PREFACE

Students are studying in various fields in universities, but from studying in any university they can not get any practical experience, for this purpose universities are arranging internship programs in different organizations for their students to get a practical aspect of any organization; there working conditions, and their policies and procedure regarding to be effective. To intern means to train new graduates, Internship is a process of seeking professional training in any particular field under the supervision of specialists in wide range of fields. Internship gives students practical experience to the corporate environment and the business picture. Students come back better equipped of with practical experience. In this way University of Sind had also arranged internship for us. And I was assigned for internship to BANK ALFALAH OF PAKISTAN LIMITED for one and half month internship. Here I am presenting the Report of that internship on Bank Alfalah of Pakistan. Which is the partial requirement to obtain the degree of MBA (PASSS) Report contains the brief information about the departments in which I have worked. These are the General banking, credit department and foreign Exchange department. In general banking the bank was giving different types of accounts facilities and remittance facility, means transfer of funds. And in credit dept: the bank was giving the different finance facility to customers against different securities. And in that Internship I have observed and practically worked in all departments. As internee I have learned all banking procedures and practices. In this report you will find much more information about Bank Alfalah.Which is Auditors report about BAL, Board of Directors Report on BAL, and different schemes of BAL. During making this report I have used both primary and secondary resources. Finally I conclude that it was very interesting, motivating and exciting experience for me. MBA (PASS)

DEDICATION

THIS HUMBLE REPORT IS DEDICATED TO MY

BELOVED PARENTS

WHO DID THEIR BEST TO UPLIFT ME TO THE HIGHEST OF AN IDEAL LIFE

AND MY

RESPECTED TEACHERS

WHOS GUIDANCE CO-OPERATION AND AFFECTION HAS MADE ME WHAT I AM TABLE OF CONTENTS Chapter 1

Introduction 1-1 Bank 1-2 Evolution of banking 1-3 Banking history in Pakistan 1-4 Historical overview of Bank Alfalah Limited 1-5 Objective of Bank Alfalah Limited 1-6 Vision Of Bank Alfalah Limited 1-7 Management of Bank and Organizational Charts 1-8 Board of Directors 1-9 Branch Network 1-10 Purpose of Study 1-11 Objective of Study 1-12 Methodology 1-13 Limitations Chapter 2 Automation at Bank Alfalah 2-1 Introduction 2-2 Computer 2-3 Computer Department at Bank Alfalah 2-4 ATM(Auto teller Machine)/Debit Card 2-5 Internet banking security 2-6 E Banking at Bank Alfalah Chapter 3 Different Functional Division of BAL 3-1 Audit and Inspection Division 3-2 Business Promotion Division 3-3 Credit Division 3-4 Establishment Division 3-5 Finance Division 3-6 Human Resource Division 3-7 Information technology Division 3-8 International Division 3-9 Treasury Division

Chapter 4 General Banking 4-1 Cash Department 4-2 Accounts

4-3 Remittance Department 4-4 Clearing and Collection 4-5 BAL Account Opening Procedure 4-6 Lockers Chapter 5 Forms of Advances 5-1 Categories/Types Of Advances 5-2 Finance/Types of Finance 5-3 Modes Of Securing Advances

Chapter 6 Foreign Exchange Department 6-1 Foreign Exchange 6-2 Import 6-3 Export 6-4 Foreign Currency Accounts 6-5 Inward And Outward Foreign Remittances: Chapter 7 Products of Bank Alfalah Limited 7-1 Deposit Product 7-2 Remittance Products 7-3 Credit Product

Conclusions and Suggestions Conclusions Suggestions Bibliography Appendix A-Auditor Report Appendix B-Board of Directors Report

CHAPTER NO: 1 INTRODUCTION

CHAIRMANS REVIEW:
It gives me immense pleasure to present to you the performance of your bank for the year 2010.continuing with its tradition of healthy growth, bank Alfalah has made newer inroads in the banking sector of the country during the year under review. Your banks increased outreach of branches, special focus on quality customer service, strong capital backing, increased volumes of deposits and advances, well trained work force and integrated systems and processes; all remained the hallmark of performance during the year. With the managements focus on synergizing effective work flows that result into enhanced service quality, the bank has carved itself a niche amongst its clients who relate to Bank Alfalah as The caring Bank. Bank Alfalfas strategic excellence has further positioned it amongst the leading commercial banks in the industry.

Operating Environment:
The operating environment in which a financial institution exists is directly proportional to the influence of political and economic factors. The economy of Pakistan has experienced a turnaround over the last five years, which is the outcome of deliberate and carefully designed programs of economic reforms. The macroeconomic factors have improved significantly with comprehensive planning and the outcome is that GDP growth rate has reached an impressive 8.4 percent. Coupled with the robust economic growth, Pakistan is now moving towards steady industrial and consumer goods has spurred greater economic activity leading to growth in the SME sector as well. Pakistan is on the road to economic prospective with its investor friendly policies. While the debt ratios have fallen significantly and investment is booming, Financial sector made the farthest progress by transforming itself into a market oriented, private sector dominated sector performing efficient intermediation. Reforms that have been successfully implemented since 2000 spanned over a whole range of initiative are being reflected through the performance of financial institutions. Strategic Focus and network Expansion The financial liberalization with global access to markets has made it imperative for financial institutions to broaden their horizon and seek out new potential markets. Bank

Alfalah Limited is a growth-oriented organization, which perpetually reviews its strategies of expansion. Encouraged by its exceptional success and market acceptability in Pakistan, Bangladesh and Afghanistan, the bank is now primed for branching out its operations to strategic locations in the SAARC countries with a view to further mobilize its potentialities. Amidst these developments, the bank is focused on becoming a significant regional bank in the next three to five years.

Technology Platform:
The demand of the e-age era for technological advancements is also one of the major concerns for Bank Alfalah Limited and has navigated the bank into providing the best technology to its customers. We shall be embarking on a program of a highly efficient and advanced banking system TemenosAn agreement to install this software has been signed during February 2006 and the software will place the bank on an advanced level of IT platform. bank Alfalah will access state-of-the-art core banking solutions through this software which is scheduled to be implemented in the next 12-18 months, with a view to enhance efficiency and effectiveness of the organization and bring the practices of the bank at par with global competition. We have internationalized our software and systems and these have been fine tuned to suit our Bangladesh and Afghanistan branches. Another feat of the bank in terms of technology is the 100% connectivity of the entire branch network. Bank Alfalah is positioning itself to be organized through its offer of e banking services to the customers and has recently moved from a dispersed system of account opening to a completely centralized set up.

CONSUMER BANKING:
Bank Alfalah Limited is geared towards deeper penetration in the market through its continued efforts in banking out innovative and customer focused products and services. Bank Alfalah prides itself on the wide range of consumer products like credit cards, debit cards, auto loans, TM network, deposit schemes, leasing products etc.the bank has been the undisputed leader in credit cards and auto loans and has achieved

many milestones in these two categories. Our home finance products cater to the specific needs of the individuals and are positioned as the customized solution provider to customers.

Islamic Banking:
Islamic banking institution today faces a two-pronged challenge. Not only do they have to carve their niche in an intensely competitive market they also have contended with the volatility of their operating environment. As our economy develops and specializes, its demands become more varied and differentiated. The Islamic finance system needs to develop as a flexible, receptive and modern system. Inline with the Sharia complaint features of Islamic banking, the Islamic banking division of Bank Alfalah Limited has established for itself a name in the market. At present we have 15 specially designated Islamic Banking branches operating in the market which cover 9 major cities. Consequently we have designed formal training modules for our team members in Islamic Banking and are committed to developing their skill and confidence levels for optimum performance.

Human Resource Management:

The quality of human resource lies at the center of every organizations success and bank Alfalah Limited is fully aware of the importance of a satisfied and well-trained work force that gives us the competitive advantage. It is the policy of the bank to continually encourage its employees for their skill enhancement in particular areas of banking operations. The state-of-the-art Training and Development center (TDC) at Bank Alfalah arranges workshops and seminars for employees at every level to empower them professionally.

Acknowledgments:
I would like to extend my heartfelt gratitude to the Board, Ministry of Finance, and the State Bank of Pakistan for their invaluable support, which has greatly facilitated our work.

My appreciation goes towards our customers and correspondents who place their unflinching confidence in our bank. I would also like to acknowledge the staff of Bank Alfalah Limited whose commitment and motivation is undoubtedly the best in the industry and is reflective through their devotion towards the progress of the bank.

Sheikh Hamdan Bin Mubarak Al Nahayan Chairman

1-1-BANK
Any organization engaged in any or all of the various functions of banking, i.e. receiving, collecting, transferring, paying, lending, investing, dealing, exchanging and servicing (safe deposit, custodianship, agency) money and claims to money both domestically and internationally. According the (Woelfel: 1994:69) the title bank is found in the American financial system applied to such institution as banks for

cooperatives, central bank for cooperatives, export-import bank, federal intermediate credit banks, industrial banks, investment bankers and mortage bankers. In its more specific sense, however, the term bank refers to institutions providing deposit facilities for the general public. A bank is an organization or a business or a business house, which deals with money, credit and other financial transactions. In general banks attract surplus money from the people who are not using it at the time and lend to those who are in position to use for productive purpose. Thus people whom spare money they deposit the same in the bank where it can earn profit. On the one hand bank receives deposits from the people and profit at specified rate and on the other hand it advances loans to the people in need at the specified rate of mark-up. Today the word bank is used as a comprehensive term for a number of institutions carrying on certain kinds of financial business. In practice the word Bank means which borrows money from one class of people and again lends money to another class of people for interest or profit.

1.2-EVOLUTION OF BANKING
There are various views about the origin of the word bank. One view is that it is derived from an Italian word banque which means a branch .the other point of view is that it has originated from the German word, banc which means a joint stock firm. It is therefore, not possible to decide as to which of the opinion is correct, for no record is available to determine the authority of any of the opinions.

Early Growths
Banking in fact is a very old as human society, forever since man came to realize the importance of money as a medium of exchange the necessity of a controlling or regulating agency or institutions was naturally felt. It was the Babylonians who developed banking system as early as 2000 B.C. It is evident that the temples of Babylon were used as Banks because of the prevalent respect and confidence in the clergy.

Modern Banking
Despite the classical origin, banking in its modern form and structure started in Britain when many of the Lombardy merchants came to England in the fourteenth century and settled in the parts of city of London now called Lombard Street. They were so resourceful that even the Kings had depended on them for loans despite the fact that the church was firmly against usury. They dealt with not only keeping the money in safe custody but also changed money for travelers or merchants engaged in foreign trades. The goldsmiths who, up to that time, were dealing only in gold and silver took the business. Since the goldsmiths required strong safes for the purpose of their own business, they introduced necessary facilities of safe keeping of the valuables and cash of their customers. The goldsmith issued receipts or notes to their depositors in respect of the cash or articles left with them. These were called Goldsmith Notes and carried an undertaken to return the money and articles to the depositors or bearers on demand. There was considerable number of such Notes in circulation among various classes of merchants and thus they can be aptly called Bank Notes in their earliest form over. A period of time, these goldsmith discovered that large sums of money were left in their custody for long periods therefore, they started the use of this cash to advance loans to other persons for a fixed period of time and at a considerably high rate of interest.

