Internship Report

Bank Alfalah Limited

Internship Report on BANK ALFALAH LIMITED Retail & Middle Market Central Area Lahore /*** Branch Internee's Name: *** VU Student ID: mc100200*** Session: Fall 2011 Submission Date: 13/01/2012 VIRTUAL UNIVERSITY OF PAKISTAN

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Bank Alfalah Limited

LETTER OF UNDERTAKING

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INTERNSHIP CERTIFICATE

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DEDICATION

I would like to dedicate the effort & struggle which I have made in the last 2 years since getting admission in VU to my beloved parents & my family, especially to my mother. It was looking impossible for me to complete this degree but with her sincere prayers and moral support today with the blessing of Allah I am submitting my internship report. I am thankful to Allah Almighty from the depths of my heart.

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ACKNOWLEDGEMENT
This was looking like an uphill task but with the endless blessings of Allah and the vital support from my parents I have reached this far. I am thankful to all the staff at Bank Alfalah for being so cooperative and kind. I would specially like to thank the very kind Branch Manager Mr. *** who was so supportive throughout my training. It has been a difficult period of my entire life but with the blessing of Allah and the cooperation of all the people around me I have managed to hang in there. I wish I had the words to express my feelings here. I would humbly thank Allah Almighty for what he has blessed me with. I would extend this special thanks to all the people who supported and helped me during the internship program. Thank you.

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Executive Summary
I was lucky enough to avail this chance of doing an internship at Bank Alfalah Ltd. *** Branch. This duration of internship was six weeks. During the training I was introduced to the functioning of all the departments operating in the branch. My report starts by discussing the brief history of banking in the human history. Some types of banks that are operational in the practical world are discussed briefly. History of banking industry in Pakistan follows that. Then the report discusses the overview of my internship organization. It illustrates the history of Bank Alfalah, its chairman & board of directors. Detail information about the bank's branch network comes next. The financial performance of Bank Alfalah from the year 2010 is presented. List of bank's products and services is also mentioned in detail followed by a brief introduction to its various departments. Detail of my internship learning experience comes after that. It contains the information that I was able to gather and understand regarding the activities of the bank. Risks which the bank is facing are also discussed & after that in the last portion of the report I have presented the conclusions which are followed by my humble recommendations for the improvements.

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Table of Contents

Brief Introduction of Banking Sector ---------------------------------------------- 4 Over View of Bank Alfalah ---------------------------------------------- 5 Bank Alfalah Hierarchy Chart ---------------------------------------------- 6 Message of The Chairman ---------------------------------------------- 7 Board of Directors ---------------------------------------------- 8 Vision & Mission Statement of Bank Alfalah ------------------------------------ 9 Bank Hierarchy Chart --------------------------------------------- 10 Introduction to Bank's Branches --------------------------------------------- 11 Business Volume of Bank Alfalah ---------------------------------------------13 List of Bank Alfalah Products ----------------------------------------------14 List of Bank Alfalah Services --------------------------------------------- 15 Bank Alfalah Competitors ---------------------------------------------- 18 Introduction to Bank Alfalah Departments -------------------------------------- 19 Comments on Organization's Structure ------------------------------------------- 21 Plan of Internship Program --------------------------------------------- 22 Training Program --------------------------------------------- 23 Critical Analysis -------------------------------------------- 27 Future Prospects of Organization --------------------------------------------- 29 Recommendations for Improvement --------------------------------------------- 31 Reference & Annex --------------------------------------------- 32

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Brief Introduction of the Banking Sector

The banking sector plays a very important and vital role in the economy of any country. Generally the state bank of a country is responsible for policy making and over seeing all the activities being carried out in the banks. A lot of sources say that the word bank is derived from the word "bancus". They reason that the early Jews used to sit on benches and did transactions similar to what are carried in modern banks today. In addition to that the functions of the earlier banks were quite simple but in this modern world we see that the banks perform a wide variety of functions. Their role is not just limited to depositing money or issuing loans to different people or organizations. We see that the commercial banks today are involved in buying and selling of shares, debentures & various stocks. They sell different types of securities, bonds and deal in foreign exchange. Every bank issues credit cards to its customers as well. As stated earlier a bank plays a very vital role in the economy of a country. It serves as a channel through which the borrowers borrow money from the savers. They utilize the money and earn a return on that which is paid to the bank. The banks after deducting their intermediate costs give the lenders their share. In this way all the parties involved in this transaction are benefited. Following are the types of banks that are generally present in a country. State Bank Every country has its state bank. Its name may be different in different countries for example in Pakistan it is known as the State Bank of Pakistan where as in the US it is called as the Federal Reserve Bank. The functions of the state bank regardless of its name are the same in every country. The most important function of the State Bank is to make an effective monetary policy of a country with the help of which economic stability prevails in the economy. It is responsible for printing of currency notes and gives loans to the government as well. It also makes rules and regulations for all the banks working in the country. It monitors their performance, audits & inspects them. If any bank is found involved in illegal banking practices then it has the authority to penalize the bank. Commercial Banks These banks are interested in making profit. They give loans to people in the business sector and earn profit on that. The business community of a country is an important customer and asset of such banks. Agricultural Banks Agricultural banks provide loans to the farmers depending upon their needs and requirements. In a country like Pakistan these banks have special importance as our country heavily depends upon agriculture. Satisfying and fulfilling the needs of the farmer is very important for the growth of our economy. Saving Banks Mostly these banks are state owned financial institutions which cater the needs of the savers. These banks offer various saving schemes to the people with the help of which they can earn a profit on their savings. National Saving Scheme is am example of such banks working in Pakistan.

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History of Banking in Pakistan

Before Pakistan came into being the Reserve Bank of India acted as the central bank for the entire indo-pak sub continent. Before partition there were a total of 44 banks with 631 branches in the territories of Pakistan & East Pakistan (Bangladesh). On August 14th 1947 partition of the Indian sub continent took place and Pakistan was created. On December 30th 1948 the British Government's commission distributed the reserves of Indian central bank between Indian & Pakistan with 70:30 ratio. India got 70% of the assets where as Pakistan got 30%. It is note worthy that the total losses of 230 million which the reserve bank had were also taken from Pakistan's share. Thus the financial activity in Pakistan technically started from negative. Quaid e Azam Muhammad Ali Jinnah took immediate steps to establish the State Bank of Pakistan. Due to these efforts the State Bank of Pakistan started its operations on July 1st 1948. However the Reserve Bank of India continued to perform important banking functions for State Bank of Pakistan until September 30th 1948. By the end of the year 2001 there were 43 banks working in Pakistan. After that there was a mushroom growth in the banking sector of Pakistan.

