Internship report for Bank Alfalah Limited

Submitted by:

Waseem Hussain Bs080400438 Session: Spring 2012

Date: 14-07-2012

Virtual University of Pakistan

Letter of undertaking

Scanned copy of internship certificate

Dedication
I dedicate my internship report to my teachers, friends, and staff of the bank. Everyone I mentioned above has helped me a lot in preparation the report and learning the knowledge about banking. I specially dedicate this report to my parents who inspire me in every field of my life.

Acknowledgement
We are thankful to Almighty Allah for his countless blessings bestowed upon us which made it possible to attain knowledge and use it to the best of our ability. And we are really grateful to our parents who in every phase or our life has helped and supported us to get and impart the best practical knowledge for our better development. I acknowledge that I have completed my internship with the help of my instructor, staff at bank, with help of friends. I acknowledge that I completed my internship report with the guidance of VU instructor. He helped and guided me a lot in preparation the internship report. I also acknowledge that the staff at the bank also helped me in learning and preparing the internship report. I found the all the staff members much cooperative with me. I also acknowledge that my friends and my seniors also helped me a lot in preparing the report. All the seniors and friends were much more cooperative with me and helped me.

Executive Summary
Pakistan after partition, did not come into a strong banking industry and since then saw a number of events in the industry, like the nationalization of banks in the 1970s. However today, the banking industry of Pakistan has been growing over the past few years, mainly because of the consistent policies implemented by the Government of Pakistan, including the privatization of banks in Pakistan; also the State Bank of Pakistans monetary policy has been very friendly toward the banking industry. There are a number of different banks established in Pakistan, including local incorporated commercial banks, foreign incorporated commercial banks, development financial institutions, investment banks, discount & guarantee houses, housing finance companies, venture capital companies, micro finance banks and Islamic banks. Bank Alfalah was incorporated in 1997 and was later privatized by the Government of Pakistan. The Abu Dhabi Group bought the majority shares of the bank and so got the rights to control the banks operations. Since the privatization of the bank, Bank Alfalah has implement different policies to make it one of the best banks of Pakistan, which included commencing new products and services and increase its operations by opening new branches in Pakistan. Today, Bank Alfalah is operating in more than 150 towns of Pakistan with 386 branches, over 400 billion rupees (48 billion US dollars) in assets and is still growing rapidly and operating its foreign branches in Bangladesh, Afghanistan and Bahrain. The financial statistics of Bank Alfalah are as impressive as their human resource.
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The profit after taxation for Bank Alfalah in 2011 amounted to Rs 5,948,685 (000) and its total assets for 2011 amounted to Rs.468,173, 802 (000). The earnings per share of the bank decreased in year 2010 but it has increased in year 2011. Bank Alfalah promotes its products and services through print and electronic media. Bank Alfalah also promotes itself by sponsoring different events. The major 5 competitors of Bank Alfalah pose close competition and are mainly large nationally incorporated banks and a few international banks, that all want to become the leading banks of Pakistan, by creating some edge in the industry. To create this edge, technology has played an important role in the industry as banks are continuously trying to improve its products and services by introducing innovative products. I did my six weeks internship at Bank Alfalah Montgomery Road Branch and worked in account opening department, operations department, and accounts department. Some of the work that I did in these departments included collecting cheques, filling account opening forms, and activity checking. Although there were no such big problems found in the working of Bank Alfalah, there were some problems in training of the employees, incentive schemes and product innovation. Some of the recommendations include training for employees, job rotation, teams work to find innovative products and scholarship programs for employees. Lastly Bank Alfalah has seen a rapid growth in its activities by introducing a range of products and services and showing its existence in the country by opening new branches and in future should keep this energy and always struggle to become the best.

Table of content
Brief introduction of the organizations business sector.09 Overview of Bank Alfalah Limited....10 Brief history.10 Organizational Hierarchy chart....10 Business volume ..12 Product lines ....12 Competitors......16 Brief Introduction of all the departments.....19 Comments on the organizational structure..30

Plan of internship program...31 A brief introduction of the branch where you did your internship..31 Starting and ending dates of your internship31 Names of the departments in which you got training and the duration of your training..31

Training program..32 Ratio Analysis...36 Future Prospects of Bank Alfalah Limited...48 Conclusion....49 Recommendations for Improvement....50 Annexes....51

Brief introduction of the organizations business sector

Banking is one of the most interested businesses all over the world. Banks play an important role in the economy and are considered as the backbone of an economy in almost every country. Banks are guardian to the assets of the general masses. The banking sector plays a significant role in a modern world of money and economy. It persuades and assists many different but integrated economic activities like poverty elimination, resources mobilization, production and distribution of public finance. Pakistan has well developed banking system, which consists of a wide variety of institutions ranging from a central bank to commercial banks and to specialized agencies to provide for special requirements of specific sectors. The country started without any worthwhile banking network in 1947 but witnessed extraordinary growth in decades to come. By 1970, it had acquired a prosperous banking sector. Nationalization of banks in the seventies was a major upset to domestic banking industry of the country, which changed the whole nature of the banking industry. With irrational decision at the top all the commercial banks were made subservient to the political leadership and the bureaucracy. The commercial banks thus lost their assets management equilibrium, initiative and growth momentum. They stopped to be a business concern and became big bureaucracies. The era of nineties was the climax of privatization, deregulation and restructuring in the domestic banking industry and financial institutions. The Muslim Commercial Bank was the first bank to privatize. Today, the banking sector is providing financial solutions to the masses and is growing and becoming a solid partner in the development of the Pakistani economy, this growth prospective has seen different achievements in the banking sector, with the Standard Chartered and Union Bank being the most prominent. Standard Chartered acquired an 80.86% interest in Union Bank Limited for a cash consideration of US$413 million. Other acquisitions contain ABN AMRO acquiring 93.4% interest in Prime Bank for Rs.13.8 billion and Temasek Investment Holding of Singapore taking up a stake in PICIC Commercial Bank. Temasek also has its stake in NIB Bank.

