BANK ALFALAH LIMITED

Introduction and History:

Bank Alfalah Limited was incorporated in June 21st, 1997 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 350 branches in different 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 their commitment to a culture of innovation and seeks out
synergies with clients and service providers to ensure uninterrupted services to its
customers.

The bank perceived the requirements of customers and matches them with quality products and
service solutions. During the past five years, bank has emerged as one of the foremost financial
institution in the region endeavoring to meet the needs of tomorrow as well as today. To
continually upgrade the quality of service to the customers, training of team members in all the
integral aspects of banking, customer service and IT was specially focused.
The portfolio concentrates on all aspects of conventional banking as well as the
financial needs of corporate sector. Dynamic and high value product includes Car

Financing, Home Financing, Rupee Travelers Cheques, Credits Cards, Debit Cards, On
line Banking, ATM and consumer Durables. In addition to this, Islamic Banking Division
is a recent initiative, which operates as separate branch. It offers Shariah Compliant
products through a network of five branches, which have been increased to 150 by the year
2010.The bank is committed to combine all it s energies and resources to bring high value,
security and satisfaction to its customers, employees and shareholder. The Bank has
invested in revolutionary technology to have an extensive range of products and services.
This facilitates commitment to a culture of innovation and seeks out synergies with client
and service providers to ensure uninterrupted services to it customers.

Board of directors

H.E. Sheikh Hamdan Bin Mubarak

Al Nahayan
Chairman

Mr. Mohammad Saleem Akhtar

Chief Executive Officer

Mr. Abdulla Khalil Al Mutawa

Majeed

Mr. Abdulla Nasser

Hawalileel Al-Mansoori

Mr. Ikram UlSehgal

Mr.Khalid Mana Saeed Al Otaiba

Sheikh

Mr. Nadeem Iqbal

VISION STATMENT:
To be the premier organizations operating locally and internationally that provided the
complete range of financial services to all segments under one roof

MISSION STATMENT:
To develop and deliver the most innovative products, manage customers experience, deliver
quality service that contributes to brand strength, establishes a competitive advantage and
enhances profitability, thus providing value to the stakeholders of the bank.

GOALS & OBJECTIVES:

Goals and objectives are factors through which the companys devotion and
commitment to the job can be seen. If the goals are realistic and achievable, than surely
that organization is doing its job.
Bank Alfalah also has certain goals and objectives which it is trying to achieve,
through its various strategies and operations. The goals and objectives are mentioned
below:
1. To create a sound base, and through efficient systems achieve modern
banking through out Pakistan.
2. By the end of every accounting year there is an increase in deposits. As the
deposit rate of during 2002 was approx 52 Million and the same has been
increased in 2003 by 77 Million.
3. To create unit banking network in all the branches of Bank Alfalah, the
end of the year. This means that all the operations of the bank, i.e. deposits
to advances, imports, exports, L/C Opening, foreign currency and many
more aspects under one roof, so that the customer can be facilitate in one
visit.
4. Islamic Banking is one of the goals of Bank Alfalah though it has been
initiated in the last fiscal year and it is very acceptable for general public.
However, there is lot of work to do for successful implementation of the
Islamic Banking Plan. In this regard the Bank is opening specific Islamic
Banking Branch under the supervision of its Islamic Banking Division.

Products and services

Comprehensive and diversified product portfolio
With the mission to provide all-encompassing banking services to the customer
bank Alfalah has uniquely defined menu of financial products ,currently it is one of
the most comprehensive portfolios of personalized financial solutions that are
custom tailor to serve the requirements not only foe conventional customers but
also to fulfill the needs for corporate sector

Car financing
Rupee traveler check
Online banking
Credit cards
ATMs
Home financing
Islamic banking
Corporate and structured financing

Car financing
Car financing is one of the major renowned products of bank Alfalah and can be
utilized in terms of financing of used vehicles, loan against car, balance transfer
facility, refinancing facility9only for Alfalah customers) and it is characterized in
terms of