Over view of the Bank

Brief History of Bank Alfalah
This bank on June 21st 1992 was incorporated as a public limited company under the companies ordinance 1984. November 1st 1997 was the day when it's banking operations commenced. Bank Alfalah deals in commercial banking and other services associated with it as defined in the Banking companies ordinance 1962. The bank has almost 336 branches in more than 100 cities all across Pakistan. In addition to that it has branches in Bahrain, Bangladesh and Afghanistan. The registered office is at B.A. Building I.I Chandrigar Road Karachi. Since 1997 the management of the bank has implemented new strategies and policies to give the bank a distinct position in the market place. Bank Alfalah is owned by the Abu Dhabi Group. The management of the bank has invested a huge amount of money in new and revolutionary technologies to provide its customers with an extensive range of excellent products and quality services. The management of the bank is committed to strengthen its bond of trust with its customers and provide them with uninterrupted services. The management of the bank strives to serve its customers with the products and services according to their requirements. During the last five years Bank Alfalah has emerged as one of the foremost financial institutions in the country. There is an interesting attribute of bank Alfalah which is its Islamic banking branches through out the country. Thus in addition to that conventional banking practices if offers Islamic banking branches to its customers. Hence Bank Alfalah has two types of branches in Pakistan: 1- Conventional Banking Branches 2- Islamic Branches

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Bank Alfalah Hierarchy Chart

Chairman

Board of Directors

CEO President Group Heads

Regional Managers

Area Managers

Branch Managers

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Message of the Chairman

H.H Sheikh Hamdan Bin Mubarak Al Nahayan is the chairman of Bank Alfalah Limited. He is the member of UAE's ruling family. Following is presented his unedited message from Bank Alfalah's official web site. Since the inception of Bank Alfalah, by the grace of the Almighty, we have moved rapidly in expanding our branch network and deposit base, along with making profitable advances and increasing the range of products and services. We have made a break-through in providing premier services at an affordable cost to our customers. Keeping in view our valued clients and the need for constant and effective communication of information, we have designed this website to be as user-friendly as possible. As we pursue the path of excellence, customer satisfaction remains our priority. It is only when we know our customers better, can we deliver a higher quality of services, thereby adding synergy to our existing management expertise, financial strength and profitability. This is yet another channel of communication for the delivery of quality products and services that enhance value to our stakeholders. Thank you for visiting our site. H.E.Sheikh Hamdan Bin Mubarak Al Nahayan

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Board of Directors of Bank Alfalah

H.H Sheikh Hamdan Bin Mubarak Al Nahayan Mr. Abdulla Khalil Al Mutawa Mr. Abdulla Nasser Hawaileel Al-Mansoori Mr. Khalid Mana Saeed Al Otaiba Mr. Ikram Ul-Majeed Sehgal Mr. Nadeem Iqbal Sheikh Mr. Sirajuddin Aziz

Chairman Director Director Director Director Director Chief Executive Officer

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Vision Statement of Bank Alfalah

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

Mission Statement of Bank Alfalah

To develop & deliver the most innovative products, manage customer experience, deliver quality services that contributes to brand strength, establishes a competitive advantage and enhances profitability, thus providing value to the stakeholders of the bank.

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Bank Hierarchy Chart

Following is the hierarchy which is generally found in Bank Alfalah Branches.

Branch Manager Operations Manager

Head (incharge) of all Departments working in the branch

NIL Employees

Clerical Staff

Important to note is that Bank Alfalah has outsourced some of their tasks. These tasks include receiving the postal mail from the courier service, keeping the record of all incoming and outgoing mails, maintaining the attendance registers of employees, answering to telephone calls and all the work of a peon. All of these tasks are non financial. At present Bank Alfalah has an agreement with a local company and they go by the name of NIL who provide the bank with people to carry out these tasks. All these people work under the branch manager.

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Introduction of Bank Alfalah Branches As stated earlier there are two types of branches working in Pakistan. There are total of 336 branches of this bank in the country. Among them there are 256 conventional branches and 80 Islamic branches. The bank has its network of ATM machines in every branch across Pakistan. Following is the complete list of its working branches according to the Bank Alfalah Audited Report of the year 2010. Introduction of Bank Alfalah Headquarters The head quarter of Bank Alfalah is located in B.A Building on I.I Chandrighar road in Karachi. This road is like the wall street of Pakistan. The offices of major financial and non financial companies are located here. Branches of Bank Alfalah in PAKISTAN Following is the list of cities with operational branches of Bank Alfalah in Pakistan. Conventional Branches (non-islamic): City Karachi Hyderbad Sukkur Gawadar Jacobabad MirpurKhas Larkana Lahore Kasur Sarghoda Chak 111SB Gugrat Mardan Bahawalpur Dina Khanewal Jahanian Pir Mahal Depal Pur Narowal Lora Lai Bhakkar Kamoke Chinnot Daska Hafizabad Muzaffargarh Khanpur Branch(es) City 55 Manshehra 4 Bannu 1 Chitral 1 Gojra 1 Muridke 1 Jaranwala 1 Bahawalnagar 43 Islamabad 2 Rawalpindi 2 Jehlumn 1 MianChannu 2 Sheikhupura 1 DI Khan 1 Okara 1 Phalian 1 Charsada 1 Chillas 1 Jampur 1 Layyah 1 Muzzafarabad 1 Nowshehra 1 Qaboola 1 Saidan Shah 1 Abbotabad 1 Jhang 2 TobaTekSingh 1 Burewala 1 Kohat Branch(es) City 2 Fatehjang 1 Taxila 1 Wah Cantt 1 Hangu 1 Multan 1 Sailkot 1 RY Khan 14 Gugranwala 18 Sahiwal 1 Ghotki 1 Haroonabad 1 Hasilpur 2 Kharian 1 Gilgit 1 MingoraSwat 1 Chakwal 1 Bhalwal 1 Haripur 1 Dinga 1 Jahurabad 1 Mandi F'bad 1 Mianwali 1 Behra 1 Tala Gang 1 Pakpattan 1 DG Khan 1 Skardu 2 Turbat Branch(es) 1 2 1 1 8 3 1 2 1 1 1 1 1 2 1 1 1 1 1 2 2 1 1 1 1 1 1 1

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Internship Report Chichawatni Arifwala Chenabnagar Haveliah Dharki Lala Musa Ahmed Pur Rawat Islamic Branches: City Karachi Lahore Islamabad Rawalpindi Faisalabad Sargodha Gugranwala Multan Peshawar Sialkot RY Khan Branch(es) City 18 Gugrat 19 Dhudial 6 Pindi Ghaip 3 HasanAbdal 5 1 1 1 1 1 1 Bewal JalalPurJatta Khushab Sangla Hill SarariAlamgir Quetta Hyderabad Branch(es) 1 1 1 1 1 1 1 1 1 2 1 1 1 1 1 1 1 1 1 Sadiqabad MandiB'uddin Pishin Swabi Murree Sibi Waisa 1 1 1 1 1 1 1

