Internship Report on

Internship Report on

The Bank ALFALAH LIMITED (Islamic)Supply Branch Abbottabad (1567)Submitted by: Faizal RiazRegistration #: 11-A/COM-39Supervised by: Dr.Amjad Rafiq

Government College of Management Sciences Abbottabad

SESSION: 2012-2014Internship Report on

The Bank ALFALAH LIMITED (Islamic)Supply Branch Abbottabad Submitted by: Faizal RiazRegistration #: 11-A/COM-39

Supervised by: Dr.Amjad RafiqThis 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: 2012-2014Government College of Management Sciences

AbbottabadAPPROVAL 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 PrincipalDEDICATION

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

011.1 Objective of the Study

011.2 Scope of the Study

011.3 Importance of Study

011.4 Methodology Of The Study

011.5 Limitation of Study

021.6 Scheme of the Report

02Chapter 02

Introduction to the Organization

042.1 Central Background Information

042.2 Company Background

042.3 Credit Rating

052.4 Vision & Mission

062.5 Organizational Hierarchy:

072.6 Board of Directors

08Chapter 03

Departments of Bank Alfalah

093.1 Departments Worked During Internship

093.2 Application of Class Room Learning

293.3 Product & Services

303.4 The five Cs of Credit

313.5 Learning as an Internee

32Chapter 04

Financial Analysis

334.1 Horizontal &Vertical Analysis

334.2 Horizontal Analysis of Balance Sheet

354.3 Vertical Analysis of Balance Sheet

384.4 Horizontal Analysis of Income Statement

404.5 Vertical Analysis of Income Statement

424.6 RATIO ANALYSIS

434.7 SWOT Analysis

514.8 PEST Analysis

534.9 Marketing Analysis

56Chapter 05

Conclusion and Recommendations

595.1Conclusion

595.2 Recommendations

59References

62ACKNOWLEDGEMENT

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 RiazList of Abbreviations

IDBPIndustrial Development Bank of Pakistan

SBPState Bank of Pakistan

MNCsMulti-National Companies

ADBPAgricultural Development Bank of Pakistan

L/CLetter of Credit

L/GLetter of Guarantee

ATMAuto Teller Machine

APDAssets Product Division

IPDInvestment Product Division

ITInformation Technology

BTFBalance Transferred Facility

NITNational Investment Trust

FCForeign Currency

PLSProfit & Loss Sharing

HRMHuman Resource Management

SBUStrategic business unit

NDFCNational Development Finance Corporation

RTCsRupee Travelers Cheques

AIGPAmerican International Group Pakistan

MTMail Transfer

ETDElectronic Technology Department

MISManagement Information System

FDDForeign Demand Draft

FSFinancial Statement

ETDElectronic 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.PAGE