Lowest markup
Lower insurance
Quick processing
Lower down payment

Home financing
Major features of bank Alfalah home financing are the lowest markup, quick
processing, multiple repayment options and free valuation. It has been bifurcated in
terms of home buyer, home construct, home improver, home balance transfer
facility

Financing limit :
Tenure :
Equity participation:

up to Rs 10,000,000/up to 20 years
30%borrowers/70%bank

Rupee traveler check

Rupee travelers checks are as good as cash and are accepted at the major shops,
travel agents, hotel business establishment and all over the country and abroad.
This service is being offered to facilitate instant fund availability to travelers and
business people who use to carry a large sum of money with them.

Credit cards
Bank Alfalah VISA card is everywhere and globally accepted and welcomed at
location displaying it is accepted at nearly 30 million merchants 870,000 ATMs in
more than 150 countries around the globe and over 10,000 establishments in
Pakistan. Alfalah VISA pays for shopping, travel, entertainment, meals and much
more.

Debit cards
Bank Alfalah limited presents Alfalah hilal card, the first VISA electron international
debit card which gives unlimited access to current/saving accounts with a simple
swipe at millions of retail shops and ATMs worldwide. The Alfalah hilal card come
with the host of convenience and benefit combined with the combined with the wide
reach of VISA network enabling it to be accepted at more than 840,000 ATMs and 13
million retail outlets, around the world making it the most acceptable debit card
available in Pakistan.

Online banking
To provide enhance and value added products to the customer bank is constantly
starving for additional facility. Bank provide fully automate online full banking
facility to customers enabling them to carry out banking transactions like balance
inquiry, statement request, product information and exchange rate.

Automated teller machine (ATM)

The bank offer 24 hours self service bank facility to its customers on country wide
basis through development of automate teller machine. This system allows the
banking facilities such as cash withdrawal, fund transferring, cash deposit, balance
inquiry, account statement. Electronic cash dispensing facilities are available in
major cities of Pakistan. All ATMs are linked through the state of the art satellite
based communication system which offers 24 hour real time service.

Islamic banking
A separate division is initiated which operates as separate branch. it offers Shariah
complaint products through a network of 5 branches .Islamic banking has launched
following products with the perception that these are in the accordance with the
Shariah principle.
a. Alfalah Musharik homes
b. Murabaha finance
c. Alfalah car ijrah

Corporate and structured financing

The portfolio concentrate on all the aspects of conventional banking as well as the
financial need of corporate sector including dynamic and higher value product

Loaning against securities

Letter of credit
Letter of guarantee
Demand finance
Cash finance

Hierarchy Of Management

President (CEO)
Senior Executive Vice President
Executive Vice President
Senior Vice President
Vice President
Assistant Vice President
Officers Grade I, II, III

Clerical Staff

Cashier

Typist

Non-Clerical Staff

Clerks &
Assistants

Guards

( Ref : Naeem Akhtar operation officer Khana Phull Branch)

Messengers

Posts and structure within a Branch

Branch manager
Operations staff
Clearing dpt
accounts
closing

remittance dpt

accounts dpt

cash dpt

accounts

dpt
Clearing
officer

remittance
officer

accountants
& auditors

IT
opening

dpt

dpt

chief cashier operations IT operations

cash officers officer
officer officer
cash sorters opening
closing

(Reference : Naeem Akhtar operation officer khana pul branch.)

Clearing departments:
This department clears the cheques of other banks that have been deposited in Bank Alfalah or
the cheques of bank Alfalah deposited in other banks.

Remittance department:
This department deals with every type of remittances.

Accounts department:
This department deals with accounts section i.e. book and record keeping.

Cash department:
The most attractive department of the bank. This deals with the cash receiving cash payments
and sorting and saving of cash like matters.

Accounts opening department:

This department deals with all the new opening accounts. Here all the documentation and other
required steps for the opening of accounts are performed.

