Contents

History of Bank ............................................................................................................................................. 2

Banking in Pakistan .................................................................................................................................. 2
Bank Alfalah ................................................................................................................................................. 2
Vision Statement ....................................................................................................................................... 4
Mission Statement..................................................................................................................................... 4
Board of Directors..................................................................................................................................... 5
Top Management Of Bank............................................................................................................................ 6
Levels of Management .................................................................................................................................. 7
Board Of Directors.................................................................................................................................... 7
Top Management ...................................................................................................................................... 7
Middle Management Supervisors and Employees .................................................................................... 7
Hierarchy of Bank Al Falah ltd ..................................................................................................................... 8
Internship Activities .................................................................................................................................... 10
Consumer Banking...................................................................................................................................... 13
Financial Analysis....................................................................................................................................... 15
Ratio Analysis ......................................................................................................................................... 15
Vertical Analysis..................................................................................................................................... 19
Horizontal Analysis ................................................................................................................................ 20
SWOT Analysis of Bank Al Falah .............................................................................................................. 21
Problems encountered during internship..................................................................................................... 24
Recommendations: ...................................................................................................................................... 25
Conclusion .................................................................................................................................................. 27
References:.................................................................................................................................................. 28
History of Bank

The historical backdrop of managing an account started with the main model of banks which
were the shippers of the world, who made grain advances to ranchers and merchants who
conveyed products between urban areas. This was around 2000 BC in Assyria, India and
Sumeria. Afterward, in antiquated Greece and amid the Roman Empire, moneylenders situated in
sanctuaries made advances, while tolerating stores and playing out the difference in cash.
Antiquarianism from this period in antiquated China and India likewise indicates proof of cash
loaning. The present current saving money framework is a definitive and well ordered
accomplishment of the ancient banking system of accepting deposits from those who have
surplus and lending to the individuals who don’t have or have nearly nothing.

Banking in Pakistan

Banking in Pakistan first formally began in Pakistan amid the time of British imperialism in the
South Asia. After freedom from British Raj in 1947, and the rise of Pakistan as a nation in the
globe, the extent of banking in Pakistan has been expanding and extending constantly. Pakistan’s
most established bank is the State Bank of Pakistan, which is additionally the national bank of
the country. Prior to autonomy on August 4, 1947 the Reserve Bank of India was the national
bank of what is presently Pakistan. After freedom Muhammad Ali Jinnah took activities to buid
up a national bank in Pakistan which brought about the new establishing of the State Bank of
Pakistan, with its central command to be situated in Karachi. Just 7% of the populace utilizes the
banks has huge potential yet this should be pushed somewhat further.

Bank Alfalah

Bank Alfalah is the fifth biggest private bank in Pakistan with a system of more than 600
branches in excess of 200 urban communities across Pakistan with a global nearness in
Afghanistan, Bangladesh and Bahrain. The agent office of Bank Alfalah is situated in UAE. The
bank is possessed and worked by the Abu Dhabi Group. The International Finance Corporation
(IFC) of the World Bank banded together with the Bank in 2014 and holds 15% stake in Bank
Alfalah.The bank has 97.91% shareholding in Alfalah Securities pvt ltd, which is occupied with
the matter of stock brokerage, investment counseling and fund placements. The bank has 40.22%
shareholding in Alfalah GHP investment management ltd, which is enlisted as an Asset
Management Company and Investment advisor under the Non-Banking Finance Companies.
History of Bank Alfalah begins from Bank of Credit and Commercial global "BCCI" was joined
in Luxembourg on 21st September 1972 with the paid up capital of us $2.5 million. This bank
was going effectively. Yet, a global scheme constrained its administration to stop its tasks. BCCI
was sold on July 5, 1991. around then bank was working in very nearly 69 nations of the world .
parts of BCCI in Pakistan around then were assumed control by service of back and SBP. Later
on banks begun its tasks with the name of Habib Credit and Exchange Bank "HCEB".Habib
Credit and Exchange Bank restricted was fused on June 21st , 1992 as an open constrained
organization under the organizations statute , 1984 and it's initiated keeping money activities
from November 1,1992. HCEB was privatized on July 7, 1997. Administration was assumed
control by Abu Dubai based consortium. The bank was sold for Rs.1.7 billion and government
sold its 70% offer.

