Aqsa nawab internship report

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BANK ALFALAH LIMITED, Lahore
AQSA NAWAB
STUDENT ID: MBA-14-2006
SESSION: 2014-2018
SUBMISSION DATE: 20 - sep - 2017
UNIVERSITY OF EDUCATION
UNIVERSITY OF EDUCATION BANK ROAD CAMPUS, LAHORE

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LETTER OF UNDERTAKING
This internship report is submitted by Aqsa Nawab D/O Nawab Deen Roll
No. 2006 for the partial fulfilment of the requirement of completion of degree
MBA
Session 2014-2018
With specialization in Human Resource and hereby accepted by evaluation committee.
Name…………………
Signature…………….
Date………………….
UNIVERSITY OF EDUCATION
BANK ROAD CAMPUS, LAHORE

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Internship completioncertificate

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Dedication
I would like to dedicate my work to Beloved Prophet Hazrat Muhammad (S.A.W) who lead
towards guidance in all field of life and to my ever caring and loving parents. Their hopes
have always encouraged me to do my best. In university, I will pay my thanks to all
respectable teachers.

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Acknowledgement
In the name of Allah who is most beneficent and merciful he is the one who grant us with
Knowledge and courage of doing things that we are not worthy of doing. The completion of
this report was a difficult task to do which was eventually easy by the grace of Allah
Almighty. It was not possible to complete my report without the support and help of many
individuals.
I am grateful to all my teachers who gave me knowledge and enabled me to use that
knowledge into practical field during my internship.
I am also thankful to the staff at Bank Alfalah, Multan Road branch for being a help in
matching my class room knowledge with practical working process. Especially the branch
manager Mr. Irfan Iqbal and operational manager Mr. Faraz Baig. All the staff were helpful
and cooperative during my internship period.

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EXECUTIVE SUMMARY
As a compulsory part of the degree of MBA, I did my 6 weeks’ internship in a branch of the
Alfalah Bank Limited, located at Multan road Lahore.
An intern must prepare project report at the end of the internship period but the main
objective of the internship is to gain the knowledge and experience of the real-world
organization.
This is the complete report about Bank Alfalah. In this report, there is comprehensive history
of banking as well as bank Alfalah ltd. Bank Alfalah is a company sponsored by Abu Dhabi,
designed in 1998. Now a day’s bank Alfalah is calculated in Pakistan’s top 5 banks. It has
also won brand of the year award in 2008.
Basically, Alfalah bank divided its functions two types of banking. First is conventional
banking and second is Islamic banking. It has almost every department like cash, remittance,
account opening, and scanning/editing department. In this report, I have added SWOT
analysis, recommendations, conclusions, and details of the departments which are present at
that branch where I did iSnternship.

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Table of content
Contents Page #
CHAPTER # 1 INTRODUCTION
Overview of The Organization
Brief history
Introduction of the Bank Alfalah
Policy of Alfalah Bank
Competitors
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Organizational Structure of Alfalah Bank
Organizational Hierarchy chart
Number of employees
Main offices list of all departments
Comments on the organizational structure
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Plan of your internship program 17
CHAPTER # 2 INTERSHIP PROGRAM
Training Program
Reflective Journal Entries
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CHAPTER # 3 CRITICAL ANALYSIS
SWOT Analysis
PEST Analysis
Financial Analysis (Ratio Analysis)
Porters Five Forces Model
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CHAPTER # 4 CONCLUSION AND RECOMMENDATIONS
Conclusion
Recommendation
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CHAPTER # 5 REFERENCES & SOURCES
References & Sources
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Annexes 47

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OVERVIEW OF THE BANK ALFALAH LIMITED
a. Brief History of Bank Alfalah Limited
Bank Alfalah Limited is a private bank in Pakistan that is owned by the Abu Dhabi group.
Bank Alfalah was incorporated on June 21, 1997 as a public limited company under the
Companies Ordinance 1984. Bank Alfalah is the 6th largest bank of Pakistan with 648
branches in Pakistan and abroad.
b. Introduction of Bank Alfalah Limited
Bank Alfalah Limited started its life as “Pakistan Operation” of Bank of Credit and
Commerce and International (BCCI). The estimated assets of BCCI were 20 billion dollars.
The operations of the Bank were in 70 different countries of the World. In July 1991, the
Bank of England and International Liquidators accused BCCI of being involved in money
laundering to the tune of 1.54 billion dollars. When BCCI is banned, in 1992 the operations
of this institution were acquired by Habib Bank Ltd, and were run as a wholly owned
subsidiary by the name of Habib Credit & Exchange Bank (HCEB.In 1997 the ownership of
HCEB was transfer to Abu Dubai Group holding stake of 70%. The Abu Dhabi Group
comprises prominent members of the dominant family and leading businessmen of UAE.
The bank is engaged in commercial as well as Islamic banking and related services as defined
in the Banking companies’ ordinance, 1962.The main head branch of Bank Alfalah is located
in Karachi. The bank through its subsidiaries provides retail, commercial banking and
corporate finance products and services in the Asia Pacific, Pakistan and the Middle East.
It provides services such as lending loans and accepting deposits, finance leasing, credit cards
and money transfer services. It also offers advances to business, trade, industry and
agriculture. The bank offers services through its network of 648 branches that includes 157
Islamic and 11 foreign branches and remaining conventional branches. It has Conventional
Branches, Overseas Branches, Sales and Service Centres, ATM machines and Islamic
Banking branches.

