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(In the name of ALLAH the most beneficent and merciful)

DEPARTMENT OF COMMERCE
BAHAWALNAGAR CAMPUS
INTERNSHIP REPORT
On
Bank Alfalah Limited.
Ghalla Mandi Branch, Haroonabad, Punjab.

INTERNSHIP PERIOD:
SIX WEEK

SUBMITTED TO:
SUNDAS SHAHEEN

SUBMITTED BY:
MOHAMMAD AHSANULLAH
ROLL # 21
DEPARTMENT OF COMMERCE
MSC ACCOUNTING AND FINANCE (2013-2015)

CONTACT INFORMATION:
03347268872
AHSANULLAH772@YAHOO.COM

PREFACE:
Internship training program provides an opportunity to study the theories of books in
practice. Internship is an integral part of the Department of commerce, the Islamia
University of Bahawalpur. Due to This effort a student get practical experience. During
internship a student gains our practical knowledge.

As a commerce student of MSc accounting and Finance I have also done my internship at
Bank Al-Falah limited Ghala mandi branch Haroonabad. Here I come to know very
interesting experience of learning and working with people of Different department.

After completing the internship, it is required to write a internship repots. I have tried my
best to collect the relevant information and facts related to bank al falah limited. So that
report is the output of my internship training program in bank al falah limited in
Haroonabad branch.

INTERNSHIP REPORT-2015

ACKNOWLEDGMENT:
By the grace of Almighty Allah, the most merciful, the most beneficial for enabling me
to accomplished this task successfully.
I express my special thanks to following persons, especially Mr. Hamid (credit officer)
and Mr.Sarfraz Ahmad (DMS Officer) who working in Bank al falah Limited,
Haroonabad Branch for their kind cooperation in completing this report.
I also express my special thanks to Miss. SUNDAS SHAHEEN Placement officer for the
internship and MR. SAJID AMIN Head of Department of Commerce who provided me
such a great opportunity to get practical experience and guide me with their suggestion
to complete this internship report.

I also thankful to my parents who made this possible to complete my education and this
report without their prayers it is very difficult for me to complete this comprehensive
task.

INTERNSHIP REPORT-2015

DEDICATION

I dedicate this internship report to my


Beloved parents
And
Honorable teachers
Who help me and play an important role
To complete this task.

INTERNSHIP REPORT-2015

CONTENT OF REPORT
Preface
Acknowledgment
Dedication
Executive Summary
Introduction of Bank
History of Bank Al-Falah
Introduction of Bank Al Falah
Core Objective of Bank Al Falah
Branch Network
Chairman Message
Organization Hierarchy
Branch Functional Chart
Board of Directors
Management of Bank al Falah
Board of Advisory Committee
Finance Department
Accounts Department
Cash Department
Marketing Department
Internal Audit Department
My Internship Plan
Financial Statement Analysis
Ratio analysis
Swot analysis
PEST ANALYSISS
Recommendation
Conclusions

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09
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TABLE of Annexure:
Sr.
1
2
3

Annexure
A
B
C

Income statement
Balance sheet
Internship Letter

INTERNSHIP REPORT-2015

Executive Summary:
Internship training program provides a chance to students to make themselves Familiar with
the actual business environment. It also provides an opportunity to study the theories of book
in practice. So The Department of Commerce, The Islamia University of Bahawalpur (Sub
Campus Bahawalnagar) requires every student of MSC Accounting Finance to go through
training for practical exposure as trainee. After completing the internship, it is required to
write an internship report, covering all aspects of that organization this report is written on
Bank al falah Limited.
I have tried my best to collect all the relevant information and facts related to Bank Al
Falah Limited Haroonabad Branch operations functions and tasks to gain knowledge. So this
report is the result of my internship in Bank Al Falah Limited in Haroonabad Branch.
This internship report briefly explains the functions which are being performed at
Bank al Falah Limited. Bamk al falah limited operates 471 domestic branches.

INTERNSHIP REPORT-2015

CHAPTER 1
INTRODUCTION

INTRODUCTION OF BANK
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INTERNSHIP REPORT-2015

WHAT IS BANK:
In simple word, we can say that bank is a pipeline through which money moves into and out
of circulation. Bank accepts deposits and repays cash to its customers on demand. The bank
borrows money at a lesser rate of interest and lends it to the borrower at a higher rate. The
difference between high and low rate of interest is called bank.

HISTORY OF BANK AL FALAH LIMITED:


Bank Al-Falah Limited was incorporated on June 21st, 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 more than 500
branches in more than 100 cities, with the registered office at B.A.Buildings, I.I.Chundrigar,
Karachi.
The main strength of this bank is to driven by the strategic goals set out by its board of
management; the Bank has invested in latest technology to have an extensive range of
products and services. At that time the bank al falah is in the competitive position to meet the
customers basic and demanded requirement.
Bank Al-Falah limited was incorporated on June 21, 1992 as a public limited Companies
Ordinance 1984
The strength and standing of Abu Dhabi Group, principal owners have helped Bank Al-Falah
Limited and launch high quality consumer and corporate banking operation in Pakistan. We
are headed towards an optimum sized network reaching major urban centers in Pakistan and
soon to go International.
ATM machines locations have been increased in most of the branches but still need to expand
their network in every branch and collaboration with other commercial banks in ATM
services. It is also introducing a new and more advanced and latest funds settlement
computerized 2002. This is a strong point of Bank al Falah that makes it a highly
technological oriented bank.