Overview of Bank Alfalah Limited Brief history

Bank Alfalah Limited is a private bank in Pakistan owned by the Abu Dhabi Group. Bank Alfalah was incorporated on June 21, 1997 as a public limited company under the Companies Ordinance 1984. Bank Alfalah is registered at both Karachi and Lahore Stock Exchange with a ticker name of BAFL. Its banking operations initiated from November 1, 1997. The bank is engaged in commercial banking and related services as defined in the Banking companies ordinance, 1962, with the registered office at B.A. Building, I.I. Chundrigar Road, Karachi. Since its beginning, as the new identity of H.C.E.B (Habib Credit and Exchange Bank Limited) after the privatization in 1997, the management of the bank started implementing strategies and policies to shape a distinct position for the bank in the market place. This was further reinforced with a partnership with the Abu Dhabi Group which owns 70% of Bank Alfalah shares. This allowed the bank to invest more in innovative technology to increase its range of products and services, perceiving the requirements of their customers and matching them with quality products and service solutions.

Organizational Hierarchy chart

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Business volume
2011 468,173,802 442,396,764 25,777,038 13,491,563 4,100,264 5,248,059

Assets Liabilities Equity Share capital Reserve Inappropriate profit

Product lines
Products of bank Alfalah Bank Alfalah limited presents lot of products for its customers but the major products are discussed below: Alfalah Karobar finance AKF is a Running Finance facility between Rs 0.50M to Rs 20.0M. At Bank Alfalah, all branches are nominated to deal with AKF business. The function of the AKF is financing procurement of raw material, finished goods and receivables of SME businesses. Structured finance Structured Finance Department comprises a team of handpicked professionals, dedicated to syndicated loans and structured products. The teams proficiency is well known in the marketplace with its ability to assist public & private sector entities, major financial institutions, multinational corporations, domestic & international institutional investors in innovative financing including underwriting & private placements. The scope of SFUs activities also includes optional assignments, such as privatization, Mergers & Acquisitions (M&A), domestic listings, IPOs and restructuring.

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Alfalah Milkiat finance Alfalah Milkiat Finance (AMF) is a sole long term financing facility offered to SMEs to purchase, renovate or expand their business building. It is being offered keeping in mind requirements of the small business owner who needs to take his/her business to the next level. AMF is grouped into four sub categories to help you identify which arrangement suits your needs best. . AMF-1: Acquisition of rented commercial/ industrial property by present tenant.. AMF-2: Construction on owned and in possession commercial/ industrial premises/ plot. AMF-3: Purchase of constructed commercial/ industrial property. AMF-4: Renovation of owned and in possession commercial / industrial property.

Alfalah Quick Finance Alfalah Quick Finance is a personal loan against National Saving Certificates, Prize Bonds, Alfalah GHP Principal Protected Fund & PKR/FCY deposit for meeting personal, family and household needs. It is one year revolving limit with quarterly mark-up payments. The amount of financing under AQF ranges from Rs. 50,000 to 2.5 Crore. AQF shall not exceed 90% of the encashment value of the security offered. In case of financing against Foreign Currency Deposit the maximum financing should not exceed 85% of the deposit encashment value. In case of Alfalah GHP Principal Protected Fund taken as a security the financing approved under AQF shall not exceed 70% of the face value of units held by the borrower. Leasing finance In modern days leasing has now become an economic and financial reality of primary importance. It is the innovation of the leasing techniques and its economical advantages, which has enabled it to enter the world of industrial investment in Pakistan and on the international scene. Lease finance provides a significant source of funds for companies to acquire or use assets. Leasing provides additional earning opportunities to acquire assets and to get the inflows simultaneously out of the operations of the same assets. The ownership of the asset is vested with the Bank (lessor) and in return for rental payments; the client (lessee) has full use of the asset. Being a medium to long term mode of financing, it allows the lessee to use the funds for other

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profitable purposes which otherwise would have been tied up in case of immediate payment for purchase of the asset. Alfalah cards Bank Alfalah Credit Card is your partner everywhere and is globally accepted and welcomed at locations displaying the VISA logo. It is accepted at nearly 30 million locations in more than 200 countries around the globe and over 27,000 Bank Alfalahs establishments in Pakistan. Alfalah VISA lets you pay for shopping, travel, entertainment, meals and much more. Card members are facilitated through a number of promotions from time to time. In addition, there are a number of tactical business partnerships with leading local and international brands for purchase of home applications at exciting Step-BY-Step (SBS) monthly payment plan with free home delivery at lowest interest rates. Rush now to avail matchless features offered by Alfalah VISA.

Platinum Card

It is accepted at nearly 30 million locations in more than 200 countries around the globe and at over 27,000 establishments in Pakistan.

Titanium Titanium MasterCard is your partner everywhere and is globally accepted and welcomed at locations displaying the MasterCard logo.

Gold / Classic This card is perfect card combination for all segments of salaried & professional individuals.

Supplementary Cards Now you can give Supplementary Cards to anyone you care for.

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Alfalah Agri finance Bank Alfalah Limited acknowledging the vital role of a agriculture in the economic development of Pakistan has designed Rural Finance Program named as "Bank Alfalah Zarai Saahulat ". The product is designed to provide for multiple financing requirements of our farming sector. We are caring our customers through chain of complete, well-known and specialized products for agriculture sector. BAL Branches are designed to help the farmers with expert advice, technical know-how and Credit for their mixed activities through timely, affordable and attainable modes to suit farmer requirements.

Bank Alfalah Zarai Saahulat is available for Short, Medium and Long terms. Bank Alfalah Limited Strategy is to focus on following Objectives:

Provide reliable infrastructure for Agri customers. Help farmers utilize funds efficiently and effectively. Provide farmers an integrated package of credit, supervision and technical know-how.

Bank Alfalah Limited is committed to make dreams come true by making Pakistan's Rural Economy healthier and stronger.