1.3-BANKING HISTORY IN PAKISTAN At the time of independence, country was very poor, and as new country without resources it was very difficult for Pakistan to run its own banking system immediately. Therefore, in accordance with the provisions of India Independence Act of 1947, an export Committee was appointed to study the issue. The Committee recommended that the Reserve Bank of India should continue to function in Pakistan until 30 th September 1948, so that the problems of time and demand liability, coinage,

currencies, exchange etc. Be settled between India and Pakistan. It was also stipulated that Pakistan would take over the management of public debt and exchange control from Reserve Bank of India on 1st April, 1948, and that India Notes would to be legal tender in Pakistan till 30th September, 1948. Due to the immediate need of banking sector in the country Governor general of Pakistan and the father of the Nation, Quaid-e-Azam Mohammad ali Jinnah, inaugurated the State Bank of Pakistan on July 1,1948, after the State Bank of Pakistan Order was promulgated on May 12,1948. The first important task, which the State bank of Pakistan had to attend to, was the issue of currency notes and withdrawals of Reserve Bank of India notes with over printing there on of the Government of Pakistan, which had been in circulation in Pakistan so far. In order to develop sound banking and weeding out weak institutions, the Banking Companies act was promulgated in 1949, empowering the State Bank to control the operations of banking companies in Pakistan, including preparations of the required trained man-power. Further, the State bank restricted the opening of new branches by foreign banks in big cities from where trade was being carried out foreign countries, while Pakistani banks were allowed to open as many branches as possible within the country. (Siddique:1-4,16-18)

1.4-HISTORICAL OVERVIEW OF BANK ALFALAH LIMITED Bank alfalah Limited was incorporate on June 21 st, 1997 as a public limited company under the Companies Ordinance 1984.Its banking operations commenced from November 1st, 1997.The bank is engaged in commercial banking and related services as defined in the Banking companies ordinance, 1962. The Bank is currently operating through 104 branches in 36 cities, with the registered office at B.A.Building, |.|.Chundrigar, Karachi.

Since its inception, as the new identity of H.C.E.B after the privatization in 1997, the management of the bank has implemented strategies and policies to carve a distinct position for the bank in the market place. Strengthened with the banking of the Abu Dhabi Group and driven by the strategic goals set out by its board of management, the Bank has invested in revolutionary technology to have an extensive range of products and services. This facilitates our commitment to a culture of innovation and seeks out synergies with clients and service providers to ensure uninterrupted services to its customers. We perceive the requirements of our customers and match them with quality products and service solutions. During the past five years, we have emerged as one of the foremost financial institutions in the region endeavoring to meet the needs of tomorrow today.

1.5-ABOUT BANK ALFALAH

From the very outset, Bank Alfalah Limited has concentrated on excellence and precision in banking practice and has consequently been redefining industry standards. The banks core strengths stem from its corporate philosophy, which stresses the highest level of security, reliability and value for its clients money. The Pakistani banking industry has undergone substantive reformation in the last decade. It is now characterized by increased growth and greater efficiencies, a focus on market consolidation and international integration arising from increased foreign investment. Thus Bank Alfalah Limited operates as progressive and flexibility in all facets of its operations. At its inception in 1997 Bank Alfalah Limited faced stiff competition from established banking giants. However through mature focus, hard work and dedication Bank Alfalah has carved an enduring niche for itself and now serves as a benchmark for financial institutions. This is a momentous achievement given the fact that Bank Alfalah Limited started out as a fledgling with only three branch offices burdened with a host of problems. Today it has a network of ----- branches across Pakistan, facilitating

access to high quality banking service for all. Bank Alfalah now has presence in Bangladesh and Afghanistan, as well. Increasing financial deregulation and the impact of globalization has spurred competition for financial institutions. In order to remain competitive banks have to continually modify their product portfolio for higher customer value. At Bank Alfalah customer retention and enhancement is ensured by simply paying closer attention to their needs and never compromising on quality of service. Some cornerstones in this arena include product research and development, greater use of information technology and process and system re-engineering. Reinforced with invaluable practical experience often spanning many nations, sound technical and professional skills, its human resource strives for perfection in service to delight clients and surpass expectations. Bank Alfalah realizes the potential that the synergy of well trained, satisfied and secure workforce offers. Consequently the institution has adopted a holistic approach to nurture its human resource where from initial recruitment to throughout focusing on congruency between organizational and personal goals. Bank Alfalah Limited is highly cognizant of its obligation to the society in which it operates. Consequently as a caring corporate citizen, the bank remains at the forefront in the promotion of health, education and sports through contributions, endorsements and sponsorships. Recently, bank Alfalah Limited also renovated the Shaahdin Manzil in Pakistans culture capital of Lahore. This building, which is a symbol of Pakistans cultural and historical heritage, has been restored to its original grandeur for posterity. It now serves as Bank Alfalahs financial center in Lahore. Bank Alfalah has broadened scope of banking services lately. The bank has taken initiatives as Agri Finance, SME, Leasing and Islamic Banking. Bank Alfalah aspires to further hone its role as a responsible player in enhancing and fortifying the local financial system and pillars of civil society.

1.6- OBJECTIVES OF BANK ALFALAH LIMITED

The Chairman of Bank Al-Falah said that the core philosophy of honesty, transparency in customer dealings, product innovation, excellence in customer service and our commitment to being a responsible corporate citizen. Customer satisfaction remains our priority. It is only when we know our customer better, can we deliver a higher quality of services, thereby adding synergy to our existing management expertise, financial strength and profitability.

1.7-VISION OF BANK-AL-FALAH LIMITED Our Aims

Vision of the bank is to be recognized as the leading financial institution of Pakistan and a dynamic international bank in the emerging markets. to be the premier organizations operating locally & internationally that provides the complete range of financial services to all segments under one roof. Alfalah Bank has been committed to continually improving the quality and scope of the services we offer to all clients. We are one of the worlds leading international banks and our goal is to lead the way in Asia, and the Middle East. We are dedicated to implementing the highest standards of corporate governance and gaining trust in each of the countries in which we conduct business.

Strategic Intent The world's best international bank Leading the way in Asia and the Middle East

Brand Promise The Right Partner

Values Responsive, Trustworthy, Creative, International and Courageous

Commitment to Stakeholders Customers Passionate about our customers' success, delighting them with the quality of our service Our People Helping our people to grow, enabling individuals to make a difference and teams to win Communities Trusted and caring, dedicated to making a difference through commitment to CSR (Corporate Social Responsibility) Initiatives Investors A distinctive investment delivering outstanding performance and superior returns Regulators Exemplary governance and corporate ethics wherever we operate

1.8-MISSION OF BANK AL-FALAH LIMITED Formulation, acceptance and implementation of a strategic vision through:

Managing change and conflict Developing commitment to shared values

Constantly and consistently aligning structures, skills, staff, culture and systems to shared values

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

1.9-FUNCTIONS OF BANK ALFALAH The following are the main functions of Bank Alfalah listed below and will be discussed in the following chapter. a) To receive deposits which includes fixed, saving current and seasonal deposits. b) To allow loaning facilities to the individuals and the business concerns. c) To render discounting services. d) To act as collecting and paying banker on behalf of customers. e) To collect utility services, especially telephone, electricity, gas bills etc. Banking is an ancient organization, which is as primitive as human society historians are of the opinion that perhaps the Babylonians developed the banking system as early as 20M B.C. there is also evidence that the temples of Babylon were used as banks. In Greece, temples like Ephesus and Delphi were the most powerful and biggest banks of that time. In the sub-continent borrowing and lending of money existed between 2000 and 1400 B.C and the banks were there in one form or the other. The Bank of England was established in 1694.Moreover the state Bank of Pakicame into being July, 1948.

1.10-WORKING HOURS Bank Alfalah Limited operates and provides services to its customer six day a week; bank is open for customers up to 2:00. Working hours of bank is from 9:00 am to 6:00 pm. However some of the employees work till 9:00 pm. My internship working hours were from 9:00am to 6:00 pm. 1.11-THE MANAGEMENT OF BANK ANG ORGANIZATIONAL CHARTS

MANAGEMENT
Management is an exciting activity as it deals with setting, seeking and reaching objectives. We are all managers of our lives, and the practice of Management is found in every facet of human activity. There are numerous definitions of Management. In the words of George Terry (1985) suggest management as a definitions of Management as a distinct process of activities of planning, organizing, actuating and controlling performed so determine and accomplish stated objectives with the use of human beings and other resources. Management is required in all types of organization, at all levels and in all functional areas. Whether it is a large or small business, school, governments etc. .

ORGANIZATIONAL STRUCTURE AND CHART PRESIDENT

CHAIRMAN

BOARD OF DIRECTORS

EXECUTIVE INCHARGE

ASSISTANT EXECUTIVE INCHARGE

AREA MANAGER 8

CHIEF MANAGER 7

MANAGER CREDIT 6

MANAGER OPERATION 6

INCHARGE 5

INCHARGE 4

CO-WORKERS 3

CO-WORKERS 2

CO-WORKERS 1

ORGANIZATION STRUCTURE BRANCH LEVEL AT MIRPURKHAS (BAL)

Manager FAROOQ AHMED SHAIKH

Operation Manager MOHAMMAD MAROOF

Credit / Rural Finance WASEEM RANA

Clearing and Collection Department IRFAN HUSSAIN PAHILWANI

Car Finance Department SYED MUSTAFA IMAM RIZVI

Human resource Department / Account Department FAIZA MEMON

Cash Department MIRZA YASIR BAIG

IT Administrator IRFAN HUSSAIN PAHILWANI

ACCOUNT OPENING WAQAR AHMED BAIG

1.12- BOARDS OF DIRECTORS

According to the BALs Annual report, 2005 following are the members of Board of Directors of Bank Alfalah of Pakistan, Limited.

Board of Directors: H.E Sheikh Hamdan Bin Mubarak Al Nahayan

Chairman

Mr. Abdullah Naseer Hawalileel Al-Mansoori Mr. Abdullah Khalil Al Mutawa Mr.Ikram Ul-Majeed Sehgal Mr.Khalid Mana Saeed al Otaiba Mr.Nadeem Iqbal Sheikh Mr. SIRAJ UD DIN AZIZ Chief Executives Officer

Board Advisory Committee: Mr.Abdulla Khalil Al Mutawa Mr.Khalid Mana Saeed L Otaiba Mr.Bashir A.Tahir Mr.Ganpat Singhvi Mr.M.Iftikhar Shabbir Secretary

1.13-CENTRAL MANAGEMENT COMMITTEE

According to the BALs Annual report, 2005 following are the members of Central Management Committee of Bank Alfalah of Pakistan, Limited.

