2Nouman Asif Internship Report

8/13/2019 2Nouman Asif Internship Report

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ECONOMY ROUND-UP

The last two years have witnessed a gradual and noticeable improvement in the

economy. The upsurge in inward remittances, proactive policy initiatives on country debt

reduction, implementation of IMF program and negligible trade gap have led to a

progressive strengthening of the external account. These factors have led to a healthy build-

up of reserves and improved the investment outlook of akistan.

!t the domestic level from the financial industry"s perspective, the emphasis on

monetary policy initiated in #$$% to reflate the economy continued resulting in surplus

li&uidity in the banking sector and further lowering of interest rates.

'espite the foregoing positive catalysts to re-invigorate the economy, the real sectorcontinues to be plagued with subdued economic activity and an increase in unemployment

levels. There are multiple causative factors for the current situation as far as the real sector is

concerned. The large scale-manufacturing sector suffers from excess supply as a result of

heavy investments in the nineties. 'iscernable investment in recent times has been in

selective areas primarily oil and gas and textile exporting units. 'omestic investment by

small and medium industries seems to be hostage to investor anxiety perhaps stemming

from geo-political and domestic political risk.

Fiscal measures to compliment the expansionist monetary policy need to be

crystalli(ed and implemented to re-spark economic growth. The development of appropriate

fiscal measures, coupled with social and development spending program of )* and

sustenance of good governance by the new government will be important for the future

economic revival.

+manating from the operating environment and the monetary policy, the banking

system continues to reflect hefty investments in Treasury bills etc well in excess of the

re&uirements. In response there is a marked change in the efforts of the financial fraternity to

explore new avenues to lend/ consumer financing seems to be the flavor of the day. Factors

like skill, technology to originate and manage consumer loans in a cost effective manner,

development of a borrowing culture in individuals and evolving cost-effective legal and

collection framework and lastly 0ob creation in the economy are needed for volumetric

growth in consumer financing. The impact of this on advances will however, be felt in the

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longer term and in the interim low margins from the existing borrowing segments will

continue to pressure banks profitability.

EMERGENCE OF BANKING

The word “bank” is derived from “Bancus” or “Banque” . 1istory of banking is

traced to #$$$ 2.3 in )reece. riest and )oldsmiths acted as financial agents by keeping

money and valuables of people in temples in strong safes. Thus, the first stage in the

development of modern banking was accepting of deposits of cash from those who had

surplus money with them.

The )oldsmiths issued receipts for the money deposited with them, which began

to pass from hand to hand in settlement of transaction as people had confidence in the

integrity and solvency of goldsmiths. The receipts were drawn on a way that it entitled

the holder to claim that specified amount of money from goldsmiths. These receipts were

the earlier bank notes. Thus the second stage in the development of banking was the

issues of bank notes.

The goldsmiths discovered all the people who had deposited money did not come

to withdraw their finds in cash, only a few people presented the receipts for encashment

during a given period of time and they also found that most of the money deposited with

them was lying idle. They also found they were being constantly re&uested for loan on

good security. They thus thought it profitable to lend at least some of the money with

them to needy persons. This proved profitable for them. Instead of charging interest from

deposits, they began to give them interest on money deposited with them. This was the

third stage in the development of banking.

Through experience, banks came to know that they could keep a small proportion

of total deposits for meeting demands of customers for cash and could easily lend the

rest. They allowed deposits to draw over and above than the money standing to their

credit. They thus allowed the overdraft facility to their deposits and this was the fourth

stage in the development of banking. +very bank issued receipts and most allowed

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overdraft facility and this caused too much confusion the systems. In order to earn profits,

banks did not keep ade&uate reserves to meet demands of customers for cash. This failure

on the part of bankers to return money caused widespread distress among people.