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Competitors
Bank al Falah has many competitors in the market which are discussed below: United bank limited MCB bank Askari bank Allied bank Habib bank limited United bank limited It begun with a vision, a vision of unparallel progress and unmatched excellence true to the spirit of the era! November 7th 1959, Pakistan witnessed an event that would change the way we banked forever. It was not just the inauguration of UBLs first branch at I.I. Chundrigar; it was also the birth of the culture of service, a culture of innovation and a culture of financial excellence! By June 1960, shortly after six months of opening its doors to the public, UBL had branches in: Karachi Dacca Lahore Lyallpur Chittagong and Narayanganj

In 1963, UBL became the first bank in Pakistan to have a branch overseas on William Street in London, United Kingdom. True to our promise of providing service and care beyond the ordinary to our customers, UBL and You have had a history. The first saving scheme for school going children was launched as early as 1960 or the formation of Pakistans first Staff College of employees in 1964, UBL, through the inspiration of its staff and the belief of its customers, continued to grow at a spectacular pace. In 1967, UBL had hit the dawn on information in terms of technology, by introducing computer banking to Pakistan and in 1971, UBL once again paved the way by launching 3 online branches in Karachi. The newly formed state of Pakistan was witnessing the boom of industries and commerce cannoned by a bank that believed in the potential growth of Pakistan. Small wonder then, by 1978, UBL had a pledged economic department, had acquired two international banks. UBL also launched supervised credit and small loan schemes for small to medium sized firms as well as agriculture and had made for itself, a strong international presence for we had branches in 4 continents. Throughout its history, UBL has kept pace with and often exceeded the changing needs of changing times. Keeping the tradition of innovation alive, UBL introduced Pakistans first credit card, the UNICARD in 70s and left its mark by launching the Pak Rupees traveler cheques in 1971. Staying true to its roots, UBL was also the first bank to have an Islamic banking division and the first to introduce e-banking facilities at Hajj. In the 1990s the government of Pakistan decided to change the face of banking by creating a blueprint to privatize UBL. At this point, financial experts were called on board to set the bank back on course, and with implementation of relevant changes, the government privatized the
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bank in the year 2002 Best way and Al Ayaan collaborated, forming the cornerstone for the UBL of tomorrow. Today, UBL opens its eyes to a new vision every day, a vision of resurgent brilliance and renewed commitment to our customers. 52 years into our glorious history, UBL is now part of one of the worlds largest financial services groups. MCB bank MCB Bank Limited, with more than 60 years of experience as one of the leading banks in Pakistan, was incorporated on July 9 in 1947. The bank has journeyed remarkable tenure of more than half a century of competitively edged and well positioned heights of success by deploying quality banking, heads on technological developments, professionally leading management and prudent and ethical work methodologies. MCB was nationalized along with other private banks in 1974 as part of Government of Pakistan's economic reform movement and was later privatized to Nishat Group lead consortium in 1991. Since privatization, MCB's growth has been phenomenal. Today, MCB in one of the largest foreign banks in Sri Lanka, the first bank in Pakistan to launch Global Depository Receipts (GDR) in 2006, has strategic foreign partnership with Maybank of Malaysia which holds 20% shares in MCB through its wholly owned subsidiary Mayban International Trust (Labuan) Berhad since 2008, has international indirect regional presence in Dubai (UAE), Bahrain, Azerbaijan, Hong Kong and Sri Lanka and serving through a domestic network of over 1,130 branches and 600 ATMs across Pakistan with a customer base of 4.5 million approximately. MCB is reputed as one of the soundest financial institution and as one of the leading banks in Pakistan with a deposit base of PKR. 462 balance approximately, and total assets of PKR 605 balance approximately. The bank is versed as one of the oldest and most responsible banks in Pakistan and has played pivotal role in representing the country on global platforms while being one of the few institutions that are recognized and traded in the international market. The bank has also been acknowledged though prestigious recognition and awards by Euromoney, MMT, Asia Money, SAFA (SAARC), The Asset and The Asian Banker. Allied bank limited The Bank started out in Lahore by the name Australasia Bank before independence in 1942; and became Allied Bank of Pakistan in 1974. In August 2004, because of capital reconstruction, the Banks ownership was transferred to a consortium comprising Ibrahim Group; therefore, it was renamed as Allied Bank Limited in 2005. Today, with its existence of over 70 years, the Bank has built itself a foundation with a strong equity, assets and deposit base. It offers universal banking services, while placing major emphasis on retail banking. The Bank has a large network of over 830 online branches in Pakistan and offers various technology-based products and services to its diverse clientele.
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Askari bank Askari Bank was incorporated in Pakistan on October 9, 1991, as a public limited company. It commenced operation on April 1, 1992, and is principally engaged in the business of banking, as defined in the Banking Companies Ordinance, 1962. The Bank is listed on Karachi, Lahore and Islamabad Stock Exchanges. Since inception, the bank has concentrated on growth through improving service quality, investment in technology and people, utilizing its extensive branch network which includes Islamic and Agricultural banking. Corporate Social Responsibility is an integral part of the way we do business. In order to fulfill our CSR objectives, we attempt to promote public interest by encouraging community growth and development through sponsoring social service events, supporting education, sports, and environment and also contribute in socio-cultural activities. Habib Bank Limited HBL was the first commercial bank to be established in Pakistan in 1947. Over the years, HBL has grown its branch network and become the largest private sector bank with over 1,450 branches across the country and a customer base exceeding five million relationships. The Government of Pakistan privatized HBL in 2004 through which AKFED acquired 51% of the Bank's shareholding and management control. HBL is majority owned (51%) by the Aga Khan Fund for Economic Development, 42.5% of the shareholding is retained by the Government of Pakistan (GOP), whilst 7.5% is owned by the general public i.e. over 170,000 shareholders following the public listing that took place in July 2007. With a presence in 25 countries, subsidiaries in Hong Kong and the UK, affiliates in Nepal, Nigeria, Kenya and Kyrgyzstan and rep offices in Iran and China, HBL is also the largest domestic multinational. The Bank is expanding its presence in principal international markets including the UK, UAE, South and Central Asia, Africa and the Far East. Key areas of operations encompass product offerings and services in Retail and Consumer Banking. HBL has the largest Corporate Banking portfolio in the country with an active Investment Banking arm. SME and Agriculture lending programs and banking services are offered in urban and rural centers.

