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I have completed a report based on my familiarity with my past

studies in order to get a bit familiar with the practical experiences in
organizations. By the grace of Allah Almighty I have accomplished this
Sincerely, to my knowledge and exposure to this subect, I dedicated
my little effort to every one who works for the cause of !akistan. I
express my appreciation to Bahria "niversity that scheduled and
assigned me this report and I hope my efforts will be duly regarded.
#heory and practice completes the cycle of human instinct $uest for
knowledge and his need to solve day%to%day problems systematically.
#he purpose of this program is to give practical knowledge about the
functions of the organization.
#he Internship !rogram also gives better comprehensive and exposure
of theoretical concepts, which are studied during BBA as well as helps
the students to get ac$uainted with actual working atmosphere and
re$uirements in organizations.
&or the purpose of Internship I oined Bank Alfalah. 'uring my period
of Internship I got a chance to work in different departments and I
have tried my best to compile the same in my report.
(ur vision is to be a leading financial institution, with a niche in
areas where we have a competitive advantage with complete
banking solutions. (ur focus is on improving performance in each
of our businesses to achieve consistent and superior returns for
our highly valued clients and stakeholders.
(ur mission is to maintain a competitive edge in $uality banking,
customer service and profit performance. (ur activities are
geared towards making Bank Alfalah a responsible corporate
citizen. #he emphasis on )*uality and Innovation+ will remain our
key mission statement. ,e will continue to strengthen our
position as the leading provider of $uality financial services in
-xcellence in Service
*uality !erformance
!roduct Innovations
Banking backgr!n" in Paki#$an
At the time of independence there were ./0 offices of scheduled
banks in the territories of !akistan. #he 1eserve Bank of India was
the only bank to settle the problem of coinage, currencies and
exchange etc. #here were 23 non% Indian foreign banks with the status
of small branch offices, which were engaged solely in export of corps
from !akistan, while there were only 4 !akistan institution i.e. 5uslim
commercial bank, 6abib bank 7#', and the Australasia bank.
State bank of !akistan was established on 8uly 2, 23./ and assumed
full control of banking and currency in !akistan. In order to develop
sound banking 9 weeding out weak institutions, the Banking :ompanies
:entral Act was promulgated in 23.3, empowering the State Bank to
control the operations of banking in !akistan.
Another very significant event in the development of banking in
!akistan was the appointment of the :redit In$uiry :ommission in 23;3
to examine the scope and working of the institution providing credit
facilities to agriculture, trade, commerce and industry and
recommended measures for further improvements
Bank A%&a%a'
Bank Alfalah during the past five years, has assumed a brand new
identity plied with a spurred vision and revived commitment, following
the privatization of 6.-.:.B in 2330. Since then the Board and the
5anagement of the bank have implemented strategies and policies to
carve a distinct position to carve an instinct position for the bank in
the market.
#he strengths of Abu 'habi <roup have helped Bank Alfalah
contribute towards the development of $uality retail and :orporate
banking in !akistan.
#he bank was ac$uired by the Abu 'habi :onsortium, which is headed
by Shaikh =ahyan Bin 5abarak Al%=ahyan, a prominent business
professional of the ruling family of Abu 'habi and the 5inister of
6igher -ducation and Scientific 1esearch, ><ovt. of "A-?. (ther
members of the :onsortium include 1oyal &amily members and leading
businessmen of "A-. #he consortium owns 0@A of the shares while
the <ovt. of !akistan has retained the remaining 4@A of the bankBs
shares. #he financial and managerial strength of Abu 'habi :onsortium
has greatly enhanced the credibility of the bank in !akistan and is
reflected in the bankBs improved performance in all the spheres of
In pursuance of State Bank of !akistan, directives to all commercial
banks to get themselves )rated+. Bank Alfalah also undertook the
exercise with !A:1A >!akistan :redit 1ating Agency?. #he premier
rating agency, which is an affiliate of IB:A, rated the bank as AA% for
long term and A2C for short term. Both ratings are investment grade
and denote very high credit $uality and very low expectation of credit
risk. #he ratings are applicable to senior unsecured creditors of the
In the efforts to branch out overseas, the bank is in the process of
ac$uiring a D;A stake in a banking company in Bangladesh. #his
ac$uisition will not only help the bank promote bilateral trade with
Bangladesh, but also help in the initiation of business with other
countries of SAA1: and &ar%-ast region.
T'( Manag()(n$
AlfalahBs manegement is known for their hard work, product innovation
and dedication to make sure that the development and modernization
process keeps the bank ahead of competition.