Following the privatization in July 1997, Bank Alfalah Limited rose as the new personality of
Habib Credit and Exchange Bank with a gotten reason and responsibility on February 25, 1998.
Accused of the quality of Abu Dhabi consortium and under the authority of His Highness Sheik
Nayan Mubarak Al-Nahayan, the bank has officially made critical consortium in building and
reinforcing both the corporate and retail saving money in Pakistan. The bank is occupied with
business keeping money and related administrations as characterized in the managing an account
organizations law, 1962.The bank is at present working through 350 branches (Approximately)
in excess of 120 urban communities with the enrolled office at B.A.Building, I.I Chungrigar
Road, Karachi. Since its origin, as the new character of H.C.E.B after the privatization in 1997,
the administration of the bank has actualized systems and polices to cut a particular position for

the bank in the market place.Strengthened with the keeping money of the Abu Dhabi Group and
driven by vital objectives set out by its leading group of administration, the Bank has put
resources into progressive innovation to have a broad range for items and administrations.

This encourages their promise to a culture of development and searches out cooperative energies
with customers and administrations suppliers to guarantee continuous administrations to its
clients. They perceive the necessity of their clients and match them with quality items and
administrations arrangements. Amid the previous five years, they have risen as one of the
preeminent monetary foundation in the locale trying to address the issues of today and
Tomorrow.

Vision Statement

“To inspire and empower people to do things differently and shape their own path in life and
business”

Mission Statement

“We look at the market with fresh eyes to find new opportunities and seek new ways of enabling
our customers to succeed and advance the world of finance”

Values

You

We always put the customer and their needs front and centre.

Your Needs

We do all we can to understand and anticipate what will help our customers find their own way
and achieve their ambitions.

Your Way

We do things differently challenging the status quo to find new and better ways to move
ourselves and in our customers forward.

The Right Way

We always act with integrity and transparency in everything we do it. It is the cornerstone of our
business and brand.
Board of Directors

Names Designation

HH Sheikh Nahayan Mabarak Al Nahayan Chairman/Director

Abdullah Naseer Hawaileel Al-Mansoori Director

Abdullah Khalid Al Mutawa Director

Khalid Mana Saeed Al Otaiba Director

Efstratios Georgios Arapoglou Director

Khalid Qurashi Director

Kamran Y. Mirza Director

Nauman Ansari President and CEO/Director

Top Management Of Bank

Nauman Ansari President and CEO

Suhail Yaqoob Khan Chief Risk Officer
Anjum Hai CFO
Hafsa Abbasy Head Human Resources and Learning
Mehreen Ahmed Group Head Retail Banking
Rizwan Ata Group Head Islamic Banking
Bilal Asghar Group Head Corporate, investment banking
and international business
Syed Ali Sultan Group Head Treasury, capital markets and
financial institutions
Aasim Wajid Jawad Head Strategy
Khawaja Muhammad Ahmad Group Head Operation and corporate services
Mohib Hasan Khan CIO
Mian Ejaz Ahmad Company Secretary, Group head legal and
corporate affairs
Tahir Khurshid Head Audit and Inspector Group
Muhammad Yahya Khan Group Head Digital Banking
Haroon Khalid Head Compliance and Control
Bashir Ahmed Sheikh Group Head Special Assets Management
Auditors KPMG Taseer Hadi & Co.
Levels of Management

Management directs towards the unique procedure of successfully and productively getting
exercises finished with and through other persons. It is a procedure by which certain fundamental
capacities that are arranging, driving and controlling are performed to accomplish the coveted
destinations of the company. These capacities are being performed at three steps in Bank Al
Falah:

Board Of Directors

The major and fundamental choices are made by top managerial staff on the grounds that at the
highest point of the human asset progressive system sits the Board of Directors and The
Executive Committee. The most critical assignment of this dimension of administration is vital
arranging, deciding the objectives and destinations and to plan the arrangements at Bank AL
falah these choices are made in an approach to expand the generosity and fulfillment of
employees and clients

Top Management

Top management for the most part includes technique detailing, specialized arranging, deciding
how to take care of business and control. Top managers and BM are incorporated into this
dimension. They characterize and translate the targets and vision and afterward define
approaches for various branches in various topographical territories.

Middle Management Supervisors and Employees

Division heads establish this dimension of administration at Bank Al falah. They are in change of
arranging and controlling the exercises of officers. At last, the worker’s initiates are observed
and controlled by the coveted targets of the association.
Hierarchy of Bank Al Falah ltd
Branch level Hierarchy

Branch
Manager

Manager Manage
Operations Credits

Credit
Officer

IT
Operation CRO Accounts Coordinator
Officer officer

NLI Staff
Chief Teller

Teller
Internship Activities

In 6 weeks of internship i worked in the following departments of Bank:

 Foreign Trade Department

 Account opening
 Credit department
 Clearing department

Foreign Trade Department:

This department plays a vital role between the buyer and seller for the purpose of import and
export across the boundaries of the country. The bank’s role in this situation is as middle man or
intermediary. The document which is used as evidence or you can say for undertaking called
Letter of Credit which involves buyer and sellers mutual consent there terms and condition
relation to the time, delivery, goods, payment etc.