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Brief Introduction of all the departments

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 Banks 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: Account opening department Operation department Remittances department Clearing department

Accounts department Cash department Car financing department Credit department Credit card department

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 Basic Banking Account
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Kamyab Karobar Alfalah Mahana Amdan

Current Account
The 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:

Noninterest bearing checking account. Minimum account opening requirement of Rs. 5,000 only. Free Online Banking VISA Debit/ATM card can be used at over 30 Million outlets and at 1.5 Million ATMs across the world No restriction on number of withdrawals and on number of deposits

Saving / PLS Account

In 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:

Profit & Loss Sharing Saving Bank Account. Minimum account opening requirement of Rs. 100 only. No restriction on number of withdrawals and number of deposits. Profit on saving accounts is credited to the customer account on half-yearly basis. Debit card can be used to withdraw cash and make purchases at thousands of outlets across Pakistan which provides access to funds 24 hours a day.

Royal Profit Account

Royal Profit is also opened in BAL and it is not the most common account. Royal profit has some features. Features:-

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Minimum Deposit requirement of Rs. 50,000 only. Higher returns on higher balances. No restriction on number of withdrawals and on number of deposits. Debit card can be used to withdraw cash and make purchases at thousands of outlets across Pakistan which provides access to funds 24 hours a day. Profit is credited to the customer account on monthly basis.

Basic Banking Account

Basic Banking Account is opened is BAL. The minimum amount deposit in this account is very small as compared to other accounts. Features:

Initial deposit for account opening is Rs. 1,000 with no minimum balance requirement. Noninterest bearing checking account. Maximum 2 deposits & 2 withdrawals through cheque are allowed. Debit card can be used to withdraw cash and make purchases at thousands of outlets across Pakistan which provides access to funds 24 hours a day. No restriction on ATM withdrawal.

Kamyab Karobar
Alfalah Kamyab Karobar is type of current account. Customers can be benefited with online banking in this type of account. It is opened with minimum 5000 rupees. This account is good business. Features: Free online banking Free cheque book Free pay orders and demand draft 90% financing on account deposit Visa gold debit ATM card SMS alerts on ATM transactions

Alfalah Mahana Amdan Alfalah Mahana Amdan is a 3 year TDR with expected rate of profit of 10% p.a. This term deposit will provide an opportunity to individual/joint customers to enjoy higher returns that will automatically be credited to his/her current/PLS/RP/BBA account on 1st working day of each month.

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This facility is not available for business and corporate customers. Features:1. Minimum placement limit is Rs. 100,000/- and maximum placement limit is Rs.15,000,000/2. Expected Rate of profit is 10% Per annum (as per PLS governing rules) 3. Profit will be automatically credited on the 1st working day of each month into customers Current/PLS/RP/BBA account 4. Free Personal Accident Insurance coverage up to the deposit amount or Rs. 1,500,000/whichever is lower. 5. Customer can avail financing facility up to 90% of the deposit(as per banks policy) 6. Any Pakistani resident over the age of 18 can open this account 7. Alfalah Mahana Amdan term deposit can be maintained only at any one BAL branch with a maximum cap of Rs. 15 Million. An undertaking shall be obtained from the customer certifying that he/she is not availing Alfalah Mahana Amdan Term Deposit Receipt facility from any other BAL branch.(included in AOF) 8. Alfalah Mahana Amdan TDR will be issued for three years tenure with auto renewal facility of principal amount i.e. the facility will be renewed automatically on maturity (i.e. 3 years) 9. Alfalah Mahana Amdan TDR will be subject to Zakat, Withholding Tax as well as any other applicable taxes

Operation department
Operation department includes two major departments which are remittance and clearing department.

Remittances department
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 in remittances Four parties involved in remittance: Remitter Remittee Issuing Bank Paying Bank

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Remitter

Remitter is the party who starts, 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 branchs customer. 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

The bank sends or affects the remittance through demand drafts, telegraphic transfers, or Mail Transfers. 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 of remittances 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.

Clearing department
The 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 By clearing means sometimes the account holder of Bank Al-Falah Limited present 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 these 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. Types of clearing

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There are four types of clearing Inward Clearing Outward Clearing Intercity Clearing Same Day Clearing

Inward Clearing

Those Cheques and other negotiable instruments which are drawn on BAL Montgomery Branch Lahore, sent by other banks, constitute the inward clearing of Bank Al-Falah Limited. After having all the stamps and dates of cheques confirmed, the concerned drawers accounts are debited in BAL Montgomery Branch Lahore. Outward Clearing

When cheques and other negotiable instruments drawn upon other banks like City Bank, MCB, ABN-AMRO or Askari Bank of the same city (Lahore) are presented in BAL Montgomery Branch to deposit them in the respective payees accounts, these instruments are lodged in outward clearing of BAL Montgomery Branch. Inter City Clearing

The cheques that are presented in intercity 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. Same Day Clearing

The cheques that are presented in same day clearing are the local cheques and these cheques are clear in same day. Basically it is the benefits that are provided to customer.

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. Activities The accounts department deals with various routine activities for the bank. The main activities performed by it are:-

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Budgeting Reporting Maintenance & depreciation of fixed assets Miscellaneous functions

Budgeting

Accounts 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. Reporting

The 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. Maintaining of Fixed Assets & their Depreciation

Accounts 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. Miscellaneous Functions The accounts department also performs some other miscellaneous functions like Closing Entries Daily activity checking Report Generation Minor expense recording

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. Daily Activity Checking

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All the operations performed in various departments of Bank Al-Falah Limited Montgomery Branch Lahore 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. 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. Minor Expense Recording

The account department of BAL Montgomery Branch has to record even the minor expenses of the branch like tea for the staff, stationery for the branch.

Cash department
The cash department is the most important department of the bank. It receives cash from customers and then deposits it into the accounts of the customers and maintained their balances. The officers in this department are called teller and there were four tellers at the counter. This department involves in two activates: Deposit cash in customers account Make payments from customers account

Deposit Cash in Customers Account

When the customer want to deposit amount in his account at opening of account or after that then he has to fill a deposit slip that shows the amount and the account in which the cash will be deposited. Then teller will receive amount and credit the customers account that shows increase in customers bank account. Make Payments from Customers Account

When the customer draws a cheque on the bank to pay a certain amount then teller will debit the customers account that shows reduction in his account balance.
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Finance/credit department Car finance

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 car leasing

BALs 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.

