INTERNSHIP REPORT ON

Submitted To:

The Chairman Department of Business Administration, Allama Iqbal Open University, Islamabad, Pakistan.

Submitted by: Tahir Aziz Mailing Address: House No.1284, Street No.32 G-9/4 Islamabad.
IN THE NAME OF ALLAH, THE MOST GRACIOUS, THE MERCIFUL
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DEDICATED TO My PARENTS WHO ALWAYS LOVED ME & all those who have a soft corner for me in their hearts

ACKNOWLEDGEMENT
All gratitude and thanks to almighty ALLAH the gracious, the most merciful and beneficent who gave me courage to undertake and complete this task. I am very much obliged to my ever caring and loving parents whose prayers have enabled to reach this stage, my teachers and Bank Alfalah staff, who gave me lot of

information and guidance in making this report. I visited the different offices of this company for about three months and this research enabled me to draw a line of distinction between theory and practical. The procedure in theory and practical is the same but we can not learn theory without practice and practice without theory is also blind. I am highly indebted to my parents for their constant direction and encouragement in all phases of MBA and also during my project work. They devoted numerous hour from their busy schedule for my help. It was only due to their endless helps and support that I am able to complete this project and also my MBA program.

The last acknowledgement goes to Mr. Mosawer Hussan Branch Manager, Mr.Atif Shehzad Relationship Officer in Bank Alfalah assisted valuable and worthless ideas to compile this project.

1 EXECTIVE SUMMARY 2 OBJECTIVES OF STUDYING OF ORGANIZATION 2.1 2.2 2.3 OVERVIEW OBJECTIVES THAT I WANT TO ACHIEVE DEPARTMENTS THAT I WORKED DURING MY INTERNSHIP

7 10 10 10 11 12

3 OVERVIEW OF THE ORGANIZATION 3.1 BREIF HISTORY OF THE ORGANAZATION 13 3.2 NATURE OF THE ORGANIZATION 14
3.2.1 TYPES OF BUSINESS ACTIVITIES 15

3.3

BUSINESS VOLUME IN TERMS OF REVENUE, DEPOSITS, ADVANCES, INVESTMENTS 17 18

3.3.1 Financial performance 3.4 3.5 Operational result Balance sheet result

NUMBER OF EMPLOYEES PRODUCT LINE

22 22 4

ORGANIZATIONAL STRUCTURE

30 30 32 32 35 36 37

4.1 OVERALL ALL STRUCTURE OF THE ORGANIZATION 4.2 STRURE OF THE ORGANIZATIION 4.3 STRUCTURE AND FUNCTION OF THE ACCOUNT DEPARTMENT 4.4 FINANCE AND ACCOUNTING OPERATIONS 4.5 ROLE OF FINANCIAL MANAGER IN ESTABLISHING RELATIONSHIP 4.6 USE OF ELECTRONIC DATA IN DECISION MAKING

5 FINANCIAL ANALYSIS 5.1 FIVE YEAR BALANCE SHEET IN SINGLE TABLE 5.2
5.3 5.4

40 41 42
43 44

FIVE YEAR PROFIT AND LOSS STATEMENT IN SINGLE TABLE

RATIOS ANALYSIS COMPITITORS ANALYSIS

6 WEAKNESSES OF THE ORGANIZATION WITH MAIN FOCUS ON FINANCIAL MANAGEMENT 49 6.1 6.2 6.3 6.4 6.5 6.6 6.7 8.8 TECHNICAL ANNOUNCEMENT TRAINING AND DEVELOPMENT JOB ADVANCEMENT LACK OF EMPLOYEES IN SOME DEPARTMENTS NEW PRODUCT INTRODUCTION PPIORITY BANKING AMENTIES AT BARANCH INCENTIVE SCHEMES 49 50 50 50 50 51 51 51 52 53 53 54 54 55 55 55 56 57

7 CONCLUSION 8 RECOMMENDATIONS 8.1 8.2 8.3 8.4 8.5 8.6 8.7 TECHNOLOGICAL ADVANCEMENTS WORKSHOPS AND COUNSELING INCENTIVES PRIORITY BANKING AND BUSINESS DEVELOPMENT DEPARTMENT INNOVATIVE PRODUCTS PLCEMENTS OF EMPLOYEES AMENTIES IN BARANCH

9 APPENDEX

Table 2: PROFIT COMPARISION FOR 2007 & 2008...18 Figure 2: PROFIT FIGURES FOR THE PAST FIVE YEARS.......19 Figure 3: ADVANCES AND DEPOSITS FOR THE YEAR 2003-2008..20 Table 3: EPS FOR THE PERIOD 2002-2008..21 Figure 5: TOTAL NUMBER OF EMPLOYEES FOR THE PERIOD 2002-2008.22 Table 10: PROFIT PAID ON ROYAL PROFIT ACCOUNT..24

Executive Summary
The banking structure in Pakistan comprises of the following types, State Bank of Pakistan, Commercial Bank of Pakistan; Exchange Banks, Saving banks, Cooperative banks, specialized credit institutions. The state bank of Pakistan is the Central bank of the country and was established on July 01, 1948. The network of bank branches now covers a very large segment of national economy. The State Bank of Pakistan issues the shares of these periodically. Bank employees and other common peoples can also purchase these shares and earn profit. To open an account the customer has to meet the general banking manager with an introducer. The procedure begins with the punching of account opening form to the customer file i.e. customers master file. Before closing any account, bank send letter to the account hold for informing him that his account is going to be closed. There is need an approval form higher authority to close any account. Current deposits are those which are payable to bank whenever demanded by the customer. Bank does not pay any profit on current deposits. The following are the financial products/services of PLS Account, Saving Account, Term deposit and Foreign currency accounts. In remittance department like any other BANK AL-FALAH also have instruments for transferring of money, Telegraphic Transfer, Mail Transfer. In cash department both 7

deposits and withdrawals go side by side. This department works under the CD In charge and deals with cash deposits and payments. This department maintains the following sheets, books, and ledger of account cash received voucher sheet. Cash paid voucher sheet, Paying-in-slip, Cheque Book, Cash balance book. The clearing in Karachi at BANK AL-FALAH or other banks is being done through NIFT (National Institute of Facilitation Technology). Bank provides this facility to the people who need advance money to meet their requirement. Party dealing with other banks financial condition of borrower business and as a first step credit proposal is being made. BANK AL-FALAH provides advances, which are two types. Secured Advances, Unsecured Advances. BANK AL-FALAH usually classified advances in to following types Commercial Advances, Corporate/SMEs Advances, Agricultural Advances. Commercial Advances are of following types Demand Finance, Cash Finance, Export Refinance Part I (Pre Shipment) & others. Banks Agriculture division deals with the agriculture advances. Bank provides the Agriculture Advances in order to enhance and support the agriculture sector of the country. Farm Credit & Non Farm Credit. In foreign exchange, BANK AL-FALAH is dealing Foreign Currency Accounts, Foreign Remittances, and Foreign Bills for Collection, Imports & Exports Foreign currency accounts & the foreign currency department deals with the following types of accounts, Current account, Saving bank account, Term deposit. Foreign accounts are convertible on floating rate available to the bank. Letter Of Credit facility is being provided by BANK AL-FALAH in foreign exchange.

