ACKNOWLEDGMENT

In The Name of Allah, the Most Beneficent, the Most Merciful

With all our hearts, we are very obliged to the Almighty Allah, by the
Grace of Whom we have able to present this informative and useful report.

First, we would like to thank our respected teacher M. Usman Haider, for
his encouragement, motivation and guidance for completing this report. We
sincerely acknowledge his kind efforts, without which this report could not
have been compiled. His expert comments and advices deserve special
credit and recognition, which would also be a source of inspiration for us in
future.

We also thank to all our friends and classmates who helped us throughout this report and
for their valuable suggestions
Bank Alfalah

History of Bank Alfalah

Story of Bank Alfalah starts from Bank of Credit and Commercial International “BCCI”.
BCCI was incorporated in Luxembourg on 21st September 1972 with the paid up capital
of US $ 2.5 million. By early 1973 BCCI has established its first four branches in three
countries.
• Luxembourg
• UAE
• UK
With the passage of time the branch network of the bank expanded rapidly bin different
regions of the world i.e. Far East, Middle East, Africa, Europe and Western and Latin
America.
Its founders were an influential and professional team possessing an intimate knowledge
of East Asian and Middle East countries, particularly those with oil resources and
expertise for sophisticated of three most important elements in the early formation of
organization, e.g.
 • Investors from the oil producing countries of Middle East
• A business connection in expanding markets
• A well developed and fully equipped management structure
Branches of BCCI in Pakistan
There were three branches of BCCI in Pakistan. These were
• Karachi
• Lahore
• Rawalpindi
The Lahore branch was opened on 15th December 1978. This branch was opened at that
time when some other international banks like Citi Bank, Bank of America and American
Express etc. were already working. But within a few years this branch crossed mostly all
other banks in case of deposits, advances, imports and exports dealing, guarantees,
traveler’s cheques, sales etc.

Liquidation of BCCI (Bank of Credit Commercial

International)
This bank was going successfully but an international conspiracy compelled its
management to stop its operations. BCCI was liquidated on July 5, 1991. At that time
bank was operating in almost 69 countries of the world. Branches of BCCI in Pakistan at
that time were taken over by Ministry of Finance and SBP.
Habib Credit and Exchange Bank
Banks started its operations with HBL with the name of Habib Credit and Exchange Bank
“HCEB” after valuation of its assets for 15 million Dollars.
Habib Credit and Exchange Bank Limited were incorporated on June 21st, 1992 as a
public limited company under the Companies Ordinance, 1984 and it’s commenced
banking operations from November 1, 1992.
HCEB was privatized on July 7, 1997. Management was taken over by Abu Dubai based
consortium. The bank was sold for Rs. 1.7 billion and government sold its 70 % share.
Bank Alfalah
Following the privatization in July 1997, Bank Alfalah Limited emerged as the new
identity of Habib Credit & Exchange Bank with a revived purpose and commitment on
February 25, 1998.

Charged with the strength of Abu Dhabi consortium and under the leadership of His
Highness Sheikh Mubarak Al-Nahayan, the bank has already made significant
contribution in building and strengthening both the corporate and retail banking in
Pakistan.

Present Status:
Despite adverse economic conditions of country, the year 2009 was a milestone for the
bank, both in terms of growth and profitability. The bank’s pretax profit for the year grew
to Pak Rupees 40.01 billion, an increase, with a balance sheet footing of Pak Rupees 46.6
billion compared to previous year’s figure of Pak Rupees 21.02 billion.
After doing successful business in year 2007 to 2008, Bank Alfalah is now looking
forward positively towards the future and its management is confident to build on the
gains realized during 2008. Currently bank is emphasizing on expanding its operations to
meet client’s needs and for this purpose management has plans to add more branches to
existing network in the coming years. Bank has already started its working to go
internationally and its future target markets include UAE, Bahrain, Bangladesh and Sri
Lanka.
Technological developments are opening up new vistas of solutions for distributing
traditional financial products. Concurrently, rapid change in customer preferences has
resulted in a major shift from manual to automated services. Information Technology
today, is all pervading in the corporate world. Bank Alfalah made heavy investments
towards enhancing its capabilities in the area of automation and information technology.
Information Technology department of bank has successfully developed an advanced
computer program named BANK SMART. Their current investments of this year
75,973,238 millions.
Another success of bank is in the area of foreign trade. Bank has developed excellent
business and correspondent relations with renowned banks of the world whose support in
terms of lines of credit has enabled it to handle ever-growing trade volumes.
From above stated facts it is very clear that bank has made remarkable achievements
within a short period of time despite being in the nascent stage. With its key indicators of
progress already soaring to new heights, the bank is committed to put all its energies,
resources and time to bring higher value and satisfaction of its customers, employees and
shareholders.