Home finance
With this facility, you no longer need to just dream about the home you want for yourself and your family .We will provide you up to Rs. 10.00 million or 70% of the purchase price of the property (whichever is less), so that you can realize your dream and enter the reality of owning a home. Payment period ranges from 3 to 20 years. You already own a home, but need extra space for a growing family. Simply apply for financing of up to Rs. 3.50 million or 40% of the surveyed value of your home (whichever is less) and get yourself the extra space! You can stretch payments for up to 10 years You have a plot and need finance to construct a home, which excites everyone in your family! No problem. We will provide you up to Rs.10.00 million, or 70% of the estimated value of constructed property to enable you to say good-bye to rent forever! Even if you don't have a plot, we will provide you up to 60% of the value of the plot that you have selected to purchase! Do we excite your imagination? Payment period ranges from 3 to 20 years. Does your existing installment on a home finance leave you with nothing to spend? You need not worry anymore because we have genuinely low rates and payment options that could leave more funds with you each month. With our BTF, repaying your home finance will not make you break
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into a sweet! Transfer up to Rs. 10.00 million or 100 % of the existing finance, whichever is less. Stretch your repayment period for up to 20 years again! The crown jewel of our Home Finance Scheme, the golden opportunity for someone starting a career to buy an already constructed housing unit so early in life! We offer a moratorium of up to 3 years in principal payments, for a financing of upto 20 years. You service only the mark-up element initially, and principal repayment starts after the end of moratorium period. Home Start is specially designed for young people to own a home of their own.

Credit department
A good financial support when officials of this department invest money of depositors into feasible projects by lending loans to various business concerns. As the core activity of Commercial bank is to provide short-term finance, which is mostly for working capital requirements. As business concerns have money to complete the one production cycle, but it is not necessary that amount would be received just after sale, but credit sales are also made. So to finance next production cycle they obtain loans from commercial banks on short-term basis, for continuity in operations. Evaluation of client Financial Statement Analysis Nature of Business to be considered Bank References Plant Visit Credit Rating Report from SBP Processing of a credit line proposal form

Principle of lending Before describing principles of lending, basic considerations in primary evaluation of credit proposal is necessary to be mentioned here: Purpose of Facility: Should be Legally/Morally Valid/Legitimate Should conform to the Bank's Credit Policy guidelines Should conform to the guidelines provided by the State Bank of Pakistan Should be geared towards meeting national economic priorities

Amount of Facility: Should be within the actual requirements of the borrower Should be such that the principle of maintaining a diversified portfolio is not sacrificed, without any extra ordinary considerations
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Customer should not be working on borrowed capital only, there should be substantial own stake of the customer.

Period of Facility: Should match the availability of resources Should conform to the bank's policies/guidelines Should conform to the actual requirements of the customer

Repayment: Period of repayment should be specific and should match the cash flow of customer's business. Primary and secondary sources of repayment should be specifically identified.

Security: The facility should be fully secured, in light of security and margin requirements determined by the bank and the SBP. Market Reputation: The customer should have good market reputation & standing. Discussion on the principles of lending Based on the aforementioned considerations, following principles of lending have been evolved. Safety Safety covers the elements of character, capacity, capital, and security offered/held. Security should be identifiable, enforceable, realizable and valuable, in order to ensure safety of the facilities committed. The borrower should have impeccable character market standing and reputation. He should be reliable and dependable for meeting his commitments and the terms of the facility. The capacity or capability of the borrower to manage his business and generate enough profits and cash flows to meet his commitments for repayments and debt servicing is of pivotal importance. By capital is meant the monetary worth of the customer and his own resource base.

Liquidity

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Covering the element of capability to liquidate or repay on maturity and also prior to maturity, in case of need, Ask how "Liquid a loan is, not just how good". Does he have an identified primary liquid source of repayment? This will determine his ability to repay the bank's facilities. It is also important to determine the amount that can be lent as a onetime transaction or as a continuing credit line, depending upon customer's requirements, capacity to repay, trade cycle, business turnover, cash flows and the regulatory guidelines.

Comments on the organizational structure

The organizational structure of all the private institutes is good. The organizational structure of Bank Alfalah Limited is very good. The BAL is working efficiently under this structure and has earned 4 billion profits during the year 2011. According to my branch manager, the organizational structure of the Bank Alfalah is very good structure and whole the organization is working under this structure efficiently and effectively.

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Plan of internship program

a. brief introduction of the branch where you did your internship I have completed my internship at Bank Alfalah Limited Montgomery branch. It was established on 7 November, 2009 on Montgomery road. It is situated at 65 Montgomery road, Lahore. This is business market area, situated at almost mid in the Lahore. This market is mostly auto market. The BAL Montgomery branch has many customers of this market as well as outside the market. Montgomery branch has good value in the market. It has good assets worth and good profit ratio. Montgomery branch has approximately 485 million of assets, 481 liabilities, and profit 4 million. Montgomery branch has good and cooperative staff. I learnt much knowledge from the staff about banking. It was pleasure of mine to have internship in the Montgomery branch of BAL. b. Starting and ending dates of your internship I started my internship from May 28, 2012 and end of training was July 9, 2012 at Bank Alfalah Limited. My internship duration is 43 days. c. Names of the departments in which you got training and the duration of your training

Operation depart
Operation department plays important role in the bank. It is vast department which include many sub department which are written below: Cash transfer Remittance Clearing Transfers

Account opening department

Account opening department is one of the departments that come under the retail/general banking facilities provided by Bank Alfalah Montgomery branch. I was trained about account opening. I was learnt the basic requirements of account opening. I have often dealt with customers indirectly about account opening matters. The duration of my training in account opening department was 2 weeks.

Account department
Account department is backend department at bank Alfalah limited. There are several tasks which are performed in this department. Important task are reports, income and expenses, budget, activity checking, storage of record, and payments. I was given training about the tasks which are fulfilled in account department. My training duration in account department was 1 week.
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Training program
In large branches of Bank Alfalah, all these jobs are done by different departments; all these jobs are done by operation department. Operations department is sometimes also known as the Transact department.

