DEDICATIONS

This Holy Prophet (SAW) who taught us Seek Knowledge from cradle to Grave.
Dedication is a devotion to whom we love, who our benefactors are, who pray for us and
who made us capable of doing all these under this head, there are three personalities,
which are our PARENTS, our TEACHERS & our FRIENDS. So we have devoted our
report to our beloved Parents, respectable Teacher and loving Friends and all branch staff.

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ACKNOWLEDGMENT
All praises are for Allah Almighty that has bestowed upon human being the crown of
creation and has endowed him with knowledge and wisdom. After Allah,
the last Prophet Mohammad (PBUH who brought for us revelation and
unlimited knowledge and civilized the barbarian human being. I am very
thank full to Allah Almighty who gave me the courage to complete this
complex task and to my ever caring and loving parents whose prayers
helped me to reach this stage of mylife.Besides, there are many people who
supported me in formulation of this report and without the support of them I
could never be able to complete this report successfully. In this respect I am
very thank full to Mr. Ramzan jani (Branch Manager), Ms Mamona alamas,
Mr. Tousiq Ahmad (Operations Manager &officer) and the qualified staff
members of Bank Alfalah Limited layyah, who cooperated with me with
their guidance at each step of my internship. They have provided me a lot of
important information and knowledge about the banking operations in a
very short period of time. Last but not least, my very special thanks to Mr.
Rashid saeed (Incharge Internship &Placement) who provided me with his
guidance and profitable knowledge whenever I need that.

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Executive summary
Pakistan after getting its independence, did not inherit 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 is
a number 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 implemented
different policies to make it one of the best banks of Pakistan, which included introducing
new products and services and increase its operations by opening new branches in
Pakistan.
Today Bank Alfalah is operating in more than 70 cities of Pakistan and operating its
foreign branches in Bangladesh, Afghanistan and Bahrain. The total employees of
Bank Alfalah approximate around 7,600. The increase in the number of employees
joining Bank Alfalah shows that people feel confident in Bank Alfalah as a prospect
employer. The financial statistics of Bank Alfalah are also as impressive as their human
resource but due to 2008 crises, it has been decreased to a large extent. However, the
profit after taxation for Bank Alfalah amounted to Rs.1, 794,720 (000) and its total
assets for amounted to Rs.348, 990,764 (000). The stock prices and earnings per share of
the bank have also increased over the years. Bank Alfalfa Limited promotes its products
and services through print and electronic media. Bank Alfalah also promotes itself by
sponsoring different events. Some of the recommendations include workshops 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 presence in the country by
opening new branches and in future should keep this momentum and always strive to
become the best.

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Table of contents
Dedication
Acknowledgement
Executive Summary
Introduction of Internship Report
Introduction of al falah..
Vision& mission statement.
Organization structure
Internee activities
Application of class room learning in organization
Analysis i.e. financial, SWOT, PEST
What has internee learnt in the organization?
Suggestion for the organization
If you (internee) would be the manager there?

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Introduction to bank Alfalah

