Islamic Banking Pakistan Limited Formerly Emirates global Islamic bank limited

ACKNOWLEDGMENT

All praises and thanks to Almighty Allah. The Lord and Creator of this universe by whose power and glory all good things are accomplished. He is also the most merciful, who best owed on me the potential, ability and an opportunity to work with Islamic Bank. I would like to present a token of thanks for the staff members of alBaraka Islamic Bank Pakistan Limited 12-Kaswar Gardazi Road Branch, Multan, who were cooperative to me in the completion of this report and provide me their complete guidance. As banks are very much sensitive about their secrecy, even then after taking an understanding, they let me handle their delicate operations.

I'm also really grateful to Mr. Bari Mahfouz(area manager of bank) who really help me in each and every step of learning. Without his kind co-operation it will difficult to learn smoothly and effectively. In clarification of my concepts I specifically thankful to Miss. Tahira Iqbal(Account opening officer), Harron Malik(Remittance Officer), Hameed(Teller), Miss Sobia(Relationship manager). Whatever I learnt from them will definitely help me in my professional life ahead. Thank you so much for being so co-operative and so helpful every time. In the end, I am thankful to all my teachers and have a lot of prayers for them who give me the knowledge and make me able to complete my masters degree. Here I have special thanks for Miss. Faiza whose supervision guided me to complete my internship.

DEDICATION

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

Executive Summary
The evolution of AlBaraka Islamic bank Pakistan limited signifies a movement from concept to reality; a reality to bring about a change in the banking industries of Pakistan; offering an alternative way of banking; providing people an opportunity to practice beliefs in their financial matters. Following privatization, Bank AlBaraka emerged as new identity of Emirates and Albarka Bank with a revived purpose and commitment. Charged with the strength of Bahrain consortium the bank has already made significant contributions in building and strengthening both corporate and retail banking sector in Pakistan. At present the bank has expanded its operations across Pakistan in 74 cities with 89 operational branches. All are Islamic Banking branches. It is pertinent to note that all of its branches commenced their operations in Real Time Online Mode. Today Bank AlBaraka is the fifth largest Banking operation in Pakistan. Since its inception, it has registered the fastest growth rate ever witnessed by any Banking operation in Pakistan.

AlBaraka bank continues to grow in a robust manner amidst considerable volatility in the banking industry. The bank is striving to prosper in terms of financial returns and the value it continues to provide its shareholders especially when tighter spreads are exercised and margin are compressed due to high interest rates as a tool to curb inflationary pressures. The most valuable asset of any financial institution is its human resource. The training and development centre remains at the helm of imparting training and related skills, not to only fresh recruits but also to existing employees. Bank AlBaraka has in place the state-of-the-art Training and Development Center both in Lahore and Karachi for equipping the personnel of AlBaraka bank with tools that help

carve a brighter future. Its philosophy in this regard is that training is indispensable in not only enhancing organizational effectiveness but also individual job satisfaction.
Bank AlBaraka has lined up a number of innovative products. These include AlBaraka Debit cards, AlBaraka Car Ijarah, Housing Musharakah, AlBaraka, AlBaraka Agri Financing, AlBaraka Phone banking and online baking. Being an active player in banking sector in Pakistan, they are confident that with the commitment of their team they will be able to gain the reputation of the fastest paced financial institution. To make their banking solutions become accessible to more and more people, they have embarked upon a rapid expansion program, aiming to provide a networking that makes the services available to any of their customers in all the major urban centers of Pakistan- with a view to go international in the near future. With their key indicators of progress already soaring to new heights, the bank is committed to dedicate all its energies, resources and time to bring higher value and satisfaction to their customers, employees and shareholders. The graph of bank is going up and up every year. The ratio of profit is increasing at good percentage. The bank is serving the people at high level of standard by going according to the wishes of the customers.