Operations Department
The operations department is responsible for three major activities: Clearing The clearing department is responsible for the clearing of all cheques that the bank receives daily and the different types of clearing cheques that come in the bank are: Transfers Transfers are conducted by Bank Alfalah Montgomery branch, using its software Bank Smart. There are two types of transfers: Internal Transfers Online Transfers Remittances There are two main types of instruments that are used to transfer money, which are as follows: Pay order: Used to transfer money within the city Demand Draft: Used to transfer money outside the city Cash Transfers The cash transfers in the transact department are responsible with the cash deposits and withdraws made by Bank Alfalah Montgomerys account holders. There are two types of cash withdraws and deposits. The first is when a Bank Alfalah Montgomerys account holder either deposits or withdraws cash, while the second one is when a Bank Alfalah account holder, with an online account can withdraw or deposit money to his account from the Montgomery branch. Cash & Cheque supervision The operation manager supervises the cheque and cash slips. After the supervision, the slips are sent to cash department for further process. Such slips can be used for deposit the cheque in account, transfer of balance from one account to another, deposit the cash local or online.

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Stop payment Payment of a cheque or more cheques those are lost by customer can be stopped by a simple process. Stop payment method is adopted so that illegal transaction of lost cheque can be stopped. Customer has to fill a form to stop the payment of the cheque. This method has specific charges. Cheque book requisition This is an application made by customer to issue a new cheque book. It is a type of form which is signed by customer and sent to head office for the cheque book. Simply customer requires cheque book. I was given the concept of cheque book requisition. Cheque book issuance It means issuance of new cheque book to the customer. The bank issues the cheque book on the request of the customers. The bank receives the cheque books from head office. I often dealt with customers indirectly. Cash transfer supervision Cash is transferred locally or online. If the cash is transferred from one account to another account within one branch, it is known as local transfer. If the cash is transferred from one account to another of two different branches of Bank Alfalah Limited, it is known as online transfer. The operation manager of Montgomery branch supervises the cash transfer entries. Cash withdrawal supervision Cash withdrawal is possible through ATM and cheque. The operation manager also supervises the cheques for withdrawal. Cash slip filling Cash slip is used to deposit the cash local or online. It is necessary for deposit the cash. Cheque slip filling Cheque deposit slip is filled to deposit the cheque in customers account. Cheque is collected by bank local transfer, online transfer, and clearing.

Account opening department

Accounts opening department is one of the departments that come under the retail/general banking facilities provided by Bank Alfalah. Some of the major deposit accounts opened by Bank Alfalah are discussed below:
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Major Deposit Account Current Account Current Accounts are non interest bearing accounts that have a minimum account opening requirement of Rs 10,000. No Zakat is deducted on the accounts balance. Furthermore all current account holders receive a Hilal debit card and there are no restriction on the number of withdraws or deposits made to and from the account. Profit& Loss Saving Account Profit& Loss saving accounts can be opened with a minimum balance requirement of Rs 5,000 and profit is credited on a half yearly basis. There are no restrictions on the number of deposits and withdrawal made to and from the account and all account holders receive a Hilal debit card as well. Profit and loss saving account cannot be opened by a business corporation, however can be jointly opened by individuals. Profits are paid at 2% on all account balances. Basic Banking Account (BBA) Basic Banking Account was introduced by banks on an order by the State Bank of Pakistan and is current in nature. There is no minimum balance requirement for BBA, however initial deposit must be Rs 1000. Maximum two withdrawals and deposits are allowed by cheque, while there is no restriction on ATM withdrawals. Royal Profit Account Royal profit accounts are opened with a minimum balance requirement of Rs 50,000. The basic aim of this account is that the higher the balance the higher the return, as profit is credited on a monthly basis. The profit paid to account holders is as follows: Kifayat Account Kifayat account is another saving account product that can be opened with a minimum balance requirement of Rs 10,000, with a maximum limit of Rs 1 million. Profit is calculated on a monthly basis, while it is credited on quarterly basis. Bank Alfalah pays 7% pa interest on Kifayat Account.

Accounts Department
Accounts department is a backend department at Bank Alfalah Limited that performs the following functions Reports It generates reports like Statement of Account Activity (a report on the activity of all accounts at Bank Alfalah), Statement of Affairs (a report on the assets and liabilities of Bank Alfalah), Statement of Foreign Exchange (a report on the foreign exchange currencies at the bank) and Statement of Profit & Loss (a report on the income and expenditures of Bank Alfalah). These reports can be generated at daily, weekly, monthly, quarterly or yearly basis as required by the bank.
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 Income and Expense The department also needs to calculate the revenues and expenses, control expenditure and forecast profits every month. Budget Formulation of yearly budgets & targets in consultation with the branch manager is also done by the accounts department. Storage of Records Accounts Department also has the duty to store vouchers and system generated reports. Payments The accounts department is responsible to pay vendors on behalf of the bank with authorization from the branch manager. It also has to amortize large payments and calculate depreciation of branch assets. Activity Checking In the accounts department, I had to do daily activity checking and there are four stages in which activity checking takes place: Collecting vouchers, cheques etc from all departments Sorting Vouchers Checking Activity Packing

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Ratio analysis
Ratios required for Bank

1. Net Profit Margin 2. Gross Spread Ratio 3. Non Interest Income to Total Income Ratio 4. Spread Ratio 5. Return on Assets (ROA) 6. Du Pont Return on Assets Ratio 7. Return on Total Equity (ROE) 8. Debt Ratio 9. Debt / Equity Ratio 10. Times Interest Earned Ratio 11. Advances / Deposits Ratio 12. Operating Cash Flow Ratio 13. Dividend per Share 14. Earnings per Share 15. Price/Earning Ratio

1. Net profit margin

Net Profit Margin

Net profit after taxation * 100 Net sale

Ratio Names Net profit margin

Year 2011
(3,503,130

Year 2010
(3,688,875

Year 2009
(4,369,198/10,907,132)*1 00 =40.05%

/18,610,693)*100 =18.82%

/13,674,808)*100 = 26.97%

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Interpretation:
Net profit margin indicates the profit level of the organization. It is useful when comparing the companies in similar industries. A higher profit margin indicates the greater control over its assets. BAL has its net profit margin of 40.05% that is good for BAL but in the nxt year it has decreased to 26.97%. In 2011 it is constantly decreased to 18.82%. Decreasing the net profit margin is not good for BAL.

