1
ContentsEXECUTIVE SUMMARY0INTRODUCTION1PRODUCTS &
SERVICES:2ACCOUNT OPENING DEPARTMENT4CLEARING DEPARTMENT5ACCOUNTS
DEPARTMENT6CREDIT DEPARTMENT8TRADE FINANCE DEPARTMENT8SWOT
ANALYSIS8Conclusion10Recommendations10i)Innovative Products10iv)
Amenities in Branch11References11
EXECUTIVE SUMMARYAfter the Independence of Pakistan, different
business sources and resources were not inherited and one of the
major sources was Banking Industry. After this there were also
nationalization of banks in 1970s followed. However today, the
banking industry of Pakistan has been growing 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
updated with the passage of time toward the banking industry. There
are 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. Bank
Alfalah was incorporated in 1997 and was later privatized by the
Government of Pakistan. The Abu Dhabi Group bought the majority
shares of the bank and they have got the rights to control the
banks operations. Since the privatization of the bank, Bank Alfalah
has implemented different policies to make it one of the best banks
of Pakistan, which included introducing new products and services
and increase its operations by opening new branches in
Pakistan.Today Bank Alfalah is operating in more than 70 cities
through 471 branches in Pakistan and operating its foreign branches
in Bangladesh, Afghanistan and Bahrain. The total employees of Bank
Alfalah approximate around 8,600. The increase in the number of
employees joining Bank Alfalah shows that people feel confident in
Bank Alfalah as a prospect employer.INTRODUCTIONBank Alfalah
Limited (BAL) is a private bank in Pakistan owned by the Abu Dhabi
Group. Bank Alfalah was incorporated on June 21, 1997 as a public
limited company under the Companies Ordinance 1984. Bank Alfalah is
registered at both Karachi and Lahore Stock Exchange with a ticker
name of BAFL. Its banking operations commenced from November 1,
1997. The bank is engaged in commercial banking and related
services as defined in the Banking companies ordinance, 1962, with
the registered office at B.A. Building, I.I. Chundrigar Road,
Karachi since its inception, as the new identity of H.C.E.B (Habib
Credit and Exchange Bank Limited) after the privatization in 1997,
the management of the bank started implementing strategies and
policies to carve a distinct position for the bank in the market
place. PRODUCTS & SERVICES:Some of the services are mentioned
in Bank Alfalah (2013) that, with the mission to provide
all-encompassing banking services to the customers, Bank Alfalah
has a uniquely defined menu of financial products. Currently it is
one of the most comprehensive portfolios of personalized financial
solutions that are custom-tailored to serve the requirements not
only of conventional customers but also fulfill the needs of the
corporate sector:i. Account Openingii. Credit Cardsiii. Debit
Cardsiv. Cheque Books Facilitiesv. Checking Accounts (Both Personal
accounts and Corporate accounts)vi. Cash deposits, Cash Receipt,
Online transfervii. Remittances (both Inland and foreign
Remittances)viii. ATM (Automated Teller Machine) ix. Lockersx. Car
Financing (For purchase of cars in bulk for Corporate Account
Holders)xi. Priority bankingxii. Online bankingxiii. Islamic
Banking
i) Checking AccountsSome of the main types of checking
accounting that bank provide:Basic Banking Account (BBA), Current
Account, Profit & Loss Saving Account (Pls A/c), Kamyab karobar
Account, Royal Profit Account, Fixed Account, Corporate Accountii)
Basic Banking Account (BBA)These accounts have no minimum balance
requirement and can be opened by justRs.5000/- (State Bank of
Pakistan requirement). A customer with a BBA, does receives an ATM
card but the account cannot be turned to an Online Account. The
segment that this account is targeted is towards the salaried
individuals that have just started their professional careers,
students or any other individual that may want to open an account
with a small amount of money.iii) Current AccountCurrent accounts
are another type of account that banks offer, this account does not
provide any profit on it and neither zakat is deducted on this
account. This account can be turned into an Online Account and its