 I have learnt the following tasks or things like

 Purpose of this Department
 Importance of letter of credit
 Use of letter of credit
 How to take rate from the treasury
  Deal with the clients on telephone
 How to fill the I-Forms
 Open the LC
 Usage of the stamps on forms

Accounts Opening:

There are four major accounts that are introducing by the Al falah Bank:

 Current A/c
 Fixed A/c
 Saving A/c
 Salary A/c

I have learnt the following things

 Opened the account for which the following procedures are performing like

CNIC card

NTN

Form B is required in case of minor

o Source of income
o Personal Info
 o Address
o Next of Kin

In case of partnership account

o The partnership deep

o Directors CNIC
o NTN

In case of Company

o AOA of Co.
o MOA of Co.
o NTN

Zakat Declaration

 Locker opening

There are three types of lockers available in Bank

o Small
o Medium
o Large
o Free insurance facility

Also learnt about the use and issuance of ATM and Debit card.

Safe Deposit Lockers

Bank Al falah introduced the lockers for the purpose to save your jwellery, documents, money
and any worth able goods.

 Various sizes to look over little, medium and substantial.

 Annual locker lease ranges from Rs.2,000/ - to Rs.4,000/ - .
 Locker lease is postponed for clients keeping up a base store of Rs.2 million in current
record or above US $25,000/ - in a current record or US $50,000/ - in a bank account.

Locker Size Charges

Small Rs.2000/-

Medium Rs.3000/-

Large Rs.4000/-

Cash Department:

There is department who works under the accounts department for the purpose of cash payment
and cash receipts on the behalf of their customers

Consumer Banking

Your Bank Alfalah Credit Card is your accomplice all over the place and is comprehensively
acknowledged and invited at areas showing the VISA logo. It is acknowledged at almost 30
million areas in excess of 200 nations around the world and more than 27,000 Bank Alfalah's
foundations in Pakistan.
Alfalah VISA gives you a chance to pay for shopping, travel, excitement, suppers and
considerably more. Card individuals are encouraged through various advancements every now
and then. Also, there are various key business organizations with driving neighborhood and
global brands for buy of home machines at energizing Step-BY-Step (SBS) regularly scheduled
payment plan with free home conveyance at least loan fees. Striking highlights are:

 Electricity, Sui Gas, PTCL and Warid charges installment through 24 hour Call
Center and Auto Debit directions
 SMS for card utilization, smaller than expected explanation, installment receipt
affirmation, and so on.
 Cash withdrawal at all 1LINK ATMs
 Special offer on Warid post paid associations
 Surge presently to benefit incomparable highlights offered by Alfalah VISA.

Credit Department:

This department is responsible for the purpose to provide loan there are many types of loan. This
department deals with the clients of the bank for loans and interest rate this is the most important
department of the bank. They are following the Five C’s like character, capacity, capital,
collateral and conditions by following this process they assured the customer status for the
purpose of lending. There are three types of loan:

o Auto loan
o Personal loan
o Home loan

Clearing Department:

The clearing department involves the transfer of payments from one branch to another within
and outside the city the foundation is on the NIFT all the cheques financial services is providing
by the NIFT to the banks and charged their fees who are the enjoying the service of the NIFT.
Clearing is done just for the cross cheques and there are two types of the clearing inward and
outward & there are separate stamps of inward and outward.
There are also many department in Al falah bank that are given below

Remittance department:

For purpose to transfer funds from one account to another within the city or outside the city
through the following

Demand Draft

Pay Order

Pay Slip

HR Department:

All applicant screening, conducting test, appraisals, trainings, raise on salary etc all these tasks or
work done by the HR department of the company.

E Banking

When it comes to the E-Banking bank Al falah has its own prominent position in the market all
of their client or customers enjoying the facilities like sms alert, paying utilities bill, transferring
funds, payments, fees, mobile recharge through the online banking. The bank who is not
following the market trends and technology cannot be sustained in the market. Bank without
technology is like fish without water.

Financial Analysis

Ratio Analysis
A proportion investigation is a quantitative examination of data contained in an organization's
money related proclamations. Proportion examination is utilized to assess different parts of an
organization's working and money related execution, for example, its proficiency, liquidity,
productivity and dissolvability.
Current Ratio Liquidity:

CRL = Current Assets/Current Liability

CRL = 123786098/872091509

CRL = 0.1

It shows that the current assets of the bank is 0.1 times cover the current obligations of the
organization. Its normal percentahge in banking sector. Although higher is better.

