Bank Alfalah was established in 1998 after taking over the Pakistani branches of the banned BCCI bank. It has since expanded to over 400 branches within Pakistan and abroad. The document provides an overview of Bank Alfalah's management, financial performance, branch network, credit portfolio, foreign operations, human resources, and operations departments. It concludes with general principles for account opening procedures.

1. In The Name Of ALLAH, the Most Merciful, the Most
Beneficent

2. ACKNOWLEDGMENT
All praises are for Allah almighty that has bestowed upon human being the crown
of creation and has endowed him with knowledge and wisdom. After Allah, is the last
prophet Mohammed (S.A.W) who brought for us revelation and unlimited knowledge
and civilized the barbarian human being. First of all this report owes it originated to the
valuable assistance of our learned & honorable teacher Madam Mehreen Khalil whose
able guidance and encouraging attitude throughout has been a source of inspirations for
us. Without his kind attitude patronage, we would have never accomplished this task.
I am also thankful to the staff of Bank AlFalah Main Branch Abdali road
Multan, especially to Mr Mohsin ALI (Branch Manager) .Mr. Asim Shabir ( Head of
Credit Department ), Mr Fahad Asghar ( Operation Manager), Mr. Khurram, Mr Farhan ,
Mr. Yousaf, Ms Saima Rani, and Ms Bushra Riaz. My special thanks to all my teachers
and seniors who provided me with their kind guidance at each and every step whenever
I felt difficulty.
Fatima Arshad
BB-09-82

4. Dedication
We dedicate this report to the Shuhda of Siachin Giari sector who scarified
their today for our tomorrow.
“The martyred of Pak Army we can’t pay you back.”

5. 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 ye 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.

6. INTRODUCTION OF ORGANIZATION
Bank of Credit & Commerce International (BCCI) was a Pakistan based bank, established by
Mr.Agha Hassan Abdi from UBL, in association with U.A.E and Europe. BCCI has
its branches in 74 different countries of the world. It had its 3 branches in Pakistan.
In 1991,the BCCI was banned, when it was accused by European countries
that the bank was involved in some illegal operations with Gulf countries. The major
reason behind European accusation was that BCCI was of Islamic mode. Therefore, the
bank was closed due to international pressure. Then, its 3 Pakistani branches were
taken over by the Government of Pakistan, which were named as Habib Credit and
Exchange Bank (HCEB) and these were working as subsidiary of Habib Bank Limited.
Following the privatization in July 1997, Habib credit and Exchange Banned assumed the new
identity of Bank Alfalah on February 25, 1998. It is now Abu Dhabi based bank as the family
of Sheikh N ahayan Mubarik Al N ahayan purchased 70% of its shares and
30%shares remained with Habib Bank on behalf of Government of Pakistan. The
development of various sectors in Pakistan the bank has already made significant
contribution in building and strengthe ning both corporate and retail
banks sector in Pakistan. Assessment of the needs and wants of customer is an
ongoing process at Bank Alfala h, which help to centennia l ly develop new
products of services. Designing the product portfolio in response to royal patriot,
royal custodial, Alfalah car finance, Alfalah rupee traveler cheques, home loans are prime
example of quality innovation providing timely banking opportunities to customer.
To continuously offer courteous, professional and advanced banking solution the
team of bank has recently been rejuvenated by going through training programs with
focus to information technology.
Today, Bank Alfalah is the 5th Largest bank of Pakistan. BAL operating banking activities in
more than 95 cities of Pakistan and having more than 400 branches in
BOARD OF DIRECTORS
H.H. Sheikh Hamdan Bin
Mubarak Al Nahayan
Chairman

7. Mr. Abdulla Nasser Hawalileel
Al-Mansoori
Director
Mr. Abdulla Khalil Al Mutawa
Director
Mr.Khalid Mana Saeed Al
Otaiba
Director
Mr. Ikram Ul-Majeed Sehgal
Director
Mr. Nadeem Iqbal Sheikh
Director
Mr. Atif Bajwa
Director & CEO
MANAGEMENT
Mr. Atif Bajwa
ChiefExecutive Officer
Mr. Bahauddin Khan
ChiefOperating Officer
Mr. Mohammad Yousuf
ChiefRisk Officer
Mr. Shakil Sadiq
Group Head
SME