In order to create confidence among the people, steps were taken to regulate the

banking. ! conference was held in 4uremberg in %567 where it was decided that a bank

should be set up by the state, which would streamline the banking organi(ation and

techni&ue. The first central bank was thus formed in )eneva in %896. The responsibility

of issuing notes is now entrusted to a central bank in each country.

:ith passage of time, activities of commercial bank increased. They dealt with

large number of issues such as obtaining funds, advancing loans to business, farmers,

households, making investment in stocks, discounting bills of exchange etc. commercial

banks are now multi-service organi(ations and play a very important role in financial

markets.

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OVERVIEW OF THE FINANCIAL SECTOR IN PAKISTAN

The history of banking system in akistan dates back to independence of akistan in

!ugust %96< when various banks transferred their 1ead =uarters and funds to areas likely to

fall in India. This trend emerged due to dominant role of 1indus in pre-partitioned Indian

banking system.

!ccording to various books there were ;698 branches of Indian scheduled banks in

the undivided sub-continent as on %st March %96< out of which only 67< branches were

located in areas presently constituting akistan. 1owever the number of scheduled banks

drastically declined to %95 from 67< immediately after partition.

!t the time of partition there were only two banks having the honor to be first

commercial bank of akistan namely 1abib 2ank td., which was set up in %96% with its

1ead *ffice in India and the !ustralasia 2ank td., which was established in %966 with its

1ead *ffice in akistan.

2y following the partition, an expert committee was set up and this committee

recommended that the eserve 2ank of India being the 3entral 2ank of the undivided India

should continue to function as 3entral 2ank of akistan and the Indian currency notes

would continue to be legal tender in akistan till ;$th eptember %967. ubse&uently it was

decided to have separate 3entral 2anks and the tate 2ank of akistan was set up and

started functioning from %st >uly %967.

Thus the history of 2anking system in akistan started with the establishment of the

tate 2ank of akistan which was inaugurated by =uaid-e-!(am Mohammad !li >inah on

%st >uly, %967. 3onse&uently three banks were established which include Muslim

3ommercial 2ank td. formed in eptember %967. 2ank of 2hawalpur in *ctober %967 and

4ational 2ank of akistan in %969. 1abib 2ank also transferred its 1ead *ffice from

2ombay to ?arachi due to partition in !ugust %96< and it was assisted by the tate 2ank to

finance domestic trade of the country.

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BANK ALFALAH LIMITED

2ank !lfalah imited was incorporated in >une #%st, %99< as a public limited

company under the 3ompanies *rdinance %976. Its banking operations commenced from

4ovember %st ,%99


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upgrade the &uality of service to the customers, training of team members in all the

integral aspects of banking, customer service and IT was specially focused.

The portfolio concentrates on all aspects of conventional banking as well as the

financial needs of corporate sector. 'ynamic and high value product includes 3arFinancing, 1ome Financing, upee Travellers 3he&ues, 3redits 3ards, 'ebit 3ards, *n

line 2anking, !TM and consumer 'urables. In addition to this, Islamic 2anking 'ivision

is a recent initiative, which operates as separate branch. It offers hariah 3ompliant

products through a network of five branches, which will increase to 5$ by the year #$$


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<

V I S I O N

“To be the premier

organizations operating locally

and internationally that

provided the complete range of

financial services to all segments

under one roof”


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7

MISSION

“To develop and deliver the

most innovative products,

manage customers experience,

deliver quality service that

contributes to brand strength,

establishes a competitive

advantage and enhances

profitability, thus providing

value to the stakeholders of the

bank


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BOARD OF DIRECTORS

H.E. Sheikh Hamdan Bin Mubarak

Al Nahayan

Chairman

Mr. Mohammad Saleem Akhtar

Chie E!e"#$i%e Oi"er

Mr. Abdulla Nasser

Hawalileel Al-Mansoori

Mr. Abdulla halil Al Mutawa Mr. !kram "l-Ma#eed Seh$al

Mr.halid Mana Saeed Al %taiba Mr. Nadeem !qbal Sheikh

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MANAGEMENT

3hief +xecutive *fficer

+xecutive Incharge

trategic lanning @ )lobal

Marketing

+xecutive InchargeInternational @Treasury 'ivision

+xecutive Incharge

1uman esources 'ivision

+xecutive InchargeIT 'ivision

+xecutive Incharge

3redit 'ivision

+xecutive Incharge

ystem @ *peration 'ivision.