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Organization Profile
Bank Motto:
‘The way forward’
Mission Statement:
“We look at the market with fresh eyes
to find new opportunities, seek new ways
of enabling our customers to succeed and
advance the world of finance”.
Vision Statement:
“To Inspire and empower the people
to do things differently and shape
their own path in life and business”.
c. Policy of Bank Alfalah Limited (BAFL)
The policy of bank Alfalah includes cookie policy, privacy policy, citizenship condition, auto
loan policy, home finance policy.
Privacy
Users' privacy is very important to BAFL. The Bank is committed to safeguard the
information Users entrust to us.
The Information We Collect

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BAFL may collect personally identifiable information from Users in a variety of ways,
including, through online forms for ordering products and services, and other instances where
Users are invited to volunteer such information.
How We Use Information
BAFL may use personally identifiable information collected through our Website to contact
Users regarding products and services offered by the Bank and otherwise to enhance Users'
experience with BAFL.
Disclosure of Information
We may disclose aggregate, anonymous data based on information collected from Users, to
investors and potential partners.
Maintenance of Information
Information about Users that is maintained on our systems is protected using industry
standard security measures.
d. Competitors of Bank Alfalah
Majors are the following;
1. National bank of Pakistan
2. Habib Bank Limited
3. United Bank Limited
4. MCB bank
5. Faisal bank
6. Meezan Bank

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Organizational Structure
a. Organization Hierarchy Chart
Board of director includes:
Name Title
Nauman Ansari President, Chief Executive Officer &
Director
Islamic
banking

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Nahayan Mabarak Al-Nahayan Chairman
Khawaja Muhammad Ahmad General Manager & Head-Operations
Mirza Zafar Baig Chief Financial Officer
Mohib Hasan Khan Chief Information Officer
Abdullah Nasser bin Huwaileel Al-Mansoori Non-Executive Director
Khalid Mana Saeed Al-Otaiba Non-Executive Director
Abdulla Khalil Muhammad Samea Al-
Mutawa
Non-Executive Director
Kamran Yousaf Mirza Independent Director
Efstratios Georgios Arapoglou Non-Executive Director
Stockholders includes:
Name Equities %
HBL Asset Management Ltd. 19,246,000 1.20%
Tundra Fonder AB 10,112,000 0.63%
Atlas Asset Management Ltd. 7,281,000 0.45%
National Investment Trust Ltd. 5,872,522 0.37%
Parametric Portfolio Associates LLC 4,789,232 0.30%
ABL Asset Management Co., Ltd. 4,050,000 0.25%
KBI Global Investors Ltd. 3,361,030 0.21%
Baring Asset Management Ltd. 2,405,000 0.15%
Polunin Capital Partners Ltd. 2,044,500 0.13%
Global X Management Co. LLC 2,017,200 0.13%
b. No of employee:
Description Number of Employees

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Permanent 6,876
Temporary/ On Contractual Basis 695
Bank's own staff at the end of the year 7,571
Outsourced 2,438
TOTAL 10,009
c. Main offices of Alfalah bank:
 Head office
Address: B.A. Building, I.I. Chundrigar Road, P.O. Box 6773 Karachi-74000
Phone Number: 32414030-10
UAN Number: 111 777 786
Fax Number: 32461275
Email ID: customercomplaint@bankalfalah.com
 Head Office
Address: Gulberg Branch: 125/E-1, Gulberg-III, Lahore, Pakistan.
Landmarks: Autobham Road, Hafez Centre, Hyderabad, Latifabad, Pace
City: Lahore
Phone: +92-42-35877800, 35877801, 35877802, 35877803, 35877804, 35877805
Fax: +92-42-35812855
d. Departments in the main offices
The divisions working under Bank Alfalah Limited Head office are as follows:
 Administration
 Credit Management
 Investment Banking
 Human Resource
 Information Technology
 Planning & Budgeting
 Finance & Treasury
 International Division
 Inspection & Audit

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 Law Division
 Marketing & Development
 Trustee Division
e. Comments on the organizational Structure
Bank Alfalah is one of top 10 banks of Pakistan and provides different types of consumer
services to its precious consumer. Organizational structure has great importance as it is a base
for the success of any organization. There are many branches of bank in different cities and
employees are well organized too do the work duties. For the ease of work the work is
divided to department per the type of the work and no organization can be run if their
employees not doing their assign work or duties. Every employee knows his job clearly to
perform and communicated to authority.
As Alfalah bank comprises large number of branches in it the structure should centralized in
some departments that leads towards quick decision making before deadline.

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Plan of Internship program
a. Brief introduction of the branch:
I had completed my internship in the Bank Alfalah Islamic Multan road branch Lahore.
This branch was opened about to capture the market share of the huge customer base located
in Multan road. Because this is located at excellent position in the business point of view
capture residential areas as well. At the start, there is no any Islamic bank branch present in
that area so Alfalah Islamic capture a lot of customs.
The management of the branch are very friendly and take care of all kind of customers well
especially their sound customers.
Branch code
5526
Staff of Branch
There is total 17 members of staff in the branch. There is include three security guard and 2
sweepers and one tea boy while other management staff are following:
Position Name
Branch Manager Mr. Irfan Iqbal
Operational manager Mr. Faraz Baig
Relationship manager Mr. Anish
Customer Relationship officer Mr. Farooq Anwar and Mr. Ali Raza
Customer services officer Mr. Iqbal and Mr. Gulam Hassan
Business sales consultant Miss Ayesha Kawal
Business development officer Mr. Noman and Mr. Zohaib

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DMS Mr. Javeed
b. Starting and ending dates of internship:
Date of start Date of Ending Time
23 Aug. 2017 3 Oct. 2017 9 Am to 5 Pm
c. Departments Name and Duration
Department name where got training
I got training during my internship in the following department of the bank list are given
below:
 Service department
 Accounts opening department
 Scanning and editing department
 Clearing/Remittance department
 Cash department
Duration of the training in different department
The detail of the duration of the department are given below in which got training during
internship.
Departments Duration
Service department 2 week
Accounts opening 1 week
Scanning and Edited 1 week
Clearing And remittance 1 week
Cash department 3 Days

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a. DETAILED DESCRIPTION OF OPERATIONS OR THE
ACTIVITIES PERFORMED BY THE DEPARTMENT I
WORKED IN
I had work in the following department are:
 Service department
 Accounts opening department
 Scanning and editing department
 Clearing/Remittance department
 Cash department
Service department
In this sales staff perform different duties at regular basis include making calls of their
customers in behalf of bank for telling them about their services and ask different queries.
They also responsible for making call and inform customers about their check book that they
collect from branch and about check return to their customers.
Also, include floor management. All the employees of the branch’s sales department are
performing duty at the floor for at least an hour. They are basically facilitating the walking
customers come in the branch for account opening and come to avail other service. This is
very helpful for customers because when they enter in the branch a responsible person of
branch standing for their help and send them to their facilitator without any hesitation and
with the honor.
Account Opening Department
It is most important department of bank and its major source of income for bank. Following
procedure is adopted for this purpose.
Procedure of Account Opening
For new customers who want to open an account at Bank Alfalah has to fill a “Relationship
Contract”, which includes such information as follows. Step by step:
Title of Account.
Include the name of person who want to open an account
Personal and other information of applicant
Include contact number, address etc. But most important source of income.