Accounts closing department:

This deal with the closing of accounts affairs.

IT department :This department is considered as the most needed department now a days
because it provides and take care of all the computer systems of the bank.
(Ref: Naeem Akhter operation officer Khana Phull Branch)

FAYOLs principles of management and Bank Alfalah

Division of work:
At bank Alfalah there is a proper division of work. They have hired different people with
different work specializations and they have separate departments for separate types of tasks, like
accounts dpt, cash dpt, IT dpt and many more like these.

Authority : in bank Alfalah the authority is with is with the top level managers, with in the
branch it is the characteristic of a branch manager and in the specific department of the branch it
is with the in charge of the department.

Discipline :
The employees and managers of bank Alfalah are very disciplined because they honor and
respect the rules and regulations.

Unity of command:
This principle is seen in bank Alfalah because the employees receive orders from the branch
manager and he in turn gets it from the regional manager.

Unity of direction :
This principal is applied because the employees have only one direction i.e. profit maximization
through increased customer orientation.
Subordination of individual interests to the general interest:
The employees do subordinate their personal interests to the general interest that is they follow
and obey all the rules and do all the jobs they dont want to or they are less willing to do that.

Remuneration:
The employees of bank Alfalah have fair and just salaries and wages that is the principle of
remuneration is observed.

Centralization:
The employees cannot take decisions at their own regardless of how profitable they may be. All
the decisions are taken by the top level managers.

Scalar chain:
It is the line of authority from the top management to the lowest ranks. The scalar chain of bank
Alfalah has been given on next pages.

Order:
This principle is also prominent in bank Alfalah this means that all the employees and things are
available at right time and right place whenever they are required.

Equity:
This principle is also applied in the management of bank Alfalah.
Stability of tenure of personnel:
This also seen in the management because they always have alternatives available for the filling
of vacancies at the needed time.

Initiative:
The initiative and innovations are the tasks of top level of management.

Esprit de corps:
Employees at bank of Alfalah have the team spirit and the work with harmony and unity.

(Ref: Naeem Akhter, Nida Javed operation officer Khana Phull Branch)

E-business and Bank Alfalah

As the world of banking is changing and a new trend of computer based banking has emerged
and accepted worldwide so has done the bank of Alfalah .it has accepted this change and have
benefited itself from it a lot. The bank of Alfalah is using computer and information technology
in the following fields.

Data storage:
The data that was previously stored in the big registers, folders and files now are stored in the
computer. The accessing data time from registers have been decreased to in a great deal. Now
any manger or operation officer can access the account information of a client within the fraction
of minutes.

Online banking:
The greatest advantage of e-business is e-banking that is any client or customer can withdraw
and add amount to his account from different cities of the country previously we could do these
from the branches with in a city.

Online information:
Any customer can access his account status any time online.

Social responsibility and bank Alfalah:

Classical view:
While interviewing the operation officer of bank Alfalah khanna pul branch we came to know
that bank Alfalah acts under the classical view which says that managements only social
responsibility is the profit maximization. Besides he told us that the bank abbeys the rules and
regulation regarding the social benefits so we can say that this bank is at the social obligation
level. Besides he told us that bank Alfalah contributes his share in different natural disasters like
the earthquake of October, 8, 2005 so we can say that it is socially responsive also.

Organizational culture
Outcome orientation:
The culture of bank Alfalah is more outcome oriented. One of the operations officer said that it is
more profit oriented rather than other things. He said that it is because that in banking profit is
the sign of life and it can keep you going. Thats why the main focus of bank Alfalah is on profit
maximizing.

People orientation:
While talking about the people orientation the officer told us that we have to deal with two
groups of people first are the employees and second are the customers.

Employees:
Bank Alfalah is has specified strong rules and regulations for its employees. Employees have to
follow them and have to produce maximum output irrespective of how hard they have to work
for it. Once the target have been aimed then employees have to achieve that.