Preface

Internship was my first step in practical life, through which I learned a lot and it has aided me in being well prepared with valuable experiences that would help me once I entered the professional life after the completion of my studies. During the month of 10th March 23rd April 2011, I worked in AlBaraka Islamic bank Pakistan limited Multan Pakistan. I spend two weeks in each department under hardworking employees of bank. It was a great experience for me and it helped me in realizing where my potential lies. What I learned at Bank AlBaraka Pakistan over the weeks was how to maintain the client profile, account opening, how to make pay orders, receiving of cheques, issue of cheques, how to deal

customers, how to maintain customer files, handling cash, how credit operations worked under Islamic banking. This internship has also prepared me for my future career in Financing and management, so this internship has helped me a great deal. The experience has taught me responsibility, teamwork and I learned a lot regarding the team work. I got to see what practical life is. This internship overall has been a great experience. Last part of the report consists of some references and source from where I get information to complete my report. I think AlBaraka is overall updated due to which I didnt give any kind of suggestion. Overall I found that AlBaraka is full updated and its overall departments including my department performance is very well which in short term dont need any kind of improvement. Finally I want to conclude that AlBaraka is a place where someone dreams comes true using Islamic modes, and I hope that my overall internship work & experience would be helpful for me in the near future.

Table of Contents

Introduction6 History7
Center of management and development.9

Industry Matrix..9 CMD Profile10 Products and Services.11

CMD Team...14 Organizational Structure.15 Major Department.17 Our client..17 Learning and internship experience............................................................................18 Recommendations.19 Bibliography.20

Introduction
With a vision for unrivalled services, dedication to Islamic principles of banking, increasing network points, and innovative product line, Al Baraka Bank (Pakistan) Limited is committed to the Banking Industry in Pakistan. Al Baraka Bank (Pakistan) Limited (ABPL) is the result of a merger between Al Baraka Islamic Bank Pakistan (AIBP), the branch operations of Al Baraka Islamic Bank (AIB) Bahrain, a subsidiary of Al Baraka Banking Group (ABG) Bahrain, and Emirates Global Islamic Bank (Pakistan). The merged entity commenced operations on November 1st 2010. The merger, a first in the Islamic Banking sector in Pakistan, positions ABPL to play an important role in further growing an industry which has witnessed tremendous growth over the last 5 years. With assets in excess of Rs. 50 billion; a workforce of 1400 professionals and a network of 89 branches in 36 cities and towns pan Pakistan, Al Baraka Bank (Pakistan) Limited is devoted in providing our customers with a range of Shariah compliant and highly competitive products to suit their banking needs. Faced with growing challenges in this rapidly developing market, ABPL strongly relies on its ability to be an effective and efficient market player through renewed focus on superior customer service, development of Islamic alternatives to conventional financing facilities, and strict adherence to Shariah rulings and principles. Al Baraka Bank (Pakistan) Limited, offers a wide array of Islamic financing products such as Murabaha, Ijarah, Musharakah and Islamic Export Refinance etc., catering to a diverse crosssection of the economy including the Corporate, SME and Consumer sectors. Moreover, various Shariah compliant deposit schemes are also available for customers to invest their funds in, along with a variety of other ancillary services such as online branch banking, ATM/debit card, SMS banking, and electronic statement of accounts, safe deposit lockers and utility bill payments. The Pakistan Credit Rating Agency (PACRA) has assigned long-term and short-term rating entity A, and A2 respectively. These ratings denote a lower expectation of credit risk emanating from a strong capacity for timely payments of financial commitments. The ratings reflect a strong 8

association with the Sponsor group Al Baraka Banking Group that projects a unified corporate identityOne VisionOne IdentityOne Group. ABPL is a subsidiary of Al Baraka Banking Group (ABG), a Bahrain Joint Stock Company, listed on Bahrain and NASDAQ Dubai stock exchanges. It is a leading International Islamic bank with Standard & Poors long and short-term credit ratings of BBB- and A-3 respectively and offers retail, corporate and investment banking, and treasury services strictly in accordance with the principles of Islamic Shariah. The authorized capital of ABG is US$1.5 billion; asset base of US$15billion and total equity of US$ 1.8 billion. The group has Banking units in 11 countries and representative office in 2 countries spanning from Europe to MENA and Asia. Presently the focus is to expand into Malaysia, Indonesia and France. The total number of branches of the Al Baraka Banking Group, including Pakistan, is over 300 branches and growing. It is a part of our commitment, to put our customers values foremost, hence providing them with a banking solution that is in line with their beliefs.