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Next of Kin
Next to keen portion is important for securing the money of the customer in case of his/her
death of or any incident with the account holder. By this thing, the account holder specifies
and provide the information and data of the person who will be the owner of his/her money
after his/her death or any serious incident with him/her. If account holder leaves it blank then
bank will be the owner of his/her money.
Currency of Accounts
Bank Alfalah Islamic MRB deal in different currencies and account holder must have select
from them. These are PKR, USD and Euro
Zakat Deduction
IF customer don’t want to deduct zakat direct from account then they have to submit an
affidavit.
Bio verses:
Made conformation from Nadra and thumb impression should be fixed in front of an officer
of the bank.
Types of Accounts
The bank different types of accounts exist.
 Individual account
 Joint account
 PLS account
 Saving account
 Business account
1-Individual Account
Any individual or proprietor of business can open an individual account or Falah Mahana
Amdani account at BAF. This accounts can be opened with the minimum balance Rs/-10,000.
Requirements
 Signature of customer on back of AOF
 Mention next of kin (nominee
 Name and A/c introducer
 Verified sign of introducer

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 Customer signature admitted by officer
 N.I.C photocopy attached
2-Joint Account
When different people want to or need to share a single account it is called joint account. The
names of persons are written on the title of A/C and on S.S. card. Single person cannot open
joint A/C. Both persons have to sign on cheque. When two or more persons neither partner
nor trustee open account in their name is joint account
Requirements
 Sign of both customers on back of AOF
 Sign on joint account
 Name and account number of introducer
 NIC copies of both members
 Mode of operation
3-Profit & Loss Sharing (PLS) Account
. In this case customer, would be responsible for bearing profit as well as loss. The bank
would be within its rights to make investment of credit balances in the PLS saving accounts
in any manner. For withdrawal of larger amount, 7 days’ notice in writing is required to be
given
 Minimum balance is Rs.500
4-Saving Account
Saving accounts are opened on proper introduction with sums Of credit balance within
certain limit for individual (single, joint) institutions, companies, educational institutions etc.
5-Business Accounts
 Sole of Proprietor Account
This account is for those people who have his own business and he must be the solely owner
of the business.
Requirements
 Company stamp
 Declaration of proportion companies

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 Letter head
 Sign on AOF
 NIC copy
 Verified signature of introducer
 Sole proprietorship declaration
 Partnership account
Account title will be the name of partnership account
Requirements
 Sign of customer on back of AOF
 NIC copies of partners
 Partnership deed dually attested by notary de public
 Partnership mandate
 Companies rubber stamp
The account is opened in the firm name. All partners designate one or two persons to act
behalf of the partnership firm, all acts of the firm jointly
Scanning and Editing Department
Under this after opening account of customers the form should be scanned and send to head
office by using system software of ROSETA. All related bank document like deposit slips or
cheque and pay orders or payment slips, change of number or address request, ATM request
are scanned and then edited according to date and month vise and send to the head office.
Clearing and Remittance Department
The process by which cheque exchanged between the collecting and paying bank and the
ensuing financial settlement is called "clearing". This facility is provided by the State bank
Of Pakistan for offsetting of cross obligations between the different banks. Clearing is of two
types.
 Inward clearing
 Outward clearing

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Inward Clearing
When cheque drafts, etc. of our branch presented to us for clearing by the SBP. Cheque to be
honored by bank.
Outward Clearing
The cheque Of Other banks, which the account holder deposit in their accounts is, sends for
collection.
Clearing process (inward/outward)
All the cheque are received on one counter along with the paying slips duly filled in properly
containing of cheque and account holder. Counter folio of paying slip is handed over to the
customer by putting stamp for cheque received for collection for Bank Alfalah on it duly
signed by officer. These cheque are examined. These are then entered in to the system if
online than transfer the amount immediately and handed back blue slip to customer with
stamp of transfer.
If the cheque is not drawn on BAFL then cheque received and after stamp of receive took
side and send in clearing. Cheque of each bank are sorted and arranged branch Wise. All the
cheque are then entered the clearing system of bank. Print out of the clearing is taken and
details are attached.
Details Of these banks are then entered the clearing schedule containing number of cheque
presented and their total amount against the name of each bank. Then total number of cheque
presented to all banks and their total amount is written on the foot of that schedule, which is
checked with the clearing file.
These cheque are delivered to the respective banks in clearing house of SBP. In the same
manner, other banks present their clearing drawn on Bank Alfalah. Total number of cheque
and their amount delivered to other banks are received from them are written on the clearing
house schedule and handed over to the officer clearing house SBP.
After I proper scrutiny of cheque, verification of signatures and confirmation of balance in
the account, officer cash department pays these cheque by canceling and posting them in the
system.
If any cheque is not passed due to insufficient balance or any other reason, officer cash
department returns the same cheque by attaching a cheque return memo containing reason for
return.

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Cheque Book Issuance
When the account is open cheque book issue to the person to cash money. When customer
receive letter of thanks from bank then he come to branch and receive check book after the
submission of letter of thanks and signing a receiving list.
Dormant Account
If account holder is not made any transaction with in six month then his/her account freeze by
bank for security purpose. For reactivation, the customer must visit branch and file request
and do some paper work then his/her account reactivate.
Cash Department:
Cash department of Bank Alfalah work under the operations department. This department
performs the main function.
 Cash receipts
 Cash payments
Cash Receipts
In cash department depositors use deposit slip for depositing the amount into their accounts.
The officer checks if the deposit slip is properly filled up containing title of account, A/C
number, date and amount in words and figures. Then cash receiving officer, after twice
counted and matched with the deposit slips will handover cash to the customer. Cash
received stamp is affixed on the face of the deposit slip along with the signature of the cash
receiving officer. If the amount of cash is more than 25000 then operational manager
supervise that entry.
Cash payment:
First the cheque is presented by the customer or holder to cash payment officer. He verifies
signature then made entry in the system and paid cash to the customers.
b. DETAIL DESCRIPTION OF TASKS ASSIGN TO ME
I almost work in all department. In service department, firstly serve on the floor and interact
with the customers and assist them or fill their deposit slips and cheque especially for
illiterate or aged customers. While on the other hand my assigned task are making call to the
bank customers to inform about receiving check books or check return and to provide

