1. ACKNOWLEDGMENT
I have completed a report based on my familiarity with my past
studies in order to get a bit familiar with the practical experiences in
organizations. By the grace of Allah Almighty I have accomplished this
report.
Sincerely, to my knowledge and exposure to this subject, I dedicated
my little effort to every one who works for the cause of Pakistan. I
express my appreciation to Bahria University that scheduled and
assigned me this report and I hope my efforts will be duly regarded.
1

2. PREFACE
Theory and practice completes the cycle of human instinct quest for
knowledge and his need to solve day-to-day problems systematically.
The purpose of this program is to give practical knowledge about the
functions of the organization.
The Internship Program also gives better comprehensive and exposure
of theoretical concepts, which are studied during BBA as well as helps
the students to get acquainted with actual working atmosphere and
requirements in organizations.
For the purpose of Internship I joined Bank Alfalah. During my period
of Internship I got a chance to work in different departments and I
have tried my best to compile the same in my report.
2

3. THE VISION
Our vision is to be a leading financial institution, with a niche in
areas where we have a competitive advantage with complete
banking solutions. Our focus is on improving performance in each
of our businesses to achieve consistent and superior returns for
our highly valued clients and stakeholders.
3

4. THE MISSION
Our mission is to maintain a competitive edge in quality banking,
customer service and profit performance. Our activities are
geared towards making Bank Alfalah a responsible corporate
citizen. The emphasis on “Quality and Innovation” will remain our
key mission statement. We will continue to strengthen our
position as the leading provider of quality financial services in
Pakistan.
4

5. THE PHILOSOPHY
 Excellence in Service
 Quality Performance
 Product Innovations
5

6. INTRODUCTION
 Banking background in Pakistan
At the time of independence there were 487 offices of scheduled
banks in the territories of Pakistan. The Reserve Bank of India was
the only bank to settle the problem of coinage, currencies and
exchange etc. There were 19 non- Indian foreign banks with the status
of small branch offices, which were engaged solely in export of corps
from Pakistan, while there were only 3 Pakistan institution i.e. Muslim
commercial bank, Habib bank LTD, and the Australasia bank.
State bank of Pakistan was established on July 1, 1948 and assumed
full control of banking and currency in Pakistan. In order to develop
sound banking & weeding out weak institutions, the Banking Companies
Central Act was promulgated in 1949, empowering the State Bank to
control the operations of banking in Pakistan.
Another very significant event in the development of banking in
Pakistan was the appointment of the Credit Inquiry Commission in 1959
to examine the scope and working of the institution providing credit
facilities to agriculture, trade, commerce and industry and
recommended measures for further improvements
6

7.  Bank Alfalah
Bank Alfalah during the past five years, has assumed a brand new
identity plied with a spurred vision and revived commitment, following
the privatization of H.E.C.B in 1997. Since then the Board and the
Management of the bank have implemented strategies and policies to
carve a distinct position to carve an instinct position for the bank in
the market.
The strengths of Abu Dhabi Group have helped Bank Alfalah
contribute towards the development of quality retail and Corporate
banking in Pakistan.
The bank was acquired by the Abu Dhabi Consortium, which is headed
by Shaikh Nahyan Bin Mabarak Al-Nahyan, a prominent business
professional of the ruling family of Abu Dhabi and the Minister of
Higher Education and Scientific Research, (Govt. of UAE). Other
members of the Consortium include Royal Family members and leading
businessmen of UAE. The consortium owns 70% of the shares while
the Govt. of Pakistan has retained the remaining 30% of the bank’s
shares. The financial and managerial strength of Abu Dhabi Consortium
has greatly enhanced the credibility of the bank in Pakistan and is
reflected in the bank’s improved performance in all the spheres of
banking.
7

