Bank Alfalah 2.Doc

MANDI BHAU DIN BRANCHKAICHAIRY ROAD, MANDI BHAUD DIN PAKISTAN.Phones: (92 – 546) 520922 – 46 Web Site: www.bankAl-Falah.com

SUBMITTED TO

HonorableSir SAJID NAZEER

Lecturer COMSATS Institute of Information Technology,

Lahore.

SUBMITTED BY

SHAMSHER KHAN CIIT/Spo4-BBA-036/LHR

Lahore CampusDefence Road off Raiwind Road, Lahore

Ph No. 5321090, 9203101 Ext. 215

http://www.bankalfalah.com/

ACKNOWLEDGEMENT

. All praises are for Allah almighty that has bestowed upon human being the crown of creation and has endowed him with knowledge and wisdom. After Allah, is the last prophet Mohammed (SAW) who brought for us revelation and unlimited knowledge and civilized the barbarian human being.First of all this report owes it originated to the valuable assistance of our learned & honorable teacher sir sajid nazir whose able guidance and encouraging attitude throughout has been a source of inspirations for us. Without his kind attitude patronage, we would have never accomplished this task. I am also thankful to the staff of Bank Al-falah M.B.DIN Ltd especially to Sir shazad warich.Mr. khurram ghori (forign exchang officer), Mrs. Qurat ul ain, Mr. masood paracha, Mr shzad bhatti, Mr. Ahtsaham and mamlook ranjha.My special thanks to all my teachers and seniors who provided me with their kind guidance at each and every step whenever I felt difficulty and he made me capable of making sowt analysis

SHAMSHER KHANCIIT/Spo4-BBA-036/

LHR

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PREFACE

The requirement of internship for BBA(HONS) is met by professional program by involving a combination of theoretical education and practical training. It gives student with skill, knowledge and professional values, sufficient for performing as qualified professional and to continue to grow in their career through an unending process of learning to learn.Our department of management of sciences has been seized with the need for developing training regulation, which not only cater for the above stated requirements but would also help in providing experience to trainees to meet the future needs of the market place.

In this concern I was given an opportunity to having 6 weeks training in today’s well reputed ALFALAH BANK M.B.DIN. And sir sajid nazeer is guide me during my internship. During my whole time I was visited through different departments of the bank and was thoroughly briefed about the procedure and working by cordial senior staff of there. My report is all based on what I have learnt there. I hope that my report will given you good overlook of all the banking related matters.

SHAMSHER KHANCIIT/Spo4-BBA-036/

LHR

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TABLE OF CONTENTS

acknowledgement...................................4

preface....................................................5

Table of contents....................................6

EXECUTIVE SUMMARY.........................8

what is BANK?......................................11

types of BANKs.....................................13

List of BANKs in pakistan.....................15

history of BANKing in pakistan............16

state BANK of pakistan........................18

nift - national institutional facilitation technologies 23

islamic BANKing in pakistan................25

the bank Al-Falah limited.....................26

Title, Logo and slogan..........................28

vision and mission statement...............29

head office at glance............................30

boardof directors..................................31

chairman’s messege.............................32

management of bank Al-Falah..............33

Bank Al-Falah branch network.............34

departments of Bank Al-Falah..............35

account opening department................36

remittances department.......................50

clearing department.............................62

accounts department............................70

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cash department...................................73

finance/credit department....................76

credit card department........................91

trade finance departments...................95

swot analysis......................................102

learning and experience.....................109

conclusion...........................................113

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EXECUTIVE SUMMARY

The internship requirement in the degree of Bachelor in Business Administration led me to experience an exciting and professional exposure to BAL as an interne. I completed my 6 weeks internship at BAL M.B.DIN Branch MANDI BHAUD DIN. The Bank is currently operating through 200 branches and 100 ATM, with the registered office at B.A.Building, I.I.Chundrigar, Karachi.Efforts have been made to compile this report in such a way that activates its salient features not only for students but also for the layman. I have divided this report into different department information On the very first day of my internship I reported to Operation Manager Mr. SHAZAD WARRIACH. He gave me small introduction of the bank and introduced me to the staff of the bank. Every internee is rotated among the bank’s departments and so was I. This rotation is done in order to have general concept regarding bank’s functions, operations and policies. In this rotation the stay in department is usually a week. I have learned more about the Bills and Foreign Trade department and have given below the caption of activities I was involved in during the period of six weeks.And during my internship I have rotate different department and gernal banking is

1-Account opening Department

2-Remittance Department

3-IT Department

4-Accounts Department

5-Credit Department

BAL M.B.DIN provides various type of accounts to customer in these account current account, saving account, royal profit account are most prominent. All parties are getting benefit from them whether individual, sole proprietorship, and partnership, private or public limited companies. Remittance department deals with DD/TT/MT Pay order. Advances or Credit department provide fund base and non fund base facilities to its clients. BAL M.B.DIN also facilitate their customer through on-line money transfer one branch to other branch.

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BANK HISTORY

History of bank is very old, the history of bank is traced to as early as 2000 B.C. The

priest in Greece used to keep money and valuable of the people in temples. Its origin

is also traced to early goldsmiths. They used to keep strong safe, for storing the

money and other valuable of the people. People with surplus money deposited with

them. The first stage in the development of banking was the acceptance of deposits

from people.

Later on goldsmiths began to issue receipts for the money deposited with them to

settle transactions. These receipts were used in payment of debt and acceptable to

all. This was the second stage towards the development of banking.

When goldsmiths realized that they had surplus money therefore they intended to

lend some portion of money to he nearly traders and merchants who constantly

requested for loans This business was quiet profitable and they instead of charging

interest from depositors began to give interest on the money deposited with them to

attract more people this was the third stage towards the development of banking.

They also planned to allow the customers to withdraw in excess of the amount

deposited to meet the customer’s needs. This facility is called overdraft and they

used to keep some portion of money for this purpose. After some time there was

then started too much confusion in the banking system and they were not able to

Meet the demands of customers. This failure on the part of money lender to return

money caused distress among the people.

To overcome this problem people felt that their must be a bank which control the

banking activities of different lending organization. As a result of conference held in

1548 at Nuremberg. The decision was taken in favour of establishing a bank that

regulates the banking activities.

The first bank was found in Geneva in 1587. Later on many other banks were

established will the same objective.

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We can conclude that commercial banking system actually developed in nineteenth

century. Now a days the banking activities has greatly increased commercial banks

are now multi serviced organizations and play an important role in financial markets

and in the economic development of the country.

TYPES OF BANKS

1. Central bank or state bank.

2. Commercial bank.

3. Exchange bank.

4. Industrial bank.

5. Agriculture bank.

6. Investment bank.

7. Saving bank.

CENTRAL BANK

Every country has its central bank or state bank. Its major function is to carry out a

country’s monetary policy with an aim to safeguard its financial and economic

stability. It has the monopoly of note issue. It is also the custodian of money market.

State bank is the Banks bank and lender to the government.

COMMERCIAL BANK

Commercial banks are profit earning concerns. They receive deposits and advance

loans to the borrows. They greatly help in financing for internal and external trade of

the country.

EXCHANGE BANK

The main function of the exchange bank is to finance the foreign trade by the

purchase and sale of foreign currencies in the form of drafts, bills of exchange,

telegraphic transfers. They also perform the function of commercial bank. Receiving

deposits and advancing loans.