Cash Ratio:

CR = Cash/Current liabilities

CR = 70381435/872091509

CR = 0.08

It shows positivity that bank has enough cash to meet its current liabilies in this ratio higher ratio
is better.

Total Debt Ratio:

TBR = Total asset - equity/Total asset

TBR = 588095542/628828828

TBR = 0.9

You have borrowed almost 90% portion of your assets in this case higher is better.

Cash coverage ratio:

CCR = EBIT + DEP/ Interest

CCR = 39434328/25389343

CCR = 1.5
It shows that the coverage power of the bank is very high and it is in the favour of the company
in this case or usual higher is better.
Vertical Analysis
Horizontal Analysis
SWOT Analysis of Bank Al Falah

Strengths

 Bank Al Falah is one of the prominent bank in the market of Pakistan. Following are the
strength of the bank
 Providing the best serives to its customers
 Low debt rate
 Received highly valuable awards for its service
 Offering high salaries as compared to the market
 They are applying TQM in their branches just for the sake of smooth working
 Introducing the Islamic banking which is really very popular and they are very strong in
it because of their backed ABU DHABI Group is doing very well
  Highly qualified and well experienced top management
 Unique products like alpha orbit
 Also introducing some sort of branchless banking like ALIF, BISP & EOBI
 Premium prize bonds
 Credit cards of Al falah are globally accepted in more than 100 countries
 They are also providing the services like home care and agriculture financing as
compared to their competitors
 They are now making the efforts in the field of entertainment like cinepex
 They are offering halal products

Weakness

 The majority of the people in Pakistan do not know about all of the products of the bank
Al falah so because of this issue they cannot take advantage from this.
 There is main issue in banking sector is the timings of the employees officially their
timing ends at 6 o’clock but because the work load they left their desks averaged at 8
O’clock.
 There are so many branches so it is really very difficult to maintain the same standards all
over the branches
 Lack of advertisement on Facebook
 They low in Islamic banking as compared to other
 Less products in Islamic banking
 Only one branch in overseas as compared to the competitors
 More job rotation reduce the capacity of the employees
 Long probations
 The number of counter in bank should be high because of the crowd of the customer they
do not like to wait.
 They are offering halal products but may be it is a weakness for doing business in west
Opportunities:

 Establishing foreign branch network

 Capitalizing on IT

 Growth in deposits

 Government patronage

 Growth in textile sector

 Tide down of money

 Expansion in branch network

 Enhance its profitability by making use of new technology.

 Has the opportunity to introduce new products and services.

 Can adopt E-banking and provide credit card facility to its customers.

 Good financial position creating a good reputation for future advances and huge
deposits

 Changes in social patterns, population, and lifestyle changes and in economical.

Mean people now thinking to deposit their money in such a sound Islamic bank.

 BAL should get the status of licensed Islamic bank, as in this way it can offer more
variety of specialized Islamic products to the consumers.

Threats

 Risk of new entrants in market

 Negative image of Pakistan
 Political instability
 High taxation
 Customers moving towards the Islamic banking
 Less interest of customers in conventional banking
  Expectations of general public are very high
 Popularity of Islamic banking

Problems encountered during internship

During my internship with BAL-IBD, I kept a close eye over bank’s operations and extracted out
some of the most important problem with this format of banking.

 The most important problem that I came across was that the bank has no separate
identity. It has no such license as a specialized Islamic bank to work independently.
Due to which, all the financial statement are prepared by consolidating conventional
and Islamic accounts. With such a status, it can badly affect the well being of the
institute because there is no such distinction in bank’s operations of Islamic and
Conventional Banking.
 With all the careful understanding of the Islamic products and their Hilal features, I still
believe that its products are not truly 100% Islamic products, which are totally free
from the nemesis of Riba. For instance, in ijarah a bank doesn’t advance the asset with
the same value or with minor profits. But in an attempt to cover its associated risks,
Bank charges a very high profit on it and that burden is shown in its rental payments.
 When compared to Conventional form of Banking, Islamic banking and its products
range and processes are very limited and curbed in scope. The reason might be due to
the over regulation of the industry to make it Riba free. This means that you can’t have
all the benefits and choices which are offered in conventional form of banking.
 The employees of BAL-IBD are underpaid which causes a complete dissatisfaction
among the employees with regard to the work and responsibilities assigned and the
compensation received in response.
 One reason of dissatisfaction among employees might be due to extra long work hours.
The stringent restriction placed on the arrival time of employees and no compensation
for their extra long stay at the office causes stress and dissatisfaction among employees.
  Most of the departments pile up their work, which causes extreme work load at the end
of the day and results in extra long hours at the office.
 The branch gets bombard daily with thousands of calls daily with such small queries
like Account Balances, Payment Transfer, and Cheque in Clearance etc. While
responding to such calls bank’s staff wastes a lot of time which it can utilize in better
areas. There should be systematic solution to answer such calls without wasting
precious time.
 At BAL-IBD there is a limited scope of marketing department and the efforts of this
department are limited to the extent of Business Development Purposes. There are no
efforts targeted towards creating awareness about its Islamic products however efforts
are usually targeted to promote the conventional banking channels.
 Also the grievance procedures are not very well established, as the employees often feel
hesitate while communicating up the hierarchy. They mostly find it difficult to
communicate their ideas to the Branch Manager or anyone up in the hierarchy.
 Employees assigned to various departments are limited in numbers and often gets
coupled with greater workload. For example, there was just one person assigned for the
finance and accounts department.
 Floppy disk, USB should not be allowed, Uninstalled in systems.