INTRODUCTION OF BANK ALFALAH:


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Bank Alfalah is most of the emerging bank in Pakistani banking market. That organization
offers the different type of products and services according to the current market
environment.
ATM machines have been increased in most of the branches but still need to expand their
network in every branch of Bank Alfalah. It is also introducing a new and more advanced and
latest funds settlement through computerized. It is a strong point of Bank al Falah that makes
it a highly technological oriented bank.
Bank al falah has many opportunities in future to increase the volume of business because it
has options to capture the market through (Al-Falah Car Financing, Al-Falah Visa, & also AlFalah Home Finance etc.) Bank al falah has been performing very well from the starting time.
All financial institutions of Pakistan relating to commercial banking concerns give Bank AlFalah Ltd as a leading bank in domestic market sector.
Through SWOT analysis we have found that Bank al falah has competitive advantage over
other banks and it wants to capture the prospects of foreign banks to achieve long-term
objectives of the bank.
INTRODUCTION:
Type

private

Industry

banking capital market

Founded

21 June 1997 in Karachi

Key people

h.h sheikh hamdan bin Mubarak alnahayan

Head office

Karachi Pakistan

Product

loan, credit card, saving, consumer banking etc.

Revenue

PKR 55.378billion in 2014

Net income

8.513 billion

Slogan

way forward

Website

www.bankalfalah.com

No of employee

7785 in 2014

Branches

471

OBJECTIVES OF BANK AL FALAH:

INTERNSHIP REPORT-2015

Objectives can be defined as specific results that an organization seeks to achieve in pursuing
its basic mission. Objectives are essential for organizational success because they state
direction.
Bank Al-falah Limited objectives are as follows:

To create maximum economic value for shareholders


Main focus on financial services
Leveraging Bank al falah Investments in the IT field.
Ongoing assessment of opportunities for customers, leading to the constant
development of new products and services.
Promote industrial, agricultural and economic processes through the active
participation of private and public sector in the country

BRANCH NETWORK:
Bank al Falah limited has 471 branches in 165 cities of Pakistan. The network is
divided into different regions.

CHAIRMAN MESSAGE:
Starting off with just a handful of branches in 1997, today Bank Alfalah operates steadfastly
with a vast footprint in order to provide creative, customized financial solutions to over 1
million consumers, corporations, institutions and governments. Our top most priority is to
meet the changing financial needs of our diverse range of customers our service philosophy
entails the fact that our success will follow if our clients are served well. We remain
committed to this goal and hence continually seek to introduce customized financial solutions
in Pakistan and beyond. I am confident that Bank Alfalah will remain at the forefront of the
evolving financial services landscape in Pakistan in order to serve our clients even better.
With the support of all our stakeholders, we hope to promote a workplace environment where
we take responsibility for our actions and promote respect, inclusiveness and uncompromised
integrity most importantly, create a Company which can survive through good times and
bad.

MANAGEMENT ORGANIZATION:
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Chair Man

Boar of Director

Chief Executive Officer

Executive Incharge

Area Manager

Area Manager

NORTH

SOUTH

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BOARD OF DIRECTORS
At the top of the human resource hierarchy sits the Board of Directors and Executive
Committee. The most important task of this level of management is strategic planning,
determining the goals and objectives and to formulate the policies.

Chairman- Sheikh Hamdan


Bin mubarik al nahayan

Director-Abdulla Nasser
Huwaileel Al-Mansoori

Director-khalid mana
Mr.Eftratios Saeed al utaiba

Director-Abdullah khalil
al mutawa

Director-Mr Khalid Qureshis

Director & C.E.Os.


Atif Bajhwa

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Director- Mr.Kamran
Y. Mirza

DirectorGeorgios Arapog

INTERNSHIP REPORT-2015

MANAGEMENT OF BANK AL FALAH


Mr. Atif Bajwa

President & Chief Executive Officer

Mr. Bahauddin Khan

Chief Operating Officer

Mr. Mirza Zafar Baig

Chief Financial Officer

Mr. Suhail Yaqoob Khan

Chief Risk Officer

Mr. Aly Mustansir

Chief Marketing Officer

Mr. Rizwan Ata

Group Head, Islamic Banking

Mr. Faisal Farooq Khan

Group Head, HR & Learning

Mr. Khurram Hussain


Ms. Mehreen Ahmed
Mr. Saad ur Rahman Khan
Mr. Bashir Ahmed Sheikh

Group Head, Retail Central, North


and Consumer Banking
Group Head, Retail South & New Initiatives
Group Head, Corporate, Investment
Banking & International Business
Group Head, Special Assets Management

Mr. Yasar Rashid

Group Head, Audit & Inspection

Mr. Syed Ali Sultan


Institutions
Mr. Mian Ejaz Ahmed

Group Head, Treasury & Financial

Mr. Riaz Hussain Hamdani

General Manager, Legal Affairs & Company


Secretary
Chief Compliance Officer

Mr. Imran Zafar

Head, Merchant Banking

Mr. Khawaja Muhammad Ahmad

General Manager / Head, Operations

Mr. Aasim Wajid Jawad

Head, Strategy

BOARD OF ADVISORY COMMITTEE:

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Mr. Khalid Mana Saeed Al O taiba


Mr. Abdulla Khalil. Al-Mutawa
Mr. Ganpat Singhvi
Mr. Bashir A. Tahir
Mr. M Iftikhar Shabbir
MR. Sirajuddin Aziz
MR. Hamid Ashraf
Mr. Zahid Ali H. Jamal

Director
Director
Member
Member
Secretary
Chief Operating Officer
Company Secretary
Chief Financial Officer

INTERNSHIP REPORT-2015

CHAPTER

FINANCE DEPARTMENT

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FINANCE:
Finance is the art of raising and spending money. The finance department of Bank Al Falah
provides the following different services.

AGRI FINANCE:
Products
Bank Alfalah offer following wide range of Agri Finance Products to encourage farmers to
increase agriculture production.

