This document provides an overview of Bank Alfalah Limited in Pakistan. It discusses the bank's history, management structure, objectives, vision, mission, operations, competitors and departments. Some key points: - Bank Alfalah was incorporated in 1992 and began banking operations in 1997 after being privatized. It is majority owned by the Abu Dhabi Group. - The bank has over 300 branches across Pakistan and a few international branches. It aims to be a leading financial institution with competitive advantages. - Departments discussed include operations, accounting, clearing, remittances and account opening. The operations department oversees these functions. - Competitors include several major Pakistani banks such as H

1. DEDICATION
I would like to dedicate this accomplishment offline to my beloved and caring parents and to my
teachers with the support of whom I am standing at this step of my life stairs.

2. ACKNOWLEDGMENT
I have completed a report based on my familiarity with my past studies in
order to get a bit familiar with the practical experiences in organizations. By
the grace of Allah Almighty I have accomplished this report.
Sincerely, to my knowledge and exposure to this subject, I dedicated my
little effort to every one who works for the cause of Pakistan. I express my
appreciation to BahriaUniversity that scheduled and assigned me this report
and I hope my efforts will be duly regarded.

3. EXECUTIVE SUMMARY
Ba nkAlfa la h wa sinc orpora te d in 1997a nd wa s priva tize d by the Gove rnme nt of
Pakistan. The Abu Dhabi Group bought the majority shares of the bank and so got the rights to control the
bank’s operations. Since the privatization of the bank, Bank Alfalah has implement different policies to
make it one of the best banks of Pakistan, which included introducing new products and services and
increase its operations by opening new branches in Pakistan. Today Bank Alfalah is operating in more
than 95 cities of Pakistan and operating its foreign branches in Bangladesh, Afghanistan and Bahrain.
The total employees of Bank Alfa la h in 2008 we re 7,584.The re a re only 2% increase in
employees this year as c ompa re d to pre vious ye a rs be c a use of the c onditions
of P a kista n’s e c onomy. The financial statistics of Bank Alfalah are quite good as their human
resource. The profit after taxation for Bank Alfalah in 2008 amounted to Rs.1, 301 million and its total
assets for 2008 amounted to Rs.348, 990 million. The overall performance of BAL is decreased in
2008.Bank Alfalah promotes its products and services through print and electronic media. Bank Alfalah
also promotes itself by sponsoring different events.
Alfa la h is e xpa nding its ne twork a ll ove r the P a kista n y e t the re a re ma ny
untapped areas. The competitors of BAFL are also in aggressive position. The Economic and Political
conditions of the country are very disturbing; the high inflation and law and order situation affects every
business including Alfalah. Social and technological issues a re of se c onda ry importa nc e but
the y a lso c a nnot be ne gle c te d. BAFL is foc using positively regarding technological issues
but it should also keep its eye on the social cultural factors also. Some of the recommendations include
promotion on the basis of merit, loans to students and scholarship programs for its employees.

4. CORE OBJECTIVES OF BANK ALFALAH LIMITED
Objectives can be defined as specific results that an organization seeks to achieve
in pursuing its basic mission. Objectives are essential for organizational success
becauset he y s t a t e d ir e c t io n; a id in e va lua t io n; c r e a t e s yne r gy; r e ve a
l p r io r it ie s ; fo c us coordination; and provide a basis for effective planning,
organizing, motivating, and controlling activities. Bank Alfalah Limited objectives are as
follows:-
 To create maximum economic value for share holders through a
constant relationship focuses on financial services.
 Leveraging BAL Investments in the IT field.
 Ongoing assessment of opportunities for customers, leading to the constant
development of new products and services.
 Promote industrial, agricultural and socio economic processes through the active
participation of private and public sector in the country

5. THE VISION
Our vision is to be a leading financial institution, with a niche in areas
where we have a competitive advantage with complete banking
solutions. Our focus is on improving performance in each of our
businesses to achieve consistent and superior returns for our highly
valued clients and stakeholders.

6. THE MISSION
Our mission is to maintain a competitive edge in quality banking,
customer service and profit performance. Our activities are geared
towards making Bank Alfalah a responsible corporate citizen. The
emphasis on “Quality and Innovation” will remain our key mission
statement. We will continue to strengthen our position as the leading
provider of quality financial services in Pakistan.

7. INTRODUCTION
 Banking background in Pakistan
At the time of independence there were 487 offices of scheduled banks in
the territories of Pakistan. The Reserve Bank of India was the only bank to
settle the problem of coinage, currencies and exchange etc. There were 19
non- Indian foreign banks with the status of small branch offices, which
were engaged solely in export of corps from Pakistan, while there were only
3 Pakistan institution i.e. Muslim commercial bank, Habib bank LTD, and the
Australasia bank.
State bank of Pakistan was established on July 1, 1948 and assumed full
control of banking and currency in Pakistan. In order to develop sound
banking & weeding out weak institutions, the Banking Companies Central Act
was promulgated in 1949, empowering the State Bank to control the
operations of banking in Pakistan.
Another very significant event in the development of banking in Pakistan was the
appointment of the Credit Inquiry Commission in 1959 to examine the scope and
working of the institution providing credit facilities to agriculture, trade, commerce and
industry and recommended measures for further improvements

8.  Bank Alfalah
Bank Alfalah during the past five years, has assumed a brand new identity
plied with a spurred vision and revived commitment, following the
privatization of H.E.C.B in 1997. Since then the Board and the Management
of the bank have implemented strategies and policies to carve a distinct
position to carve an instinct position for the bank in the market.
The strengths of Abu Dhabi Group have helped Bank Alfalah contribute
towards the development of quality retail and Corporate banking in Pakistan.
The bank was acquired by the Abu Dhabi Consortium, which is headed by
Shaikh Nahyan Bin Mabarak Al-Nahyan, a prominent business professional of
the ruling family of Abu Dhabi and the Minister of Higher Education and
Scientific Research, (Govt. of UAE). Other members of the Consortium
include Royal Family members and leading businessmen of UAE. The
consortium owns 70% of the shares while the Govt. of Pakistan has retained
the remaining 30% of the bank’s shares. The financial and managerial
strength of Abu Dhabi Consortium has greatly enhanced the credibility of
the bank in Pakistan and is reflected in the bank’s improved performance in
all the spheres of banking.
In pursuance of State Bank of Pakistan, directives to all commercial banks to
get themselves “rated”. Bank Alfalah also undertook the exercise with
PACRA (Pakistan Credit Rating Agency). The premier rating agency, which is

9. an affiliate of IBCA, rated the bank as AA- for long term and A1+ for short
term. Both ratings are investment grade and denote very high credit quality
and very low expectation of credit risk. The ratings are applicable to senior
unsecured creditors of the bank.
In the efforts to branch out overseas, the bank is in the process of
acquiring a 25% stake in a banking company in Bangladesh. This acquisition
will not only help the bank promote bilateral trade with Bangladesh, but also
help in the initiation of business with other countries of SAARC and Far-
East region.
 The Management
Alfalah’smanegement is known for their hard work, product innovation and
dedication to make sure that the development and modernization process
keeps the bank ahead of competition.
With a team of talented, service dedicated professional bankers, Bank
Alfalah commits all of its energies, resources and time to cater to banking
and financial needs of its valued clients.
Following members form the board of directors of Bank Alfalah.

10. 1. Shaikh Nahyan Bin Mabarak Al-Nahyan (Chairman)
2. Mr. Abdullah Khalil al-Mutawa
3. Mr. Omar Z. Al-Askari
4. Mr. Abdulla NasserHawaileel Al-Mansoori
5. Mr. Nadeem Iqbal Sheikh
6. Mr. IkramUl-Majeed Sehgal
7. Mr. Mohammad Saleem Akhtar (Chief Executive)
Brief History of Bank Alfalah
This bank on June 21st 1992 was incorporated as a public limited
company under the companies ordinance 1984. November 1st 1997 was
the day when it's banking operations commenced. Bank Alfalah deals in
commercial banking and other services associated with it as defined in
the Banking companies ordinance 1962. The bank has almost 336
branches in more than 100 cities all across Pakistan. In addition to that
it has branches in Bahrain, Bangladesh and Afghanistan. The registered

11. office is at B.A. Building I.I Chandrigar Road Karachi. Since 1997 the
management of the bank has implemented new strategies and policies to
give the bank a distinct position in the market place.
Bank Alfalah is owned by the Abu Dhabi Group. The management of the
bank has invested a huge amount of money in new and revolutionary
technologies to provide its customers with an extensive range of
excellent products and quality services.
The management of the bank is committed to strengthen its bond of
trust with its customers and provide them with uninterrupted services.
The management of the bank strives to serve its customers with the
products and services according to their requirements. During the last
five years Bank Alfalah has emerged as one of the foremost financial
institutions in the country. There is an interesting attribute of bank
Alfalah which is its Islamic banking branches through out the country.