8. In pursuance of State Bank of Pakistan, directives to all commercial
banks to get themselves “rated”. Bank Alfalah also undertook the
exercise with PACRA (Pakistan Credit Rating Agency). The premier
rating agency, which is an affiliate of IBCA, rated the bank as AA- for
long term and A1+ for short term. Both ratings are investment grade
and denote very high credit quality and very low expectation of credit
risk. The ratings are applicable to senior unsecured creditors of the
bank.
In the efforts to branch out overseas, the bank is in the process of
acquiring a 25% stake in a banking company in Bangladesh. This
acquisition will not only help the bank promote bilateral trade with
Bangladesh, but also help in the initiation of business with other
countries of SAARC and Far-East region.
 The Management
Alfalah’s manegement is known for their hard work, product innovation
and dedication to make sure that the development and modernization
process keeps the bank ahead of competition.
8

9. With a team of talented, service dedicated professional bankers, Bank
Alfalah commits all of its energies, resources and time to cater to
banking and financial needs of its valued clients.
Following members form the board of directors of Bank Alfalah.
1. Shaikh Nahyan Bin Mabarak Al-Nahyan (Chairman)
2. Mr. Abdullah Khalil al-Mutawa
3. Mr. Omar Z. Al-Askari
4. Mr. Abdulla Nasser Hawaileel Al-Mansoori
5. Mr. Nadeem Iqbal Sheikh
6. Mr. Ikram Ul-Majeed Sehgal
7. Mr. Mohammad Saleem Akhtar (Chief Executive)
9

10.  Organizational Structure
All the affairs of Bank Alfalah are run by the Board of Directors,
headed by the Chairman and Chief Executive, who are responsible for
all matters happened in the company i.e. profits, plans strategies,
losses and employee satisfaction etc.
The management network can easily be visualized in the organization
chart.
Management Structure
Chairman
Chief Executive Officer
Manager
Senior Authorized Officer
10

11. Senior Clerk
Junior Clerk
COMPANY ANALYSIS
 Operating and Financial Analysis
The bank is currently operating in 38 branches within the country and
has been successful during the year on the further mobilization of
resources by attracting low cost and stable deposits. Bank Alfalah has
shown remarkable progress in their operations within these few years.
Despite notable economic uncertainties, the bank’s financial strength
has greatly enhanced during the recent years. The successful
expansion program has proved the bank’s capability and commitment in
comparison with the competition in the industry. It is heartening to
note that in just a few years, which are considered as the infancy
stage in industry, the bank has increased its branch network a lot. The
11

12. expansion program is strategically important to increase customer
base and help the bank to approach different customer segments
The bank’s treasury activities comprise of almost client-backed
transactions, emanating largely from foreign trade business. The
Treasury is quite active in both sections of the inter-bank market i.e.
foreign exchange and money market.
The bank continues to maintain positive and healthy liquidity. Their
surplus liquidity is mainly kept in fixed income securities, issued by the
Federal Government of Pakistan that can be easily be converted into
cash, if necessary.
Within the first year (1998) their Deposits grew up by 31%, Advances
by 44%, Trade Finance by almost 100% and the total assets by 35%.
The bank’s position has still improved in the year 2002.
This situation can be observed in the table on the other page:
12

13. – 2001 2000 Growth
(Billions) (Billions) %
Equity 1.631 0.901 51
Deposits 30.207 20.482 47
Imports 26.658 13.228 102
Exports 25.261 16.757 51
Profit before 524.164 400.350 31
Tax
Profit after 310.612 215.350 44
Tax
Total Assets 40.098 28.855 39
Advances 20.220 16.357 24
1. Current Ratio
Current Ratio = Current Assets
Current Liabilities
13

14. Year 2000 Year
2001
Rupees in 000’
7,390,481 8,090,672
6,654,962
7,731,087
1.11 1.05
2. Debt to Equity Ratio
Debt to Equity Ratio = Total Debt
Share Equity
Year 2000 Year 2001
Rupees in 000
27,136,530 37,938,411
900,680 1,361,292
30.128 27.869
14

15. 3. Debt to Total Assets Ratio
Debt to Total Assets = Total Debt
Total Assets
Year 2000 Year 2001
Rupees in 000
28,854,632 40,098,095
27,136,530
37,938,411
1.06 1.56
 Human Resource Analysis
Bank Alfalah believes that humans are their most valuable assets. In
the pursuit to impart sound technical skills to their staff, the Training
and Development Center continues to offer programs in several skill
areas. The bank’s training and business philosophy is geared to provide
professional, personalized and efficient services to the clients at all
15

