BANK ALFALAH LIMITED

Bank Alfalah’s Mission

To develop and deliver the most innovative products, manage

customer experience, deliver quality service that contributes to
brand strength, establishes a competitive advantage and enhances
profitability, thus providing value to the stakeholders of the bank

Bank Alfalah’s Vision

To be the premier organization operating locally and

internationally that provides the complete range of financial
services to all segments under one
ne roof.

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2. INTRODUCTION

2.1 A Brief History:

Bank Alfalah was incorporated on June 21st, 1997 as a public limited company under the
companies ordinance 1984. Its banking operations commenced from November 1st, 1997.
The bank is engaged in commercial banking and related services as defined in the
banking companies ordinance, 1962. The Bank is currently operating through 104
branches in 36 cities, with the registered office at BA. Building, I.I Chundrigar Road,
Karachi.

Since its inception, as the new identity of HECB after the privatization in 1997, the
management of the bank has implemented strategies and policies to carve a distinct
position for the bank in the market place. Strengthened with the banking of the Abu
Dhabi Group and driven by the strategic goals set out by its board of management, the
Bank has invested in revolutionary technology to have an extensive range of products and
services.

This facilitates our commitment to a culture and seeks out synergies with clients and
service providers to ensure uninterrupted services to its customers. BAL prefers the
requirements of the customers and matches them with the quality products and service
solutions.

2.2 BAL on a way to success:

Now in its eight years of operations this bank continues on its path of strategic excellence
with a special focus on service and value enhancement. The efforts paid off well and
BAL further cemented its position as the leading commercial bank in the market.

The Bank’s core strengths stem from its corporate philosophy which stresses the highest
level of security, reliability and value for its client’s money. At BAL customer retention
is ensured by simply paying closer attention to their needs and never compromising on
quality of service.

Risk Management:

At BAL there is an uncompromising stance on responsible corporate governance and

financial disclosure. Its process flows are engineered, to prudent risk management and
contribute to greater market discipline. Through its own practice BAL aspires to
contribute to the development of a competitive and transparent banking system in the
country.

Consumer Banking:

Since its inception, BAL has made significant inroads in the customer and retail banking.
At BAL there is a strong focus on strategic innovation where innovation is not merely

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restricted to developing new products. Rather this concept is imbibed at every level of
decision making and encouraged in the entire service spectrum. Distribution channels
need to be continually modified as are product offerings. For this purpose BAL further
expanded its branch network which included business units for both conventional as well
as Islamic banking. This strategy is in consonance with the BAL’s mission to provide
high quality and reliable banking services to an increasing market.

Personalized Services:

The BAL believes in enhancing customer satisfaction and loyalty through provision of
high value and customized financial services. The team members concentrate on building
and maintaining the foundation of long term client relationships. Also there is a continual
organization wide effort underway to generate new value enhancing initiatives.

BAL Team:

At BAL the HR function has evolved comprehensive corporate strength where both the
HRD and line managers work together for enhancement of core competence and achieve
overall business goals. BAL’s HR policies are timely and relevant that focuses on
customer service, harmony in corporate culture, employee investment, teamwork and
performance management. The result is a competitive work force that has conferee a
distinct competitive advantage on our bank.

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“FUNCTIONAL DEPARTMENTS”

Account Opening Department

Remittances

Clearing Department

Cash Department

Car financing Department

Credit & Debit Cards

Advances Department

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3.1 ACCOUNT OPENING DEPARTMENT

Introduction:

Bank is a very risky business and to be on a safe side bank always looks for the people
who can be profitable and beneficial part of the bank. So Account Opening is the door for
the people to be a part of any bank. Therefore very much care is required at this step
because this is the way through which bank’s reputation and image can be made or on the
other hand can be spoiled in a moment.. Any carelessness at this step can be very risky
and costly to bear for a bank.

Procedure for Opening an Account:

When a customer comes up for opening an account an officer asks some questions about
the customer and in this little discussion a customer is observed. After that a form with
the name of “Relationship Contract” is offered to a customer. This form includes
questions that cover whole information about the customer, his personal as well as
professional life.

In this whole process an officer keeps on observing the customer. This was the
requirement of customer. Then there is another questionnaire that is filled by an officer
on the basis of his observations for the customer. This form is with the name of Know
Your Customer (KYC).Moreover a customer is kept unaware of KYC.

When a form is completed then Operation Manager checks it, verifies all the
requirements and then signs it. After that Branch Manager puts his signature, after
examining if all the requirements are fulfilled.