2.1 Overview
After the completion of degree MBA (banking & finance) I want to enter and check the practical work according to my specialization. For that purpose I selected the banking sector because I have done specialization in banking and finance. Second and next main objective of studying organization; I want to enter in practical field and want to learn that which discipline is required for leading a
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successful future life. I think I am very lucky person that I selected a Bank Alfalah as my learning organization

2.2 Objectives that I want to achieve

Objectives that I want to achieve by studying the organization are as follows: First of all I want to check the practical work according to my degree specialization. During my internship in Bank Alfalah G-9 markaz I have learnt that how to use the knowledge in practical field. Secondly I want to learn that how to mange an organization and how to mange the finance for a financial organization, as my degree is related to Financial Management and Banking and Finance. Customers dealing is another major objective that I want to achieve. During my internship I learnt that how to deal with customer. Financial institution is a place where every type of businessmen visit, so during my internship in Bank Alfalah I met with many businessmen and learnt that how different businesses run. And another main objective that I want to achieve that how an organization consist with different departments and how different functions are done in different departments of an organization.

2.3 Departments that I worked during my internship

I did my internship at Bank Alfalah G-9 Markaz, for a total duration of eight weeks and the departments that I worked during this time are as follows:
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 Accounts Opening Operations Accounts Home Finance Credits Car Financing

About my Internship
I did my eight weeks internship at Bank Alfalah G-9 Markaz Branch and worked in account opening department, operations department, accounts department, home loans department, car finance department and credits department. Some of the work that I did in these departments included collecting cheques, filling account opening forms, activity checking and making a borrowers basic fact sheet. Although there were no such big problems found in the working of Bank Alfalah, there were some problems in training of the employees, incentive schemes and product innovation. Some of the recommendations include workshops for employees, job rotation, teams work to find innovative products and scholarship programs for employees.
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Lastly Bank Alfalah has seen a rapid growth in its activities by introducing a range of products and services and showing its presence in the country by opening new branches and in future should keep this momentum and always strive to become the best.

The bank Al-Falah limited

Bank Alfalah Limited was incorporated on June 21st, 1992 as a public limited company under the Companies Ordinance 1984. Its banking operations commenced from November 1st ,1997. The bank is engaged in commercial banking and related services as defined in the Banking companies ordinance, 1962. The Bank is currently operating through 195 branches in 74 cities, with the registered office at B.A.Building, I.I.Chundrigar, Karachi. Since its inception, as the new identity of H.C.E.B after the privatization in 1997, the management of the bank has implemented strategies and policies to carve a distinct position for the bank in the market place. Strengthened with the banking of the Abu Dhabi Group and driven by the strategic goals set out by its board of management, the Bank has invested in revolutionary technology to have an extensive range of products and services. This facilitates our commitment to a culture of innovation and seeks out synergies with clients and service providers to ensure uninterrupted services to its customers. We perceive the requirements of our customers and match them with quality products and service solutions. During the past five years, we have emerged as one of the foremost financial institution in the region endeavoring to meet the needs of tomorrow today.

Vision
To be the premier organization operating locally & internationality that provides the complete range of financial services to all segments under one roof.

Mission

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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.

3.2 Nature of the organization

Bank Alfalah is a financial institution operating locally & internationality that provides the complete range of financial services to all segments under one roof. Bank Alfalah Limited (Bank Alfalah) is a Pakistan based bank, engaged in banking and financial services. The bank through its subsidiaries provides retail, commercial banking and corporate finance products and services in the Asia Pacific, Pakistan and the Middle East. It provides services such as lending loans and accepting deposits, finance leasing, credit cards and money transfer services. It also offers advances to business, trade, industry and agriculture. The bank offers services through its network of 274 branches and 236 state of the art ATMs. It has Conventional Branches, Overseas Branches, Sales and Service Centers, ATM machines and Islamic Banking-Branches. Global Markets Directs Bank Alfalah Limited - Financial Analysis Review is an in-depth business, financial analysis of Bank Alfalah Limited. The report provides a comprehensive insight into the company, including business structure and operations, executive biographies and key competitors. The hallmark of the report is the detailed financial ratios of the company
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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.

3.2.1 Types of business activities Holder of public money

Collecting deposits from customers and giving them interest

Business loans
Short term loans to business firms Working capital loans In term construction financing Security dealer financing Retailer financing Assets based financing Syndicated loans Long term business loans Term business loans The revolving credit financing Long term project loans

Loans to support acquisition of the business funds

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 Consumer loans Personal loans Car financing Home financing Investments Government securities Stock exchange Pakistan investments bonds Shares Agent for import and export Safeguarding customers valuable

3.3 Business volume in terms of revenue, deposits, advances, investments

2004 2005 2006 2007 2008 14

OPERATIONAL RESULTS
Total income Operating Expenses Profit before income tax & provision Profit before Income Tax Profit after Taxation 7,140 2,679 2,026 1,654 1,092 14,515 4,344 2,966 2,563 1,702 24,416 5,918 3,264 2,566 1,763 31,822 8,289 6,906 4,536 3,130 36,292 10,623 3,831 1,795 1,301

BALANCE SHEET
Shareholders equity Total assets Advances - net of provision Investments - net provision Deposits and other accounts 4,369 154,835 88,931 35,503 129,715 6,738 248,314 118,864 57,416 222,345 10,573 275,686 149,999 56,502 239,509 13,767 328,895 171,199 88,492 273,174 14,609 348,991 192,671 75,973 300,733

OTHERS
Import EXPORT 78,472 71,847 116,210 71,847 119,937 70,844 184,305 79,090 190,289 93,406