Central Management Committee:

Mr. SIRAJ UD DIN AZIZ Chief Executive Officer Mr.Parvez A.Shahid

Co-Chairman Central Management Committee

SHAKEEL SADIQ
Chief Operating Officer

Mr. Arfa Waheed Malik

Group Head Corporate & Investment Banking

Mr. Ijaz Farooq

Group Head Islamic Banking

Mr. Adil Rashid

Group Head Consumer Finance

Mr. Nadeem Ul Haq

Group Head Operations

Mr. Mohammad Yousuf

Group Head Credit & Collections

Mr. Bakhtiar Khawaja

Group Head Training & Development

Mr. A. Wahid Dada

Group Head Commercial Banking

General Manager Legal Affairs & Company Secretary

Mr. Hamid Ashraf

Mr. Zahid Ali H. Jamall

Chief Financial Officer

Mr. Mohammad Iqbal Saifee

Group Head Audit & Inspection

Mr. Talib Rizvi

Group Head Priority Banking & Wealth Management

General Manager International Business

Mr. Tariq Mir

Mr. Mahmood Ashraf

General Manager Credit Monitoring

Mr. Falak Sher

Chief Compliance Officer

Mr. Imtiaz Ahmad Sheikh

General Manager Information Technology

Mr. M. Mudassar Aqil

General Manager Human Resource & Quality Assurance

Mr. Haroon Khalid

General Manager Risk Management

Mr.Shahid M.Murtaza
Executive Incharge Business Development Division S.A.M/Car Finance/Leasing

Mr.Adil Rashid
Executive Incharge Cards Division

Mr.Ather Shehab
Executive Incharge Establishment & Administration

Corporate Information:

COMPANY SECRETARY Mr.Hamid Ashraf CHIEF FINANCIAL OFFICER Mr.Zahid Ali H.Jamall AUDITORS KMPG Taseer Hadi & Co Chartered Accountants HEAD OFFICE B.A. Building, I.I.Chundrigar Road, Karachi

1.14- BRANCH NETWORK

Bank Alfalah Branch Network

Islamic Banking Branches Branch Code 0513 0507 0501 0509 0504 0510 0503 0506 0511 0508 0512 0505 0502 0514 0515 Branch Name IBD Boson Road Branch Multan IBD- G.T Road Branch IBD Islamic Banking Main Branch IBD JAMRUD ROAD BR.PESHAWAR IBD JINNAH AVENUE ISLAMABAD IBD Johar Town Br. Lahore. IBD Katchery Bazar Branch IBD Mcleod Road Branch IBD Medical College Rd Br.Faisalabad IBD NEW GARDEN TOWN LAHORE IBD Shahra-e-Faisal Karachi. IBD Uni Tower Branch IBD Y-Block Branch IBD. Cantt. Br. RWP Islamic Banking, Khadim Ali Road, Sialkot Branch Address IBD Boson Road Branch Multan IBD- G.T Road Branch BAL-Islamic Banking Main Branch, 66-Main Boulevard, Gulberg, Lahore IBD JAMRUD ROAD BR.PESHAWAR Azam Towers, Arab Chowk Jamrud Road Peshawar. IBD JINNAH AVENUE ISLAMABAD Jinnah Avenue Branch REDCO Plaza, Jinnah Avenue Blue Area Islamabad. IBD Johar Town Br. Lahore. 69-R-1, M.A. Johar Town Lahore. P/36, /Katchery Bazar, Faisalabad. 13 Mcleod Road Lahore IBD Medical College Rd Br.Faisalabad IBD NEW GARDEN TOWN LAHORE Awami Complex, Block-I New Garden Town Lahore. IBD Shahra-e-Faisal Karachi. Faiyaz Centre Shahra-e-Faisal Karachi. Bal Islamic Banking, Uni Tower, I.I.Chudrigar Road 93-Y Commercial Area, D.H.A., Lahore IBD. Cantt. Br. RWP 125-D, Murree Road Rawalpindi Cantt. Ali Building, Khadim Ali Road, Sialkot

Bank Alfalah Branch Network

OVERSEAS BRANCHES

Country: Country Manager:

Bangladesh Mr. K.A.M Majedur Rahman Branch Address 5, Rajuk Avenue, Motijheel C.A. Dhaka, Bangladesh

Branch Code Branch Name N/A BAL Dhaka Branch

Country: Country Manager: Contact:

Afghanistan Mr. Muzzamal Z. Malik Tel : 0093-75-2004101 Mobile : 0093-79-840945 Fax : 0093-75-2002141 Email : muzzamalm@bankalfalah.com Branch Address 410 Chahrahi-e-Sadarat, Shar-e-Nou, Kabul, Afghanistan

Branch Code Branch Name 0802 Kabul Branch

Bank Alfalah Branch Network

ATM Locations

Branch Code 0068 0122 0042 0120 0041 0016 0085 0105 0055 0098 0116 0111 0110 0031 0100 0057 0123 0112 0014 0033 0075 0022 0036 0094 0103 0002 0124 0119 0053 0081 0028 0135 0011 0125 0102 0045 0082 N/A 0070 0083 0117 0114 0086 0023 0048

Branch Name Abbottabad Branch Ahmedpur East Branch Allama Iqbal Town Attock Branch Badami Bagh branch Bahadrabad Branch Bahawalpur Branch Bhalwal Branch BUREWALA BRANCH Chaklala Scheme III Branch RWP Chichawatni Branch Chiniot Branch Chowk Shaheedan Branch Clifton Branch College Road Branch D.I.Khan Daharki Branch Daska Branch Defence Branch Karachi Defence Branch Lahore Dera Ghazi Khan DHA Ph-I KHI (Korangi Bypass) Faisalabad Branch FEROZPUR ROAD BRANCH G.T Road, Peshawar Branch Gawadar Branch Ghotki Branch Gilgit Branch Gujranwala Branch Gujrat Branch Gulberg Branch Gulshan Chowrangi Branch Gulshan-e-Iqbal Branch Haroonabad Branch Hayatabad Branch Hyderabad Branch I-10 Markaz Br. Islamabad Jhang Branch Jhelum Branch Jinnah Road Branch RWP. Kasur Branch

Branch Address Abbottabad Branch 191, Supply Bazar Main Mansehra Road Abbottabad. AM-N-V Plot # 188, Block XI, Kutchery Road, Ahmedpur East 36 College Block Allama Iqbal Town Zila Council Plaza, Katchery Chowk, Attock 29 & 30,Peco Road Badami Bagh Lahore Prime Arcade, Bahadurshah Zafar Road, Bahadurabad B-v/912,Circular Road Bahawalpur Liaqat Shaeed Road, Bhalwal BUREWALA BRANCH 95-C, Al-Aziz Market College Road Burewala. A.M.N-VII 59, Shah Plaza, Commercial Area Chaklala Scheme III BR RWP 1-Railway Road, Rai House, Chichawatni, District Sahiwal 1-A, Shahrah-e-Quaid-e-Azam, Chinniot Akbar Road, Chowk Shaheedan, Multan World Trade Centre 10-Khayaban-e-Roomi, Clifton Karachi 75600 E/20-26, College Road, Rawalpindi Plot #3666-B,Kashmir Chowk,North Circular Road,D.I.Khan 1285-1287, Zafar Bazaar, Daharki Gujranwala Road, Daska Plot No.40 & 42-C 26th Commercial Street, Phase -V Defence Housing authority Karachi G-9, Commercial Zone, Main Boulevard, D.H.A Lahore Bank Alfalah Limited,B.A Building, Jampur Road, Dera Ghazi Khan DHA Ph-I KHI (Korangi Bypass) 114, 9th East Street, D.H.A. Phase-I Karachi. A.M. S-II Ground Floor, State life Building, Liaquat Road, Faisalabad 18-KM Main Ferozpur Road,Lahore 1045-1046, Hashtnagri, Opp: Sarhad Chanmber of Commerce, G.T Road, Peshawar Gawadar Palace Motel Airport Road Gawadar. 1-13, Station Road, Ghotki Shahrah-e-Quaid-e-Azam, Near Radio Station, Jutail, Gilgit Opposite Iqbal High School, G.T. Road Gujranwala G.T.S Chowk, G.T. Road, Gujrat 125-E/1, Main Boulevard Gulberg III, Lahore Sani Arcade, Block 3, Gulshan-e-Iqbal, Karachi Plot No.SB-15/I,II,III,Block-13-B Gulshan-e-Iqbal Karachi 15-C/16-C, Ghalla Market, Haroonabad Hayatabad Karkhano Market, Jamrud Road, Peshawar Near Hotel Faran Saddar, Hyderabad I-10 Markaz Br. Islamabad A-4, I-10 Markaz Islamabad. AM N-V Jhang Branch 9-D, Yousuf Shah Road Jhang. AM N-III 67,Kazam Kamal Road Jhelum Cantt. Jinnah Road Branch RWP. A-351, Jinnah Road Old City Saddar Road Rawalpindi. AM N-V Shop # 8-12, Adjacent to Mazar Hazrat Baba Bulley Shah, Railway Road, Kasur 1, Rizwan Plaza Main G.T Road, Kharian. Kohat Branch Bannu Road Kohat Cantt Kohat. A.M.N-VI

Kharian Branch Kohat Branch Korangi Industrial Area Aiwan-e-Sanat,ST-4/2 Korangi Industrial Area KarachiBranch LAHORE STOCK EXCHANGE Stock Exchange Building, Basement Level - II 19-Khayaban-e-Aiwan-e-

0101 0152 0006 0065 0015 0005 0035 0092 N/A 0138 0073 0078 0132 0034 0054 0032 0064 0060 0072 0007 0019 0052 0077 0043 0008 0221 0066 0955 0030 0062 0029 0040 0106 0089 0076 0079 0039 0047 0056 0096

Lalazar Branch Larkana Branch LDA Plaza Branch Liberty Market Br. Lahore M.A.Jinnah Road Branch Main Branch I.I Chundrigar Road Main Branch Islamabad Malir Cantt. Branch Mandi Bahauddin Branch Mansehra Branch Mian Chunnu Branch Mingora/Swat Mirpurkhas Branch Multan Branch Peoples Colony Branch Peshawar Main Branch Peshawar New City Branch Quetta Branch Rahim-yar-Khan Branch Rawalpindi (Main)Branch S.I.T.E Branch Sadiqabad Branch Sahiwal Branch Sargodha Branch Satellite Town Branch Shad Bagh Branch Shah Din Manzil Branch, Lahore Shahdara Branch Shahrah-e-Faisal Sheikhupura Branch Sialkot Branch Sukkur Branch Susan Road Branch Faisalabad Tariq Road Branch Thokar Niaz Beg (Raiwind) Br. LHR Toba Tek Singh Branch Township Branch Tufail Road Branch Wah Cantt Branch Walton Road Branch

