Bank Alfalah completed an internship report to gain practical experience in organizations. The report summarizes the bank's vision to be a leading financial institution, mission to maintain competitive edge through quality and innovation, and philosophy of excellence in service, quality performance, and product innovations. It also provides an overview of the bank's management structure, financial and human resource analysis showing growth, and organizational structure headed by the chairman and CEO.
Bank Alfalah completed an internship report to gain practical experience in organizations. The report summarizes the bank's vision to be a leading financial institution, mission to maintain competitive edge through quality and innovation, and philosophy of excellence in service, quality performance, and product innovations. It also provides an overview of the bank's management structure, financial and human resource analysis showing growth, and organizational structure headed by the chairman and CEO.
Bank Alfalah completed an internship report to gain practical experience in organizations. The report summarizes the bank's vision to be a leading financial institution, mission to maintain competitive edge through quality and innovation, and philosophy of excellence in service, quality performance, and product innovations. It also provides an overview of the bank's management structure, financial and human resource analysis showing growth, and organizational structure headed by the chairman and CEO.
I have completed a report based on my familiarity with my past
studies in order to get a bit familiar with the practical experiences in organizations. By the grace of Allah Almighty I have accomplished this report. Sincerely, to my knowledge and exposure to this subect, I dedicated my little effort to every one who works for the cause of !akistan. I express my appreciation to Bahria "niversity that scheduled and assigned me this report and I hope my efforts will be duly regarded. 1 PREFACE #heory and practice completes the cycle of human instinct $uest for knowledge and his need to solve day%to%day problems systematically. #he purpose of this program is to give practical knowledge about the functions of the organization. #he Internship !rogram also gives better comprehensive and exposure of theoretical concepts, which are studied during BBA as well as helps the students to get ac$uainted with actual working atmosphere and re$uirements in organizations. &or the purpose of Internship I oined Bank Alfalah. 'uring my period of Internship I got a chance to work in different departments and I have tried my best to compile the same in my report. 2 THE VISION (ur vision is to be a leading financial institution, with a niche in areas where we have a competitive advantage with complete banking solutions. (ur focus is on improving performance in each of our businesses to achieve consistent and superior returns for our highly valued clients and stakeholders. 3 THE MISSION (ur mission is to maintain a competitive edge in $uality banking, customer service and profit performance. (ur activities are geared towards making Bank Alfalah a responsible corporate citizen. #he emphasis on )*uality and Innovation+ will remain our key mission statement. ,e will continue to strengthen our position as the leading provider of $uality financial services in !akistan. 4 THE PHILOSOPHY -xcellence in Service *uality !erformance !roduct Innovations 5 INTRODUCTION Banking backgr!n" in Paki#$an At the time of independence there were ./0 offices of scheduled banks in the territories of !akistan. #he 1eserve Bank of India was the only bank to settle the problem of coinage, currencies and exchange etc. #here were 23 non% Indian foreign banks with the status of small branch offices, which were engaged solely in export of corps from !akistan, while there were only 4 !akistan institution i.e. 5uslim commercial bank, 6abib bank 7#', and the Australasia bank. State bank of !akistan was established on 8uly 2, 23./ and assumed full control of banking and currency in !akistan. In order to develop sound banking 