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. Its banking operations commenced from November 1, 1997.
The bank is engaged in commercial banking and related services as defined in the
Banking companies ordinance, 1962.Alfalah is the 6th largest bank of Pakistan with 648
branches in Pakistan and abroad.
The roots of the bank go back to the Bank of Credit and Commerce International (BCCI),
which was closed down due to various allegations. The Pakistan operations of BCCI were
taken over by State Bank of Pakistan and nationalized to safeguard the consumer
interests, under a new identity of HCEB or 'Habib Credit and Exchange Bank'. In 1997,
the bank was privatized and taken over by 'Abu Dhabi Group' of UAE, with a new
identity of 'Bank Alfalah Limited'. The management of the bank had implemented
strategies and policies so the bank would become a major player in the market. With a
partnership with the Abu Dhabi Group the position of the bank became stronger which
allowed the bank to invest more in technology to increase its range of products and
services.
On the 16th of May, 2005 Bank Alfalah formally took over the Bangladesh operations of
Shamil Bank of Bahrain for US $17.88 million and renamed it to Bank Alfalah. This was
the first branch of the bank outside Pakistan. Bank Alfalah Limited started its operation at
Afghanistan in 2005 and is providing Conventional Banking services in Kabul and Herat.
Islamic Banking services are also provided in Kabul. Bank Alfalah Limited is the largest
foreign bank in Afghanistan with a balance sheet size of over USD 300 Million as of
December 31, 2013. Bank Alfalah Limited commenced its Bahrain Operations in 2007
with the establishment of a Wholesale Banking Unit (WBU Bahrain), operating in a
major financial hub of the Middle East/GCC region. The WBU is housed in one of the
countrys known structures, Bahrain Financial Harbor, in order to meet its customers
needs. The bank has entered re-branding as of February 2015 after 17 years of its birth.
The official color has been changed from Deep Blue to Crimson Red and the logo has
also been changed. The new logo has been named as well, Chevron. Meanwhile, the
Vision & Mission statements have also been revised. Bank Alfalah has gone for shift in
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brand appearance in Pakistan. New logo of Bank Alfalah was revealed on 28th of
February 2015 in Karachi, Pakistan.
The Bank Alfalah Limited (BAFL) has received an equity investment of Rs 6.66 billion
from the International Finance Corporation (IFC). The IFC, earlier in 2014, had showed
keenness to invest in the bank and in May the corporation successfully got a nonobjection certificate from the State Bank to carry out the evaluation of BAFL before its
plan of equity injection. Finally, in September the two sides signed an agreement on
IFCs proposed $67 million investment in Bank Alfalah by subscribing 15 percent equity
investment in the bank to help it to increase access to finance in Pakistan. IFC has already
a working relationship with BAFL and it helped the bank in development of Alfalah
SME toolkit, a free of charge online portal aimed to help SMEs through implementation
of business practices based on information, communication and technology.
Function
Branch banking
Deposits, Remittances, Foreign trade, Lockers.
Consumer banking
Credit Cards, Auto loans, Home loans, Consumer durables, RTCs.
Electronic Banking
Telephone banking, ATMs, Online banking
Corporate banking
Short/Long Term finance, Trade finance, structured finance.
Treasury & Investment
Money market, Forex market, Investments, Government securities, Correspondent
banking.
The bank is currently operating through 648 branches (as on December 30, 2014)
including 480 Conventional, 157 Islamic Banking.
Some of the main branches are located in all of the major cities including
Chakwal, Hyderabad, Lahore, Kasur, Islamabad, Gawadar, Peshawar, Faisalabad, Quetta,
D.I.Khan, Rawalpindi, Sargodha, Sheikhupura, Sukkur, Sialkot, Multan, Murree,Jhelum,
Attock District, Gujranwala, Mirpur Khas, Lodhran, D.G.Khan.

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Vision statement:
To inspire and empower people to do things differently shape their own path in
life and business.

Mission statement:
We look at the market with fresh eyes to find new opportunities, and seek new
ways of enabling our customers to succeed and advance the world of finance.

Organizational structure
President (CEO)

Chief Operating Officer

Group Head Regional Manager

Area Manager

Branch Manager

Manager Operation

Manager Officers

Non-Clerical Staff

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Internship activities:
Starting and ending dates of the internship
I started my internship program on 22nd of November 2011. Saturday's were not off at this
branch of Alfalah so I had to participate 6 days of the week from 9:00 AM to 5:00 PM in
order to complete my six weeks internship program. The internship program ended on the
2nd of January 2012.
Training Program
I started my internship in the account opening department at the bank. This particular
department comes under the general banking facilities provided by the bank. I was
introduced to the seven different types of accounts which could be opened at Bank
Alfalah layyah Branch. The accounts namely are:
Simple Current Account
PLS Savings Account
Royal Profit Account
Basic Banking Account
Alfalah Kifayat Account
Alfalah Mahana Amdan Account
Alfalah Kamyab Karobar

The features of all of these different accounts are listed under the Product Line of Bank
Alfalah of this report. Now the basic requirements for opening an account are as follow.

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The basic requirements for opening an individual account are:

1-CNIC
2-Source of Income
3-National Tax Number (optional)
4-Letter from person's employer
The basic requirements for opening partnership account are:
1-CNIC of the Partners
2-Partnership Deed
3-National Tax Number Certificate (optional)
4-Company's Letterhead
The basic requirements for opening a company's account are:

1-CNIC of Director(s)

2-Article of Association

3-Memorandum of Association

4-National Tax Number Certificate (optional)

5-Company's Letterhead

This department is responsible for generating the Bank Statements which reveal the
account activity of any account. In order to obtain the bank statement the account holder
has to come and fill a form. Some people call the bank and inquire their account balances.