RATIOS
Capital Adequacy Profit before Tax ratio (PBT/Gross mark up income) Gross spread ratio (net mark up income) Income/ Expense ratio Return on average Equity Return on average Assets Advances/ Deposits ratio Cash Dividend Stock Dividend Book value p share excluding revenue Basic Earning per share No. of Employees (other than outsourced) % % % Time % % % % Rs. Rs. Rs. No. 8.16 29.43 56.69 2.67 26.89 0.86 25 17.48 21.05 3.9 3,352 8.66 20.93 41.17 3.34 30.65 0.84 12 22.46 24.88 3.92 5,218 9.48 12.11 28.12 4.13 20.37 0.67 33.33 21.15 24.48 2.91 6,543 9.85 17.59 35.54 3.48 25.72 1.04 30 21.18 24.95 3.92 7,371 8.03 5.78 34.51 3.42 9.17 0.38 15% 23% 18027 21.32 1.63 7,584

3.3.1 Financial performance No company can remain in business if it cannot sustain and grow its profits and banks are no exemption. If Bank Alfalah wants to become a premier banking institution and to satisfy its customers, it itself needs to become a profitable
15

organization, that not only has growth in profits, increase its assets but also provide its shareholders with the maximum return so that they are also satisfied.

Oerational Result
Table 1: Profit Comparison for 2007 & 2008 Description 2007 Profit before provisions and taxes 6,906 Provisions (2,370) Profit before taxation 4,536 Taxation (1,406) Profit after taxations 3,130 Earning per share Rs. 3.92 Source: Bank Alfalah Annual Report 2008

2008 Rupees in000 3,831 (2,036) 1,795 (494) 1,301 Rs 1.63

Profit after taxation for the year 2008 is Rs 1,301,000, which is increased, and earning per share a ratio that is closely looked over by the shareholders of a company decreased from Rs. 3.92 to Rs. 1.63. The major reason for this decrease in this ratio is mainly the dencrease in profits before taxation, decrease in provisions and finally, the increase in share capital of Rs. 1 million from the past year.
Figure 1: Profit figures for the past five years (in million)
3500 3000 2500 2000 1500 1000 500 0 2004 2005 2006 2007 2008 Profits after taxation

Source: Bank Alfalah Annual Report 2008

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As shown in Figure 2, profits for Bank Alfalah has grown from 2004 to 2007, after which they declined, however they have again shown an upward trend in running year. Balance Sheet Results The total assets for 2008, amounted to Rs.348,991, (000), advances of the bank, which include the loan and other services that the bank receives interest on, had the greatest share of Rs. 192,671, (000), followed by investments made by the bank, for Rs. 75,973, (000). The total liabilities for the year 2006 amounted to Rs. 331,946,(000), of which deposits and other accounts amount to Rs. 300,733, (000). This is 91% of the total liabilities for Bank Alfalah.

Figure 2: Advances and Deposits for the year 2003-2008

Advances and Deposits for the Y ear 2003-2008 (figures in m illion)
350000 300000 250000

3.4 Number of Employees by giving designation advances 150000

100000 50000 0 2003 2004 2005 2006 Years 2007 2008 deposits

200000

17

Source: Bank Alfalah Annual Report 2008

The above figure again shows that fact that both advances and deposits have been increasing at a steady rate over the past six years, which not only shows excellent policies of the top management but also the immense confidence of the customers that not only deposit money but also take advances from the bank itself. The immense confidence of the customers and its shareholders has also seen a rise in the stock price of the companys share at the Karachi Stock Exchange. The stock price had rise for some period, after which it fell, but again it rose, which again shows the confidence of investors in the company.
Table 2: EPS for the period 2002-2008 200 Year 2 2003 2004 EPS (in Rs) 2.23 8.49 3.90

2005 3.92

2006 3.91

2007 3.92

2008 1.63

Source: Bank Alfalah Annual Report 2008

Ratio Analysis Some of the ratios calculated for Bank Alfalah are as follows: Income/Expense Ratio: The income to expense ratio is 3.42 in 2008, which decrease from 3.84 in 2007 and is thus very favorable as now Bank Alfalah has more income to pay off its expenses from. Advances/Deposits Ratio: This ratio was 64.07% in 2008, a rise of 2.60% from the previous year. This ratio shows that for every 100 deposits for Bank Alfalah, a liability, there are 64.07 advances, an asset for Bank Alfalah. As this
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ratio has increased, it shows that Bank Alfalah now as more capacity to pay off its total deposits from the advances it gives out. Return on Total Assets: This ratio measures the extent to which total assets of the bank were used to generate income available for common stockholders. This ratio was 0.38% in 2008, which was a decrease from 1.04% from the previous year and is mainly due to the fact there was a small increase in profits as compared to the total assets. Return on Total Equity: This ratio like the ROA previously calculated is a debt management ratio and is calculated by dividing the net income available for common stockholders by the common stockholders equity. This ratio was 9.17% in 2008, which decreased from 25.72% in 2007. The decrease in this ratio is mainly due to two reasons: firstly there was a small increase in the earnings available for common stockholders and secondly there was an increase in common stockholders equity in 2008.

3.4 Number of Employees

Figure 3: Total Number of Employees for the period 2002-2008

Total Number of Employees for the perid 2002-2008

8000 7000 6000 5000 4000 3000 2133 2000 1504 1000 0
20 02 20 03 20 04 20 05 20 06 20 07 20 08

7371 7584 6543 5218 3352 total number of employees

No of Employees

Years

19

Source: Bank Alfalah Annual Report 2008

3.5 Product Line

Banking Sector has a wide variety of products that cater to the financial need of the masses; some of the major products that a bank provides to its customers and is mostly used by the banks customers are as follows:

Checking Accounts

Car Financing Home Loans Credit Cards Funded and Unfunded Loans

3.5.1 Checking Accounts

There are the main types of checking accounting that banks provide: Basic Banking Account (BBA) Current Account Profit & Loss Account (Pls A/c) Royal profit account Kifayat account Mahana amdan account Basic Banking Account (BBA) These accounts have no minimum balance requirement and can be opened by just Rs. 10001. A customer with a BBA, does receives an ATM card but the account cannot be turned to an Online Account. The segment that this account
1