Alfalah Paidawari Zarie Sahulat


Alfalah Masalas Zarie Sahulat
Alfalah Tractor and Transport Zarie Sahulat
Alfalah Machinery & Equipment Zarie Sahulat
Alfalah Islah-e-Araazi Zarie Sahulat
Alfalah Dairy & Livestock Zarie Sahulat
Alfalah Lease Zarie Sahulat

Eligibility:

Applicant is an individual /entity engaged in Agri activities


The applicant is not a defaulter of the banking system
Applicant must be able to produce proper securities..
The minimum and maximum age shall be 18 years and 65 years respectively

ALFALAH CAR FINANCE:


Eligibility
You can get a car loan form Bank Al falah and purchase a new car;
Pakistani National Identity Card holder.
Over 20 years of age (Maximum 60 years in case of salaried and 62 in case of a
business person at the time of maturity of the loan).

Benefits and Features


Quickest processing
No hidden charges
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INTERNSHIP REPORT-2015

Minimum down payment


Complete repayment at any point of time
Tenure period ranging from 1 to 5 years
Financing of all brand new locally assembled vehicles and used cars

ALFALAH HOME FINANCING


Build Your Home:
You own a plot but need capital to construct a
home, We will provide up-to 100% of the
construction cost enabling you to say good-bye to
rent forever. Even if you don't own plot, we will
provide up to 60% of the value of the plot that you
have selected to purchase.

Buy Your Home


With this facility, We will provide you up to 80% of the purchase price of the
property, so that you can realize your dream and enter the reality of owning a home. Payment
period ranges from 3 to 20 years.

Repair or Enhance your home


You already own a home, but need extra working for a growing family. Simply apply
for financing of up to Rs. 3.50 million or 40% of the value of your home and get yourself
the extra space.

Eligibility Criteria
You can apply for Bank Alfalah Home Finance

If you have a Pakistani Nationality


If your age is between 23 and 60 years at the time of application. (Subject to maximum

age of 65 at the time of maturity).


If you are in continuous employment in a permanent position for the last 2 years or more
If you have existing 3 years (or more) of business or professional experience
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INTERNSHIP REPORT-2015

If you have been a Bank Alfalah borrower for past one year with clean payment record.

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CHAPTER

ACCOUNTS DEPARTMENT

ACCOUNTS DEPARTMENT
One of the basic functions of a commercial bank is to receive deposits and to honors cheques.
Accounts offered by the banks for the deposits of customers constitute the basis of their
operations and develops the basic relationship between a banker and customer.
METHOD FOR OPENING THE NEW ACCOUNT
Record opening structure
At the point when a client comes to open a account in the limb he is given a printed
structure, to be filled by him. This comprises of full name, address, and date of conception,
occupation, phone number, and N.i.d. card number.
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Ensured by the current account holder


At the point when the new account holder satisfies all the prerequisites then he is
asked to provide for some current account holder ensure, so that in future the new account
holder may not misrepresentation with the bank.
Signature example card
The bank to get approved signature of the client as example for staying away from
any future inconsistency gives Customer. (Example is encased).
Check book demand slip
It is a slip filled by the customer for issuance a check book with specific number of
leaves as fancied by a client. According to the appeal of client bank charged the account for
Check book issuance charges. Within 4-7 days customer can get his Check book from limb or
specifically dispatched by head office to its street number. (Example is encased)
Bank Alfalah has formulated a number of accounts for the deposits of customers, with unique
features, to facilitate them.

CURRENT ACCOUNT:
No interest for checking account.
Minimum account opening requirement for Rs.1000 only.
Free debit card can be used to withdraw cash.
No restriction on number of withdrawals and on number of deposits
If the amount the balance is less than the minimum requirement i.e. Rs. 10,000, in a
given month, service charges of Rs.100 will be charged on monthly basis.
Zakat is deducted annually on first Ramazan.

NOTE: However, in above condition, the person, if he is Govt Employee or student, then
required to submit the application for non-deducting of charges after which these service
charges are not deducted.

PROFIT AND LOSS SAVINGS ACCOUNT:


Minimum account opening requirement of Rs. 5,000 only.
No restrictions on withdrawal and a deposits in the day
Profit on saving accounts is credited to the customer account on half-yearly basis.
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Free debit card can be used to withdraw cash.


If the amount of balance is less than the minimum requirement i.e. Rs. 5,000, in a
given month, service charges of Rs.50 will be charged on monthly basis.
Zakat is deducted annually on the balance on first Ramazan.
NOTE: However, in above condition, the person, if he is Govt Employee or student, is
required to submit the application for non-deducting of charges after which these service
charges are not deducted.

TERM DEPOSIT:
Term deposit is a fixed PLS account where the profit rates increase with the term of deposits
as:
Term Deposits (for individuals)

Rate

1 Month

4.50%

3 Month

5.00%

6 Month

5.25%

1Year

5.50%

2Year

6.00%

3Year

6.50%

4Year

7.00%

5Year

7.50%

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

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AL FALAH KIFAYAT:
Any Pakistani resident over the age of 18 can open this account. This account is for
individual/joint customers only. Other customers like companies, corporate etc. are not
eligible for opening of this account.
Minimum balance requirement for opening this account is Rs. 10,000/- with a
maximum of Rs.1, 000,000/ Three debit transactions are allowed in a month either through cheques or Debit Card
The bank will issue the first cheques book of 25 leaves and a Debit card free of cost.
Profit will be calculated on monthly minimum balance basis and will be credited in
the account on quarterly basis. No profit shall be payable for a particular month.
Only one account per customer will be allowed across all branches of Bank Alfalah.