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Normally such queries are not entertained over the phone unless the bank's representative
knows the person calling is the account holder and not someone else. Such information is
not disclosed to anyone else except for the account holder. The bank officer may ask
questions like the person's date of birth, his contact numbers, current residential address
and the address mentioned in the account information to make sure that the person calling
is genuine and not someone else trying to gain the financial information.If an account
holder wants the payments on the cheque he has issued to be stopped then he has to
contact this particular department of the bank. The person can inform the bank about a
particular cheque number on which he desires to stop the payment. In such way no
payment is done against the cheque as soon as the department is informed. Additionally
suppose a person has lost his cheque book then he can inform the bank to stop the
payments on all the cheque numbers from the cheque book that was issued to him. This
also stops the payments on those cheques as soon as the department is informed.
My Activities
After obtaining all the necessary information I was told to adopt the role of an account
opening officer and deal with another bank official who was playing the role of a
customer. I tried my best to answer all the questions asked by the customer and guide him
in the best way I could regarding the account opening process in the bank. My
performance was rated as reasonable by the account opening officer . At a later stage I
helped a customer organize the required documents for account opening and even helped
him fill out the form as it was to be filled in English language. I also gave information
about the benefits of "Alfalah Kamyab Karobar" account to some existing customers of
the branch as well.
I got a chance to call a few customers of the branch over the phone to let them
know that the cheque which they had deposited a few days back has been cleared i.e. the
funds according to that cheque have been transferred to their accounts. This activity was
fairly easy. I asked a few questions regarding the identity of the customer, upon receiving
positive response I simply delivered the information to the customer that money is
transferred to his account and it is available for him to use.
In the remittances department I was introduced to the various instruments that
were being used to transfer funds from the branch to other banks. Pay order is an
instrument which is used to transfer money within the same city. The customer has to fill

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a form giving all the necessary information about the place where the money has to be
transferred, his name, contact details etc. The payment for the pay order can be done both
through cash and by cheque. Demand Draft is an instrument through which money can be
sent outside the city. Outward DD is used to transfer money outside of the city where as
inward DD are presented by customers to collect money from a branch. Now when the
money is sent from outside the country it comes under the foreign exchange department
of remittances. This department of remittances is not operational at the layyah branch of
Alfalah. However the services of sending money outside the country through money
gram are available. Call deposit receipts (CDR's) are used by people to submit money in
favour of a beneficiary when they are bidding for tenders. If the tenders are approved in
the favour of a person then the money is used by the beneficiary otherwise the CDR's are
returned to the issuer who later deposits them in the bank to get their money. The rupee
travelers cheque (RTC) is another form to carry money safely. Rather than carrying cash
people can carry these RTC which are issued in the form of certificates by Bank Alfalah.
These certificates are accepted at major stores, hotels, travel agents all across Pakistan.

This department at Bank Alfalah layyah Branch is responsible for issuing new
cheque books to the account holders. Upon receiving the new cheque books the customer
has to either sign or put his stamp on the new cheque book. The stamps are used if the
account is opened in the name of a company. I guided a few people who wanted to collect
the new cheque book on the original account holder's behalf. I explained that the original
account holder has to come in person and collect the cheque book him and it is not
possible to collect the cheque book on his or her behalf. I also got a few cheque books
stamped by the customers and handed them over their new cheque books. Once I helped
the customer regarding the information of cheque book charges. He wanted to know the
price of a single cheque which Alfalah charges from its customers. While conveying the
information he desired additionally I explained to him the different cheque books
according to the leaves (cheques) & their charges which Alfalah charges from its
customers.