Mission & Objective

.
Bank Alfalah provides stability and growth of a financial institution along with the care
and attention the customers receive from a neighborhood bank.
They ensure consistent quality service with the continuous innovation of their teams.

They are committed to put all their energies, resources and time to bring higher value and
satisfaction to their customers, employees and shareholders.

The introduction and development of innovative financial instruments will be another

major objective of Bank Alfalah Limited.

Branch Network
Bank Alfalah’s objective has been to expand its branch network to meet clients’ needs.
They have embarked upon a rapid expansion program to make sure that their services
reach more and more people. The bank is well positioned and geographically poised, to
cater for increased business demands. During the year they have opened many new
branches, which spread all over Pakistan covering major business centers and principal
cities. They plan to add more branches to their growing network in the ensuing years.
They are headed towards an ideal network reaching all major urban centers and will soon
go international.

Their head office is in Karachi, but presently they are having many braches working in
other big cities of the country.
In total there are about 52 branches of Bank Alfalah countrywide.

Management

Mr. Sirajuddin Aziz Mr. Parvez A. Shahid

Chief Executive Co-Chairman Central
Officer Management Committee

Mr. Shakil Sadiq Mr. Arfa waheed

Chief Operating Group Head
Officer Corporate & Investment
Banking

Mr. Ijaz Farooq Mr. Adil Rashid

Group Head Group Head
Islamic Banking Consumer Finance
Mr. Nadeem Ul Haq Mr. Mohammad Yousuf
Group Head Group Head
Operations Credit & Collections

Mr. Bakhtiar Khawaja Mr. A. Wahid Dada

Group Head Group Head
Training & Development Commercial Banking

Mr. Hamid Ashraf

General Manager Mr. Zahid Ali H. Jamall
Legal Affairs & Chief Financial Officer
Company Secretary

Mr. Mohammad Iqbal Mr. Talib Rizvi

Saifee Group Head
Group Head Priority Banking & Wealth
Audit & Inspection Management

Mr. Ather Shehab

Mr. Tariq Mir
Executive Incharge
General Manager
Establishment &
International Business
Administration

Mr. Mahmood Ashraf

Mr. Falak Sher
General Manager
Chief Compliance Officer
Credit Monitoring

Mr. Imtiaz Ahmad Mr. M. Mudassar Aqil

Sheikh General Manager
General Manager Human Resource &
Information Technology Quality Assurance
 Mr. Haroon Khalid
General Manager
Risk Management

Bank’s original structure

ALFALAH BANK

OPERATIONS
Teller scheduling
Check clearing
Cash collection
Transaction processing
MARKETING
FINANCE Facilities
Loans
Investments (design,layout)
Commercial
Securities Vault operations
Industrial
Real estate Maintenance
Financial Security
Personal
Mortgage
 Accounting

Trust department Auditing

Products & Services

The bank’s primary objective is to provide a wide range of financial products and
services to individuals and various other entities in the country.

They are continuously formulating new products and services for the growing and
diversified needs of their ever-expanding client base.
Bank Alfalah has launched Credit Cards, ATM Cards, and plans to further expand its
online facilities.
Following are the major products of Bank Alfalah Limited, which are prime examples of
quality innovation, providing timely banking opportunities to their customers:

 Deposits
i. Saving Deposits
ii. Notice Deposits
iii. Royal Profit
iv. Royal Patriot
v. Royal Group
vi. Term Deposit
 Advances
i. Funded
ii. Non-Funded
 Alfalah Car Financing
 RTC/TT/DD/FDD/FTT
 Credit Cards
 ATM
 Home Financing
 Agri Loan
 Karobar Financing
Operational flow chart for account opening (regular process)
 Operations of Account Opening