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is targeted is towards the salaried individuals that have just started their professional careers, students or any other individual that may want to open an account with a small amount of money. Current Account Current accounts are another type of account that banks offer, this account does not provide any profit on it and neither zakat is deducted on this account. This account can be turned into an Online Account and its customers also receive an ATM card. The major segments of this account are sole proprietors, partnerships, companies (both private& public) and any other individual that wants to open their account and not earn profit or pay zakat on their balances. Profit & Loss Account Profit and loss accounts are one of the basic accounts that give interest to its customers deposits. These accounts pay interest annually and zakat is also deducted on these accounts. ATM card are also provided to these accountholders. The main segment targeting these accountholders are people that want to save money which might include household etc. This account does not target companies however. Royal Profit Account Royal profit accounts are opened with a minimum balance requirement of Rs 50,000. The basic aim of this account is that the higher the balance the higher the return, as profit is credited on a monthly basis. The profit paid to account holders is as follows: Table 3: Profits paid on Royal Profit Account Amount From Rs.50,000 to 999,999

Profit pa. 2.50%

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From Rs.1,000,000 to 4,999,999 Rs.5,000,000 and above Source: Bank Alfalah I-8 Markaz

3.50% Negotiable

Kifayat Account Kifayat account is another saving account product that can be opened with a minimum balance requirement of Rs 10,000, with a maximum limit of Rs 1 million. Profit is calculated on a monthly basis, while it is credited on quarterly basis. Bank Alfalah pays 7% pa interest on Kifayat Account. Mahana Amdan Account Mahana Amdan account is Term Deposit Receipt (TDR) for three years that can be opened with a minimum balance requirement of Rs 100,000, with a maximum limit of Rs 15 million. Profits are paid at 10% pa, credited on a monthly basis. Other features of this account include free personal accident insurance and automatic renewal for another 3 years, after the expiry of original period. Alfalah Education Alfalah education is a one year TDR that can be purchased by people having school going childrens. A person can purchase a unit for Rs 100.000, with a maximum of 3 years. This TDR pays 7%, paid at maturity and gives an additional advantage of giving monthly school fee of the childrens if the breadwinner of the family dies.

3.5.2 Car financing

Car financing facility is a very popular facility with all bank customers as it facilitates them to pay for their car over a period of time (1-5 yrs). Today banks provide additional facilities of insurance and tracking devices in cars as well.
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The main segments of people to whom this service is targeted are salaried individuals, businessmen and other individuals with a high disposable income.

3.5.3 Home Loans

A home loan is a product that eases the way how a banks customers purchase their home. Home loans provide the facility to purchase a new home, construct a new home or renovate a current home. Home loans are a long term loan and the main segments of population targeted include high paid salaried individuals and businessmen that are below the age of 65 and some banks even provide home loans to Pakistanis living abroad.

3.5.4 Credit Cards

Credit Cards are todays one of the most selling product that banks offer. There are three major types of credit cards:
Table 4: Types of credit cards and their market segments Credit Card Market Segment2 Silver Salaried and self employed individuals starting their careers Gold Salaried individuals or self employed individuals with high income Platinum For exclusive customers of the bank with huge deposits or very high income

Funded Credit Line Facility Unfunded Credit Line Facility Funded Credit Line Facility There are three major products that come under the funded credit line facility: Current Finance
2

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 Karobar Finance Milkiat Finance Current Finance Current Finance is a short term facility mainly provided to companies. It provides the customers with the funds over a period of time, mainly one year. The main advantage of the current finance facility is that markup is only charged on the utilized part of the finance facility and is mainly used by companies for their working capital management. The bank to provide this facility keeps a security; mainly a mortgaged property and can provide 60% of its assessed value as funds. Karobar Finance Alfalah Karobar Finance is another short term facility that is only provided to individuals and sole proprietors. This facility also has one year validity with markup charged on the amount used. This facility again provides individuals to maintain their working capital management and is again given to individuals for a security. The conditions for current finance and karobar finance are same with one big difference, which is that in karobar finance, the individual has to clear all his balance in his account, once in a year. Milkiat Finance Alfalah Milkiat Finance is a long term facility that is provided to SMEs and there are four main types of facilities provided: Acquisition of rented commercial/industrial property Construction on an owned commercial/industrial plot Purchase of a commercial/industrial property Renovation of owned commercial property
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Some of the features of Milkiat finance are as follows: Tenure of 2-12 years except for renovation, which is for 2-4 years Mark up of (KIBOR+4%) Financing from Rs 0.5 million to Rs 20 million, renovation financing up to 3.5 million Eligibility age should be less than 65, with 3 years of existing business Procedure for Milkiat Finance All documents are gathered from the customer, and then they are sent to the CIB, which sends a CCIR to the bank. Other forms of verification also take place in this process. Later a valuation is done of the property to see how much financing can be provided. After the valuation process is complete, a CLP is made by the bank, which with other documents is sent for approval to the area office. When the area office approves the application, the customer is called into the bank to give the security papers to the bank and also gets all legal documents are signed and the money is transferred to the bank. Unfunded Credit Line Facility There are two types of unfunded credit line facility, which are as follows: Letter of Credit (LC) Letter of Guarantee (LG) Letter of Credits A letter of credit is a 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
25

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: Usance Sight Usance Usance LC is a form of LC, whereby the bank engages to honor the beneficiary usance draft on an acceptance that the items are in accordance with the conditions. Payment is made against acceptance. Sight LC Theses are letter of credit where the bank engages to honor the beneficiarys sight draft upon presentation provided that the documents are in accordance with the conditions of the L/C. This is a more safe form of letter of credit as payment is made against the documents. Letter of Guarantees Letter of guarantees is a guarantee that the bank gives to an organization on behalf of the bank. Letter of Guarantees are mainly used when a tender for a specific job is filled by a customer. There are three main types of LGs: Bid Bond: Bid Bond are filled at the time of filling out the tender and states that if the company is given the tender, it will start working on it and will not walk away Performance Bonds: Performance Bonds are issued to the beneficiary, to guarantee him that the applicant of the tender will perform the contract under a specific period of time. Performance bonds are issued after the tender is approved of the applicant.

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Mobilization against LG (MALG): This is a guarantee that the bank gives when the beneficiary (the firm that issued the tender) that pays an advance of tender to the applicant (the firm that gets the tender), that he will return that advance amount.