Recommendations:

By spending six weeks in the organization and the above SWOT analysis the following
recommendations:

Website

They have to put their maximum focus to their website because when comes to the user or the
customers it should be user friendly but you seen it, the first look of the web and the material is
not helpful. You can say that the site is not user friendly as compared to the competitors like
Mezzan Bank, Habib, Askari etc
Work load:

Division of work is really very poor on the employees of the bank. By doing this the capacity of
the employees become low, reduces the thinking power, ability to speak or confidence will be
damaged by the poor division of work. Bank timing ended at 6 O’clock but due to the unfair
division or the burden of work they left their desks at 8 or 9 O’clock.

Local Areas:

Bank Al falah is the one whose main focused is on the consumer banking but the thing which
should be noticed that the Al falah should open their branches in local or remote areas like Habib
Bank. When your main focus is consumer banking then this you never be ignored. Top
management should take some serious steps to improve branch numbers in rural areas.

Compensations:

The criteria of compensation is really very poor in Bank Al falah as compared to the competitors
the employees facing many problems relating to their appraisals, commissions, leaves, bonuses
etc. employees are the backbone of the organization the company should maintain their standards
to entertain their employees they must cared about them as they cared about their customers.

Net App:

They are focusing on the innovation side but the app relating to the consumer E Banking is very
poor or is not user friendly as compared to the mezzan who is the very first competitor of the
bank Al Falah. They should heir some professionals or focused on the it department for the
improvement.

Less female staff:

Female staff is really less in the branches of the bank AL falah by following the trends and equal
employee opportunity they should give proper or equal chance or right to the women to join or to
serve their organization. Nowadays no woman is less than a man in any professional field.
Improve the communication:

By spending a short time may I am wrong but my opinion about the communication between the
employees and superiors is very low and disturbing. Most of the staff feeling difficulty to
communicate with their boss by this it will create many managerial problems which is really
very difficult to recover.

Conclusion

I spent very healthy and professional time in the organization named BANK ALFALAH which
is one of the prominent Bank of Pakistan. It contributes a lot in the growth of the banking
industry. Everything is really very good, environment & staff specially my supervisor Yasir
Nasir CIU Officer in Bank AL falah his experience knowledge about banking and professional
helped me a lot. His opinion about the above mentioned recommendation is very positive like on
undivided work, poor website and communication issues. According to him all these issues are
always present in the banking organization but if you want to differentiate your company from
others you have to overcome from the above problems.

Al falah is a very competitive and competent organization their main focused is on the consumer
banking their portfolio is little bit low as compared to the competitors they should develop or
revise their product portfolio. Their step in entertainment industry is really very appreciating like
cinepax and the their famous credit card orbit is really very popular in all over Pakistan.

Nowadays no one can sustain in the market without following the market trends and technology
their step towards the e banking is really appreciating and encouraging. They are also providing
many types of loans. By following the above mentioned recommendations and rules and
regulation they can become the market leader of the banking industry in Pakistan.

BAL bargains in three noteworthy zones of managing an account, Personal, Consumer and
Corporate Banking. Larger part of the clients falls under the head of individual keeping money,
who visits bank for meeting their every day managing an account needs. Though the other two
heads targets both shopper and corporate customers needs.
So the BAL is at an extremely beginning stage and has every one of the elements of
accomplishment. With different contenders BAL administering the market of financing, a mess
of potential is developing and new participant are framing their way up into this dynamic market.
Be that as it may, given the accessible foundation it would be simple for these banks to contend
in the market. While later on, just that bank will have the capacity to adapt to the consistently
changing difficulties of saving money which will teach advanced managing an account
apparatuses with the created items and administration.

References: