Report On Alfalah Bank Branch

Submitted To,
Maam Maleeha Kazmi

Subject, Branch Banking and Central Banking

Submitted By,
Muhammad Zubair MFS-17-18

Muhammad Yasir Iqbal MFS-17-03

Muhammad Tahir MFS-17-14

Muhammad Aashir MFS-17-18

Executive Summary
In this report, we have covered the most leading bank branch which is “Bank
Alfalah Limited” which is located at Vehari road near Ghalla Mandi. We brief
introduction of organization’s business sector along with introduction different
products and services, organizational structure along with branch structure and its
work, CDD, primary or secondary functions, Critical analysis relate to theoretical
concepts of SWOT analysis, our main competitor or recommendation.
 Acknowledgement

First of All Start with the Great name of Allah Almighty who is most merciful and beneficial and
we are very thankful to Allah Almighty who gives us an opportunity to work on this project and
we also thankful to Ma’am Maleeha Kazmi who gives us chance to work on that Project and we
learnt about Commercial Banking.
 Table of Content

History
Hierarchy
Branch Manager
 Greeter
 BDO (Business Development officer)
Branch Operation Manager
 Supervisor
 Chief Teller
o Teller/Cashier
Trade Officer
GBO(General Business Officer)
 Account opening
 Clearing
 Term deposit
 Locker
Vision & Mission
 Our Vision
 Our Mission
 Our Values
Bank Channels
Functions of Alfalah Banks
 Primary Functions
 Accepting Deposits
 Advancing of Loans
 Credit Creations
 Secondary Functions:
 Agency Services:
 General Utility Services
Competitors of Alfalah Bank
SWOT Analysis
 Strength
 Weaknesses
 Opportunities
 Threats
Conclusion
Recommendations
 Technological Advancements
 Workshops and Counseling
 Incentives
 Placements of Employees
References
History

Bank Alfalah Limited was incorporated in June 21st, 1997 as a public limited company under the
Companies Ordinance 1984. Its banking operations commenced from November 1st, 1997. The
bank is engaged in commercial banking and related services as defined in the Banking
companies ordinance 1962. The Bank is currently operating with a network of over 600
branches in more than 200 cities across Pakistan with an international presence in Afghanistan,
Bangladesh, Bahrain and a representative office in the UAE the registered office at
B.A.Building, I.I.Chundrigar, Karachi. Since, its inception as the new identity of H.C.E.B after
the privatization in 1997, the management of the bank has implemented strategies and policies to
carve a distinct position for the bank in the market place. Strengthened with the banking of the
Abu Dhabi Group and driven by the strategic goals set out by its board of management.
Hierarchy

Branch Manager

A Branch Manager is considered as the “captain of the ship”. He/she is responsible for
achieving, exceeding and maintaining the service, sales and control targets by managing,
coaching and motivating the branch team to deliver outstanding performance. He/she should
ensure that the branch team delivers results without compromising the bank's serv;ice and sales
processes and procedures. He/she provides leadership, direction, and support to team members
and is expected to maximize business performance and ensure that relationships with customers
are strengthened. In a nut shell the responsibilities of a branch manager can be broadly
categorized as follows:
1. People Management
2. Customer Franchise Management
3. Risk Management
4. Cost Management / Maintaining Financials of the branch
  Greeter

Handle all walk-in customers at the branch by either directing them to appropriate counter of by
resolving their inquiries. - Cross sell bank's products and services to walk-in customers through
proactive approaches. - Provide basic information on allbank products and services

 BDO (Business Development officer)

Help by the officer to the branch manager to achieve their task or target given by the
manager
 Deposit target
 Customer dealing
 Marketing the product of bank

Branch Operation Manager

The Branch Operations Manager is also referred to as the second in command of the branch. As
a retail banking operation manager he/she should lead, manage and coach the team to achieve
and exceed branch objectives by proactively taking steps to make the branch the most helpful
financial services provider in the area. Operations managers must have full knowledge of the
bank’s policies and procedure and coach their teams to deliver efficient customer service.

 Supervisor

The Branch Supervisor is responsible for assisting the Branch Manager in various aspects of
branch management to ensure the efficient and effective operation of the branch; performing
customer service duties; participating with the Branch Manager in establishing specific goals
for the branch; ensuring compliance with all operating policies and procedures; directly
supervising assigned personnel; communicating with appropriate personnel and providing
periodic reports.
  Chief Teller
A chief teller, also called the vault teller, has the keys to the cash safe. He/she manages and
handles the cash / cheque transactions at the teller counter and ensures delivery of quality
service to the customers while adhering to operational controls and avoiding cash excesses and
shortages.

 Teller/Cashier

A teller processes cash and other types of transactions (deposits / withdrawals issuance/
payment of different banks’ products) in both local and foreign currencies and ensures that the
cash is balanced at the end of the day of a teller

Trade Officer

The Trade Officer should have a working knowledge of Letters of Credit, Collections and
Guarantees and works as part of a team to carry out a range of Trade Finance transactions and
technical support duties in accordance with established policies and procedures and service
standards.

