INTERNSHIP REPORT ON

THE BANK ALFALAH LIMITED (ISLAMIC)

SUPPLY BRANCH ABBOTTABAD (1567)

Submitted by: Faizal Riaz

Registration #: 11-A/COM-39

Supervised by: Dr.Amjad Rafiq

Government College of Management Sciences

Abbottabad
SESSION: 2012-2014

INTERNSHIP REPORT ON
THE BANK ALFALAH LIMITED (ISLAMIC)
SUPPLY BRANCH ABBOTTABAD
Submitted by: Faizal Riaz
Registration #: 11-A/COM-39

Supervised by: Dr.Amjad Rafiq

This internship report is submitted in partial
fulfillment of the requirements for the degree of
Master of Commerce awarded by the Hazara
University,
Abbottabad

Government College of Management Sciences

Abbottabad
SESSION: 2012-2014

Government College of Management Sciences

Abbottabad
APPROVAL SHEET

Approval Committee
1. External Examiner
Mr.______________________ Signature______________________

2. Supervisor
Dr.Amjad Rafiq

Signature______________________

Designation Assistant Professor

3. Head of department
Mr. Mushtaq Ahmad____________ Signature_____________________
Designation Principal

DEDICATION
I dedicated this report to my Loving parents who have continuously given me moral support
and encouraged me though my four years of Bachelor studies. They gave me mental strength
to fight and deal with the hurdles of the daily routine I faced during my study. At this stage I
can say that today what I am where I stand is just because of them. Secondly I would like to
dedicate this report to my supervisor who guided me through out my internship and even in
the making of report.

ABSTRACT
All praises and thanks to Almighty ALLAH. The lord and creator of this universe by shoes
power and glory all goods and things are accomplished. He is also the most merciful, who
gave me the ability and opportunity to work on this report. It is an academic requirement for
the student of M.Com to undergo an internship program of sex weeks duration. This
opportunity provides to the students to apply theoretical knowledge and gain practical
experience about the organization. The purpose of internship report is to evaluate the
performance of organization and give concrete recommendation for further improvements.
Another aspect of this internship is that it makes of a student imaginative and be dynamic and
takes him away from bookish and impractical philosophy. So it makes the student a practical
man and helps him to face difficulties of practical life and the solution of problems. Through
internship a student can judge his qualities and expertise, whish he gained from books.
As a compulsory requirement of Professional Degree M.Com, I opted to join Bank Alfalah
(Islamic)Limited, to fulfill my degree requirement. My reason for choosing Bank Alfalah
(Islamic)was to enhance my skills in Management Finance and Accounts, so that to provide
myself the opportunity to cope with real life situation. To better understand the report my
recommendation would be to look into different parts mainly covering the overview of Bank
Alfalah, overall management of Finance and Accounts.
The bank staff was very much cooperative to me, they have provided me relevant material to
write a report. I am very much thankful to them and to my Supervisor Dr. Amjad Rafiq for
the supervision and guidance. Finally, keeping the tradition alive as well as fulfilling social
and ethical responsibility, my dedications will always go to my dear Parents & Family and
Friends.