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INDUSTRIAL BANKS

Commercial bank cannot afford to block their funds in long term investments. The

industrial banks receive long term deposits and finance the industries by providing

them long term credits. In Pakistan the Industrial bank named as Industrial

Development Bank of Pakistan (I.D.B.P) was established in 1961 for this purpose.

AGRICULTURAL BANK

Agricultural bank provides short and long period loans for financing agriculture. The

agriculturists need short and long term loans for meeting their day to day and long

term requirements for making permanent improvement in the land. In Pakistan

Agricultural Bank is named as Agricultural Development bank of Pakistan (A.D.B.P)

and it was established in 1961.

INVESTMENT BANK

The main function of investment bank the merchandising of shares and other

securities, managing and distributing the issue of shares and other securities.

SAVING BANKS

These are the institutions which are sponsored by the government for having

facilities to the people and small means. These bank collect small saving of people

and allow them to withdraw in small amounts. Also another institution i.e. National

Savings is working in the same capacity.

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NIFT-NATIONAL INSTITUTIONAL FACILITATION TECHNOLOGIES

NIFT-National Institutional Facilitation Technologies (Pvt.). Ltd. was incorporated in

September 1995 as joint venture between a consortium of six banks and

entrepreneurs from the private sector. All commercial banks and all of branches in

major cities avail NIFT’s services. As of June 2005, 43 commercial banks and their

3000 branches in 9 major cities utilize NIFT’s services.

NIFT has setup elaborate data centers geared to provide automated services for

document processing particularly in the payment arena. Modern image based

facilities have been established at Karachi, Lahore, Islamabad, Peshawar,

Rawalpindi, Hyderabad, Multan, Faisalabad and Quetta. The services include

cheques clearing, collection & delivery, reconciliation, ‘return’ (unpaid) cheques

processing, same day clearing (express – 2 hrs. clearing service), intercity clearing

and inter branch & inter bank settlement. Services are provided at individual branch

level to over 3000 branches in nine major cities and 30 smaller cities.

NIFT also provides exclusive item processing services to financial institutions and

turnkey clearing preparation support to selected banks.

NIFT, e-TRUST a division of NIFT is a Certification Authority of Pakistan.

This division has establishes facilities to provide PKI (public key infrastructure) based

security solutions for e-business, e-commerce, e-banking and e-government as an

affiliate of VERISIGN Inc USA and WORLDeTRUST, Geneva.

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ISM - NIFT has incorporated an wholly owned subsidiary ‘Image Systems

Marketing (Pvt.) Ltd.’ (ISM) to offer image archiving and data warehousing services

to large corporations. For this purpose reseller agreements have been signed with

corporations in USA and Europe to offer services in Pakistan, Bangladesh, Gulf and

Middle East.

TITLE, LOGO AND SLOGAN

Title of Bank Al-FalahTitle of Bank Al-Falah

Logo of Bank Al-FalahLogo of Bank Al-Falah

Slogan ofSlogan of Bank Al-Bank Al-

FalahFalah

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VISION AND MISSION STATEMENT

VisionVision

Mission StatementMission Statement

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HEAD OFFICE AT GLANCE

Head Office of Bank Al-FalahBank Name: Bank Al-Falah

URL: http://www.bankAl-Falah.com/

Email [email protected]

STREET B.A. Building, I.I. Chundrigar Road

CITY Karachi

STATE Sindh

COUNTRY Pakistan

PHONE 021-2414030

FAX 021-2417006

TELEX 29823 FALAH-PK

BANK TYPE Commercial Bank

DATE UPDATE Aug. 15, 2007

INTERNET BANKING Yes

Chundriger Road of Karachi has same importance in Pakistan’s economy as of the

Wall Street in world economy. The divisions working under Bank Al-Falah Limited

Head office are as follows:

Administration

Credit Management

Investment Banking

Human Resource

Information Technology

Corporate Planning &

Budgeting

Finance & Treasury

International Division

Inspection & Audit

Law Division

Marketing & Development

Trustee Division

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mailto:[email protected]

http://www.bankalfalah.com/

Under the President an Executive Committee and a

Credit Committee works. All the matter of the bank

join to the board of director are presented to the

executive committee which is responsible for daily

operation of the bank .The request for credit

exceeding the General Manager power is approved

by the Credit Committee. Under the area Executive

is the General Manager who is the in charge of the

Circle Office.

BOARDOF DIRECTORS

The board of directors has the authority in guiding

Bank affairs and in making general policies. Some

directors are the personnel of the Bank Al-Falah

Limited follows.

CHAIRMAN’S MESSEGE

Since the inception of Bank Al-Falah, by the grace of the Almighty, we have moved rapidly in expanding our branch network and deposit base, along with making profitable advances and increasing the range of products and services. We have made a break-through in providing premier services at an affordable cost to our customers.

Keeping in view our valued clients and the need for constant and effective communication of information, we have designed this website to be as user-friendly as possible.

As we pursue the path of excellence, customer satisfaction remains our priority. It is only when we know our customers better, can we deliver a higher quality of services, thereby adding synergy to our existing management expertise, financial strength and profitability.

This is yet another channel of communication for the delivery of quality products and services that enhance value to our stakeholders.

H.E. Sheikh Hamdan bin Mubarak Al-Nahayan

MANAGEMENT OF BANK AL-FALAH

Following are the management personnel of Bank Al-

Falah Limited.

BANK AL-FALAH BRANCH NETWORK

The Bank is fully aware that the branch network has

direct implications on the services that it provides to

its customers. We offer services through a network of

more then 200 branches and 127 state of the art

ATM machines.

Conventional Branches

Islamic Banking Branches

Overseas Branches

ATM Machines

http://www.bankalfalah.com/atmbr.asp

http://www.bankalfalah.com/brall.asp

CREDIT RATING OF BAL

PACRA, a premier rating agency of the country, has rated the bank ‘AA’ (double A), Entity Rating for long term and A1+ (A one plus) for the short term. These ratings denote a very low expectation of credit risk, strong capacity for timely payment of financial commitments in the long term and by highest capacity for timely repayment in the short term, respectively. The ratings of first and second and third unsecured listed and subordinated TFC issues of PKR 650 million, PKR 1,250 million and Rs.1,325 million have been maintained at AA- (Double A minus).

DEPARTMENTS OF BANK AL-FALAH

As far as Bank Al-Falah Ltd is concerned, it is one of

the top in all-domestic commercial banks in Pakistan.

The rapid increase in branch network shows the

Bank’s performance within seven years, which is

worth considerable.

However, this branch works with mostly all banking

operations, which are normally performed by every

commercial bank. It has basically following

departments under which it operates all functions of

bank diligently. These are mainly:

1. Account opening department

2. Remittances department

3. Clearing department

4. Accounts department

5. Cash department

6. Credit departmet

ACCOUNT OPENING DEPARTMENT

This department is responsible for the opening and

closing of accounts. In consideration of Bank Al-

Falah Limited, opening and/or continuing to maintain

any account, the Account Holder/Depositor or

Investor would be bound by the terms and conditions

written on the account opening form.

The first part establishes the preference regarding

the type of account to be maintained. The various

choices offered in this regard are:

Current Account

Saving/ PLS Account

Royal Profit Account

Term Deposit Account

Basic Banking Account

Current AccountCurrent AccountThe current account is the most common account

and the most preferred amongst business concerns.

There is no restriction on the amount of withdrawal.

Current account enables the client to do cash

transactions in a more efficient manner.

