PRESENTED BY:

MEHR - UN - NISA SABA AZHAR SAMAR SULEMAN SARA ANJUM SYEDA QURAT UL AIN KAZMI

VISION
To be the premier organizations operating locally and internationally that provided the complete range of financial services to all segments under one roof

MISSION
To develop and deliver the most innovative products ,manage customers experience, deliver quality service that contributes to brand strength ,establishes a competitive advantage and enhances profitability, thus providing value to the stakeholders of the bank

HISTORY
Bank Al-falah Limited (Bank Al-falah) is a Pakistan based bank, engaged in banking and financial services. Bank Al-falah Limited was incorporated in June 21st, 1997 as a public limited company under the Companies Ordinance 1984. Its banking operations commenced from November 1st, 1997. The bank through its subsidiaries provides retail, commercial banking and corporate finance products and services in the Asia Pacific, Pakistan and the Middle East.

SERVICE FACILITIES
It provides services such as lending loans Accepting deposits, Finance leasing, Credit cards Money transfer services. It also offers advances to: Businesses Trade industry Agriculture

PHASES
Bank Al-falah has gone through different phases over the years. Its name and been changed in the following sequence. Bank of Credit and Commerce and International (BCCI)1972 Habib Credit and Exchange Bank1992 Bank Alfalah1997

ORGANIZATIONAL HIERARCHY
Chief Executive Officer
Co-Chairman Central Management Committee

Group Heads

Regional Managers
Area Managers Hub Managers Branch Managers Officers Grade I, II, III

FINANCIAL REVIEW
Stock data Recent stock performance

Current Price (1/8/2010): 14.171

1 Week
13 Weeks 4 Weeks 52 Weeks

2.9%
2.7% -1.6% -8.5%

PERFORMANCE OF BANK ALFALAH

SWOT ANALYSIS
STRENGTHS
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 Al-Falah 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 Personnel of Al-Falah are well trained and highly skilled. Bank Al-Falah has a wide network of branches at the ideal locations, catering the financial needs of its clients.

STRENGTHS
Their web system is very well, people can get all information from their also. There is online account opening facility also. Through their products they facilitate their customers with additional services Rewards and benefits to their employees in the form of bonuses which motivate their employees to achieve their targets.

WEAKNESSES
BAL is that it is not offering the loan facility to newly established businesses BALs lending procedure is quite complicated that some people hesitate to come as they are requiring a huge file of documents. Bank Al-Falah is not offering any credit facility for students. BAL is not offering the online facility to account holders having photo account.

Contd
Majority of the workforce consists of young professional, they lack in their experience. The increased workload has resulted in the reduced efficiency of the employees. Low salary packages as compared to other banks

OPPORTUNITIES
Bank Al-Falah 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. BAL has the advantage of having Islamic Banking network and the growth in this particular field can be very fruitful for the bank.

Contd
On the job training & coaching sessions can be conducted. Work sharing activities should be started so that a person who is working continuously for 9 hours can get relax.. Attractive salary packages should be awarded.

THREATS
Other foreign financial institutions like City Bank, HSBC etc also having strong banking policies 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. Due to economic instability like currency depreciation and inflation, the bank is constantly facing a threat

Contd
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. Alfalah interest rate is decreased from 11%to 7%whereas its competitors are giving more interest rate. Interest rate of Askari bank is 11% and Habib banks is 14%. The conventional banks those having high growth rate and high market share are always being a threat.

INDUSTRIAL ANALYSIS
Pakistan has a well-developed banking system, which consists of a wide variety of institutions ranging from a central bank to commercial banks and to specialized agencies The country started without any worthwhile banking network in 1947 but witnessed phenomenal growth in coming decades. By 1970, it had acquired a flourishing banking sector. Nationalization of banks in the seventies was a major upset to domestic banking industry of the country, which changed the whole complexion of the banking industry.

Contd
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. 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

PEST

POLITICAL ENVIRONMENT
Lawyers movement Violence in Karachi The Lal Masjid debacle Militancy operation in FATA, NWFP and Swat its impact on other parts of the country The return of Benazir Bhuttos and her subsequent assassination

Contd
Unstable political situation affect banks policies Talibinization affected our repute in the world Investors hesitate investing in Pakistan

ECONOMIC INDICATORS
Gross Domestic Product (GDP) inflation Increased balance of payment debt of the government increased Decrease in FDI (Foreign direct investment) Financial crisis made it BAL management difficult to survive.

SOCIO CULTURAL ENVIRONMENT

low saving culture Religious culture and people hesitate to accept interest on deposits 70% rural population and very low literacy rate

TECHNOLOGICAL FACTORS

Banks turning to heavy IT investments which differentiate their products provide response times improve customer satisfaction products and services are gaining faster acceptance like ATM, Master cards, Telebanking, Internet banking and mobile banking

PORTER FIVE FORCES MODEL

AVAILABILITY OF SUBSTITUTES
People have choices of saving or investing their money. They can save their money at homes Put their money in the National Saving Centers (Banking Intermediaries) which give protection to their assets. Investing money in stock market in form of shares / bonds or in real estate.