8. Mr. Adnan Anwar Khan
Group Head
Retail & Middle Market, Central
Mr. Ijaz Farooq
Group Head
Islamic Banking
Mr. Nadeem Ul Haq
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
Mr. Syed Ali Sultan
Group Head
Treasury & Financial Institutions
Mr. Anwer Umed Ali
ChiefInformation Officer
Mr. Mian Ejaz Ahmed
General Manager
Legal & Company Secretary
Mr. Zafar Baig
ChiefFinancial Officer

9. 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”
H.H.Sheikh Hamdan Bin Mubarak Al Nahayan

10. To be the premier organization operating locally & internationality that provides
the complete range of financial services to all segments under one roof.
To develop & deliver the most innovative products, manage customer experience,
deliver quality services that contributes to brand strength, establishes a competitive
advantage and enhances profitability, thus providing value to the stakeholders of
the bank.

11. 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
Division of Bank Alfalah:
Bank Alfalah has two divisions:
1. Islamic Banking Division
2. Conventional banking division
FINANCIALHIGHLIGHTS
Bank Alfalah has grown 51.84% in its total assets and 101.35% in its equity. The
Bank netted record pretax profit of Rs. 3.506 billion, a 291.85% increase over the corresponding
years to 2004, which includes capital gains on Federal Government securities of Rs.
2.19 billion. The deposits of the Bank rose to Rs. 76.7 billion which is 48.4%
higher than corresponding period last year (2004) and indicat ive of increas
ing customers’confidence in your Bank, because of its superior services and healthy
practices. The Loans and Advances figure stood at Rs. 50.37 billion, an increase of
approximately71% over the last financial year (2004)
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.This
Portfolio has been supplemented keeping the Bank’s stringent and prudent policies in view.

12. BRANCH NETWORK OFBANK ALFALAH LIMITED
The Bank is fully aware that the branch network has direct implications on the services that it
provides to its customers. In the year 2005, nine (73) commercial banking branches and five (5)
Islamic banking branches were added to the Bank Alfalah network extending
our coverage to one hundred one (101) branches in twenty-three (23) cities nation wide.
But, today the bank is operating through more than 400 branches domestically and an
international presence in Afghanistan, Bangladesh and Bahrain, with the registered office at
B.A.Building, I.I.Chundrigar, Karachi. Some of the main branches are located in all of the major
cities
including: Chakwal, Hyderabad, Lahore, Kasur, Islamabad, Gawadar, Peshawar, Faisalabad, Que
tta, D.I.Khan, Rawalpindi,Sargodha, Sheikhupura, Sukkur, Sialkot, Multan, Murree, Attock
District, Gujranwala, Pirmahal, Mirpur KhasLodhranD.G.Khan ,etc
CREDITPORTFOLIO
A depressive interest rate environment has spurred the competition for scarce
banking assets in local financial industry. While Bank Alfalah remains a key player in the
market, however, it treads with caution so that the quality of its credit portfolio is not
compromised.T he Ba nk ha s e mp lo ye d a p r o a c t ive a p p r o a c h in t he fo r m
o f a w e ll- d e s i g ne d a nd transparent credit approval p rocess. This
process benefits from an inherent system of checks and balances at each level.
FOREIGN TRADE, CORPORATE BANKING AND TREASURY OPERATIONS
Bank Alfalah offers high quality service to its foreign trade clients. Customers are assured of
efficiency and timeliness when dealing with their overseas counterparts. Our clients
enjoy the benefit of our well integrated global correspondent-banking network giving them
greater global reach. This comprises more than 200 financial institutions all over the world
signifyi ng the favorable reputation that Bank Alfala h enjoys globally as s
uitable and responsible banking institution. During previous years, the foreign trade
volume of the Bank has recorded an impressive growth and it had reached to the
level of 8% of total foreign trade of the country. The imports figure of Rs.
46.81 billion and exports figure of Rs. 44.27 billion represented an increase of 38% and 34%
respectively over the last years. The Bank has also been fairly active in the inter-bank market and
enjoyed substantial lines of credit.
HUMAN RESOURCE DEVELOPMENT
Development of professional skills and knowledge of the employees is essential for
the efficient functioning of any organization. At Bank Alfalah appropriately designed policies
and practices have been instituted to achieve this strategic objective. Our state-of-the-art training