9 weeding out weak institutions, the Banking :ompanies :entral Act was promulgated in 23.3, empowering the State Bank to control the operations of banking in !akistan. Another very significant event in the development of banking in !akistan was the appointment of the :redit In$uiry :ommission in 23;3 to examine the scope and working of the institution providing credit facilities to agriculture, trade, commerce and industry and recommended measures for further improvements 6 Bank A%&a%a' Bank Alfalah during the past five years, has assumed a brand new identity plied with a spurred vision and revived commitment, following the privatization of 6.-.:.B in 2330. Since then the Board and the 5anagement of the bank have implemented strategies and policies to carve a distinct position to carve an instinct position for the bank in the market. #he strengths of Abu 'habi <roup have helped Bank Alfalah contribute towards the development of $uality retail and :orporate banking in !akistan. #he bank was ac$uired by the Abu 'habi :onsortium, which is headed by Shaikh =ahyan Bin 5abarak Al%=ahyan, a prominent business professional of the ruling family of Abu 'habi and the 5inister of 6igher -ducation and Scientific 1esearch, ><ovt. of "A-?. (ther members of the :onsortium include 1oyal &amily members and leading businessmen of "A-. #he consortium owns 0@A of the shares while the <ovt. of !akistan has retained the remaining 4@A of the bankBs shares. #he financial and managerial strength of Abu 'habi :onsortium has greatly enhanced the credibility of the bank in !akistan and is reflected in the bankBs improved performance in all the spheres of banking. 7 In pursuance of State Bank of !akistan, directives to all commercial banks to get themselves )rated+. Bank Alfalah also undertook the exercise with !A:1A >!akistan :redit 1ating Agency?. #he premier rating agency, which is an affiliate of IB:A, rated the bank as AA% for long term and A2C for short term. Both ratings are investment grade and denote very high credit $uality and very low expectation of credit risk. #he ratings are applicable to senior unsecured creditors of the bank. In the efforts to branch out overseas, the bank is in the process of ac$uiring a D;A stake in a banking company in Bangladesh. #his ac$uisition will not only help the bank promote bilateral trade with Bangladesh, but also help in the initiation of business with other countries of SAA1: and &ar%-ast region. T'( Manag()(n$ AlfalahBs manegement is known for their hard work, product innovation and dedication to make sure that the development and modernization process keeps the bank ahead of competition. 8 ,ith a team of talented, service dedicated professional bankers, Bank Alfalah commits all of its energies, resources and time to cater to banking and financial needs of its valued clients. &ollowing members form the board of directors of Bank Alfalah. 2. Shaikh =ahyan Bin 5abarak Al%=ahyan >:hairman? D. 5r. Abdullah Ehalil al%5utawa 4. 5r. (mar F. Al%Askari .. 5r. Abdulla =asser 6awaileel Al%5ansoori ;. 5r. =adeem I$bal Sheikh G. 5r. Ikram "l%5aeed Sehgal 0. 5r. 5ohammad Saleem Akhtar >:hief -xecutive? 9 Organi*a$ina% S$r!c$!r( All the affairs of Bank Alfalah are run by the Board of 'irectors, headed by the :hairman and :hief -xecutive, who are responsible for all matters happened in the company i.e. profits, plans strategies, losses and employee satisfaction etc. #he management network can easily be visualized in the organization chart. Manag()(n$ S$r!c$!r( :hairman :hief -xecutive (fficer 5anager Senior Authorized (fficer 10 Senior :lerk 8unior :lerk COMPANY ANALYSIS O+(ra$ing an" Financia% Ana%,#i# #he bank is currently operating in 4/ branches within the country and has been successful during the year on the further mobilization of resources by attracting low cost and stable deposits. Bank Alfalah has shown remarkable progress in their operations within these few years. 