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The trade finance department acts as a bridge between the importer and the
exporter in a practical world. The type of financial instrument it issues is helpful in
settling the payment between the two parties. The main activities which this department
handles are the imports and exports. The letter of credit (issued by this department)
facilitates the payment between the importer & exporter and the bank charges its fee on
it. Bank Alfalah has added more than 81 banks around its network since 2001 and thats
the reason the LC issued by Alfalah is acceptable to approximately 100 countries around
the world. The records of all the transactions taking place through the letter of credit are
kept at the State Bank of Pakistan.
In this particular department I got a chance to talk with some customers and
explain to them the features of the funded credit facility that was being offered at the
branch of the bank. I was able to explain the features & benefits of availing the facilities
of Alfalah Karobar Finance & Alfalah Malkiat Finance. The typical questions which the
customers used to ask was how much credit would be available to them and what was the
maximum amount of time which they can avail to repay the money to the bank.
According to my experience & observations almost no one was interested or bothered
about the interest rate on the credit.
I assisted the officer of this department while sorting all the utility bills of the
branch in a file. Activity of sorting all the vouchers from all the departments of the
branch was also carried out by me with the help/ guidance of the officer. I regularly used
to carry documents that were to be approved by the branch manager, once he signed them
I brought them back to the officer of the accounts department.

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Application of class room learning in organization

Finding work can be a real challenge, in particular if you don't have any
experience. However to get experience you must first find a job. It's a horrible take that
can be difficult to get around but an internship is a good way to do it. If youre not sure if
this is the right career for you, doing an internship is a great way to try it out. Internships
are generally short-term, so you can test your future career without committing and find
out if it is a career that will satisfy you.
.
An internship provides the opportunity to gain hands on work experience that you
just cant get in the classroom. First time job seekers and career changers arent usually
desirable candidates, but companies are willing to train them as interns and give them the
experience they would need to get a job. An internship can be seen as the pinnacle of
your undergraduate education and give you the chance to use the skills you've learned in
the classroom in a real-world setting. Its a chance to prove the worth of your
qualifications and to show that you can perform in the role you has been given.
It was such a pleasure to spend six weeks in al falah bankone of the goodlooking buildings in layyah. Anywhere I served as an intern for 48 work days. It was the
first time for me. It was also my first time to step into the inside of a bank and learn more
about the financial business from people who work at its edge. In the application for this
internship, I wrote about my interest in banking and my belief that knowledge obtained in
class should always be included with real experiences in the related business. Indeed,
putting my classroom knowledge in finance to practical use and learning from real
banking experiences had always been my two objectives for an internship.
I gained some very useful knowledge from courses obtainable and I saw the AL
FALAH bankers performing their tasks under the guidance of the same knowledge. While
what I have learned in class seemed to be separate concepts, what was being applied in
banking services turned out to be a combination of many concepts? I realized that real
banking is much more complicated than it is portrayed in textbooks. I am glad that I can
now view banking services from a more comprehensive perspective after my internship
experience.

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What has internee learnt in the organization?

My internship experience has given me a realistic preview of my field of
education. Now I feel that I am better prepared to enter the world of
professional work. I have come to know and been appreciated by a number
of professionals who are lending their services to the banking sector for more
than a decade. I feel honored that I have worked with such experienced professionals
must admit that such inter action in this respectable professional community will help me
in seeking out job opportunities in the near future. Each task I performed was a
different experience in itself. By the end of it, I must say I realize my
potentials, I have realized that earning money is not so easy after all, it takes a lot of hard
work and devotion, and not to forget time. And I now know that if I want I can make
things possible, and I also know how well feels to having accomplished something and
being appreciated for it. I definitely have learnt things, which will impact my career
and my character.
The overall experience of my internship was very good; I have learnt the sense
of responsibility in its literal meaning. I am now capable of dealing with different sort
of customers, and how to be patient while doing so. Besides this I also gained
knowledge about banking which I previously lacked and many more
products being offered by the bank. So in a nutshell, this internship gave
me the experience, which would no doubt boost my confidence to work in future.
I got practical experience of working practices related with my field.
I learned that how to manage things and how to create balance among work life
and personal life.
Management did help me a lot during my work they always guide me especially
Manager of BAL Bank.
During my internship I learned how to talk and behave with employees and
senior management.
The most important benefit of this internship is that I got practical exposure of
work place.