ALFALAH MAHANA AMDAN:


This term deposit will provide an opportunities to indviduals.This facility is not available for
business and corporate customers.
Some salient features of Alfalah Mahana Amdan:
Minimum placement limit is Rs. 100,000/- and maximum placement limit is Rs.15,
000,000/-.
Expected Rate of profit is 10% per annum (as per PLS governing rules).
Profit will be automatically credited on the 1st working day of each month into
customers Current/PLS/RP account.
Customer can avail financing facility up to 90% of the deposit (as per banks policy).
Any Pakistani resident over the age of 18 can open this account.

ALFALAH EDUCATION:
Alfalah Education is a Term Deposit product with no Additional Cost education insurance
cover for account holders with school going children. Alfalah Education Account offers
tuition fee reimbursement of children for 15 years of schooling in the unfortunate event of the
death (either through accident, illness or natural causes) of the main breadwinner (account
holder) parent.

Features:

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Deposits can be placed in multiple of 100,000 units with maximum 3 units allowed
per depositor, i.e. a maximum deposit per customer of Rs. 300,000 across all
branches.
All 3 units can be purchased for 1 child or each for up to 3 children.
No evidence of insurability (medical examination/health decoration) is required.
The product will be offered as a 1 year term deposit at upto 7 % profit to be paid at
maturity
Regular Zakat and WHT would apply on the deposit

ALFALAH HILAL CARDS:


Bank Alfalah Limited presents Debit Card which gives you unlimited access to your current /
savings account with a simple swipe at millions of retail shops and ATMs worldwide.
The Alfalah Hilal Card can be used electronically at any retail outlet or ATM that accepts
VISA cards and displays these logos:
Insert your Alfalah Hilal Card in the ATM slot.
Enter your ATM PIN
For ATMs that provide you the Account Select facility requesting you to specify the
kind of account you want to access
Cash withdrawal
Balance inquiry
Immediate payment
Online fund transfers
Change pin code

ALFALAH CREDIT CARD:


Just go into branch and receive your credit card

No Joining Fee
Join Alfalah VISA without paying any joining fee.
No Annual / Renewal Fee
Alfalah VISA is the only credit card in Pakistan with no annual or renewal fee.
Cash Advance Facility 75% of Credit Limit

Now you can avail Cash Advance Facility up to 75% of your available credit limit. Enjoy the
benefits of this exclusive offer on your Bank Alfalah Credit Cards. You can get cash from
Alfalah ATMs.
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INTERNSHIP REPORT-2015

Step By Step (SBS) Plan:


Now you can convert any transaction amount of Rs. 3,000/= and above, to a Step-By-Step
payment plan. It gives you the flexibility to convert your large payments into small equal
installments of 3,6,12,18,24,30 and 36 months tenures at the time of transaction.
the following transaction is only transfer to step by step;
Retail Transactions (Domestic & International)
Cash Transactions (Domestic & International
Balance Transfer Transactions

COMPETITORS:
Bank Alfalah is a private commercial bank so the major competitors of Bank Alfalah are as
under;

Muslim Commercial Bank


Standard chartered
Soneris Bank Ltd
Prime Commercial bank
The bank of Punjab
Bank Al-Habib Ltd
Allied bank Ltd
Faysal Bank Ltd
United bank Ltd

Division of Bank Alfalah:


Bank Alfalah has two divisions
Islamic Banking Division
Conventional banking division

FINANCIAL HIGHLIGHTS:
Bank Alfalah has grown 51.84% in its total assets and 101.35% in its equity. The Bank netted
record pretax profit of Rs. 3.506 billion, a 291.85% increase over the corresponding years to
2004, which includes capital gains on Federal Government securities of Rs. 2.19 billion. The
deposits of the Bank rose to Rs. 76.7 billion which is 48.4% higher than corresponding period
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last year (2004) and indicative of increasing customers confidence in your Bank, because of
its superior services and healthy practices. The Loans and Advances figure stood at Rs. 50.37
billion, an increase of approximately71% over the last financial year (2004)
The profit after taxation for Bank Alfalah in 2008 amounted to Rs.1, 301 million and its total
assets for 2008 amounted to Rs.348, 990 million. The overall performance of BAL is
decreased in 2008.

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CHAPTER 4
CASH DEPARTMENT

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Cash Department
It provides its user the following facilities.

Accept Deposit
At the point when a client needs to store any sum in its record it goes to the pertinent
officer who acknowledge store and give a receipt to the client. The clerk in clerk long book
enters the sum saved by the client on its credit side.

Collection of Utility Bills


The limb likewise gives the office of service bills accumulation of power, gas and
phones. The limbs gather service Bills amid keeping money hours. Bills can be paid through
money or check. In real money division I learnt how to make installments on checks,
acknowledges stores and gathering of service bills. The gatherings to check must be
considered while acknowledging the individual who is requesting for installment, the bank
who need to pay the sum lastly the payee who is accepting the installment. The check is the
most imperative, helpful and settled medium of cutting edge managing an account utilized for
withdrawal of stores and settlement of obligations by a record holder i.e. a drawer. While
taking checks from clients the check of marks must be remembered be checked as indicated
by the mark card. I watched that when check is presented it is regulated on know the impact
of posting and if the check is "alright" it is sent to the clerk for installment. Furthermore,
when a client needs to store any sum in its record it goes to the applicable officer who
acknowledge store and give a receipt to the client. I realize when a client needs to store any
sum in its record it goes to the pertinent officer who acknowledge store and give a receipt to
the client. The clerk in clerk long book enters the sum stored by the client on its credit side.
An alternate office gave to clients the service bills gathering of power, gas and phones. The
bank gathers service Bills amid managing an account hours. Bills can be paid through money
or check.