Features:-Features:-

Current Accounts can be opened in the BAL

with the sum not less than Rs.1000/-

No Profit

No deduction of Zakat

Account close charges Rs.150

Service charges for maintaining minimum

balance Rs.100

Online Charges Rs.105 for who have not

account in BAL.

Saving / PLSSaving / PLS

AccountAccountIn Pakistan (PLS) saving account was introduced in

January 1982. Individuals who wish to invest their

money in order to get profit maintain this account.

Features:-Features:-

The minimum balance requirement for

opening the account is Rs.5000.

There can be profit or loss on the investment

of the Customer’s funds deposited with the

bank and this amount shall be acceptable to

the Customer. The profit is paid half yearly.

Deduction of Zakat

With holding tax on profit @ 10%

No Service Charges to close the account

Service Charges for maintaining minimum

Balance Rs.50

Online Charges Rs.150

Royal ProfitRoyal Profit

AccountAccountRoyal Profit is also opened in BAL and it is not the most

common account. Royal profit has some features.

Features:-Features:- The minimum balance requirement for

opening the account is

Rs.50, 000.

Profit on Monthly Basis

Higher the amount higher the profit

Deduction of Zakat and Withholding Tax

No Service Charges on minimum balance

requirement but no profit for that month.

No Charges to close to Account

Term DepositTerm Deposit

AccountAccountA term deposit is a deposit that is made of a certain period

of time. At the end of specific period the customer is

allowed to with draw the principal amount.

Features:-Features:- Fixed Profit

The longer the period for which the amount is

kept higher is rate of interest.

Term Deposit usually for the period of three

months, six months, One year, and five years.

Deduction of Zakat and withholding Tax @

10%.

Basic BankingBasic Banking

AccountAccountBasic Banking Account is opened is BAL. The

minimum amount deposit in this account is very

small as compared to other accounts.

Features:-Features:- Minimum Deposit amount is Rs. 1000

1st two transactions is free of cost

Bank can close the Account after six month if

balance is zero.

.

TYPES OFTYPES OF

ACCOUNTACCOUNT

1.1. Accounts Of GeneralAccounts Of General

CustomersCustomers Minor Account

Illiterate Person Account

2.2. Accounts Of SpecialAccounts Of Special

CustomersCustomers

Individual Account

Proprietorship Account

Partnership Account

Limited Company’s Account

Minor AccountMinor Account

Account Opening Account Opening

Procedure:-Procedure:-

The natural guardian who signs both Account

Opening Form and Specimen Signature Card can

open account in the name of minor.

Title of Account:-Title of Account:-

The title of account should clearly indicate both the

names of minor as well as guardian in the following

manner:-

e.g. Imran Rafique ( minor) Muhammad Rafique

(Guardian)

Special Instructions:-Special Instructions:-

The guardian will continue to operate the account

even if minor attains the age of majority.

Documents:-Documents:-

Computerized National Identity Card of

Guardian

Form “B” of minor

In case guardian is appointed by the court of

law then attested copy of guardianship

certificate be obtained and placed on record.

Joint AccountJoint Account

These are the account of two or more persons who

are neither partners nor trustees.

Account Opening Procedure:-


Title of account holder should mention the names of

all the joint account holders.

Special Instruction:-Special Instruction:-

At the time of opening the account clear and specific

instructions should be obtained regarding operation

of the account and payment of the balance at the

death of one or more joint account holders in the

following manner:-

The account shall be operated by any joint

account holders singly.

By either or survivor singly

By any two or more joint account holders or by

any two or more survivors jointly.

By all the joint account holders jointly

By all the survivors jointly.

These instructions as far as possible should be

obtained in handwriting of the parties concerned,

under the signature of all the joint account holders.


Computerized national Identity Card of all the

joint account holders.

Mode of Signature:-Mode of Signature:-

All joint account holders are required to sign

as applicant and in the column of special

instructions.

Specimen Signature of only those joint

account holders are required who are

authorized to operate the account.

Individual AccountIndividual Account

When a single man or woman opens an account in

his or her own name and has the right to operate, it

is called individual A/C.[



Title of Account:-Title of Account:-[

Title of Account should mention the name of the

person who operates the account.


At the time of opening the account clear and specific

instructions should be obtained regarding the

nominee of the account holder means after the death

of the account holder who will operate the account.[

Documents:-Documents:-[

Computerized national Identity Card.

Proof of Income if he / she is a salaried

person then the pay slip or salary certificate of

that person.

ProprietorshipProprietorship

AccountAccount

When the owner of the firm operating singly,

open an account in his firm name.




Title of account must be in the name of the

proprietorship concern.


In case of proprietorship concern, the special

instruction should cover the style of the account and

the name of the person who will operate the account

as sole proprietor. For example, if the account to

open is in the name of “Islamabad Cloth Store”, the

person who is the sole proprietor should declare as

such.

Documents:- Documents:-

Computerized National Identity Card (CNIC)

of proprietor.

Declaration for proprietorship concern.

Proprietorship Stamp

Letter of request to open the account on the

letterhead of proprietorship.

Third party Mandate, in case any other person

has been authorized by the proprietor to

operate the account.

National Tax Number (NTN) but it is optional.

PartnershipPartnership

AccountAccount

“Partnership” is a relationship between persons who

have agreed to share profits of a business carried on

by all or any of them acting for all.




Title of account must be in the name of the firm as

declared by the partners.

Operational Instructions:-Operational Instructions:-

Operations on the account must be allowed

strictly in accordance with the instructions

given in partnership mandate and Declaration

(Part III) in terms of section 25 of Partnership

Act 1932.

According to Partnership deed, if given.


Copy of Computerized National Identity Card

of all the partners.

Copy of registration Certificate (if a registered

firm)

Letter of request to open the account on the

letterhead of partnership.

Partnership Stamp

Partnership Deed

Third Party Mandate, if third party is

authorized to operate the account.

NTN (optional)

Limited CompaniesLimited Companies

AccountAccount

Section 2 of the Companies Act, 1913, defines

companies as:-

“An association of individuals for

the purpose of profit, possessing a

common capital contributed by the

members constituting it, such

capital being commonly divided

into shares, of which each

possess one or more and which

are transferable by the owners.”




Title of account should be exactly in the

same name and style as mentioned on

the memorandum and article of

association.


All the special instructions should be

given to the bank in the form of

Resolution of Board of Director.


Computerized National Identity

Card (CNIC) the entire Director

attested by company CEO.

Resolution of Board of Director

passed under Company’s seal to

open account.

Memorandum and Article of

Association

Certificate of Incorporation Form

29 (B) (Lasted Copy). Company

secretary will certify all these

copies.

List of Directors and authorized

signatories.

Certificate of Commencement of Business (for

Public limited company’s only).

REMITTANCES DEPARTMENT

Meanings ofMeanings of

RemittancesRemittances

“Remittance is transfer of

funds from one place to

another or from one person

to another.”

A Remittance is an important service provided by banks to customers as well as non-customers. Since it is not a free service it is a source of income for the bank.

Parties involve inParties involve in remittancesremittances

Four parties involved in remittance:-

Remitter

Remittee

Issuing Bank

Paying Bank

Remitter:-Remitter:-One who initiates, or requests for a remittance. The

remitter comes to the issuing or originating branch,

asks for a remittance to be made, and deposits the

money to be remitted. The bank charges him a

commission for this service. He may or may not be

the branch’s customer.

Remittee:-Remittee:-A Remittee is also called the beneficiary, or the

payee. The person in whose name the remittance is

made. A remittee is also the one who receive the

payment.