GBO(General Business Officer)

A bank officer is an employee of a bank endowed with the legal capacity to agree to and sign
documents on behalf of the institution. The title is usually held by branch managers, assistant
managers, loan officers, and other experienced personnel.

 Account opening

Account opening is the fundamental and most important function of any bank. This is the
foundation on which banks strengthen their relationship with their customers. If an account is
not correctly opened or an account of any non-existent (benami) person is opened, the bank’s
interest will always be at stake and Regulators can penalize the bank for the lapse.
 Clearing

Cheque clearing or bank clearance is the process of moving cash from the bank on which
a cheque is drawn to the bank in which it was deposited, usually accompanied by the movement
of the cheque to the paying bank, either in the traditional physical paper form or digitally under
a cheque truncation system.

 Term deposit

Deposits are sources of funds which are used by banks for lending and/or investment purposes.
The basic function of any bank is accepting deposits. Deposits can be divided into two main
categories: Demand and Time/Term deposits/liabilities. Banks use deposits for lending and
investing activities

 Locker

Bank lockers have long been considered the best place to store valuables such as jewelry,
certificates, property papers, etc. Most banks now offer this facility to their account holders. Rent
is taken on an annual basis and at the time of allotment of a locker key, a deposit is taken, which
is refundable on surrender of the locker. Banks have various sizes of lockers, but as most of them
are occupied most of the time, customers have to settle for the size which is available.

Three types of lockers

 Small
 Medium
 Large

Vision & Mission

Our Vision

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

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

Our Values

 You
 You’re Needs
 You’re Way
 The Right Way

Bank Channels

 ATM
 SMS Banking
 Internet Banking

Functions of Alfalah Banks:

Alfalah banks not only deal in money and credit creation, other useful functions management of
foreign trade, finance etc. Functions of alfalah banks are divided in the following main
categories:

 Primary Functions:
i. Accepting deposits
ii. Advancing loans
iii. Credit creation

 Secondary Functions:
i. Agency functions
ii. General utility functions
 Primary Functions:
i. Accepting Deposits: The most important function of alfalah banks is to accept deposits from
public. This is the primary functions of a alfalah bank. Banks receives the idle savings of
people in the form of deposits and finances the temporary needs of commercial and industrial
firms. A alfalah bank accept deposit from public on various account, important deposit
account generally kept by bank are:
 Saving Bank Deposits: This type of deposits suit to those who just want to keep their small
savings in a bank and might need to withdraw them occasionally. One or two withdrawals
upto a certain limit of total deposits are allowed in a week. The rate of interest allowed on
saving bank deposits is less than that on fixed deposits. Depositor is given a pass book and a
cheque book. Withdrawals are allowed by cheques and withdrawal form.
 Current Deposits: This type of account are generally kept by businessmen and industrialists
and those people who meet a large number of monetary transactions in their routine. These
deposits are known as short term deposits or demand deposits. They are payable demand
without notice. Usually no interest is paid on these deposits because the bank cannot utilize
these deposits and keep almost cent per cent reserve against them. Overdraft facilities are
also available on current account.
 Fixed Deposits: These are also known as time deposits. In this account a fixed amount is
deposited for a fixed period of time. Deposits are payable after the expiry of the stipulated
period. Customers keep their money in fixed deposits with the bank in order of earn interest.
The banks pay higher interest on fixed deposits. The rates depend upon the length of the
period and state of money market. Normally the withdrawals are not allowed from fixed
deposits before the stipulated date. If it happens, the depositor entails an interest penalty.
 Other Deposits: Alfalah Bank also provide deposit facilities to different type of customers
by opening different account. They also open. ‘Home Safe Account’ for housewife or very
small savers. The other accounts are : ‘Indefinite Period Deposit a/c’ ‘Retirement Scheme’
etc.
ii. Advancing of Loans: The second main function of the alfalah bank is to advance loans.
Money is lent to businessmen and trade for short period only. These banks cannot lend
money for long period because they must keep themselves ready to meet the short term
deposits. The bank advances money in any one of the following forms:
 Cash Credit: Cash Credit is a type of advance wherein a banker permits his customer to
borrow money upto a particular limit by a bond of credit with one or more securities. The
advantage associated with this system is that a customer can withdrawn money as and when
required. The bank will charge interest only on the actual amount withdrawn by the
customer. Many industrial concerns and business houses borrow money in this form.
 Overdraft: An overdraft is an arrangement by which the customer is allowed to overdraw
his account. It is granted against some collateral securities. The facility to overdraw is
allowed through current account only. Interest is charged on the exact amount of overdrawn
subject to the payment of minimum amount by way of interest.
 Loan: Loan is an advance in lump sum amount the whole of which is withdrawn and is
supported to be rapid generally wholly at one time. It is made with or without security. It is
given for a fixed period at in agreed rate of interest. Repayments may be made in
installments or at the expiry of a certain period.
 Discounting Bill of Exchange: The bank also gives advances to their customers by
discounting their bills. The net amount after deducting the amount of discount is credited to
the account of customer. The bank may discount the bills with or without any security from
the debtor in addition to the personal security of one or more person already liable on the bill.
iii. Credit Creations: The bank create credit. When a bank advances a loan, it does not give
cash to the borrower. It opens an account in the name of the borrower. The borrower is
allowed to withdraw money by cheque whenever he needs. This is known as Credit Creation.
 Secondary Functions: It is divided into two parts:
i. Agency Services: Alfalah Bank render service to the individual or to the business
institutions as an agent. Banks usually charge little commission for doing these services.
These services are as follows:
 Remittance of Funds: Bank help their customers in transferring funds from one place to
another through cheques, drafts etc.
 Collection and Payment of Credit Instruments: Bank collects and pays various credit
instruments like cheques, bill of exchange, promissory notes etc.
 Purchasing and Sale of Securities: Bank undertake purchase and sale of various securities
like shares, stocks, bonds, debentures etc. on behalf of their customers. Banks neither give
 any advice to their customers, regarding this investment, nor levy any charge of them for
their services, but simply perform the function of a broker.
 Acting as Trustee and Executor: Banks preserve the wills of their customers and execute
them after their death.
 Acting as Representatives and Correspondent: Sometimes the bank act as representatives
and correspondents of their customers. They get passports, travelers tickets secure passages
for their customers and receive letters on their behalf.
ii. General Utility Services: A bank now a days serves its customers in many other ways:
 Locker Facility: Bank provides locker facility to their customers. The customers can keep
their valuables and important documents in these lockers for safe custody.
 Traveler’s Cheques: Bank issue travelers cheques to help their customers to travel without
the fear of theft or loss of money.
 Gift Cheque: Some bank issue cheques of various denominators to be used on auspicious
occasions. These are known as “gift cheques” as they are gifted to others.
 Letter of Credit: Letter of credit are issued by the bank to their customers certifying their
credit worthiness. Letter of credit are very useful in foreign trade.
 Foreign Exchange Business: Bank also deal in the business of foreign currencies. Again,
they may finance foreign trade by discounting foreign bills of exchange.