12. MY WORKING IN BANK ALFALAH
As stated earlier, I joined Bank Alfalah for the purpose of internship. I have
worked here as an internee for two months. During my stay of two months I
have worked in different departments. In these departments, I was
assigned different jobs, which helped me gain some practical experience.
I had to report at 9.00 am sharp and was given a warning that, if I was late
for 3 days, I would be fired. It was applicable for all other employees. The
bank timings were 9.00 am to 5.00 pm for all other employees, but I am
thankful to the manager, who relaxed me and I was allowed to leave at 1.30
pm due to my classes of the summer semester.
The overall staff was quite cooperative and friendly, and everyone treated
me very well. But at the same time, there was a very strict policy about
punctuality as well as discipline.
Following are the departments in which I have worked.
1. Car Leasing Department
I have worked in this department for almost 25 days. My supervisor’s name was
Mr. Imran Shami. Here I learned the whole procedure of getting a car leased.

13. My duty was to contact clients at the time when their monthly installment was
due. Moreover, Mr. Imran Shami made me deal with customers who came for
the purpose of car financing. I used to give out a presentation about all this
procedure.
In addition to this, I brought 4 interested customers for Bank Alfalah. All the
4 were friends of mine, who got their desired cars leased through me.
2. Remittance Department
The next 10 days of my internship were in the remittance department. Here, my
duty was to remit amounts. I was responsible for remitting amounts to
different accounts, which were received from foreign countries.
3. Customer Services Department
I passed my last 15 days in the Customer Services Department. Here I was
given a telephone line and I had to attend phones and guide people as well as
transfer calls to different departments.
Secondly I was assigned the duty of opening new public accounts. I opened a
number of new accounts during my internship program.

14.  Competitors
Like all others, Bank Alfalah also has a number of competitors
1. Muslim Commercial Bank
2. National Bank of Pakistan
3. Union Bank
4. United Bank
5. Allied Bank of Pakistan
6. Citibank
7. Habib Bank Ltd.
8. Faysal Bank
9. Prime Commercial Bank
10. Platinium Commercial Bank
11. Saudi Pak Commercial Bank
12. Indus Bank
13. Soneri Bank
14. The Bank of Khyber
15. Bank of Punjab
16. Gulf Commercial Bank
17. Metropolitan Bank

15. Organizational Structure
All the affairs of Bank Alfalah are run by the Board of Directors, headed by
the Chairman and Chief Executive, who are responsible for all matters
happened in the company i.e. profits, plans strategies, losses and employee
satisfaction etc.
The management network can easily be visualized in the organization chart.
Management Structure
Chairman
Chief Executive Officer
Manager
Senior Authorized Officer
Senior Clerk
Junior Clerk

16. ORGANIZATION HIERARCHY

17. s
BOARD OF DIRECTORS
H.H. Sheikh Hamdan Bin
Mubarak Al Nahayan
Chairman
Mr. Abdulla Nasser
Hawalileel Al-Mansoori
Director
Mr. Abdulla Khalil Al
Mutawa
Director

18. Mr.Khalid Mana Saeed Al
Otaiba
Director
Mr. IkramUl-Majeed Sehgal
Director
Mr. Nadeem Iqbal Sheikh
Director
Mr. AtifBajwa
Director & CEO
MANAGEMENT
Mr. AtifBajwa
ChiefExecutive Officer

19. Mr. Bahauddin Khan
ChiefOperating Officer
Mr. Mohammad Yousuf
ChiefRisk Officer
Mr. ShakilSadiq
Group Head
SME
Mr. Adnan Anwar Khan
Group Head
Retail & Middle Market, Central
Mr. Ijaz Farooq
Group Head
Islamic Banking
Mr. Nadeem UlHaq
Group Head
Admin, Technology, System &
Operations
Mr. Shahab Bin Shahid
Group Head
Retail & Middle Market, South
Mr. Faisal Farooq Khan
Group Head
HR & Learning
Mr. Saad Ur Rehman Khan
Group Head
Corporate & Investment Banking
Ms. Mehreen Ahmed
Group Head
Consumer Business & New Initiative
Mr. Yasar Rashid
Group Head
Audit & Inspection
Mr. Bashir Ahmed Sheikh
Group Head
Special Assets Management
Mr. A. Wahid Dada
Group Head
Operations

20. Mr. Syed Ali Sultan
Group Head
Treasury & Financial Institutions
Mr. AnwerUmed Ali
ChiefInformation Officer
Mr. MianEjaz Ahmed
General Manager
Legal & Company Secretary
Mr. Zafar Baig
ChiefFinancial Officer
Mr. Riaz Hussain Hamdani
ChiefCompliance Officer
Mr. Sajan Hamid Malik
General Manager
Credit Division
Mr. Haroon Khalid
General Manager
Risk Management
CHAIRMAN’s MESSAGE
"Our core philosophy of honesty, transparency in customer
dealings, product innovation, excellence in customer service and
our commitment
to being a responsible corporate citizen pervades this website”

21. H.H.SheikhHamdan Bin Mubarak Al Nahayan
Branches of Bank Alfalah
1. Bahawalpur
2. Faisalabad
3. Gujranwala
4. Gujrat
5. Hyderabad
6. Islamabad
7. Karachi
8. Lahore
9. Multan
10. Mardan
11. Mingora
12. Peshawar

22. 13. Quetta
14. Rawalpindi
15. Rahim Yar Khan
16. Sahiwal
17. Sukkur
18. Sargodha
19. Sialkot
Introductionof all Department:
OPERATIONS DEPARTMENT
O perations department of the Bank Alfala h Limited is responsible for the
overall operations of the bank. Operation Department has following segments.
a. Cash
b. Clearing
c. Remittance
d. Account Opening
The detail of those departments that are controlled under operation department is
asunder.
a. Account Opening
b. Cash Department
c. Clearing Department
d. Remittances
ACCOUNT OPENNING DEPARTMENT
It is most important department of bank. Ms. Bushra deals in this department.
Following procedure is adopted for this purpose
 PROCEDURE OF ACCOUNT OPENING

23. The procedure of opening the account is as given under:
It is very simple and quick procedure. A person who wants to open an account must
has the introduct io n of bank’s staff or any already existing account holder
of bank
 Account Opening Form:
First of all, the customer fills the account opening form (AOF). Filling of account opening form
includes type of account, currency of account, name, and address, signature of customer and
signature of introducer and attach a photocopy of national identity card. He also signs an
undertaking that he will follow the rules and regulations of the bank.
Introduction:
The signature and account number of the account holder introducing the account to the new
person is obtained on the account opening form.
 Specimen Signature Card:
The signature of the client is obtained on a specimen signature card (S.S Card). The card is
obtained with two signatures from the customer. Every time a cheque is received for payment
from the client, the signature on the cheque is verified by comparing it with S.S Card.
 Requisition slip
A requisition slip for Cheque book is also given to the customer. The customer fills it and gives
it to the account opening Officer.
 Know Your Customer Form
Every account holder fills this form. The basic purpose of this form is to get some basic
information about the customer’s business and source of incomes.
 Account Number:
When all the formalities are completed, an account number is allotted to the customer and all the
information is entered into the computer and register. Then that account number is written on S.S
Card and account opening form.
 Depositing of amount in account:
The client deposit cash in the account. For this purpose cash pay-in-slip is used. The minimum
initial deposit is fixed for each account according to the nature of account. For example for PLS /
saving account the minimum requirement is Rs.100 only.
 Issuance of a Cheques Book:
After opening an account with the bank, the account holder makes a request in the name of the
bank for the issuance of a Cheque book. Such a request is known as Requisition Slip. BAL issues
Cheque books from 10 leaves to 50 leaves. When he used this book completely then he can apply
for another known as subsequent Cheque Book. This process takes a day because the Cheque
books come from the Karachi head office.
GENERAL PRINCIPLES
 No account will be opened on fictitious name.