,ith a team of talented, service dedicated professional bankers, Bank
Alfalah commits all of its energies, resources and time to cater to
banking and financial needs of its valued clients.
&ollowing members form the board of directors of Bank Alfalah.
2. Shaikh =ahyan Bin 5abarak Al%=ahyan >:hairman?
D. 5r. Abdullah Ehalil al%5utawa
4. 5r. (mar F. Al%Askari
.. 5r. Abdulla =asser 6awaileel Al%5ansoori
;. 5r. =adeem I$bal Sheikh
G. 5r. Ikram "l%5aeed Sehgal
0. 5r. 5ohammad Saleem Akhtar >:hief -xecutive?
Organi*a$ina% S$r!c$!r(
All the affairs of Bank Alfalah are run by the Board of 'irectors,
headed by the :hairman and :hief -xecutive, who are responsible for
all matters happened in the company i.e. profits, plans strategies,
losses and employee satisfaction etc.
#he management network can easily be visualized in the organization
Manag()(n$ S$r!c$!r(
:hief -xecutive (fficer
Senior Authorized (fficer
Senior :lerk
8unior :lerk
O+(ra$ing an" Financia% Ana%,#i#
#he bank is currently operating in 4/ branches within the country and
has been successful during the year on the further mobilization of
resources by attracting low cost and stable deposits. Bank Alfalah has
shown remarkable progress in their operations within these few years.
'espite notable economic uncertainties, the bankBs financial strength
has greatly enhanced during the recent years. #he successful
expansion program has proved the bankBs capability and commitment in
comparison with the competition in the industry. It is heartening to
note that in ust a few years, which are considered as the infancy
stage in industry, the bank has increased its branch network a lot. #he
expansion program is strategically important to increase customer
base and help the bank to approach different customer segments
#he bankBs treasury activities comprise of almost client%backed
transactions, emanating largely from foreign trade business. #he
#reasury is $uite active in both sections of the inter%bank market i.e.
foreign exchange and money market.
#he bank continues to maintain positive and healthy li$uidity. #heir
surplus li$uidity is mainly kept in fixed income securities, issued by the
&ederal <overnment of !akistan that can be easily be converted into
cash, if necessary.
,ithin the first year >233/? their 'eposits grew up by 42A, Advances
by ..A, #rade &inance by almost 2@@A and the total assets by 4;A.
#he bankBs position has still improved in the year D@@D.
#his situation can be observed in the table on the other pageH
I -../
E1!i$, 2.G42 @.3@2 ;2
D(+#i$# 4@.D@0 D@../D .0
I)+r$# DG.G;/ 24.DD/ 2@D
E2+r$# D;.DG2 2G.0;0 ;2
Pr&i$ b(&r(
;D..2G. .@@.4;@ 42
Pr&i$ a&$(r
42@.G2D D2;.4;@ ..
T$a% A##($# .@.@3/ D/./;; 43
A"3anc(# D@.DD@ 2G.4;0 D.
/4 C!rr(n$ Ra$i
:urrent 1atio J :urrent Assets
:urrent 7iabilities
Y(ar -... Y(ar -../
1upees in @@@B
0,43@,./2 /,@3@,G0D
G,G;.,3GD 0,042,@/0
/4// /4.5
-4 D(b$ $ E1!i$, Ra$i
'ebt to -$uity 1atio J #otal 'ebt
Share -$uity
Y(ar -... Y(ar -../
1upees in @@@
D0,24G,;4@ 40,34/,.22
3@@,G/@ 2,4G2,D3D
6.4/-7 -8479:
64 D(b$ $ T$a% A##($# Ra$i
'ebt to #otal Assets J #otal 'ebt
#otal Assets
Y(ar -... Y(ar -../
1upees in @@@
D/,/;.,G4D .@,@3/,@3;
/4.9 /459
H!)an R(#!rc( Ana%,#i#
Bank Alfalah believes that humans are their most valuable assets. In
the pursuit to impart sound technical skills to their staff, the #raining
and 'evelopment :enter continues to offer programs in several skill
areas. #he bankBs training and business philosophy is geared to provide
professional, personalized and efficient services to the clients at all
times. #he bank is making its own positive contribution to the services
culture of the banking system as a whole, providing at the same time a
breakthrough to the customers in terms of choice based on $uality.
#he bank continues to hire fresh 5BAs from prestigious universities in
batches of D@ I D; officers, who then undergo rigorous and intensive
training, first at the hands on experience. #he Board places utmost
importance to its human asset base.