Issuing Bank:-Issuing Bank:-

The bank that sends or affects the remittance,

through demand drafts, telegraphic transfers, or Mail

Transfers.

Paying Bank:-Paying Bank:-

Paying Bank also knows as the drawee branch. The

branch on which the instrument is drawn. It has to

make the payment (usually located in a different city

country).

Kind ofKind of

remittancesremittances

Transfer within the branch

Transfer from one branch to another

Transfer from one bank to another bank in the

same city

Transfers from one bank to another bank in

two cities.

Instruments usedInstruments used

in remittancesin remittances

Demand Draft (DD)

Pay Order (PO)

Pay Slip

Call Deposit Receipt (CDR)

Telegraph Transfer

Rupees Traveler Cheque (RTC)

Cancellation of PO, DD & CDR

Advance Tax against Remittances

Demand draftDemand draft

Demand Draft is a negotiable instrument, which is

drawn by one branch to another branch of the same

bank. In case of agency arrangement Demand Draft

can also be issued by one branch of the bank

payable to other branch of the other bank e.g. DD

issued by the BAL payable by UBL.

Explanation:Explanation:

If any person wants to make payment from one city

to another city then he can make payment through

demand draft. Bank charges a commission for

performing this kind of service according to bank rate

schedule, which is revised after 6 months. Demand

draft may be issued or paid. There are two ways to

issue

Demand Draft:-Demand Draft:-

1. Issue of DD against cash payment

2. Issue of DD against Debit of the account

The current rate schedule of DD is as follows:-

Up to Rs. 10,000

0.25% or Rs.25

Which ever is higher

Rs.10,001 to Rs. 100,000

0.20% or Rs.40


Rs. 100,001 to Rs. 10,00,000

0.10% or Rs.200


Rs. 10,00,001 to Rs. 20,00,000

0.75% or Rs.1000


Above Rs. 20,00,000

0.06% or Rs. 2000


Process of the issuance ofProcess of the issuance of

DD:-DD:-

When a customer requests BAL M.B.DIN Branch to

provide him a DD made on his account or against

cash payment for a particular city like Islamabad.

Then, after having the total amount including

commission demand draft is issued in favor of the

specified person in that city and is drawn on BAL,

Islamabad Branch. So, when payee in any bank

presents this demand draft, it constitutes the inward

clearing of Bank Al-Falah Limited, Islamabad Branch.

Pay orderPay orderPay order is a negotiable instrument made by the

bank, on account of a customer, to pay on order the

specified amount to the directed person (payee).

Use of Pay Order:-Use of Pay Order:-

Pay orders are used to make payment or to transfer

money, with in the same city. Pay order is always

drawn on the bank that has issued it. The main

advantage of pay order is that it cannot be

dishonored by the bank. Pay order can be endorsed

if it is not crossed. The payee may present pay Order

for payment either over the counter for cash payment

or the payee may transfer credit to his account.

The current rate schedule of Pay Order is as

follows:

Issuance of Pay Order Rs. 50/- for

a/c holder

Rs. 500/- for

non-a/c holder'

Cancellation Rs. 100/- for

a/c holder

Rs. 100/- for

non-a/c holder

Duplicate Issuance Rs.100/- for

a/c holder

Rs. 100/- for

non-a/c holder

Process ofProcess of

issuance of payissuance of pay

orderorder

Cash Deposited or gives Cheque in favor of BAL

Fill Application Form for Pay Order and

signed by Applicant

Entry in Bank Smart

Bank issue a Pay Order after recovering Charges (2 Copies)

which is signed by two officers

Do necessary Vouchering and Take Signature of Applicant at

the Place of received Instrument

Copy of Pay Order is given to Customer

Copy is for Filing Purpose

Pay slipPay slip“It is a negotiable

instrument like cheque

issued by the bank on

its own account to pay

a specified amount to

the directed person.”

Use of Pay Slip:-Use of Pay Slip:-Pay Slips are used to make payment by the bank

itself against certain expenses incurred; like furniture

purchased by bank, electricity charges.

Issuance of payIssuance of pay

slipslip

Bank issue a pay slip in favor of person, to

whom payment is made.

Affixes payee’s Account only stamp.

Revenue stamp pasted on it.

Entry in bank smart.

Example:-Example:-If bank has purchased furniture (fixed Asset) costing

Rs. 40,000 from a company then a pay slip in the

name of that company is made and, instead of

writing the issuing date on pay slip, date of

encashment (realization) is written when it is

presented in bank.

Call DepositCall Deposit

Receipt (CDR)Receipt (CDR)Bank Al-Falah Limited also issues Call Deposit

Receipts (CDR).

“It is an instrument like

Cheque issued by the

bank on account of a

customer & in favor of a

person, to pay the

specified amount”.

CDR’s are issued to make payments, especially when a

company goes for some tenders or for purchase of

government securities. The bank enjoys the benefit of

keeping funds deposited until the payment is not made.

Online moneyOnline money

TransferTransfer

Rupee TravelingRupee Traveling

ChequeCheque

It is just a shape of Demand Draft. The difference is that it

is not drawn on the specified branch. It can be drawn on

any branch of the same bank.

The paying bank has to verify the signatures and after

verification payment is made.

Cancellation of PO,Cancellation of PO,

DD and CDRDD and CDRAfter issuance of Pay Order, Demand Draft or Call

Deposit Receipt by Bank Al-Falah Limited, m.b.din

Branch, if any one of these has to be cancelled by

the customer, it is returned in the bank. Then, after

deducting the cancellation charges of Rs.100 for PO

and Rs. 200 for DD, the remaining (net) amount is

paid to the customer.

Advance TaxAdvance Tax

againstagainst

remittancesremittances

Advance Tax is deducted on issuance of PO & DD

from customers except those who have tax

exemption form and credited in Tax on PO & DD

account. Tax deducted has to be paid to State Bank

of Pakistan (SBP) with in one week of issuance of

these instruments.

CLEARING DEPARTMENT

Meaning ofMeaning of

clearingclearingThe word clearing has been derived from the word

“clear” and is defined as:

“A system by which banks

exchange cheques and

other negotiable

instruments drawn on

each other within a

specific area and thereby

secure payment for their

clients through the

Clearing House at

specified time in an

efficient way.”

EXPLANATION:-EXPLANATION:-

By clearing means sometimes the account holder of

Bank Al-Falah Limited present a cheques, which is

not drawn on Bank Al-Falah but the person, has an

account in Bank Al-Falah Limited. In this case bank

accepts this cheques in clearing department and

later on collets the amount from bank on which

cheques is drawn through clearing house. This

function is called clearing.

Clearing HouseClearing House

It is a place where representatives of all banks sit

together and interchange their claims against each

other with the help of controlling staff of NIFT.

It is one of the services provided by NIFT to other

commercial banks. NIFT acts as a clearinghouse.

Different banks are the members of the

clearinghouse. A representative of each bank

represents his bank in the clearinghouse.

Each bank has collected cheques as behalf of their

customer but these cheques are not drawn on their

own bank so in the clearinghouse, they hand over

these cheques to respective banks on which these

cheques are drawn. Similarly each bank receives

cheques from other banks if any.