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SWOT ANALYSIS
SWOT is stands for strengths, weaknesses, opportunities and threats. SWOT analysis is
careful evaluation of an organizations internal strengths and weaknesses as well as its
environmental opportunities and threats. In SWOT analysis the best strategies accomplish
an organizations mission by exploiting an organizations opportunities and strengths
while neutralizing its threats and avoiding its weakness. During my internship I also
observe these factors of bank and made a conclusion which is as follows:

Strengths
Main strengths of bank are describe follows due to which bank is becoming successful
day by day and now is on the fifth largest and successful bank in Pakistan in the banks
ranking after NBP, MCB, UBL and HBL.
Being the private organization its main aim is not to earn profit but also to satisfy
its customers and slogan of BAL is also the representative of this purpose as
Bank Alfalah The Caring Bank.

Main source of profit for any financial institution is public saving which only
comes from public confidence and BAL is getting this confidence which is one
of the main strengths of bank.
Bank Alfalah is also getting fame in the market due to its name ALFALAH
which is leaving the Islamic and favorable impact on the minds of public.
BAL is providing the facility of Money Gram to its entire people who are its
customer or not and through this service it has got the leadership in Money
Gram because any other bank is not offering this service.
With in very short period it has got a superb accomplishment which shows the
competency of top management.
Personnel of Alfalah are well trained and highly skilled.
Bank Alfalah has a wide network of branches at the ideal locations, catering the
financial needs of its clients.

Weakness
Beside all these strengths I also noted some weaknesses in the operations of bank Alfalah which
are described below:

BAL is that it is not offering the loan facility to newly established

businesses because its the BAL policy that it will loan only to that people who
are running their businesses from 3 years.
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 Bank Alfalah is not offering any credit facility for students

Bank Alfalah is charging online charges for transfer of money but
some other banks not charge online transfer charges.
It was observed that at present the motivation level of the employees
is not very much.
The increased workload has resulted in the reduced efficiency of
the employees. Because now the time required for completing the tasks for a
single customer has been increased. As a result the environment of the branch has
become very messy.

Opportunities
It is mandatory to try to make progress with consistency as well as to adopt changes with
needs of time, in order to cope up with both conditions.
Bank Alfalah is spreading its network outside the boundaries of Pakistan and it
has more opportunities to extend this network as State Bank of Pakistan
has prescribed new policies in the prudential regulations.
In addition to excellent routine banking, it has earned a good name by offering
special products like car, home and credit cards facility. So the penetration
of these products could enhance market shares.
There is a very good growth trend in the Islamic banking in the country and in the
world as well. BAL has the advantage of having Islamic Banking network and the
growth in this particular field can be very fruitful for the bank, bank has an
opportunity to introduce new products and services in Islamic banking.

Threats
Threats are the negative trends in external environmental factors. As on one side environment
provides opportunities to one organization, on the other hand it also has to face some
threats. Bank Alfalah also has to face this situation.

Other foreign financial institutions like City Bank, HSBC etc also having
strong banking policies and theres a chance that people might move toward these
financial institutions to secure their investments, transactions and related services.
For last seven year there is political stability in Pakistan but now again a new
layer of political instability arises which effects almost all industries including
Banks.

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 Due to economic instability like currency depreciation and inflation, the bank is
constantly facing a threat e.g. in case of inflation the people have low disposal
income which means lower deposits in banks.
Other investment opportunities like investment in property and gold are
giving people more return as compare to banks; it can decrease the deposits of
bank.
PEST Analysis
Identification of external and macro factors that influence buyers and thus change the size
and composition of market overtime involves initially building customer profiles. These
influences include:
Political environment
Economic Indicators
Socio cultural environment
Technological factors

Political environment
The events in the last couple of years; ever since the sacking of Chief Justice
Iftikhar Choudhary, Pakistan has faced
crisis
after crisis, including the lawyers
movement, violence in Karachi, the Lal Masjid debacle, militancy in FATA and NWFP
andits impacton other parts of the country, the return of Benazir Bhutto and her subseque
ntassassination, and current ongoing military operation in Swat all the above events
indubitably made a huge impact on the economy.
Stability and law and order situation under the political regime is very important for the
economy as a whole. The present state of the government in Pakistan is directly
affectingthe policies of banks. Continuous political changes have disrupted the policies a
ndobjectives as each regime brings with it its own agenda. Organizations need time to
adjust to one regime and then work with it towards economic enhancement. Due the
wrong policies of the government, the talibanization also develop in Pakistan and become
the international issue in Pakistan and badly affected the Pakistan repute in the world
and promote the uncertain conditions for the business in the Pakistan. Due to this the
investors are not interested in the Pakistan.