customers also receive an ATM card. The major segments of this
account are sole proprietors, partnerships, companies (both
private& public) and any other individual that wants to open
their account and not earn profit or pay zakat on their
balances.iv) Profit & Loss AccountProfit and loss accounts are
one of the basic accounts that give interest to its customers
deposits. These accounts pay interest annually and zakat is also
deducted on these accounts. ATM card are also provided to these
account holders. The main segment targeting these accountholders
are people that want to save money which might include household
etc. This account does not target companies however.v) Kamyab
karobar AccountIt is a loan account. It is suitable for small
business owners and for those who want to start a business. The
loan can be obtained against some security and slabs have been made
which show the duration of loan and interest charged on itvi) Royal
Profit AccountRoyal profit account is a saving account and provides
profits to the customers after every quarter. The minimum balance
requirement for this account is Rs.50,000. Zakat is also deducted
from this account. ATM card is also issued in it.vii) Fixed
AccountIt is a term deposit account and profit is distributed
annually to the customers. A person needs to close the account if
he has to withdraw amount from this account. ATM is also not issued
in it.viii) LockersLockers are widely available at branches of Bank
Alfalah. Because of good security system customers can place their
belongings safely in these lockers and can operate the many time in
the banking hours. Insurance is also provided on the amount of
stock in these lockers. Main categories of lockers are Type FEE
p.a(PKR) Large Rs.3500Medium Rs.2500Small Rs.2000ix) Car
FinancingBank Alfalah car financing facility is a very popular
facility with all bank customers as it facilitates them to pay for
their car over a period of time (1-5 years) at less interest rate
than its competitors. It provides additional facilities of
insurance and tracking devices in cars as well. Bank is also
financing up to three years old cars and also their insurance. The
main segments of people to whom this service is targeted are
salaried individuals, businessmen and other individuals with a high
disposable income.x) Credit CardsCredit Cards are todays one of the
most selling product that banks offer. Bank Alfalah Credit Card is
a partner everywhere and is globally accepted and welcomed at
locations displaying the VISA logo. It is accepted at nearly 29
million locations in more than 150countries around the globe and
over 27,000 Bank Alfalahs employees in Pakistan. Alfalah VISA pays
for shopping, travel, entertainment, meals and much more. Card
members are facilitated through a number of promotions from time to
time. In addition,. Salient features are: No Joining / Annual /
Renewal fee Electricity, Sui Gas, PTCL and Warid bills payment
through 24 hour Call Center and Auto Debit instructions SMS for
card usage, mini statement, payment receipt confirmation, etc. Cash
withdrawal at all 1LINK ATMs Special offer on Telenor postpaid
connections. .Platinum Card It is accepted at nearly 29 million
locations in more than 150 countries around the globe and at over
27,000 establishments in Pakistan. The limit of this card is
maximum Rs.2 millionACCOUNT OPENING DEPARTMENT
Accounts opening department is one of the departments that come
under the retail/general banking facilities provided by Bank
Alfalah Limited, Corporate Branch. The working done in this
department includes:i) Basic Requirements for Account OpeningThe
basic requirements to open an account for individuals/self-employed
are as follows: CNIC, Source of income (salary slip) NTN
certificate (optional) Company letterhead or authorization (as
required). The basic requirement to open an account for a
partnership account is Partnership Deed, Partners CNIC, Company
Letterhead, NTN certificate (optional). The basic requirement to
open an account for companies: Memorandum of Association, Article
of Association, Directors CNIC, Company Letterhead, NTN certificate
(optional).
ii) Account OpeningWhenever a customer comes to open their
account, they have to fill a relationship contract with the bank.