Instrument to beInstrument to be

presentedpresented

Cheques

Demand Drafts

Pay Orders

Types of clearingTypes of clearing

There are four types of There are four types of

clearing:-clearing:-

1. Inward Clearing

2. Outward Clearing

3. Intercity Clearing

4. Same Day Clearing

1.1. Inward ClearingInward ClearingThose Cheques and other negotiable instruments

which are drawn on BAL Urdu Bazar Branch Lahore,

sent by other banks, constitutes the inward clearing

of Bank Al-Falah Limited. After having all the stamps

and dates of cheques confirmed, the concerned

drawer’s accounts are debited in BAL Urdu Bazar

Branch Lahore.

Inward Return:-Inward Return:-

Return may be of any reason:-Return may be of any reason:-

Presentation Flaw e.g. Clearing stamp not

affixed or wrong discharge given by collecting

banker.

Defect in the Cheques i.e. Post dated

cheques, unauthorized cutting.

Insufficient Balance

2.2. OutwardOutward

ClearingClearingWhen cheques and other negotiable instruments

drawn upon other banks like UBL Bank, MCB, BOP

or Askari Bank of the same city (M.B.DIN) are

presented in BAL M.B.DIN Branch to deposit them in

the respective payee’s accounts, these instruments

are lodged in outward clearing of BAL M.BDIN

Branch.

Outward Return:-Outward Return:-

Cheques return will be treated as inward

cheques.

In case the cheques is returned because of

wrong presentation e.g. clearing stamp not

affixed or wrong discharge given on the

cheques etc. it should be relodged in the next

day clearing after rectification of the mistake.

If the cheques is returned for any other reason

then

Enter the cheques in cheques return register,

mentioning the reason as appearing on the

cheques return memo received from the

paying bank.

Advice the customer about fate.

Return the cheques to the customer after

getting sign on the register.

Collect the cheques return charges as per

S.O.C (Schedule of charges).

3.3. Inter CityInter City

ClearingClearingThe cheques that are presented in inter city clearing

are of another city and received by air. In this type of

clearing the bank confirm at that time that the

cheques are clear or not and give to the rider.

4.4. Same DaySame Day

ClearingClearingThe cheques that are presented in same day

clearing are the local cheques and these cheques

are clear in same day. Basically it is the benefit that

are provided to customer.

Clearing processClearing process

i.i. Stamps Put On theStamps Put On the

Cheques:-Cheques:-When the cheques are presented in BAL to be

deposited in their respective payee’s accounts,

different stamps are put on cheques before their

lodgment in outward clearing.

ii.ii. Crossing the cheques:-Crossing the cheques:-Crossing means two parallel lines, drawn across the

face of the cheques with or without words written in

between them. Crossing may be general or special.

In clearing, cheques are crossed specially. Cheques

are stamped with bank’s name between two parallel

lines to constitute special crossing. After the cheques

have been crossed specially, the holder cannot

receive payment except through the banker named

on the cheques crossing saves the instrument to go

it in illegal hands. If, crossed cheques is lost or

stolen, there is no risk involved. So it is an effective

means of minimizing the risk of loss.

iii.iii. Clearing Stamp:-Clearing Stamp:-After the cheques have been crossed specially,

clearing stamp is put on the cheques and other

instruments, with the next date, so these cheques

would have to be presented in their concerned

drawee banks on the subsequent day.

iv.iv. Endorsement Stamp:-Endorsement Stamp:-The word endorsement means anything written or

printed on the back of an instrument. So

endorsement stamp has to put with words “Payee’s

account Credited in Bank Al-Falah Limited,

M.B.DIN”.

v. National InstitutionalNational Institutional

Facilitation AuthorityFacilitation Authority:-

After putting these three stamps on cheques & other

negotiable instruments, they are sent to NIFT. NIFT

after segregating the cheques of different banks

delivers them to their concerned banks.

VI.VI. SEND Report To TheSEND Report To The

Bank:-Bank:-After delivering the cheques to different banks NIFT

send report to BAL M.B.DIN, then the bank’s staff

tally the amount of that report for its own record.

vii. Delivered Cheques toDelivered Cheques to

Respective Banks:-Respective Banks:-Next morning, these cheques are delivered to the

respective banks between 9:00 to 9:30AM. In the

same manner, other banks present their clearing

drawn on Bank Al-Falah. Total number of cheques

and their amount delivered to other banks and

received from them are written on the Clearing

House schedule branch for their payment. After

proper scrutiny of cheques, verification of signatures

and confirmation of balance in the account, the

Officer Clearing Department Debit the customer

Account. If any cheque is not passed due to

insufficient balance or any other reason, Officer Cash

Department returns the same cheque by attaching a

cheque return memo containing reason for return.

viii. Credit the Customer Credit the Customer Account:-Account:-

If the cheques are clear then the BAL M.B.DIN credit

the customer Account. If the bank receives the

outward return due to any reason then this cheque is

entered into the cheque returned register and bank

charges are deducted according to the schedule of

charges.

Then send the outward and return inward as IBDA

(Inter Branch Debit Advise) to Main Branch

SHAHDIN LAHORE. And SHAHDIN LAHORE sends

outward return and inward to BAL M.B.DIN.

Procedure ofProcedure of settlementsettlement

Assume that BAL got the cheques which are drawn

on HBL, NBP, and MCB for amount Rs.50, 000/-,

Rs.30,000/-, Rs.15,000/- respectively, its total being

Rs.95,000/-. It means that this amount is to be

credited to BAL account with NIFT. On the other

hand the cheques drawn on BAL are from HBL, NBP

and MCB of Rs.15,000/- Rs.75,000/-, and

Rs.30,000/- respectively, its total being Rs.120,000/-.

It means that this amount is to be debited from BAL

account . The difference between Rs.95,000/- credit

and Rs.120,000/- debit is Rs.25,000/- debit, which

means the house is against BAL for Rs.25,000/-.

Settlement sheet:-Settlement sheet:-In clearing department this sheet is prepared and

contain detail amount of cheques received, amount

of cheques will be paid and balance of these

accounts.

ACCOUNTS DEPARTMENT

This department is responsible to keep the record of

each and every transaction and prepare reports

about the amount of deposits and advances and sent

to Head office or State Bank of Pakistan on monthly,

quarterly and yearly basis.

ActivitiesActivitiesThe accounts department deals with various routine

activities for the bank. The main activities performed

by it are:-

a) Budgeting

b) Reporting

c) Maintenance & depreciation of fixed assets

d) Miscellaneous functions

BudgetingBudgetingAccounts department of a bank, for a year makes

budget of every branch. Fiscal year of bank starts

from January 01 and ends on December 31. The

accounts department starts preparing budget from

October for the next year.

ReportingReportingThe accounts department, in the form of reports,

clubs the details of various departments together.

Each and every minute detail is provided in weekly,

monthly and annual reports. The reports are

submitted to head office, SBP and to the

government. The accounts department prepares

many reports, of which the most common are:-

Statement Of Affairs

Income & Expenditure

Business Report

SBP Report

Outstand Receipt Report

Currency Wise Deposits Report

Maintaining ofMaintaining of

Fixed Assets &Fixed Assets &

their Depreciationtheir DepreciationAccounts department maintains the record of all the

assets and charges depreciation on them. The bank

normally uses the straight-line method to compute

the depreciation.

It is calculated on monthly basis and charged yearly.

Bank not only depreciates the existing assets but

also the assets but also the assets transferred in and

transferred out.