T(c'n%g, Ana%,#i#
#echnology and automation play a pivotal role in the progressive
development of an organization. It has become impossible to control
the operations of a bank effectively in real time situation without the
latest technology.
#echnological developments are opening up new vistas of solutions for
distributing traditional financial products. :oncurrently, rapid change
in customer preferences has resulted in maor shift from manual to
automated services.
Information technology today, is all pervading in the corporate world.
'uring the past years Bank Alafalah made heavy investments towards
enhancing its capabilities in the area of automation and information
technology. #he bank plans to achieve total connectivity between
branches by the end of last $uarter, D@@D. the obectives are to
achieve efficiency in services and to control costs. #he bank is working
on a plan to increase their A#5 installations and also oin a Switch
<roup of other prominent banks. In the first phase of this program,
the installation of D0 A#5s is already underway.
Branc' N($0rk
Bank AlfalahBs obective has been to expand its branch network to
meet its clientsB needs. #he bankBs strategy is to maximize the
synergies of branch network through an optimal allocation of financial,
human and other resources in order to meet the dynamic challenges of
present financial environment.
Inherited with a network of 4 branches, Bank Alfalah has escalated it
to 4/ branches all over !akistan. #he bank is well positioned and
geographically poised to cater for increased business demands from
its existing and potential clientele. =ow there are branches in almost
every maor city.
#he bank, at the end of D@@D plans it, that this figure of 4/ branches
would reach to .;.
&ollowing are the cities in which branches of Bank Alfalah are present.
2. Bahawalpur
D. &aisalabad
4. <uranwala
.. <urat
;. 6yderabad
G. Islamabad
0. Earachi
/. 7ahore
3. 5ultan
2@. 5ardan
22. 5ingora
2D. !eshawar
24. *uetta
2.. 1awalpindi
2;. 1ahim Kar Ehan
2G. Sahiwal
20. Sukkur
2/. Sargodha
23. Sialkot
#he BankBs performance over the passing years seems to improve even
when faced by challenging economic conditions. #his has been the
result of the bankBs highly prioritized product portfolio, specifically
tailored to suit the discerning needs and preferences of customers.
Besides being focused on :orporate and Investment Banking business,
Bank Alfalah is now entering into :onsumer Banking area. In addition to
tailor made products to meet customerBs re$uirements, Bank Alfalah
offers the following services to its clientsH
Ca#' Financ( Faci%i$,
#o meet short%term li$uidity re$uirements, the bank offers :urrent
&inance &acility to meet working capital re$uirements. A special
relationship officer is assigned to look after corporate accounts to
ensure smooth and efficient functioning.
S$r!c$!r(" Financing
#he bank has a dedicated team of thorough professionals providing
tailor made financing solutions. In adherence to re$uested
re$uirements the team provides cost and time effective solutions
ranging from -$uity :onsultation, &inance through :apital 5arkets
in the form of #&:s and 'ebentures, "nderwriting and ,arehouse
Indirect &inancing through !roect &inancing and Syndication.
C%%(c$in Faci%i$,
#he bank provides collection facility from any of the 4; branches.
(ne can transfer funds from collection accounts from any of the
branches to his L her main account on daily basis without any time
delays and at very nominal rates. In places where Bank AlfalahBs
branches are not available, the bank facilitates funds transfer
through strategic alliance with their correspondent banks.
Sr$ T(r) ; M("i!) T(r) F!n" P%ac()(n$
#o optimize returns on oneBs surplus funds, the bank offers
competitive rates for which they have products that provide
returns on daily product basis. In addition, profit is paid on a
monthly basis that can boost oneBs annualized rate of return.
(ther facilities are as followsH
1oyal !rofit >'aily L 5onthly Interest earning accounts in
(ne of the fastest and most lucrative &:K accounts mechanism
(n line banking
!ersonal loans
Internet banking
:ar &inancing
Staff Salary Accounts
!ersonal 1elationship Banking
7ike all others, Bank Alfalah also has a number of competitors
2. 5uslim :ommercial Bank
D. =ational Bank of !akistan
4. "nion Bank
.. "nited Bank
;. Allied Bank of !akistan
G. :itibank
0. 6abib Bank 7td.
/. &aysal Bank
3. !rime :ommercial Bank
2@. !latinium :ommercial Bank
22. Saudi !ak :ommercial Bank
2D. Indus Bank
24. Soneri Bank
2.. #he Bank of Ehyber
2;. Bank of !unab
2G. <ulf :ommercial Bank
20. 5etropolitan Bank
As stated earlier, I oined Bank Alfalah for the purpose of internship.