16. times. The bank is making its own positive contribution to the services
culture of the banking system as a whole, providing at the same time a
breakthrough to the customers in terms of choice based on quality.
The bank continues to hire fresh MBAs from prestigious universities in
batches of 20 – 25 officers, who then undergo rigorous and intensive
training, first at the hands on experience. The Board places utmost
importance to its human asset base.
 Technology Analysis
Technology and automation play a pivotal role in the progressive
development of an organization. It has become impossible to control
the operations of a bank effectively in real time situation without the
latest technology.
Technological developments are opening up new vistas of solutions for
distributing traditional financial products. Concurrently, rapid change
in customer preferences has resulted in major shift from manual to
automated services.
Information technology today, is all pervading in the corporate world.
During the past years Bank Alafalah made heavy investments towards
16

17. enhancing its capabilities in the area of automation and information
technology. The bank plans to achieve total connectivity between
branches by the end of last quarter, 2002. the objectives are to
achieve efficiency in services and to control costs. The bank is working
on a plan to increase their ATM installations and also join a Switch
Group of other prominent banks. In the first phase of this program,
the installation of 27 ATMs is already underway.
ENVIRONMENTAL ANALYSIS
 Branch Network
Bank Alfalah’s objective has been to expand its branch network to
meet its clients’ needs. The bank’s strategy is to maximize the
synergies of branch network through an optimal allocation of financial,
human and other resources in order to meet the dynamic challenges of
present financial environment.
Inherited with a network of 3 branches, Bank Alfalah has escalated it
to 38 branches all over Pakistan. The bank is well positioned and
geographically poised to cater for increased business demands from
17

18. its existing and potential clientele. Now there are branches in almost
every major city.
The bank, at the end of 2002 plans it, that this figure of 38 branches
would reach to 45.
Following are the cities in which branches of Bank Alfalah are present.
1. Bahawalpur
2. Faisalabad
3. Gujranwala
4. Gujrat
5. Hyderabad
6. Islamabad
7. Karachi
8. Lahore
9. Multan
10. Mardan
11. Mingora
12. Peshawar
13. Quetta
14. Rawalpindi
15. Rahim Yar Khan
16. Sahiwal
18

19. 17. Sukkur
18. Sargodha
19. Sialkot
 Services
The Bank’s performance over the passing years seems to improve even
when faced by challenging economic conditions. This has been the
result of the bank’s highly prioritized product portfolio, specifically
tailored to suit the discerning needs and preferences of customers.
Besides being focused on Corporate and Investment Banking business,
Bank Alfalah is now entering into Consumer Banking area. In addition to
tailor made products to meet customer’s requirements, Bank Alfalah
offers the following services to its clients:
• Cash Finance Facility
To meet short-term liquidity requirements, the bank offers Current
Finance Facility to meet working capital requirements. A special
relationship officer is assigned to look after corporate accounts to
ensure smooth and efficient functioning.
19

20. • Structured Financing
The bank has a dedicated team of thorough professionals providing
tailor made financing solutions. In adherence to requested
requirements the team provides cost and time effective solutions
ranging from Equity Consultation, Finance through Capital Markets
in the form of TFCs and Debentures, Underwriting and Warehouse
Indirect Financing through Project Financing and Syndication.
• Collection Facility
The bank provides collection facility from any of the 35 branches.
One can transfer funds from collection accounts from any of the
branches to his / her main account on daily basis without any time
delays and at very nominal rates. In places where Bank Alfalah’s
branches are not available, the bank facilitates funds transfer
through strategic alliance with their correspondent banks.
• Sort Term / Medium Term Fund Placement
To optimize returns on one’s surplus funds, the bank offers
competitive rates for which they have products that provide
returns on daily product basis. In addition, profit is paid on a
monthly basis that can boost one’s annualized rate of return.
20

21. Other facilities are as follows:
• Royal Profit (Daily / Monthly Interest earning accounts in
currency)
• One of the fastest and most lucrative FCY accounts mechanism
• On line banking
• ATM
• Personal loans
• Lockers
• Internet banking
• Car Financing
• Staff Salary Accounts
• Personal Relationship Banking
 Competitors
Like all others, Bank Alfalah also has a number of competitors
1. Muslim Commercial Bank
2. National Bank of Pakistan
3. Union Bank
4. United Bank
5. Allied Bank of Pakistan
21