As part of my internship I had to fill these forms and then use the
appropriate bank stamps to complete these forms. Also as part of
the relationship form, I also had to do a Verisys, a verification
system started by NADRA on the CNIC of the new account opener. A
Verisys tells, if more information pertaining to the customer is
needed to open the account or not. Furthermore as all relationship
forms have to be sent to Karachi Head Office, a central location,
for all account relationship forms, I had to develop a list of
daily forms sent and their quantity.CLEARING DEPARTMENTThe clearing
department is responsible for the clearing of all cheques that the
bank receives daily. In clearing department, I worked with cheques
for payments or online transfer payments in manually, TERADATA,
stamping and reporting. I had to report the daily transaction at
the end of the day to supervisor and also to Operations Manager.I
also did the Inter banking transactions in Clearing Department and
Nift organization who is authorized by the State Bank of Pakistan
to exchange the cheque daily to the banks if they have the cheques
of other banks. I have to handover the cheques of MCB bank,
Standard Chartered bank, Meezan bank and other banks cheque to the
representative of Nift and receives the cheques of Bank Alfalah
F-10 branch cheques from him during official timings. The different
types of clearing cheques that come in the bank are: Inward
Clearing Outward Clearing Online Clearing Outward Bills for
Collection TransfersTransfersTransfers are conducted by Bank
Alfalah Corporate Branch Branch, using its softwareTERADATA. There
are two types of transfers:1) Internal Transfers. 2) Online
TransfersACCOUNTS DEPARTMENTAccounts department is a backend
department at Bank Alfalah Limited, Corporate Branch that performs
the following Main functions Accounts Department Human Resource
Department Foreign Currency DepartmentACCOUNTS:i) ReportsIt
generates reports like Statement of Account Activity (a report on
the activity of all accounts at Bank Alfalah, Corporate Branch),
Statement of Affairs (a report on the assets and liabilities of
Bank Alfalah, Corporate Branch), Statement of Foreign Exchange (a
report on the foreign exchange currencies at the bank) and
Statement of Profit & Loss (a report on the income and
expenditures of Bank Alfalah, Corporate Branch).These reports can
be generated at daily, weekly, monthly, quarterly or yearly basis
as required by the bank.ii) Income and ExpenseThe department also
needs to calculate the revenues and expenses, control expenditure
and forecast profits every month. And calculate the expenditure and
their taxes separately.iii) PaymentsThe accounts department is
responsible to pay vendors on behalf of the bank with authorization
from the branch manager. It also has to amortize large payments and
calculate depreciation of branch assets.iv) Activity CheckingIn the
accounts department, I had to do daily activity checking and there
are four stagesin which activity checking takes place: Collecting
vouchers, cheques etc from all departments Sorting Vouchers
Checking ActivityPacking are counted, both debit and credit and
then packed by totaling the vouchers. I worked for a week in this
department. In this department my work was to collect all the
cheques, vouchers, pay orders, demand drafts and then had to sort
out them. After sorting them i had to go through activity checking
which means to verify them with the record in the TERADATA system
and in the last pack up all vouchers and place them on the
designated places. Also I had to make and verify receipts for the
vendors.v) Internal AuditAs to be in Accounts and HRM department
and due to Audit period held during my internship so I had also
performed internal audit of last four months data for accuracy
satisfaction of whole data maintained and if there was any need for
correction or any work was not done then I had to do that work like
vouchers, ledger maintenance, reporting, supervision and signatures
of Branch Manager or Area Manager etc. It was also a great
opportunity to learn more and official work and to understand
organizational structure of that branch. CREDIT DEPARTMENTIt mainly
provide credit facility to different companies. General Manager
credit is responsible for implementing policy, Credit procedures ad
Follow ups by Bank Alfalah Pakistan. This department deals with
providing loans to the Companies and act as a revenue earning
department for the bank. The facilities under this department
includes Funded Credit Line Facility Unfunded Credit Line
FacilityTRADE FINANCE DEPARTMENTIn trade department, I had learned
about different contracts especially about Bill of Exchange. Banks
mostly deal with the documents in Trade finance Department.