4. 1 Overall structure of the organization

Board of Directors:
H.E. Sheikh Hamdan Bin Mubarak Al Nahayan Mr. Mohammad Saleem Akhtar Mr. Abdulla Nasser Hawalileel Al-Mansoori Mr. Abdulla Khalil Al Mutawa Mr. Ikram Ul-Majeed Sehgal Mr. Khalid Mana Saeed Al Otaiba Mr. Nadeem Iqbal Sheikh

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Board of Directors

President CEO

Vice president

Vice President Financing

Vice President Marketing

Treasure
Capital budgeting Cash management Commercial banking & investment banking relationship Credit management Dividend disbursement Financial analysis & planning Investors relations Pensions management Insurance risk management Tax analysis and planning

Controller
Cost accounting Cost management Data processing General ledger Government reporting Internal control Preparing financial statements Preparing budgets Preparing fore costs

Now 12 years after being incorporated, Bank Alfalah has emerged as one of the foremost financial institution in the region, endeavoring to meet the needs of tomorrow today, operating through 282 branches in more then 75 cities nation wide, with total employees exceeding 6000. Bank Alfalah also expanded its network internationally by opening branches in Afghanistan, Bangladesh and Bahrain to further improve its image as a premier banking institution.
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4.2 Structure of the branch

4.3

Structure department

&

functions

of

the

Accounts

Following is the structure and functions of the Accounts department at Bank Alfalah G-9 Markaz.

Accounts Opening department Credits department Home Finance department Car Financing department

Clearing department

4.3.1 Accounts Opening Department

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Accounts opening department is one of the departments that come under the retail/general banking facilities provided by Bank Alfalah G-9 Markaz. Atif shahzad is account opening officer in Bank Alfalah G-9 Markaz.

4.3.2 Clearing department

The clearing department is responsible for the clearing of all cheques that the bank receives daily and the different types of clearing cheques that come in the bank are: Inward Clearing Outward Clearing Online Clearing Outward Bills for Collection Farhan Mehdi is a clearing officer in Bank Alfalah officer in G-9 Markaz.

4.3.3 Credit department

The credit departments of Bank Alfalah work with both SMEs and corporate clients. There are two major categories of credit line facilities that Bank Alfalah provide to its customers Funded Credit Line Facility Unfunded Credit Line Facility Raza Hussain is a credit officer in Bank Alfalah officer in G-9 Markaz.

4.3.4 Home Finance department

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Bank Alfalah has introduced home loans as part of their consumer banking and some of the products that come under home finance are: Buy your Home Build your Home Renovate your Home Start it Together Easy Transfer Zamin Ali Sherazi is a Home finance dealing officer in Bank Alfalah officer in G-9 Markaz.

4.3.4 Car Finance department

Car financing has become one of the most selling financial products of almost all banks. People prefer getting their cars financed rather than paying upfront because it is convenient and lessens the burden of paying a huge sum of money upfront. Some of the features of Bank Alfalah Car Financing are: Tenure of 1-5 years Minimum down payment- starting from 10% of car value 5 % extra at time of pre-mature payment. Insurance facility from three different insurance companies Tracking devices with all Suzuki Mehran and all Toyota Models Fixed mark up rates Co borrowers facility Zamin Ali Sherazi is a Car finance dealing officer in Bank Alfalah officer in G9 Markaz.
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4.4 Finance and Accounting Operations

Accounts department is a backend department at Bank Alfalah G-9 Markaz that performs the following Accounting Operation: Reports It generates reports like Statement of Account Activity (a report on the activity of all accounts at Bank Alfalah G-9 Markaz), Statement of Affairs (a report on the assets and liabilities of Bank Alfalah G-9 Markaz), Statement of Foreign Exchange (a report on the foreign exchange currencies at the bank) and Statement of Profit & Loss (a report on the income and expenditures of Bank Alfalah G-9 Markaz). These reports can be generated at daily, weekly, monthly, quarterly or yearly basis as required by the bank. Income and Expense The department also needs to calculate the revenues and expenses, control expenditure and forecast profits every month. Budget Formulation of yearly budgets & targets in consultation with the branch manager is also done by the accounts department. Activity Checking Daily activity checking and monitoring is done by the accounts department of the whole bank Storage of Records
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Accounts Department also has the duty to store vouchers and system generated reports. Payments The accounts department is responsible to pay vendors on behalf of the bank with authorization from the branch manager. It also has to amortize large payments and calculate depreciation of branch assets.

4.5 The role of Financial managers in establishing relationship

This is a senior role and the Relationship Manager will manage a portfolio of complex borrowing corporate clients as well as being the primary point of contact for the banks relationships with the Hedge Fund Sector. The role will report to the Head of Corporate Banking. The ideal candidate will maximize opportunities to strengthen and leverage existing relationships as well as continue to maintain and ensure high levels of customer satisfaction and retention all the while generating new recommendations. The successful candidate will be experienced in developing growth plans and expanding the divisions borrowing and non-borrowing relationships within the hedge fund sector. Strong working knowledge of commercial banking products, loan agreements, security and other credit requirements, particularly with respect to the mutual and hedge fund sectors is preferred. Essential qualifications include at least 10 years banking experience with at least 5 years in a direct commercial customer contact role: in depth experience in structuring financing transactions with the mutual and hedge fund sectors;
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experience in structuring financing transactions with the property sector will be considered an asset. Financial manger in establishing relationship always give priority of his organization these benefits: Maximization of profit. Earning per share maximization. Increase of sale Welfare Reduce in cost Maximization of shareholders wealth.

Use of Electronic data in decision-making

In todays contemporary business, critical and timely decision making is a must and important too. Todays bank use sophisticated softwares that not only help in operations but also improves decision making by providing different reports, which can produced at different periods of time, that can help employees at every level of the banks administration.

4.6.1 Technical Methods that Affect the Industry

The banking industry of Pakistan is at the forefront of modernizing its daily operations by introducing the latest technologies in its operations. Some of the technical methods that are used and affect the banking industry are as follows: Advanced technological products and services Automation of operational tasks Decision making tools
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Advanced technological products and services Automatic Teller Machines (ATM) and ATM cards have been the biggest innovations that have simply changed the way people today are now making their personal transaction. With ATM cards, people can take out money from their accounts at any time, from any bank that they want to, at their convenience. ATM cardholders can take money out of their accounts, from any 1 link network ATM, the largest ATM network of the country. Other ATM networks include Mnet and Cirrus. Today all banks are members of 1 link, while most of them are members of Mnet and Cirus. Internet Banking is another major technological product introduced by different banks of Pakistan. With the help of internet banking, customers with the convenience of their own personal computers can transfer money from their accounts, view their balances and a lot more. SMS and Phone Banking is another major advancement in the products and services introduced by banks. Telephone banking can be done 24/7, with the help of banking assistants, while SMS banking can be done at the customers convenience. Automation of operational tasks Technical advancements have also impacted the daily operations of banks in Pakistan. Online transfer of money between branches has increased the efficiency of exchange of money between different account holders of the same bank.
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Simple tasks such as balance inquiry and bank statements have become as easy as a click of a button with highly sophisticated information systems. All banks today have their own information systems that they can use in almost all departments like clearing, account opening, car leasing and remittances.