RIVALRY AMONG EXISTING FIRMS

Variety of public and private banks are already existing in the market, offering products on competitive prices. Branches of competitive Banks Islamic Banks Branches Askari bank 204 Emirates Global Islamic Bank 13 Bank Islami Pakistan Ltd 30 Habib Bank Ltd 100 Muslim Commercial Bank Ltd 900 Al Baraka Bank Pakistan Ltd 30 RBS 75

THREAT OF NEW ENTRANTS

Person can't come along and start up a bank, but there are services, such as internet bill payment, on which entrepreneurs can capitalize Companies offering other financial services. e.g an insurance company to start offering mortgage and loan services Mostly foreign banks step in the developing countries for expanding their branches. Mergers between foreign and local banks take place at large scale but Pakistans present economic condition and government instability has arose the feelings of awe and terror among most of the foreign banks to enter in the market.

BARGAINING POWER OF BUYERS

The individual doesn't pose much of a threat to the banking industry because of high switching cost of mortgage, car loan, credit card, and mutual funds with one particular bank Corporate clients have banks wrapped around their little fingers Financial institutions can switch them by offering better exchange rates, more services, and exposure to foreign capital markets Bargaining power of buyer is low where the products substitutes are not available and customers are large in number.

BARGAINING POWER OF SUPPLIERS

In banking sector suppliers does not exist so there is no bargaining power of supplier.

MERITS OF BANK ALFALAH

OUTSTANDING WORK ENVIRONMENT EFFICIENCY CUSTOMER SERVICES SUGGESTIONS ASKED FROM CUSTOMERS EMPLOYEE BENEFITS COMPUTERIZED WORKING ENVIRONMENT MAXIMUM SECURITY FEATURES CREDIT CARDS BANK ALFALAH AUTO DEBIT SERVICE NETWORK OF BRANCHES

DEMERITS OF BANK ALFALAH

OVERCROWDEDNESS CUSTOMERS GUIDANCE SERVICES CHARGES

STRATEGIC ISSUES OF BANK ALFALAH

BAL is that it is not offering the loan facility to newly established Other foreign financial institutions like City Bank, HSBC etc also having strong banking policies Due to economic instability like currency depreciation and inflation, the bank is constantly facing a threat Other investment opportunities like investment in property and gold are giving people more return as compare to banks The political instability is a great strategic issue for BAL

ALTERNATIVES FOR STRATEGIC ISSUES

Bank Alfalah Ltd should continue 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. 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.

IMPLEMENTATION OF ALTERNATIVES
The best alternative is: 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.

Contd
GOALS To set a proper and efficient Islamic Banking System. Bank Alfalah is an Islamic banking system but still some practices of Islamic banking systems are not adopted here which need to be adopted in future. To increase its annual profits so that it can easily compete in the large banking industry of world. This can only be done if the employees work efficiently and they can only work efficiently if they are fully satisfied.

SMART OBJECTIVES
SPECIFIEC MEASUREABLE ATTAINABLE REALISTIC TIMEBOUND

POLICIES TO MOTIVATE EMPLOYEES

There are no incentive schemes for employees of Bank Alfalah like scholarship schemes for employees that want to pursue higher education. Bank Alfalah will give a number of incentives to its employees, like personal loans at nominal markup Education fees will be returned by Bank Alfalah to its employees, after the have finished their studies. To offer superior personalized services to their customers so that their value and loyality among customers can be increased. Professionalism among employees is set and promoted at a very high echelon

COMPETITORS ANALYSIS
The Banking structure in Pakistan comprises of Central Bank, Commercial Banks, Investment Banks, Development finance Institutions (DFIs), Specialized Banks, Foreign Banks Competitors Bank Alfalah is a private commercial bank so the major competitor of Bank Alfalah are the following:
Muslim Commercial Bank Union Bank Ltd Allied bank Soneri Bank Ltd Prime Commercial bank The bank of Punjab Bolan Bank Ltd Bank Al-Habib Ltd Askaribank Faysal Bank

ASKARI BANK
Major competitor of Bank Alfalah Incorporation of Askari Bank limited in Pakistan on October 09, 1991 Askari Bank Commenced (begin) to operations in April 1992, as a public limited company. The bank is listed on the Karachi, Lahore and Islamabad Stock Exchanges. Redefining priorities and focus of the banks Threatening the domination of traditional players. Providing good value to its shareholders.

Contd
Share price has remained approximately 12% higher than the average share price of quoted banks during the last four years. As of March 31, 2009 it operated 204 branches nation wide including 18 Islamic banking branches, 11 subbranches, and an Offshore Banking Unit in Bahrain. Shared network of over 800 online ATMs The net markup income increased by 31% to Rs. 2397 million from Rs. 1824 million in the same quarter of 2008.

STRENGTHS
The major strengths of Askari bank which they are having as compare to its competitors are as follows: Non stop banking Customized solutions Telephone banking Ethical concerns and public image Employee input Off the job training Customer oriented banking

RECOMMENDATIONS
Bank should prefer to promote worker on the basis of their talent and avoid favoritism Salaries should be increased. There is misdistribution of work. There should be fair distribution of work Bank Al-falah 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 Al-falah Ltd should continuous to expand its business, by increasing its deposit portfolio through aggressive market penetration strategies Bank Al-falah limited has the web site, which has not been updated. The web site is very less informative and it wont leave a good impression on the visitor.

CONCLUSION