Customers :
Bank Alfalah is very much customer oriented .said the branch manger that customers are our
keys to maximized profit and keep going. Bank Alfalah cares a lot about its customers it wants to
satisfy the customers either by producing value added products or packages ,or superior services.

Team orientation:
The employees of this bank are more team oriented. They prefer working in groups themselves
besides they are encouraged to do so by the mangers at branches. The manger said that the tasks
of banks are interlinked with each other in a great deal so team work is far better than working
separately.

Aggressiveness:
Employees and staff of bank Alfalah is less aggressive that is they prefer working in groups and
cooperate with each other in a great deal. So aggressiveness is negligible in bank Alfalah .instead
cooperation is dominant in the culture.

Stability:
There is a greater stability as the rules and regulations are observed strictly and the employees
have to follow these. Besides the rules and commands have a proper direction that is profit
maximization and greater customer orientation.

Innovation and risk taking:

The employees and managers are not encouraged to innovate and take risks on their own behalf.
If they have some ideas they cannot implement them directly. For this they would have to share
this idea with top management and the remaining is left on to the top management. So we can
say that innovation and risk taking of employees is neither appreciated nor are they encouraged
to do this.

Attention to detail:
The factor of attention to detail is also maintained that is the employees are expected to do the
work with accuracy and precision.

Bostan consulting group (BCG- matrix )

Star
The businesses whose growth rate as well as market shares are very higher and those who are the
leader of markets.

Cash cows
The businesses having big market share but low growth rate, and they earned a lot amount of
cash due to their reputation.

? (Question marks)
Businesses growing highly but having low market share than stars businesses.

Essence of BCG MATRIX

Bank Alfalah lies under the category of STAR in the BCG MATRIX, as there growth rate and
market share is very high.

Competitive analysis
PORTER FIVE FORCES MODEL
The sole purpose of competitive analysis is to determine the organizations or companys
position when compared with its competitors in the industry environment.
PORTER discussed five competitive forces in the competitive analysis of the company. Here is
Bank Alfalahs competitive analysis with respect to porters five competitive forces.

Threat of new entrants

Its a threat of having the new entrants in the same industry. For bank Alfalah this threat is high
as more new banks are being launched in the country. Its negative for bank Alfalah as they have
now to think more about their products and services. The latest entrances in this industry are of
BARCLAYS,RBS,SILKBANK and many more.

Bargaining power of customer

Customers are influenced by the brand name of bank Alfalah the caring bank. The bank sets its
own prices not influenced by the customer, due to the low bargaining power bank Alfalah gets
high profit and has positive effect on company.

Bargaining power of supplier

Bargaining power of supplier for bank Alfalah is low. The suppliers of any particular bank are
their customers, investors, and stakeholders. Bank Alfalah has many customers and stakeholders
because its parent company is in Abu-Dhabi

Threats of substitutes
Threats in which customers move from your organization to another organization bearing
switching cost is called threat of substitutes. Threat of substitute for bank Alfalah is high and it
creates negative effect on the company because the switching cost for the customer is very low.
Because it doesnt cost much to open an account in another bank. And now a day an individual
person has many bank accounts due to which there is greater threat of substitute for bank
Alfalah.

Solution to the problem

Customer problem solution
Customer is the king and customer is always rite. Bank is earning profit from the customers.
Bank should have a proper relationship with corporate as well as individual customers. It is
recommended that management should stress on having satisfactory relationship with individual
customers because they can also provide the revenue in terms of profit.

Employees problem solution

Insufficient employees

The bank should divide the work load of the existing employees by hiring new people, because
the bank cannot use the alternative to reduce the number of customers and losing the market
share
Working hours

Management should give relaxation to the employees by hiring new professionals and reducing
the working hours.