Necessary documents of Trade finance requirements: Bill of Exchange
Bill of Lading Commercial Invoice Transport Documents Packaging
List Inspections Report
SWOT ANALYSISStrengthsSince, inception of Bank Alfalah, it has
moved rapidly in expanding branch network and deposit base, along
with making profitable advances and increasing the range of
products and services. Bank has made a break-through in providing
premier services at an affordable cost to customers. Bank Alfalah
has been awarded an AA- (double A minus) and an A1+ (A one plus) in
the long and short term respectively by the PACRA. These rating
denote every high credit quality and very low expectation of credit
risk. Bank Alfalah is member of very strong group which are running
success businesses like Warid, Wateen, UBL, Alfalah insurance and
others in Pakistan The main source of a financial institution is
public savings in this regard public confidence plays a vital role.
So, the confidence of customers is the main strength of Bank
Alfalah. In order to maintain an effective communication of
information regarding the need of valued clients bank has designed
its website to be as user-friendly as possible. This facilitates to
pursue the path of excellence and customer satisfaction through
delivering higher quality of services, thereby adding synergy to
our existing management expertise, financial strength and
profitability. Hence, its a channel of communication for the
delivery of quality products and services that enhance value to our
stakeholders It is engaged in convention and islamic banking while
most of its competitors are involved just in conventional
banking.Weaknesses As per Bank policy, advertising and publicity is
not extensively emphasized. Through advertisement customers could
be kept abreast with the products and services. Branch opening in
some cities has been done with less research and these branches are
not earning profit and adding to the loss of bank. BCCI image.
Giving less increments and promotions to the staff has made them
leave the firm. Opportunities Bank Alfalah has a good chance to
enter in to mobile banking as Warid belongs toits group and synergy
of both could help penetrating in the market. In the prevailing
scenario, Bank Alfalah could penetrate further and could
capturevarious corporate customers in addition to the retail
customers by expanding their network. In addition to the excellent
routine banking, it has earned a good name by offeringspecial
products like car financing, home financing and credit card. So,
the penetration of these products could enhance the market share.
Islamic banking could also attract a large number of people, who
dont want todeal with interest bearing banking. Hence, its a new
opportunity wherecompetitors are limited. Branchless banking could
increase revenues.Threats In Car Financing MCB & HBL are main
threats. Moreover leasing companies are also growing. The emergence
and well acceptance of mobile banking. Economic conditions of the
country.ConclusionThe services that Bank Alfalah provides have a
great market penetration not only because of their features but
also the profit and markup rates that they charge. Also the
products that Bank Alfalah provides cater to sector of the economy.
The top management of the bank is always developing strategies that
cope with unexpected challenges to deliver products and services
more efficiently. Furthermore, as the bank is growing, the number
of employees at Bank Alfalah are increasing, which shows that Bank
Alfalah is being considered as a an employer, that Bank Alfalah
Limited provides its employees with a challenging environment to
work in, where they can harness their full potential and shows
confidence as an employer by the employees of the bank.
RecommendationsSome 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 followsi) Innovative ProductsNew and innovative
products should be introduced by Bank Alfalah, like other bank such
as Citibank and Standard Chartered Bank develops for their
customer. For this purpose, special teams should be developed that
include professional from all departments of the banks to come with
ideas. This process will increase the number of ideas generated and
even produce innovative products for the bank that might give them
the edge.iv) Amenities in BranchThere should be a prayer room
developed in all branches as many employees want to pray, but do
not have the proper place to do it. Also work like sorting, which
takes up a lot of space should be done in a separate place and
amenities like television and internet connection should be placed
in the common room, so as to give employees a relaxing environment
when they have a break References Annual Report Bank Alfalah
(2008). Retrieved at September 22, 2013, from
http://www.bankalfalah.com/ Bank Alfalah Ltd (2013). Retrieved at
September 23, 2013, from http://www.bankalfalah.com/ State Bank of
Pakistan (www.sbp.org.pk ) Wikipedia (2013). Retrieved at September
23, 2013, from http://en.wikipedia.org/wiki/Bank_Alfalah