Requirements to be fulfilled with a form:

• SS Card: Specimen signature card for the verification of signatures and then that
card is scanned and kept a record in the system and finally attached with the form.
(SS card is attached in Appendix i)

• A separate Account Number is allotted to each account holder

• KYC. ( Attached in Appendix ii)

• CNIC

• And other requirements according to the nature of account are to be fulfilled.

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Nature Of Accounts:

There are following types of Accounts:

• Individual
• Joint
• Sole Proprietor
• Partnership
• Public & Private Company

Individual Account:
Individual includes any person male or female, student or professional, married or
unmarried, salaried one or a business person, or a retired, any of these can open an
account under the category of individual.
Requirements:

• Attested copy of CNIC

• Salary certificate (if salaried)
• Income statement (If businessman)
• Student’s Card (If student)
• Introducer’s name and CNIC number (who is already having an account with
BAL and takes the responsibility for introducing a person)
• Next of kin ( the name of the person who after death of the account opener will
maintain an account)

Moreover, in an individual account, account will be handed only be the person who has
opened this account and any body else’s signatures will not be accepted on cheques or for
other requirements. But if that individual account holder permits any person to handle
this account then he is required to fill a form that is “Mandate By Individual to Enable
Third Party To Operate Account”. And attach it with a form .( Mandate is attached in
Appendix iii)

Joint Account:
Joint Account is one that is opened by 2 or 3 people together, they can be friends or any
family members. Etc.
Requirements:

Requirements for Joint account are all the same as of individual account plus:
They will have to choose for the operation of account, that are:
Joint: For every transaction each person’s signature will be required
Either or Survivor: For every transaction any one can sign.
Next of kin is not required in a joint account.

Sole Proprietor’s Account:

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In a sole proprietorship as there is only one person who is runs his whole business, so
when that owner opens his account he is required to fulfill the following requirements.
• Attested CNIC copy
• Income statement of business
• Letter head with the rubber stamp of company
• Introducer.

Partnership Account:

• 2 or 3 partners can jointly open an account and are required to fulfill the following
requirements:
• Attested CNIC copies of the parties maintaining account
• Introducer
• Partnership Deed
• Income statement
• Letter head with rubber stamp of a company.

Company Account:
Incase of a company account bank has to be very conscious and clear as it requires many
documents and until the documents are not completed bank must avoid to open an
account. The documents are as follows:

• The list of directors along with their signatures

• Memorandum of association of a company Certificate of commencement of a
company
• Attested CNIC copies of operators of account
• Introducer
• Bye laws of the company

A company account is opened after acquiring and carefully going through all these
requirements.

Precautions:

There are some precautions that are to be taken for opening an account:

• If the signatures are shaky then a photograph f that person is required.

• An account opener will have to come personally to open an account
• Staff introducer should be avoided
• Its better to avoid the people which are not able to write their signatures and put a
thumb impression
• But if an account has opened with the thumb impression then a photo is required
of that person an that photo must not be more than 6 months old.

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• When a cheque is presented for encashment, an officer must first of all verify the
signatures from the scanned SS Card, If the signatures matches then cheque can
be forwarded for encashment
Types Of Accounts:

Bank alfalah is offering three types of accounts:

Current Account:
• Current account is opened with an initial deposit of 10,000.
• There is no interest or profit on current account
• I t is an account that can be maintained everyday and every time money is
deposited and withdrawn from this account.
• Mostly business accounts are maintained in current account.
• Charges incase of amount below the requirement , are 100 per transaction.

PLS Account:
• Minimum amount required for opening an account is 5000.
• Contains charges of Rs 150 for the amount below requirement.
• Profit on PLS account is 2.25% semiannually.

Further description of profit rates is give below in a table:

Rates (P.A)%
Deposits For individuals and Corporate For Financial Institutions, NBFIs
and DFI's
PLS Saving Deposits

on Balances up to Rs.24,999/- 2.00% 1.00%

on Rs.25,000/- and above 2.00% 1.00%
PLS 7-29 Days Notice Deposits 2.00% 1.00%
PLS 30 Days Notice Deposits 2.00% 1.00%

ROYAL PROFIT:

Royal profit account is a special offer by BAL that gives around 3% profit per month. Rs.
50,000 is required as minimum balance for opening of account.

Further description of profits is explained in a table below:

Amount Proposed Rates (P.A)

%
From 50,000 To 999,999 2.25%

From 1,000,000 To 9,999,999 3.00%

From 10,000,000 To 49,999,999 3.50%

From 50,000,000 To 99,999,999 4.00%

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3.2 REMITTANCES DEPARTMENT

In remittances department the following services are provided at BAL Sukkur branch:
Rupee Travelers Cheque, Demand Draft, Telegraphic Transfer, Pay Order, Pay Slip and
Money Gram.