Job analysis of bank Alfalah

Job analysis is very important task because on the basis of those administrative and managerial
decisions are made, such as recruitment, selection and training etc.
At Bank Alfalah the job analysis is conduced when the organization wants to open a new branch,
setting up new technology or new services etc,

The purpose of job analysis:

To collect information about the different levels of activties to be performed.

To collect the data about the education, skills, experiences, personal qualities.
To select the suitable person for right job.
Human resource planning process of bank Alfalah

Hr department is responsible for an effective HR planning regarding demand and supply of

employees and forecasting for these practices. The objective is same like the other organizations
that I s forecast and plan for acquisition, retention, improvement and utilization of HR. at bank
Alfalah HR planning involves a decision three areas of combined activities.
a. In the first step the bank makes the list of requirements to the specified jobs keeping in
view its needs , objectives , additional human resource and skills required then the bank
is able to hire the service of right kind of person to that job
b. In second step bank makes plans for motivation for their employees by giving
them different sorts of targets and incentives on their achievements for
bringing excellence in the performance of employees in their organization.

c. In third step employees goal and organizational goals are interlinked.

Following are the different situations for which bank Alfalah carries out
different HR planning.

Forecasting employees demand

Opening new branch
Set up or starting with new technologies
Changes in customer demands
New services

Forecasting employee supply

Transfers
Internal movements (promotion)
Job rotation
Over time

Recruitment and selection process of bank Alfalah

Bank Alfalah makes recruitments of three kinds of employees for the fulfillment of their need of
expansion and growth i.e.

Top management
Trainee officer
Contractual employees

This recruitment is made on the basis of the recruitment e.g. top managerial post is fulfilled
either from internal or external sources with good experience and qualification.
Trainee officers are fresh candidates usually recruited from external sources, who are having the
prescribed qualification for the post. Internal recruitment is also made by up gradation of the
lower employees with the same qualification or better performances at the lower post in the same
organization.
Some time contractual employment is made till the availability of permanent employees for the
post. Such type of employment is usually made on emergency bases
Following sources are used to invite application from suitable candidates for internal and
external recruitment;

Newspaper
Websites
Direct applicants

Selection procedure
After the recruitment, the selection of most reliable and capable applicants is made at Bank
Alfalah under the supervision of HR personals.

First of all Bank Alfalah advertises in the media (newspaper, magazines, websites etc)
that situation is vacant for the following post, for which their citizen are;
Candidate must be a citizen of Pakistan
They must be qualified in the relevant field having graduate or post-graduate degrees.
Should have attained the age of 18 years but not exceeding the age of 35 years.

Exit and dismissal procedure of bank Alfalah

Exit procedure in bank Alfalah

Following is the main exit procedure of an employee at bank Alfalah:

Resignation letter in written form

Process of resignation letter
Employee exit interview
Acceptance of resignation
Exit checklist
If the resignation is accepted than employe has to (Clean out entire office, desk, files)
Return all supplies to production
Take all personal belongings
Return all companys credit cards
Hand in all copies of reports and manuals
Delete software from personal laptops or home computers

Dismissal procedure of bank Alfalah

In banks there are more chances of fraud in cash. There is a proper procedure against employs
dismissal.
a. If any employ found in the fraud of cash in the bank than the bank will send him the
written warning.

b. After warning letter the internal inquiry will be conducted in the organization upon that
employ.
c. This inquiry result will be sent to the higher management or further inquiry.
d. If the fraud is proved on the employees than inquiry committee is established.
e. When inquiry proceeding is over than this committee makes a detailed report on that
employ.
f. After this fraud is proved on the employ than dismissal letter is given to him and he will
be dismissed from the job.

Job evaluation criteria for bank Alfalah

In Bank Alfalah the job evaluation criteria is the basic pay, fix salary or wages which constitute
the rates for the job. In the skill based jobs these rates may vary according to the scale and
competence of a person. The rates are fixed by managerial judgment that what is required to
recruit and retain employ.
There is no concept of bonuses, commission or over time related pay.