2. Gross spread ratio

GSR Net Markup Income Markup earned
Year 2011 18,610,693 /44,298,178 =0.4201 times Year 2010 13,674,808 /37,530,256 =0.365 times Year 2009 10,907,132/35,561,312 =0.31 times

Ratio Names Gross spread ratio

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Interpretation:
Gross spread ratio looks at the spread of interest between borrowing and lending. We can use GSR to determine the profitability, leverage, and liquidity of a bank. The GSR ratio of BAL is constantly improving as we can see the graph.

3. Noninterest income to total income ratio

Non interest income Total income

Ratio Names Noninterest income to total income ratio

Year 2011
5,367,713/18,610,693

Year 2010 4,708,161/13,674,808 =0.343 times

Year 2009 5,182,253/10,907,132 =0.48 times

=0.29 times

Interpretation: Noninterest income to total income ratio is decreasing permanently over the years of BAL.

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4. Spread ratio

Spread ratio
Ratio Names Spread ratio

Interest earned Interest expenses

Year 2011
44,298,178/25,687,485

Year 2010
37,530,256/23,855,448

Year 2009 35,561,312/24,654,180 =1.4424 times

=1.7245 times

=1.5732 times

Interpretation:
A commonly used ratio is two short options for every option purchased. The spread ratio of BAL is increasing constantly.

5. Return on assets
Earning before interests & taxes Return on Assets= * 100 total assets

Ratio Names Return on assets

Year 2011 (19,648,906/468,173,80 2)*100 =4.2%

Year 2010 (14,122,586/411,483,83 9)*100 =3.43%

Year 2009 (12,017,858/389,070,05 5)*100 =3.089%

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4.5 4 3.5 3 2.5 2 1.5 1 0.5 0

2009 2010

2011

Return on assets

Interpretation: An indicator of how profitable a company is relative to its total assets. ROA gives an idea as to how efficient management is at using its assets to generate earnings. The ROA of BAL is constantly increasing as mentioned in the above graph. It has increased from 3.089% to 4.2% till 2011.

6. DuPont return on assets

sale Net income DuPont Return on Assets= * * 100 sale total assets

Ratio Names DuPont return on assets

Year 2011 (5,948,685/18,610,693) *(18,610,693/468,173,8 02)*100 =1.27%

Year 2010 (3,688,875/13,674,808) *(13,674,808/411,483,8 39)*100 =0.8964%

Year 2009 (4,369,198/10,907,132) *(10,907,132/389,070,0 55)*100 =1.122%

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Interpretation:
It is a method of performance measurement, which was started by the DuPont Corporation in the 1920. Assets are measured at book value rather net value in order to get higher return on equity in this method. According to above calculation, the BAL has 1.122% ROA in 2009 which was decreased to 0.8964% in the 2010, but BAL made some decisions to improve the ROA and led to 1.27% in the year 2011 that is good indicator for BAL.

7. Return on total equity

Net income Return on Total Equity = * 100 Total equity

Ratio Names Return on total equity Year 2011 (5,948,685/25,777,038) *100 = 23.07% Year 2010 (3,688,875/22,305,544) *100 =16.53% Year 2009 (4,369,198/22,133,420) *100 =19.74%

Interpretations:
Return on equity measures a corporation's profitability by revealing how much profit a company generates with the money shareholders have invested. In the above calculation the ROE of BAL in 2009 is good but it has decreased in the next year, but in the 2011 the ROE has increased efficiently to the 23.07%.

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8. Debt ratio
Debt Ratio = Total Liabilities Total Assets

Ratio Names Debt ratio

Year 2011 442,396,764/468,173,80 2 =0.9449 times

Year 2010 389,178,295/411,483,83 9 =0.9457 times

Year 2009 366,936,635/389,070,05 5 =0.9431 times

Interpretations:
Debt ratio indicates what proportion of debt a company has relative to its assets. The measure gives an idea to the leverage of the company along with the potential risks the company faces in terms of its debtload. If the company has debt ratio more than 1, it indicates that company has debts more than its assets. The BAL has lowest debt ratio in 2009 which was increased to 0.9457 in year 2010 but again decreased to 0.9449 in year 2011. It is indicated that BAL has lowest risk in 2009 because the debt ratio is lowest in this year.

9. Debt equity ratio

Debt / Equity Ratio =

Total liabilities total share holder Equity

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Ratio Names Debt/equity ratio

Year 2011 442,396,764/25,777,038 =17.16 times

Year 2010 389,178,295/22,305,544 =17.44 times

Year 2009 366,936,635/22,133,420 =16.57 times

17.6 17.4 17.2 17 16.8 16.6 16.4 16.2 16 Debt equity ratio

2009

2010
2011

Interpretation:
It indicates what proportion of equity and debt the company is using to finance its assets. A high debt/equity ratio generally means that a company has been aggressive in financing its growth with debt. In 2009, the debt equity ratio is lowest as compare to other years.

10. Time interest earned ratio

Times interest earned

Earning before Interests & Taxes Interest Expenses

Ratio Names Time interest earned ratio

Year 2011 19,648,906/14,215,188 =1.38 times

Year 2010 14,122,586/12,753,841 =1.11 times

Year 2009 12,017,858/11,001,542 =1.09 times

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Interpretation:
This ratio is used to measure a company's ability to meet its debt obligations. The time interest ratio of BAL has increased consistently over the years.

11. Advance deposit ratio

Advance / deposit ratio =

Ratio Names Advance deposit ratio

Advance deposit
Year 2011 198,468,512/401,247,88 6 =0.5 times Year 2010 207,152,546/354,015,31 1 =0.59 times Year 2009 188,042,438/324,759,75 2 0.58 times

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Interpretations:
A commonly used statistic for assessing a bank's liquidity by dividing the banks total loans by its total deposits. The advance deposit ratio of BAL has increased from 0.58 to 0.59 in 2010, which again decreased to 0.5 in year 2011.

12. Operating cash flow ratio

Operating cash flow ratio = Operating cash flow current liabilities

Ratio Names Operating cash flow ratio

Year 2011 54,274,913/15,831,207 =3.43 times

Year 2010 18,112,043/13,895,668 =1.30 times

Year 2009 19,945,927/13,952,781 =1.43 times

Interpretation:
A measure of how well current liabilities are covered by the cash flow generated from a company's operations. The operating cash flow ratio of BAL is increasing consistently over the years.