24.  A ll d o c ume nt s ne c e s s a r y r e q uir e d fo r o p e ning a c c o unt mus t b e
t a k e n a ft e r verification from original
 N o o p e r a t io n o f a c c o unt s ho uld b e a llo w e d & c he q ue
b o o k mus t no t b e is s ue d until all formalities are confirmed.
 G e n u i n e n e s s o f i n t r o d u c t i o n s h o u l d b e p r o p e r l y e n s u r e d
 No cheques-book is required.
 Time period varies from 3 months, 6 months to 1 year & up to 5 years. The profitrate varies
according to the time period for which it is deposited.
 In case of any premature encashment upon customer request, prevailing premium rate (i.e. Rs. 140/-
per deposit of Rs. 100,000/-) shall be recovered from the customer for the current year and will be
deducted from the principal amount.
 The TDR will be auto renewed for the next term at the prevailing rate of profit. In case,the customer
is willing to Ancash the funds at the time of maturity, he/she will furnish the request at least 3
working days prior to its maturity date in writing to the branch to Ancash his/her TDR and credit the
principal amount to his/her account (as mentioned in application form)
 If a deposit receipt is lost or stolen a duplicate receipt is issued after
obtaining an indemnit y. It is necessary to obtain a duplicate receipt if
original is lost because it is so worded that banker undertakes to repay the amount on
the presentation of duly discharged receipt.
 Deposits on joint names are payable to conditio ns agreed at the time
of their acceptance. On expiry the depositor presents the deposit receipt
(advice) dully stamped and gets the money in cash or transfer to his account. It
is legally, a depositor cannot demand the payment of his fixed deposit before
the expiry of the stipulated period but generally to oblige the customer, banker
allows them to withdraw their fixed deposit before maturity. In these cases customer are
asked to forgo interest. Deposit receipts issued is called fixed deposit receipts
TYPES OFACCOUNTS
The bank different types of accounts exist:
 Indivisual Account
Any individual or proprietor of business can open an individual account at BAF.PLS (profit
and loss sharing) saving accounts can be opened with the minimum balanceRs. 5000/-
with expected profit rate is 9%.
Following requirements has to be fulfilled for this account.
 Signature of customer on back of AOF

25.  Mention next of kin (nominee)
 Name and A/C # of introducer.
 Verified sign of introducer.
 Customer signature admitted by officer.
 N.I.C photocopy attached.
 Letter of thanks.
 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.Joint A/C cannot be
opened by single person. Both persons have to sign on cheques. When two
or more person neither partner nor trustee open account in their name is jointaccount.
Requirements
 Sign of both customers on back of AOF
 Sign on joint A/C # mandate
 Name and A/C # of introducer
 NIC copies of both members.
 Mode of operation.
 BUSINESS ACCOUNT
When the owner of the firm operating singly, open an in his term name.
Sole Of Proprietor Account
This account is for that person who has his own business of the business he is one owner of the
firm.
Requirement
 Companies stamp

26.  Declaration of proportion companies’ letterhead.
 Sign on account opening form
 NIC copy
 Verified signature of introducer.
 NIC copy
 PartnershipAccount
Account title will be the name of the partnership firm.
Requirements
 Sign of c
 Customers on back of AOF.
 NIC copies of partners
 Partnership deed (certified copy) duly attested by notary republic.
 Partnership mandate (prescribed format)
 Companies rubber stampThe A/C is opened in the firm name and all partners designate one
or two persons to act behalf of the partnership firm all acts of the firm jointly and severely.
a) Limited Company
 Private Limited Company
 Public Limited Company
 Requirements
 Restrain on companies letterhead dully attested by chairman.
 Sing of all directors on back of AOF.
 NIC copies of all directors.
 List of directors on companies’ letterhead.
 List of memorandum and article of association.
 Copy of board resolution.

27.  Latest form 29 (if director is to be changed or in case of his death, this kind
of form is filled, it includes information that a new director has how much number of shares
with him.
 Companies’ rubber stamp.
 Copy of certificate of incorporation should be attested by director, co register anoffice stamp
should be affix.
 PUBLICLIMITED
 C e r t i f i c a t e o f c o m m e n c e m e n t o f b u s i n e s s
 S a m e a s h o m e d o c u m e n t s .
 CLUB / SOCIETY / ASSOCIATION
These concerns are non trading in nature. They have their own rules and regulation
and their affairs are mentioned by the committee called as a governing body or
managing committee.
 SPECIAL TYPES OF ACCOUNTS
These types of accounts only can establish after approval
of system and operationdivision head office: -
o Trust Accounts
o Accounts of executors / administrators
o Accounts of liquidators
o Accounts of local authorities/ municipals.
Major Deposit Account Products
 CURRENT ACCOUNT:

28.  Non interest bearing checking account.
 Minimum account opening requirement of Rs. 5,000 only.
 Free Online Banking
 VISA Debit/ATM card can be used at over 30 Million outlets and at 1.5 Million ATMs
across the world
 No restriction on number of withdrawals and on number of deposits
 Profit& Loss Saving Account
 Profit & Loss Sharing Saving Bank Account.
 Minimum account opening requirement of Rs. 100 only.
 No restriction on number of withdrawals and number of deposits.
 Profit on saving accounts is credited to the customer account on half-yearly basis.
 Debit card can be used to withdraw cash and make purchases at thousands of outlets across
Pakistan which provides access to funds 24 hours a day.
 Profit and loss saving account cannot be opened by a businesscorporation, however can be
jointly opened by individua ls
 Basic Banking Account(BBA)
Basic Banking Account was introduced by banks on an order by the State
Bank of Pakistan and is current in nature. Basically it is facility for students or for
those people who has less earnings.
 Initial deposit for account openingis Rse.. 1,000 with no minimum balance requirement.
 Non interest bearing checking account.
 Maximum 2 deposits & 2 withdrawals through cheque is allowed while there is no restricyion on ATM withdrawls
Debit card can be used to withdraw cash and make purchases at thousands of outlets across Pakistan which provides access to funds 24
hours a day.
 Term / Fixed Deposit

29.  When customer places money with a banker for a fixed period a deposit is termed as
fixed/term/time deposit.Some important features that I have done in practice is that:
 No cheques-book is required.
 Time period varies from 3 months, 6 months to 1 year & up to 5 years. The profitrate varies
according to the time period for which it is deposited.
 In case of any premature encashment upon customer request, prevailing premium rate (i.e. Rs. 140/-
per deposit of Rs. 100,000/-) shall be recovered from the customer for the current year and will be
deducted from the principal amount.
 The TDR will be auto renewed for the next term at the prevailing rate of profit. In case,the customer
is willing to encash the funds at the time of maturity, he/she will furnish the request at least 3
working days prior to its maturity date in writing to the branch to encash his/her TDR and credit the
principal amount to his/her account (as mentioned in application form)
 Royal Profit Account
 Minimum Deposit requirement of Rs. 50,000 only.
 Higher returns on higher balances.
 No restriction on number of withdrawals and on number of deposits.
 Debit card can be used to withdraw cash and make purchases at thousands of outlets
across Pakistan which provides access to funds 24 hours a day.
Profit is credited to the customer account on monthly basis.
 Kifayat Account
 No restriction on ATM withdrawal
 Any Pakistani resident can open this account. This account is for individual/joint
customers only. Other customers like companies, corporate etc are not eligible for
opening of this account.
 Minimum balance requirement for opening this account is Rs. 10,000/- and no maximum
limit
 Customers can withdraw funds whenever they like. There is no restriction on number of
withdrawals.
 There is no restriction on deposit transactions.
 Cheque book and VISA Debit/ATM card will be issued to customers.
 Profit will be calculated on monthly minimum balance basis and will be credited in the
account on monthly basis.