Bank Alfalah Limited Battagram Chistian Shakargarh Wazirabad RenalaKhurd Kotle AJK Yazman 1 1 1 1 1 1 1

City Kot Addu Shah Kot Sukkar Kamalia Mailsee Mumtazabad Vehari Bahawalpur Kabirwala Abbotabad DI Khan

Branch(es) 1 1 1 1 1 1 1 1 1 1 1

Number of Employees of Bank Alfalah The staff strength of Bank Alfalah is presented below. These figures are official as they are taken from the Bank Alfalah Annual Audited Report of 2010. Description Number of Employees Permanent 6,876 Temporary/ On Contractual Basis 695 Bank's own staff at the end of the year 7,571 Outsourced 2,438 TOTAL 10,009

Business Volume of Bank Alfalah

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The members of UAE's ruling family in addition to the leading businessmen of UAE own majority shareholding of Bank Alfalah. It is note able that the bank has its investments in the communication sector and some segments of the financial sector, asset management and insurance. Now some important data from Bank Alfalah Audited Report of Dec 31st 2010 is presented as under: Description Total Assets of the Bank Total Liabilities of the Bank Net Profit (After Tax Deduction) In Pak Rupees '000 411,483,839 389,178,295 968,452

Following is given a comprehensive list which highlights the investments made by Bank Alfalah in the year 2010. Description Federal Government Securities Market Treasury Bills Pakistan Investment Bonds Overseas Government Bonds Sukuk Bonds Pakistan Dollar Bond Pakistan Euro Bond Fully paid Up Ordinary Shares/ Preference Shares/ Units/ Certificates Listed Companies/ Mutual Funds Un-Listed Companies Preference Shares-Unlisted Term Finance Certificates(TFC), Debentures, Bonds, Notes & Participation Term Certificates Listed TFCs Unlisted TFCs Sukuk Bonds Overseas Bonds Credit Linked Note Investments in Associate Companies Warid Telecom (Private) Limited Wateen Telcom Limited Alfalah Insurance Limited Alfalah GHP value Fund Alfalah GHP Income Multiplier Fund Alfalah GHP Islamic Fund Alfalah GHP Investment Limited Alfalah Securities Private Limited Product Line of Bank Alfalah 13 Investment in Pak Rupees '000 45,958,506 12,496,250 4,022,704 20,539,488 395,673 845,772 1.476,653 129,821 242,744

1,308,932 19,349,400 2,349,036 190,512 856,367 4,366,796 417,474 68,990 100,000 353,196 250,000 130,493 76,000

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(1)- List of Products Bank Alfalah provides various deposit accounts to fulfill the needs of its customers. The accounts are designed according to the requirements & needs of the customers. At present the bank is offering seven different types of accounts to the customers and these are briefly defined below: (i) - Simple Current Account It is a non interest bearing checking account. The minimum account opening requirement is of Rs. 5,000 only. If gives you the facility of Free Online Banking. The VISA Debit/ATM card can be used at over 30 million outlets and at 1.5 million ATMs across the world. There is no restriction on number of withdrawals and on number of deposits. (ii) - PLS Savings Account It is a Profit & Loss sharing saving bank account. The minimum account opening requirement is of Rs. 100 only. Profit on saving accounts is credited to the customer account on half-yearly basis. The Debit card can be used to withdraw cash and make purchases at thousands of outlets across Pakistan which provides access to funds 24 hours a day. There is no restriction on number of withdrawals and number of deposits. (iii) - Royal Profit Account (RP) The minimum deposit requirement is of Rs. 50,000 only. Higher returns on higher balances. There is no restriction on number of withdrawals and on number of deposits. Debit card can be used to withdraw cash and make purchases at thousands of outlets across Pakistan which provides access to funds 24 hours a day. Profit is credited to the customer account on monthly basis. (iv) - Basic Banking Account (BBA) The initial deposit for account opening is of Rs. 1,000 with no minimum balance requirement. It is a non interest bearing checking account. Maximum 2 deposits & 2 withdrawals through cheques are allowed. Debit card can be used to withdraw cash and make purchases at thousands of outlets across Pakistan which provides access to funds 24 hours a day. There is no restriction on ATM withdrawal. (v) - Alfalah Kifayat Account Any Pakistani resident can open this account. This account is for individual/joint customers only. Other customers like companies, corporate etc are not eligible for opening of this account. Cheque books, VISA, Debit Cards are issued to the customers.

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There is no restriction on deposits or withdrawals. Minimum account opening balance of Rs. 10,000 only is required. Online banking facility is also available. (vi) - Alfalah Mahana Amdan Account This account is signed with a contract of 3 years with the bank. Minimum placement limit is Rs. 100,000/- and maximum placement limit is Rs.15,000,000/-. Expected Rate of profit is 10% Per annum. Profit will be automatically credited on the 1st working day of each month into customers Current/PLS/RP/BBA account. Free Personal Accident Insurance coverage up to the deposit amount or Rs. 1,500,000/- whichever is lower. Customer can avail financing facility up to 90% of the deposit(as per banks policy) Any Pakistani resident over the age of 18 can open this account. (vii) - Alfalah Kamyab Karobar This account is designed for the businessmen. The minimum account opening balance of Rs. 25,000 only is required. This account is strategically divided into three tiers which are Silver, Gold and Platinum. The unique tier based structure ensures that the customers can avail smooth & cost efficient facilities based on their current level of deposits i.e. Higher the deposit, higher the number of free services. Some of the services are Free Online Transactions Free Pay order /Demand Drafts Free cash deposit across Pakistan SMS alerts on VISA Debit/ATM Card Gold VISA Debit/ATM Card with every account. (2)- List of Bank Alfalah Services (i) - Currency Exchange Bank Alfalah offers the facility of foreign currency being exchanged to local (Pakistani) currency. This comes under the foreign exchange department of the bank. (ii) - Lockers Bank Alfalah provides safe deposit locker facility to its customers for safe keeping of their valuables like documents, securities and jewellery etc. Lockers are present in various sizes. They range from small, medium to large. Annual locker rent ranges from Rs.2,000/- to Rs.4,000/-. Locker rent is waived for customers maintaining a minimum deposit of Rs.2 million in current account or above US $25,000/- in a current account or US $50,000/- in a savings account. (iii) - Remittance Through Bank Alfalah's international correspondent banking relationships it provides direct and indirect foreign currency remittance facility around the world. 15