Account opening form

Introduction

SS Card

Requisition Form

Assigning acc Number

Deposit a mount

Letter of Thanks Letter sent to the customer

Customer verify to Bank

Requisition Form for cheque

book

Requisition Form sent to NIFT

Working and processing of old account opening process

Issue
The whole regular cheque
process takesbook
timetoofthe
2weeks because of so many steps involved in it.
customer
If someone wanted to open his/her account, first of all customer had to fill lot of forms
and give information sometimes irrelevant with this. Most of the customers specially in
our country which are illiterate cant get all of the steps and get confused and make
mistakes. the main reason behind all this was old legacy processing systems with slow
information handling with allot of data redundancy chances in it.
But if they involve some new system developments in it by some automation of
business process or reengineering of all the steps then the whole process will take less
than a week by merging some processes or redesign them. It will give some competitive
advantage to that organization due to their new system development and give their
customers more quality service in short time span.

Bank information
management system
(enterprise wide
management system)
SS card also Account opening form
Account opening form Introduction form
included
info included in it

Account Requisition Form

SS card also
included

Assigning acc Number

Introduction form
info included in it
Deposit amount

Send it by email or
Letter of Thanks any other fast means

Customer verify the credibility

to the bank

Bank immediately sends the

information to NIFT DATABASE

Bank issue cheque book to the

customers

Assigning account
number & letter of
thanks
Alfalah bank must introduce a database to cut off its initial account opening steps and to
make their process effective. Use of database will reduce the time consume for account
opening(both of customer and bank). It will also reduce the cost of bank i.e is the cost of
employees engaged in initial steps of account opening.

BANK NIFT
DATABASE DATABASE

Funds Management
Every bank in Pakistan has an account with State bank of Pakistan and has to
maintain 5% of the total deposit in the account with the State bank. Funds
management is done only through the main branch. If the bank has so many branches
in a single city then only the main branch is responsible for the funds management.
Daily a report was prepared and reported to State bank.
The important factors that affect the report are as follows:
 Total Deposit (of all branches in a single city)
 Opening Balance (closing balance of the previous day)
 Inward Clearing
 Outward clearing
 Cheques issued by State Bank
 Cheques Deposited

After all the calculations, a result is obtained which signifies the cash in hand of the
respective day. If the cash in hand is sufficient to fulfill the needs of the State Bank,
well and good other wise if the cash is not sufficient then the other options are
considered.

In case of shortage of funds, the main branch has the following options, which it can
adopt.
1. TT from Head Office:
2. Cover from Head Office
3. Funds from Other banks

1.TT from Head Office:

One solution of the problem is to contact and inform head office about our respective
position and demand for funds. However the most frequent reason, why this practice
is not followed is that State bank has allowed only one TT free of cost for all the
branches in Pakistan.

Therefore we first have to confirm head office that whether or not it is sending TT to
another branch of bank Alfalah. If the head office sends us the TT then it cannot send
any other TT to another branch of Bank Alfalah without charges. The charges are also
not negligible for example the charges of TT for an amount of one hundred million is
above 60,000. For this specific reason the TT is not encouraged.

2.Cover from Head Office:

The most frequent option used is to inform Head office about the shortage and ask for
cover. The head office then maintains extra amount in its account with State bank.
The extra amount will be the shortage of main branch reported. The main branch will
then pay interest to the head office on a rate of 11.5% per day. The head office is paid
on monthly basis.

3.Funds from Other banks:

 In case of funds shortage another bank is contacted with whom the bank has
settlement for instance Emirates bank. If this option is taken the head office is
informed and the head office then pays to the Karachi branch of the respective bank
from which funds are taken.

Regular loan process New proposed loan procedure

BANK’s
management LOAN section
Account form

Credibility

Credibility check on banks

own behalf

CLP (credit line

proposal)
Report to loan section of
bank

Capital

Credibility check by loan

department
Repayment
CLP report
Capital
Repayment
CIB
Loanreport
sanction
management
from
schedule
to SBP
customer
Sanction
CIB report
loan
from
to
SBPcustomer
the