22. 6. Citibank
7. Habib Bank Ltd.
8. Faysal Bank
9. Prime Commercial Bank
10. Platinium Commercial Bank
11. Saudi Pak Commercial Bank
12. Indus Bank
13. Soneri Bank
14. The Bank of Khyber
15. Bank of Punjab
16. Gulf Commercial Bank
17. Metropolitan Bank
22

23. MY WORKING IN BANK ALFALAH
As stated earlier, I joined Bank Alfalah for the purpose of internship.
I have worked here as an internee for two months. During my stay of
two months I have worked in different departments. In these
departments, I was assigned different jobs, which helped me gain
some practical experience.
I had to report at 9.00 am sharp and was given a warning that, if I was
late for 3 days, I would be fired. It was applicable for all other
employees. The bank timings were 9.00 am to 5.00 pm for all other
employees, but I am thankful to the manager, who relaxed me and I
was allowed to leave at 1.30 pm due to my classes of the summer
semester.
The overall staff was quite cooperative and friendly, and everyone
treated me very well. But at the same time, there was a very strict
policy about punctuality as well as discipline.
Following are the departments in which I have worked.
23

24. 1. Car Leasing Department
I have worked in this department for almost 25 days. My
supervisor’s name was Mr. Imran Shami. Here I learned the whole
procedure of getting a car leased.
My duty was to contact clients at the time when their monthly
installment was due. Moreover, Mr. Imran Shami made me deal with
customers who came for the purpose of car financing. I used to give
out a presentation about all this procedure.
In addition to this, I brought 4 interested customers for Bank
Alfalah. All the 4 were friends of mine, who got their desired cars
leased through me.
2. Remittance Department
The next 10 days of my internship were in the remittance
department. Here, my duty was to remit amounts. I was responsible
for remitting amounts to different accounts, which were received
from foreign countries.
24

25. 3. Customer Services Department
I passed my last 15 days in the Customer Services Department.
Here I was given a telephone line and I had to attend phones and
guide people as well as transfer calls to different departments.
Secondly I was assigned the duty of opening new public accounts. I
opened a number of new accounts during my internship program.
25

26. IDENTIFICATION OF A MAIN PROBLEM
Problem
It is a universal truth that every thing in this world has its own bright
and dark sides. It is the case with Bank Alfalah. During my Internship,
I found a number of good things in addition to a few problems.
The first day I entered the bank I was informed that on being late for
three days in a month, an employee is fired. Every one has to report at
9.00 am sharp. Any one coming late is warned and is fired after three
days.
As mentioned before, I have also worked in the car-financing
department. The second problem was observed there. I noted that
there was no separate phone line for that department. Due to this,
the personnels over there have to wait quite long for the phone line to
be free.
Solution
The problem is quite serious, i.e. the rule is quite rigid and there is no
leniency anywhere. A person can have any problem, and at anytime. No
26

27. one is informed prior to getting in trouble. If a person gets late, he
should be allowed to explain the reason. If the reasoning is justified,
then he / she should be excused.
The second problem is not quite serious. It can easily be resolved by
adding one more phone line in the department.
27

28. FINDINGS
Following are the findings that I obtained during my internship.
1. The bank maintains a very strict policy about punctuality.
2. Internees are treated well.
3. The management continuously strives to minimize absenteeism in
employees.
4. Up till now, Bank Alfalah is offering the lowest mark up rates in
car financing.
5. The bank has remarkably escalated from 3 to 38 branches within
Pakistan.
6. The bank has heavily invested in order to enhance its capabilities
in the field of automation and technology.
7. Despite the uncertain economic conditions, the banks financial
position has improved quite a lot.
28