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(iv) - Hilal/Debit Cards Bank Alfalah offers it customers with Hilal VISA cards that are accepted at all ATM machines around the world. These cards are based on Islamic and not on the conventional credit card rules. (v) - Credit Cards Bank Alfalah offers its customer with four types of conventional VISA Credit cards. These are namely: Platinum Card Titanium Card Gold/ Classic Card Supplementary Cards (vi) - Home Loans Under this category Bank Alfalah at present is offering the following products. (1)- Buy Your Home Bank finances from 0 to 70% of the value of the property. Repayment period ranges from 3 to 25 years. (2)- Build Your Home Bank provides you 100% of the construction cost in addition to 60% value of the plot. Repayment period ranges from 3 to 25 years. (3)- Renovate Your Home Financing of Rs. 3.50 million or 40% value of the home to be renovated. (4)- Start It Together Financing for buying a constructed house designed to assist professionals who wish to buy a home early in their careers. (5)- Easy Transfer 100% finance on the existing finance. Repayment period may be stretched to 25 years. (vii) - Auto/Vehicle Loans Any one can apply for auto loan at bank Alfalah if he is having income from following sources: Employment (Permanent/Contractual) Business (Partnership/Proprietorship) Co-Borrowers Income (Clubbing of Income) Features of the Auto Loan Plans: Quickest processing & Turn Around time in the Market Minimum Documentation Requirements Variable & Fixed rates to cater to every Budget No Termination Charges on car Replacement Discounted Insurance Rate with Free Tracking Device

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Bank Alfalah Limited Balloon payment Options Deferred Insurance & Registration Charges 150 Cities Existence

(viii) - Alfalah Agri Finance Bank Alfalah Limited acknowledging the vital role of agriculture in the economic development of Pakistan has designed Rural Finance Program named as "BANK ALFALAH ZARIE SAHULAT". The product is designed to cater for multiple financing requirements of our farming sector. Following are the products of this scheme.

Alfalah Poultry Zarie Sahulat Alfalah Dairy & Livestock Zarie Sahulat Alfalah Fisheries Zarie Sahulat Alfalah Silos/ Storage Zarie Sahulat Alfalah Marketing Zarie Sahulat Alfalah Agri Industrial Zarie Sahulat Alfalah Lease Zarie Sahulat Alfalah Bills /Guarantee Zarie Sahulat Alfalah Musalsal Zarie Sahulat Alfalah Tractor and Transport Zarie Sahulat Alfalah Machinery & Equipment Zarie Sahulat Alfalah Aabpaash Zarie Sahulat Alfalah Islah-e-Araazi Zarie Sahulat Alfalah Paidawari Zarie Sahulat (ix) - SME Alfalah Karobar Finace (AKA). A Running Finance facility is available between Rs 0.50M to Rs 20.0M. The purpose of the AKF is financing procurement of raw material, finished goods and receivables of SME businesses. Alfalah Milkiat Finance (AMF). It is a unique long term financing facility offered to SMEs to purchase, renovate or expand their business premises. It is being offered keeping in mind requirements of the small business owner who needs to take his/her business to the next level. (x) - Leasing Finance The leasing financing facilities are available for a variety of assets, both local or imported confirming but not limited to the following. Vehicles ( Private & Commercial) Plant, machinery & equipment CNG equipment Generators ( Industrial & commercial)

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Competitors of Bank Alfalah Since 2000 there has been a mushroom growth of the banks. A lot of well reputed foreign banks have opened their branches in Pakistan as well. One way to look at the competitors of Bank Alfalah is to consult the Banking Statistics of Pakistan report by the State Bank of Pakistan. Following statistics are taken from the latest report of year 2010 published by the State Bank. Bank National Bank Habib Bank Ltd. UBL MCB Allied Bank Ltd. Bank Alfalah Ltd. Standard Charted Askari Bank Ltd. Bank Al Habib Habib Metropolitan Faysal Bank Ltd. NIB Meezan Bank Soneri Bank Total Assets in Thousands 1,035,024,680 924,699,403 698,784,979 567,552,613 449,931,526 411,483,839 321,922,977 314,744,552 301,552,461 252,210,652 185,343,708 164,350,039 154,752,425 108,105,678 Profit After Taxes in Thousands 17,563,214 17,034,380 11,159,930 16,873,175 8,225,332 968,452 3,605,615 943,177 3,602,161 2,818,038 1,213,890 -10,112,114 1,649,588 125,440

According to this latest available information from the State Bank's report it is clear that National Bank leads the market both in terms of assets and net profit for the year 2010 with Habib Bank following closely behind. Bank Alfalah holds 6th position as far as the assets are concerned. It has passed Standard Charted and has close competition with Allied Bank. However it is note able that its profits are less as compared to other banks and there is a reason that why they are less. Abu Dhabi group has heavily invested in the Telecommunication sector of Pakistan. Warid Telecom and Wateen telecom are the owned by the Abu Dhabi Group. Now these two sister companies are not making the expected profits. Thus money is taken from the profit of Bank Alfalah. If measures are taken in the sister companies to reduce the losses then the profits of Alfalah will definitely rise. Also note able that NIB bank was the only one to face financial loses in the year 2010.

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Brief Introduction of All Departments Bank Alfalah has a number of departments in a branch however it is possible that a specific department may not be present/ offering its servicing in a branch. For example credit card department may not be present in a branch. Following is the brief introduction of the departments of Bank Alfalah at its Shadbagh branch. Account Opening Department This Department is responsible for the opening and closing of all sorts of bank accounts. This department mainly comes under the general banking facilities being provided by the bank. The process of opening an account starts by filling out a form and submitting your CNIC. The form demands to input information like the person's name, DOB, address etc. A person can fill the form according to the type of account he wishes to open at the bank. Alfalah generally offers three types of accounts which are: 1- Accounts for Individuals 2- Accounts for Partnerships 3- Accounts for Companies Remittances Department Remittance means the transfer of funds from one account to another or from one city to another city. All banks charge a fee on such transfers and so it is a source of income for the banks. The instruments which are used for transferring money are: 1- Pay Order 2- Demand Draft 3- Rupee Traveller's Cheques 4- Call Deposit Receipt Clearing Department In the clearing department the transferring of funds is done. The transfer of money/ funds may take between the same banks or between different banks. Clearing is done for cross cheques in the following two ways: 1- Inward Clearing The inward clearing takes place when Bank Alfalah's account holder draws a cheque in favour of a non Alfalah's customer. The cheque is sent to the cheque issuer's branch for clearing. 2- Outward Clearing These are the cheques from other banks (other than Alfalah) that are in favour of Bank Alfalah's customer. It is note able that "same day clearing" takes place for local cheques. The cheques presented belonging to the banks located in the same city are cleared on daily basis. Where as the "inter city clearing" takes place between two branches of banks located in