History:
Al Baraka Bank (Pakistan) Limited has the honor of being the pioneer of Islamic banking in Pakistan and has been operating in the country as branches of Al Baraka Islamic Bank Bahrain since 1991. Over the years, the bank has successfully developed and maintained its identity as one of the leading providers of a host of banking products and services in strict compliance with Shariah principles. Currently operating with 29 branches in 17 major cities of the country, Al Baraka Bank (Pakistan) Limited offers a wide array of Islamic financing products such as Murabaha, Ijarah, Musharakah and Islamic Export Refinance, etc., catering to a diverse cross-section of the economy, including the Corporate, SME and Consumer sectors. Moreover, various Shariah compliant deposit schemes are available for customers to invest their funds in, along with a variety of other ancillary services such as online banking, ATM/debit card, safe deposit lockers and utility bill payments etc. Al Baraka Bank (Pakistan) Limited is a member of Al Baraka Banking Group (ABG) which is a Bahraini Joint Stock Company listed on Bahrain and Dubai stock exchanges and one of the well9

known leading international Islamic banks. Al Baraka Banking Group is committed to expanding its presence in Pakistan, which is evident from the rapid growth being undertaken by Al Baraka Bank (Pakistan) Limited in the country and its plans to have its Pakistan operations localized as a Bank registered in Pakistan, over the next few weeks. Building on the expertise and experience of its workforce and the growing awareness of Shariah-compliant banking solutions among the masses, Al Baraka Bank (Pakistan) Limited has successfully developed itself as a major unit of Al Baraka Banking Group operating in the region, capitalizing on the Group's geographical presence and high quality research and development in Islamic financial products for its business expansion in the country. Faced with growing challenges in this rapidly developing market, Al Baraka Bank (Pakistan) Limited strongly relies on its ability to be an effective and efficient market player through renewed focus on superior customer service, development of Islamic alternatives to conventional financing facilities, and strict adherence to Shariah rulings and principles. Al Baraka Banking Group is the biggest Islamic banking group listed on the Bahrain Stock Exchange in terms of capitalization. It has been rated by Standard & Poor's as BBB- with a shortterm rating of A-3. Al Baraka Banking Group offers retail, corporate and investment banking and treasury services strictly in accordance with the principles of the Shariah. The authorized capital of Al Baraka Banking Group is US$1.5 billion, while the total equity amounts to about US$ 1.59 billion. With assets of US$11.2 billion, the Group has a wide geographical presence in the form of subsidiary banking Units in 12 countries, which in turn provide their services through more than 250 branches. These banking Units are Jordan Islamic Bank/ Jordan, Al Baraka Islamic Bank/ Bahrain, Al Baraka Bank (Pakistan) Limited/ Pakistan, Banque Al Baraka D'Algerie/ Algeria, Al Baraka Bank Sudan/Sudan, Al Baraka Bank Ltd/ South Africa, Al Baraka Bank Lebanon/Lebanon ,Bank Et-Tamweel Al- Tunisi Al Saudi/ Tunisia, The Egyptian Saudi Finance Bank/Egypt, Al Baraka Turk Participation Bank/Turkey, Al Baraka Bank Syria (under establishment), and representative office, Indonesia.

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Vision.is...Learning
It defines our existence, inspires all stakeholders associated with us, creates a powerful moment inside, and responds to the challenges outside. It continues to evolve as present captures new realities and foresight unfolds new possibilities. All in an incessant attempt to help individuals and organizations discover their God-given potentials to achieve Ultimate Success actualizing the highest standards of efficiency, effectiveness, excellence, equity, trusteeship and sustainable development of global human society.

Mission..is....Leading
We aspire to become a learning institution and evolve as the leading community for the purpose of integrated development of the society by actualizing strategic partnership with stakeholders, harnessing leadership, generating useful knowledge, fostering enduring values, and projecting sustainable technologies and practices.

AlBaraka Profile

Our Vision:
We believe that society needs a fair and equitable financial system which rewards effort and contributes to the development of the community.

OurMission:
To meet the financial needs of communities across the world by conducting business ethically in accordance with the Shariah, practicing the highest professional standards and sharing the mutual benefits with the customers, staff and shareholders who participate in our business success.

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Our Core Values:

PARTNERSHIP - Our shared beliefs create strong bonds that form the basis of long term relationships with customers and staff. DRIVEN - We have the energy and perservance it will take to make an impact in our customers lives and for the greater good of the society. NEIGHBOURLY - We value and respect the communities we serve. Our doors are always open; our customers always experience a warm-hearted, hospitable welcome and accommodating service.