+xecutive Incharge

+stablishment @ !dministratration

+xecutive Incharge

3redit Monitoring 'ivision

+xecutive Incharge

2usiness 'evelopment 'ivision.!.M.A 3ar FinanceA easing

+xecutive Incharge

egal !ffairs 'ivision.

+xecutive Incharge

!udit @ Inspection 'ivision

+xecutive Incharge

Finance 'ivision

+xecutive Incharge

3orporate 2anking,M+ Financing @ 1ome oans

+xecutive Incharge

Islamic 2anking 'ivision

+xecutive Incharge

4ew roducts @ervice =uality 'ivision

+xecutive Incharge3ards 'ivision

%$


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NETWORK OF BANK ALFALAH LIMITED IN PAKISTAN

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The detail of 2ank !lfalah 4etwork in over akistan is as underB

Sr. No. Branch &hone Number

KARACHI

%. Main 2ranch

2.!. 2uilding, I.I 3hundrigar oad, ?arachi

%%%-


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#$. Township 2ranch, ahore $6#-5%%6


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;


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5. Islamic 2anking Dni Tower 2ranch

D4I Tower, I.I 3hundriger oad, ?arachi

$#%-#6


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ORGANI'ATIONAL STRUCTURE

Pre&i(en$ )CEO*

Seni+r E!e"#$i%e Vi"e Pre&i(en$

E!e"#$i%e Vi"e Pre&i(en$

Seni+r Vi"e Pre&i(en$

Vi"e Pre&i(en$

A&&i&$an$ Vi"e Pre&i(en$

Oi"er& Gra(e I, II, III

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Ceri"a S$a N+n-Ceri"a S$a

3ashier Typist 3lerks @ )uards Messengers

!ssistants

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GOALS . OB/ECTIVES

)oals and ob0ectives are factors through which the company"s devotion and

commitment to the 0ob can be seen. If the goals are realistic and achievable, than surely

that organi(ation is doing it"s 0ob.

2ank !lfalah also has certain goals and ob0ectives which it is trying to achieve,

through it"s various strategies and operations. The goals and ob0ectives are mentioned

belowB

%. To create a sound base, and through efficient systems achieve modern

banking through out akistan.

#. 2y the end of every accounting year there is an increase in deposits. !s

the deposit rate of during #$$# was approx 5# Million and the same has

been increased in #$$; by


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STRATEGIES

2ank !lfalah has formulated certain sets of strategies to enable it to achieve its

goals and ob0ectives. These strategies are mentioned belowB

%. In order to achieve it"s goals of creating a sound base and presence of efficient

modern banking system, 2ank !lfalah has started operation of !utomated Teller

Machines in all the ma0or areas like ?arachi, ahore, Islamabad and other cities of

akistan.

#. 2ank !lfalah is committed to building long-lasting relationships through an

assertion to service excellence and providing innovative products to meet the changing

needs of our valued customers. !lthough still in its infancy, compared to the exalted

banking standards, 2ank !lfalah, backed by a strong !bu 'habi )roup and inspired by

the vision of its 2oard and Management, has built up a strong customer base. The 2ank

provides a full range of banking services to corporate clients, while applying leading

technologies. Today the 2ank is well-positioned to provide appropriate banking services

to customers.

;. The main focus is building relationships and being known by the way they do

business. Management recogni(es that a banking relationship re&uires compatibility,

communication, and cooperation and that each customer deserves nothing less than full

attention and available resources to meet their financial ob0ectives.