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different cities. At bank Alfalah the customer is charged the courier fee when he presents cheques that fall in the inter city clearing category. Credit Department The core activity in commercial banking is providing loans to people who have a legitimate running business. The reason that this activity is considered to be vital is its potential to generate revenue for the bank. Once all the investigation and back ground checks are done at the branch level then the loans is sanctioned from the head office of Bank Alfalah in Karachi. The two types of credit facilities offered at bank Alfalah are: 1- Funded Credit Line In this facility the loan which is approved is physically given to the customer. He obtains the funds which can be used thence forth. The products in this category are: Alfalah Karobar Finance (AFK) Alfalah Malkiat Finance (AMF) 2- Non Funded Credit Line In this form the funds are not given to the borrower. This form of credit has two types which are: (a) Letter Of Credit Letter of credits or more commonly known as LC's are used for the international trade. The LC is a written undertaking by the issuing bank given at the request of a buyer to the seller that the payment of the stated money would be done in a specific duration of time as long as the terms & conditions are followed. (b) Letter of Guarantee The letter of guarantee is the bank's guarantee given to an organization on behalf of its customer. This type of guarantee letters are generally used in the bidding and tender filing processes. Following are the types of these guarantees: Big Bond. This bond is filled when the tenders are being filled. Thus this bond states that if the company (giving the bond) is given the contract then it would definitely start the work on the project. Performance Bonds. These bonds are only issued if the applicant is given the tender. If the tender gets approved in the applicants favour then these bonds are given as a guarantee to the beneficiary that the applicant would perform his work on the contract according to the specified time limit/ period. Trade Finance Department This department controls trading, the sort of trading that takes place across the borders of the country. All the trade i.e. import and export trades are facilitated with the help of this department. Now in order to buy things from another country the LC is used. LCs are a safe mean for making payments to a person living in another country. Important to note that the LCs are issued against securities (properties, pledge, stocks etc). After the verification of these securities the credit is approved to the applicant and the LC are given by this department. Accounts Department

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This particular department is at the back end of the organization but it performs a list of vital functions. These functions include generating the following types of reports: Statement of Account Activity. Report of the activity of all the accounts at the branch. Statement of Profit & Loss. Income/ Expenditure report of the branch. Statement of Affairs. Report of Assets & Liabilities of the branch. Making Budgets of the branch. Calculations of Revenues & Expenditures of the branch. Storage of All the records, reports & all the data of the branch.

Payments of branch liabilities like the utility bills and other expenses incurred is also done by this department once the manager approves a transaction. This department does activity checking as well which includes the following four stages: 1- Collecting all the vouchers from all departments 2- Sorting Vouchers on the basis of their types/ categories 3- Checking Activity with respect to Statement of Account Activity 4- Packing of all documents is done finally. Comments on the Organizations Structure This particular organization has a hierarchal structure. The head who leads bank Alfalah is Sheikh Hammad. He is the chairman of Bank Alfalah. The board of directors include business men from the UAE. As we know all the planning is done by the board of directors of any organization, similar is the case with Alfalah. All the policies are made at this level. Then comes the "top management" of Bank Alfalah. The person who leads this level is referred to as the CEO. This level of managers is responsible for supervising all the staff of the branches according to the bank's strategies for different departments. Following is the list of people and their departments that form the top management of bank Alfalah. Mr. Atif Bajwa CEO Mr Shakil Sadiq Chief Operating Officer Mr. Muhammad Yusuf Chief Risk Officer Mr. Ijaz Farooq Group Head Islamic Banking Mr. Adnan Anwar Khan Group Head Retail & Middle Market, Central Mr. S.M. Talib Rizvi Group Head Retail & Middle Market, North Mr. Shahab Bin Shahid Group Head Retail & Middle Market, South Mr. Arfa Waheed Malik Group Head Corporate & Investment Banking Mr. Adil Rashid Group Head Consumer Finance Mr. Yasar Rashid Group Head Audit & Inspection Mr. Nadeem Ul Haq Group Head Admin, Technology, System & Operations Mr. A. Wahid Dada Group Head Operations Mr. Zahid Ali H. Jamall Chief Financial Officer Mr. Imtiaz Ahmad Sheikh Chief Information Officer Mr. Ather Shehab General Manager Management Services Division Mr. Hamid Ashraf General Manager Legal Affairs Division,Company Secretary Mr. Sajan Hamid Malik General Manager Credit Division

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Bank Alfalah Limited

Mr. Shahid H. Kazi General Manager International Business, Marketing, Product Development & Business Initiatives Mr. Haroon Khalid General Manager Risk Management Mr. Riaz Hussain Hamdani Chief Compliance Officer

Plan of Internship Program Brief introduction of the Internship Branch This particular branch of Bank Alfalah is located at *** Lahore. The branch lies in the Retail & Middle Market Central Area according to Bank Alfalah's strategic division of Pakistan. This branch was opened about 7 years back in order to capture the market share of the huge customer base of the "***" located in *** Lahore. A lot of commercial banks were already present in that area so Alfalah's management decided to open its branch immediately. This branch started its operations with a minimum number of departments. The idea was to penetrate in the market, create a good will and capture the market share. So far according to the bank's internal sources the branch has reached its targets successfully and there are plans to increase the number of departments and branch employees. This upon the inspection of the branch looks true as there are renovations going on at a rapid rate. New offices and customer booths are made to accommodate customers & their requirements for the future. Starting and ending dates of the internship I started my internship program on 22nd of November 2011. Saturday's were not off at this branch of Alfalah so I had to participate 6 days of the week from 9:00 AM to 5:00 PM in order to complete my six weeks internship program. The internship program ended on the 2nd of January 2012. However I spent an additional 7th week in the HR department of the bank. Name of the departments where internship was done Detail of Department(s) Attended by the Internee during the Internship Program Duration Sr # Name of the Department From (Dates) To (Dates) 1 2 3 4 5 6 7 Account Opening Department Clearing Department Remittances Department Trade Department Credits Department Accounts Department HRD 22/11/2011 29/11/2011 6/12/2011 13/12/2011 20/12/2011 27/12/2011 4/1/2012 28/11/2011 5/12/2011 12/12/2011 19/12/2011 26/12/2012 3/1/2012 9/1/2012