PEACE OF MIND - Our customers are rest assured that their financial interests are being managed by us to the highest ethical standards.

COMPANY MANAGEMENT SYSTEM

Management means the administration and the governing body that is concerning the whole organization. All the decision and strategies are been proposed and evaluated the management of the organization. At Bank Alfalah, the management is pretty strong and there is lot centralization in the whole network of the bank. The management at Bank Alfalah has been divided into 3 major parts. i-e, Board of Directors, the Top management, and the group of middle managers, supervisors and the employees.

Board of Directors:
Mr. Adnan Ahmed Yousif, Chairman Mr. Tariq Mahmood Kazim, Deputy Chairman Mr. Shafqaat Ahmed, Chief Executive Officer Mr. Abdulrahman Shehab, Director Mr. Nadeem Amjad Khan, Director Mr. Syed Tariq Hussain, Director 12 Representing Al Baraka Islamic Bank B.S.C.(c) Representing Al Baraka Islamic Bank B.S.C.(c) Representing Al Baraka Bank (Pakistan) Limited Representing Al Baraka Islamic Bank B.S.C.(c) Representing Al Baraka Islamic Bank B.S.C.(c) Representing Emirates Financial Holding LLC

Mr. Abdul Ghaffar Fancy, Director Mr. Federico Tauber, Director Mr. Tariq Hamid Mr. Salman Ahmed Mr. Imtiaz Ahmad Pervez

Representing Emirates Financial Holding LLC Representing MAl Al Khaleej Investment LLC Independent Director Independent Director Independent Director

Sss

AlBaraka Organizational Structure Organizational Structure

Mr. Mohammad Mehfooz-ul-Bari(Area Manager) Mr. Khalid Mahmood Butt (Branch Manager) Mr. Muhammad Younis Khan (Manager Operations) Miss Sobia Rasheed(Credits, corporate) Mr. Rashid Hafeez (RM)

Mr. Mirza Sikandar Baig(RM) Miss Tahira Iqbal ( Customer Relationship Officer)
Mr. Haroon Malik (Remittance Officer) Mr. Imran Aziz Khan (Teller 1)

Mr. Abdul Hameed (Teller 2)

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Products and services

Striving to develop and an integrated Islamic Financial System. Compliance with the rules and principles of Islamic Shariah is the core of the banking and financial activities of the Bank. To this end, AlBaraka has successfully sought the advice and expertise of Islamic scholars acclaimed for their knowledge and piety from all over the Islamic world to guide its path and monitor its performance. The Banks activities and operations are regularly scrutinized by its Shariah Advisory Board. Al-Baraka Islamic Bank in Pakistan offers a comprehensive range of banking products and services. They are:

Savings and Current Accounts Term Deposit Accounts Khazana Accounts Incentive Accounts Murabaha Investment Accounts Housing Musharakah Demand Drafts Letters of Credit (L/C) Letter of Guarantee Travelers Cheque Pay order Foreign Remittance Islamic Export Financing Foreign Currency Accounts (FCAs) ATM Network Lockers Utility Bills

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Islamic mode of financing

These modes of financing have been written by Maulana Taqi Usmani who is the former Chairman of Shariah board of AlBaraka Bank. After studying these we will be in a position to understand the 90% working of the bank. The important modes of financing are: 1. Musharakah 2. Mudarabah 3. Ijarah

Musharakah
Introduction:'Musharakah' is a word o f Arabic origin which literally means sharing. In the context of business and trade it means a joint enterprise in which all the partners share the profit or loss of the joint venture. It is an ideal alternative for the interest-based financing with far reaching effects on both Production and distribution. In the modern capitalist economy, interest is the sole instrument indiscriminately used in financing of every type. Since Islam has prohibited interest, this instrument cannot be used for providing funds of any kind. Therefore, 'Musharakah' can play a vital role in an economy based on Islamic principles.