13. centre at Karachi remains indispensable in imparting valuable training to all our team
members. This has become especially important considering the pace of change that the
banking industry is exposed to. Consequently training ensures that change is successfully
navigated to discover potentially beneficial opportunities that can be transformed into direct
gains for the Bank and its customers. This also positively
impactsthe confidenc e levels of our employees translat ing into better job p
erformance andsatisfact io n. During the year 2004-
2005 we aim to establish a simila r training anddevelopment facility in Lahore,
Pakistan.
OUTSTANDING WORK ENVIRONMENT
As the work environment plays a great role in this competition age, so the bank has
goodwork environment. All the people work with cooperation; managers are so kind
that each problem can be discussed with them.
EFFICIENCY
Employees at Bank Alfalah are quite efficient. They work more than their working
hours and it is all according to their will. It also shows their loyalty, commitment to
organization.
EMPLOYEE BENEFITS
Employees are given the benefits like bonus, gratuity funds, loans, increments, house rent,
medical and conveyance allowances.
COMPUTERIZED WORKING ENVIRONMENT
In bank, all the work is done remotely. All the entries are made using the systems which are
internally and externally integrated. This increases efficiency of the bank.
ORGANIZATION HIERARCHY

14. 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

15. 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
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:

16. 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.
 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

17. 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
 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.

18.  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
 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.

19. 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.
 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.
 PUBLIC LIMITED
 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

20. o Accounts of local authorities/ municipals.
Major Deposit Account Products
 CURRENT ACCOUNT:
 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

21.  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 f unds 24
hours a day.
 Term / Fixed Deposit
 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.

22.  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.
 ALFALAH KAMYAB KAROBAR:
Online Current Account
Bank Alfalah presents Alfalah Kamyab Karobar (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
 Alfalah Mahana Amdan
 Alfalah Mahana Amdan 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

23. 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 department is
given the complete responsibility of cash, as result of transaction in touch local and
foreign currencies. It is also responsible for the book keeping of these transactions
and the safe custody of cash. Out of five counters of cash department one counter is
fix for senior citizens and females. All counters 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

24. 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
Mr Yosuf 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:
 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
of cheques 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
to confirm the good
REMITTANCES
Meanings of Remittances
“
Remittance is transfer of fundsfrom one place to another or fromone person
to another.”A Remittance is an important service provided by banks tocustomers

25. 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:-
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 remittee isalso 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

26.  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
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 clearing of 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:-

27. 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
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.

28. 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
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

29. 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
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

30. 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
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:

31. 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
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

32. 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 theexporters account.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.
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)

33. 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
 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

34. 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 og mortagage because they are not supposed to be
registered 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
themargin requirements.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.

35. 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
 Special offer on Warid post 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

36. 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
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 :

37. 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
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

38. 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.
You already own a home, but need extra space for a growing family. Simply
apply for financing of up to Rs. 3.50 million or 40% of the surveyed value of
your home (whichever is less) and get yourself the extra space!
You can stretch payments for up to 10 years
You have a plot and need finance to construct a home, which excites
everyone in your family! No problem. We will provide you up to Rs.10.00
million, or 70% of the estimated value of constructed property to enable you to
say good-bye to rent forever! Even if you don't have a plot, we will provide you
up to 60% of the value of the plot that you have selected to purchase! Do we
excite your imagination?
Payment period ranges from 3 to 20 years.
Does your existing installment on a home finance leave you with nothing to
spend? You need not worry any more because we have genuinely low rates
and payment options that could leave more funds with you each month. With
our BTF, repaying your home finance will not make you break into a sweet!
Transfer up to Rs. 10.00 million or 100 % of the existing finance, whichever is
less.
Stretch your repayment period for up to 20 years again !

39. The crown jewel of our Home Finance Scheme, the golden opportunity for
someone starting a career to buy an already constructed housing unit so early
in life! We offer a moratorium of up to 3 years in principal payments, for a
financing of upto 20 years. You service only the mark-up element initially, and
principal repayment starts after the end of moratorium period. Home Start is
specially designed for young people to own a home of their own.

42. 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.”
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

43. 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
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

44. 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

45. 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

46. 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.
 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 form so 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.