MiscellaneousMiscellaneous

FunctionsFunctionsThe accounts department also performs some other

miscellaneous functions like

i. Closing Entries

ii. Daily activity checking

iii. Report Generation

iv. Minor expense recording

i.i. Closing Entries:-Closing Entries:-Accounts department also passes the closing entries

on monthly, 6 monthly and yearly bases to calculate

the profit and analyze the overall performance for a

certain period.

ii.ii. Daily ActivityDaily Activity

Checking:-Checking:-All the operations performed in various departments

of Bank Al-Falah Limited M.B.DIN are computerized.

The functions are performed through the customized

software. In order to facilitate double-checking of all

the transactions done, every concerned official also

passes vouchers and cheques manually. At the day

end all the vouchers passed by various officers

working in different departments are given to

Accounts Department. Furthermore the I.T.

department also prints a very bulky report of all the

transactions / entries which have been fed into the

computer system of the branch that day. When both

of these things are at the desk of concerned officer,

he performs the job of tallying the daily activity report

with all the corresponding vouchers and cheques, in

order to track down any discrepancy.

iii.iii. Report Generation:-Report Generation:-The reports generated by the accounts department

on a daily, weekly, monthly, bi-yearly and yearly are

written in a proper format. It is neither necessary nor

possible to get acquainted by all of these reports in a

short period of time. Some of the common reports

are:-

Daily Advance andDaily Advance and

Deposit Position:-Deposit Position:- Daily Exchange Position

Daily Fund Management

Closing Reports:-Closing Reports:- Monthly Assets & Liabilities

Monthly Budget Review Report

Monthly Monitory Statement

Monthly Performance Review Report

Monthly fixed investment

From these statements, five reports carry extreme

importance. The five reports are:-

Daily position of advances and deposits

Statement of affairs

Daily exchange position report

Fixed assets statement

Monthly review of performance.

iv.iv. Minor Expense Minor Expense

Recording:-Recording:-The account department of BALM.B.DIN Branch has

to record even the minor expenses of the branch like

FINANCE/CREDIT DEPARTMENT

Car financeCar finance

Benefits and Features Benefits and Features

Quickest processing

No hidden charges

Minimum down payment

Complete repayment at any point of time

Balance transfer facility {BTF} for existing as well

as new clients from other Banks

Tenure period ranging from 1 to 5 years.

Financing of all brand new locally assembled

vehicles and used cars.

Financing limit ranging b/w Rs. 200,000/- to Rs.

2000,000/- for brand new cars

Corporate and individual Corporate and individual

car leasingcar leasing

BAL’s recently introduced car leasing facility for

individuals and corporate sector has set new

dimensions for the product. Now you are provided

with the option of either to get the vehicle leased or

financed.

insurance insurance Renowned and reliable Insurance company EFU are

offering the competitive rates of Insurance. Pay year

insurance premium in advance { at the time of down

payment } and remaining in the subsequent

equal monthly installment.

how much extra monyhow much extra mony

being paid? {mark-up}being paid? {mark-up}

Bank Al-Falah's mark-upBank Al-Falah's mark-up

rates are as follows :rates are as follows :

Pak Suzuki Cars 15 %

All other local assembled Cars 15.5 %

Repayment Repayment Easily affordable installments on monthly basis in the

form of postdated cheques will set you free of

depositing your rental cheques every month.

Security Security Hypothecation of vehicle in the name of the Bank Al-

Falah Limited.

YOU CAN ACT AS A CO BORROWER

Acting as a co borrower, will enables your family

members {spouse, children- 18 year and above} to

avail the financing facility and can get the car

registered in their names as well.

Documents Documents

requiredrequiredTwo passport size photographs.

Copy of National ID card.

Bank statement for the last six months.

Salary certificate {for salaried individual}.

Business proof {for a business person}.

N.T.N Certificate.

Co borrower’s NIC copy {if the car is to be in the

name of the co-borrower}.

Eligibility Eligibility Yes you get a car loan form bank Al-Falah to

purchase a brand new car if you are:

Pakistani National Identity Card holder.

Over 20 years of age (Maximum 60 years in case

of salaried and 62 in case of a

business person at the time of maturity of the loan).

Salaried , Businessman or self employed .

Credit Credit

departmentdepartment

Agriculture Credit

Banks Agriculture division deals with the agriculture advances. Bank provides the Agriculture Advances in order to enhance and support the agriculture

sector of the country. Agriculture advances are of the two types. The types are as follows Farm Credit

Non Farm Credit

FARM CREDIT

These are the credits provided by the BAL for the purchases of inputs for development of agriculture sector. Following are two main sub classes of Farm Credit.

Production Finance

Development Finance

PRODUCTION FINANCE

These are short term loans. These loans are provided to farmers for purchases of different type of input, for example, Seeds, Fertilizers, Pesticides. These loans are provided against personal guarantees or mortgage of land as a security. Rate of profit for these loans is 15.5%.

DEVELOPMENT FINANCE

These are medium or long term loans. These loans are provided for the development of agriculture sector. Main purpose of these loans are to purchase instrument:

Tractors

Implements(Trolley, Thresher etc.)

Installation of tube-well

Planting of garden

The loans are disbursed against security of land (mortgage) or any other security acceptable to bank. The rate of profit for these loans is 11% to 17%.

NON FARM CREDIT

Second major form of agriculture advance is Non-Farm Credit. These loans are provided against mortgage of land as a security or pledge of equipment as a Collateral security. These are medium or long term investment depending up the

project. These loans are provided to boost up agriculture sector to provide the sources of earning of foreign exchange as well as to provide employment to people. Following are the different types of small industries for which loans are provided to improve the economy of the country:

Fish Farm

Cattle Farm

Poultry Farm

Dairy Farm

Securities

Bankers lend money in the form clean advances against promissory note as well as secured advances against tangible and marketable. These reports are only valid BAL normally allow the advances to the customers against the following types of securities:

Bankers Lien

Mortgage

Pledges

Hypothecation

Bankers Lien

This type of security is accepted in case of advances against share, life policies, bonds, ornaments and fixed deposits etc. It is type of most liquid security.

Mortgages

There are two types of Mortgage. These are following:

Legal Mortgage

Equitable Mortgage

Legal mortgage and equitable mortgage are accepted in case of immovable properties like land, building and machinery etc.

Pledge

This type of security is accepted in case of stocks or raw materials. In a pledge, the borrower has not right to sell the stocks with the permission of bank.

.Monitoring/Monitoring/

renewal of creditrenewal of credit

facilityfacilityWhen credit team sanctions some loans to different

clients then it becomes essential for it to monitor the

affairs of credit given to them, any during such period if

customer wants to extend his loan by accepting some

other conditions from credit team, then role of credit

officer is very important to monitor such affairs.

However, this team looks after the condition of his

business as the repayment with markup amount can

be assured to get. If this feels that such concern is not

doing well from certain period, then it would take some

measures to get loan back with markup immediately

and restrict to sanction loan further. Personal visits are

also made by credit team as to know the actual worth

of property asset mentioned or deposited for security.

Application ofApplication of

Mark-upMark-upMarkup is like interest rate, but it describes some what

different from interest rate. Entire interest rate was

received by borrower either loosing or gaining but in

markup bank purchases goods from borrower by

lending money on the terms of repurchase the goods

by banks from customer. In this way, bank gains some

amount on sold goods and makes sure to its receipts.

From following calculation of mark up we can

understand the application of mark up.

Mark up = P x R x D

365

P = Principal amount

R = Rate

D = Days

SWOT ANALYSIS

SWOT AnalysisSWOT Analysis StrengthsStrengths WeaknessesWeaknesses

OpportunitiesOpportunities

ThreatsThreats

What is a SWOT?What is a SWOT?