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CHAPTER 5
MARKETING DEPARTMENT

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MARKETING:
The set of marketing tools that the firm uses to pursue its marketing objectives in the
target market.

TARGET MARKET
The targeted market of bank Alfalah is unilever Pakistan, sugar mill, coca cola, haleeb foods
industries and fauji fertilizer all of these is the major contribute in the GDP of Pakistan. Bank
Alfalah is one of the major banks to maintain the bank accounts of these above companies.
The major customer of bank Alfalah is business men, factories, petrol pumps, CNG Station,
flour mills, cotton finning and ghee mills and many others.

FOUR PS OF MARKETING:
Marketing is a Combination of Four Ps: Product, price, place and promotion.
BAL four Ps are given as under:

Description
Product/Service
Price

Different Service Provided by Bank


Interest Commission and Bank Charges
Received

Promotion

Promotion of Services Through Advertisement

Place

Outlets of Services i.e. Network of its Branches

PRODUCT:
Bank Alfalah presents a range of quality services to its reputable customers. Bank Al
Falah provides a wide range of products/ services to its customers.

PRICE:
The amount of money the customers pay for the product of a company.
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PROMOTION:
All activities that a company undertakes to communicate and promote its products.

PLACE:
The activities a bank undertakes to make products and services easily available or
accessible to the customers.

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CHAPTER 6
INTERNAL AUDIT
DEPARTMENT

INTERNAL AUDIT DEPARTMENT:


The important functions of the Internal Audit Department are as under:31

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The Implementation of the Charter of the Internal Audit Department issued by the
State Bank of Pakistan.
Preparation of Audit plan in consultation with Management & Audit Committee
Caring out annual inspection of offices Departments of the Bank of the Bank in the following
operations:

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Banking and Accounting related matters.


Exports Refinance.
Foreign Exchange operations.
The currency management and chest related matters.
Engineering and mantinance
Administrative matters.
Establishment and co-ordination with Internal Audit
Co-ordination with field offices and departments in finalization
and submission of the objections raised by Directors Commercial
Audit.
The impletation any special task or project requested by the
Managing director and Audit Committee.
Implementation of Risk based Audit.\Audit training of Existing
Staff.
Independent assessment on the adequacy and effectiveness of the
Banks processes.
controlling its activities & managing its risks in all areas on an
annual basis.
Submission of Audit Briefs to the Audit Committee on significant
issues &Recommendations for improvement in the Banks control
processes.
Coordination with external auditors & overview of other control
& monitoring functions.
Rationalization of manpower & cost of Internal Audit Department

INTERNSHIP REPORT-2015

CHAPTER 7
MY INTERNSHIP PLAN

MY WORKING IN BANK ALFALAH:


As stated earlier, I joined Bank Alfalah for the purpose of internship. I have worked here as
an internee for six week. During my stay of two months I have worked in different
departments. In these departments, I was assigned different jobs, which helped me gain some
practical experience.
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I had to report at 9.00 am. If I was late for 3 days, I would be fired. It was implementing for
the other entire employees. The bank timings were 9.00 am to 5.00 pm for all other
employees, but I am thankful to the manager for relaxations me and I was allowed to leave at
3.00 pm.
The overall staff was quite cooperative and friendly, and everyone treated me very well. But
at the same time, there was a very strict policy about punctuality as well as discipline.
The Following are the departments in which I have worked;

1) REMITTANCE DEPARTMENT:
The next 7 days of my internship were in the remittance department. Here, my duty was to
remit amounts. I was responsible for remitting amounts to different accounts, which were
received from foreign countries.
Demand Draft
Telegraphic Transfer
Payment Order

2) ACCOUNTS DEPARTMENTS:
I worked for two week (14 days) in accounts department, here i duty to open the new
accounts and fill the deposits slips. i also work for maintaining the ongoing accounts
Secondly I was assigned the duty of opening new public accounts. I opened a number of new
accounts during my working period of internship.

3) CUSTOMER SERVICES DEPARTMENT:


I passed my next 07 days in the Customer Services Department. Here I was given a telephone
line and I had to attend phones and guide people as well as transfer calls to different
departments and also giving information about Bank Al Falah services.

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Account opening
Account closure
Balance conformation
Statement of Accounts
DD application
Stop Payment Request
Information about Deposit Schemes
Cheques book requests etc.

INTERNSHIP REPORT-2015

4) CREDIT OPERATIONS DEPARTMENT:


In credit operation section of Bank al falah, the loans are advance by the bank to its
customers. When consumers desire loan to finance a big project, bank ask them to provide
viability report of that project in order to make sure safe return of loan.

35

INTERNSHIP REPORT-2015

CHAPTER 8
FINANCIAL STATEMENT
ANALYSIS

Horizontal Analysis of Balance Sheet


This technique is also known as comparative analysis. Dollar or percentage change in
financial statement item from one period to the next. It measures the percentage change in the
amount of one period to next.