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information about new services that bank offer. And attend calls on behalf of bank and
transfer to related person in the branch. Next in the account opening department my assign
task are to fill form of different types like new account opening, Hilal card request or
dormant account form and stamping. In the Scanning department, my task is to separate the
form and arrange them per date or month and write if any discrepancy is come from head
office and give to account opening department. In clearing and remittance department
basically I stamp the cheque and fill the pay order form and issue cheque book do related
paper work under the assistance of CRO and help them in preparing the clearing of the day.
REFLECTIVE JOURNAL ENTRIES
Day 1 (Wed) 23-8-17 The first day was the introduction day about the bank staff I interact
with them. And instructor guide me about the bank rules and
regulations its duty timing and overview of about its policies and the
especially about the services they are providing.
Day 2 (Thurs) 24-8-17 On the second day, the instructor gave the information about service
department in which include Floor management and others services
and explain its importance for an organization. At that day, I also get
session by branch manager. Firstly, took my introductory interview
ask some general questions and then explain me about the concept of
Islamic banking.
Day 3 (Fri) 25-8-17 Third day was working day I manage walking customer with
corresponding person and made interaction with customers and learn
how to fill slips and cheque of the customers.
Day 4 (Mon)28-8-17
Day 5(Tue) 29-8-17
I have spent three days in the Floor management. And manage
walking customers. And interact with them fill their slips and cheque.
This experience was very helpful for me I interact with of no. of the
customers on daily basis that boost my confidence.
Day 6 (Wed) 30-8-17
Day 7 (Thu) 31-8-17
On Thursday day instructor shift me in next stage of the service
department and give complete information about bank services. And
guide me about the way how they talk to their customer on call and
tell them about their services.

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Next day, my assign task is to making calls to the customers list that
provide me from bank and with them Eid greetings on the behalf of
bank to their valuable customers. .
Day 8 (Fri)1-9-17
Day 9 (Mon)4-9-17
Eid-ul-Azha
Public Holidays
Day 10 (Tue) 5-9-17
Day 11 (wed) 6-9-17
These day work in service department. First day after the Eid
holidays, my assign task is to making call to the new customers list
of the bank and inform them about all their different product that are
they offer on the behalf of the bank.
Next days in this department I continue to making call and complete
list. And this is my last day in this department so, Branch manager
took session with me and ask about experience. And he also answers
my queries.
Day12 (Thurs) 7-9-17 In this day instructor transfer me the account opening department.
Their Business development officers and customer relation officer
guide me detail information about how to fill the form and sign and
stamping on the documents of account opening.
Day 13 (Fri) 8-9-17 That day was working day in the account opening department. At
that day, Relationship manager took session with me he tell me how
to maintain relation with their customers and explain me its
importance for banking career.
Day 14 (Mon) 11-9-17
Day 15 (Tue) 12-9-17
Day 16 (Wed) 13-9-17
Day 17 (Thurs) 14-9-17
I have spent four days on the working in that department. And I fill
the account opening form of the customer with CRO.
Next day, my assign task is to take KYC of customers who come for
account opening for that i firstly ask the person about the type of an
account they want to open, information about their source of income
and tell them necessary documents that require for account opening. I
spent two days on doing customers KYC.
Next day my assign task deal with the dormant account customer and
assist them in their reactivation process of account. I did all related
paper work of the customers and hand over to respondent person.
In the last of the department, my assign task is to open an account of
the customer and complete its form, stamping and all related work.

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Day 18 (Fri )15-9-17 On that day instructor transfer me in the scanning and editing
department and give complete information about work and task that
perform by them on daily basis.
Day 19 (Mon) 18-9-17
Day 20 (Tue) 19-9-17
Day 21 (wed) 20-9-17
Day 22(Thurs) 21-9-17
In these four days, my task is to assist DMS and I separate all the
account opening form and deposit slips, cheque and vouchers and
arrange them per date and month vise and write if any discrepancy on
new accounts are come from head office and give to account opening
department.
In the last day at that department area relationship manager made
visit the branch and he took session with all employee of the branch
and discuss different strategies and answer queries for improving
sales. This is amazing experience for me because as intern I took
chance to attend that meeting and look how much hard work is
required for generation of business of bank and learn importance of
working in a team.
Day 23 (Fri) 22-9-17 At that day instructor transfer me in next department and give
overview of clearance and remittance department and explain how it
works. I took information about the issuance of cheque book, about
the inward and outward clearing.
Day 24 (Mon) 25-9-17 At this day, I had assist customer relationship officer in making the
inward and outward clearing, in inward clearing the cheque from
other banks are come to our bank for clearing.
Day25 (Tue) 26-9-17 On this day, I have learned that how to issue the cheque book and
assist in issuance. My assign task on that day is to made list of the
customer whose cheque book are come from head office but they
don’t visit branch to take. And make them remembrance calls for the
collection.
Day 26 (wed) 27-9-17 I have issued the cheque book to the persons. Take their signature
and submitting the form and verification process. Then cheque book
is issued to that person.
Day 27 (Thurs) 28-9-17 At that days, my assign task is to destroyed cheque book of all those
customers who are not come in branch to receive them with in ninety
days after issuance of cheque book even after making them

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reembrace calls.
And also, file the account statements requests of the customers
because of lasts days of the month. And make ensure that their
charges are deducted from their account.
Day 28 (Fri) 29-9-17 At that day instructor transfer me cash department and I gain
knowledge about the cash management and operation of locker.
Day,29 (Mon) 2-10-17 I have worked on making receipts and payments of cash. The person
came to deposit the money. He has filled the slip that I have given to
him. Then slip transfer to officer. The officer checked if the deposit
slip is properly filled up containing title of account, A/C number,
date and amount in words and figures, he then handover the cash to
the person/customer. The cash details are written on the back of the
deposit slip and are also entered in cash receiving register.
Day 30 (Tue) 3-10-17 This is last day of internship at that day I assist CSO for the
operation of lockers He guide me the process and then I made
verification of the customer from SS card and enter in the register
and write the check in time and took signature from that person.
Then customer go into in locker room and put his key with the
master key of bank and use after the use time out is mention.