SWOT analysis is a process to identify where we are

strong and where we are vulnerable, where we

should defend and where we should attack. It tells us

our strengths, our weaknesses, the opportunities

which prevail in the market and the threats which we

may face from our competitors and other from other

potential factors.

This analysis can be performed on a product, on a

service, a company or even on an individual.

SWOT Analysis of BankSWOT Analysis of Bank

Al-FalahAl-FalahHere we have applied this very useful technique to

identify the strengths, weaknesses, opportunities and

threats of Bank Al-Falah.

StrengthsStrengths

Strong Financial PositionStrong Financial PositionAs we can see in the financial statements of

the bank, the financial position of the organization is

very sound and its profitability is in increasing. The

Earning per share has been increased on a rate of

about 50%, which is a very positive sign.

Highly Qualified EmployeesHighly Qualified EmployeesThe bank has highly qualified and skilled

workforce and it has succeeded to attract the best

banking professionals from across the country due to

its growing pace and sound reputation.

Conducive EnvironmentConducive EnvironmentThe management of the bank is very much

concerned with the development of and improvement

of the working environment. The bank has state of

the art and purpose built branches where all the

modern technologies are provided to get the

efficiency of the workforce and the customer

satisfaction.

Govt. Support andGovt. Support and

EncouragementEncouragementAs the owners of the bank belong to UAE and

the type of their investment in Pakistan is a foreign

investment, the govt. is fully supporting the bank

management due to its policy to maximize the

foreign investment in the country, to get the

economic prosperity.

Fastest Growing FinancialFastest Growing Financial

InstitutionInstitution

Due to its successful business policies and

the strong financial position the bank has achieved

the reputation of fastest growing financial institution

in the country. It has greatly increased the customers

confidence in the bank

Huge Expansion PlanHuge Expansion PlanDue to its strong financial position the bank has

undergone a huge expansion plan to compete with

the existing bank all over the country and with the

passage of time the branch network is expanding at

a very good pace.

Young and EnergeticYoung and Energetic

WorkforceWorkforceAs the bank is a newer one in the country, the

bank has an advantage over its competitors because

the majority of its workforce is young and not very

much over aged. Thus the bank is getting maximum

out put from its young and energetic workforce by

spending comparatively less on their remunerations.

Islamic Banking DivisionIslamic Banking DivisionThe bank is one of the pioneers of the

commercial banks who have started the Islamic

Banking along with their conventional banking. The

bank has a separate network of its Islamic Banking

Division which has 16 branches across the country

and this network is also expanding at a very good

pace.

WeaknessesWeaknesses

Waiver of chargesWaiver of chargesCurrently the middle management of bank Al-Falah

is the big reason for waiver of charges. Bank Al-

Falah loosing a lot of its income likes (Cheque book

charge, online charges, statement charges, and

other things) because of management. This is a

weakness of bank Al-Falah.

Inexperienced workforceInexperienced workforceAs the majority of the workforce consists of

young professional, they lack in their experience.

And sometimes lack of experience becomes a hurdle

while serving to the customers. It is the point where

they feel difficulty while competing the other bank,

which have a very experienced workforce.

Over work Load onOver work Load on

EmployeesEmployeesIt was observed in the branch that as

compared to huge business the bank is dealing in,

the no. of employees is lesser and thus there is an

increased workload on the employees. Due to this

the efficiency of the employees is reduced.

Employees are not veryEmployees are not very

much Motivatedmuch MotivatedAs discussed before, the workload is high and

the employees, especially the credit department,

have to do late sittings to complete their tasks. On

the other hand the bank has revised its salary

increments policy to decrease the increment rate, as

a result a decreased motivation level of employees is

observed.

OpportunitiesOpportunities

Rapidly Growing EconomyRapidly Growing EconomyAt present the Pakistan’s Economy is growing

on a very fast pace. The rapid growth of economy

has resulted in the increase in the growth rate of all

economic sectors especially in the banking sector

which is growing at a fastest speed than ever and in

future the growth is expected to increase even a

higher rate.

Increased Interest RatesIncreased Interest RatesThe SBP has revised the interest policy and

the interest rates have been linked with the KIBOR

rates. Due to which the banks interest rate has been

substantially increased which will greatly increase

the banks’ profitability.

Mega Projects FinancingMega Projects FinancingAs the increase in overall business activity in

the country, the investors are launching various

types of Mega Projects especially in housing and

textile the bank has a great opportunity to finance

these projects at very profitable term.

Huge Demand forHuge Demand for

Consumer FinancingConsumer FinancingThe increase in per capita income and overall

economy has resulted into a great demand for the

consumer financing especially for home finance and

car financing and it is said that this trend will increase

more in future. The bank can earn a lot by focusing

on its consumer financing sections.

Merger with UBLMerger with UBLAfter the privatization of United Bank Limited,

the management of the BAL has purchased the

majority shares of the UBL, and it is planning to

merge these two banks. As UBL is the second

largest bank in the country, this merger can make the

bank the largest bank of the country.

Growing Trend of IslamicGrowing Trend of Islamic

BankingBankingThere is a very good growth trend in the

Islamic banking in the country and in the world as

well. BAL has the advantage of having full fledged

Islamic Banking network and the growth in this

particular field can be very fruitful for the bank.

Spending Practices of MassSpending Practices of MassAs the Pakistani’s are known for their

extravagant practices, and to fulfill their funds

requirements they don’t hesitate from getting loans

from banks. Thus there is a very good scope for the

bank to run successful business in such

circumstances.

ThreatsThreats

Uncertainty of EconomyUncertainty of EconomyAlthough the economy is growing at a good

pace, but there are many factors which results in the

uncertain position of the economy. Such as political

uncertainty, WTO, increase in poverty etc. etc. As a

result there are permanent threats of future risks and

losses for the bank.

High Rate of InflationHigh Rate of InflationThe inflation rate of the country has gone

above the 11%. This can result into an unfavorable

situation for the bank. And especially when the

ownership of the bank is UAE based, the net spread

for them can substantially decrease.

Trend of MergersTrend of MergersThere is a trend of mergers among the banks

to become prominent in the market and to get the

maximum market share. This trend can result into

the union of some leading banks which can give

tough time to the bank and it will become difficult for

the bank to compete with them.

Privatization of BanksPrivatization of BanksDue to its privatization policy, the govt. is

privatizing the state owned banks. The change in

management may result in the increase in the

efficiency and productivity of the banks. Thus it can

become a threat for the bank.

Risk of DefaultsRisk of DefaultsAs discussed earlier that there is a trend of

launching mega projects in the country. And every

one is involved in this trend without taking any

measure for the successfulness of these projects.

This can result into the failure of this project which

can make it difficult for the banks to recover their

funds from these defaulters.

LEARNING AND EXPERIENCE

I did my internship in Bank Al-Falah Limited M.B.DIN.

This internship started on 21st July to 8 September.

It is not a very big branch but only a small retail

branch of big giants...

It is a new branch and working there for the

customers for almost one year.

First day, I reported to the operation manager of the

branch Mr. shahzad waraich who gave me brief

introduction about the management and working of

the branch, he also check my knowledge about

banking by taking a little test and interview. He has

also taken a Computer Test from. Then he

introduced me to the other employees.