I have worked here as an internee for two months. 'uring my
stay of two months I have worked in different departments. In
these departments, I was assigned different obs, which helped
me gain some practical experience.
I had to report at 3.@@ am sharp and was given a warning that, if I was
late for 4 days, I would be fired. It was applicable for all other
employees. #he bank timings were 3.@@ am to ;.@@ pm for all other
employees, but I am thankful to the manager, who relaxed me and I
was allowed to leave at 2.4@ pm due to my classes of the summer
#he overall staff was $uite cooperative and friendly, and everyone
treated me very well. But at the same time, there was a very strict
policy about punctuality as well as discipline.
&ollowing are the departments in which I have worked.
/4 Car L(a#ing D(+ar$)(n$
I have worked in this department for almost D; days. 5y
supervisorBs name was 5r. Imran Shami. 6ere I learned the whole
procedure of getting a car leased.
5y duty was to contact clients at the time when their monthly
installment was due. 5oreover, 5r. Imran Shami made me deal with
customers who came for the purpose of car financing. I used to give
out a presentation about all this procedure.
In addition to this, I brought . interested customers for Bank
Alfalah. All the . were friends of mine, who got their desired cars
leased through me.
-4 R()i$$anc( D(+ar$)(n$
#he next 2@ days of my internship were in the remittance
department. 6ere, my duty was to remit amounts. I was responsible
for remitting amounts to different accounts, which were received
from foreign countries.
64 C!#$)(r S(r3ic(# D(+ar$)(n$
I passed my last 2; days in the :ustomer Services 'epartment.
6ere I was given a telephone line and I had to attend phones and
guide people as well as transfer calls to different departments.
Secondly I was assigned the duty of opening new public accounts. I
opened a number of new accounts during my internship program.
It is a universal truth that every thing in this world has its own bright
and dark sides. It is the case with Bank Alfalah. 'uring my Internship,
I found a number of good things in addition to a few problems.
#he first day I entered the bank I was informed that on being late for
three days in a month, an employee is fired. -very one has to report at
3.@@ am sharp. Any one coming late is warned and is fired after three
As mentioned before, I have also worked in the car%financing
department. #he second problem was observed there. I noted that
there was no separate phone line for that department. 'ue to this,
the personnels over there have to wait $uite long for the phone line to
be free.
#he problem is $uite serious, i.e. the rule is $uite rigid and there is no
leniency anywhere. A person can have any problem, and at anytime. =o
one is informed prior to getting in trouble. If a person gets late, he
should be allowed to explain the reason. If the reasoning is ustified,
then he L she should be excused.
#he second problem is not $uite serious. It can easily be resolved by
adding one more phone line in the department.
&ollowing are the findings that I obtained during my internship.
2. #he bank maintains a very strict policy about punctuality.
D. Internees are treated well.
4. #he management continuously strives to minimize absenteeism in
.. "p till now, Bank Alfalah is offering the lowest mark up rates in
car financing.
;. #he bank has remarkably escalated from 4 to 4/ branches within
G. #he bank has heavily invested in order to enhance its capabilities
in the field of automation and technology.
0. 'espite the uncertain economic conditions, the banks financial
position has improved $uite a lot.
/. #he internal computer system is $uite slow and often gets
hanged up.
Following are the findings that I obtained during my internshi!
9! "he ban# maintains a $ery stri%t oli%y about un%tuality!
10! Internees are treated $ery well!
11! & till now 'an# (lfalah is offering the lowest mar# u rates in %ar finan%ing!
12! "he ban# has remar#ably es%alated from 3 to 35 bran%hes within )a#istan!
13! "he management %ontinuously stri$es to minimi*e absenteeism in emloyees!
Operating and Financial Analysis
"he ban# is %urrently oerating in 35 bran%hes within the %ountry! 'an# (lfalah has
shown remar#able rogress in their oerations within these few years!
+ithin the first year ,1998- their .eosits grew u by 31/0 (d$an%es by 44/0 "rade
Finan%e by almost 100/ and the total assets by 35/! "he ban#1s osition has still
imro$ed in the year 2002!