4.6.2 Innovation
Innovation is a must in modern times, as it will help banks to compete in todays highly technologically advanced industry. Some of the innovations that the banking industry is looking forward are: More advanced means of connectivity between branches through better and advanced software and hardware to maintain connections with banks in remote areas and during natural calamities in Pakistan. These might include better connection through WiFi or WiMax, both new technologies. More advanced information systems in banks that are more secured than before to eliminate any chances of fraud and which are even more user friendly to help employees to use them not only to make critical decisions but also satisfy customer need in a more timely manner. Advancements in online transfer from inter branch to an even more helpful inter bank transfers.

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 Automation of simple operations task that will not only improve efficiency but also reduce costs like stationery and courier services, like automation of check books etc.

All banks in Pakistan starting internet, mobile and telephone banking in its operations.

No company can remain in business if it cannot sustain and grow its profits and banks are no exemption. If Bank Alfalah wants to become a premier banking institution and to satisfy its customers, it itself needs to become a profitable organization, that not only has growth in profits, increase its assets but also provide its shareholders with the maximum return so that they are also satisfied.

5.1 Five year balance sheet

BALANCE SHEET
2004 2008 (Rupees in 000) 2005 2006 2007

ASSETS
19,708,518 3,183,957 35,503,196 83,931,400 4,280,504 3,226,959 24,789,070 9,713,369 27,050,493 57,416,255 118,864,010 6,620,067 3,851,529 27,859,360 12,731,952 12,456,653 56,502,210 149,999,325 10,502,990 5,633,051 29,436,378 18,380,738 3,452,059 8,8491,564 171,198,992 11,922,324 6,013,097 32,687,335 21,581,043 3,315,500 75,9732,38 192,671,169 13,773,293 8,989,186

Cash & balances with treasury banks Balances with other banks Lending to financial institutions Investments Advances Fixed assets Deferred tax assets

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Other assets

154,834,534

248,313,793

275,685,541

328,895,152

348,990,764

LIABILITIES
2,233,671 12,723,830 129,714,891 1,899,480 3,733,124 5,844,389 222,345,067 3,223,355 484,066 5,219,666 3,091,135 8,394,130 239,509,391 3,222,106 1,921,338 7,305,496 4,138,243 21,230,697 273,173,841 3,220,858 1,379,809 9,531,860 3,452,031 13,690,222 300,732,858 2,571,169 208,465 11,291,280

275,834 2,275,344

Bills Payable Borrowings Deposits & other accounts Sub- Ordinated loans Lia against asset subj to finance lease Deferred tax liabilities Other liabilities

149,655,669

240,849,667 7,464,126

263,443,596 12,241,945

312,675,308 16,219,844

331,946,025 17,044,739

NET ASSETS PRESENTED BY

5,261,484

2,500,000 1,008,772 860,300 6,387,372 4,369,072

3,000,300 1,851,218 1,886,845 7,464,124 6,738,063 Share capital Reserve

5,000,000 2,749,533 2,823,072 10,572,605 1,669,340

6,500,000 2,414,833 4,851,840 13,766,673 2,453,171

7,995,000 3,166,056 3,447,467 14,608,52 2,436,216

Un appropriated profit Surplus on revaluation of assets-net of Tax 12241945 7,464,126 12,241,945 16,219,844 17,044,739

CONTINGENCIES AND COMMITMENT

The annexed notes 1 to 44 and Annexures I and ll from an integral part of these financial statements

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5.2 Five year profit and loss statement

PROFIT AND LOSS STATEMENT
2005 2007 (Rupees in 000)
Mark-up / return / interest earned Mark-up / return / interest expensed Net mark-up / return / interest income Provision against loans and advances Provision for diminution in the value of investments Bad debts written off directly Net mark-up /interest income after provisions Non mark-up / interest income Fee, commission and brokerage income Dividend income Income from dealing in foreign currencies Gain on sale of securites Unrealized loss on revaluation of investments Classified as held for trading Other income Total non-markup / interest income Non mark-up / interest expense Administrative expenses Provision against off-balance sheet obligations Other charges Total non-markup / interest expenses Extra ordinary / unusual items Profit before taxation Taxation - Current - Prior - Deferred Profit after taxation Unappropriated profit brought forward Transferred from surplus on revaluation of fixed assets-net of tax Profit available for appropriation 1,158,747 52,014 290,091 239,551 23,163 504,967 2,268,533 6,907,542 4,313,023 10,125 21,104 4,344,252 2,563,290 2,563,290 592,635 1,037 267,524 861,196 1,702,094 860,300 24,870 2,587,264 1,804,998 37,393 386,997 180,751 (27,599) 842,099 3,224,639 8,483,996 5,874,745 43,306 5,918,051 2,565,945 2,565,945 476,226 (100,874) 427,902 803,254 1,762,691 1,886,845 26,074 3,675,610 2,429,599 64,722 474,510 2,059,793 (21,530) 1,031,372 6,038,466 12,824,663 8,272,587 6,959 9,565 8,289,111 4,535,552 4,535,552 1,726,810 (321,487) 1,405,323 3,130,229 2,823,072 24,585 5,977,886 2,539,321 300,943 914,845 424,220 (181,571) 1,247,669 5,245,427 12,417,459 10,471,399 28,582 122,758 10,622,739 1,794,720 1,794,720 1,730,051 (221,797) (1,014,835) 493,419 1,301,301 4,851,840 24,586 6,177,727 12,246,811 7,204,992 5,041,819 (402,298) (512) (402,810) 4,639,009 21,191,470 15,232,886 5,958,584 (697,690) (1,537) (699,227) 5,259,357 25,783,871 16,620,963 9,162,908 2,370,867 5,844 2,376,711 6,786,197 31,046,583 20,331,194 10,715,389 2,035,997 1,479,062 28,298 3,543,357 7,172,032

2006 2008

(Rupees) 3.92 3.86 3.92

1.63

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Basic/ Diluted earnings per share

The annexed notes 1 to 44 and Annexures I an ll from an integral part of these financial statements.