'espite notable economic uncertainties, the bankBs financial strength has greatly enhanced during the recent years. #he successful expansion program has proved the bankBs capability and commitment in comparison with the competition in the industry. It is heartening to note that in ust a few years, which are considered as the infancy stage in industry, the bank has increased its branch network a lot. #he 11 expansion program is strategically important to increase customer base and help the bank to approach different customer segments #he bankBs treasury activities comprise of almost client%backed transactions, emanating largely from foreign trade business. #he #reasury is $uite active in both sections of the inter%bank market i.e. foreign exchange and money market. #he bank continues to maintain positive and healthy li$uidity. #heir surplus li$uidity is mainly kept in fixed income securities, issued by the &ederal <overnment of !akistan that can be easily be converted into cash, if necessary. ,ithin the first year >233/? their 'eposits grew up by 42A, Advances by ..A, #rade &inance by almost 2@@A and the total assets by 4;A. #he bankBs position has still improved in the year D@@D. #his situation can be observed in the table on the other pageH 12 I -../ >Billions? -... >Billions? Gr0$' A E1!i$, 2.G42 @.3@2 ;2 D(+#i$# 4@.D@0 D@../D .0 I)+r$# DG.G;/ 24.DD/ 2@D E2+r$# D;.DG2 2G.0;0 ;2 Pr&i$ b(&r( Ta2 ;D..2G. .@@.4;@ 42 Pr&i$ a&$(r Ta2 42@.G2D D2;.4;@ .. T$a% A##($# .@.@3/ D/./;; 43 A"3anc(# D@.DD@ 2G.4;0 D. /4 C!rr(n$ Ra$i :urrent 1atio J :urrent Assets :urrent 7iabilities 13 Y(ar -... Y(ar -../ 1upees in @@@B 0,43@,./2 /,@3@,G0D G,G;.,3GD 0,042,@/0 /4// /4.5 -4 D(b$ $ E1!i$, Ra$i 'ebt to -$uity 1atio J #otal 'ebt Share -$uity Y(ar -... Y(ar -../ 1upees in @@@ D0,24G,;4@ 40,34/,.22 3@@,G/@ 2,4G2,D3D 6.4/-7 -8479: 64 D(b$ $ T$a% A##($# Ra$i 14 'ebt to #otal Assets J #otal 'ebt #otal Assets Y(ar -... Y(ar -../ 1upees in @@@ D/,/;.,G4D .@,@3/,@3; D0,24G,;4@ 40,34/,.22 /4.9 /459 H!)an R(#!rc( Ana%,#i# Bank Alfalah believes that humans are their most valuable assets. In the pursuit to impart sound technical skills to their staff, the #raining and 'evelopment :enter continues to offer programs in several skill areas. #he bankBs training and business philosophy is geared to provide professional, personalized and efficient services to the clients at all times. #he bank is making its own positive contribution to the services 15 culture of the banking system as a whole, providing at the same time a breakthrough to the customers in terms of choice based on $uality. #he bank continues to hire fresh 5BAs from prestigious universities in batches of D@ I D; officers, who then undergo rigorous and intensive training, first at the hands on experience. #he Board places utmost importance to its human asset base. T(c'n%g, Ana%,#i# #echnology and automation play a pivotal role in the progressive development of an organization. It has become impossible to control the operations of a bank effectively in real time situation without the latest technology. #echnological developments are opening up new vistas of solutions for distributing traditional financial products. :oncurrently, rapid change in customer preferences has resulted in maor shift from manual to automated services. Information technology today, is all pervading in the corporate world. 'uring the past years Bank Alafalah made heavy investments towards enhancing its capabilities in the area of automation and information 16 technology. #he bank plans to achieve total connectivity between branches by the end of last $uarter, D@@D. the obectives are to achieve efficiency in services and to control costs. #he bank is working on a plan to increase their A#5 installations and also oin a Switch <roup of other prominent banks. In the first phase of this program, the installation of D0 A#5s is already underway. ENVIRONMENTAL ANALYSIS Branc' N($0rk Bank AlfalahBs obective has been to expand its branch network to meet its clientsB needs. #he bankBs strategy is to maximize the synergies of branch network through an optimal allocation of financial, human and other resources in order to meet the dynamic challenges of present financial environment. Inherited with a network of 4 branches, Bank Alfalah has escalated it to 4/ branches all over !akistan. #he bank is well positioned and geographically poised to cater for increased business demands from its existing and potential clientele. =ow there are branches in almost every maor city. 17 #he bank, at the end of D@@D plans it, that this figure of 4/ branches would reach to .;. &ollowing are the cities in which branches of Bank Alfalah are present. 