Economic Indicators
The economy of any country directly influences any financial organization. Economic
indicators include Gross Domestic Product (GDP), inflation, balance of payment; debt

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of the government. However, the strong fundamentals were compromised to prevailing

global crises thats shacked the confidence of global investors and FDI flowing in the
country. The steep rise in oil prices to U$ 147 a barrel, soaring inflation hitting a 24%
mark, huge fiscal deficits and balance of payments issues coupledwith plummeting forex
reserves added to the economys move to an unstable growth trajectory. Also the load
shading is another factor that affects the Pakistan economy badly. This not the end of the
story after this Pakistan economy face lot of problems like bomb attacks in Pakistan no
electricity and the unstable government, due to this the investor are not invest in the
Pakistan and the existing business men are losing their business unit due to the loss.
Due to this poor economy, businesses are reaping low profits and stock market is
in great danger. Pakistans foreign debts are rising day by day so such a situation is a big
Challenge for banking institution to survive. The financial crisis in Pakistan has made the
management of BAFL tensed to work in such an environment.

Socio cultural environment

A low saving culture has offset the huge population advantage this is enjoyed by
Pakistan. Also culture is dedicated by the religion, and in Pakistan a significant segment
of the population is reluctant to accept interest for their deposits use to the negative
religious implications of such an act. About 70% of Pakistans population is based on
rural areas and literacy rate of the country is very much low, thus making it harder
for banks to mobilize their deposits within these regions. However, in today world, the
customers are becoming more intelligent and through media they keep themselves up to
date. Thus, the lifestyle and expectations of the customers from the service provider is
increasing day by day.

Technological Factors
Banks in the developed world have been turning to heavy IT investments, whichdifferenti
ate their products, provide response times, enhance accessibility and improve customer
satisfaction. Though investing in state-of-the-art host banking solution,
ATMand POS (point of sale) networks, visa, MasterCard, and, smart cards, telebanking,
internet banking and now mobile banking are common IT investment in the developed
world, it is now that these products and services are gaining faster acceptance in Pakistan.
In BAFL technology has great effect on the working environment. BAFL is always
willing to introduce new computer systems for keeping its staff up to date. With the
successful implementation of new centralized database system, the bank also achieved
remarkable progress in business process re-engineering, turnaround time compliance by
centralizing outward remittances, account opening and credit administration

Financial analysis
Operating Results
Rupees in 000

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2014
Balance Sheet
Shareholders Equity
Total Deposits
Total Assets
Advances net
Investments net
Profit And Loss Account
Profit before taxation
Taxation
Profit after taxation
Basic earnings per share
Diluted earnings per share

2013

37,823,827
28,265,616
605,963,224 525,525,770
743,128,293 611,427,624
290,597,237 260,779,850
324,319,454 219,690,369
8,513,566
6,807,211
(2,872,715) (2,131,261)
5,640,851
4,675,950
PKR4.09
PKR 3.41
PKR 4.08
PKR 3.41

At the back of Balance Sheet growth of 21.5%, with total assets reported at PKR 743,128
million at year end 2014, the Banks profit before taxation for the year increased to PKR
8,514 million as compared to PKR 6,807 million last year, increasing by 25% YoY. Basic
earnings per share were reported at PKR 4.09, which were worked out after taking into
account the weighted average number of shares after IFCs equity injection. The Bank
managed to increase its deposit base by 15.31% to PKR 605,963 million. Advances (net)
have grown by 11.43% to PKR 290,597 million at December 31, 2014 as compared to
PKR 260,780 million last year.
Gross advances to deposits ratio was 50.31%. Investments (net) level has significantly
increased by 47.63% to PKR 324,319 million. With the SBP policy rate maintained at
10% for a major part of the year, the bank registered net markup income of PKR 21,873
million for the year as compared to PKR 16,895 million recorded last year, registering a
growth of 30%.
Income from advances grew by PKR 3,906 million year on year, whereas a major
contributor to the increased revenue was the Banks investment portfolio in government
securities. Income from investments improves by PKR 6,519 million as compared to the
prior year. Banks net provision charge against non-performing loans and advances has
increased to PKR 1,448 million as compared to PKR 955 million last year. Net Provision
against investment for the year was PKR 86 million as compared to PKR 95 million last
year.
Non mark-up income has also increased by 9.15% to PKR 9,036 million, which includes
contribution from fee based income of PKR 3,120 million. Bank has also registered
healthy capital gains on sale of securities of PKR 1,058 million. Administrative expenses
have increased to PKR 20,261 million in the current year as compared to PKR 17,289
million last year, which is mainly attributable to inflationary pressures and branch
network growth.