5.3 Ratios Analysis

2004 RATIOS
Capital Adequacy Profit before Tax ratio (PBT/Gross mark up income) Gross spread ratio (net mark up income) Income/ Expense ratio Return on average Equity Return on average Assets Advances/ Deposits ratio Cash Dividend Stock Dividend Book value p share excluding revenue Basic Earning per share % % % Time % % % % Rs. Rs. Rs. 8.16 29.43 56.69 2.67 26.89 0.86 25 17.48 21.05 3.9 8.66 20.93 41.17 3.34 30.65 0.84 12 22.46 24.88 3.92 9.48 12.11 28.12 4.13 20.37 0.67 33.33 21.15 24.48 2.91 9.85 17.59 35.54 3.48 25.72 1.04 30 21.18 24.95 3.92 8.03 5.78 34.51 3.42 9.17 0.38 15% 23% 18027 21.32 1.63

2005

2006

2007

2008

Some of the ratios calculated for Bank Alfalah are as follows: Income/Expense Ratio: The income to expense ratio is 3.42 in 2008, which decrease from 3.84 in 2007 and is thus very favorable as now Bank Alfalah has more income to pay off its expenses from. Advances/Deposits Ratio: This ratio was 64.07% in 2008, a rise of 2.60% from the previous year. This ratio shows that for every 100 deposits for Bank Alfalah, a liability, there are 64.07 advances, an asset for Bank Alfalah. As this
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ratio has increased, it shows that Bank Alfalah now as more capacity to pay off its total deposits from the advances it gives out. Return on Total Equity: This ratio like the ROA previously calculated is a debt management ratio and is calculated by dividing the net income available for common stockholders by the common stockholders equity.
Description Profit before provisions and taxes Provisions Profit before taxation Taxation Profit after taxations Earning per share 2004
2,026

2005

2006 2007 Rupees in000 2,965,58 3,263,63 6,906 8 5 (402,298) (697,960) (2,370) 2,563,29 2,565,94 4,536 0 5 (861,196) (803,245) (1,406) 1,702,09 1,762,69 3,130 4 Rs. 3.92 1 Rs 3.86 Rs. 3.92

2008 3,831 (2,036) 1,795 (494) 1,301 Rs 1.63

(372)
1,654

562 1092 Rs 3.90

Profit after taxation for the year 2008 is Rs 1,301,000, which is increased, and earning per share a ratio that is closely looked over by the shareholders of a company decreased from Rs. 3.92 to Rs. 1.63. The major reason for this decrease in this ratio is mainly the dencrease in profits before taxation, decrease in provisions and finally, the increase in share capital of Rs. 1 million from the past year.

5.4 Competitor Analysis

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.
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2006

2007
( Rupees in 000 )

2008

CASH AND BALAMCES WITH TREASURY BANKS In Hand Local currency (including in transit) Foreign currency ( including in transit) With state bank of Pakistan in Local currency current account Foreign currency current account Foreign currency deposit account With other central banks in Foreign currency current account Foreign currency deposit account With national bank of Pakistan in Local currency current account National prize bond

3387226 1469879 16077606 393560 2318183 1515185 986359 1151358 14034

4797473 1837649 16566799 1036674 929357 1413622 1509628 1323806 21370

6335731 2999128 11392141 1399973 3605236 2108534 2240700

2590762 15130

27,859,360

29,436,378

32,687,335

The local currency current account is maintained with the state bank of Pakistan (SBP) as per the requirements of section 36 of the state bank of Pakistan Act, 1956. this section requires banking companies to maintain a local currency cash reserve in the current account opened with the SBP at a sum not less than such percentage of its time and demand liabilities in Pakistan as may be prescribed by SBP.

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As per BSD circular No. 9 dated 03 December, 2007, cash reserve of 5% is required to be maintained with State Bank of Pakistan on deposits held under the new foreign currency account scheme (FE-25 deposits).

However Bank Alfalah feels that its major competitors are as follows: United Bank Limited (UBL) MCB Bank Citibank 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. United Bank Limited

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UBL was established in 1959, to provide banking facilities to the nation, after its nationalization in 1971, the bank became an inefficient enterprise, however after its privatization in 2000; the whole face of UBL has been changed. Today UBL stands on a solid network of more than 1000 branches nationwide and 15 overseas branches and with an experience of 46 years its main goal is to become the leading bank of Pakistan. To achieve its goal, UBL has introduced innovative products in the banking sector to facilitate the general public. It was one of the very first banks to introduce internet and SMS banking to its customers. It has divided its banking into three divisions, each having customized products to satisfy the needs of that particular division: Consumer: for individual customers Commercial: for small and medium enterprises Corporate: for large national and multinational companies These strategies have helped UBL to raise its image in the banking sector. Its long term credit rating is AA+3. MCB Bank In 1974, MCB was nationalized along with all other private sector banks. This led to deterioration in the quality of the Banks loan portfolio and service quality. Eventually, MCB was privatized in 1991. The vision of MCB isChallenging and Changing the Way you Bank.

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The main strategies of the bank have concentrated on growth through improving service quality, investment in technology and people, utilizing its extensive branch network, developing a large and stable deposit base and managing its non-performing loans via improved risk management processes. In 2006, MCB Bank was awarded the Euromoney Award for the best bank in Pakistan, which shows its commitment of changing the way you bank. Askari Bank Askari Commercial Bank was established in 1992, with the vision of maintaining excellent standards of banking quality and service, so as to serve its customers better. With time Askari Bank has also changed its identity, changing its name to a shorter Askari Bank, a new logo and a new slogan Ask Us. Askari Bank has a wide variety of product and services that cater to need of all type of customers. It also developed a wide variety of products for the Ksaans or farmers of Pakistan, a segment of Pakistanis neglected by the baking sector of Pakistan. Askari bank was also the first bank in Pakistan to introduce ATM machines on a third party basis. Askari Banks long term rating of AA+ by Pakistan Credit Rating Agency Limited (PACRA) also shows its commitment of developing excellent standard of products and services for its customers. Citi Bank Citi Bank was established in Pakistan in 1990 and since then has been using its international roots and knowledge to make a name in the Pakistani banking sector. Its main vision is to provide right financial solutions - every time, all the time and to fulfill their vision Citi Bank has used its ability to identify market
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needs and develop products which are unique in concept and fulfill customer requirements. Every customer is served by a versatile team of relationship managers who ensure in-depth knowledge of trends and opportunities while synchronizing their financial activities. Some of the innovative products introduced by Citi Bank or the very first time in the Pakistani Banking sector are as follows:

The main vision of Bank Alfalah is to become a premier banking institution in not only Pakistan but also abroad. In achieving this mission, Bank Alfalah has been successful by increasing its revenues, deposit base and branches in Pakistan. Although there are no major problems at Bank Alfalah, the problem observe as follow:

6.1 Technological Advancements

Bank Alfalah has equipped its branches with all major IT tools being used in the industry like ATMs, fax machines, photocopiers, printers, latest computers and a 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.