6. 3ore value and corporate culture is based on the belief that superior personali(ed

service is the most important product. 2ank is in the process of getting to know

customers by name and understand their business and personal financial needs. This one-

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on-one, personali(ed service &uality has served as 2ank !lfalahEs uni&ue signature since

inception and continues to separate it from other financial institutions.

5. The 2ank !lfalah team comprises of some of the most highly skilled and

professional financial experts in banking industry. Managers, lenders and trust advisors

offer the uni&ue perspective of knowing and understanding in the local economy. The

Management focuses its attention on making informed and feasible economic decisions,

bringing better returns and more profitability for investors and customers.

8. ?eeping in view the unrest among the Islamic 3ommunity on the Interest 2earing

2anking the !lfalah is in the process of target marketing and gives its full attention to

this segment of a large population over the world.


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ACCOUNTING POLICIES

2ank !lfalah is a scheduled commercial bank and is principally engaged in the

business of bak as defined in the 2anking 3ompanies *rdinance, %98#.

Ba&i& + Pre&en$a$i+n

In accordance with the directive of the Federal )overnment regarding the shifting

of the 2anking system to Islamic modes, the tate 2ank of akistan has issued various

circulars from time to time. *n permissible form of trade related mode of financingcomprises of purchase of goods by the banks from their customers and resale to them at

appropriate mark-up in price on deferred payments basis. The purchase and slaes arising

under these arrangements are not reflected in these accounts as such but are restricted to

the amount of facilities actually utili(ed and the appropriate portion of mark-up thereon.

A""+#n$in0 C+n%er&i+n

These accounts have been prepared using the historical cost convention in

conformity wit the accepted practice of banking institution in akistan.

Fi!e( A&&e$&

O1ne(2 Fixed assets are stated at cost less accumulated depreciation. 'epreciation

is computed over the estimated useful lives of the related assets at varying rates and

methods depending on the nature of the assets.

The cost of the assets is depreciated on the diminishing balance method, except

for vehicles, carpets and renovation costs of leased premises, which are depreciated on a

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straight-line basis. 'epreciation is charged for the full month on purchaseAac&uisition of

assets while no depreciation is charged in the month of disposal of an assets.

Maintenance and normal repairs are charged to income as and when incurred.

Ma0or renewal and improvements are capitali(ed. )ains and losses on disposal of fixedassets are taken to the profit and loss account.

Lea&e(2 !ssets held under finance lease are accounted or by recording the assets

and the related liabilities at the amounts determined on the basis of lower of fair value of

the assets and present value of minimum lease payments. Finance charge is allocated to

accounting periods in a manner so as to provide a constant periodic rate of charge on the

outstanding liability. 'epreciation is charged on leased assets on the basis similar to that

of owned assets.

In%e&$men$

Investments are stated at cost, net off provisions made for diminution in value.

rofits and losses on sale of investment are dealt with through the profit and loss account

in the year in which they arise.

A(%an"e&

!dvances are stated net off provisions for bad and doubtful debts. pecific and

general provisions for bad and doubtful debts are determined by the management kepping

in view the re&uirements of the rudential egulations issued by the tate 2ank of

akistan.

F+rei0n C#rren"ie&

!ssets and liabilities in foreign currencies have been translated into ak upees at

the rates of exchange approximating those ruling at the 2alance heet date except those

covered by forward exchange contracts which are converted at contracted rates.

+xchange gains and losses are included in income currently.

Ta!a$i+n

rovision for tax is based on applicable rates of tax after taking into account tax

credit available, if any.

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The 2ank accounts for deferred tax, if any, taking into account ma0or timing

differences, using the liability method. 1owever, deferred tax is not provided it can be

established with reasonable probability that the timing differences will not reverse in theforeseeable future.

Re%en#e Re"+0ni$i+n

Income is recogni(ed on accrual basis.