2. Bahawalpur D. &aisalabad 4. <uranwala .. <urat ;. 6yderabad G. Islamabad 0. Earachi /. 7ahore 3. 5ultan 2@. 5ardan 22. 5ingora 2D. !eshawar 24. *uetta 2.. 1awalpindi 2;. 1ahim Kar Ehan 2G. Sahiwal 20. Sukkur 2/. Sargodha 18 23. Sialkot S(r3ic(# #he BankBs performance over the passing years seems to improve even when faced by challenging economic conditions. #his has been the result of the bankBs highly prioritized product portfolio, specifically tailored to suit the discerning needs and preferences of customers. Besides being focused on :orporate and Investment Banking business, Bank Alfalah is now entering into :onsumer Banking area. In addition to tailor made products to meet customerBs re$uirements, Bank Alfalah offers the following services to its clientsH Ca#' Financ( Faci%i$, #o meet short%term li$uidity re$uirements, the bank offers :urrent &inance &acility to meet working capital re$uirements. A special relationship officer is assigned to look after corporate accounts to ensure smooth and efficient functioning. S$r!c$!r(" Financing #he bank has a dedicated team of thorough professionals providing tailor made financing solutions. In adherence to re$uested 19 re$uirements the team provides cost and time effective solutions ranging from -$uity :onsultation, &inance through :apital 5arkets in the form of #&:s and 'ebentures, "nderwriting and ,arehouse Indirect &inancing through !roect &inancing and Syndication. C%%(c$in Faci%i$, #he bank provides collection facility from any of the 4; branches. (ne can transfer funds from collection accounts from any of the branches to his L her main account on daily basis without any time delays and at very nominal rates. In places where Bank AlfalahBs branches are not available, the bank facilitates funds transfer through strategic alliance with their correspondent banks. Sr$ T(r) ; M("i!) T(r) F!n" P%ac()(n$ #o optimize returns on oneBs surplus funds, the bank offers competitive rates for which they have products that provide returns on daily product basis. In addition, profit is paid on a monthly basis that can boost oneBs annualized rate of return. (ther facilities are as followsH 20 1oyal !rofit >'aily L 5onthly Interest earning accounts in currency? (ne of the fastest and most lucrative &:K accounts mechanism (n line banking A#5 !ersonal loans 7ockers Internet banking :ar &inancing Staff Salary Accounts !ersonal 1elationship Banking C)+($i$r# 7ike all others, Bank Alfalah also has a number of competitors 2. 5uslim :ommercial Bank D. =ational Bank of !akistan 4. "nion Bank .. "nited Bank ;. Allied Bank of !akistan G. :itibank 0. 6abib Bank 7td. 21 /. &aysal Bank 3. !rime :ommercial Bank 2@. !latinium :ommercial Bank 22. Saudi !ak :ommercial Bank 2D. Indus Bank 24. Soneri Bank 2.. #he Bank of Ehyber 2;. Bank of !unab 2G. <ulf :ommercial Bank 20. 5etropolitan Bank 22 MY WORKING IN BANK ALFALAH As stated earlier, I oined Bank Alfalah for the purpose of internship. I have worked here as an internee for two months. 'uring my stay of two months I have worked in different departments. In these departments, I was assigned different obs, which helped me gain some practical experience. I had to report at 3.@@ am sharp and was given a warning that, if I was late for 4 days, I would be fired. It was applicable for all other employees. #he bank timings were 3.@@ am to ;.@@ pm for all other employees, but I am thankful to the manager, who relaxed me and I was allowed to leave at 2.4@ pm due to my classes of the summer semester. #he overall staff was $uite cooperative and friendly, and everyone treated me very well. But at the same time, there was a very strict policy about punctuality as well as discipline. &ollowing are the departments in which I have worked. 