36

INTERNSHIP REPORT-2015

(Amount in %)
Assests
Cash & Bank Balances
Balance with other banks
Lending To Financial Institution
Investment
Advances
Operating Fixed Asset
Deferred Tax Asset
Other Assets
Total Assets
Liabilities
Bills Payable
Borrowing
Deposit & other Account
Sub-Ordinate Loan
Liabilities Against Asset
Deferred Tax Liability
Other Liabilities
Total Liabilities
Net Assets
Share Capital
Reserve
Unappropriated Profit
Surplus On Revaluation of Assets
Total

2012
100
100
100
100
100
100
100
100
100
100
100
100

100
100
100
100
100
100
100
100

2013

2014

105
130
287
115
111
107
313
123
113

87
46
208
171
124
114
0
235
138

113
108
114
170
83
114
105
100
129
114
79
105

139
260
132
169
106
137
148
117
218
146
153
148

Vertical Analysis of Balance Sheet


For a single financial statement, each item is expressed as a percentage of a significant total,
e.g., items of balance sheet is showing the percentage of total assets and total liabilities.
37

INTERNSHIP REPORT-2015

(Amount in %)
Assets
Cash & Bank Balances
Balance with other banks
Lending To Financial Institution
Investment
Advances
Operating Fixed Asset
Deferred Tax Asset
Other Assets
Total Assets
Liabilities
Bills Payable
Borrowing
Deposit & other Account
Sub-Ordinate Loan
Liabilities Against Asset
Deferred Tax Liability
Other Liabilities
Total Liabilities
Net Assets
Share Capital
Reserve
Unappropriated Profit
Surplus On Revaluation of Assets
Total

2011
10.81969
4.980923
0.163453
35.32125
43.60632
2.562605
0.071691
2.474065
100

2012
10.01013
5.685711
0.412481
35.93072
42.65098
2.426322
0.196916
2.686741
100

2013
6.7977
1.65943
2.46438
43.6425
39.1046
2.11809
0
4.21336
100

1.665466
4.193407
90.30053
1.160513

1.646774
3.988623
90.68202
1.723995

1.6838
7.90952
86.7758
1.43017

0
2.68008
100
44.60404
18.63482
21.6932
15.06795
100

0
1.958589
100
42.29099
22.80196
23.50916
11.3979
100

0.1222
2.07853
100
35.4145
27.5285
21.4493
15.6077
100

HORIZONTAL ANALYSIS OF PROFIT AND LOSS STATEMENT


(Amount in %)
Year
Mark-up / return / interest earned
Mark-up / return / interest expenses
38

2012

2013

2014

100
100

95.4017757
98.4224505

120.1792004
121.8361264

INTERNSHIP REPORT-2015

Net mark-up / interest income


Provision Against non-performing Loan
(Reversal) Provision for Consumer Loans
Provision for Diminution in Investment
Recoveries Against Dad Debts
Total
Net Mark-up After Provision
Non Markup Income
Fee and Commission
Dividend Income
Income in Foreign Currencies
Gain/Loss on sale of Securities
Unrealized (loss) on revaluation of
Investment
Other Income
Total Non-Markup Income
Total
Non Markup/Interest Expenses
Administration expense
Other Provision
Other Charges
Total Non-Markup Expenses
Net Balance
Share of Profit/Loss of Association
Extraordinary/Unusual Items
Profit Before Taxation
Taxation (Current)
Prior Year
Deferred
Total Taxation
Profit After Taxation

100
100
100
100
100
100
100

90.9308745
51.6388924
5.54747012
368.38488
29.6090635
105.457925
29.6090635

117.726784
78.3285683
5.02664684
0.429553265
43.10297055
135.4050607
43.10297055

100
100
100
100
100

110.39706
138.247183
117.263838
119.645708
560.225017

122.9949971
141.0492722
155.9862809
79.68125
10595.49967

100
100
100

106.043791
113.697396
108.147935

123.1439328
124.1040935
131.715539

100
100
100
100
100
0
0
100
100
100
100
100
100

113.711774
-147.94699
89.1148343
111.554507
100.353948
0
0
100.353948
76.3968976
68.75
21.0723503
95.6975072
102.630066

133.2620825
364.0024332
99.72406528
134.4280358
125.5095455
0
0
125.5095455
99.38263648
-24.011875
38.18300328
128.9901445
123.8081912

2011

2012

2013

100
59.6790
5
40.3209
5

100
61.56865

100
60.5018

38.43135

39.4982

VERTICAL ANALYSIS OF PROFIT AND LOSS STATEMENT


(Amount %)
Year
Mark-up / return / interest earned
Mark-up / return / interest expenses
Net mark-up / interest income

39

INTERNSHIP REPORT-2015

Provision Against non-performing Loan


(Reversal) Provision for Consumer Loans
Provision for Diminution in Investment
Recoveries Against Dad Debts
Total
Net Mark-up After Provision
Non Markup Income
Fee and Commission
Dividend Income
Income in Foreign Currencies
Gain/Loss on sale of Securities
Unrealized (loss) on revaluation of
Investment
Other Income
Total Non-Markup Income
Total
Non Markup/Interest Expenses
Administration expense
Other Provision
Other Charges
Total Non-Markup Expenses
Net Balance
Share of Profit/Loss of Association
Extraordinary/Unusual Items
Profit Before Taxation
Taxation (Current)
40

4.01158
5
3.70841
2
0.00252
6
7.72252
2
32.5984
3
7.72252
2

2.171383

2.61461

0.215639

0.15511

0.009754

9E-06

2.396776

2.76973

36.03458

36.7284

5.50503
8
0.75751
2
2.84224
2
2.88195
0.00327
9
3.81152
6
15.8015
5
48.3999
8

6.370322

5.63402

1.097715

0.88906

3.493565

3.68908

3.614324
0.019256

1.91079
0.2891

4.236699

3.90555

18.83188

16.3176

54.86646

53.046

32.9949
3
0.23545
8
0.44907
4
33.6794
6
14.7205
2
0
0
14.7205
2
6.81839

39.32748

36.5868

-0.36514

0.71316

0.41948

0.37264

39.38182

37.6726

15.48464

15.3734

-0.0118
0
15.48464

0
0
15.3734

5.460107

5.63849

INTERNSHIP REPORT-2015

Prior Year
Deferred
Total Taxation
Profit After Taxation

1
0.34722
1.63808
4.83308
4
9.88743
3

-0.25022

0.06938

-0.36182

-0.52045

4.848066

5.18742

10.63657

10.186

RATIO ANALYSIS:
Ratio is a simple mathematical representation of relationship of one item to another.
Following are the ratios which are necessary to measure the performance of a financial
institution.