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The bank has remained focused on improving its operational Efficiency and introduced
new initiatives on cost controls during the year. The NPL level has increased to PKR
19,412 million at year end as compared to PKR 17,947 million last year. Our NPL to
gross loans ratio of 6.37% continues to be lower than that of the overall industry in
general. The Bank is adequately capitalized and has implemented the Basel-III reporting
framework in line with State Bank
Of Pakistan requirements during the yea

Suggestions for the organization

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After doing internship of six weeks in Bank Alfalah Limited, I would like to give some
recommendations to count over some problems.
Bank should prefer to promote worker on the basis of their talent and avoid going
for personal like and dislikes. It can be harmful for the organization in the long
run.
In Bank Alfalah, there is misdistribution of work; some people are over burdened
with the work. So I suggest that there should be fair distribution of work in all the
departments.
Bank Alfalah is only dealing in Money Gram; it should also starting providing the
service of other money transfer lines like Western Union.
BAL should provide loan to students at low mark up rate and easy terms
&conditions.
Bank Alfalah Limited needs to use more marketing channels such as radio to
make the public aware of its products and services. In the presence of intense
competition Bank Alfalah Limited has to realize the importance of marketing.
Bank Alfalah has equipped its branches with all major IT tools being used in the
industry like ATMs, fax machines, photocopiers, printers, latest computers and a
good connectivity architecture, however it has been observed that when its time
to work, there are many failures seen in the different devices used by Bank
Alfalah, especially its connectivity architecture and remains offline with the main
server, that creates problems for the customers.
There are no incentive schemes for employees of Bank Alfalah like
scholarshipschemes for employees that want to pursue higher education. Bank Alf
alahalthough gives a number of incentives to its employees, like personal loans at
nominal markup but they are only provided to employees that are in higher ranks.
Education fees are also returned by Bank Alfalah to its employees, after they have
finished their studies.
Bank Alfalah Ltd should continuous to expand its business, by increasing its
deposit portfolio through aggressive market penetration strategies.
Bank Alfalah Limited should evolve a very serious management policy to attract
multinational corporations as its clients. This action, if actualized, would not
only prove to be highly profit generating, but it would also contribute a lot
towards BAFLs image building.
Bank Alfalah limited has the web site, which has not been updated. The web sites
very less informative and it wont leave a good impression on the visitor. So I
suggest that it should be updated to meet the requirements of the visitors.

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 Participative management concept should be adopted, where ideas from the

employees should also be taken, not only for developing products but also on
service, efficiency, employee morale etc. in order to improve them.

If you internee would be the manager there?

Good managers are fundamental to any successful organization. An outstandingly
good manager achieves a hard working, productive and effective workforce that punches
above its weight in its performance. I think a good manager is someone who can be a
great leader, but also take evaluation and suggestions from others. A good manager
knows the line between business and pleasure, but that you are still comfortable around
that you can have friendly conversation and it's not all work all the time.
The managers build the relationship with the valued customers and keep them on
track to look over the business activities. Being the manager must have the following
qualities to improve the business structure:
Self-Motivation
Optimism
Confidence
Constructive Feedback
Collaboration with respect
Communication and Leadership
Decision Making
Focusing on Customers
Network with other bankers
Of course, a good manager role is having an important relationship for the benefit to
complete with enthusiasm effectively on the time the energy to accomplish all areas of
organization of the objectives.

I have successfully completed the internship program in Al-Falah bank Layyah which is
self-explanatory submitted for your kind perusal.
.the end.

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