"his situation %an be obser$ed in the table below2
3 2001
Equity 1!631 0!901 51
Deposits 30!207 20!482 47
Imports 26!658 13!228 102
Exports 25!261 16!757 51
ro!it "e!ore #ax 524!164 400!350 31
ro!it a!ter #ax 310!612 215!350 44
#otal Assets 40!098 28!855 39
Ad$ances 20!220 16!357 24
%uman &esource Analysis
'an# (lfalah belie$es that humans are their most $aluable assets! In order to imro$e
staff1s rofessional 4uality and rofi%ien%y0 the ban# %ondu%ted on56ob training rograms
and in house seminars 7 %ourses0 at one training %enter! 'an# (lfalah1s training a%ademy
is e4uied with the latest audio5$isual training aids0 whi%h fa%ilitate in the
dis%rimination of #nowledge and s#ills!
"he ban# indu%ted thirty management trainees0 who are being ta#en through a si85month
%omrehensi$e ban#ing training rogram! "he ban# intends to %ontinue0 on a need basis0
su%h rograms ea%h year!
#echnological Analysis
"e%hnologi%al de$eloments are oening u new $istas of solutions for distributing
traditional finan%ial rodu%ts! 9on%urrently0 raid %hange in %ustomer referen%es has
resulted in ma6or shift from manual to automated ser$i%es!
Information te%hnology today0 is all er$ading in the %ororate world! .uring the year
20000 'an# (lafalah made hea$y in$estments towards enhan%ing its %aabilities in the
area of automation and information te%hnology! "he ban# is well ositioned to meet
%lient needs0 with imro$ed %ometiti$e ad$antage!
%uman &esource Analysis
'an# (lfalah belie$es that humans are their most $aluable assets! In order to imro$e
staff1s rofessional 4uality and rofi%ien%y0 the ban# %ondu%ted on56ob training rograms
and in house seminars 7 %ourses0 at one training %enter! 'an# (lfalah1s training a%ademy
is e4uied with the latest audio5$isual training aids0 whi%h fa%ilitate in the
dis%rimination of #nowledge and s#ills!
"he ban# indu%ted thirty management trainees0 who are being ta#en through a si85month
%omrehensi$e ban#ing training rogram! "he ban# intends to %ontinue0 on a need basis0
su%h rograms ea%h year!
'esides being fo%used on 9ororate and In$estment 'an#ing business0 'an# (lfalah is
now entering into 9onsumer 'an#ing area! In addition to tailor made rodu%ts to meet
%ustomer1s re4uirements0 'an# (lfalah offers the following ser$i%es to its %lients2
(ash Finance Facility
"o meet short5term li4uidity re4uirements0 the ban# offers 9urrent Finan%e Fa%ility to
meet wor#ing %aital re4uirements! ( se%ial relationshi offi%er is assigned to loo# after
%ororate a%%ounts to ensure smooth and effi%ient fun%tioning!
'tructured Financing
"he ban# has a dedi%ated team of thorough rofessionals ro$iding tailor made finan%ing
solutions! In adheren%e to re4uested re4uirements the team ro$ides %ost and time
effe%ti$e solutions ranging from :4uity 9onsultation0 Finan%e through 9aital ;ar#ets in
the form of "F9s and .ebentures0 &nderwriting and +arehouse Indire%t Finan%ing
through )ro6e%t Finan%ing and <yndi%ation!
(ollection Facility
"he ban# ro$ides %olle%tion fa%ility from any of the 35 bran%hes! =ne %an transfer funds
from %olle%tion a%%ounts from any of the bran%hes to his 7 her main a%%ount on daily basis
without any time delays and at $ery nominal rates! In la%es where 'an# (lfalah1s
bran%hes are not a$ailable0 the ban# fa%ilitates funds transfer through strategi% allian%e
with their %orresondent ban#s!
Sort Term / Medium Term Fund Placement
"o otimi*e returns on one1s surlus funds0 the ban# offers %ometiti$e rates for whi%h
they ha$e rodu%ts that ro$ide returns on daily rodu%t basis! In addition0 rofit is aid
on a monthly basis that %an boost one1s annuali*ed rate of return!
=ther fa%ilities are as follows2
=n line ban#ing
)ersonal loans
Internet ban#ing
9ar Finan%ing
<taff <alary (%%ounts
)ersonal ?elationshi 'an#ing
#echnological Analysis
"e%hnologi%al de$eloments are oening u new $istas of solutions for distributing
traditional finan%ial rodu%ts! 9on%urrently0 raid %hange in %ustomer referen%es has
resulted in ma6or shift from manual to automated ser$i%es!
Information te%hnology today0 is all er$ading in the %ororate world! .uring the year
20000 'an# (lafalah made hea$y in$estments towards enhan%ing its %aabilities in the
area of automation and information te%hnology! "he ban# is well ositioned to meet
%lient needs0 with imro$ed %ometiti$e ad$antage!