1. Rupee Travelers Cheque:

RTC is an instrument that is used for the traveling purpose, it makes it very convenient to
carry money while traveling or keeping emergency cash safe.

Convenient Denominations:
BAL TCS ensure safe and smooth travel with the denominations of Rs. 1000, 5000 and
10000. Free from the risk and hassles of carrying cash during travel, BAL TCs offer
excellent combination that no other TC can contest.

Salient Features:

• Special embossed intaglio printing in the UK, Alfalah security thread and Alfalah
watermark are some of advanced features that make Alfalah TC secure.
• TCs can be refunded without any penalty or loss.
• Alfalah TCs can be transferred and endorsed to anyone.
• Customer doesn’t have to be an account holder to get Alfalah TCs benefits.
• Rs 5 are charged per TC for Alfalah TC holders.

2. Demand Draft:

This instrument is made according to the demand of customers. Through DD a customer

can safely transfer his money from one city to another. DD is basically used for
transferring money outside the city.

A customer makes DD in favor of other person in another city. When advice is sent to
that particular branch of Bank Alfalah then mentioned customer can easily receive money
from there. (DD application form is placed in appendix iv)

3. Telegraphic Transfer:

TT is used to transfer money outside the city in minimum amount of time. Funds can be
transferred within few minutes and maximum one day. Mostly TT is made incase of
urgency.

Features:

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• Beneficiary can be or can’t be an account holder of Bank Alfalah.
• Through TT, funds can be drawn on any branch of Alfalah and not on any other
bank.
• Funds can be transferred with in few minutes.
• Rs. 150 flat charges plus charges according to amount, ie 0.25%upto 10,000. and
so on.
• Customer’s NIC is required for the verification and security.
• Incase of cancellation of TT Rs. 100 flat is charged.

4. Pay Order

Pay Order is used for the payment when customer purchases anything from the market.
PO is used only within the city. Incase of pay order remains within that branch of BAL.

Features
• Charges on PO are minimum Rs 10 and maximum Rs 100
• On cancellation and issuance of duplicate PO Rs 100 flat is charged.
• Through Alfalah PO customers can easily and safely make payments to another
party.

5. Pay Slip:
This instrument is used just like internal documents of bank. Pay slips are formed against
the expenses of bank. Pay slips are formed up to the limit of 10,000.If amount exceeds
from 10,000 then PAY ORDER

6. Call Deposit:
This product is free of cost. Call Deposit is prepared for the customer against any tender
or contractor offered by the Government, or any Gove company. It is usually used for
tenders and bidding. If the CD of any customer is not accepted then amount is refunded.
(CD application form is placed in appendix v)

7. Term Deposit:

Term Deposit is offered to the retired people, who are pensionaries. It is issued for the
period of three years. Moreover monthly profit is also offered on it.

8. Money Gram:
Bank Alfalah Limited, in collaboration with Money Gram, offers remittance service to
Pakistan. Money Gram is a person to person money transfer service that allows
consumers to receive money in just a few minutes, from one country to another.

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Features:

• It is secure and reliable, as it is completely through computer and is handled with

care and without delay.
• MG is available in over 154 countries. It is very fast ands convenient. With MG
money is transferred immediately and takes only 10 minutes to arrive to other
location. There are no complicated procedures and there is no need for credit card
and a bank account.
• Moreover there is another service that a sender can also send a 10 word message
to the receiver, with out any cost.

Procedure:

The procedure is very easy and is explained below:

Customer first ensures that a sender has given him a MG reference number. Then he
visits any BAL’s branch taking his CNIC with him for identification. He gives officer the
reference number and fills in the simple form. ( Form is placed at Appendix_vii____).
After proper verification customer will be given funds immediately, in a local currency.

3.3 CLEARING DEPARTMENT

Banks also provide the service of transfer of other bank’s cheques to their respective
branches. When customers bring other bank’s cheques to their own banks where they are
operating their account, then that bank provides him the facility of clearing the cheques
with other banks. It happens in such a way that every morning each bank’s staff member
gathers at respective State bank’s branches and clear the cheques.