Management ofManagement of

the Branchthe Branch

Staff of the branch consists of 23 members:

DESIGNATION NO OF EMPLOYEES

Branch Manger 01

Operation Manager 01

Credit Manager 03

Officer Range I 05

Officer Range II 02

Cashier 04

System Administrator 01

Telephone Operator 01

Gun Man 04

Peons 03

Learning from A/cLearning from A/c

OpeningOpening

DepartmentDepartmentThis Branch is having about 5000 accounts but there

was only one officer, Mr. Ahtasham to handle this

tough work. He has to deal different people.

My experience in this department was really very

good. I learnt how to handle different customers,

handling of the customer is not difficult for me

because I also worked as front desk officer. what are

the required documents that should be with you in

order to open an account, what types of account

Bank Al-Falah is offering to the customers, what are

the facilities that an account Holder can enjoy and

what are the profit rates Bank Al-Falah is giving to its

customers.

I have learnt the procedure that an Account Opening

Officer has to follow in order to open and maintain an

Account. As per instruction of SBP now

bank al-falah have very restrict process. They have

need one reference who have account in BAL. And

they verify through NADRA software.

Learning in RemittanceLearning in Remittance

and Clearing Departmentand Clearing Department

There were three officers in this department one was

Mr. khurram ghori and the other two was masood

paracha and Mr shazad bhatti.

Mr masood paracha was handling inward clearing

and Outward Clearing and RTC. And he also verify

the different cheque. While issuance of other

negotiable instruments like Demand Draft, money

gram etc, were handled by shazad bhatti. Khurram

ghori handle pay order, pay slip, and remittance

come from gulf and Saudi Arabia.

I worked one week in this department.

In this department I learned that how the transfer of

money from one branch to another branch takes

place. In this department It was my responsibility for

doing following jobs:-

Issuance of Demand draft and their Computer

feeding.

Responsibility of DD Advice and its Payment.

Issuance of Telegraphic Transfers and their

feeding in Computer.

Issuing of money gram, that money come

from Europe.

Issuance of CDR (Call Deposit Receipt) and

its Computer feeding.

Online money transfer from one city to

another city.

Learning from AccountsLearning from Accounts

& Finance Department& Finance Department

There were two officers in this department;

Mrs.Qurat ul ain and Mr. sajid. Mr sajid was new in

this department. Mr. handles daily voucher cheking

and handles daily activity checking. Miss Qurat ul

ain was senior one. She handle provisioning,

budgeting, and reporting.

I used to help Mr sajid in Daily Activity checking,

sorting and counting of vouchers. I learnt from Miss

Aine the items of the Balance Sheet of Bank and saw

the format of different reports and depreciation. He

helped me to understand his work. He told me about

the reports that he has to prepare & the purpose of

those reports. It was one of those Departments in

which Customer interaction is not involve rather

paper interaction is important.

Learning in SME’s Learning in SME’s

FinanceFinanceThis department was at second floor of the branch.

This department is giving a huge amount of return to

the branch. There were two officers Mr. shaid

gondal and Mr. dewan mahood I learnt that which

type of business can avail loan through this

department. What are the documents that are

required from different type of client like sole

proprietorship, Partnership. How the risk can be

evaluated. Preparations of offer latter, Credit line

proposal, approval process, Borrower’s Basic Fact

Sheet for SME’s, Financial Statement of applicant.

Learning From the CarLearning From the Car

Finance DepartmentFinance Department

Two officer in this department, whose name was Mr.

khwaja kamran and Mr mamlook ranjha used to sit

the second floor of the branch.

M.B.DIN branch was new one but demand for

financed cars through Bank Al-Falah lead this

department to prosperity. This department handles a

large number of customers daily and, without

overstatement; this department is the third “busiest”

department after the Account Opening Department. It

requires constant customer interaction and requires

high level of intelligence to screen the validity of the

customers.

Where as sound marketing skills are required to

actually force the walk-in customer to select Al-Falah

Car Financing, still stronger skills are needed to scan

the incoming customer for validity. I learnt how to

face the customers conveniently, how roper files

should be maintained, how to apply for a car, what

are requirement to apply for this Product, what is that

maximum limit, what is the procedure to this

department. Mr mamlook told me don’t give your

option just ask how much you can pay for down pay

ment.

CONCLUSION

If I have to express my experience of internship in

Bank Al-Falah Limited M.B.DIN was I would briefly

say:

Bank Al-Falah is a good Organization in the way that

anybody can join it for his/ her long-term career.

Overall working environment is comfortable.

Management of branch cares a lot of its employees

and considers them as the Asset of bank. Behavior

of senior executive of bank is very polite and they are

caring about the individual’s career and their growth.

However management is very demanding about the

targets but good reward at the achievement of

assigned targets is awarded.

Employees at Bank Al-Falah are quite efficient. As

M.B.DIN Branch is a new one, its employees have to

bring their bank among the list of good banks.

Therefore, they work more than their working hours

and it is all according to their will. It also shows their

loyalty, commitment to organization.

Employees are given the benefits like bonus, gratuity

funds, loans, increments, and medical.

All the customers are entertained individually. Same

kind of behavior and attention is given to all the

customers. Getting ideas for improvement from

customer side is a new idea and that is working very

well in Bank Al-Falah Ltd. All the customers are

asked to fill a suggestion form and the standards of

the bank are improved through them.

Prioritizing its product portfolio in line with its

corporate and consumer needs and wants the bank

is committed to develop products that give more

value to its customers in both the sectors.

In bank, all the work is done on computers. All the

entries are made in computer. Balance are fed into

the computer. This increases efficiency of the bank.

During my internship training I gathered information

regarding how a successful bank operational aspect

decorticated with the practical.

I found my internship training at Bank Al-Falah

Limited M.B.DIN Branch to be a very rewarding

experience. The training was beneficial because it

helpful me to aware a real life working environment.

So far my learning is concerned; all the employees at

branch were quite cooperative. They helped me to

understand the activities of a bank to possible extent.

Their good attitude gave me more confidence to

learn more and to ask if I have any query in my mind.

Besides their ever going activities they never get

irritant by my questioning. I had made an honest

efferent to present the working & operation of Bank

Al-Falah Limited M.B.DIN Branch in simplest way.

I feel pleasure that I have really gained a lot during 6

weeks & enjoyed working with experienced

cooperative & intelligent staff.

RECOMMENDATIONS

It was an interested experience to do internship in Bank Alfalah Limited. The staff was highly cooperated and due to their help I learned big deal about modern banking.

I suggest that such an internship program highly integrative for the students of commerce education so that the students should be enquired with the knowledge of practice world .I do summarize that it would be a great help to me in selection of job or future field of work.

Here I am putting some suggestions, which will enable the bank to compete with other banks more effectively & efficiently.

It is observed that the employees were overburdened so they have to stay at branch till late at night. In this way their efficiency is affected and hiring more employees can reduce their work. There should be contingent worker.

The employees should be signed jobs for specific period and than they should shifted to other department so that they gain knowledge of other jobs.

Bank Alfalah Limited should properly advertise and Communicate to public about the services provided by it, so that more customers will be attracted.

The bank’s management should give more incentives and pay scale of officers should be revised & improved.

System and operations should be more defined and organized.

IT draw backs should be improved.

Administration drawbacks should be

improved by the strict control of general

issues.

Audit should be held internally. Rather there should be an Audit Department in the branch to make audit on daily basis. This can become so helpful as different banks are having this department of their own.

Lockers, ATM, all these facilities should be provided to attract more customers.

Expenditures must be control, which are very high.

Bank Alfalah 2.Doc

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