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Training Program
I started my internship in the account opening department at the bank. This particular department comes under the general banking facilities provided by the bank. I was introduced to the seven different types of accounts which could be opened at Bank Alfalah Shadbagh Branch. The accounts namely are: Simple Current Account PLS Savings Account Royal Profit Account Basic Banking Account Alfalah Kifayat Account Alfalah Mahana Amdan Account Alfalah Kamyab Karobar

The features of all of these different accounts are listed under the Product Line of Bank Alfalah of this report. Now the basic requirements for opening an account are as follow. The basic requirements for opening an individual account are: 1-CNIC 2-Source of Income 3-National Tax Number (optional) 4-Letter from person's employer The basic requirements for opening partnership account are: 1-CNIC of the Partners 2-Partnership Deed 3-National Tax Number Certificate (optional) 4-Company's Letterhead The basic requirements for opening a company's account are: 1-CNIC of Director(s) 2-Article of Association 3-Memorandum of Association 4-National Tax Number Certificate (optional) 5-Company's Letterhead This department is responsible for generating the Bank Statements which reveal the account activity of any account. In order to obtain the bank statement the account holder has to come and fill a form. Some people call the bank and inquire their account balances. Normally such queries are not entertained over the phone unless the bank's representative knows the person calling is the account holder and not some one else. 23

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Such information is not disclosed to any one else except for the account holder. The bank officer may ask questions like the person's date of birth, his contact numbers, current residential address and the address mentioned in the account information to make sure that the person calling is genuine and not some one else trying to gain the financial information. If an account holder wants the payments on the cheque he has issued to be stopped then he has to contact this particular department of the bank. The person can inform the bank about a particular cheque number on which he desires to stop the payment. In such way no payment is done against the cheque as soon as the department is informed. Additionally suppose a person has lost his cheque book then he can inform the bank to stop the payments on all the cheque numbers from the cheque book that was issued to him. This also stops the payments on those cheques as soon as the department is informed. My Activities in the Account Opening Department After obtaining all the necessary information I was told to adopt the role of an account opening officer and deal with another bank official who was playing the role of a customer. I tried my best to answer all the questions asked by the customer and guide him in the best way I could regarding the account opening process in the bank. My performance was rated as reasonable by the account opening officer. At a later stage I helped a customer organize the required documents for account opening and even helped him fill out the form as it was to be filled in English language. I also gave information about the benefits of "Alfalah Kamyab Karobar" account to some existing customers of the branch as well. The next was the clearing department. I was informed about the clearing process of cheques which the bank receives on daily basis. Important to note is that the process of clearing takes place through the clearing house of the State Bank Pakistan. National Institute of Facilitator Technologies (NIFT) is used for the process of clearing by the State Bank. The inward clearing takes place when Bank Alfalah's account holder draws a cheque in favour of a non Alfalah customer. The cheque is sent to the cheque issuer's branch for clearing. The events in the inward clearing takes place as follow: 1 Bank receives the cheque through NIFT 2- Clearing Department verifies the cheque, if every thing is found to be true then the cheque is posted in the bank system & customer's account is debited. Otherwise if some thing is found wrong then the cheques are returned. 3- The details of the cheque are registered in the out ward return of inward clearing register and the cheques are delivered to NIFT. In case of outward clearing the cheques presented are from other banks (other than Alfalah) that are in favour of Bank Alfalah customer. The events in the outward clearing are: 1- Cheques are received by the Bank. 2- The customer to whom the cheque was drawn is credited. 3- The cheque is stamped and sent to the issuer's bank through NIFT. In case of the online clearing the cheque is collected by the bank. The cheque is drawn in favour of a bank Alfalah customer. The cheque is then sent through NIFT for

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outward clearing. When the cheque gets cleared then the money is transferred via the online system of computers. My Activities in the Clearing Department I got a chance to call a few customers of the branch over the phone to let them know that the cheque which they had deposited a few days back has been cleared i.e. the funds according to that cheque have been transferred to their accounts. This activity was fairly easy. I asked a few questions regarding the identity of the customer, upon receiving positive response I simply delivered the information to the customer that money is transferred to his account and it is available for him to use. In the remittances department I was introduced to the various instruments that were being used to transfer funds from the branch to other banks. Pay order is an instrument which is used to transfer money with in the same city. The customer has to fill a form giving all the necessary information about the place where the money has to be transferred, his name, contact details etc. The payment for the pay order can be done both through cash or by cheque. Demand Draft is an instrument through which money can be sent outside the city. Outward DD is used to transfer money outside of the city where as inward DD are presented by customers to collect money from a branch. Now when the money is sent from outside the country it comes under the foreign exchange department of remittances. This department of remittances is not operational at the Shadbagh branch of Alfalah. However the services of sending money outside the country through money gram are available. Call deposit receipts (CDR's) are used by people to submit money in favour of a beneficiary when they are bidding for tenders. If the tenders are approved in the favour of a person then the money is used by the beneficiary otherwise the CDR's are returned to the issuer who later deposits them in the bank to get their money. The rupee travellers cheques (RTC) is another form to carry money safely. Rather than carrying cash people can carry these RTC which are issued in the form of certificates by Bank Alfalah. These certificates are accepted at major stores, hotels, travel agents all across Pakistan. My Activities in the Remittances Department This department at Bank Alfalah Shadbagh Branch is responsible for issuing new cheque books to the account holders. Upon receiving the new cheque books the customer has to either sign or put his stamp on the new cheque book. The stamps are used if the account is opened in the name of a company. I guided a few people who wanted to collect the new cheque book on the original account holder's behalf. I explained that the original account holder has to come in person and collect the cheque book himself and it is not possible to collect the cheque book on his or her behalf. I also got a few cheque books stamped by the customers and handed them over their new cheque books. Once I helped the customer regarding the information of cheque book charges. He wanted to know the price of a single cheque which Alfalah charges from its customers. While conveying the information he desired additionally I explained to him the different cheque books according to the leaves (cheques) & their charges which Alfalah charges from its customers. The trade finance department acts as a bridge between the importer and the exporter in a practical world. The type of financial instrument it issues is helpful in settling the payment between the two parties. The main activities which this department handles are the imports and exports. The letter of credit (issued by this department) facilitates the