30.  ALFALAH KAMYAB KAROBAR:
Online Current Account
Bank Alfalah presents AlfalahKamyabKarobar (KK) - a structured, branded, tier-based current
account that caters to your banking needs & aspirations. This product will provide you the
opportunity to enjoy free services alongside state of the art banking facilities, linked directly to
the deposit balances in your KK account.
Alfalah KK Account can be opened with minimum deposit requirement of Rs 25,000, while the
degree of free services will be dependent on the minimum thresholds of respective tier.
Its will give you the power to choose from different tiers and avail banking facility from any of
the Alfalah branches – PAN Pakistan.
The unique tier based structure ensures that you can avail smooth & cost efficient facilities based
on your current level of deposits i.e. Higher the deposit, higher the number of free services.
Some of the Salient features include (tier-based):
 Free Online Transactions
 Free PO/DD
 Free cash deposit across Pakistan
 SMS alerts on VISA Debit/ATM Card
 Gold VISA Debit/ATM Card with every account
 AlfalahMahanaAmdan
 AlfalahMahanaAmdan is a 3 year TDR with expected rate of profit of 10% p.a. This term
deposit will provide an opportunity to individual/joint customers to enjoy higher returns that
will automatically be credited to his/her current/PLS/RP/BBA account on 1st working day of
each month.
 This facility is not available for business and corporate customers.
CASH DEPARTMENT
Cash department of Bank Alfalah works under the operation department. This departmentis
given the complete responsibility of cash, as result of transaction in touch local
andforeign currencies. It is also responsible for the book keeping of these
transactions andthe safe custody of cash. Out of five counters of cash department
one counter is fix for senior citize ns and females. All counters

31. are dealing at the same time in deposits,withdraw and online transaction processes.
This department performs the main function.
o Cash Receipts
o Cash Repayments
 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.
Detail on both counter file and cash receipt voucher should be the same. Cash is received by
cash receiving officer, twice counted and matched with the deposit slip. The cash details are
written on the back of the deposit slip and are also entered in computer software called
“bank Smart”. Cash received stamp is affixed on the face of the deposit slip along
with the signature of the cash receiving officer. Deposit slip is forward to the officer in
the cash department. Again proper scrutiny is made by the officer cash
department both on cash receipt and Bank smart software. Officer cash
department sign the deposit slip and finally approved the transaction on Bank Smart.
Deposit slip is credited and posted in the concerned accounted in the system. Counter folio is
given the deposition as receipt. One consolidated cash debit voucher is posted in the
system to balance the cash.
 CASH PAYMENTS OF CHEQUE
All five counters deal with cash payments the process for payment of cheques local
andforeign currency is same. First the cheque is presented by the customer or holder to cash
payment officer. He confirms’ that it is drawn on the same branch and the particulars of cheque
are properly filled in. one signature of the holder is taken on the back of theCheque. Officer
checks the date, amount in words and amount in figures, payee’s
name,crossing if any, account number, cheque serial number, any material
alterations /endorsements and signature of the customer. Account is debited in Bank Smart
and thencheque is cancelled by the officer. It is posted in the system and
posting stamp andnumber is affixed on it. At the end officer hands over cash to client.
CLEARING DEPARTMENT
MrYosuf deals this department. Before discussing it is necessary to know what
is“clearing”.
“The process by which cheques 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:

32.  INWARD CLEARING
When cheques drafts, etc, of our branch presented to us for clearing by the SBP. Chequesto be
honored by bank.
 OUTWARD CLEARING
The cheques of other banks which the account holder deposits in their accounts are sendfor
collection.
 CLEARING PROCESS (INWARD/OUTWARD)
Here the local cheques are received that are drawn on BAL. All the cheques are received on one
counter along with the paying slips duly filled in properly containing particulars
ofcheques and account holder. Counter folio of paying slip is handed over
to thecustomer by putting stamp for cheque received for collection for Bank Alfalah on it
dulysigned by officer. These cheques are scrutinized and cheques for local clearingare
separated from OBCs. These are then entered in clearing register and cheques
for collecting are entered in OBC register and handed over the bills department of
collection.Clearing officer checks and verifies title of all the cheques deposited by the customer
toconfirm the good
REMITTANCES
MeaningsofRemittances
“
Remittance is transfer of fundsfrom one place to another or fromone person
to another.”A Remittance is an important service provided by banks tocustomers
as well as non-customers. Since it is not a freeservice it is a source of
income for the bank.
Parties involve in remittances
Four parties involved in remittance:-
 Remitter
 Remittee
 Issuing Bank
 Paying Bank
 Remitter:-

33. One who initiates, or requests for a remittance. The
remitter c o mes to the is s uing o r o riginating b ranc h, as ks fo r a
remittanc e to b e mad e, and d ep o s its the mo ney to b eremitte
d . T he b ank c harges him a c o mmis s io n fo r this service. He may
or may not be the branch’s customer.
 Remittee:-
A Remittee is also called the beneficiary, or the payee. Thepersonin whose name
the remittance is made. A remitteeisalso the one who receive the payment
 Issuing Bank:-
The bank that sends or affects the remittance, throughdemand drafts,
telegraphic transfers, or Mail Transfers.
 Paying Bank:-
Paying Bank also knows as the drawee branch. The
brancho n w h ic h t h e in s t r u m e n t is d r a w n . I t h a s t o m a k e
t h e payment (usually located in a different city country).
o Kind of remittances
 Transfer within the branch
 Transfer from one branch to another
 Transfer from one bank to another bank in the samecity
 T rans fers fro m o ne b ank to ano ther b ank in two cities.
Instruments used in remittances
 Demand Draft (DD
 Pay Order (PO)
 Pay Slip
 Call Deposit Receipt (CDR
 Telegraph Transfer
 Rupees Traveler Cheque (RTC)
 Cancellation of PO, DD & CDR
 Advance Tax against Remittances
 Demand draft
Demand Draft is a negotiable instrument, which is drawn byone branch to another branch of the
same bank. In case of agency arrangement Demand Draft can also be issued byone

34. branch of the bank payable to other branch of the other bank e.g. DD issued by the BAL payable
by UBL.
 Explanation:
I f a ny p e r s o n w a nt s t o ma k e p a yme nt fr o m o ne c it y t o another city
then he can make payment through demanddraft. Bank charges a commission for
performing this kindof service according to bank rate schedule, which is revisedafter 6
months. Demand draft may be issued or paid. Thereare two ways to issue
 Demand Draft:-
Issue of DD against cash payment2.Iss ue of DD against Debit of the
accountThe current rate schedule of DD is as follows:-Up to Rs. 10,000 0.25% or Rs.25Which
ever is higher Rs.10,001 to Rs. 100,000 0.20%or Rs.40Which ever is
higher Rs. 100,001 to Rs. 10,00,000 0.10%or Rs.200Which ever is
higher Rs. 10,00,001 to Rs. 20,00,000 0.75%or Rs.1000
Which ever is higher Above Rs. 20,00,000 0.06%or Rs. 2000Which ever is higher
Processofthe issuance ofDD:-
When a customer requests BAL M.B.DIN Branch to providehim a DD made on his account or
against cash payment for a particular city like Islamabad. Then, after having the
totalamount includ i ng commiss io n demand draft is issued infavor of the
specified person in that city and is drawn
onBA L, I s la ma b a d Br a nc h. S o , w he n p a ye e in a ny b a nk p r e s e n t s t h
i s d e m a n d d r a f t , i t c o n s t i t u t e s t h e i n w a r d clearingof Bank Al-Falah
Limited, Islamabad Branch.
 Pay order
Pay order is a negotiable instrument made by the bank, onaccount of a customer, to pay on
order the specified amountto the directed person (payee).
Use of Pay Order:-
Pay orders are used to make payment or to transfer money,with in the same city. Pay order is
always drawn on thebank that has issued it. The main advantage of pay order isthat it cannot be
dishonored by the bank. Pay order can beendorsed if it is not crossed. The payee may present
payOrder for payment either over the counter for cash paymentor the payee may transfer credit
to his account
The current rate schedule of Pay Order is asfollows:
Issuance of Pay Order Rs. 50/- for a/cholder
Rs. 500/- for non-a/cholder'
Cancellation Rs. 100/- for a/cholder
Rs. 100/- for non-a/cholder

35. Duplicate Issuance Rs.100/- for a/cholder
Rs. 100/- for non-a/cholder
Payslip
“It is a negotiable instrumentl i k e c h e q u e i s s u e d b y t h e b a nk o n it s o w n
a c c o unt t o
pay a specified amount to thedirected person.”
 Issuance ofpay sli
 Bank issue a pay slip in favor of person, to whompayment is made.
 Affixes payee’s Account only stamp.
 Revenue stamp pasted on it.
 Call DepositReceipt (CDR)
B a n k A l - F a l a h L i m i t e d a l s o i s s u e s C a l l D e p o s i t Receipts
(CDR).
“It is an instrument like Chequeissued by the bank on accounto f a
c u s t o m e r & i n f a v o r o f a p e r s o n , t o p a y t h e s p e c i f i e d amount”.
CDR’s are issued to make payments, especially when a companygoes for some tenders or
for purchase of government securities.The bank enjoys the benefit of keeping funds
deposited until the payment is not made.
 Rupee Traveling Cheque
It is just a shape of Demand Draft. The difference is that it is notdrawn on the
specified branch. It can be drawn on any branch of the same bank.The paying bank has
to verify the signatures and after verification payment is made.
ACCOUNTS DEPATMENT
This department is responsible to keep the record of
eacha n d e v e r y t r a n s a c t i o n a n d p r e p a r e r e p o r t s a b o u t t h e a
mount of deposits and advances and sent to Head officeor State Bank of
Pakistan on monthly, quarterly and yearlybasis.
Activities
 Budgeting
Accounts department of a bank, for a year makes budget of every branch. Fiscal
year of bank starts from January 01and ends on December 31. The accounts
department startspreparing budget from October for the next year.
 Reporting

36. The accounts department, in the form of reports, clubs
thedetails of various departments together. Each
and everymi nute detai l i s provi ded i n weekly, monthly and annualreport
s. The reports are submitted to head office, SBP
andto the government. The accounts department preparesmany reports,
of which the most common are:-
 Statement Of Affairs
 Income & Expenditure
 Business Report
 SBP Report
 Outstand Receipt Report
 Currency Wise Deposits Report
Maintaining of Fixed Assets&theirDepreciation
Accounts department maintains the record of all the assetsand charges depreciation on
them. The bank normally usesthe straight-line method to compute the depreciation.It is
calculated on monthly basis and charged yearly. Banknot only depreciates the
existing assets but also the assetsbut also the assets transferred in and transferred out.
MiscellaneousFunctions
The accounts department also performs some other miscellaneous functions
likei . C l o s i n g E n t r i e s i i . D a i l y a c t i v i t y
c h e c k i n g i i i . R e p o r t G e n e r a t i o n i v . M i n o r e x p e n s e
r e c o r d i n g
Closing Entries:-
Accounts department also passes the closing entries onmonthly, 6 monthly and yearly
bases to calculate the profitand analyze the overall performance for a certain period.
Daily Activity Checking:-
All the operations performed in various departments of Bank Al-
Falah Limited M.B.DIN are computerized. Thefunctions are performed
through the customized software.In order to facilitate double-checking of all
the transactionsdone, every concerned official also passes vouchers andcheques
manually. At the day end all the vouchers
passedby various officers working in different departments areg i v e n t o A
c c o u n t s D e p a r t m e n t . F u r t h e r m o r e t h e I . T . d e p a r t m e n t a l s o p r
i n t s a v e r y b u l k y r e p o r t o f a l l t h e t r a n s a c t i o n s / e n t r i e s w
h i c h h a v e b e e n f e d i n t o t h e computer system of the
branch that day. When both of t he s e t hings a r e a t t he d e s k o f c o nc e r n

37. e d o ffic e r , he performs the job of tallying the daily activity report with allthe
corresponding vouchers and cheques, in order to trackdown any discrepancy.
Report Generation:-
The reports generated by the accounts department on adaily, weekly, monthly, bi-yearly and yearly are
written in aproper format. It is neither necessary nor possible to getacquainted by all of these
reports in a short period of time.Some of the common reports are:-
D a i l y A dv a nc e a nd D e po s i t Position:-
 Daily Exchange Position
 Daily Fund Managemen
 Closing Reports:-
o Monthly Assets & Liabilities
o Monthly Budget Review Report
o Monthly Monitory Statement
o Monthly Performance Review Report
Monthly fixed investmentFrom these statements, five reports carry extremeimportance. The five
reports are:-
o Daily position of advances and deposits
o Statement of affairs
o Daily exchange position report
o Fixed assets statement
o Monthly review of performance.
-Minor Expense Recording:-
The account department of BALM.B.DIN Branch has torecord even the minor expenses of the
branch like
CREDIT DEPARTMENT
The basic function of a bank is to receive deposits (at low rate of return) and tolend money (at a
high rate of return). So, the lending operations of a bank constitute a vital part of its business.
This department is the source of income and earnings for the bank.Bank’s funds comprises

38. mainly of money borrowed from numerous customers on various accounts such as saving
accounts, current accounts, fixed deposits etc. Whereasthe major part of total income of a bank is
generated through the utilization of these funds.The credit department is further divided into two
departments that are as follows:
o Credit Marketing
o Credit Administration
There are two types of cerdit which Bank Alfalah offers:
o Commmecial Credit
o Consumer Finance
COMMERCIAL CREDIT:
Commercial credit involves lending to the various types of borrowers for the purpose of meeting
various business capital requirements. Further, from time to time Alfalah also offers the
specialized products which based on different useful facilities which having special features and
terms that are designed to facilitate more type of borrower or business requirement.
The commercial credit facilities of the bank may be divided into two types:
 Funded facilities
 Non Funded facilities
CLASSIFICATION OF FACILITIES:
Funded Facilities
Funded facility is that facility in which the bank funds are physically involved. The funded
facilities may be divided into the following based on the tenure.
 Short term/Working Capital Facilities
 Long term/Capital Expenditure Facilities
 Short term/Working Capital Facilities
These are the facilities which are designed to meet the short term or working capital needs of the
customer i.e. for financing of various current assets. The tenure is usually less than one year and
the customer may roll over the liability several times within the approved limit during that
period, depending upon their cash conversion cycle.
BAL offers the following short term facilities:
o Current Finance
o Cash Finance
o Short-term Term Finance
o FAPC I
o FAPC II
o FAFB
o FIM
o FATR

39. Current Finance (CF-Hypo):
This is the most common form of bank lending. In over draft facility, a customer is allowed to
withdraw on his account in excess of the balance that the borrowingcustomer has in credit. So
when a customer withdraws in excess of his balance, an overdraft occurs (balance becomes debit.
The facility is revolving advance i.e., is the customer may borrow, repay and borrow again, funds
up to any amount according to their working capital needs.
This facility can be availed for a certain limit called OD limit and is used to meet the seasonal
requirements of cash. In current finance mark up is charged on daily basis on the outstanding
amount at each day end, and is recovered on quarterly basis.
Cash Finance (CF-Pledge):
This is also a very common form of borrowing by commercial and industrial concerns, and is
made available either against pledge or hypothecation of goods. This is also known as running
finance. It is utilized for the creation of current assets and to meet the permanent working capital
requirements. Under this type of facility, funds are disbursed against pledge of an approved
commodity. An amount net off a certain margin is disbursed in the account of customer. Funds
can be released against pledge of commodities or liquid securities (share, etc). Some seasonal
commodities on which BAL do pledge are phutti, cotton, cottonseed, oilcake, yarn, cloth, wheat,
rice, sugar, leather, etc
o Term finance Term finance is for a fixed period of time, all the amount is transferred to
the borrowers account right in the beginning and interest is charged. The mark-up is
receivedin the end on semi annually basis. Term finance has to be paid within a limit and
once itis paid the client cannot take it back.
o FAPC I (Finance against packing credit):Bank provides this facility against LC or sale
contract (in favor of exporter). Bank takes 100% security against this type of financing. This
facility is also called Preshipment finance. Afterwards bank receives the payment of exports
and adjusts theexportersaccount.This loan is disbursed by the bank for the preparation of
goods once the L/C is received
o FAPC II (Finance against Packing credit):This loan is also known as performance-
based financing. This type of financing isagainst last performance of the exporter. According
to SBP exporter can have finance upto the half of amount of previous year export but then
the exporter should ensure that theexports he makes are equal to double amount of the loan
for one year. The mark-up ischarged for the period the exporter has used the facility and
not for the whole limit.
o FAFB (Finance against foreign bills):This facility is also known as post shipment finance.
This facility is availed by theexporter after he has shipped the goods and sent his documents
for collection. The bank purchases the documents from the exporter and gives him this
facility. He will take loanagainst these documents and pays fixed mark-up rate on this
facility.

40. o FIM (Finance against imported merchandise):Finance against Imported Merchandise
(FIM) is a credit facility provided to thecustomer, in L/C transaction. In FIM, bank itself
makes the payment to the exporter andthe goods are kept in the possession of bank. Delivery
order (DO) is issued by the bank for every time, when the importer makes the payment,
goods are transferred in the possession of importer
.
o FATR (Finance against Trust Receipt):The bank also offers credit facility FATR, against
sight L/C’s, like FIM. Contraryto FIM, goods are given in the possession of importer. This
facility is provided to thecustomer having a credit
o NON FUNDED FACILITIES
The facilities where there is no direct involvement of banks fund. There are two types
of unfunded credit line facility, which are as follows:18
o Letter of Credit (LC)
o Letter of Guarantee (LG)
o Letter of Credits
A letter of credit is a written undertaking by a bank (issuing bank) given at the
request and accordance of a buyer (the applicant) to the seller (the beneficiary) to a fact
payment up to a stated amount of money within prescribed time limit provided that the terms and
conditions are complied with. Letter of Credits issued in the international trade business. There
are two types of Letter of Credits:
o Usance LC
o Sight LC
o Letter of Guarantees
Letter of guarantees is a guarantee that the bank gives to an organization on behalf of
the bank. Letter of Guarantee’s are mainly used when a tender for a specific job is filled by
acustomer. There are three main types of LG’s
Securities for Advances
The advancing of credit involves a great risk for the bank. Therefore, to cover risk, the bank
keeps different tangible and non-tangible securities, before sanctioning the credit facility to a
customer. The bankers prefer those securities that carry less risk of depreciation due to market
fluctuations and are easily saleable, even under changing market conditions.The securities used
in disbursing advances are as follows:
 Pledge
 Mortgage

41.  Hypothecation
 Charge
 Lien on Documents
 Guarantees
 Pledge:
Pledge is the actual delivery of the movable and tangible property to the lender, as a security for
a credit. In pledge, the possession of movable assets is with bank but the ownership remains with
the client. Pledge is considered to be the best security for the bank. The commodities which are
being pledged are normally raw material, consumables, finished goods and in certain cases work
in process (WIP).
Margin:
For every credit, the bank needs security with margin or cushion. The margin requirements are
different for every case. IF, there is 25% margin requirement then to obtain loan of Rs 1 million,
the security that is to be pledged should be have worth of Rs.1.25 million. The possession of the
goods is with the bank, so bank keeps these goods in goodowns under the custody of Muccadam.
People who look after the pledged goods are called Muccadam. If rice is to be pledged with the
bank, it doesn’t mean that this rice will be kept in bank; such type of goods is kept in the
goodowns of the company. So to make these goods secure bank appoints its own men called
Muccadam to take care of the stock and also bank has a board of its own name on the goodown.
 Mortgage:
In mortgage, immovable assets are offered as security. Mortgage means, to surrender the
proprietary rights of the property. The transferor of property is called mortgagor and the
transferee (bank) is called a mortgagee. Usually two types of Mortgages are being created in the
bank for the purpose of collateral.
 Equitable Mortgage
 Registered Mortgage
 Token Registered Mortgage
 Equitable Mortgage (E/M):
When a mortgage deed is attached with the title documents only and is deposited in the bank, it
is known as “Equitable Mortgage” or “Mortgage by deposit of title deed”.It is the most common
form of the mortgage created in bank.
 RegisteredMortgage (R/M):
When the mortgage deed is between the bank and the client is registered, it becomes a registered
mortgage. Mortgage deed is registered with the Registrar of theCompanies. It is an expensive
mortgage and is created when the title documents are weak or the client is not much trustworthy.
 Token RegisteredMortgage
In TRM except of mark leiun on whole property, leiun is marked on some part of property. Red
Most of the cudtomers like this type ogmortagage because they are not supposed to be registered

42. the whole property and reduce their cost in order to pay fee for the registeration of whole
property.
 Hypothecation:
When an immovable property is offered for security against credit but both theownership and
possession is left with the borrower, the goods are said to be“Hypothecated”. Securities like
machinery, stock etc. are offered for hypothecation. The banker, for his protection, may ask the
borrower to insure. The banker mayhimself do so and recover the expenses from the
borrower.The banker may ask the borrower to maintain a balance of goods sufficient to fulfill
themarginrequirements.For the creation of hypothecation, the bank gets the letter of
hypothecation signed by the client. This deed is got registered in case of both public and private
 Lien on Documents:
Like charge, bank creates its lien on the documents in its possession, as security.For example, in
case of import transaction under L/C, bank creates lien on importdocuments.
o Guarantees:
Along with other securities, bank may rely on other guarantees like other bank guarantees, to
protect himself against the advances.
CONSUMER FINANCE
o CREDIT CARD
Bank Alfalah Credit Card is your partner everywhere and is globally accepted and welcomed at
locations displaying the VISA logo. It is accepted at nearly 30 million locations in more than 200
countries around the globe and over 27,000 Bank Alfalah’s establishments in Pakistan.
Alfalah VISA lets you pay for shopping, travel, entertainment, meals and much more. Card
members are facilitated through a number of promotions from time to time. In addition, there are
a number of strategic business partnerships with leading local and international brands for
purchase of home appliances at exciting Step-BY-Step (SBS) monthly installment plan with free
home delivery at lowest interest rates. Salient features are:
 Electricity, Sui Gas, PTCL and Warid bills payment through 24 hour Call Center and
Auto Debit instructions
 SMS for card usage, mini statement, payment receipt confirmation, etc.
 Cash withdrawal at all 1LINK ATMs

43.  Special offer on Waridpost paid connections
Rush now to avail matchless features offered by Alfalah VISA.
Platinum Card
It is accepted at nearly 30 million locations in more than 200 countries around the globe
and at over 27,000 establishments in Pakistan.
Titanium
Titanium MasterCard is your partner everywhere and is globally accepted and welcomed
at locations displaying the MasterCard logo.
Gold / Classic
A perfect card combination for all segments of salaried & professional individuals.
Supplementary Cards
Now you can give Supplementary Cards to anyone you care for
CAR FINANCE
Benefits and Features
 Quickest processing
 No hidden charges
 Minimum down payment
 Complete repayment at any point of time Balance transfer facility {BTF}
for existing as well as new clients from other Banks
 Tenure period ranging from 1 to 5 years
 Financing of all brand new locally assembled vehicles and used cars
 Financing limit ranging b/w Rs. 200,000/- to Rs. 2000,000/- for brand new
cars
o Corporate and individual car leasing

44. BAL’s recently introduced car leasing facility for individuals and corporate
sector has set new dimensions for the product. Now you are provided with the
option of either to get the vehicle leased or financed.
insurance
Renowned and reliable Insurance companies are offering the competitive
rates of Insurance. Pay year insurance premium in advance { at the time of
down payment } and remaining in the subsequent equal monthly installment.
how much extra mony being paid? {mark-up}
Bank Al-Falah's mark-up rates are as follows :
Pak Suzuki Cars 11.9 %
All other local assembled
Cars
12.9 %
Imported Cars 12.9 %
Repayment
Easily affordable installments on monthly basis in the form of postdated
cheques will set you free of depositing your rental cheques every month.
Security
Hypothecation of vehicle in the name of the Bank Al-Falah Limited.
YOU CAN ACT AS A CO BORROWER
Acting as a co borrower, will enables your family members {spouse, children-
18 year and above} to avail the financing facility and can get the car registered
in their names as well.
Documents required
Two passport size photographs.
Copy of National ID card.
Bank statement for the last six months.
Salary certificate {for salaried individual}.
Business proof {for a business person}.
N.T.N Certificate.
Co borrower’s NIC copy {if the car is to be in the name of the co-borrower}.
Eligibility

45. Yes you get a car loan form bank Al-Falah to purchase a brand new car if you
are:
Pakistani National Identity Card holder.
Over 20 years of age (Maximum 60 years in case of salaried and 62 in case of
a
business person at the time of maturity of the loan).
Salaried , Businessman or self employed .
Home finance
With this facility, you no longer need to just dream about the home you want
for yourself and your family .We will provide you up to Rs. 10.00 million or
70% of the purchase price of the property (whichever is less), so that you can
realize your dream and enter the reality of owning a home!.
Payment period ranges from 3 to 20 years.
TTRRAADDEE FFIINNAANNCCEE DDEEPPAARRTTMMEENNTT
In this era of globalization progress of any country cannot be imagined without considering the
significant role of its imports and exports. Whenever goods are sent or received from other
countries, this is known as trade or international trade. Now day’s banks are playing very
important role in trade and affect our foreign reserves and overall economy as well.
In bank Alfalah trade department is a very well performing and responsible for all foreign
transaction done through their bank. Mr. Ibrahim is in charge of department. The bank acts on
behalf of exporter as well as importer for different parties who are busy in foreign trade.
Trade Finance Department handles two activities:-
 Import
 Export
Import
Import Department of BAL deals with the import of merchandise. Import can be defined as:
“The bringing of commodities into Pakistan from outside by sea, land or air.”