Earning Assets to Total Assets


Total
Assets

Earning Assets

Results

2012
199,477,762

536,466,694

37.18362467

611,427,624

36.89154728

743,128,293

44.98637142

2013
225,565,111

2014
334,306,454

Interest Margin to Earning Assets


Interest Margin
41

Earning
Assets
INTERNSHIP REPORT-2015

2012
46079918

199,477,762

23.10027822

225,565,111

19.48929948

334,306,454

16.56518333

2013
43,961,060

2014
55,378,477

Loan Loss Coverage Ratio


pretax Income & Provision for loan
Losses
Net Charge-offs
2012
8,631,737

1,164

741558.1615

4,288

181011.5205

199229940

536,466,694

22.18689778

611,427,624

19.3211223

743,128,293

19.81695898

2013
7,761,774

2014
9,961,497

Equity Capital to Total Assets


Total
Assets

Total Equity
2012
119,025,317

2013
118,134,679

2014
147,265,429

42

INTERNSHIP REPORT-2015

Deposits Times Capital


Total
Equity

Total Deposits
2012
21,227,834

119,025,317

17.83472167

118,134,679

19.56673705

147,265,429

37.50569049

2013
23,115,102

2014
55,232,916

Loans to Deposits
Total
Deposits

Total Loans
2012
233,933,358

21,227,834

1102.012377

23,115,102

1128.179534

55,232,916

526.130536

2013
260,779,850

2014
290,597,237

43

INTERNSHIP REPORT-2015

CHAPTER 9
SWOT AND PEST
ANALYSIS
44

INTERNSHIP REPORT-2015

SOWT ANALYSIS:
SWOT stands for Strengths, Weakness, and Opportunities and Threats which business facing.
The SWOT analysis is a broad and critical overview of the operations, actions, comments and
conventions, services and other related activities the analysis of the Bank Al Falah Limited
Haroonabad. Bank Al Falah has extremely effectual system of branches all over the state.
Bank Al Falah not just has made investment in commerce other than too in small level
industry as well.
STRENGTHS:
Bank Alfalah is considered to be a very sound bank in the financial circles. A bank where the
customers can safely keep their money as long as they want. I am pointing some of the major
strengths of the bank.
Location
Goodwill & trust
Foreign trade business
Wide branch network
The computerized system
Appointed highly capable people
Latest technological instrument

45

INTERNSHIP REPORT-2015

WEAKNESSES:
Perfection is only the claim of Allah Almighty. No other being living or dead
can say this for itself. Similarly, Bank Alfalah also has some short comings that need to be
mentioned:
Advertisement
Problems of employees
Problems of employees
No entertainment facility available for clients

OPPORTUNITIES:
Bank Alfalah has grown up its business with a very high pace and it has got tremendous
popularity, even with in a very short span of time. There are many opportunities for the bank
and by availing that it can stand amongst the top foreign banks.
Information technology
Extension of branch network
Growth in deposits

THREATS
Economic conditions
Competitors
Policies of statement
The SWOT analysis of the bank signifies that its strengths overcome its weaknesses and its
opportunities are more than its threats. This is a positive sign for any organization

46

INTERNSHIP REPORT-2015

PEST ANALYSIS:
PEST stands for Political, Economic, Social and Technological. A examine of the outside
macro environment in which the firm operate be able to expressed in the subsequent factors.
By analyzing these factors we enable to identify external factors which affect the business of
the bank.

Political factor
Economic factors
Social factors
Technological factors

POLITICAL FACTORS:
Political factors also remain in the attention during the year. Although the political situation is
liable to remain unstable for a while we suppose law and order situation is the
most significant medium of its power on the economic activity. Political factors might also
contain goods & services which the government desires to give or be provided (merit goods)
& those that the government does not want to be provided. Privatizing, deregulation and
focus on foreign investment is the main pillar of economic policies of all the most important
party. State Bank of Pakistan is the regulatory body in the banking sector. The decision made
by the State Bank of Pakistan heavily affects the business of bank.

ECONOMIC FACTORS:
The economic factors can also affect the business of the bank. Economic indicator includes
GDP, inflation, balance of payment, debt of the government. Pakistans economy
has observer the most complicated era after posting six successive years of healthy financial
development. The saving capacity of people is declining day by day through inflation. Interest
rate can also effect on banking business sometimes interest rate is very high and economy
move to negative figures.

SOCIAL FACTORS:
Social factors similar to values, demographic characteristics such as age,
gender etc. are also disturbing Bank al falah as well as the bank division.
For the reason that of these morals some professional dont desire to
47

INTERNSHIP REPORT-2015

connect banking section, & some people dont remain their funds in the
banks, for the reason is that of religious believes. Bank al falah has
misplaced many clients because of this reason due to move from Islamic
banking to conventional banking. Now the bank has the Islamic banking
system for its clients.
TECHNOLOGICAL FACTORS:
The bank sustained its strategy of improvement technology to assemble up the challenge of
up to date banking. With the successful accomplishment of new central database system bank
is in the last stages of completion of prediction Financials that will give it important role in
all these sectors. As the new technologies introduced Bank al Falah implement those
technologies in their operations. On line banking and ATMs are also launched in the Bank Al
Falah.