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payment between the importer & exporter and the bank charges its fee on it. Bank Alfalah has added more than 81 banks around its network since 2001 and thats the reason the LC issued by Alfalah is acceptable to approximately 100 countries around the world. The records of all the transactions taking place through the letter of credit are kept at the State Bank of Pakistan. My Activities in the Trade Finance Department I was able to go through some old LC's that were shown to me. I was explained about the format of LC that is used in the organization. I even prepared a LC according to that format while given with hypothetical values assuming a real life situation. The credit department of Bank Alfalah deals with the small and medium scale businesses. I was informed that the bank has adopted a very aggressive strategy in this department. They are working closely with the business men that own either small or medium scale companies. It is discussed in the Introduction of Departments section of this report about the types of credit facilities Bank Alfalah is providing to its customer. In the funded credit facility the money is physically given to the borrower with him signing a contract with the bank according to which he will repay the money to the bank. Malkiat Fiance & Karobar Fiance come under this category. 1Alfalah Milkiat Finance (AMF) AMF is a unique long term financing facility offered to SMEs to purchase, renovate or expand their business premises. It is being offered keeping in mind requirements of the small business owner who needs to take his/her business to the next level. The mandatory requirement is that your business must be 3 years old. The amount of loan obtained ranges from 0.5 Million to 3.5 Million Pakistani rupees. Money obtained up to 3 Million can be repaid from 2-15 years but money obtained beyond 3 million must be repaid between 2-4 years. 2Alfalah Karobar Finance (AFK) AFK is a financing facility between Rs 0.50M to Rs 20.0M. The purpose of the AKF is financing procurement of raw material, finished goods and receivables of SME businesses. Now there are other two types of financing facilities available but that are not for SME. These two facilities are: 1Alfalah Quick Finance (AQF) It is a personal loan against National Saving Certificates, Prize Bonds, Alfalah GHP Principal Protected Fund & PKR/FCY deposit for meeting personal, family and household needs. It is one year revolving limit with quarterly mark-up payments. The amount of financing under AQF ranges from Rs. 50,000 to 2.5 Crore. 2- Alfalah EEZEE Finance A Running Finance Facility for individuals for meeting their personal, family or house hold needs. The amount ranges from Rs. 3Lac to Rs. 10Lac. In order to get the loan a residential property or plot which is acceptable to bank is required. My Activities in the Credit Department In this particular department I got a chance to talk with some customers and explain to them the features of the funded credit facility that was being offered at the branch of the bank. I was able to explain the features & benefits of availing the facilities of Alfalah

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Karobar Finance & Alfalah Malkiat Finance. The typical questions which the customers used to ask was how much credit would be available to them and what was the maximum amount of time which they can avail to repay the money to the bank. According to my experience & observations almost no one was interested or bothered about the interest rate on the credit. My Activities in the Accounts Department I assisted the officer of this department while sorting all the utility bills of the branch in a file. Activity of sorting all the vouchers from all the departments of the branch was also carried out by me with the help/ guidance of the officer. I regularly used to carry documents that were to be approved by the branch manager, once he signed them I brought them back to the officer of the accounts department. Critical Analysis Risk framework of Bank Alfalah Almost all of the banks explain their risk management framework in their annual reports. Management of risk is a core function of banking business. The reason is that it performs vital activities of measuring, monitoring, controlling and reporting credit, market, liquidity and operational risks. According to the Annual Report 2010 of Bank Alfalah the economic and security situation witnessed by Pakistan during 2010 demanded further strengthening of the Bank's internal risk and management controls through a renewed focus on special asset and portfolio management. In order to be in a better position to respond to all the challenges faced by the bank and to effectively monitor and control the resulting shocks the Risk Management Framework was revitalized through integrated risk management approach for managing credit risk, market risk, liquidity risk and operational risk. A dedicated Risk Management Division (RMD) is in place with the General Manager of RMD department reporting directly to the Chief Executive Officer. Risk Management Division has been structured to address credit, market, IT and operational risk. This division consists of highly capable people. Additionally the Board of Directors through its sub-committee called "Board Risk Management Committee (BRMC)" oversees the overall risks faced by the bank. Risks faced by Bank Alfalah The banks face a number of risk during their operations however there are a certain number of risks that are considered to be the main types of risks. Bank Alfalah is no exception to that as it also faces the same types of risk faced by other commercial banks in the market. These main risks are: 1- Credit Risk. Risk from the borrower as he fails to repay the money to the bank. 2- Liquidity Risk. Risk than a security/asset cannot be traded in a quick time frame in the market. 3- Market Risk. Risk of the reduction in value of a portfolio due to market conditions. 4- Operational Risk. Risk due to the transactions of the business. 5- Reputation Risk. Risk of the bank loosing its repute among the customers. Branch Risk of Bank Alfalah The management of the bank have made their best efforts in terms of planning and constructing all of their branches safe and secure from all sorts of threats. All of the

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branches have a single entry/ exit system which is supported by walk through gates that scan a person for any weapons. Security system in the Branches Alfalah has an agreement with Phoenix Security Systems who provide the bank with armed guards who protect the staff/ customers and all the valuables of the bank. In addition to that CCTV cameras are installed at all possible points which record the footage of the activities in the bank. Walk through gates are installed at the entry points for metal detections. In addition to that the security guards also check the people coming in the bank with their metal detector scanners. No parking of vehicle is allowed in front of the bank for security purpose. The cash department is given special importance as they have liquidity at all times. The cash department is always behind a glass wall which protects the staff and the liquidity. Generally a master alarm is also installed in the bank which is connected to the local law enforcement agencies and it can be used in case of emergency. Phoenix also provides the services of an armored car to all the branches of the bank. This vehicle is used to transport cash to the head offices in an area. The ATM Machines are specially installed in a room which is well protected. The customers only have access to the user interface of the machines. Breaking into the ATM machine required breaking the wall which is not possible at any time since every ATM machine is assigned a security person who guards the machine at all times. All the branches are well guarded by the security personal at nights as well. Management Information System Bank Alfalah uses its MIS to generate large volume of reports and data on daily basis. It utilizes the total branch computerization software packages to carry its transactions. These softwares dont accept any data packets from outside the network of Bank Alfalah. All the transfers of data packets takes place with in the bank Alfalah network even the e-mail system is such that it works only on the domain of Bank Alfalah, no bank employee can send an email to any other domain neither he can receive any message from another domain. Thus it is a very safe system. Every branch has its own IT department which provides technical support to the branch computer network. With the help of this system all the data is updated on daily basis and is sent to the area head quarters. This MIS contains all the necessary functions which are required for modern day banking business. User friendly interface makes it easy for bank employees to use it in the most efficient way. Employees Integrity If the employees in the bank are not working according to the code of conduct specified by the management then the organization will fail to achieve its goals. The management of bank Alfalah understands this important concept. The competition and the competitors are tough so it is extremely important that the bank employees adhere to good moral and ethical principles and perform their roles with honesty. Bank Alfalah promotes and practices transparent and honest work behaviour for all its employees. The sense of responsibility inculcated in every member of the organization demands impeccable and intact work ethic system. Systematic Risk As stated earlier that management of Bank Alfalah has made its risk control framework even stronger because of the financial conditions in Pakistan during the year 2011. It is true that the systematic risk is often beyond the control due to the macroeconomic