47.  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.
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

48. 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
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.

49. 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
FINANCIAL ANALYSIS
 HORIZONTAL AND VERTICAL ANALYSIS
Vertical analysis of Balance sheet
2011 2011 2010 2010 2009 2009 2008 2008
ASSETS Rs .M % Rs . M % Rs .M % Rs .M %
Cash andbalances withtreasury banks 50882 0 41197 10.0119 35056 9.010273 32687 9.36719
Balances with other banks 17424 3.722 16179 3.9319 22722 5.840125 21581 6.18452
Lendings to financial institutions 7765 1.659 6497 1.57893 14947 3.841755 3315 0.94999
Investments-net 166531 35.57 113425 27.5651 99159 25.48636 75937 21.7614
Advances- net 198468 42.39 207152 50.3432 188042 48.33152 191790 0
Fixed assets 13388 2.86 14204 3.45193 14492 3.724808 13773 3.94696
Deffered tax assets 421 0.09 - - -

50. Other assets 13290 2.839 12826 3.11704 14649 3.765161 9869 2.82818
Total Assets 5E+05 100 411480 100 4E+05 100 348952 100
LIABILITIES & EQUITIES
Bill payable 5403 1.154 4521 1.09872 3766 0.967957 3452 0.98925
Borrowings 18168 3.881 13700 3.32944 20653 5.30834 13690 3.92318
Deposits andotheraccounts 401247 85.71 354015 86.0346 324759 83.47123 300732 86.1815
Sub-oriented loans 7148 1.527 7567 1.83897 7570 1.94568 2571 0.73678
Liabilities against assets subject to
finance lease - - - -
Deferred and taxliabilities - 115 0.02795 179 0.046007 208 0.05961
Other liabilities 10427 2.227 9258 2.24993 10006 2.571794 0 3.23569
Total Liabilities 4E+05 94.5 389176 94.58 4E+05 94.311 331944 0
Shared Capital 13491 2.882 13491 3.27865 13491 3.467526 7995 2.29115
Reserves 4100 0.876 3819 0.92811 3587 0.921949 3166 0.90729
Unappropriateprofit 5248 1.121 2415 0.58691 2690 0.691398 3447 0.98781
Surplus on revolution ofasset-net of
tax 2937 0.627 2578 0.62652 2363 0.60735 2436 0.69809
Total Equity 25776 5.51 22303 5.4202 22131 5.6882 17044 4.884
HORIZONTAL ANALYSIS OF PROFIT AND LOSS ACCOUNT
2011
11 vs
10 2010 10 vs 09 2009 09 vs 08 2008
ASSETS Rs .M % Rs . M % %
Cash and balances with treasury banks 50882 23.51 41197 17.5177 35056 7.24753 32687
Balances with other banks 17424 7.695 16179 -28.7959 22722 5.287058 21581
Lendings to financial institutions 7765 19.52 6497 -56.5331 14947 350.8899 3315
Investments-net 166531 46.82 113425 14.387 99159 30.58061 75937
Advances- net 198468 -4.19 207152 10.1626 188042 -1.95422 191790
Fixed assets 13388 -5.74 14204 -1.9873 14492 5.220359 13773
Deffered tax assets 421 - - -
Other assets 13290 3.618 12826 -12.4445 14649 48.43449 9869
Total Assets 468169 13.78 411480 5.7607 389067 11.49585 348952
LIABILITIES & EQUITIES
Bill payable 5403 19.51 4521 20.0478 3766 9.096176 3452
Borrowings 18168 32.61 13700 -33.6658 20653 50.86194 13690
Deposits and other accounts 401247 13.34 354015 9.00853 324759 7.989506 300732
Sub-oriented loans 7148 -5.54 7567 -0.03963 7570 194.438 2571
Liabilities against assets subject tofinance
lease - - - -
Deferred and tax liabilities - -1 115 -35.7542 179 -13.9423 208