CHAPTER 10
RECOMMENDATION
48

INTERNSHIP REPORT-2015

RECOMMENDATIONS:
In bank al falah limited ghalla mandi branch Haroonabad I worked 6 week internship training
program. That is my first practical experience in any organization; I feel very happy and work
as regular employee of bank al falah. Before I have few knowledge about banking sectors.
but now, through this practical training I have gain important knowledge, who give me
benefit in upcoming professional life.
Finally, we are giving some suggestions for Bank Alfalah Limited. These suggestions are
based on our experience with bank.
I suggest that to conduct the employees training course on regular basis.
Increase in cash officer due to customer satisfaction for save time.
Encourage the new and existing customers for avail the new products and services of
bank al falah.
Lockers, ATM, credit card, traveler cheques all these facilities should be provided to
attract more customers.
More focus on marketing department
Enhance the computer networking services and adopt the latest technology
The critarea of appointment the new employee must be well defined.
To improve the working relationship and environment between the employees.
The promotion of the employee must be on work performance and experience basis.

49

INTERNSHIP REPORT-2015

CHAPTER 11
CONCLUSION

50

INTERNSHIP REPORT-2015

CONCLUSION:
I would like to conclude it no organization is free of problems or do not face any problem
while performance in operation. So the management of bank al falah is taken to step
overcome these problems and taking sensible step to compete the current market trend.
BANK ALFALAH under the leadership of Sheikh Nahayan Mubarak Al-Nahayan has made
significant in building of strengthening both the corporate and retail banking sectors in
Pakistan.
The people of bank innovation, creativity, reliability, customized services and their execution
are the key Factors for their future growth. Based on this approach, They are aware that they
have stepped into the 21st century and they must meet its challenges by acquiring the highest
levels of Technology.
They say that they will invest in the modern tools and substantial allocation of resources will
be made to achieve this objective during the current years.
Their focus would be to constantly seek out growth opportunities through increased quality
assets and by offering a wider range of products and services to their esteemed customers.
There are significant growth opportunities for BANK ALFALAH and they are confident in
their ability to grasp them. They are committed to enhancing the shareholders value and look
forward with greater optimism to a prosperous future for BANK ALFALAH.

51

INTERNSHIP REPORT-2015

TABLE OF ANNEXURES

Balance Sheet
Rs 000
Assets
Cash & Bank Balances
Balance with other banks
Lending To Financial
Institution
Investment
Advances
Operating Fixed Asset
Deferred Tax Asset
Other Assets
Total Assets
Liabilities
Bills Payable
Borrowing
Deposit & other Account
Sub-Ordinate Loan
Liabilities Against Asset
Deferred Tax Liability
Other Liabilities
Total Liabilities
Net Assets
52

2012
58,044,054
26,720,993
876870

2013
61,204,697
34,764,008
2522022

2014
50,515,643
12,331,713
18,313,485

189,486,762
233,933,358
13,747,520
384,601
13,272,536
536,466,694

219,690,369
260,779,850
14,835,200
1,204,000
16,427,478
611,427,624

324,319,454
290,597,237
15,740,100

8,430,910
21,227,834
457,118,723
5,874,742

9,543,480
23,115,102
525,525,770
9,991,000
11,350,528
579,525,880
31,901,744

11,758,155
55,232,916
605,963,224
9,987,000
853331
14,514,599
698,309,225
44,819,068

13,567,083
506,219,292
30,247,402

31,310,661
743,128,293

INTERNSHIP REPORT-2015

Share Capital
Reserve
Unappropriated Profit
Surplus On Revaluation of
Assets
Total

13,491,563
5,636,549
6,561,628
4,557,662

13,491,563
7,274,222
7,499,831
3,636,128

15,872,427
12,338,026
9,613,374
6,995,241

30,247,402

31,901,744

44,819,068

Profit and loss account:


Rs.000
Year
Mark-up / return / interest earned
Mark-up / return / interest expenses
Net mark-up / interest income
Provision Against non-performing Loan
(Reversal) Provision for Consumer Loans
Provision for Diminution in Investment
Recoveries Against Dad Debts
Total
Net Mark-up After Provision
Non Markup Income
Fee and Commission
Dividend Income
Income in Foreign Currencies
Gain/Loss on sale of Securities
Unrealized (loss) on revaluation of
Investment
Other Income
Total Non-Markup Income
Total
Non Markup/Interest Expenses
Administration expense
Other Provision
Other Charges
Total Non-Markup Expenses
Net Balance
53

2012
46079918
27500056
18579862
1848535
1708833
1164
3558532
15021330
3558532

2013
43,961,060
27,066,229
16,894,831
954,563
94,797
4,288
1,053,648
15,841,183
1,053,648

2014
55,378,477
33,505,003
21,873,474
1,447,931
85,897
5
1,533,833
20,339,641
1,533,833

2536717
349061
1309703
1328000
1511

2,800,461
482,567
1,535,808
1,588,895
8,465

3,120,035
492,348
2,042,957
1,058,167
160,098

1756348
7281340
22302670

1,862,498
8,278,694
24,119,877

2,162,836
9,036,441
29,376,082

15204036
108499
206933
15519468
6783202

17,288,779
-160,521
184,408
17,312,666
6,807,211

20,261,215
394,939
206,362
20,862,516
8,513,566

INTERNSHIP REPORT-2015

Share of Profit/Loss of Association


Extraordinary/Unusual Items
Profit Before Taxation
Taxation (Current)
Prior Year
Deferred
Total Taxation
Profit After Taxation

0
0
6783202
3141909
-160000
-754828
2227081
4556121

-5,186
0
6,807,211
2,400,321
-110,000
-159,060
2,131,261
4,675,950

0
0
8,513,566
3,122,512
38,419
-288,216
2,872,715
5,640,851

Best of Luck

54

INTERNSHIP REPORT-2015

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