13. Dividend per share ratio

Dividend Per share =

Total dividend No. of outstanding shares

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Ratio Names

Year 2011
191,708/1,349,156,250 =0.000142 Rs

Year 2010 204,425/1,349,156,250= 0.000152 Rs

Year 2009 248,217/1,349,156,250= 0.000184 Rs

Dividend per share ratio

Interpretation:
The sum of declared dividends for every ordinary share issued. The dividend per share of BAL has decreased in 2010 as compare to 2009, but the dividend per share has increased in year 2011.

14. Earnings per shares

Earning per share =

Net income Number of shares outstanding

Ratio Names

Year 2011 5,948,685/1,349,156,250

=0.0044 Rs

Year 2010 3,688,875/1,349,156,25 0 =0.0027 Rs

Year 2009 4,369,198/1,349,156,25 0 =0.0032 Rs

Earnings per share

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Interpretation:
Earnings per share serve as an indicator of a company's profitability. The BAL has its EPS 0.0032 which is decreased to 0.0027 in 2010, but later it is increased to 0.0044 in 2011.

15. Price earnings ratio

Price / Earning Ratio =

Ratio Names

Market value per share Earning per share

Year 2011 10/0.0044 =2272.72 Rs Year 2010 10/0.0027 =3703.7 Rs Year 2009 10/0.0032 =3125 Rs

Price earnings ratio

Interpretation:
A valuation ratio of a company's current share price compared to its per-share earnings. The price earnings ratio of BAL is 3125 in 2009 which has increased to 3703.7 in 2010, but decreased to 2272.72 in 2011.

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Future prospect of the Bank Alfalah Limited

The Bank Alfalah and Abu Dhabi Group are not looking to exit Pakistan through divestment or sell off and they will very much stay in Pakistan. The CEO said, "The Bank is forcefully looking for growth opportunities in Pakistan, which is evident from the growth of its branch network across the country." the detailed overview of the Bank`s operations and future expansion plans, which started operations in 1997 with just three branches and virtually no banking infrastructure is today the 6th largest bank in Pakistan with 386 branches in 150 towns, over 400 billion rupees (48 billion US dollars) in assets and is still growing rapidly. The bank is planning to open 24 more branches and looking for opportunities to expand foreign operations in Hong Kong & Beijing in addition to Bangladesh, Afghanistan, UAE, and Bahrain. The Bank also has the distinction of having the second largest Islamic Banking operations in Pakistan. Commenting on the perception of higher interest rates being changed by the banks in Pakistan, the CEO said that this issue requires more subjective analysis because while the old and more established banks have low cost assets, new comers of young banks such as Bank Alfalah have a much higher costs of deposits. BALs reliable track record of strong performance in Pakistans competitive banking sector has made it stand out as one of Pakistans most important banks and the flagship investment of the Abu Dhabi Group in Pakistan. Bank Al Falah famous itself through the introduction of inventive financial products including car financing which it introduced for the first time in Pakistan.

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Conclusion
Bank Alfalah (BAL) has made significant in building of strengthening both the corporate and retail banking sectors in Pakistan. Bank Alfalah views specialization and service excellence as the foundation of its strategy. The people of bank innovation, reliability, creativity, customized services and their implementation are the key ingredients for their future growth. Based on this approach, their Treasury Division and the Structured Finance Unit have been geared to provide specialized services to the business customers. Revenues from these activities have started yielding dividends and they expect important growth in these areas in the coming years. While building on their in depth awareness with their customers needs and expected developments in the banking industry, the Retail and corporate areas of their processes will carry on to provide a strong and stable base to the business of the Bank. They are conscious that they have stepped into the 21st century and they must meet its challenges by acquiring the highest levels of Technology. They will thus be accelerating their enable them deal out their products and services through most competent and modern resources. They say that they will invest in the modern tools and considerable allocation of resources will be made to attain this objective during the current year. Their program to commence real time on line Banking Services and introduction of ATMs at strategic positions have been firmed up and it will be fully operational during the year 2001. Their focus would be to continually seek out development opportunities through increased quality assets and by contribution a wider range of products and services to their esteemed customers. There are significant growth opportunities for Bank Alfalah and they are positive in their ability to grab them. They are committed to attract the shareholders value and look forward with greater hopefulness to an affluent future for Bank Alfalah Limited.

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Recommendations for Improvement

Based on my six weeks internship and ratio analysis, I recommend some of the improvement. Net profit margin of the BAL has decreased in 2011 as compare to 2009. The BAL should adopt some of the techniques to improve net profit margin. Net profit margin should be increased on regular basis. Bank Alfalah should build up a modern connectivity architecture to efficiently sustain an online connection of the branch with other branches and also the ATM link, which may contain using modern technologies like fiber cables, routers etc. Training programs should be conducted in every city, rather than just two centers, for all Bank Alfalah employees. These training should relate to all aspects of banking and may also be conducted with other banks as a joint program. Incentive schemes should be developed for the employees that can help motivate them, which might include: Personal loans and car financing facilities for all ranks of employees Scholarship programs for all employees Introducing employee awards at branch and regional levels Job rotation programs to enhance the skills of employees.

There are some departments in the bank that do not have enough employees, while some have more than needed. All this creates inefficiencies and so the operations manager should look at the department of the branch and see where inefficiencies be positioned, in consultation of with the heads of the departments and hire persons where there are less employees or rotate employees from other departments. New and innovative products should be brought in by Bank Alfalah, like other banks develops for their customer. For this purpose, special teams should be developed that include professional from all departments of the banks to come with ideas. There should be increase in cash counter so that customers service can be enhanced. Montgomery branch has three cash counter which are not enough to deal with customers. There are lots of customers who wait and spend lot of their precious time.

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Annexes
Web Resources
I have collected data for internship from many websites particularly the websites which are written below:

Bank Alfalah
www.bankalfalah.com

The Daily Times Newspaper

www.dailytimes.com.pk

Wikipedia
www.wikipedia.com

United Bank Limited

www.ubl.com.pk

State Bank of Pakistan

www.sbp.org.pk

Askari Bank
www.askaribank.com.pk

MCB Bank
www.mcb.com.pk

Habib bank limited

www.hbl.com

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