23 /4 Car L(a#ing D(+ar$)(n$ I have worked in this department for almost D; days. 5y supervisorBs name was 5r. Imran Shami. 6ere I learned the whole procedure of getting a car leased. 5y duty was to contact clients at the time when their monthly installment was due. 5oreover, 5r. Imran Shami made me deal with customers who came for the purpose of car financing. I used to give out a presentation about all this procedure. In addition to this, I brought . interested customers for Bank Alfalah. All the . were friends of mine, who got their desired cars leased through me. -4 R()i$$anc( D(+ar$)(n$ #he next 2@ days of my internship were in the remittance department. 6ere, my duty was to remit amounts. I was responsible for remitting amounts to different accounts, which were received from foreign countries. 24 64 C!#$)(r S(r3ic(# D(+ar$)(n$ I passed my last 2; days in the :ustomer Services 'epartment. 6ere I was given a telephone line and I had to attend phones and guide people as well as transfer calls to different departments. Secondly I was assigned the duty of opening new public accounts. I opened a number of new accounts during my internship program. 25 IDENTIFICATION OF A MAIN PROBLEM Prb%() It is a universal truth that every thing in this world has its own bright and dark sides. It is the case with Bank Alfalah. 'uring my Internship, I found a number of good things in addition to a few problems. #he first day I entered the bank I was informed that on being late for three days in a month, an employee is fired. -very one has to report at 3.@@ am sharp. Any one coming late is warned and is fired after three days. As mentioned before, I have also worked in the car%financing department. #he second problem was observed there. I noted that there was no separate phone line for that department. 'ue to this, the personnels over there have to wait $uite long for the phone line to be free. S%!$in #he problem is $uite serious, i.e. the rule is $uite rigid and there is no leniency anywhere. A person can have any problem, and at anytime. =o 26 one is informed prior to getting in trouble. If a person gets late, he should be allowed to explain the reason. If the reasoning is ustified, then he L she should be excused. #he second problem is not $uite serious. It can easily be resolved by adding one more phone line in the department. 27 FINDINGS &ollowing are the findings that I obtained during my internship. 2. #he bank maintains a very strict policy about punctuality. D. Internees are treated well. 4. #he management continuously strives to minimize absenteeism in employees. .. "p till now, Bank Alfalah is offering the lowest mark up rates in car financing. ;. #he bank has remarkably escalated from 4 to 4/ branches within !akistan. G. #he bank has heavily invested in order to enhance its capabilities in the field of automation and technology. 0. 'espite the uncertain economic conditions, the banks financial position has improved $uite a lot. 28 /. #he internal computer system is $uite slow and often gets hanged up. Findings Following are the findings that I obtained during my internshi! 9! "he ban# maintains a $ery stri%t oli%y about un%tuality! 10! Internees are treated $ery well! 11! & till now 'an# (lfalah is offering the lowest mar# u rates in %ar finan%ing! 12! "he ban# has remar#ably es%alated from 3 to 35 bran%hes within )a#istan! 13! "he management %ontinuously stri$es to minimi*e absenteeism in emloyees! Operating and Financial Analysis "he ban# is %urrently oerating in 35 bran%hes within the %ountry! 'an# (lfalah has shown remar#able rogress in their oerations within these few years! +ithin the first year ,1998- their .eosits grew u by 31/0 (d$an%es by 44/0 "rade Finan%e by almost 100/ and the total assets by 35/! "he ban#1s osition has still imro$ed in the year 2002! "his situation %an be obser$ed in the table below2 3 2001 ,'illions- 2000 ,'illions- Growth / 29 Equity 1!631 0!901 51 Deposits 30!207 20!482 47 Imports 26!658 13!228 102 Exports 25!261 16!757 51 ro!it "e!ore #ax 524!164 400!350 31 ro!it a!ter #ax 310!612 215!350 44 #otal Assets 40!098 28!855 39 Ad$ances 20!220 16!357 24 %uman &esource Analysis 'an# (lfalah belie$es that humans are their most $aluable assets! In order to imro$e staff1s rofessional 4uality and rofi%ien%y0 the ban# %ondu%ted on56ob training rograms and in house seminars 7 %ourses0 at one training %enter! 