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CHAPTER 3
CRITICAL ANALYSIS

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a. SWOT ANALYSIS
Strengths:
 Brand name
 Continuous and Phenomenal growth in profitability as its age is increasing
 Islamic banking
 Energetic workforce because most of the workforce consists of the young employees
 Highly trained, skilled and professional HR
 Ideal branch locations
 Attractive buildings
 Favorable, friendly & Healthy Working Environment
Weaknesses:
 Inexpert staff
 Insignificant stage of bank
 Lack oversize foreign network
 Work overload on employees
 Less banking experience
 Poor employee’s development and promotion
Opportunities:
 Increase in the demand of consumer banking
 Increase in the branch network in Pakistan
 Increase in the branch network at International level
 Growing Islamic Banking branch network
 Increased rate of interest
Threats:
 Uncertain economic conditions
 Privatization of the banks
 Terrorism
 Revolving policies of the State bank of Pakistan
 Lack of experienced workforce

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b. PEST ANALYSIS
Political
 Legislation: Rules and regulations about banking are very lenient in Pakistan.
 All the policies & processes for banks by SBP are fully executed & followed by all
commercial banks.
 Government policies: Policies by the government are supportive & encouraging for
the existing and new banks in Pakistan.
 Government is involved in making funding & grants decisions also taking initiatives
for the boost of agricultural and different other sectors of the banks.
Economic
 Economy is moving towards the boom now a day due to the economic policies of the
government.
 Taxes are being imposed on all the products and services with different rates. Taxes
are comparatively Iow in the agricultural sector.
 Earthquake has severally affected the economy Of Pakistan in the last few years but
unusual floods, rains are not common.
 Now these days’ interest rates are comparatively increasing because most of the
people are relying on loans. Exchange rates are decreasing and government is taking
initiative to make free trade with some neighbor countries.
Social
 Consumers are very much relying on banks & their attitude towards the banks is
increasing specially the new generation.
 People in our country are much religious and they focus on Islamic banking, refuse
the interest.
 Most Of the products of the banks need to have maximum advertisement for the
increase of sale.
Technological
 To maximize profits, along with new technology banks are launching new products to
reduce fixed costs.
 Banks in Pakistan have replaced all Old, manual systems with new technology of
computers. Transactions by customers are now easily held with this new system.

33
c. Financial Analysis
Horizontal Analysis of Balance Sheet
Amounts
2016 2015 2014 2013 2012
Assets Rs/- in Million
Cash and balances with treasury banks
127.62 107.46 87.03 105.45 100
Balances with other banks 16.37 28.57 21.26 60.61 100
Lending to financial institution 51.95 92.4 31.56 4.35 100
Investment -net 671.33 684.86 559.86 378.49 100
Advances-net 652.48 563.89 500.6 449.28 100
Operating fixed assets 31.39 29.84 27.22 25.56 100
Deferred tax assets - - - 2.08 100
Other assets 32.94 49.45 54.22 26.19 100
Total Assets 1584.05 1556.44 1281.72 1051.99 100
Liabilities
Bills payables 22.21 16.77 20.26 16.45 100
Borrowings 307.89 297.01 95.16 39.83 100
Deposit and other accounts 1104.09 1102.85 1043.97 905.4 100
Sub-ordinated loans 14.33 17.2 17.21 17.22 100
Liabilities against assets subject to finance lease
- - - - -
Deferred tax liabilities - - - - -
Other liabilities 25.57 26.28 25.22 18.16 100
Total liabilities 1479.08 1463.24 1203.21 997.03 100
Net Assets 104.97 93.2 78.51 54.97 100
Owner Equity
Share capital 27.49 27.39 27.35 23.25 100
Reserves 27.39 24.41 21.26 12.54 100
Unappropriated profit 30.63 22.08 17.39 12.93 100
Total equity attributable to the equity holders
of the Bank 85.5 73.87 65.99 48.7 100
Non-controlling interest - - - - -
Surplus on revaluation of assets - net of tax 36.52 18.86 12.08 6.27 100

34
104.97 93.2 78.51 54.97 100
Comments on Horizontal Analysis of Balance sheet
The horizontal analysis of the balance sheet of the bank give the positive trend. The trend of
cash is increasing to upward with 127.62%. The trend of Total asset is also increasing to
upward with 1584.05%, and the trend of total liabilities is also increasing with 1479.08% to
upward. Equity is increased by 104.97%.

35
Vertical Analysis of Balance Sheet
Particulars Amounts
2016 2015 2014 2013 2012
Assets % % % % %
Cash and balances with treasury banks
8.06 6.91 6.8 10.03 10.82
Balances with other banks 1.04 1.84 1.66 5.77 4.98
Lending to financial institution 3.28 5.94 2.47 0.42 0.17
Investment -net 42.39 44.01 43.68 35.98 35.32
Advances-net 41.2 36.23 39.06 42.71 43.6
Operating fixed assets 1.99 1.92 2.13 2.43 2.57
Deferred tax assets - - - 0.2 0.1
Other assets 2.08 3.18 4.24 2.49 2.48
Total Assets 100 100 100 100 100
Liabilities
Bills payables 1.41 1.08 1.59 1.57 1.58
Borrowings 19.44 19.09 7.43 3.79 3.96
Deposit and other accounts 69.71 70.86 81.46 86.07 85.18
Sub-ordinated loans 0.91 1.11 1.35 1.64 1.1
Liabilities against assets subject to finance
lease - - - - -
Deferred tax liabilities 0.32 0.21 0.12 - -
Other liabilities 1.62 1.69 1.97 1.73 2.6
Total liabilities 93.38 94.02 93.88 94.78 94.4
Net Assets 6.63 5.99 6.13 5.23 5.61
Owner Equity
Share capital 1.74 1.76 2.14 2.21 2.52
Reserves 1.73 1.57 1.66 1.2 1.06
Unappropriated profit 1.94 1.42 1.36 1.23 1.19
Total equity attributable to the equity 5.4 4.75 5.15 4.63 4.76

36
holders of the Bank
Surplus on revaluation of assets - net of tax 1.2 1.22 0.95 0.6 0.85
6.63 5.99 6.13 5.23 5.61
Comments on vertical analysis of balance sheet
In balance sheet of bank the most important item is earning assets. Vertical analysis depicts
higher concentration levels of investments and advances in the asset base of the Bank. The
advances base of the Bank has posted moderate growth over the last few years due to the lack
of credit opportunities and intense competition. This has resulted in the decrease of advances
concentration in the asset mix from 43.6% in 2012 to 41.2% in 2016.