Murabaha Introduction
Most of the Islamic banks and financial institutions are using "Murabaha" as an Islamic mode of financing, and most of their financing operations are based on "Murabaha". That is why this term has been taken in the economic circles today as a method of banking operations, while the original concept of "Murabaha" is different from this assumption. "Murabaha" is, in fact, a term of Islamic Fiqh and it refers to a particular kind of sale having nothing to do with financing in its original sense. If a seller agrees with his purchaser to provide him a specific commodity on a certain profit added to his cost, it is called a "Murabaha" transaction. The basic ingredient of "Murabaha" is that the seller discloses the actual cost he has incurred in acquiring the commodity, and then adds some profit thereon. This profit may be in 15

lump sum or may be based on a percentage. Uses of Murabaha Murabaha can be used in following conditions: Short / Medium / Long Term Finance for:

Raw material Inventory Equipment Asset financing Import financing Export financing (Pre shipment) Consumer goods financing House financing Vehicle financing Land financing Shop financing PC financing

Ijarah
"Ijarah" is a term of Islamic Fiqh. Lexically, it means 'to give something on rent'. In the Islamic jurisprudence, the term 'Ijarah' is used for two different situations. In the first place, it means 'to employ the services of a person on wages given to him as a consideration for his hired services." The employer is called 'mustajir' while the employee is called 'ajir'. Therefore, if A has employed B in his office as a manager or as a clerk on a monthly salary, A is mustajir, and B is an ajir. Similarly, if A has hired the services of a porter to carry his baggage to the airport, A is a mustajir while the porter is an ajir, and in both cases the transaction between the parties is termed as Ijarah. This type of Ijarah includes every transaction where the services of a person are hired by someone else. 16

Departmentalization
The Al-Baraka Islamic Bank has number of interrelated departments that works together t o achieve the specific goals and objectives of the organization. The AIB has b u i l t a hierarchical system that includes the sub departments. The AIBs exiting system includes following departments.

1. Cash department 2. Clearing /Remittance department 3. Advances department(Credits)

All these departments come under the operations, which is headed/ controlled by the Manager Operations.

1. Cash Department:
Basically this department is the pillar of the whole banking system. This is the department which initiates the relationship between the customer and the bank. Here it the responsibility of the officer that there is no element of fraud by the customer. For this purpose the bank fulfills the KYC (Know Your Customer) policy related regulations issued by SBP. In this department issuances of cheque books and lockers operations are also part of operation. These are the faster ways to transfer money. The following procedures are fulfilled in this regard:-

Check the test numbers at the arrival Verify the signatures of the bank official.
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Entered in the relevant register. Make payment.

Cheque book issuance:

Enter in register at the time of receiving cheque book from head office Enter in system account wise Signature on register at the time of receiving Take cheque book acknowledgement(time receiving stamp, signature verify) Issue in system(charges recover if any)
Cheque book stop payment:

Make a request(mark time receiving stamp, signature verify) Enter in system(select number of cheques, deduct charges) Enter in register(Custodian, operation manger signatures) 2. Clearing /Remittance department: I. Outward Bills for Collection:
Bills sent to other cities banks for clearing are called outward bills for collection. Checks are entered in the OBC register, the number is written and clearing Stamp is affixed along with the test number entry.

The OBC advice is prepared. The respective checks are attached with the advice. This is sent to the relevant city.
Upon clearing that bank credits the bank account and gives advice to the bank. 18

II.

Inward Bills for Collection

Bills received from other banks out of city for the local clearing are called Inward bills for collection.

a) The bank received the clearing advice along with the check/draft. b) The checks/drafts are recorded in the inward mail and entered in the IBC register. c) The checks are lodged for clearing.
After realization the advice is mailed to the branch and its account is credited. 3-Advances/ Credit Department: The function of this department is to lend money in the form of clean advances, against promissory notes, as well as secured advances against tangible and marketable securities. The bankers prefer such securities that do not run the risk of general depreciation due to market fluctuations.

a) Securities
Common Securities for the bankers advances are as under.

b) Guarantees
When an application for advance cannot offer any tangible security, the banker may rely on personal guarantees to protect himself against loss on advances or overdraft to applicant.

c) Mortgage
A mortgage is the transfer of an interest in specific immovable p r o p e r t y f o r t h e purpose of security the payment of money advanced or to be advanced by way of loan, and existing or future debt, or the performance of an engagement which may r i s e t o a p e c u n i a r y l i a b i l i t y . T h e t r a n s f e r i s c a l l e d a m o r t g a g o r , t h e t r a n s f e r e e m ortgage.

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d) Hypothecation
When property in the shape of goods is charged as security for a loan form the bank t h e o w n e r s h i p a n d p o s s e s s i o n i s l e f t w i t h t h e b o r r o w e r , t h e g o o d s a r e s a i d t o b e Hypothecated The essence of hypothecation is that neither the property in the goods not the possession of them are possession is left with the borrower, the goods are said to be Hypothecated the essence of hypothecation is that neither the property in the g o o d s n o t t h e p o s s e s s i o n o f t h e m a r e p o s s e s s e d b y t h e l e n d e r , b u t t h e s e c u r i t y i s granted by means of letter of hypothecation, which usually provides for a bankers charge on the hypothecation goods.

e) Pledge
In a pledge the ownership remains with pledge, but the pledge has t h e e x c l u s i v e possession of property until the advance is repaid in full. While in case of the default the pledge has the power of sale after giving due notice.

f) Promissory Note
Sometimes promissory note is also accepted as a security, "A promissory note is an instruments in writing containing an unconditional undertaking signed by the maker, to pay on demand or at a fixed or determinable future time a certain sum of money only, to or to the order of certain persons, or to the bearer or the instrument." A promissory note is incomplete until has been delivered to payee or the bearer. Moreover, the sum promised in a promissory note may be made by two or more makers who may be liable there on jointly and severally. 3.3.7.2 Consumer Finance Schemes Following are the modes used for consumer finance.

g) Car Ijarah
AlB provide the facilities of car Ijarah/leasing to his customer. AlB provided fund up to 4 million to his customer for the period of 2 to 5 year. No interest concept is involved; therefore profit margin is not announced before transaction .finance on the concept of asset based financing. Therefore no chance of default for bank. 20

Learning / Internship Experience Experience at AlBaraka Bank

When I was first joined AlBaraka, I was much clear about my duties. This was because my terms of reference are cleared very much. Everything is pre scheduled. I work with under every department head that help in clearing my concepts relating to bank. I learn many things over there. Responsibilities at AlBaraka Bank: During my six weeks of internship, I performed some responsibilities which added to my experience and learning. All the tasks that I executed gave me a sense of responsibility. Following responsibilities were delegated to me during my internship: Account opening Account closing Issuance of cheque book Maintainece of lockers Handling of cash Remittance/Clearing Credit operations Marketing

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Account Opening: First duty that I was performing in AlBaraka is opening of account. It includes the customer request for opening account, filling account opening form with all required documents. Required documents are different for different entities. For example individual, sole proprietor, partnership, public limited, private limited. In account opening KYC (know your customer) form is very important. This form helps in judging the customer. Either customer is the right person or it involves in any type of criminal activities. When account is opened, Business relation number (BR) allocated for that particular customer in system. This BR number becomes the identity of customer in system and documents. After branch manager approval, these documents send RSD (Retail Service Department) by scanning. RSD check all documents
and advice the account number to customer & request him/her to make initial deposit at cash counter. When account has been opened all documents send to RSD through courier with one SS Card other one for branch record. RSD Prepare Thank you letter for customer and introducer and mail these through courier. File copy of these letters & courier slip along with account opening from. File the account opening from in the "Customer Account Filing Cabinet" with all documents in box file/paste file in serial order. Send specimen signature card for scanning to operations department.

Account Closing:
If customer wants to close his account, he will fill the form of account closing and tell the reason of it. Customer returns the cheque book and ATM card. Verify Customer signature affix date time receive stamp approve by MO, BM and Deduct charges by passing transfer entry in system. Get the charges transaction supervised. Inquire customer about the final balance. Provide a single cheque leave & request customer to withdraw the final amount from cash counter. In case customer wants PO to be issued, request him to fill a PO issuance application form & tell him about the additional changes for PO. Forward the PO issuance request to remittance department for issuance. Issue PO for net amount less charges. Handover the PO to customer after taking his acknowledgment then scan account closure request mail to RSD (check customer account should be Zero Balance). Retrieve Specimen Signature Card from cabinet/ Vault. Affix Account Closed stamp on signature specimen card . Write the date & initials. RSD Check 22

the account balance. Log into system and mark the account as closed. Enter the closing reason. Close the account in the system with date. Branch Destroy ATM card by cutting it into two pieces & tear the signature portion of cheque leaves surrender by customer. Handover closed account documents & un-used cheque leaves to MO for his review initial. Initial the account closing request & destroy the cheque leaves after noting the serial on account closing request. Original account closure request sends to RSD through courier for bank record.