46. In other words all goods and services brought into a country that were purchased from
organization located in other countries.
Export
Exports are major sources of earning foreign exchange and play an important role in the
economic development of the country. It helps to utilize excess resources of the country.
“Exports mean selling goods to another country.”
Exports of all eligible commodities through authorized banking channels are admissible under
exchange control regulation.
When the bank becomes the exporter bank for a party then the market stability, reputation,
financial position of the exporter is important factor to be considered by bank.
SWIFT
Swift stands for society for worldwide interbank financial telecommunication. It is network
among all banks. World widely all trade transactions are done through this network in banks.
Swift message is among one of the most authenticated message received in trade department.
 SWIFT is a secure way to transmit trade related messages worldwide
 Increased authenticity of message
 Cost effective and speedy way of sending the transaction
NOSTRO ACCOUNTS
NOSTRO account is the account maintained by BAL in different banks of world at places where
BAL doesn’t have its own branch to facilitate its customers. e.g. for dollar transaction BAL has
its accounts in standard chartered bank and CITI bank.
VOSTRO ACCOUNTS
VOSTRO account is the accounts of foreign banks in BAL to facilitate their customers. All the
transactions and sending or receiving of messages among banks is through SWIFT.
FUNCTIONS OF TRADE DEPARTMENT
Trade department performs all the function related to the foreign dealings which includes
Intermediary/source of international payments, Correspondent of exporter or importer and
dealing foreign remittances etc.
1. FOREIGN REMITTANCE HANDLING

47. One of the most important function bank plays is a source of international payment. Whenever
people e.g. student or any other want to make payment or transfer to any foreign university or
organization bank plays a source of intermediary and handle this remittance.
2. CORRESPONDENT BANK
Bank act as a correspondent between importer and exporter. It can be on exporter side and on
importer side. With the presence of bank the foreign trade becomes more secured for importer
and exporter.
 DUTY AS AN IMPORTERS CORRESPONDENT
When the banks on the importer means the buying party side it have to play role of a guarantor.
To be a guarantor of any party the customer (importer), the bank has some demands from its
customer
1. Customer should have account in bank Alfalah.
2. Customer should have a clean account means no default.
3. Customer should have good repute in market.
On the behalf of importer, bank provide his/her customer two types of facilities in favor of
customer
1. LC (Letter of credit)
2. LG (Letter of guarantee)
LETTER OF CREDIT
LC is a written and conditional undertaking by a bank on behalf of the applicant (importer) to
the beneficiary to pay a certain amount at a certain date if the stipulated terms and conditions
are compiled with.
For trade purchase purpose always LC is issued.LC is opened by the importer bank.
Reasons for opening LC
Following are the reasons for opening the LC
 Helps importer to make goods available on credit.
 A sort of guarantee to exporter regarding payment.
 Due to presence of banks it becomes a more secured way of international trade.
Types of LC
LC is divided in two ways

48. Type Features
1.Sight LC Payment immediately after
shipment
2.Usance LC Payment is done as on agreed
time
Procedure of opening LC
LC is a kind of credit document. In order to open LC the importer comes to BAL. For opening
LC first of all the person should have an account with the bank and have good contractual
relationships with it. . Party comes to the credit department and fills the form which is provided
on the payment of Rs. 100. This form is filled by the party and is return to the bank, it includes
details like.
 Name of company
 Address
 Country of origin
 Branch name
 Quantity
 Insurance company
 Shipment from
 Shipment to
The credit department makes a credit line approval and sends it to head office for opening of LC.
When approval comes the work of trade department starts.
Documents/Requirements for LC:
The trade department will ask for following documents for opening LC.

49.  LC application request
 LC Application Form
 Valid import license
 Performa invoice / Sale Contract
 Letter of under taking form importer
 Insurance cover
 Customer Portfolio
After verification of securities and details provided by the application, a credit line proposal is
made which is sent to the Area Office. After Area Office approval the LC is issued to the
customer.
Points to Be Considered While Opening LC
 Availability of sufficient funds in LC customer account.
 Margin of funds availability may vary as per bank requirements.
 Value of LC should not increase the value of import license.
After all the documents are being checked and signatures are verified by the bank. A
sanction slip is attached with each formso that the approval can be gained from the manager of
the bank. After the approval is made four copies are prepared and the entries are made on the
computer and the printout is taken the margin amount is checked from the importer account and
if the amount is not found then LC is not opened and the party is informed about the situation.
Working after opening LC
Function of trade department doesn’t ends on the opening of LC. After this bank
sends the LC to the correspondent bank of importer. Exporter collects his LC and procedure of
shipment starts. After shipment the exporter prepares shipment documents and through his
correspondent bank send to importer bank. Importers bank or opening bank receives the
following documents from the exporter’s bank or negotiating bank.
 Bill of exchange
 Invoices
 Bill of lading
 Packing list
 Insurance
And then as per mutually agreed settlement the payment is done and LC is retired.

50. LETTER OF GUARANTEE
A letter of guarantee is a sort of LC but it is inland means it is for trade within the Pakistan. It is
usually issued for the pesticide dealings.
It can be
1. Negotiable
Transfer of rights from one person to another.
2. Non negotiable
No transfer of rights can be done.
WORKING OF LG
A person wants to purchase pesticides but he is lacking of funds. But his
account has a very good repute with bank. As a result buyer of fertilizer will go to bank and ask
to issue an LG suppose of 1 million on name of seller. Bank after taking some documents and
issue the LG to buyer on the name of seller and the delivery of goods to seller is done. Now the
time frame of payment of LG is after 1 year but seller needs money now as a result he ‘ll go to
his correspondent bank or to which he has good reputation and ask them to buy LG from him.
Bank will discount that LG to buyer after deducting some charges e.g. at 950000/-. Now the
seller’s bank will send LG to buyer’s bank for marking lien that LG is real and now it is under
this bank. Now the transaction will occur between buyers and sellers bank. As the tenure of LG
will be completed the bank will make payment to seller’s bank.
BANKS AS AN EXPORTERS CORRESPONDENT
When the bank becomes the exporter bank for a party then the market stability,
reputation, financial position of the exporter is first of all checked.
Export Documents
 Financial documents
 Commercial documents
 Transportation documents
 Other Documents
Financial documents;
These are instruments used for obtaining payments e.g. cheques, bills of exchange.
Commercial documents

51. Other than financial documents e.g. commercial invoice, packing lists, bill of lading etc.
Transportation documents
It includes Bill of lading, truck receipt, Railway receipt and airways bills.
Export Facilities
1. FDBC
FDBC stands for foreign documents bills for collection. When the importer and exporter deals
have been done and LC received by the exporter’s bank then the process of FDBC starts. For this
purpose the exporter is informed by the bank that his LC is received and he should start
preparing the shipping documents.
2. Finance against Foreign Bills “FAFB”
In FAFB facility exporter take loan from bank on the behalf of their foreign export bills. Like
exporter sends shipment but at that time he needs fund for the operation of the business. He may
go to the bank and surrenders all the documents including L/C, Bill of lading etc. bank checks all
the documents to be in accordance with terms and conditions. If they find no discrepancy, they
give money to exporter but take some margin on it.
Finance against Packing and Credit “FAPC”
FAPC is taken for the preparation of consignment. It has two forms.
 Pre shipment
 Post shipment
1) Pre Shipment
Pre shipment loans are export related working capital financing.
2) Post Shipment
Post shipment financing is essentially the receivable financing to the exporters till the period he
is out of cash after the shipment.
Finance against Trust Receipt “FATR”
Finance is extended upon the trust receipt signed by borrower
Trust receipt is given to the bank by the customer. The customer in turn commits that I will pay
on such and such date. Banks pays all taxes and gets merchandise and then gives it to client.
Bank do charges markup against such financing. FATR is for specific period of time. If client
does not pay with in specified time then bank will charge higher per day markup
SWOT ANALYSIS
SWOT is stands for strengths, weaknesses, opportunities and threats. SWOT analysis is a
careful evaluation of an organization’s internal strengths and weaknesses as well as