37
Ratio analysis
LIQUIDITY RATIO
Liquidity ratios measure a company's ability to pay debt obligations.
 Current ratio:
Current ratio = current assets /current liabilities
For 2012 For 2013 For 2014 For 2015 For 2016
0.565 0.571 0.603 0.645 0.604
Interpretation:
Ratio under 1 indicates that a company’s liabilities are greater than its assets.
ACTIVITY RATIO
Activity ratios measure a firm's ability to convert different accounts within its balance sheets
into cash or sales.
 Total asset turnover ratio:
Total assets turnover = sales / total assets
0.086 0.071 0.074 0.067 0.062
Interpretation:
In 2016, turnover ratios are high 0.062 mean the company is using its assets more efficiently.
While before 2015 to 2012 the company isn't using its assets efficiently.
LEVERAGE RATIO
A leverage ratio is meant to evaluate a company’s liability levels. The most common
leverage ratios are the debt ratio and the debt-to-equity ratio.

38
 Debt Ratio:
Debt ratio = total liabilities / total assets
0.91 0.91 0.90 0.91 0.90
Interpretation:
A debt ratio of 0.90 is less risky in 2016. As compare to 2014 or 2016, The Bank’s liabilities
are only 90 percent of its total assets. A ratio of 1 means that total liabilities equals total
assets.
 Debt to Equity Ratio:
Debt to equity ratio = Total debt / shareholders’ equity
16.19 17.50 14.76 15.20 13.66
Interpretation:
In 2016 risk for the shareholders was very low as compared to the other years decrease debt
to equity ratio was very small on the contrast risk was very high in 2013 because of heavy
financing.
PROFITABILITY RATIO
Profitability ratios are used to assess a business's ability to generate earnings compared to its
expenses and other relevant costs incurred during a specific period.
 Gross Profit Margin Ratio:
Gross profit margin = gross profit / sales *100

39
48.40% 54.87% 53.24% 57.69% 64.75%
Interpretation:
In 2016 company, gross profit margin is 64.75 %. That indicate a company is under-pricing.
A higher gross profit margin indicates that a company can make a reasonable profit on sales.
 Operating Profit Margin Ratio:
Operating profit margin = operating profit / sales *100
14.72% 15.48% 15.59 % 20.60% 23.32%
Interpretation:
In 2016 operating profit is 23.32%. shows the efficiency of a company controlling the costs
and expenses associated with business operations.
 Net Profit Margin Ratio:
. Profit margin = earnings available for common stock / sales *100
9.88% 10.63 % 8.75% 13.78 % 13.78%
Interpretation:
In 2016 net profit margin is 13.78% .in 2012-15 Company is making comparatively high
profit on each unit of sales as compare to 2016.

40
 Return on Total Assets:
Return on asset = earnings available for common stockholder / total asset *100
0.85% 0.76% 0.77% 0.83% 0.85%
Interpretation:
In 2016 ROA is 0.85% this means that has 0.85 of net income for every rupee of asset
invested. A lower ratio means a company is more asset-intensive, and vice versa. And a more
asset-intensive company needs more money to continue generating revenue.
 Return on Equity:
Return on equity = earnings available for common stockholder /
common stock equity
17.87% 16.54% 15.05% 17.49% 15.89%
Interpretation:
In general, equity ratios in the 15-20% range representing attractive levels of investment
quality. In 2016 ROE is more than 15% which means company is representing attractive level
of investment.

41
d. PORTER’S FIVE FORCES MODEL
Porter’s five forces model of competitive analysis is providing us a support to develop
strategies. Following are the various forces analysed:
Rivalry among Competitors Is High
Reasons:
 Large numbers of competitors
 Other banks have almost equal size and capabilities
 Customer can switch to other banks easily
 Barriers to leave the market are high
 Fixed cost is high
 Mergers and acquisitions are common
Potential Entry of New Entrants is Medium
Reasons:
 Mergers and acquisitions are common
 SBP has restricted commercial banking
 Islamic banking is widely promoted by State Bank of Pakistan
Potential Development of Substitute Products is Medium
Reasons:
 Loaning Institute
 Insurance institute
Bargaining Power of Supplier is high
Reasons:
 Large number of suppliers
 Strength of supplier
Bargaining Power of Buyers is high
Reasons:
 Customers can easily switch to other banks
 Consumers are as important for the bank
 Consumers are well informed about banks’ products, prices.

42
CHAPTER 4
CONCLUSION & RECOMMENDATION

43
CONCLUSION
During the period of my internship, I have found Bank Alfalah a financially sound bank. Its
profits are increasingly year-by-year. Its staff is very good and well-groomed during the
banking hours. Bank Alfalah under the leadership of its top management has made significant
progress in building and strengthening both the corporate and retail banking sectors in
Pakistan. The bank attained number 2 positions in terms of its balance sheet size amongst the
private banks in Pakistan in the year 2000. Bank Alfalah views specialization and service
excellence as the cornerstone of its strategy. The people at bank realize that innovation;
creativity, reliability, customized and their execution are they key ingredients for their future
growth. Revenues from these activities have started yielding dividends and they expect
significant growth.
They are aware that they have stepped to meet its challenges by acquiring the highest level of
the technology. They will thus be accelerating their technological advance to enable them to
distribute their products and services through most efficient and high tech means.
Their future are to continue to invest in the modern tools and substantial allocation of
resources will be made to achieve this objective during the current year and in the coming
years as well. Online banking has already been started and the introduction Of ATM at
strategic locations has prepared Bank Alfalah to stand in line with its competitors. The
competition in the banking sector Of Pakistan is very tough nowadays and the road to the
ultimate success is not quite steady but still armed with creativity, high quality services, fully
competent human resources and the continuous technological advancements Bank Alfalah
can reach its destination.