51. Other liabilities 10427 12.63 9258 -7.47551 10006 -11.3807 11291
Total Liabilities 442393 13.67 389176 6.06187 366933 10.54063 331944
Shared Capital 13491 0 13491 0 13491 68.74296 7995
Reserves 4100 7.358 3819 6.4678 3587 13.29754 3166
Unappropriate profit 5248 117.3 2415 -10.223 2690 -21.9611 3447
Surplus on revolutionof asset-net oftax 2937 13.93 2578 9.0986 2363 -2.99672 2436
Total Equity 25776 15.57 22303 0.77719 22131 29.84628 17044
VERTICAL ANALYSIS OF PROFIT AND LOSS ACCOUNT
PROFITand LOSS ACCOUNT
2011 2011 2010 2010 2009 2009 2008 2008
Interest/Return/Non-interest-INCOMEERANED Rs .M % Rs . M % Rs .M % Rs .M %
Mark up/Returninterestearned
1428
1
72.6
9 9414
66.676
1 6835
56.7219
9 6928
58.971
7
Fee, commissionand brokerage income 2148
10.9
3 1986
14.066
2 1913
15.8755
2 2116
18.011
6
Dividendincome 191
0.97
2 204
1.4448
6 284
2.35684
6 300
2.5536
3
Income in dealing withforeign currencies 1115
5.67
5 1133
8.0246
5 1019
8.45643
2 914
7.7800
5
Gain on saleofsecurities-net 140
0.71
3 77
0.5453
6 688
5.70954
4 424
3.6091
2
Unrealized (loss)/gainon investments classifies as
held for trading -11 -0.06 3
0.0212
5 2
0.01659
8 -181
-
1.5407
Other income 1783
9.07
5 1302
9.2216
2 1309
10.8630
7 1247
10.614
6
Total non-markup interest income 5366 27.3 4705 33.324 5215 43.278 4820 41.03
Total
1964
7 100 14119 100
1205
0 100 11748 100
Mark up/Return/Non-interest Expenses
Non mark up/Return interest expense - -
Administrative expenses
1383
2 70.4 12578
89.085
6
1092
3 90.6473 9805 83.461
Provision againstoff-balancesheetobligations - 6 0.0425 -1 -0.0083 28
0.2383
4
Provision againstother assets 183
0.93
1 93
0.6586
9 - -
Other charges 199
1.01
3 76
0.5382
8 79
0.65560
2 122
1.0384
7
Total Expense
1421
4 72.3 12753 90.325
1100
1 91.295 9955 84.74
Profit before taxation 5433 27.7 1366 9.6749 1049 8.7054 1793 15.26
Total Taxation 1930 9.82 400 2.8331 119 0.9876 493 4.196
Profit after taxation 3503 17.8 966 6.8418 897 7.444 1301 11.07

52. Other comprehensiveIncome
Exchange differences on translation ofnet
investment inforeign branches -419 -2.13 37
0.2620
6 242
2.00829
9 490
4.1709
2
Comprehensive income -transferred to statement of
changes in equity 3083
15.6
9 1005
7.1180
7 - -
Components of comprehensive incoe not reflectedin
equity
Surplus/Deficiton revalution for salesecurities-net of
tax 387 1.97 -437
-
3.0951
2 - -
Total comprehensiveincome 3471 17.7 568 4.0229 1139 9.4523 1792 15.25
HORIZONTAL ANALYSIS OFPROFIT AND LOSS ACCOUNT
PROFITand LOSS ACCOUNT
2011
11 vs
10 2010 10 vs09 2009 09 vs08 2008
Interest/Return/Non-interest-INCOMEERANED Rs .M % Rs . M % %
Mark up/Return interest earned
1428
1 51.7 9414
37.7322
6 6835
-
1.34238 6928
Fee, commission and brokerageincome 2148
8.15
7 1986
3.81599
6 1913
-
9.59357 2116
Dividend income 191
-
6.37
3 204 -28.169 284
-
5.33333 300
Income in dealing with froeign currencies 1115
-
1.58
9 1133
11.1874
4 1019
11.4879
6 914
Gain on sale ofsecurities-net 140
81.8
2 77
-
88.8081 688
62.2641
5 424
Unrealised (loss)/gain on revolutionofinvestments
classifiesasheld for trading -11
-
466.
7 3 50 2
-
101.105 -181
Other income 1783
36.9
4 1302
-
0.53476 1309
4.97193
3 1247
Total non-markup interest income 5366
14.0
5 4705
-
9.77948 5215
8.19502
1 4820
Total Income
1964
7
39.1
5 14119
17.1701
2
1205
0 2.57065
1174
8
Mark up/Return/Non-interest Expenses
Non mark up/Return interest expense - -
Administerativeexpenses
1383
2 9.97 12578
15.1515
2
1092
3
11.4023
5 9805
Provision against off-balance sheet obligations - -1 6 -700 -1
-
103.571 28
Provision against other assets 183
96.7
7 93 - -
Other charges 199
161.
8 76
-
3.79747 79
-
35.2459 122
Total
1421
4
11.4
6 12753
15.9258
2
1100
1
10.5072
8 9955