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factors such as inflation, interest rates, tax changes etc which change for the entire market. However at Bank Alfalah now there is a Risk Management Division (RMD) in place with the General Manager of RMD department reporting directly to the CEO. Additionally the Board of Directors through its sub-committee called "Board Risk Management Committee (BRMC)" oversees the overall risks faced by the bank. As this risk is largely beyond control so the management has to adopt the reactive approach in order to deal with the situation when the changes will occur. The conditions will change for every one in the banking business so the appropriate department after analyzing the situation will make necessary changes in the bank polices and practices. Un-systematic Risk During my internship program and my experience of talking to the employees I was not able to spot any risks that were unique to that particular branch of the bank or to the whole organization. The employees looked satisfied and happy with the working environment and all the facilities which the bank had provided them. So there is no such risk of a strike or any thing similar. The bank's management makes rules that suit their employees. Keeping them happy is one way of boosting their productivity and thus the organization as a whole will prosper. Loaning system at Bank Alfalah The types of loans or credit facilities which Bank Alfalah is currently offering are described earlier. Generally a client goes to the branch which offers these services and fills out the appropriate forms. These forms are submitted along with the supporting documents. Then the client is evaluated by the credit officer of the branch. Evaluation is done in many ways. People from the credit department might visit his business and see how things are going on. They can check his past financial records at the bank etc. Then the credit rating of the client is obtained from the credit information bureau. If the credit rating is good then the credit officer sends all the info to the head office of the credit division along with his comments and referral. The appropriate people at the head office after checking all the documents sanction the loan. It is in their authority either to sanction the loan or make a negative decision. Risk Mitigation Approaches Bank Alfalah has a strong risk control framework. There is a fully operational Risk Management Division working under the CEO of Bank Alfalah. The Board of Directors with the sub-committee of "Board Risk Management Committee (BRMC)" also oversees the overall risks faced by the bank. Future Prospects of the Organization The Management of Bank Alfalah intends to widen its network of branches with in Pakistan in the future. This intent has been shown by the senior management and the stress is on maintaining its quality of service and its standards for its customers. The senior management has made a clear statement that they will go aggressively in the fields of microfinance and SME lending. Alfalah intends to offer more innovative products in the department of SME. In addition to that the bank's management has realized the potential of Islamic banking in Pakistan. A lot of people are taking interests in the products currently offered by the Islamic banking system of Bank Alfalah. Thus we would see more Islamic Branches of Bank Alfalah being established inside Pakistan. Their strategy looks to be aggressive

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here too as the intent is to grab most of the market share by offering new products to its customer and take an early lead in the competition.

Conclusion I would like to conclude by doing the SWOT analysis of Bank Alfalah. During my internship program at the branch and doing some observations I found the following strengths of Bank Alfalah. Strengths: Bank Alfalah provides its customers with conventional baking facilities and the Islamic banking option. Products like the Hilal VISA card, loans according to Islamic laws are gaining popularity among the people. Hence bank is gaining more of the market share. Since it is a new bank thus the work force is quite young & energetic. The bank has placed its branches at strategic locations. That has helped the bank attract more customers. The branches in Pakistan are located very close to the areas where the financial activity takes place. The HR Department is very active & I was told that it provides excellent training programs for its newly inducted employees. In addition to that refresher courses are also conducted for the employees. Weakness: As the work force is young so there is less banking experience among the employees. But the major weakness of Bank Alfalah in my opinion is that the employees complain about their salary salaries. Bank Alfalah sits on number 6 in terms of most assets according to the report of State bank for the year 2010. But its profits are very low. The reason is not that Alfalah failed to make any profits in 2010, it certainly made lots of profit. But most of the money from the profits was used by the management to cover the losses incurred but the sister companies of Bank Alfalah. So the benefits were not given to Alfalah employees. Opportunities: Seeing the current trend Bank Alfalah can rely on its Islamic Banking system to increase its market share. The management has realized this and so they have plans to open new Islamic branches in the year 2012. Bank's management has always used an aggressive marketing strategy to market its products, with its young work force it can really excel in the market if all the resources are used effectively and efficiently. The competition is tough thus the top management has to make sure that they make the right decisions at the right time in the best interest of the bank. Threats: Political situation in Pakistan is not good. Investors and businessmen are shifting their assets outside Pakistan. Most important of all is that the policies of Pakistani Government are not consistent. Bank's work force is relatively inexperienced. As stated earlier in order to avoid any undesired circumstances the bank's management has to make the right decisions.

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Recommendations for Improvement The bank's management has to introduce new training programs in coordination with the HR Department. This program should update the employees with the current economic situation of Pakistan, the latest trends and the possible outcomes in the future. This program should include training that would help the employees to deal in a much better way with the customers. I sensed that there is a lack of organizational citizenship in the employees of the bank. The reason is that the profits which the bank is making due to their efforts is being used to cover losses faced by the sister companies of Bank Alfalah and so Alfalah employees are not getting raise in their salaries, bonus or other financial benefits . The top management and the Board of Directors must find a solution towards this problem. Because if this continues it will cause dissatisfaction among the employees. They will either leave the organization or will not work with the same level of commitment. Bank Alfalah is in no position to face this loss. The top management has to find ways to solve this problem soon and at the same time what they can do is take some load off the employees temporality so that they dont get over stressed. Secondly the bank has to increase its advertising of products and services. Honestly I think that the top management is quite reluctant to spend money on advertising. This is beyond my understanding. The reason might be that it is looking to save its funds but this is not the proper way to do it. As stated earlier that the bank is fairly new and the staff including the top management has less banking experience. This is one of main reason that it is not paying the much needed attention on advertising its products. Bank involvement in cricket advertising in the Gulf region is commendable but it has to advertise about its products in the local print and electronic media in the same way other banks are doing in Pakistan.

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Reference & Sources used bankalfalah.com Bank Alfalah Annual Audited Report 2010 Bank Alfalah Un-audited Quarterly Report 2011 State Bank of Pakistan Annual Financial Report 2010 State Bank of Pakistan Statistical Report 2010 Annexes Bank Alfalah Broachers of 1-Credit Cards 2- Loaning Facilities 3- Car Financing 4- Account Features 5- Halal Debit Cards _____________________________________________________________________

NOTE: My annexes section was NOT according to the way as told by VU. However I was declared pass in the report with a little note from the instructor that this section (annexes) is not properly illustrated. My report is concise and to the point thats why it got the approval from the instructor, my final presentation slides were entirely based on the points taken from this report (I passed the presentation and viva section too). Believe in Allah & yourself. Good luck every one. Warm Regards! VU Alumni { MBA (Banking)}

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