TABLE OF CONTENTS

CHAPTER 01
INTRODUCTION TO REPORT

01

1.1 Objective of the Study

01

1.2 Scope of the Study

01

1.3 Importance of Study

01

1.4 Methodology Of The Study

01

1.5 Limitation of Study

02

1.6 Scheme of the Report

02

CHAPTER 02
INTRODUCTION TO THE ORGANIZATION

04

2.1 Central Background Information

04

2.2 Company Background

04

2.3 Credit Rating

05

2.4 Vision & Mission

06

2.5 Organizational Hierarchy:

07

2.6 Board of Directors

08

CHAPTER 03
DEPARTMENTS OF BANK ALFALAH

09

3.1 Departments Worked During Internship

09

3.2 Application of Class Room Learning

29

3.3 Product & Services

30

3.4 The five Cs of Credit

31

3.5 Learning as an Internee

32

CHAPTER 04
FINANCIAL ANALYSIS

33

4.1 Horizontal &Vertical Analysis

33

4.2 Horizontal Analysis of Balance Sheet

35

4.3 Vertical Analysis of Balance Sheet

38

4.4 Horizontal Analysis of Income Statement

40

4.5 Vertical Analysis of Income Statement

42

4.6 RATIO ANALYSIS

43

4.7 SWOT Analysis

51

4.8 PEST Analysis

53

4.9 Marketing Analysis

56

CHAPTER 05
CONCLUSION AND RECOMMENDATIONS

59

5.1Conclusion

59

5.2 Recommendations

59

REFERENCES

62

ACKNOWLEDGEMENT
Lots of thanks to Almighty Allah (The most merciful the most beneficial).The only creator of
universe who enabled me to complete this report, in spite of various difficulties. All respects
to the Holy Prophet (P.B.U.H) who enable us to recognize our greater and whose spiritual
teaching guide us every matter of life.
I would like to acknowledge my debts to those officers of Bank Alfalah (Islamic)Limited who
have been extremely helpful to me.
First of all M. Iqtadar Hussain Shah, he has been a permanent source of encouragement and
guidance. His helpful nature did not restrict me to the premises to the branch but extended to
any place and any matter I needed his support on.
I would also acknowledge my debt to Mr. Shabbir Ahmed for the knowledge he provided in a
very frank and casual manner. Due to his gift of wittiness, the time of my internship that was
spent with him was the most interesting and memorable one for me.
Moreover, I would also acknowledge my debt to my family for their helpful hand.
In short, I would always be thankful to all my managers and officers, for their courteous and
compassionate treatment to me.

Faizan Riaz

LIST OF ABBREVIATIONS

IDBP
SBP
MNCs
ADBP
L/C
L/G
ATM
APD
IPD
IT
BTF
NIT
FC
PLS
HRM
SBU
NDFC
RTCs
AIGP
MT
ETD
MIS
FDD
FS
ETD

Industrial Development Bank of Pakistan

State Bank of Pakistan
Multi-National Companies
Agricultural Development Bank of Pakistan
Letter of Credit
Letter of Guarantee
Auto Teller Machine
Assets Product Division
Investment Product Division
Information Technology
Balance Transferred Facility
National Investment Trust
Foreign Currency
Profit & Loss Sharing
Human Resource Management
Strategic business unit
National Development Finance Corporation
Rupee Travelers Cheques
American International Group Pakistan
Mail Transfer
Electronic Technology Department
Management Information System
Foreign Demand Draft
Financial Statement
Electronic Technology Department

EXECUTIVE SUMMARY
Pakistan after getting its independence, did not inherit a strong banking industry and since
then saw a number of events in the industry, like the nationalization of banks in the 1970s.
However, the banking industry of Pakistan has been grown over the past few years, mainly
because of the consistent policies implemented by the Government of Pakistan, including the
privatization of banks in Pakistan. Also the State Bank of Pakistans, monetary policy has
been very friendly toward the banking industry. But in 2008 because of world economic
crisis, the economy of country was in crisis so the all businesses went down so as the banks

business result in lower performance and profibility. There are a number of different banks
established in Pakistan, including local incorporated commercial banks, foreign incorporated
commercial banks, development financial institutions, investment banks, discount &
guarantee houses, housing finance companies, venture capital companies, micro finance
banks and Islamic banks.
I did my five weeks internship at Bank Alfalah,(Islamic Branking) Abbottabad and
worked in Credit administration department, Trade Finance Department, Account opening
department and remittances department. The over all experience at the bank was good. A lot
of things have been learnt, some of which relate to classroom learning. Alfalah is expanding
its network all over the Pakistan yet there are many untapped areas. The competitors of
BAFL are also in aggressive position. The Economic and Political conditions of the country
are very disturbing; the high inflation and law and order situation affects every business
including Alfalah. Social and technological issues are of secondary importance but they also
can not be neglected. BAFL is focusing positively regarding technological issues but it
should also keep its eye on the social cultural factors also.
Some of the recommendations include promotion on the basis of merit, loans to students and
scholarship programs for its employees. Lastly Bank Alfalah (Islamic) has seen a rapid
growth in its activities by introducing a range of products and services and showing its
presence in the country by opening new branches and in future should keep this momentum
and always strive to become the best.