53. Profit before taxation 5433
297.
7 1366
30.2192
6 1049
-
41.4947 1793
Total Taxation 1930
382.
5 400
236.134
5 119
-
75.8621 493
Profit after taxation 3503
262.
6 966
7.69230
8 897 -31.053 1301
Other comprehensiveIncome
Exchange differenceson translationofnet investment
in foreign branches -419
-
1232 37
-
84.7107 242
-
50.6122 490
Comprehensiveincome -transferred to statement of
changesin equity 3083
206.
8 1005 - -
Comprehensiveincome not reflectedin equity
Surplus/Deficiton revalutionfor sale securities-net of
tax 387
-
188.
6 -437 - -
Total comprehensiveincome 3471
511.
1 568
-
50.1317 1139
-
36.4397 1792
RATIO ANALYSIS
2011 2010 20092008 2007 2006 2005 2004

54. 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

55. 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 successful day 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.

56.  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 extend 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.

57.  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 attention 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 the economy as a whole. The
present state of the government in Pakistan is directly affecting the 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

58. wrong policies of the government, the talibanization also develop in Pakistan and
become the international 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 the investors 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 were compromised to prevailing global crises that’s shacked the
confidence of global investors and FDI flowing in the country. The steep rise in oil
prices, soaring inflation, huge fiscal deficits and balance of payments issues coupled with
plummeting for reserves added to the economy’s move to an unstable growth
trajectory. Also the load shading is another factor that affects the Pakistan economy badly. This not
the 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 by Pakistan. Also culture is dedicated by
the religion, and in Pakistan a significant segment of the population is reluctant to accept
interest for their deposits due to the negative religious implications of such an act.
About 70% of Pakistan’s population is based on rural areas and literacy rate of the
country is very much low, thus making it harder for banks to mobilize their deposits
within these regions .However, in today world, the customers are becoming
more intellige nt and through media 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

59. new centralized database system, the bank also achieved remarkable progress in
business process re-engineering, turnaround time compliance by centralizing outward
remittances, account opening and credit administration.
COMPETITOR ANALYSIS
 Major Competitors
The growth in the banking industry of Pakistan has led to an increase in the number of banks
both domestic and international to be established and create a competitive industry. For Bank
Alfalah its competitors come in the form of both domestic and international commercial banks
established in Pakistan
However Bank Alfalah feels that its major competitors are as follows:
o United Bank Limited (UBL)
o HBL
o MCB Bank
o Citibank
o Askari Bank
As far as UBL is concerned, Bank Alfalah feels that it is a competitor because UBL itself is a
sister company of Bank Alfalah as the Abu Dhabi Group has stake in UBL and so there is
always a comparison between them.
Furthermore, Askari Bank is a competitor because of the fact that the product and
services that it offers is fairly similar to that of Bank Alfalah and its markup rates are similar
as well. MCB, after being privatized has also introduced a wide variety of services and
with its large number of account holders, it is also a big competitor.
Citibank is a foreign bank that has been established in Pakistan for a long period of time and has
introduced a number of first class services and as Bank Alfalah is also competing in the services
industry, it needs to benchmark its product and services to a bank with a stature to that of
Citibank.