6.2 Training & Development

There are effective training centers of Bank Alfalah at Karachi and Lahore. For Bank Alfalah G-9 Markaz, it employees get to train at the Lahore center. The
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problem with training and development is that it is only available for the officers of the bank and not for the lower staff members.

6.3 Job Advancements

There is no job advancements procedure for lower staff members or junior executives that have joined recently at Bank Alfalah. The main problem that was observed was that the lower staff should be trained about the operations of the bank and also the junior executives should be given promotions by defining the criterias like performance etc.

6.4 Lack of Employees in some Departments

Although Bank Alfalah is a very good employer of talented professionals at different branches, however, it was observed that there were some departments in the bank that lacked the number of professionals in it that resulted in efficiencies in that department.

6.5 New Products Introduction

Bank Alfalah has a wide variety of financial products to cater to the needs of its competitors; nonetheless the main problem seen is that it is not introducing innovative products like other banks in Pakistan, for example Standard Chartered Bank introduced a self depositing machine, a machine that can be used by consumers to deposit money at any time of the day.

6.6 Priority Banking

Bank Alfalah does not have any priority banking department that can cater to the need to high end customer. At Bank Alfalah G-9 Markaz, there were no

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large companys accounts mainly because there was no department to develop relationships with large customers.

6.7 Amenities at Branch

Providing amenities like a separate room for prayers because currently the employees pray in the conference room of the branch. Also separate rooms should be made for the account department for sorting of vouchers as it is also done in the conference room.

6.8 Incentive Schemes

There are no incentive schemes for employees of Bank Alfalah like scholarship schemes for employees that want to pursue higher education. Bank Alfalah although gives a number of incentives to its employees, like personal loans at nominal markup but they are only provided to employees that are in higher ranks. Education fees are also returned by Bank Alfalah to its employees, after the have finished their studies

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The economy of the country is booming and with the investment favorable policies and their smooth implementation, the role of banks in todays economy have become an important one. The banking industry is also reaping the fruits of this economic boom by growing rapidly over the past few years. There are a number of mergers happening in the economy with foreign investments coming into the banking sector. It has been ten years since the establishment of Bank Alfalah, and since its establishment it has aimed to become the leading bank of Pakistan by that provides outstanding services to its customers. The bank has seen phenomenal growth in the past few years by opening more branches in the country, increasing the deposit base, while also increasing the assets and profits of the bank. The services that Bank Alfalah provides have a great market penetration not only because of their features but also the profit and markup rates that they charge. Also the products that Bank Alfalah provides cater to sector of the economy. The top management of the bank is always developing strategies that cope with unexpected challenges to deliver products and services more efficiently Furthermore, as the bank is growing, the number of employees at Bank Alfalah are increasing, which shows that Bank Alfalah is being considered as a an employer, that provides its employees with a challenging environment to work in, where they can harness their full potential and shows confidence as an employer by the employees of the bank.
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Lastly to become the leading bank of Pakistan, Bank Alfalah has to benchmark its services to its major competitors in the industry or the market leader in the industry and provide a continuous mean of improvement in its existing products and services, while introducing new ones to the industry. In the last section, I would like to give some recommendations and is hoped that if they are implemented will bring benefits to Bank Alfalah.

Some of the recommendations that I would recommend to some of the problems discussed in the above section, that might increase the efficiency of both the operations and employees of Bank Alfalah are as follows

8.1 Technological Advancements

Bank Alfalah should develop a modern connectivity architecture to effectively maintain an online connection of the branch with other branches and also the ATM link, which may include using modern technologies like fiber cables, routers etc. Also backup links should also be developed, Also a proper IT department should be established in all branches, with professional having the knowledge to maintain a secured connection with other banks. Also scheduled backups of data should be done with in the bank.

8.2 Workshops and Counseling

Work shop programs should be conducted in every city, rather than just two centers, for all Bank Alfalah employees. These workshops should relate to all aspects of banking and may also be conducted with other banks as a joint program.
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Also as parts of the human resource training, counseling programs should be started for junior executives or new entrants into the bank, introducing them to their prospects in this industry. The lower staff employed at Bank Alfalah should also be given a chance to succeed in life by training them in different simple jobs at the bank, which my include sorting of cheques, phone banking etc.

8.3 Incentives
Incentive schemes should be developed for the employees that can help motivate them, which might include: Personal loans and car financing facilities for all ranks of employees. Scholarship programs for all employees. Introducing employee awards at branch and regional levels. Job rotation programs to enhance the skills of employees.

8.4 Priority Banking and Business Development Department

There is no priority banking department at Bank Alfalah, like that of other bank. A priority banking department should be developed so as to give even more exclusive and customized services to high end customers with large deposit accounts. Also Business Development Department should be developed in all branches, so that they can actively find prospect customers to take up products from Bank Alfalah.

8.5 Innovative Products

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New and innovative products should be introduced by Bank Alfalah, like other bank such as Citibank and Standard Chartered Bank develops for their customer. For this purpose, special teams should be developed that include professional from all departments of the banks to come with ideas. This process will increase the number of ideas generated and even produce innovative products for the bank that might give them the edge.

8.6 Placements of Employees

There are some departments in the bank that do not have enough employees, while some have more than needed. All this creates inefficiencies and so the operations manager should look at the department of the branch and see where inefficiencies lie, in consultation of with the heads of the departments and hire individuals where there are less employees or rotate employees from other departments.

8.7 Amenities in Branch

There should be a prayer room developed in all branches as many employees want to pray, but do not have the proper place to do it. Also work like sorting, which takes up a lot of space should be done in a separate place and amenities like television and internet connection should be placed in the common room, so as to give employees a relaxing environment when they have a break.

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Web Resources Bank Alfalah (www.bankalfalah.com) The Daily Times Newspaper (www.dailytimes.com.pk) Wikipedia (www.wikipedia.com)

RBS Pakistan (www.abnamro.com.pk)

United Bank Limited (www.ubl.com.pk) State Bank of Pakistan (www.sbp.org.pk) Askari Bank (www.askaribank.com.pk) MCB Bank (www.mcb.com.pk) Citibank (www.citibank.com/pakistan)
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Reports Annual Report Bank Alfalah 2008 Annual Report Bank Alfalah 2007

Banking Statistics of Pakistan 2008

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