Types of Accounts & documents required in each case:

Individual: Copy of CNIC/ PASSPORT Any job/ business proof

Joint: Copy of CNIC/ PASSPORT of both Any job/ business proof of both

Partnership: Copy of CNIC of all partners. Copy of NTN Certificate. Account Opening Request on company letter head. Partnership Deed Request in favor of person authorized to operate Account. Attested certificate of registration ( if company registered)

Minor: Copy of Birth Certificate Copy of B Form CNIC copy of Guardian Documentary evidence of the occupation in which the guardian happens to be engaged in. A guardianship letter where a guardian has been appointed by the Court (examined by the Banks Legal Dept).

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Proprietorship: Copy of CNIC/Passport Copy of NTN Certificate Account Opening Request on Business Letter head. Company Rubber Stamp.

Limited Company:
Copy of Certificate of Incorporation List of Directors Memorandum & Articles of Association Board Resolution Certificate of Commencement of Business (for Public Ltd. Co.) Copies of CNICs of all Directors Latest copy of certified Form-29 Account Opening Request on company letter head.

Club/ Society/ Association:

Copy of Rules/ By-laws Copy of Registration List of Executive Members/ Management Committee/ Management Board etc Certified copy of Resolution CNICs of all Members of Management Body & Signatories Undertaking to immediately inform the bank in writing about any changes in Management Committee/ Authorized persons.

Issuance of cheque book: Current Account:

25, 50 leave cheque books. Without any charges.

Saving Account:
25, 50 cheque book. Rs. 2 per leave.

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Requirements:
New issuance: After verification period from NADRA for NIC verification for opening a new account, done by head office... Then the customer is called for cheque book. Requisition slip is signed by the customer. Signatures are verified. Then made a request for new Cheque on Bank Format and send to Head Office. If third person comes for the cheque book of the customer bearing an account. His signatures must be attested by the bearer of the account. When he comes, his name & CNIC number is written on the requisition & also take Authority letter from customer when the cheque book is given to him, signatures are taken from him in the receivers space on the Cheque Book Register.

Maintainece of lockers:
There are three types of lockers.

Small size Medium size Large size

Customer can take any type of locker if he has his account in bank. Small size locker is available with 1500 rent plus key purchase fee (2000) that is not refundable. If customer maintains his account with average balance of 150,000 then without rent locker can be used. In medium, he must maintain his account with average balance of 200,000/- for acquiring locker free. In large, the average balance is 250,000/- needed.

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Handling of cash:
Cash Department performs three main functions: Cash Deposits Cash Payments Clearing

Cash Deposits
Cash receiving officer receives cash along with pay-in slip from the customer. He checks if the deposit slip is properly filled up containing title of account, account number, date and amount in word and figures. Cash is received by the cash receiving officer, twice counted and matched with the deposit slip. The cash details are written on the deposit slip. Cash received stamp is affixed on the face of both deposit slips along with the signature of the cash receiving officer and the customers copy is given to the customer as a receipt. Deposit slip given to the in charge in cash department. Again proper scrutiny is made by the in charge cash department on cash receipt. In charge cash department signs the deposit slip; Deposit slip is checked and verified in the concerned account in the system.

Cash Payment
The process for payment of cheques for local and foreign currency is same. First the customer presents the cheque or holder to branch and the particulars of cheque are properly filled in. Signature of the holder is taken on the back of the cheque. Cheque handed over to the officer cash department for scrutiny where 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 and then the officer cancels cheque. It is posted in the system and posting stamp and number is affixed on it.. One more signature on the back of the cheque is taken from the holder and then cash is paid to the payee. Cash detail is written on the back of the cheque. Cash paid stamp is affixed on the face of the cheque. Entry is passed in the system. If the amount is greater in Rs greater than the limit of the cashier, than Cash Deposit In charge will verify the cheque and will supervise it. Then the payment will be made.

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Remittance/Clearing:
The main function of remittance department in a bank is the transfer of funds.

