Business Volume of Bank Alfalah

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