#;


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P R O D U C T S

COMPREHENSIVE AND DIVERSIFIED PRODUCT PORTFOLIO

:ith the mission to provide all-encompassing banking services to the customers,

2ank !lfalah has a uni&uely defined menu of financial products. 3urrently it is one of the

most comprehensive portfolios of personali(ed financial solutions that are custom-

tailored to serve the re&uirements not only of conventional customers but also fulfill the

needs of the corporate sectorB

3ar Financing

upee Travellers 3he&ues

*nline 2anking

3redit 3ards

!TMs

1ome Financing

Islamic 2anking

3orporate and tructured Financing

Car Finan"in0

3ar Financing is one of the ma0or renowned product of 2ank !lfalah and can be

utili(ed in terms of Financing of Dsed Gehicles, oan against 3ar, 2alance Transfer

Facility, efinancing Facility Honly for !lfalah 3ustomers and it is characteri(ed in

terms ofB

owest Mark up

ower Insurance

=uick rocessing

ower 'own ayment

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H+me Finan"in0

Ma0or features of 2ank !lfalh 1ome Financing are

owest Mark-up, =uick rocessing, Multiple epayment

*ptions and Free Galuation. It has been bifurcated in terms

of J1ome 2uyer, 1ome 3onstruct, 1ome Improver, 1ome

2alance Transfer FacilityK.

Financing imit B upto s. %$,$$$,$$$A-

Tenure B upto #$Cears

+&uity articipation B ;$L 2orrower A


26/40

2ank !lfalah imited presents !lfalah 1ilal3ard, the first Gisa +lectron

International 'ebit 3ard which gives an unlimited access to current A savings account

with a simple swipe, at millions of retail shops and !TMs, worldwide. The !lfalah 1ilal

3ard comes with a host of conveniences and benefits combined with the wide reach of

Gisa 4etwork enabling it to be accepted at more than 76$,$$$ !TMs and %; million

retail outlets around the world, making it the most acceptable 'ebit 3ard available in

akistan.

On Line Ban6in0

To provide enhanced and

value added products to customer

bank is constantly striving for

additional facilities. 2ank provide

fully automated on-line telephone

banking facilities to its customers

enabling them to carry out banking

transactions like balance in&uiries,

statement re&uests, product information and exchange rate.

A#$+ma$e( Teer Ma"hine )ATM*

The bank offers #6 hours self service banking facilities to it customers on country

wide basis through deployment of !utomated Teller Machine. This system allows the

banking facilities such as cash withdrawls, cash deposits, funds transfer, balance

in&uiries, account statements. +lectronic cash dispensing facilities are available in ma0or

cities of akistan. !ll !TMs are linked through a state-of-the-art atellite 2ased

3ommunication ystem which offers #6 hours real time service.

I&ami" Ban6in0

! separate division is a recently initiated, which operates as separate branch. It

offers hariah 3ompliant products through a network of five branches, which will

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increase to 5$ by the year #$$


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BOSTON CONSULTING GROUP )BCG* MATRI7 FOR THE SBU8S

MARKET SHARE

G R

O W T H

R A T E HIGH LOW

H I

G H Car

Financing

Home

Financing

Online

Banking

Islamic

Banking

ATM

Debi Car!

L O W

De"osis

In#esmens

Cre!i

Car!s

R$"ee

Tra#elers

C%e&$es

#7


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ENVIRONMENTAL ANALYSIS

!ny environment which interacts with the functions and operations of a company,should be properly studied and evaluated so that the environment only benefits the

company rather than affecting it negatively. ike other institutions, 2ank !lfalah also has

an environmental effect on its functions. 2asically two types of environment effect the

bank operations, policies and strategies.

Mi"r+ En%ir+nmen$

Microenvironment is in fact the internal environment, which ahs an effect on the

functions of the bank. Micro environment of 2ank of !lflah consiss ofB

%. 'eposits

#. !dvances

;. 3ompetitors

9: De3+&i$&

'epositors are the main source of profit generation for

the bank. !lflah offers depositors number of incentive by

virtue of which they too care make same money. !lflah relies

on depositors @ workers to increase their volume every year.