Pay Order Issue:

First receive application form, from the customer & verify the signature on it. Check & ensure that sufficient funds are available in account. Open the local remittances module & select pay order issuance option. Enter all the details from the application form & debit the customer account. Deduct pay order charges. Enter the pay order leave into the printer & give the print command. Authorize & supervise the transaction from the authorized officer. Then authorize the pay order from the authorized officer by getting it signed & a second signature of manager operations is also required. Pass the pay order to the customer. At the end of the day check the number of pay orders issued against the number of pay orders applications. Cancellation of Pay Order Receive written request from the customer. Verify customer signatures. Check that the pay order is endorsed at the back side by the beneficiary or not. If it is not endorsed return it to the customer & request for endorsement. If everything is in order, post the cancelled stamp. Log into system & select pay order cancel option. Select the desired pay order for cancellation. Credit all the funds back into the customer account. Authorize the transaction & pay order by signing it. Deduct charges from the customer account for cancellation.

OBC Issue & OBC Realization

OBC is Outward Bill for Collection. When the cheques of cities other than the city in which the cheque is presented then it is known as outward bill for collection. It can be cleared through NIFT or by sending the cheque to the other AlBaraka bank branch of that city where NIFT is not working or by directly sending the cheque to that bank where NIFT & AlBaraka bank branch both are not present.

NIFT
When the cheques are given to NIFT where NIFT is working, then, NIFT clears that cheque. NIFT collects all the cheques & send it to the desired branch. It depends on that branch that it clears or returns that cheque. It gives a faith report to the NIFT then NIFT 27

passes its two copies, one to the main branch of that bank & other to that branch where cheque was presented, specifying that the cheque was realized or returned. If it is realized then the funds are transferred to the NASTRO of the main branch & the branch where it was presented deducts the main branchs NASTRO & sends an intimation mail. Stamping at front and backside is necessary part of clearing.

Outward
Accept cheques deposit slip along with the cheques from the customer. Check that the amount in words & figure are not same, date nor to be post dated. Cheques are drawn on same city. Deposit slip is of the same date or not etc. affix banks crossing & clearing stamps on the cheque & the deposit slip. Hand over the customer copy. Post each cheque singly & match the amount with the deposit slip. If the limit is over then supervise it by the MO. At the end of the day generate a clearing list from the system & match the vouchers with the list and clearing suspense account. Prepare NIFT bundle & a summery sheet of total clearing cheques & ensure that total matches with the systems clearing outward figure. Place the bundle in the NIFT bag & seal it with the special plastic. The next day the cheques having no objections will be cleared & funds will be transferred in the accounts. If some cheque is returned then return is marked in the system & details are entered in the return register & a net clearing amount is arrived after the processing of return & this amount is matched with the net amount of clearing report delivered by NIFT. The clearing suspense account should be zero at the end of the day. Inward Receive clearing bag from NIFT rider & ensure the seal is not tampered. Open the bag & check that numbers of cheques are equal to the number of cheques mentioned in the summery report. Separate the cheques & pay orders. Post the cheques in IB system clearing module & pay order through LR module reversal option. Authorize the posting which is over limit. Prepare return memo for instruments with insufficient balances for some other reason & post the entry in the system. Enter the details of return in the cheque

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return register. Deduct charges of the return cheques from the account holders accounts. One Photostat of that cheque & the memo is kept for record.

Credit operations:

Marketing:
The newly products of AlBaraka bank are sarparast and rahnuma Umra. Rahnuma Umra is offering different packages for their customers. These are premium, economy plus and standard packages. They all have different requirements with providing different facilities. Sarparast is basically insurance facility that is given to customer as per requirement.

Recommendations

During studying the different departments of AlBaraka Bank, I conclude that it is an excellent organization. Apart from its excellent operations, it does not tend to be stationary at one point. The Top Management keeps on exploring the organization. Although it is quite difficult to suggest something to such an established organization yet in the following lines, I make a humble effort to give some recommendations to this well performing organization. The company should retain its market share by devising new training program the other competitor is not providing.

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 The AlBaraka follows an unsound advertising strategy. The advertising budget should be increased, and it would be better if an advertising department is opened, instead of paying big amounts to the advertising agency. They are only focus on their current clients; they do not consider the new clients/companies, so they must focus on the new companies. Departmental interaction is very important in any organization. They must focus on this area.

Bibliography:
AlBaraka.com www.Albaraka.com.pk CMD Lahore Pakistan www.cmd.org.pk

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