The following functions take place in the clearing department:

• Processing on in-house cheques

• Processing of inter branch cheques
• Processing of outward bills for collection (OBC)
• Processing of inward bills for collection (OBC)

The processes of whole functions are explained next:

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INHOUSE/TRANSFER CHEQUES

Cheques received
from customer
department

Balance verification
and scrutiny

Any Customer advice for

discrepan rectification and
cy cheque marked for
return

Pay-in-slip Entry into SAPC &

stamped and given prepare debit advice
to customer

Authorize DA & attach

Entry into the with cheque and memo
online system

Forward to customer

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INTER BRANCH CHEQUES

Cheques of
other branches
recieved

Detach & add cheques

and pay-in-slip vouchers

Batch header is
prepared

Authorize batch
for Input

Cheques of O/W
transfer report is
forwarded to
respective Next day OIC receives
branch cheques returned along
with debit advice in
duplicate

Duplicate Dr. advice

is filed in “inward
Returns File”

Returned cheques are

forwarded to respective
customer/department

Data entered into the

SAPC for voucher
generation

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IBC (INWARD BILLS FOR COLLECTION)

Cheques
Reviewed (from
Customer/dept)

Particulars are entered

in to IBC register

Drawn Drawn
on on
main another
Br
BAL Bank

Voucher is
Prepared Entry is
Passed

Cheques Cheques
drawn drawn
on main on
BR other
bank

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OUTWARD BILLS FOR COLLECTION (OBC)

Cheques received
from customer dept

Cheques along with

paying slips/ vouchers are
scrutinized and matched

Particulars entered into the

OBC register crossing stamp
affixed & OBC forwarded Copies of stamped
schedule prepared cheques &
forwarding
schedules are kept
Cheques and forwarded for record
schedules are sent to
BAF/respective br.

Entry
passed in
online
register

NO Cheques
Cheques
drawn on
drawn on
other
bank
bank

YES
YES OBC register
A B updated

IBCA is received on Draft is received from

realization the bank

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3.4 CASH DEPARTMENT

A cash department includes two functions:

• Receipt of cash
• Payment of Cash

Cash department is very sensitive department, where due care is required. Incase of
payment or receipt of cash there can be various chances of mistakes or frauds. Therefore,
each and every step is taken here after proper verification. The whole process of receipt
and payment of cash is shown in a flow chart:

Receipt of cash

Depositor brings
cash

Deposits with
pay-in-slip

cashier

Pay-in-slip
properly
filed
NO

YES

Entry into
online system

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Cash Payment:

Customer

Payment
against
Cashier token

YES

Discrepancy

NO
Entry in
online
system

NO Authorizati
NSF
on

YES

Enquiry
Memorandum Memo

Concerned
department

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3.5 CAR FINANCING DEPARTMENT

The facility of Car Financing is offered for the conveniences of the customers who cannot
afford to purchase cars. In this case by offering Car Financing facility, bank shares this
burden of the customers by paying full amount of car to the seller and then recovers from
the customer through installments.

BAL also offers a unique service of Car Financing, in lowest turnaround time, best rates
and unmatched convenience. Bal is one of the market leaders, presently the focus is on
innovation and quality.

Documents Required:

• Two passport sized photographs

• Copy of National Identity Card.
• Bank statement for the last six months
• Salary certificate ( for salaried individuals)
• Business proof ( for a business purpose)
• NTN Certificate
• Co. borrower’s NIC copy ( if car is in name of co borrower)

Features:
BAL’s customers are provided with two dimensions for this product. They have
option either to get the vehicle leased or financed.

• For the convenient of its customers BAL has initiated strategic partnerships
with different leading insurance companies that offers their clients special
high value rates. Insurance is played for the year in advance (at time of
down payment) and remaining in the subsequent equal monthly installment.
• Hypothecation of vehicle is made in the name of Bank Alfalah Limited for
the security purpose
• A customer is required to present postdated cheques that will set him free of
depositing his rental cheques every month
• Loan facility can be availed at minimum amount of Rs.200,000/- and
maximum is Rs. 2,000,000/-
• The loan can be availed from 1 year to 5 years with early adjustment facility
at any time before the maturity.
• Down payment should be 10%of the value of the car.

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3.6 DEBIT AND CREDIT CARDS

Alfalah Hilal Debit Card:

Alfalah Hilal Card is debit card that gives access to customer’s bank account. AHC
allows its customer to purchase goods at merchant establishments at across Pakistan &
abroad and also gives you the freedom to withdraw cash from any VISA/ Electron

Unlike other cards, the Alfalah Hilal Card is very easy to obtain. There is no present
income requirement to enjoy the benefits of this card. All a customer has to do is to open
and maintain an account with any of the branches of BAL. (AHC application form is
placed in appendix vi)

The Alfalah Hilal Card comes with all savings and current accounts except Non resident
(ordinary) accounts and accounts with joint mandate or conditional mandate. However,
accounts with joint/conditional mandate can obtain the Alfalah Hilal Card on request by
completing the required formalities.

The sample of AHC is shown below with its further description:

1 Your Name
2 Your exclusive 16 digit card number
3 Your Photograph
4 Your Signature
5 Validity Period

6 Visa Electron logo and 3-D hologram for card security and to identify the associated
franchise

1 A magnetic stripe containing coded

information for the security of your
card.
2 Your Signature panel
3 Visa Plus Logo
4 Bank Alfalah contact

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How to Operate:

It is easy to operate and can be used on any electronic self-printing POS machine where
VISA is accepted, locally and internationally. No more hassle of remembering your PIN
for retail transactions and no need to go to the ATM for cash withdrawal, one swipe and
your transaction is complete.

The main benefit of being a Alfalah Hilal Cardholder is that a customer enjoys
unparalleled access to his account. Besides, he can control his finances since his spending
limit is determined by the balance in his account. Alfalah Hilal Card is accepted at more
locations worldwide than any other debit card available in Pakistan.

Alfalah Hilal Card is welcomed at all merchant establishments and ATMs that accept
VISA/Electron cards in Pakistan and abroad having self-printing POS terminals.
Presently, the Hilal Card can be used at over 7,000 establishments in Pakistan and at over
13 million outlets worldwide, where the VISA sign is displayed. The card is also
welcomed at over 840,000 ATMs worldwide.

There are some features of Alfalah Hilal Card that makes it unique from all other banks’
debit cards:
• Widest access across the globe that includes 130 countries worldwide.
• Special usage benefits as, exclusive offers and special discounts at over 13 million
merchant outlets.
• PIN based ATM transactions for added security.
• Accepted at more locations than any other debit card in Pakistan.
• It is personalized, as it carries customer’s photograph and signatures, thus also
provides extra security.
• Moreover, Alfalah Hilal Card can be used electronically at any retail outlet or
ATM that accepts VISA cards and displays these logos

Alfalah Visa Card:

Alfalah Visa provides its customers the facility to pay for shopping, travel, entertainment,
meals and much more. Card members are facilitated through a number of promotions
from time to time like:

• Matchless Discounts: Discounts at nationwide merchants’ outlets, making each

shopping spree an exciting one.
• Dine’ a’ Discount: The best discount at a wide range of selective restaurants.
• Fortunes Rewards Program: Exchange of fortune points against an array of
attractive products and services..
• AV is the only card in Pakistan with no joining, annual or renewal fee.

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• Only BAL gives the benefit of lowest markup of 2.25% per month.
• Alfalah Visa Card members can also avail the balance transfer facility at a low
rate of only 1.50%, this is an easy way to settle unsettled credit card payments on
all existing credit cards in Pakistan.
• BAV card is globally accepted at nearly 24 million locations in more than 130
countries and at over 10,000 establishments in Pakistan.
• Through Alfalah Visas, cash advance facility can be availed up to 75% of
available credit limit..
• Alfalah Visa also offers facility of supplementary cards for the whole family. The
family members can then share the customer’s credit limit, and all charges
incurred on the supplementary cards will be reported in a monthly statement.
With Alfalah Visa a customer has an option of paying only 5% of his outstanding
balance by the payment due date. Service charges at the rate of 2.25% per month
will be levied on the balance unpaid and carried forward. These charges are
calculated on a daily basis from the transaction date for all cash and retail
transactions. Then in the coming month customer will have the option either to
make the full payment or pay only the minimum amount due and revolve again.

Types of Alfalah Visa Cards:

Some of the types are as below:

Young Professional Cards:

The card is for people who are:
• Graduate
• Just started their career
• Not qualified for any other credit card’s income criteria

Exclusively Women Card:

Now for the first time in Pakistan BAL has introduced a card exclusively for women. The
women exclusive card has come up with 3 categories of supplementary card:

The son’s card, The daughter’s card and the House Staff card. It enables a woman to get
free of daily hassles of buying groceries, petrol, children’s books etc. as each member can
do his own purchasing.

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3.7 ADVANCES DEPARTMENT:

Introduction:

The credit policy of any banking institution is a combination of certain globally locally
accepted, time tested standards and other dynamic factors dictated by the realities in the
ever changing market place and industry.
The globally and locally accepted standards relate to safety, liquidity and profitability of
the advance whereas, dynamic factors relate to aspects such as nature and extent of risk
profit and margin, spreads credit granting. The key to safe, healthy and profitable credit
portfolios lies in the quality of judgment used by the officers making lending decisions.
They should have thorough knowledge about the borrowers and market conditions and
should be well conversant with applicable credit policies and procedures. They should
also stay updated with the SBP Regulations and circulars, directories and market trends in
order to provide the Head Office the accurate information regarding credit proposals
along with their recommendations so that the right decisions can be made at right time

Types of Borrowers
Following are the people to whom the credit facilities can be provided

1. Individuals
• Existing Members
• Staff Members
• Joint Accounts

Existing account holders can avail the facility of credit on the basis of their account
conduct, relationships and credit worthiness. Whereas, staff members are
administered by Human Resource department

2. Business Entities
• Sole Proprietor
• Partnership
• Limited Liability
• Joint Ventures
• Group Accounts

Types of Target Customers:

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Banks also keep an eye on some customers to be the part of their credit facility. They
are the target customers and their description is given below:

• Credit facilities extended for trade finance, construction, contractor financing

for short to medium term, and on self liquidating basis, supported by cash
flows and acceptable collaterals.
• Bank also considers providing finance for working capital in field of
manufacturing, assembling and processing of goods and commodities for
domestic and export markets, but only if it is secured.
• Well established traders dealing in particular product range with established
market presence, experience and track record.
• Highly valued Multinational Companies and local corporate group with
undoubted integrity and steady cash flows so that failure of one segment of
business will not impair the overall strength of the group.
• Joint ventures of established local groups reputed foreign companies.

Customers to be avoided:

Advance is that kind of activity that is totally risk based and banks have to be very
precautious incase of providing this facility to anyone. When a customer comes to avail
this facility, it would be just a silly thing to offer him credit just considering that it would
generate huge profits for the bank. In this case bank has to forget about profits and give
priority to the reliability, sincerity and honesty of the customer. Therefore there are some
kind of customers that are avoided to be involved in credits in order to maintain the
quality and reputation of bank:

• Having business with no track record

• Business in risky market segment
• New Ventures
• Business not providing basic information
• Small business that can be closed overnights
• Retail dealers in scrap, chemicals, and second hand products.

Precautions & Principles For Lending:

Certain precautions and principles are to be followed at the time of lending to the
customers, they are as follows

• Know Your Customer: An officer before giving him a loan must have full
and proper information about that person. This is very basic consideration for
giving the loan and any carelessness at this stage can take the bank in big
difficulties.
• Purpose Of Facility: The purpose for which advance is availed should be very
clear and in accordance with their policies and principles of the bank.

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• Profitability: Along with the markup rate that is charged to the borrowers
bank should also consider other businesses that can be helpful in enhancing
the profitability.
• Source Of Repayment: Bank must make it clear that what would be the mode
of repayment that will be made by the customer along with his worthiness to
repay the loan on time.
• Security: All advances will be made against adequate security and with the
completion of modalities to enable bank to either have possession or
undisputed title of the securities. The basis f security valuations will be third
party assessment, current market price and forced sale value.

Security Considerations:
Security consideration is the most important aspect in advancing loan to any party.
Bank must pay full attention towards the customer’s will to pay back the credit
facilities extended to them. This will be analyzed on the basis of: Market Credibility,
Professional Expertise, and Business Related Advances.
Security is insured against an emergency incase the borrower fails to repay.
Therefore, to ensure their enforceability, the documents must be properly completed,
signed, stamped, witnessed and registered, whereas, necessary at the appropriate Govt
or public institutions.
A good security is one that has:
• Marketability:
• Easy Ascertainment of value
• Durability
• Ascertainment to title

Margin
Margin is the difference between the securities and loan availed by the customer.
BAL offers loan even up to 50% of the security.

Insurance:
Insurance is an important requirement that is made against stipulated risks and that
bank’s charge on the insurance policy is assigned as required. Furthermore, insurance
coverage should be obtained from the companies which are not on bank’s approved
list.

Modes Of Charge:
Charging a security means making it available as a cover for an advance. The method
of charging should therefore, be legal and perfect. It is important that the charge is
completed and all the relevant formalities are completed with, so that incase of
default by a borrower the security is available to the bank.

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“SERVICES”

Safe Deposit Lockers

Phone Banking

Bank Alfalah ATM

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4.1 SAFE DEPOSIT LOCKERS

BAL provides the facilities of safe deposit lockers to its customers for safe keeping of
their valuables like documents, securities and jewellery etc.

FEATURES:

• Important features of locker facility are as follows:

• Various sizes to choose from small to extra large: small, medium and large.
• Annual locker rent ranges from Rs. 1000 to 3500 only.
• Locker rent is waived for customers maintaining a minimum deposit of Rs.2
million.

Locker Rates:

The annual license fees of the following size4s of lockers will be as per Bank’s schedule
of charges which are:

Locker Size Charges

Small Rs.1000/-

Medium Rs.1500/-
Large Rs.3000/-
Special Rs.3500/-

(Application form for locker is placed in appendix viii)

4.2 PHONE BANKING

Alfalah Phone Banking is available to all customers on a countrywide basis. Customers

can dial 111-225-111 from their respective cities i.e., 21 cities where Bank Alfalah is
present, and get prompt services from the centralized 24 hours phone banking services.

BAL is the first bank in Pakistan to offer centralized UAN connectivity from 21 cities to
its Call Centre with Hunting and ACD facilities.

BAL phone service provides all the possible services to its customers, fro example:
Information, lost or stolen requests, statements requests etc.

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BAL through its commitment to provide superior and improved services to its valued
customers, has offered a nationwide network of ATMs. Now for the convenience of
customers, they can have access to cash 24 hours a day.

BAL ATM network has exploited the latest technology, and is equipped to meet the
highest standards of security and efficiency.

• With the Hilal Card a customer can now:

• Withdraw cash
• Use convenient, user-friendly fast cash option
• Make a balance inquiry
• Get an instant printout of their account balances.
• Get a printout of the last transaction on the spot
• Can change Personal Identification Number (PIN).

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5. SWOT ANALYSIS OF BANK ALFALAH

I made SWOT analysis of Bank Alfalah, in which we I disclosed the Strengths,
Weaknesses, Opportunities and threats of BAL to the extent I could observe. This SWOT
analysis is totally based on my observations that I made in our 6 weeks internship time
period. I made the SWOT analysis of BAL Sukkur branch and BAL as a whole as well:

STRENGTHS:

According to the Bank’s rating this year Bal stands at 5th number and this is really
surprising that with its energetic and dedicated efforts just in few years it has
approached this stage that now Bal is in one of the leading banks in Pakistan. The
strengths of BAL that make it different from all other banks will prove it that it really
stand in list of the leading banks. Some of its strengths are as follows.
.
• BAL is having competitive products.

• This is the only local bank in Pakistan providing its customers facility of
encashment of third party cheques.

• Each and every branch is equipped with a very attractive and effective
infrastructure, making BAL’s services more effective and unique compared to
other banks.

• BAL’s credit cards are considered as the best for having lowest markup, no
activating charges, and with the grace period of 52 days that is really striking for
the customers Moreover; new visa card is a small one that is more convenient to
hold for the customers.

• Car financing is the best in BAL, offering a very lowest and reasonable markup
and a proper schedule and easy calculation method. It has maximum market
shares.

• In Hilal cards the withdrawal limit is 50,000 per day that is really surprising and
attractive for the customers.

• Moreover, BAL is also offering lockers facility with different sizes and with very
reasonable charges.

• First local bank in Sukkur that is offering 24 hours telephone banking.

• BAL gives quick delivery of debit and credit cards within 10 to 15 days as other
banks take 15 to 30 days.

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• Concerning about Sukkur branch another observation is that, BAL is blessed with
a very cooperative, hardworking and efficient staff that makes environment more
attractive for the customers.

• Another strength of BAL is that its parent country is UAE that is a powerful
support for the improvement, reliability and safety of BAL.

• Coming to RTC, the only bank in Pakistan giving facility to customers by offering
different denominations of 1,000, 5,000, and 10,000.

• In trade BAL is also considered as a leading bank. As compared to local banks,

BAL did impost from those countries where from no other bank has yet done.

• Moreover, BAL imported from 14 European countries and this was no doubt first
time in Pakistan.

WEAKNESSES:

Everything has its good picture and a bad one also. Although BAL is a very good bank
with respect to its performance and quality services but still there are some weaknesses
that I observed in all our internship period, These weaknesses mostly cover the Sukkur
branch.

• In Sukkur branch as the rush increases on the counter so it creates problem to

handle and maintain a discipline. And it is also unsafe with respect to safety point
of view.

• BAL in some regions is not having its own ATMs and customers have to use
other bank’s machines by paying extra charges Bal, being one of its leading banks
in Pakistan must consider this very important point as it can lose its customers for
not giving the facility of ATMs.