60. Banks Deposits(in
thousands)
Overall
Market Shares
Domestic
Banks Market
Shares
Foreign Banks
Market Shares
Bank Alfalah 239509391 7% 8%
Askari Bank 131839283 4% 4%
MCB Bank 257461838 8% 8%
United Bank
Limited
335077873 10% 11%
Citi Bank 63103884 2% 42%
Total Market
Shares
31% 31% 42%
Total Deposits
(in millions)
3200332
Total Deposits
of Domestic
Banks (in
millions)
3050239
Total Deposits
of Foreign
Banks (in mill)
150093
 Their Market Shares
According to a publication of the State Bank of Pakistan, ‘The Banking Statistics of Pakistan
2006’, the total deposits for banks over all were Rs. 3,200,332 (million) and market shares of
the competitor banks in term of deposits and other accounts are as follows:
Table 8: Market Shares in terms of Deposits
As deposits in a bank are an indicator of its performance, in terms of gaining confidence of the people, so this
indicator of measuring market shares in terms of deposits show that bank Alfalah has a very close competition
in terms of deposits.
Another measure to calculate market shares of Bank Alfalah competitors is through their net profit after tax
and the table below shows the market shares.
Table 9: Market Shares in terms of Profit after Taxes

61. Banks Profits after
taxes
Overall
Market Shares
Domestic
Banks Market
Shares7
Foreign Banks
Market
Shares8
Bank Alfalah 1762691000 2% 2%
Askari Bank 2249974000 3% 3%
MCB Bank 12142398000 14% 15%
United Bank
Limited
9468232000 11% 12%
Citi Bank 2575161000 3% 60%
Total Market
Shares
33% 32% 60%
Total Profits 84176000000
7
Incorporated in Pakistan
8
Incorporated Outside Pakistan
Bank Alfalah Limite d (BAL) is Pakistan’s fifth largest bank in terms of assets as well as
deposits. It has been the fastest growth story in the industry. BAL has shown excellent asset quality,
sufficient capital levels and good profitability.
RECOMMANDATION
Finally, I am going to gives few recommendations on the basis of my personal experience of
eight weeks of internship in Main Branch, Multan.
 The ma in a nd b igge s t p r o b le m w hic h I fo und t ha t ma in b r a nc
h is a lw a ys overcrowded. In rushing hours, there is shortage of seating
facility not only for customers but also for the employees of the managers. Number of
seats should be increased on priority basis for employees and customers.
 Reception desk should be worked properly with the help of skilled person for the purpose
of guidance for customers.
 Number of counters should be increased specially in rush hours to reduce the size of
waiting line in rushing hours.
 I n t he b r a nc h, t he r e is p r o p e r o ne
s e c t io n fo r t he TT, D D a nd A TM c a r d application, which not only save
the time of cash department but also helps the IT department people to concentrate their
original task.
 Bank Alfalah is only dealing in Money Gram; it should also starting providing theservice
of other money transfer lines like Western Union.

62.  BAL should provide loan to students at low mark up rate and easy
terms &conditions.
 Bank Alfala h Limited needs to use more marketing channels such as
radio to make the public aware of its products and services. In the presence
of intense competition Bank Alfalah Limited has to realize the importance of
marketing.
 Bank Alfalah has equipped its branches with all major IT tools being used in the industry
like ATM’s, fax machines, photocopiers, printers, latest computers and good connectivity
architecture, however it has been observed that when its time to work, there are many
failures seen in the different devices used by Bank Alfalah, especially its connectivity
architecture and remains offline with the main server, that creates problems for the
customers
 Participat ive manageme nt concept should be adopted, where ideas fr
om theemployees should also be taken, not only for developing products but
also on service, efficiency, employee morale etc. in order to improve them.
OBSERVATION AND CONCLUSION
I observed the bank Alfalah a financially sound bank. Its profits are increasingly year by year. Its
staff is very good and sincere with the bank. Bank Alfalah under the leadership of Sheik
Nahayan Mabarak Al-Nahayan 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.Bank Alfala h views specializat io n and service excellenc e as the corn
erstone of itsstrategy. The people at bank realize that innovation, creativity,
reliability, customized, services 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 into the 21 st
Century and they must meet its c ha lle n ge s b y a c q uir i n g t he highe s t
le ve l o f t he t e c hno lo g y. The y w ill t hus b e accelerating their
technological advance to enable them to distribute their products and services through
most efficient and high tech means. They say that they will continue to invest in the modern tools
and substantial allocation to resources will be made to achieve his o b j e c t ive d ur ing

63. t he c ur r e nt ye a r . P ho ne Ba nk in g a nd c r e d it c a r d ha ve b e e n introduced
in many cities