'an# (lfalah1s training a%ademy is e4uied with the latest audio5$isual training aids0 whi%h fa%ilitate in the dis%rimination of #nowledge and s#ills! "he ban# indu%ted thirty management trainees0 who are being ta#en through a si85month %omrehensi$e ban#ing training rogram! "he ban# intends to %ontinue0 on a need basis0 su%h rograms ea%h year! #echnological Analysis 30 "e%hnologi%al de$eloments are oening u new $istas of solutions for distributing traditional finan%ial rodu%ts! 9on%urrently0 raid %hange in %ustomer referen%es has resulted in ma6or shift from manual to automated ser$i%es! Information te%hnology today0 is all er$ading in the %ororate world! .uring the year 20000 'an# (lafalah made hea$y in$estments towards enhan%ing its %aabilities in the area of automation and information te%hnology! "he ban# is well ositioned to meet %lient needs0 with imro$ed %ometiti$e ad$antage! %uman &esource Analysis 'an# (lfalah belie$es that humans are their most $aluable assets! In order to imro$e staff1s rofessional 4uality and rofi%ien%y0 the ban# %ondu%ted on56ob training rograms and in house seminars 7 %ourses0 at one training %enter! 'an# (lfalah1s training a%ademy is e4uied with the latest audio5$isual training aids0 whi%h fa%ilitate in the dis%rimination of #nowledge and s#ills! "he ban# indu%ted thirty management trainees0 who are being ta#en through a si85month %omrehensi$e ban#ing training rogram! "he ban# intends to %ontinue0 on a need basis0 su%h rograms ea%h year! 'er$ices 'esides being fo%used on 9ororate and In$estment 'an#ing business0 'an# (lfalah is now entering into 9onsumer 'an#ing area! In addition to tailor made rodu%ts to meet %ustomer1s re4uirements0 'an# (lfalah offers the following ser$i%es to its %lients2 (ash Finance Facility 31 "o meet short5term li4uidity re4uirements0 the ban# offers 9urrent Finan%e Fa%ility to meet wor#ing %aital re4uirements! ( se%ial relationshi offi%er is assigned to loo# after %ororate a%%ounts to ensure smooth and effi%ient fun%tioning! 'tructured Financing "he ban# has a dedi%ated team of thorough rofessionals ro$iding tailor made finan%ing solutions! In adheren%e to re4uested re4uirements the team ro$ides %ost and time effe%ti$e solutions ranging from :4uity 9onsultation0 Finan%e through 9aital ;ar#ets in the form of "F9s and .ebentures0 &nderwriting and +arehouse Indire%t Finan%ing through )ro6e%t Finan%ing and <yndi%ation! (ollection Facility "he ban# ro$ides %olle%tion fa%ility from any of the 35 bran%hes! =ne %an transfer funds from %olle%tion a%%ounts from any of the bran%hes to his 7 her main a%%ount on daily basis without any time delays and at $ery nominal rates! In la%es where 'an# (lfalah1s bran%hes are not a$ailable0 the ban# fa%ilitates funds transfer through strategi% allian%e with their %orresondent ban#s! Sort Term / Medium Term Fund Placement "o otimi*e returns on one1s surlus funds0 the ban# offers %ometiti$e rates for whi%h they ha$e rodu%ts that ro$ide returns on daily rodu%t basis! In addition0 rofit is aid on a monthly basis that %an boost one1s annuali*ed rate of return! =ther fa%ilities are as follows2 32 =n line ban#ing ("; )ersonal loans >o%#ers Internet ban#ing 9ar Finan%ing <taff <alary (%%ounts )ersonal ?elationshi 'an#ing #echnological Analysis "e%hnologi%al de$eloments are oening u new $istas of solutions for distributing traditional finan%ial rodu%ts! 9on%urrently0 raid %hange in %ustomer referen%es has resulted in ma6or shift from manual to automated ser$i%es! Information te%hnology today0 is all er$ading in the %ororate world! .uring the year 20000 'an# (lafalah made hea$y in$estments towards enhan%ing its %aabilities in the area of automation and information te%hnology! "he ban# is well ositioned to meet %lient needs0 with imro$ed %ometiti$e ad$antage! 33