• BAL on the whole is running on a centralized system, due to which the staff in
each branch does not possess much decision making power and for even very
minor matters they have to concern the Head Office. This centralized system can
be very big hindrance in making\g profits and for the improvement of quality and
services.

OPPORTUNITIES:

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BAL was established in 1997, and in this very short time period it has reached to one of
the leading banks in Pakistan. With this hard work and dedication BAL’s future no doubt
seems to be very strong and it has a lot off opportunities in future.

BAL is strongly focusing on spreading its network and covering more and more market
by establishing new branches. Along with that it is also maintaining its quality service.
And with this pace BAL is expected to have the top position in near future.

THREATS:

Every organization big or small is always having threats in the market. Due to these
threats, organizations strive more and more to be the leaders in the market:

At present a big competitor for BAL is Askari Bank that is a strong threat for this bank,
due to their almost similar products and services. But BAL is trying its hard to overcome
this threat and leaving behind even all other competitors.

6. RECOMMENDATIONS

• Nowadays due to increasing facilities customer’s expectations are also on the rise
and they want the banks to be there 24 hours and ATM has fulfilled this need of
them. BAL is still not having ATMs in many areas and customers by paying extra
charges have to use other bank’s ATMs. So this facility should be provided in
every area at BAL, as the demand for ATMs is increasing very fast and due to
non availability of ATMs BAL can loose many of its customers.

• As I observed here in Sukkur branch that on the counter when rush increases
customers feel inconvenient and unsafe. So queue metrics should be introduced
here so that at a time one customer be dealt.

• BAL is running on a centralized system in which employees are not given much
authority for decision making. And what we have observed here, that for even
very minute matters staff has to consult Head Office. It not only creates delays in
services but also staff feels that it doesn’t have power to make any improvements
or changes in the system or branch so it is better to make this system
decentralized for even better future outcomes.

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• BAL’s credit cards are having a handsome market nowadays and customers
without thinking just opt for BAL’s credit cards. In Sukkur, credit cards are just
offered to potential customers. As there is no team for this task, so a team for
credit cards should be made, that after proper examining and research could
provide the facility of credit cards even in Sukkur.

• Research should be made for opening a branch for Islamic Banking in Sukkur.

• Another very interesting suggestion is that, as the owners of BAL are Arabs,
belonging to UAE, so there should be a uniform dress for the BAL staff
representing Arab’s culture. Dress consisting of a scarf tied with a ring on head
and a black gown with golden borders. This dress should be made obligatory in
every branch.

7. CONCLUSION

Starting its journey in 1997, and now to 2005, in such a short time, BAL has stood in the
list of leading banks in Pakistan. And looking at its policies, strategies, plant and
dedication of whole team it would not be wrong in saying that in very near future BAL
will be at the top of all the banks, on the basis of merit.

A very strong point that has made BAL to achieve this stage is that its entire focus and
core philosophy is in the satisfaction of its customers, and no doubt BAL has also proved
it, by its quality services, unique products, at a very reasonable and affordable charges,
that has also allowed a very common man to be the part of secured and convenient
banking world.

Another strong point of BAL is that it is financially very strong, that is really a powerful
support for BAL.

BAL’s car financing is very competitive and at very reasonable and affordable rates, by
which those people who could never even think of having a car, BAL’s offers have urged
them to take full advantage of this opportunity. Continuing, car facilities with this pace
would generate very pleasant outcomes for BAL in the market.

Customers, no doubt will opt for opening an account with a bank where he gets a friendly
and cooperative environment. And we have observed that BAL is blessed with a team,
that is very cooperative, hardworking, energetic and focus on maintaining good and

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friendly relationships with customers that is a key step for customer’s attraction. At BAL
customer really feels like a king, due to its excellent services, marvelous offers and
unique products.

Coming to Islamic Banking, BAL is also working hard on it and still engaged in
increasing the network of Islamic Banking branches to cover maximum areas .Moreover,
if implemented sagaciously, Islamic banking can contribute effectively to national
economic activities. Nowadays BAL is giving strong focus in research of this field.

Moreover, BAL’s all branches are equipped with very attractive and striking
infrastructure, giving a gorgeous look to every branch and where even customers feel
pleasure to spend their time conveniently.

In the end, I would conclude saying that I feel proud to be a part of BAL by doing my
internship here. Whatever I had heard about bank Alfalah I found it even much more than
that, and with these energetic efforts it seems that Pakistan’s economy is going to be very
strong and its future very bright.

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