Competitors of Alfalah Bank

1. Meezan Bank
2. UBL
3. NBP
4. MCB
SWOT Analysis

Strength:

 Wide Range of National Network Branches

 Facility of Online Banking
 Value add features like, ATMs Visa Debit Card
 Cordial Working Environment

Weaknesses:

 Limited Marketing and Advertising area

 Low Degree of satisfaction of Employees
 Stressful Job
 High turnover of staff due to dissatisfaction
 Lack of training programs for Employees
 No involvement of lower level management in Decision Making

Opportunities:

 Global acceptance of Islamic banking system.

 Improving economic conditions.
 Appreciating foreign exchange reserves.
 Investment and Growth opportunities.
 Industrial development
Threats:

 Establishment of Islamic banking branches by conventional banks.

 Cumbersome procedures of credit facilities.
 Diversifing in the Islamic banking.
Conclusion

Bank Alfalah views specialization and service excellence as the cornerstone of its. The people at
bank realize that innovation, creativity, reliability, customized, services and their execution are
they key ingredients for their future growth. Revenues from these activities have started yielding
dividends and they expect significant growth.

They are aware that they have stepped into the 21st century and they must meet its challenges by
acquiring the highest level of the technology. They will thus be accelerating their technological
advance to enable them to distribute their products and services through most efficient and high
tech means. They say that they will continue to invest in the modern tools and substantial
allocation to resources will be made to achieve this objective during the current year. Phone
Banking and credit card have been introduced in many cities.

Recommendations

Some of the recommendations that I would recommend to some of the problems discussed in the
above section, that might increase the efficiency of both the operations and employees of Bank
Alfalah are as follows

Technological Advancements

Bank Alfalah should develop a modern connectivity architecture to effectively maintain an

online connection of the branch with other branches and also the ATM link, which may include
using modern technologies like fiber cables, routers etc. Also backup links should also be
developed; also a proper IT department should be established in all branches, with professional
having the knowledge to maintain a secured connection with other banks. Also scheduled
backups of data should be done with in the bank.
Workshops and Counseling

Work shop programs should be conducted in every city, rather than just two centers, for all Bank
Alfalah employees. These workshops should relate to all aspects of banking and may also be
conducted with other banks as a joint program. Also as parts of the human resource training,
counseling programs should be started for junior executives or new entrants into the bank,
introducing them to their prospects in this industry.

Incentives

Incentive schemes should be developed for the employees that can help motivate them, which
might include:

 Personal loans and car financing facilities for all ranks of employees.

 Scholarship programs for all employees.

 Introducing employee awards at branch and regional levels.

 Job rotation programs to enhance the skills of employees.

Placements of Employees

There are some departments in the bank that do not have enough employees, while some have
more than needed. All this creates inefficiencies and so the operations manager should look at
the department of the branch and see where inefficiencies lie, in consultation of with the heads of
the departments and hire individuals where there are less employees or rotate employees from
other departments.