Iqbal Lahore Tulsa Road, Lalazar, Rawalpindi Bunder Road, Larkana Ground Floor Kashmir Road Lahore Liberty Market Br. Lahore 10-C, Cimmercial Area Liberty Market, Gulberg-III Lahore. A.M. N-II Plot No.23/1,Corner, M.A.Jinnah Road, Abdullah Haroon Road, Karachi B.A.Building I. I Chundrigar Road Karachi 1 B, Awan Arcade Jinnah Avenue, Blue Area Islamabad Old Malir Cantonment Library, Cantt Bazar, Malir Cannt, Karachi Kutchery Road, Mandi Bahauddin Punjab Chowk, Shahrah-e-Resham, Mansehra Mian Chunnu Branch Ghazi Morre G.T. Road Mian Chunnu. Saidu Sharif Road Makan Bagh Mingora Swat Plot # 864/7, Adam Town, Main Umerkot Road, Mirpurkhas ( Sindh ) 62-A,Abdali Road Multan 237-B,D Ground Peoples Colony, Faisalabad. Bank Alfalah Limited,6-B Islamia Road, Peshawar Cantt Park Inn Hotel,Shoba Chowk Peshawar City Peshawar 2-12/7(1) M.A.Jinnah Road Quetta City Center,Shahi Road Rahimyar Khan B.A Building,The Mall, Rawalpindi D-40/A, S.I.T.E., Near Siemens Chowrangi, Karachi Sadiqabad Branch 28-29-D, Allama Iqbal Road Sadiqabad. A.M.N-VII 183-Sarwar Shaheed Road Opposite Session Court Sahiwal 91-C/2, University Road, Sargodha B-20, North Star Plaza Satellite Town, Rawalpindi 37, Umer Din Road, Wassanpura, Lahore Shah Din Manzil Branch, Lahore Shah Din Manzil , Faysal Chowk Mall Road Lahore. A.M.N-I Main G.T Road, Shahdara Chowk, Lahore Ground Floor, Fortune Centre, Shahrah-e-Faisal, Karachi Sheikhupura Branch Main Lahore Sargodha Road Sheikhupura. 40-A ,Paris Road Sialkot B-2823/B-2851, Frere Road Sukkur 25-z-101, Susan Road, Madina Town, Faisalabad 124/A, Block 2, PECHS, Main Tariq Road, Karachi Thokar Niaz Beg (Raiwind) Br. LHR Al-Qaim Center Thokar Niaz Beg Raiwind Road Lahore. A.M.N-II P-105, Farooq Road, Markazi Jamia Masjid, Toba Tek Singh 47-B-1, Block-10 Akbar Chowk, Township Lahore 50/3, Main Tufail Road, Lahore-Cantt 4-1/100, Officers Colony, The Mall, Wah Cantt. E-28, Main Walton Road, Lahore

1.15- PURPOSE OF STUDY It is necessary for the students of MASTER that they should be acquainted with the practical applications of their studies and should gain experiences. In this connection every student is required to undergo a practical work known as Internship (meaning job before job) of at least 6 weeks in any organization. Internship is aimed to familiarize students with the actual working conditions in any organization. The main purpose for which the internship has been conducted is stated as follows: 1. The main purpose of this study is that it is a partial requirement for the award of MBA Degree.

2. This program gives the strong exposure for practical work done in the organization. It also prepares student for jobs before the time they really join them.

3. It provides knowledge for procedural and functional activities performed in various areas of organization. This will certainly prove beneficial to them.

4. This program is intended to increase the communication skills among students. Because they were to interact with the different practical oriented professionals during the period of internship.

5. This study offers practical knowledge and experience of courses studied.

1.16- OBJECTIVE OF STUDY

Internship is a practical training which enable the students to apply the knowledge learnt at university and to understand the practical implication.thatswhy I choose to be internee at Bank Al-Falah Limited Hyderabad which provides opportunity to gain understanding of banking procedures that will help me in my project that is online banking system.

1.17- RESEARCH METHODOLOGY

This report was prepared by visiting and collecting information from the staff of Bank Al-falah Limited Hyderabad. The necessary information was acquired with the help of following methods of collection of data. 1. Primary Data 2. Secondary Data

1. PRIMARY DATA Data collected from unpublished information are known as primary data. It was collected by visiting branch of Bank Al-Falah Limited Hyderabad making observation and getting information from executives and staff members of Bank Al-falah.

2. SECONDARY DATA This data was collected by referring annual reports. Magazines, manuals, books and handouts.

1.18- LIMITATIONS

1. The sharing of information was restricted due to confidential nature. 3. The time allowed for internship is very short.

CHAPTER NO: 2 AUTOMATION AT BANK ALFALAH INTRODUCTION: In todays world of scientific advancement and technology life has become immensely fast.todays manpower is substituted by machines. Huge number of office work and house hold is now being performed by different type of machines thus decreasing the need of manual labor. Automation is the need of time as people and life become so advanced that there is very little left to perform basic office activities. Automation control systems and

mechanical energy have become a necessity. Automatic controls which were originally intended primarily as economic measures against raising labor cost have now become a necessity dictated by the nature of modern services. Automation today means considerably more that coordination of a service of machines. It is not being applied at all levels of business and industry. There is scarcely an activity social or economic that is not affected, to some degree, by the use of automatically controlled devices and systems. In the span of a single century, the share of energy provided by human and animal effort is declined from 905 to 10%. Automation is not likely to after this ratio because most human beings no longer act beast of burden or more source of power. The impact of the new machines on every day life is far more revolutionary than the machine itself. Automation has increased individual productivity and manhours on job have decreased. Office working and atmosphere have been replaced by automation and automated equipments. There are various equipments that are making office work fast, automatic and self regulated.[journal of the school of computer training USA]

COMPUTER Today a computer on every desk or in every pocket is almost a must with the rise of work group computer-shy workers will need to store information and collaborate with peers. Improvements in the human interface, the ways the computer accepts information from us present it to us, will only make learning to use systems easier. Computer will adapt themselves to users needs making workers more efficient, creative and productive. Everyday, the computers are getting smarter and more powerful. Not long ago you had to be a technician, mathematician or a scientist to understand and use the

computer. Computer held you to write more quickly and accurately. Computers save time, money, and effort. They let you perform magic that was never before possible. Knowing the basic of computers is an essential requirement in most of todays careers in manufacturing, marketing, and finances. From large corporations to small mom and pop business, computer technology handles more jobs that were once done by hand-saving time, expenses and increasing efficiency. It is simple fact of life today. Study after study shows the growing importance of computer, even in the computer industry itself. Dr. F. Miller, National Director of education, Professional careers development Institute USA says, In todays market there is not quite as importance as far reaching as the ability to use a computer. (Daily Dawn, March 19.1999) IT SETUP AT THE BANK ALFALAH HYDERABAD BRANCH The following IT area was covered at the Bank Alfalah Ltd Hyderabad branch. I am going to brief all of the below one by one. 1. NETWORK The Network setup at the Bank Alfalah Ltd Hyderabad branch consisted of the following 1. WORKGROUP NETWORKING The networking at the Hyderabad branch is workgroup network. It is not a domainbased network. The topology used is STAR. 2. DXX LINK BETWEEN HYD AND KHI The connectivity of the branches is through DXX link taken from PTCL between HYD and KHI main branch. Online branch connectivity 3. ISDN BRI AS BACK LINK In case of network failure of DXX Link the backup link used is ISDN BRI. 4. MS WINDOWS 2008 SERVER MS Windows 2008 server acts as the server for the branch while the database server is SQL 2005. CLIENTS: On client side windows XP professional are used as the client.

2. HARDWARE 1. SYSTEMS There are nearly 45 + systems in the branch. All the systems are PIV with latest configuration and updates. 2. HP COMPAQ MACHINE PIV The machine purchased are branded machines of HP 3. PRINTERS There are nearly 10 fast laser Jet printers in the branch handed over to different departments. 4. PRINTRONIX LINE MATRIX PRINTER The one printer is the line-matrix printer for printing of the daily routine printouts of branch record keeping. 5.HP PROLIANT DL380 G6: HP COMP PROLIANT 380 G6 is the server machine, with 4GHz and 4.0MB RAM 3. SOFTWARE DIFFERENT SOFTWARE FOR DIFFERENT PURPOSES 1. BANK SMART (FO) This software performs main general banking tasks. It has all the features which a general banking requires. 2. BANK SMART ONLINE This software is used for online transactions between different branches. 3. SMART CREDITS This software is designed to meet the requirements of the CREDIT department of branch. 4. SMART REPORTS This software is used for printing of the different reports from the staff for their specific purposes. 5. QUEUE MATIC This software is used for the queue management at the cash counter. Through this software the menace of the queuing is resolved. 6. CREAM SOFTWARE This is centralized software for the CREDIT /LEASE department. 7. LEASE SOFTWARE This is another department for the CREDIT department. This software is also centralized.

ATM (Auto Teller Machine)/Debit Card: Bank Alfalah Limited was the pioneer in bringing the ease, convenience and security of ATM/Debit Card products. Continuing with its legacy of constant innovation and value addition, BAL re-launches its ATM/Debit Card now. Packed with Visa power, Value Debit Card can be used for payment of purchases not only at thousands of outlets in Pakistan but also over 20 million outlets worldwide where Visa cards are accepted. Value Debit Card can also be used at 864,000 ATMs worldwide. And thats not all: the family members of cardholders too can enjoy the convenience and benefits of Bank Alfalah Value Debit Card through the Bank Alfalah Value Supplementary Debit Card. Visa Debit Cards are buy now, pay now electronic payment tools that give the card holder instant access to funds in their bank account when the card is issued for purchases at a merchant. Bank Alfalah account holders can apply for a Value Visa Debit Card and they do not need to quality for credit eligibility. With Debit Cards, cardholders can spend within the limits of what is in their bank accounts. With the launch of this product Bank Alfalah continues to build on its tradition of introducing unique and value added products and services, all of this, means to only one end-A Satisfied Customer, an end to which the Bank committed and dedicate said Zakir Mehmood.

E-BANKING AT BANK ALFALAH Bank Alfalah provides e-banking facilities to its customers. It claims that it: Is your bank at your fingertips Is completeAll your banking needs are covered in a single user interface. Is convenientaccess to your accounts from your desktop any time any where across the globe and avoid the hassles of branch banking. Is economicalAll it takes is a Dial up to the Bank or www.BankAlfalah.com site. No extra charges, no new hardware / software and no more frequent visits

to the Bank and the time wasted in arranging appointments, traveling, parking and queuing at the bank for ordinary money management requirements. Improves Fund ManagementLatest information of your company / personal accounts both in Rupees and other currencies on your desktop computer provides a great facility to manage your funds flow in a more efficient manner. You can check whether you have sufficient funds in your account for the present days needs or you have to arrange funds from other account(s)/ resources to meet your needs, Improves WorkingEffective management of excess cash float, accelerated accounts management, immediate reconciliation and electronic filing saves time, space and allows easy retrieval thus improving working quality and control. Is secureUncompromised security features supported by carefully controlled set of private passwords only permits authorized persons to access bankalfalah.com from office / home. The bankAlfalah.com customers also have the option to decide the access rights of their users to access/ manage their ebanking activities by using their private passwords. For more details, please click Security Features. Is user friendlyit is designed with you in mind. Simple step-by-step processes show you how to use it. An extensive on-screen help is also available in the system besides the formal documentary guidance and assistance/ training provided by the bank to the bankalfalah.com users. Ensure confidentialitythe inherent high degree of data encryption and authentication features in the system ensures absolute data integrity of all value transactions / information routed to or received from the Bank, giving the user complete peace of mind.

CHAPTER NO: 3 DIFFERENT FUNCTIONAL DIVISION OF BANK ALFALAH OF PAKISTAN LIMITED There are many Functional division of BAL. Each division has its own specialized function, for which these departments or divisions are responsible. The heads or chiefs of these departments are SVPs (senior Vice President) or VPs (Vice President). Following are the some important Functional Division of BAL:-

1. Audit and Inspection Division: -This division is responsible for detecting irregularities in banking process and includes mistakes made by employees intentionally and unintentionally. And also look after classified advances or loans, which are monitored by Branch managers, and how the Managers are dealing with Bad debts accounts. And also this division is responsible for complaints, which are made against branches. 2. Business Promotion Division:-In this division there is responsibility to promote the financial products of BAL. Such as: rupee travelers Cheques, BAL master credit card and different investing schemes. And the loans, which are given to different sectors like agriculture and small business, this department also helps them in their operations and also they give them expert suggestion. And also the processing of hajj application through the bank is dealt in this division. 3. Credit Division: -This department manages and controls the finance/loans, which are given through different branches of bank, such as project finance or demand finance. And also processing of finance carried out through this department. Customers should be financed or not, decisions are to be taken in this department. 4. Establishment Division:-In this there is a administration wing which have responsibility of maintenance of branches of bank. This division purchases all goods or materials. And this department such as vouchers, registers, papers, and cheques, pay orders, demands drafts and other stationary, material, fulfills all stationary requirements 5. Finance Division:-This division has very important responsibility of investing the funds or deposits which are deposited by customers in various profitable schemes or in projects or purchasing securities. And this division also deals the Budget of bank. And they keep information about Pak rupee account of bank in state bank of Pakistan, which is maintained in SBP.

6. Human Resource Division:- It is the responsibility of this division to hire new people for bank. And this division shapes policies on salaries, bonuses and other facilities given to employees of bank. And this division includes a training academy for bank where training is given to new employees and also to old employees on new banking systems, tools and method. 7. Information Technology Division: -As we know that approximately the all major branches of bank are computerized. And the branches are performing their work with modern computer systems. In this way this division has responsibility of programming of these softwares which are used in banking, and branches which has online banking system, maintaining and controlling this online system is responsibility of IT division. And other services are given to branches by this division. 8. International Division:-This division deal in documents internationally through out world in its branches. Also they deal with foreign trade (Import & Export). And also this division has authority of approvals of LCs.You know further about LCs in foreign exchange chapter 9. Treasury Division:-Work of treasury divisions to purchase of foreign currencies. And also the branches which are selling and purchasing foreign exchange, rates on which bank purchase or

CHAPTER NO: 4 GENERAL BANKING General banking is further divided into allowing sections: 1. Cash Department 2. Accounts 3. Remittance 4. Clearing and Collection 4.1-CASH DEPARTMENT In this sections deposit and with drawl of money takes place. In this department of bank customers deposit their money in their existing accounts and at the same time

they also withdraw their money from their own accounts through cheques. The cashier is responsible for all matters of cash such as payment and receiving. 4.2- ACCOUNTS In this department of bank different types of accounts are maintained. TYPES OF ACCOUNTS 1) Current Accounts 2) Saving Accounts 3) Fixed Deposit Accounts 1) CURRENT ACCOUNT A current account is a running or an active account, which is continuously in operation. The larger organizations, public and private corporations, and it is also maintained by individuals and business entrepreneurs. There is no limit of withdrawal of money from these accounts, but customers should maintain minimum credit balance with the bank. People can deposit their every days surplus cash including cheques from others in current account. On current accounts banks do not pay any interest or profit. This type of account is appropriate for business people. Allied bank of Pakistan requires a minimum deposit of rs.500 to open this account. The bank in this case acts only as the custodian of money, and usually does not use these funds because these funds can be with drawl at any time. 2) SAVING ACCOUNTS In this type of account, to encourage saving among business man and low income group interest is given. The interest rate is 3.5% per annum.the rule of this account is that customer can withdraw money twice in week only. But there is no any system to cheque no: of transaction of particular account. In this way person can draw, as much he wants.

3) FIXED DEPOSIT ACCOUNTS In these accounts customers have to fix their amount for a certain time period and for this they will give interest on their money for rates and time maturities. Minimum retail amount can be of 3month, 6 month, one year or five or ten years. These deposits are also called as term deposits because these deposits are based on fixed duration. Since fixed deposits remain with the bank for stipulated time, these can be advanced profitably to the customers and thus fixed deposits appear to the main source of credit creation by the commercial. As time period more the profit rate will be more. NATURE OF ACCOUNTS 1) Single Accounts 2) Joint Accounts 3) Minor Accounts 1. Single Account Single account is that account which a person individually assesses and singly operates it. Single account can be in current or in saving account. 2) Joint Account An account in the name of two or more, other than partners or trustees is called a joint account. Joint accounts can have two operations, either single operation or joint operation. Single operation means any one of the joint account holders or any third party is given authority to operate joint account by that account holders. While joint operation means all the parties will operate it simultaneously and all will have to sign whenever they do transactions with the bank. 3) Minor account A minor is person who has not attained the age of 18 by the court. An account in the name of minor may be allowed to open by his guardian, jointly in the name of

guardian/minor, or minors, payable to either or survivor opener of the account. As such relevant joint account opening from meant for joint account of minors shall be used. 4) Illiterate person Account: This account is used for a person who cant be signed. The documentation is photograph, NIC and thumb operation. Illiterate person cant be issue the crossed Cheque only he can withdraw and deposit money. Physically shop is necessary to all holders. 5) Account of parda Nasheen Khatoon: This account is used for women who dont show the face. Female workers operate the women.

6) Trust account: Documentations are copy of financer of all trust, board of regulation, account operation authority and bye laws.(who is eligible people) 7) Account of Club, Society & Association: This account is opened for any club, society, association, hotel, institution etc. Documentations are memorandum of association, copy of NIC of account holder. In case of death of account holder or any reason all the assets and money is given to administrator who is appointed by Court and administrator control all business.

4.3-REMITTANCE DEPARTMENT The bank provides the facility of remitting the funds within the city, with in the country and also outside the country (foreign remittance) within certain limits. The means of transfer of funds / amounts from one branch to another with the country through banking instruments:

1. Demand Draft 2. Pay Order 3. Telegraphic Transfer 4. Mail Transfer

(D.D) (P.O) (T.T) (M.T)

1. Demand Draft The customer purchases DD by filling application from payment of original amount and service charges and tax. It is a written order drawn by one branch of a bank and received from other branch of same bank under special agreements to pay certain sum of money to or the order of specified person. And after issuing the demand drafts to customers bank will send an advice to that branch which will receive the D.D.for preventing any kind of fraud. Demand draft can be used within all branches of country. 2. Pay Order It is an instrument like DD that confirms the payment for negotiation in deal b/w two parties. And the bank for its own branches in same city uses it. Tax and service charges will also be for purchase. 3. Telegraphic transfer/ telex of Fax Transfer Transfer of funds from one branch to another branch of the same bank under special arrangements for the payment to beneficiary through telegram /telex/ fax/ telephone is called Telegraphic Transfer. This mode of service involve less time as compared to DD through some calculation of numbers known as test numbers b/w the two branches. This can be possible only by crediting amount of customer. Tax and service charges are also applied. 4. Mail Transfer

Transfer of funds from one branch to other branch of same bank within city or out city through mail/courier service is called mail Transfer. 4.4-CLEARING AND COLLECTION DEPARTMENT When the instruments like cheques, DDs, P.Os etc of other banks and other branches of the own bank comes in the bank. This department of bank plays a very important role. When instruments of the banks or branches of other cities or out side the city come in the bank then they send to collection, means they will be confirmed and then deposits can be or withdrawn after the process of collection. Similarly when instruments are of the same city but of different branches or banks then it will send to clearing. This process will be done in SBP when the representatives of all banks come and their transactions.thatswhy SBP is called as clearing house. 4.5- BAL ACCOUNT OPENING PROCEDURE: Bank Alfalah of Pakistan Limited has laid down certain formalities, which are to be followed by all its branches in different cities before an account may be opened. These formalities are: 1) INTRODUCTION OF ACCOUNT: To open the account, introduction of account and a person is taken in written documents or necessary to introducer who introduces the account holder. Current account holders can introduce for any person but saving account holder only can introduce to saving account holder and introducer is a responsible to any mistakes and fraud.

2) PRELIMINARY INVESTIGATION:
For opening an account, investigation is must taken to the person, which must complete a specific form (KYC) know your customer. It is attached with open account form, which is must complete to customer.

3) VERNICULAR FORM:

This form is used for a person who signs out of English Language. 4) NON-MUSLIM DECLARATION: This form is only used for non-muslim because non-muslim dont give zakat, so it is separate from zakat.

5) FORM 0-22-A
This type of form is used by a person who is non-residence in a country. The time period of this account is under 8 months. It is valid account. 6) STOP PAYMENT: In case of loss a Cheque and any reason of mistake a fraud account holder can stop payment/account in written documents. Stop payment form will be taken and reactivating again. 7) ISSUANCE OF CHEQUE BOOK: For issuing a Cheque Book, reqociation slip will be filled and in case of loss a slip again reqociation slip will be filled with a charge of Rs.100.

FLOW OF FUNDS TO/FROM ACCOUNT: DETI CHEQUE:

A Cheque is written order given to a bank by a depositor requiring his to pay on demand a certain sum of money.

QUALITIES OF CHEQUE:
The Cheque must contain following qualities:

1. Date 2. Amount 3. Payee 4. Signature

PARTIES OF CHEQUE:
There are three parties of Cheque: 1. Drawer: 2. Drawee: 3. Payee Who maintains accounts and issue a Cheque with his Signature. Who draws the Cheque? : Who get money?

TYPES OF CHEQUE
1. Open Cheque: An Open Cheque can be produced by payee to the bank and it can cash at a counter. 2. Crossed Cheque: A crossed Cheque is recognized by two parallel lines across the face of Cheque on but, it is processed in all rules then it will cashed on next day.

ORDER CHEQUE:
A cheque is cashed by a certain person called order Cheque and signature is necessary to that person who is ordered.

MUTULATION:

Mutilation Cheque means, the Cheque is not in proper way, either it is damaged or force.

POST DATED CHEQUE:

A Cheque which bears on future date. For example, Cheque was dated on 20 th July, so Cheque will be cashed and same this date (20 th July).

OUTSIDE DATE:
This required of Cheque is six months, after duration Cheque will be out of date and then it cant be cashed if revalidation by drawer may also be draw.

BOUNCING OF CHEQUE:
The term bouncing is that to reject the Cheque because of any mistake and any reason may be.

DECADES A/C:
The term decades is that, in case of death and any reason to terminate a account if account has Rs.25,000, money can be given to wife, sons and daughter but if moneys above of rs.25,000, so bank ask to bring a certificate from court and then money will be distribute regarding certificate / court.

WORKING FOR FREE ONLINE SERVICE: CRITERIA FOR FREE ONLINE SERVICE:

Online service means, to deposit a money and charge an online a money services.

withdraw a money if current A/C

balance is 1000.000 and saving account balance is Rs.500.000,so there is no any

ELECTRONIC SUPPORT FOR ONLINE BANKING:

It is very fast and easy to get a fund. It is only used for deposit and withdraws money. All branches are connected with wide Area Network (WAN).

PROCEDURE FOR CASH DEPARTMENT:

An online application will be filled by person and bank checks that whether person has a facility to online deposit or not, if he has a facility. So he can accept cash. Applicable charge will be recovered.

WORKING OF FUND TO/FROM ACCOUNT:

1) TELLER SYSTEM: A teller system is machines, which provides a facility to records cash either deposit and withdraw. For example customer comes to cashier for depositing cash, so cashier records his money in his account with the help of teller system at a time. 2) RECEIPTS OF CASH: Bank receives cash from customer with his specific form and cashier returns his section from a form. 3) PAYMENT OF CASH:

With the help of Cheque money is cashed by ban

CONCEPT OF CRR
The State Bank of Pakistan requires depositing the amount from the bank.e.g if SBP requires 500.000 it deposits to the bank so. There are three rules of State bank of Pakistan. 1. If bank deposits 500.000, so no any charge is given to SBP. 2. If bank deposits 600.000, so SBP cover given to the bank with markup 3.5% 3. If bank deposits 400.000 so bank will give cover take to SBp with markup 3.5%

CHARGING MARKUP ON READ OFFICE PLACEMENT

In this term also it happens that head office required to deposit an amount from its bank if required deposits is increased, so H.O gives a 3.5 % mark up to the bank and if required is decreased,so,branch will pay 3.5%markup to Head Office.

CONCEPT OF PLS SYSTEM:

The concept of profit and loss saving system is that to deposit money for saving on long time period. In PLS no limit of profit on deposits. The more deposits, more profit and less deposit less profit.

LOCKERS
Customer fills the application to get license for the lockers. There are three types of lockers: 1-Small 2-Medium 3-large

The relevant officer hand over the keys to the customer. A customer is charged certain rates like for small lockers 1500, for Medium rs 2500 and for Large 3500 are charged per annum.the license can be cancelled by the customer giving seven days notice before expiry of the liscense.basically lockers provide the safest mode for customers assets.

CHAPTER NO: 5

FORMS OF ADVANCES
An advance in banking business we mean that supply of money on credit. A bank is a profit seeking organization. It attracts surplus balances from the customers at low rate of interest and makes advances to individuals and business firm at higher rate of interest. The advances made by commercial banks are classified into two categories: 5.1-CATEGORIES/TYPES OF ADVANCES 1-Overdrafts, cash credits and Loans 2-Bills discounted and purchased

1.1-Overdrafts:Overdrafts are a common form of bank lending. A borrower is allowed to withdraw on his current account in excess of the balance up to a certain limit by the bank. The facility of overdrawing is generally allowed against security of goods. It can be given on the personal security of the borrower. It is a short term financing. 1.2-Cash Credit: A cash credit is a deal by which a bank allows his customer to have a loan of money up to a certain limit. The cash credit arrangement is made mostly against the security of goods kept with the bank. In cash credit system, the borrower is given the facility of withdrawing the whole of amount of loan at one time or partially, when required. the interest is charged on the amount actually withdrawn by the borrower at any time and not on the full amount of the credit allowed.

1.3-Loan: Loan is an arrangement of advancing a sum of money on interest for a pre agreed period with or without security.

TYPES OF LOAN
i. term Loans ii.Personal Loans

Term Loans:
The commercial bank sanctions three types of loan to business which is given as under: 1. Short term loans 2. The medium term loans

3. The long term loans Short term loans are for one year and medium term loans are for 1 to 5 years and Long term loans can be for 10 years. And these term loans are given for different sectors: 1. Commercial 2. Industrial 3. Agriculture 4. Development 1-Commercial: Loans and finance including Bills and discounted given for business purposes, not exceeding Rs.0.3 million per borrower.

2. Industrial:
Loans and financial accommodation to industrial units including cottage industries having fixed assets excluding land and building original value of which does not exceed Rs.20,million would be treated as small industrial loan.

3. Agriculture:
Agriculture financing is eligible for each of the following purposes: 1. Farm Credit 2. Non-Farm Credit

Farm Credit:
It includes Production finances (seed, fertilizer, pesticides).

Development finance (tractor, tube well, farm machinery and land improvement)

Non-Farm Credit
Livestock, diary, poultry, fisheries etc Working capital Fixed capital Under agriculture finance, both types of financing will be done on mark-up basis.

Mark-up
Mark-up will be charged as per existing rate, subject to changes from time to time (Presently 51paisaa per day per 1000/).

Personal Loan:
A bank also sanctions personal loans to individuals these loans help in raising the living standard of the people. The loans are given for the construction of house, purchase of cars.

5.2-FINANCE
Finance, concerned with providing funds to individuals, businesses, and governments. Finance allows these entities to use credit instead of cash to purchase goods and invest in projects. For example an industrial firm can raise money through investors to build a new factory. Finance plays an important role in the economy. Bank and other financial institution provide credit; they help expand the economy by directing funds from savers to borrowers. For example, a bank acquires large amount of money from the deposits of individual savers. The bank does not let this money sit idle but instead provides loans to borrowers who might then expand a business. In BAL the Finance matters are deal by the Manager him self, he inform me that there is four kinds of finance is given to customer by bank.

TYPES OF FINANCE

1. Running Finance 2. Demand Finance 3. Cash Finance 4. Project Finance

Running Finance
Running finance: withdrawal on the current account is allowed in excess of the Credit balance, which the customer has maintained. It is provided only to the current account holders. Zonal office can sanction the loan Up to 3lac. Beyond this limit the head office will be sanctioning authority. The loan can be granted on personal guarantee, hypothefication of stock goods / mortgage of property. The yearly interest rate is 17% the payment of the loan will be made from time to time.

Demand Finance
The rules in demand finance are same as for running finance. P.L.S account holder can also take the loan. The mark-up will be charged on the expiry of the scheduled date of loan. In this type of finance bank will sanction the specific amount to any party.

Cash Finance
Cash finance facility is given by bank against pledge of goods or stock. And in this Securities are kept with banks custody, means personnel of bank will look after goods and when client will make payment and get letter from bank then personnel will allow them to take goods.

Project Finance
These loans are given for huge and big projects with 60:40 ratio means 40% investment made by investor and 60% investment will be given by bank.

Processing of proposals:
When the application is given by customer for any kind of finance facility he or she has to fill 151 from, 8 page Performa and the balance sheet of its organization, if any organization or corporation is applying for credit and borrowers basic fact sheet, it is the Document in which detailed information customer has to give about him self and his business. And after this the manager is recommending authority, and if he will be satisfied hen he will recommends his application to credit division.

Documentation
Customer will give some documents which show that which securities he or she is giving against loan and how these securities are mortgaged. And is customer is failing to pay his liabilities to bank these documents will used by manager in court when thy will sue against customer.

Monthly Returns
These are the statements which bank will send to head office about recovery of advances and about outstanding advances.

5.3-MODES OF SECURING ADVANCES The main modes of securing advances are as under: 1. Bankers lien 2. Pledge 3. Mortgage 4. Hypothecation

Bankers Lien
A lien is the right to retain property in its possession till its (bankers) dues are cleared. Lien gives a bank only a right to retain the possession of the goods not the power to sell.

Pledge
A pledge is a contract where by a goods are deposited with the lender as security for repayment of loan. Transferring the goods from the owners go down to a bankers go down may make the delivery of the goods or keys are handed over to the lender. The person delivering goods as security is called the pledge. The person to whom the goods are delivered is known as pledge.

Mortgage
A mortgage is the transfer of an asset in a specific immovable property for the purpose of securing the money advances by the way of loan, an existing or future debt. The person in whose interest is transferred is known as mortgagor.

Hypothecation
Hypothecation is a legal transaction whereby goods may be made available as security for a debit without transferring property or the possession to the lender. The advance of loans against goods without taking their possession is very risky on two main bases. One is as the goods are in possession of the owner and as the borrower may take out goods without informing the bank secondly the bank does not have legal claim as it does not have valid charge over goods.

CHAPTER NO: 6

FOREIGN EXCHANGE DEPARTMENT

6.1-FOREIGN EXCHANGE There is not a single country in the world, which is self-sufficient. There is constant inflow and outflow of goods and services from one country to another. When goods and services are exported, the money is to be receiving from the foreigners, and when they are imported, or government in foreign countries involves many problems. First, the transfer of the mean payment across national boundaries. Second the conversion of currency of one country into that of other country.

Foreign exchange plays an important role in the payments of international trade. The term foreign exchange is used in the narrow as well as in the broad sense. In narrow sense it simple means the money of a foreign country. In the broad sense, the word foreign exchange is related to the exchange methods and mechanism through which the payments in connection with international trade are made.

6.2-IMPORTS Imports of goods into Pakistan are regulated by the Ministry of Commerce, Government of Pakistan under the import and export control act (1950). Registration of Imports: No person can import goods into Pakistan unless he/she is registered with the chief controller of imports and export. it is necessary for banks to verify that the importer is registered before any letter of credit is opened on his behalf for imports into Pakistan and registrations number should be invariably furnished on form. Importer is required to become a member of Chamber of commerce and industry and get registered with Export Promotion Bureau. Methods or Instruments of making foreign Payments The main methods, which have been adopted, for making international payment are given: 1) Letter of credit 2) Bill of exchange 3) Foreign bank draft

1) LETTER OF CREDIT (L/C)

Trade between countries is financed mainly through letter of credit. A LETTER OF CREDIT is an undertaking by the importing countrys banker that bills drawn on it will be duly honored on compliance with the terms and conditions of the credit. F.heinus has defined (L/C) A letter of credit is a written instrument issued by the buyers bank authorizing the seller to draw in accordance with certain terms and stipulating in legal form that all such bills will be honored.

Parties to a Commercial Letter Of Credit: There are four parties involved in a letter of credit:

1-Account party (the buyer) The buyer or importer on whose account and request the letter of credit (L/C) is opened is known as account or opener. 2-Issuing bank: The bank, which issues or opens a letter of credit at the request of the customer (Importer), is called the issuing bank. 3-Exporter or Seller: The seller or the party in whose favour the L/C is drawn is the third party. He is also known as beneficiary. The seller who is exporter is the beneficiary of the L/C .He is the person in whose favour the letter of credit is drawn. 4. Paying or negotiating bank: The paying bank in the exporters country on which the draft is drawn is called the paying or negotiating bank. The negotiating bank has to see that the documents negotiated conform strictly to the terms and conditions of the credit.

Requirements of opening LC The Importer should have the valid import registration certificate, and also he should get sanction from state bank for amount of LC, because the country is paying the foreign currency. He should get forwarding letter from head office that approves the LC to be opened by bank. he should have the balance in his account, required to open LC.And bank will verify harmonize code that whether the items to be imported are permissible by state bank of Pakistan or not. And the IB-8 form should be dully filled and signed on all pages of form which contain some terms and condition from bank. And proforma invoice duly accepted means the importer and exporter are agree to this deal. And form I should be also filled. And also the importer should make goods insured from any authorizes insurance company.

Opening of Letter of credit The main steps involved in the opening of the letter of credit are as follows: i. Application for letter of credit ii Security of application iii. Margin iv. Insurance v Shipment of goods vi. Role of negotiating bank vii Liability of issuing bank viii Payment to the exporter i. Application for letter of credit: The importer will request his own bank or some other bank, which deals in foreign trade transactions to issue a letter of credit in favour of the exporter. He will give full information on the prescribed form available from the bank about the amounts

and nature of credit to be opened, details of goods to be imported, bill of lading, details or shipment, insurance etc.Application form is called IB-8 form. ii.Security of application: before issuing a letter of credit, the bank will scrutinize whether the importer is of good financial standing, possesses the import license issued by Import Control Authorities, the amount available covers the letter of credit applied for, the license is valid etc

iii.Margin The bank asks the importer to deposit cash or securities with the bank. The bank depending upon the credit worthiness of the importer decide the proper margin of cash or security to be deposited. iv.Insurance: The bank asks importer to take an insurance policy of the value of goods (c/f) policy should be in the joint name of the bank and importer. v.Issue of letter of credit: The importers bank after being fully satisfied will issue a letter of credit in favour of the exporter. The L/C may be sent directly to the exporter or to the advising bank in the exporters country. In such a case the advising bank will inform the exporter about the opening of letter of credit. vi.Shipment of goods: When the exporter receives a L/C, he examines it to ensure that it conforms to the terms of sales of contract. He then ships the goods and presents all required documents along with the bill to the negotiating bank.

vii. Role of negotiating bank: The negotiating bank after receiving all document and the bill from the exporter, will examine them. Whether these conform to the terms of (L/C).if the documents of title accompanying bill are in order, these will be sent to the importers bank for payment.

viii. Liability of issuing bank: One receipt of documents and the bill, the issuing bank will examine them. If the documents on the face appear to be in order, the bank would release the payment. The issuing bank is only accountable for the completeness and regularity of the document, relating to L/C. ix. Payment to the exporter: The exporter can obtain payment from the negotiating bank by discounting the draft (L/C) immediately after shipping the goods and obtaining shipping documents. TYPES OF LETTER OF CREDIT (L/C): There are various kinds of letters of credit. The important of them are given as under: 1) Sight L/C (L/C sight) 2) Since letter of credit (L.C DA) Sight L/C: In case of sight L/C, the draft is drawn at sight and the relevant document are held by the bank as security, until the same are retired. L/C DA: The draft drawn is for term stipulated in L/C, payable by the customer on due date. 2) Bill of exchange:

The bill of exchange is a most effective instrument in making international payments. A bill of exchange is an order in writing form the drawer to pay the specified sum of money on demand or some specified future date. The drawer can discount the bill of exchange from his amount less than its face value. The margin between the face value and the amount paid, by the bank is termed as banks discount. 3) Foreign Bank Draft: It is the most direct and simple method of making international cash payment is to purchase a foreign bank draft. The foreign bank draft is an order drawn by the bank on its foreign branch or correspondent to pay a specific sum of money on demand to bearer or to the order of a person designated by the purchase of the draft. 6.3-EXPORTS For exporting any kind of goods to abroad exporter should have the current account in bank. And he should give application for E-Form. Form-E is a declaration by exporters for goods exported from Pakistan. There are four copies to E-form first copy will be sent to custom with goods, and second copy will be with bank, third copy will sent to SBP and last copy will be with exporter. Exporter should have export license and also he should be member of export promotion bureau (EPB).And NIC copy will be given by customer to bank. All the collection documents which exporter gives to custom. These documents custom authorities will send to bank. And then bank will send these documents to importers bank. After getting these entire documents importers bank will inform importer to send goods to exporter. And then payment will be realized by exporters bank. 6.4-FOREIGN CURRENCY ACCOUNTS The third important part of forex is foreign currency. Foreign currency account was introduced with first rulings period of Muhammad Nawaz Sharif in 1992.Legal person includes joint stock companies: resident of other countries can maintain the accounts in any of them.

The function of this section is to maintain the foreign currency accounts, such as receiving and payments of foreign currency etc. There are three kinds of foreign currency accounts BAL dealing: 1. Old Foreign accounts 2. Incremental accounts 3. New Foreign currency accounts 1. Old Foreign accounts: These are those foreign accounts which were frozen or blocked by government after 28 th may 1998 when government made nuclear tests. At this time the bank is converting foreign currency of those accounts and paying in Pak currency. And this order was given by government to state bank and then state bank has instructed these orders to bank. 2. Incremental accounts: here in this account, if customer had deposited foreign currency after 28th may then the payment will be given in foreign currency. 3. New Foreign currency accounts: these are the new account which was opened after 28th may. And in these all transactions are made in foreign currency.

In these above mentioned accounts both current and saving accounts are included. And with every transaction of foreign currency it is mandatory for every branch which is dealing in foreign currency to send a voucher for every transaction to state bank of Pakistan, which contain amount of currency type of currency. Foreign currency accounts can be opened into four currencies. U.S Dollar GBP Great Britain Pound DM Deutch mark Japanese yen 6.5-INWARD AND OUTWARD FOREIGN REMITTANCES:

The function of this department is to send and receive the foreign remittances through their authorized dealers, such as F.T.T (Foreign telegraphic transfer) and F.D.D (Foreign Demand Draft) The term inward remittance means purchase of foreign currencies in whatever form and includes not only remittance by M.T, T.T, draft. But also purchase of travelers cheques, drafts under travelers letter of credit, bills of exchange, currency etc. Foreign demand draft can be drawn on any bank of word. And in FTT through telex funds can be transfer to any branch CHAPTER NO: 7

PRODUCTS OF BANK ALFALAH

BANK ALFALAH OF PAKISTAN Limited has been at the front position of providing its customer with new and innovative products. Some of them is given as under. 1. Deposit Products 2. Remittance Products 3. Online banking 4. Credit Product 7.1. DEPOSIT PRODUCT: There are three types of deposit product. A) Demand deposit: It is divided into three categories. 1. Current account: Current Account is generally used by businessmen, organization and managements.etc.day to day lending and borrowing the money. It has no profit that is

why it is called nonprofit, for depositing the money, Rs 10,000 must be its account and Rs .100 have to pay to the banker. 2. Call Account: Call account is used for bidding purpose to participate as an Owenton. The separate account is called call account. It is not chargeable account. Bank issues call deposit Receipt to depositor who get his money.

3. Marginal Account: If we are getting Rs.10, 000 so bank provides 755 and 25%.it services itself. The 25% of money is called margin it is deposited is Marginal Accounts. It is non funded business. b) Saving Deposits: Saving deposit means to deposit the money for saving and security .It provides a nominal profit. It is maintained by individual for depositing Rs.60.000 must be balance otherwise Rs.50 has to pay after 6 months. Profit is calculated in monthly basis but it is given after 6 months to depositor. 1. Royal Profit: The required money for opening deposit account is min: 25000 and profit is processed in monthly basis depending upon the average balance. Societies, Sole proprietorship organization and individual maintain it. c) TIME DEPOSITS (TDR) Time deposit is concerned with the deposit the money with long time period. It is non-chequeable account. Bank serves TDR (Term Deposit Receipts) to account

holder. The duration may be one month to five year. (Now banks are provided duration one month to two years)

7.2REMITTANCE PRODUCTS: Remittances products are used for transferring a payment. There are various types of remittance product. 1. Demand draft (D-D): It is used for transferring money from one city to another. The application form is required. The time period of demand draft is within 6 months. 2. Telegram Transfer: It is also transferring money branch to branch, but physical instruments are not given. It is very fast most.

3. Pay Order (P/O):

It is transferring the money within the city valid upto 6 months after that it is revalidation. 4. Rupees Transfer Cheques (RTC): It happens that some people purchase the products but they dont given a money, but they give a specific cheque, this type of cheque called Rupees Travelers Cheque.It is very fast mode and fast convenience easy way to Cary the money min: Rs.5000. Max: Rs.20, 000

ONLINEBANKING:
Bank Alfalah now offers the facility of on-line banking to its customers through its country wide network of branches. Customers can use the ATMs or the banking

counters of any branch for day-to-day banking needs, irrespective of branch where they maintain their accounts. For Corporate customers centralized Cash Management facility is also offered through on-line banking.Alfalah Online is a unique service offering from Bank Alfalah Limited. Through alfalah Online, Your account in Bank alfalah is available to you from any of our branch country-wide. No matter where you are in the country and which branch your account is maintained, you can have cheque enchased at any of our over 700 branches located in 250 cities. You can also use the service to deposit cash for instant credit into your account or any other account in Bank Alfalah from any branch. Similarly account-toaccount Funds Transfer facility is also available for instant remittance. Your cheque drawn on a remote branch for credit into beneficiarys account or encashment up to a specified amount can also be presented at any branch by a 3 rd party. Other services available to accountholders are Balance Enquiry and Account Statement at remote branches. Alfalah Online provides a secure, efficient and convenient facility for making payments to beneficiary accounts from any of our branches country-wide. It can be used for cash management services by corporate customers requiring funds collection or disbursement facility. At the forefront of technological excellence, proudly introduces ONLINE BANKING. The convenience of accessing your account balance information and mini statements whenever you want or wherever you may need them, with comfort and peace of mind. Online Banking service is available to all ATM cardholders, 24 hours-365 days.

Online Banking at a Glance:

Online banking gives you easy and quick access to your account(s) at a time you find convenient, including all holidays.

Banking at your Fingertips:

With Online Banking you can: Check your balance View the last 4 transactions of your account(s)

A Free Service:
Online Banking is a free service for account holders who have an ATM card. All you pay for is the cost of an SMS message if charged by the service provider. What do I need to login to Alfalahbank online? All you have to do is login and enter your Alfalahcard (ATM Card)/Credit Card number and your ATM PIN for security reasons. Once you are logged on, you can conduct all your banking activities at your leisure. What can I do on Alfalahbank Online? With Alfalahbank Online you can perform almost all the transactions that are available to you in a branch, from the comfort of your home. The wide range of services includes: Account Information View account details and activity View balance summary Download account activity

Transfer and Payments

Transfer funds between your accounts with Alfalahbank Pakistan Transfer funds to another Alfalahbank Pakistan customer

Foreign account Transfer

Payments
Utility Bill Payments Pay your Alfalahbank Credit Card Bill

Demand Drafts and Manager Checks

Issuance of Demand Drafts Issuance of Manager checks-Pak Rupee Only

Payee List
Add a New Payee See or delete Payees

Customer Services
Change PIN Order for statement of account Order for check book Recommend a friend Update your contact information

Rate Information
Foreign currency exchange rate Interest/Profit rate

Messages
Read new messages Send messages

Read saved messages

Back

Benefits of Alfalahbank Online:

o Quick and easy access to your bank accounts. o Transfer money between your Alfalahbank accounts. o Make your utility bill payments and credit card payments from the comfort of your home or office at any time. o Order check books and account statements. o Download your credit card and banking account activity. A bird eye view of bank Alfalah products .

MONEY GRAM:
Bank Alfalah limited, in collaboration with MoneyGram, offers remittance service to Pakistan.MoneyGram is person to person money transfer service that allows consumers to receive money in just a few minutes.

Secure and reliable:

An extensive network of quality agents, linked by computer, will transfer your money safely and ensure that it is handled with care and without delay. Thousands of people already use the Money Gram service all over the world. It Is trusted for its security and reliability.

Convenient and fast:

Money Gram is available in over 154 countries and in more than 40,000 locations worldwide. With Money Gram your money is transferred immediately and usually arrives at the receiving end within 10 minutes while other services can take days or weeks. There are no complicated procedures and you do not need a bank account or a

credit

card.

Whats

more,

the

receiver

is

handed

cash

immediately.

Free message service (for senders):

There is also an added personal touch-you can receive a 10 word message from the sender with every transaction at no extra cost 4. CREDIT PRODUCT: A) Car Financing:

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 & 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.

INSURANCE
Renowned and reliable Insurance companies are offering the competitive rates of Insurance. Pay year insurance premium in advance {at the time of down payment} and remaining in the subsequent equal monthly installment. HOW MUCH EXTRA MONEY BEING PAID? {MARK-UP}

REPAYMENTS
Easily affordable installments on monthly basis in the form of postdated cheques will set you free of depositing your rental cheques every month.

SECURITY
Hypothecation of vehicle in the name of the Bank Alfalah Limited. YOU CAN ACT AS A CO BORROWER Acting as a co borrower, will enables your family members {spouse, children- 18 year and above} to avail the financing facility and can get the car registered in their names as well.

B) Leasing:
Leasing is concerned that a person issue the product which bank provides but he is not owner of that product.After completion of salvage value, he can be owner of that product.

c) Credit Card:

1.1 Alfalah platinium 1.2 Gold silver card 1.3 Young Professional card 1.4 Women Exclusive card 1.5 Student card 1.6 Visa Mine 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 merchants and 1 million ATMs in more than 150 countries around the globe and over 10,000 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 strategic business partnerships with leading local and international brands for purchase of home appliances at exciting
Step-BY-Step (SBS)

monthly installment plan with free home delivery at lowest interest rates.

D) Debit Card:
In our endeavor to give you versatile banking options to fulfill your financial needs, Bank Alfalah Limited presents you the Alfalah HilalCard, the first Visa Electron International Debit Card which gives you an unlimited access to your current / savings account with a simple swipe, at millions of retail shops and ATMs, worldwide. The Alfalah HilalCard comes with a host of conveniences and benefits combined with the wide reach of Visa Network enabling it to be accepted at more than 840,000 ATMs and 13 million retail outlets around the world, making it the most acceptable Debit Card available in Pakistan.

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

E) Agricultural Finance:
Category: bank Alfalah Zarie sahulat Products 1. Alfalah pai dawari zarie sahulat 1.1 Alfalah paidawari zarie Sahulat 1.2 Alfalah musalsal zarie sahulat 1.3 Alfalah tractor and transport zarie sahulat 1.4 Alfalah machinery & equipment zarie sahulat 1.5 Alfalah Aabpash zarie sahulat 1.6 Alfalah Islah-e-Arazi zarie sahulat 1.7 Alfalah poultry zarie sahulat 1.8 Alfalah dairy & line stock 1.9Alfalah Fisheries zarie sahulat 1.10 Alfalah silos (slash) storage zarie sahulat 1.11 Alfalah marketing zarie sahulat 1.12Alfalah Agri industrial zarie sahulat 1.13Bills (salash) Guarantees zarie sahulat 1.14lease zarie sahulat 1.15Bio gas zarie sahulat

Bank Alfalah Ltd. (BAL) agri finance program has been named as " Bank Alfalah Zarie Sahulat. We are extending this service to the clients on a competitive markup rate. BAL model is in letter and spirit based on SBP instruction. The scheme now covers financing of a multitude of activities related to crop production, harvesting, transportation, marketing, storage, processing, packing, export, agri development, working capital and fixed investment financing of agri non crop activities, storage, silos, etc. making it quite exhaustive and comprehensive. The products have been, therefore, designed keeping in mind objectivity of practical applicability in market scenario and to cater to the most commonly demanded items of agricultural financing by farmers.

a. Seasonal Loan:
It is given under the short time period within one year. The mark up is 5%.

B.Revealing Loan:
This loan is given to long time period within 2 years or five years. The mark up rate is 9%.

F) E-Phone Banking:
"Alfalah Phone Banking is available to all customers on a countrywide basis. Customers can dial 111-225-111 (without any city code/prefix) from their respective cities i.e. 21 cities where Bank Alfalah is present, and get prompt services from the Centralized Phone Banking Services. Customers enjoy 24x7 Round the Clock Phone Banking Services. Bank Alfalah is the first bank in Pakistan to offer Centralized UAN connectivity from 48 cities to its Call Centre with Hunting & ACD facilities. The services offered by Alfalah Phone Banking include: CARDS

Card activation Card ATM PIN

Transaction Details re-

Lost / Stolen request issuance Lost / Stolen request Statement Request Financial/Service ChargesBilling address Change breakup Replacement request card

Credit Balance Inquiry request Reward points inquiry Card Criteria Information New Application status Credit Cover Information Credit Limit Enhancement Card BTF Merchant related queries Authorization issues Card dispute request Complaints

Rupee Travelers Cheques (RTCs) Procedures for lost and stolen RTCs Issuance/encashment procedure

Information of branches

Other Services Account procedure Lockers MoneyGram Opening

Product information Deposit interest rates Car Financing Consumer Durables Financing

CONCLUSIONS AND SUGGESTIONS

8-1CONCLUSIONS
I conclude this report, as that it was really a great experienced for me of doing such kind of work field.I have learned a lot from this training about banking and its different departments, different saving schemes and about implementation of banking function. During my internship I was briefed about General Banking procedures, House Financing, Account opening, Car Finance, credit Card, remittance and especially I.T because my final year project is online banking system. so it help me a lot to understand the online banking and the banking procedures. Alfalah is one of the fastest growing private banks in the country. Over the past six years the bank has made notable progress in increase business volume, efficiency and profitability. It is well positioned and flexible enough to operate competitively in the changing environment. Though it has very well organized banking system but I also found some lacking in its operations? Among most of them are: It was also observed that there is very rare chance to employees of formal training in or abroad the country. High workload was observed on the few employees. As we know that customers are the Kings they should be treated like that, but sometimes bank lacks in providing customer satisfaction. Some kinds of plans should be for the employees.

8-2 SUGGESTIONS:
On the basis of conclusions drawn, we recommend the following suggestions: BAL needs to provide its employee with classroom training. It needs to have its own training institution in Pakistan, as it is a leading bank. Such institution can provide training opportunity to other local banks employees too. The employees must be higher educated so that they understand their work in a better way and also can perform more efficiently. There is too much work load at Bank Afalah Hyderabad Branch. The Bank Alfalah has to pay more attention to wards its H.R policies. From my point of view, there should be special schemes for the employees. In this way there concentration at work will increase. For example: . They should given alternate Saturday off. So that burden will be reduce. They should given special training about their work. They should give a good atmosphere for work.

Bibliography

An introduction to Money and Banking by Prof:Khurshid siddiqui BAL products handouts Annual Reports of BAL Different kind of handouts containing info: about BAL Website of Bank Alfalah of Pakistan Information from Manual: List of Branches

 Information given by: o Zaheer uddin Babar o Syed Kashif Ali o Rizwan John Accounts officer I.T Incharge Accounts officer

APPENDIXES
APPENDIX A-AUDITORS REPORT APPENDIX B-BOARD OF DIRECTORS REPORT

APPENDIX-A AUDITORS REPORT TO THE MEMBERS

We have audited the annexed balance sheet of Bank Alfalah Limited as at December 31,2009,and the related profit and loss account, cash flow statement and statement of changes in equity together with the notes forming part thereof for the year ended December 31,2009.in which are incorporated the unaudited certificated returns from the branches except for twenty three branches which have been audited by us and we state that we have obtained all the information and explanations which, to the best of our knowledge and belief were necessary for the purpose of our audit. It is the responsibility of the Banks management to establish and maintain a system of internal control, and prepare and present the financial statements in conformity with approved accounting Standards and the requirements of the Banking companies Ordiances,1962 and the Companies Ordiance,1984.Our responsibility is to express an opinion on these statements based on our audit.

We conducted our audit in accordance with the international Standards on Auditing as applicable in Pakistan. these standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of any material misstatements. An audit includes examining, on a test basis, evidence supporting amounts and disclosures in the financial statements. An audit also includes assessing accounting policies and significant estimates made by management, as well as, evaluating the overall presentation of the financial statements. We believe that our audit provides a reasonable basis for our opinion and after due verification, which in case of loans and advances covered more than sixty percent of the total loans and advances of Bank, we report that: (a) in our opinion, proper books of account have been kept by the Bank as required by the Companies Ordiance,1984 and the returns reffered to above receieved from the branches have been found adequate for the purposes of our audit; (b) in our opinion and to the best of our information and according to the expalanation given to us the balance sheet ,profit and loss accounts,cash flow statements and statements of changes in equity together with the notes forming part therefof confirm with approved accounting standards as applicable in Pakistan, and give the information required by the Banking Companis Ordiance and the Companies Ordiance,in the manner so required and give a true and fair view of the state of the Banks affairs as at December 31,2009,its true balance of the profit ,its cash flows and changes in equity for the year ended December 31,2009,and (c) in our opinion,Zakat deductible at source under the Zakat and the Ordiance,1980 was deducted by the Bank and deposited in the Central Zakat Fund established under section 7 of that Ordiance.

A.F.FERGUSON & CO Chartered Accountants March 01 2010

APPENDIX-B BOARD OF DIRECTORS REPORT The Board of Directors is pleased to present the audited financial statements of the Bank for the year 2010 Inspite of countrys weak economic growth in 2010,your Bank has shown a strong performance and the financial strength has greatly enhanced ,Confronted with a more open financial market, but tougher competition, the Bank with its professional outlook and commitment maintained steady growth in resource mobilization and financing of foreign trade. The Bank has increased its branch network from 22 to 32 during the year. The expansion program is in line with our Strategic Business Plan. The Board would like to acknowledge the support of State Bank of Pakistan, which helped us increase our delivery channels. The Board would also like to record its appreciation for devotion, hard work and professionalism of the senior management, officers and staff of the Bank at all levels.(incomplete)

SIRAJ UD DIN AZIZ Chief Executive Officer