44
RECOMMENDATIONS
The bank's management must introduce new training programs in coordination with the HR
Department. This program should update the employees with the current economic situation
of Pakistan, the latest trends and the possible outcomes in the future. This program should
include training that would help the employees to deal in a much better way with the
customers. I detected that there is a lack of organizational citizenship in the employees of the
bank. The reason is that the profits which the bank is making due to their efforts is being used
to cover losses faced by the sister companies of Bank Alfalah and so Alfalah employees are
not getting raise in their salaries, bonus or other financial benefits. The top management and
the Board of Directors must find a solution towards this problem. Because if this continues it
will cause dissatisfaction among the employees. They will either leave the organization or
will not work with the same level of commitment. Bank Alfalah is in no position to face this
loss. The top management has to find ways to solve this problem soon and at the same time
what they can do is take some load off the employees’ temporality so that they don’t get over
stressed.
Secondly the bank should increase its advertising of products and services. Honestly, I think
that the top management is quite unwilling to spend money on advertising. This is beyond my
understanding. The reason might be that it is looking to save its funds but this is not the
proper way to do it. As stated earlier that the bank is fairly new and the staff including the top
management has less banking experience. This is one of main reason that it is not paying the
much-needed attention on advertising its products. Bank involvement in cricket advertising in
the Gulf region is commendable but it has to advertise about its products in the local print and
electronic media in the same way other banks are doing in Pakistan

46
REFERENCES
ahmad, salman. "Performance of Commercial Banks in Pakistan." 2012: 224-448.
Awan, Tafakhar Hasnain & Zahid. "IMPACT OF CURRENT APPRAISAL SYSTEM AND
TOOLS ON EMPLOYEES’ JOB PERFORMANCE: A CASE OF BANK alfalah kp." impact
of current, 2016.
Azhar Hameed, Shahzad Naqvi, Feroze Rizvi and Zeelaf Munir. "Bank Alfalah declared best
bank for 2017." Dawn,, 2017.
MEHDI, ALI RAZA. "BANK ALFALAHS EXPANSION." Dawn, Economic & Business,
2014.
SOURCES
 Personal observations
 Website: www.alfalah.com.pk
 Annual Report Bank Alfalah 2016

47
Annex’s
Balance sheet
Amounts
Particulars 2016 2015 2014 2013 2012
Rs in Million
Assets
Cash and balances with
treasury banks 7,40,71,394 6,23,68,827 5,05,15,645 6,12,04,697 5,80,44,054
Balances with other banks 94,98,787 1,65,83,138 1,23,34,368 3,51,79,983 2,67,20,993
Lending to financial
institution 3,01,49,029 5,36,28,870 1,83,13,485 25,22,022 8,76,870
Investment -net 38,96,66,922 39,75,16,448 32,49,60,872 21,96,90,369 18,94,86,762
Advances-net 37,87,24,300 32,72,99,560 29,05,68,379 26,07,79,850 23,39,33,358
Operating fixed assets 1,82,16,937 1,73,17,691 1,57,96,592 1,48,35,200 1,37,47,520
Deferred tax assets - - - 12,04,000 4,85,876
Other assets 1,91,15,471 2,87,01,223 3,14,69,458 1,51,98,170 1,32,72,536
Total Assets 91,94,42,840 90,34,15,757 74,39,58,799 61,06,14,291 53,65,67,969
Liabilities
Bills payables 1,28,86,990 97,33,929 1,17,58,155 95,43,480 84,30,910
Borrowings 17,87,10,629 17,23,93,198 5,52,32,916 2,31,15,102 2,12,27,834
Deposit and other accounts 64,08,54,225 64,01,37,161 60,59,56,904 52,55,25,770 45,70,44,400
Sub-ordinated loans 83,17,670 99,83,000 99,87,000 99,91,000 58,74,742
Liabilities against assets
subject to finance lease - - - - -
Deferred tax liabilities 29,11,531 18,26,270 8,21,038 - -
Other liabilities 1,48,36,925 1,52,49,463 1,46,35,222 1,05,37,195 1,39,30,764
Total liabilities 85,85,17,970 84,93,23,021 69,83,91,235 57,87,12,547 50,65,08,650
Net Assets 6,09,24,870 5,40,92,736 4,55,67,564 3,19,01,744 3,00,59,319
Owner Equity
Share capital 1,59,52,076 1,58,98,062 1,58,72,427 1,34,91,563 1,34,91,563

48
Reserves 1,58,95,652 1,41,64,120 1,23,38,026 72,74,222 56,36,549
Unappropriated profit 1,77,77,737 1,28,13,488 1,00,91,872 74,99,831 63,73,545
Total equity attributable
to the equity holders of
the Bank 4,96,25,465 4,28,75,670 3,83,02,325 2,82,65,616 2,55,01,657
Non-controlling interest 3,23,466 2,74,134 2,55,999 - -
Surplus on revaluation of
assets - net of tax 1,09,75,939 1,09,42,932 70,09,240 36,36,128 45,57,662
6,09,24,870 5,40,92,736 4,55,67,564 3,19,01,744 3,00,59,319

49
Income statement
Particulars 2016 2015 2014 2013 2012
Rs in million
Mark-up/return/interest
earned
57,245,259
61,404,178
55,374,052 4,39,61,060 4,60,79,918
Mark-up /return /interest
expense 28,474,583 3,28,10,469
3,34,94,344
27,066,229
2,75,00,056
Net mark-up/ interest
income 28,770,676 2,85,93,709
2,18,79,708 1,68,94,831 1,85,79,862
Provision for diminution of
value of investment - net 1,082,506 21,50,209
14,47,931 9,54,563 18,48,535
Provision against loans and
advances-net 1,00,766 1,36,691
85,897 94,797 17,08,833
Bad debts write off directly - - 5 4288 1,164
11,83,272 22,86,900 15,33,833 10,53,648 35,58,532
Net mark-up/return/interest
income after provision 2,75,87,404 2,63,06,809 2,03,45,875 1,58,41,183 1,50,21,330
Non mark-up/interest
income
Fee, commission and
brokerage income 51,21,885 45,70,382 45,45,819 28,00,461 25,36,717
Dividend income 4,79,251 3,49,963 3,13,950 4,82,567 3,49,061
Income from dealing in
foreign currencies 11,20,736 13,79,097
20,42,957 15,35,808 13,09,703
Gain on sale of securities-
net 15,19,335 15,34,994
10,58,167 15,88,895 7,61,890
Unrealized gain on
revaluation of investment
classified as held for trading
-net 109 2,29,063 1,60,098
8,465 1,511