This is evident from the fact that the growth rate increased

67.6$L during #$$#-$;, as this growth rate is satisfactory it is

a must that this environment of deposit growth should not

decline.

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;: A(%an"e&

!dvances are basically what !lflah give to people asking for money. If there shall

be more people depositing money. There will be more asking for advances as well. 2anks

tend to make profit by giving advances at a rate higher than what they owe to thedepositors. The difference is the banks profit. If the environment is healthy then more @

more people will be asking for advances for business and other options. It is also evident

from the fact that during the year #$$#-$; the advances growth rate is


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HUMAN RESOURCE MANAGEMENT

H#man Re&+#r"e Pannin0

!t 2ank !lfalah imited, 1uman esource lanning involves a decision making

in three areas of combined activitesB

Ste'-! The bank identifies its organi(ational needs and then ac&uires a

right king of human resource accordingly.

Ste'-!! 2ank motivates them to achieve excellent performance by giving

them different sorts of targets according to their 0ob re&uirements.

Ste'-!!! It also creates an interactive link between the employee goals and

the organi(ational goals.

/+5 De&"ri3$i+n

It is descriptive in nature and constitutes a record of existing and additional 0ob

facts. The order of 0ob description is as followsB

• >ob identification

• >ob summary

• 'uties performed

• upervision given and received

Re"r#i$men$ an( See"$i+n

2ank !lfalah imited recruits three kinds of employeesB

%. Top evel Management

#. Trainee *fficers

;. 3ontractual 2asis +mployees

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Trainin0 an( De%e+3men$

In 2ank !lfalah td. the process of Training and 'evelopment consists of various

other activities likeB

a. (rainin$)

i. The appraisal form of an employee indicates the areas in which the

employee should be trained and developed. It also elaborates the

abilities of an employee.

ii. Management and *rgani(ation 'evelopment 'ivision of each region

timely reviews the employees and recommends them for training

during the operations it they note any discrepancy between the desired

and actual performance. This review is performed after every &uarter.

iii. Dpon the re&uest of )M H*peration, indicates which sort of training

is needed in a particular region regarding the *peration upport and

ervice

b. *e+elo'ment)

i. Management Skill Training,

ii. Special Training for oreign Transferred !mployees,

Per+rman"e A33rai&a2

It is a structured discussion between employee and supervisor. It provides an

opportunity for the supervisor to recogni(e an employee"s achievement, offer suggestions

for improvement when needed, discuss 0ob responsibilities, define ob0ectives, counsel forcareer advancement, and 0ustify a pay ad0ustment. egarding the performance appraisal,

bank adopts both type of approaches.

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a. (raditional A''roach)

The traditional approach is primarily concerned with the overall

organi(ation and its past performance. In 2ank !lfalah, overall

performance is reviews at branch level. +ach branch is liable to show its

performance in a positive direction according to set goals.

b. *e+elo'ment A''roach)

This approach viewed the employees as individuals and has been forward

looking through the use of goal setting. !ll the employees in the each of

the branches are given a performa. +very employee working in the bank is

assigned targets, usually their target are in the form of amount. The

performances of all the branches are reviewed in the end of 'ecember.

Till yet 2ank !lfalah, has no computeri(ed system to assess the

performance of employees

Per+rman"e A33rai&a Pr+"e&&2

The performance appraisal process in the 2ank !lfalah td. consists of four inter-

related stepsB

i. +stablish a common understanding between the manager Hevaluator and

employee Hevaluate regarding work expectations, mainly the work to be

accomplished and how those work are to be evaluated.

ii. +stablish ongoing assessment of performance and the progress against

work expectation.

iii. Formal documentation of performance through the completion of a

performance and development appraisal form appropriate to the 0ob

family.