29. 8. The internal computer system is quite slow and often gets
hanged up.
Findings
Following are the findings that I obtained during my internship.
9. The bank maintains a very strict policy about punctuality.
10. Internees are treated very well.
11. Up till now Bank Alfalah is offering the lowest mark up rates in car financing.
12. The bank has remarkably escalated from 3 to 35 branches within Pakistan.
13. The management continuously strives to minimize absenteeism in employees.
Operating and Financial Analysis
The bank is currently operating in 35 branches within the country. Bank Alfalah has
shown remarkable progress in their operations within these few years.
Within the first year (1998) their Deposits grew up by 31%, Advances by 44%, Trade
Finance by almost 100% and the total assets by 35%. The bank’s position has still
improved in the year 2002.
This situation can be observed in the table below:
– 2001 2000 Growth
(Billions) (Billions) %
29

30. Equity 1.631 0.901 51
Deposits 30.207 20.482 47
Imports 26.658 13.228 102
Exports 25.261 16.757 51
Profit before Tax 524.164 400.350 31
Profit after Tax 310.612 215.350 44
Total Assets 40.098 28.855 39
Advances 20.220 16.357 24
Human Resource Analysis
Bank Alfalah believes that humans are their most valuable assets. In order to improve
staff’s professional quality and proficiency, the bank conducted on-job training programs
and in house seminars / courses, at one training center. Bank Alfalah’s training academy
is equipped with the latest audio-visual training aids, which facilitate in the
discrimination of knowledge and skills.
The bank inducted thirty management trainees, who are being taken through a six-month
comprehensive banking training program. The bank intends to continue, on a need basis,
such programs each year.
Technological Analysis
30

31. Technological developments are opening up new vistas of solutions for distributing
traditional financial products. Concurrently, rapid change in customer preferences has
resulted in major shift from manual to automated services.
Information technology today, is all pervading in the corporate world. During the year
2000, Bank Alafalah made heavy investments towards enhancing its capabilities in the
area of automation and information technology. The bank is well positioned to meet
client needs, with improved competitive advantage.
Human Resource Analysis
Bank Alfalah believes that humans are their most valuable assets. In order to improve
staff’s professional quality and proficiency, the bank conducted on-job training programs
and in house seminars / courses, at one training center. Bank Alfalah’s training academy
is equipped with the latest audio-visual training aids, which facilitate in the
discrimination of knowledge and skills.
The bank inducted thirty management trainees, who are being taken through a six-month
comprehensive banking training program. The bank intends to continue, on a need basis,
such programs each year.
Services
Besides being focused on Corporate and Investment Banking business, Bank Alfalah is
now entering into Consumer Banking area. In addition to tailor made products to meet
customer’s requirements, Bank Alfalah offers the following services to its clients:
Cash Finance Facility
31

32. To meet short-term liquidity requirements, the bank offers Current Finance Facility to
meet working capital requirements. A special relationship officer is assigned to look after
corporate accounts to ensure smooth and efficient functioning.
Structured Financing
The bank has a dedicated team of thorough professionals providing tailor made financing
solutions. In adherence to requested requirements the team provides cost and time
effective solutions ranging from Equity Consultation, Finance through Capital Markets in
the form of TFCs and Debentures, Underwriting and Warehouse Indirect Financing
through Project Financing and Syndication.
Collection Facility
The bank provides collection facility from any of the 35 branches. One can transfer funds
from collection accounts from any of the branches to his / her main account on daily basis
without any time delays and at very nominal rates. In places where Bank Alfalah’s
branches are not available, the bank facilitates funds transfer through strategic alliance
with their correspondent banks.
Sort Term / Medium Term Fund Placement
To optimize returns on one’s surplus funds, the bank offers competitive rates for which
they have products that provide returns on daily product basis. In addition, profit is paid
on a monthly basis that can boost one’s annualized rate of return.
Other facilities are as follows:
32

33. • On line banking
• ATM
• Personal loans
• Lockers
• Internet banking
• Car Financing
• Staff Salary Accounts
• Personal Relationship Banking
Technological Analysis
Technological developments are opening up new vistas of solutions for distributing
traditional financial products. Concurrently, rapid change in customer preferences has
resulted in major shift from manual to automated services.
Information technology today, is all pervading in the corporate world. During the year
2000, Bank Alafalah made heavy investments towards enhancing its capabilities in the
area of automation and information technology. The bank is well positioned to meet
client needs, with improved competitive advantage.
33