52. its environmental opportunities and threats. In SWOT analysis the best strategies accomplish an
organization’s mission by exploiting an organization’s opportunities and strengths
while neutralizing its threats and avoiding its weakness. During my internship I also
observe these factors of bank Alfalah and made a conclusion which is as follows:
 Strengths:
 Main strengths of bank Alfalah are describe follows due to which bank is
becoming successfulday by day and now is on the fifth largest and successful
bank in Pakistan in the bank’s ranking after NBP,MCB,UBL and HBL.
 Being the private organization its main aim is not to earn profit but also to satisfyits
customers and slogan of BAL is also the representative of this purpose as Bank Alfalah
“The Caring Bank”.
 Bank has AA (Double A) and A1+ (A one plus) Credit Rating for long term and
short term loans respectively.
 The management of the bank is very much concerned with the development and
improve me nt of the working environme nt. The bank has state of the
art and purpose built branches where all the modern technologies are provided to get the
efficiency of the workforce and the customer satisfaction.
 The bank is one of the pioneers of the commercial banks who have started the
Islamic Banking along with their conventional banking. The bank has a separate
network of its Islamic Banking Division which has 16 branches across the country
and this network is also expanding at a very good pace.
 Weaknesses:
Beside all these strengths I also noted some weaknesses in the operations of bank Alfalah which
are described below:
 BAL is that it is not offering the loan facility to newly established
businesses because it’s the BAL policy that it will give loan only to that people who are
running their businesses from 3 years. It means BAL does not courage the people who want
to start their new ventures.
 Majority of the workforce consists of young professiona l, they lack in
their experience. And sometimes lack of experience becomes a hurdle while serving the ir
customers. It is the point where they feel difficulty while competing with the other banks.
 It was observed that at present the motivation level of the employees is not very
much high.

53.  The increased workload has resulted in the reduced efficiency of the employees.
Because now the time required for completing the tasks for a single customer has been
increased. As a result the environment of the branch has become very messy..
 Miss management of time is another drawback in Bank Alfalah branches, The bank official
timing for closing is 6 pm but due to miss management employees leave there desk at 8 pm.
 Opportunities:
It is mandatory to try to make progress with consistency as well as to adopt changes withneeds of
time, in order to cope up with both conditions.
 Bank Alfalah is spreading its network outside the boundaries of Pakistan and it
has more opportunit ies to e xtend this network as State Bank of
Pakistan has prescribed new policies in the prudential regulations.Now BAL has its
branches in Kabul, Afghanistan.
 In addition to excellent routine banking, it has earned a good name by offering
special products like car, home and credit cards facility. So the penetration
of these products could enhance market shares.
 There is a very good growth trend in the Islamic banking in the country and in the world as
well. BAL has the advantage of having Islamic Banking network and the growth in this
particular field can be very fruit ful for the bank, bank has an opportunity
to introduce new products and services in Islamic banking.
 Bank Alfalah is surrounding by many competitors it has an opportunity to aggressive
marketing and increase its business.
 The SBP has revised the interest policy and the interest rates have been linked with
the KIBOR rates. Due to which the banks interest rate has been substantially
increased which will greatly increase the banks’ profitability.
 Threats:
Threats are the negative trends in external environme nt a l factors. As
on one side environment provides opportunities to one organization, on the other
hand it also has to face some threats. Bank Alfalah also has to face this situation.
 Other foreign financial institutions like City Bank, HSBC etc also having strong banking
policies and there’s a chance that people might move toward these
financial institutions to secure their investments, transactions and related services.

54.  For last seven year there is political stability in Pakistan but now again a new
layer of political instability arises which effects almost all industries including
Banks.
 Due to economic instability like currency depreciation and inflation, the bank is
constantly facing a threat e.g. in case of inflation the people have low disposal
income which means lower deposits in banks.
 Other investment opportunities like investment in property and gold are
giving people more return as compare to banks; it can decrease the deposits of bank.
 Due to its privatization policy, the govt. is privatizing the state owned banks. The
change in management may result in the increase in the efficiency and productivity
of the banks. Thus it can become a threat for the bank.
PEST ANALYSIS
A broad view of market is important when management is interested in introducing
better services for customers. Rapid technological change, global competition and the diversity
of buyers preferences in many markets require the constant atten tion of
the market vouchers to identify promises business opportunities, see the shifting requirements
of the buyers, evaluate changes in competitors positioning and guide the choice of which buyers
to target and classify them according to respective segments. Identification of external and macro
factors that influence buyers and thus change the size and composition of market overtime
involves initially building customer profiles. These influences include:
 Political environment
 Economic Indicators
 Socio cultural environment
 Technological factors
 PoliticalEnvironment
The events in the last couple of years; ever since the sacking of Chief Justice
Iftikhar Choudhary, Pakistan has faced crisis after crisis, including the lawyers’
movement,violence in Karachi, the Lal Masjid debacle, militancy in FATA and NWFP, Drone
attacks, corruption of politicians, milit ar y operation in Swat and other politica l
events- all these indubitably made a huge impact on the economy.Stability and law and
order situation under the political regime is very important for theeconomy as a whole. The
present state of the government in Pakistan is directly affectingt he policies of
banks. Continuo us politica l changes have disrupted the policies andobjectiv
es as each regime brings with it its own agenda. Organizations need time to adjust to one
regime and then work with it towards economic enhancement. Due the
wrong policies of the government, the talibanization also develop in Pakistan and

55. become theinternational issue in Pakistan and badly affected the Pakistan repute in
the world and promote the uncertain conditions for the business in the
for the business in the Pakistan. Due to this theinvestors are not interested in the
Pakistan.
.
 ECONOMIC INDICATORS
The economy of any country directly influences any financial organization.
Economic indicators include Gross Domestic Product (GDP), inflation, balance of payment,
debt of the government.
P a k is t a n’ s e c o no my ha s w it ne s s e d t he mo s t c ha lle n g i n g p e r io d
a ft e r p o s t ing s ix consecutive years of healthy economic growth. However, the
strong fundamentals werecompromised to prevailing global crises that’s shacked the
confidence of global investors and FDI flowing in the country. The steep rise in oil
prices, soaringinflation, huge fiscal deficits and balance of payments issues coupledwith
plummeting for reserves added to the economy’s move to an unstable
growthtrajectory.Also the load shading is another factor that affects the Pakistan economy badly.
This notthe end of the story after this Pakistan’ economy face lot of problems
 SOCIO CULTURAL ENVIRONMENT
A low saving culture has offset the
huge populatio n advantage this is enjoyed byPakistan. Also culture is dedicated by
the religion, and in Pakistan a significant segmentof the population is reluctant to accept
interest for their deposits due to the negativereligious implications of such an act.
About 70% of Pakistan’s population is based onrural areas and literacy rate of the
country is very much low, thus making it harder for banks to mobilize their deposits
within these regions.Howe ve r, in today world, the customers are becoming
more intellige nt and throughmed ia they keep themselves up to date. Thus,
the lifest yle and expectations of the customers from the service provider is increasing
day by day.
 TECHNOLOGICALFACTORS
Ba nk s in t he d e ve lo p e d w o r ld ha ve b e e n t ur nin g t o he a vy I T inv
e s t me nt s , w hic hdifferentiate their products, provide response times, enhance
accessibility and improve customer satisfaction. Though investing in state-of-
the-art host banking solution,
ATMand PO S (point of sale) networks, visa, MasterCard, and, smart car
ds, telebanking, internet banking and now mobile banking are common IT
investment in the developed world, it is now that these products and services are gaining
faster acceptance in Pakistan. In BAFL technology has great effect on the
working environme nt. BAFL is always willing to introduce new computer
systems for keeping its staff up to date. With the successful implementation of
new centralized database system, the bank also achieved remarkable progress in

56. business process re-engineering, turnaround time compliance by centralizing outward
remittances, account opening and credit administration.