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iv. The formal performance and development appraisal discussion, based on

the completed appraisal form and ending in the construction of a

development plan.

Re1ar( Mana0emen$

eward Management elaborates how people are rewarded in accordance with

their value to an organi(ation. It is concerned with both financial and non-financial

rewards. ! reward system of an organi(ation consist of integrated policies, processes and

practices for rewarding its employees in accordance with contribution, skill and

competence and their market worth.

In 2ank !lfalah the elements of reward management system are consists of Basic

&ay, the fixed salary or wage which constitutes the rates for the 0ob. This rate is varied in

a skill based or competence based system according to the individual"s skill or

competence. The rates are fixed by managerial 0udgement of what is re&uired to recruit

and retain the employee.

In 2ank !lfalah there is no any concept of individual performance related pay

except to the 2usiness 'evelopment *fficer. 2usiness 'evelopment *fficers are those

who are hired at contractual basis. They are assigned different targets. If they exceed to

the targets they can en0oy the individual performance related pay otherwise they are fied.

There is no concept of bonuses, commission or over time related pay. The official

timing of bank is $9.$$ !M to $8.$$ M but almost all of the employees have to work till

near $7.$$ M. 1owever, for this additional work they are not getting any additional

bonuses A over time.

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S W O T A N A L Y S I S

STRENGTHS

ince, inception of 2ank !lfalah, 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 have made a break-through in providing premier

services at an affordable cost to our customers.

2ank !lfalah has been awarded an !!- Hdouble ! minus and an !% H! one

plus in the long and short term respectively by the !3!. These rating denote very

high credit &uality and very low expectation of credit risk.

The main source of a financial institution is public savings in this regard public

confidence plays a vital role. o, the confidence of customers are the main strength of

2ank !lfalah.

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 &uality of services, thereby adding synergy to our existing management

expertise, financial strength and profitability. 1ence, it"s a channel of communication for

the delivery of &uality products and services that enhance value to our stakeholders.

WEAKNESSES

!s per 2ank policy, advertising and publicity is not extensively emphasi(ed.

Through advertisement customers could be kept abreast with the products and services.

The main focus of 2ank is ma0or cities of akistan. It is direly needed to extend

its network and people should be educated about the functioning of bank. ince, 2ank

!lfalah has strong set up in D!+ and Middle +ast, therefore, specifically those areas of

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akistan should be targeted where large number of people are working abroad. 1ence,

bank could avail an excellent deposit rate by using its annual budget specified for

network extension.

OPPORTUNITIES

The life cycle of an organi(ation is comprised of threats as well as opportunities.

If we say, today the rates of challenges are too high but simultaneously the rate of

opportunities is also high. It is mandatory to try to make progress with consistency as

well as to adapt changes with the needs of time, in order to cope up with both conditions.

In the prevailing scenario, 2ank !lfalah could penetrate further and could capture

various 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 offering

special products like car financing, home financing and credit card. o, the penetration of

these products could enhance the market share.

In the rapidly growing industry of akistan, launching of another 2D, Alwarid Mobile will be an excellent addition towards the credibility as well as enhancement of

2ank !lfalah"s market share.

2ank !lfalah has launched another division known as !slamic Bankin$ . This new

aspect will also attract a large number of people, who don"t want to deal with interest

bearing banking. 1ence, it"s a new opportunity where competitors are limited.

THREATS

:hile doing business, threats are part of the game. +specially, in this era, most of

the financial institutions are working as rivate imited 3ompany and facing or have a

fear of threat from their competitor as well as new entrants.

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In order to maintain as well as to enhance the market share, banks always try to

introduce new schemes A packages. 1ence, the environment is very much innovative and

adaptive to the needs of customers.