50
Share of profit from
associates 5,31,852 3,09,017 3,31,238
- -
Other income 7,06,680 7,50,833 6,84,131 18,62,498 17,56,348
Total non-mark-
up/return/interest income 94,79,848 91,23,349 91,36,360 82,78,694 72,81,340
3,70,67,252 3,54,30,158 29482235 2,41,19,877 22302670
Non-mark-up/interest
expense
Administrative expense 2,37,08,444 2,21,19,740 2,02,01,113 1,72,88,779 1,52,04,036
Reversal / provision against
off-balance sheet obligations -7,508 1,066 38,453 2,100 -22,005
(Reversal) / provision against
other assets -1,06,138 3,22,391 3,58,935 -1,62,621 1,30,504
other charges 1,18,399 3,29,789 2,06,377 1,84,408 2,06,933
Total non-mark-up/interest
expenses 2,37,13,197 2,27,72,986 20,804,878 17,321,666 1,55,19,468
1,33,54,055 1,26,57,172 86,77,357 68,07,211 67,83,202
Extra ordinary unusual items - - - - -
Profit before taxation 1,33,54,055 1,26,57,172 86,77,357 68,07,211 67,83,202
Taxation –current year 47,29,131 50,36,065 31,23,661 24,00,321 31,41,909
-Deferred 11,23,431 -4,61,035 -2,72,194 -1,59,060 -7,54,828
-Prior years -4,37,633 5,67,813 38,427 -1,10,000 -1,60,000
54,14,929 51,42,843 28,89,894 21,31,261 22,27,081
Profit after taxation 79,39,126 75,14,329 57,87,463 46,75,950 45,56,121
Profit attributable
Equity holders of the Bank 78,89,794 75,02,660 57,65,251 - -
Non-controlling interest 49,332 11,669 22,212 - -
79,39,126 75,14,329 57,87,463 - -
Basic earnings per share 4.95 4.72 4.18 3.47 3.38
Diluted earnings per share 4.92 4.72 4.18 - -

51
Ratio analysis
Supporting Calculations:
CURRENT RATIO
Current ratio = current assets /current liabilities
Analysis:
years Current asset Current Liabilities Current Ratio
Rs in million
2016 503,386,132 832,451,844 0.604
2015 530,097,283 822,264,288 0.645
2014 406,124,370 672,947,975 0.603
2013 31,85,97,071 55,81,84,352 0.571
2012 27,51,28,679 48,67,03,144 0.565
ACTIVITY RATIO
Total assets turnover = sales / total assets
Analysis:
years Sales Total assets Total asset turnover
Rs in million
2016 57,245,259 919,442,840 0.062
2015 61,404,178 903,415,757 0.067
2014 55,374,052 743,958,799 0.074
2013 43,961,060 610,614,291 0.071
2012 46,079,918 536,567,969 0.086
LEVERAGE RATIO
Debt ratio = total liabilities / total assets
Analysis:
years Total liabilities Total assets Debt ratio
Rs in million
2016 832,451,844 919,442,840 0.90
2015 822,264,288 903,415,757 0.91
2014 672,947,975 743,958,799 0.90
2013 558,184,352 610,614,291 0.91
2012 486,703,144 536,567,969 0.91

52
Debt to equity ratio = Total debt / shareholders’ equity
Analysis:
years Total liabilities shareholders’ equity Debt to equity ratio
Rs in million
2016 832,451,844 60,924,870 13.66
2015 822,264,288 54,092,736 15.20
2014 672,947,975 45,567,564 14.76
2013 55,81,84,352 31,901,744 17.50
2012 48,67,03,144 30,059,319 16.19
PROFITABILITY RATIO
Gross profit margin = gross profit / sales
Analysis:
Year Gross profit Sales Gross Profit Margin
Rs in million
2016 37,067,259 57,245,259 64.75%
2015 35,430,158 61,404,178 57.69%
2014 29,482,235 55,374,052 53.24%
2013 24,119,877 43,961,060 54.87%
2012 22,302,670 46,079,918 48.40%
Operating profit margin = operating profit / sales
Analysis:
Year Operating Profit Sales Operating Profit Margin
Rs in million percentage
2016 13,354,055 57,245,259 23.32
2015 12,657,172 61,404,178 20.60
2014 8,677,357 55,374,052 15.59
2013 6,807,211 43,961,060 15.48
2012 6,783,202 46,079,918 14.72

53
Profit margin = earnings available for common stock / sales
Analysis:
Year
Earnings available for
common stockholders Sales
Net Profit
Margin Ratio
Rs in million percentage
2016 7,889,794 57,245,259 13.78
2015 7,502,660 61,404,178 13.78
2014 5,765,251 55,374,052 8.75
2013 4,675,950 43,961,060 10.63
2012 4,556,121 46,079,918 9.88
Return on asset = earnings available for common stockholder / total asset
Analysis:
Year
Earnings Available for
Common Stockholders Total Assets ROA
Rs in million
2016 7,889,794 9,19,442,840 0.85%
2015 7,502,660 9,03,415,757 0.83%
2014 5,765,251, 743,958,799 0.77%
2013 4,675,950 610,614,291 0.76%
2012 4,556,121 536,567,969 0.85%
Return on equity = earnings available for common stockholder / common stock equity
Analysis:
Year
Earnings Available for
Common Stockholders
Common stockholder’s
equity ROE
Rs in million
2016 7,889,794 49,625,465 15.89%
2015 7,502,660 42,875,670 17.49%
2014 5,765,251 38,302,325 15.05%
2013 4,675,950 28,265,616 16.54%
2012 4,556,121 25,501,657 17.87%

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