Though 2ank !lfalah has a strong footing and maintain a good number of loyalcustomer, still bank has threats in various sectorsB

a. In ar inancin$ M32 @ D2 are threats however, the expected

car financing of !24 !mbro could also be a threat for 2ank !lfalah.

b. In Home inancin$ Dnion 2ank or to some extent 42 are

threats.

c. In credit cards, 2ank !lfalah captured the market share of 3iti

2ank and tandard 3hartered 2ank. Till yet the bank has no prominent

threat. 2ut, the launch of !skari 2ank Master 3ard and Dnion 2ank 3ard

might be threat after some time.

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MANAGERIAL PRACTICES

A00re&&i%e Ban6in0

2ank alfalah expanding their network of Islamic 2anking. 2ank !l 2araka has been

serving the Islamic banking sector since %$ years and they have only 5 braches in

akistan. *n the other hand bank !lfalah has established #$ branches in a year.

M+$i%a$i+n

2ank !lfalah motivating their employees by giving them comprehensive benefits and

professional environment within the organi(ation, which enhances the performance of the

employees. 2ank motivates their employees by giving ; bonuses in a year.

BENEFITS

M+ni$+r= Benei$&

Monitory benefits are given to the employees on the basis of their performance like salary

rise, cash pri(e.

Gra(e Pr+m+$i+n

2ank also provides benefit to their employees in the form of grade promotion. )rade

promotion motivates the employee to do their work efficiently and effectively.

A5r+a( P+&$in0

2ank benefit their employees by sending them on overseas posting where they can

enhance their professional skills and get handsome financial benefits in terms of salary or

fridge benefits.

C+n$r+in0

2ank has proper setup of controlling the day to day transactions and operational affairs.

2ank controls the operations through a proper check and balance system and properly

monitor the daily work.

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In$erna C+n$r+ Uni$

2ank has an Internal 3ontrol Dnit that monitors the daily transactions within the

organi(ation and keeps informing the management about the rules and policies violation.

Internal control unit has a proper check and balance on operations and other bank

departments.

In$erna A#(i$

Internal audit is a tool to have a proper check on daily working in a bank. Internal auditor

has to point out the discrepancies found during audit. Internal auditors hand over the

audit report to the audit chief and he hand over that to the management. Management

overlook all the discrepancies and try to reduce the violation and also took the necessary

actions. Internal audit conducted in a bank twice a year.

E!$erna A#(i$

+xternal auditors are the representatives of state bank of akistan. tate bank assigned

them to audit the banks the find out the lapses or discrepancies according to the rules and

regulations of state bank of akistan. tate bank imposed penalty on bank if they found

any discrepancies related to banking practices or procedures. +xternal auditor hand over

the audit report to state bank of akistan and 2 handover the report to the management

along with the debit advice in form of penalty and management overlook the

discrepancies and take necessary actions. +xternal audit conducted once in a year. 2ank

!l Falah has a 3hartered !ccountant 3ompany on his panel who prepare and overview

the financial reports of the bank Taseer 1adi @ 3o. is a chartered firm which is on the

panel of 2ank !lfalah.

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>

CUSTOMERS PROBLEMS

It seems that the priority is given to the corporate customers in 2ank !l Falah as the

individuals from middle class have to remind the management of certain branch to do the

needful for them. 3ustomer is the king and customer always right. 2ank is earning profit

from the customers. 2ank should have a proper relationship with corporate as well as

individual customers. It is recommended that the management should stress on having

satisfactory relationship with individual customers because they can also provide the

revenue in term of profit.

EMPLOYEES PROBLEMS

9 Ini"ien$ Em3+=ee&

To compete in the banking industry 2ank !l Falah should have enough

employees to facilitate the customers, and divide the workload of the existing

employees by hiring new people, because the bank cannot use the alternative

to reduce the number of customers and loosing the market share.

; W+r6in0 H+#r&

2ank !l Falah although providing the customer service in better way but there

is a lot of work to do in a routine banking to the employees due to which they

work for long time. Management should gave relaxation to the employees by

hiring new professionals and reduce the working hours.

2Nouman Asif Internship Report

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