Final Report

Preface
Internship is the integral and basic requirement of all the business study programmes in all
of the business study institutes as it is necessary and basic requirement of the
B.Com(Honors) degree of the Department of Management Sciences. Because it is the
practical implication of the theoretical knowledge which we have taught in our business
subjects to gain further knowledge and experience about professional business activities.
It equips us with the necessary knowledge, skills and values of business culture which are
basic requirement of the business professional and which also helps new graduates to
perform professionally as they get first step in their practical professional life.
For this reason I was placed at Bank Alfalah Limited (Shahdin Manzil Mall Road Lahore)
where I have done my six weeks internship. During my internship tenure I have gained a
lot of knowledge about operations under the supervision and guidance of my Internship
Supervisor. During my whole duration I was rotated in all the different departments of the
bank and was thoroughly briefed about the procedures of all the banking operations by the
concerned staff. My internship report contains all the knowledge which I have learnt there.
Dear readers this report is prepared in very simple, easy and understandable way so that
common and ordinary readers who do not have banking knowledge can also take benefit
from this report. I hope my report will give you easy and deep overlook of all the banking
operations to the readers.
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Chapter 1
Introduction
1.1: History& Background
History of Bank Alfalah Limited starts from Bank of Credit and Commercial International
“BCCI”. BCCI was incorporated in 1972 with a paid up capital of US $2.5 million. This
bank was operating successfully but an international conspiracy compelled its management
to stop its operations. BCCI was liquidated in 1991. At that time bank was operating in
more than 69 countries of the world. Branches of BCCI in Pakistan at that time were taken
over by Ministry of Finance and State bank of Pakistan. Later on banks started its
operations with the name of Habib Credit and Exchange Bank. HCEB was incorporated in
1992 as a public limited company under the companies’ ordinance 1984. HCEB was
privatized in July 1997. Management was taken over by the Abu Dubai consortium and it
was renamed as Bank Alfalah on 25 February, 1998.
According to bank Alfalah website (www.bankAlfalah.com) Bank Alfalah Limited was

incorporated in June 21st, 1997 as a public limited company under the Companies
Ordinance 1984. Its banking operations commenced from November 1st, 1997. The bank
is engaged in commercial banking and related services as defined in the Banking
companies ordinance 1962. The Bank is currently operating through 471 branches
(including 110 Islamic branches) across 163 cities in Pakistan with an international
presence in Afghanistan, Bangladesh, Bahrain and a representative office in the UAE. Bank
Alfalah looks ahead with optimism at the future – it aims to continue investing in its core
strengths to provide ‘best in class’ products and services to its diverse range of clients.
The bank is currently operating through 648 branches(as on December 30, 2014) including
480 Conventional, 157 Islamic Banking and 11 Overseas/International branches in
Afghanistan, Bangladesh, Bahrain, Dubai, and Representative Office in Abu Dhabi, UAE
with the registered office at B.A.Building, I.I.Chundrigar, Karachi.
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Some of the main branches are located in all of the major cities including: Chakwal,
Hyderabad, Kasur, Lahore, Abbottabad, Islamabad, Gawadar, Peshawar, Faisalabad,
Quetta, D.I.Khan, Rawalpindi, Sargodha, Sheikhupura, Sukkur, Sialkot, Multan, Murree,
Jhelum, Attock District, Gujranwala, Mirpur Khas, Lodhran, D.G.Khan, Mian Channu,
Bahawalnagar, Bahawalpur, Sahiwal, Khanewal, Swabi and Many Othera Citites all over
Pakistan.
1.2: Business Philosophy
 Objectives of Bank Alfalah
The objectives of Bank Alfalah are as follows:
 To please their customers by fulfilling the financial needs as best as possible, they
believe in placing the client at the center of business and all of the products and
services. For this the management has adopted the strategy of
 To get maximum share of the market
 To price the products optimally
 To expand more the network of branches in several other cities of Pakistan as well as
in the other countries of the world.
 To reinforce a corporate culture that fosters learning, creativity and flexibility.
 To invest further in banking innovations which include Islamic banking, SME, Home
Loans and other areas of product development to provide higher levels of services and
value to the clients.
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 Goals Of Bank Alfalah
Goals are factors through which the company’s devotion and commitment to the job can
be seen. If the goals are realistic and achievable, then surely that organization is doing its
job.
Bank Alfalah also has certain goals which it is trying to achieve, through its various
strategies and operations. The goals are mentioned below:
 To create a sound base, and through efficient system achieve modern banking
throughout Pakistan.
 By the end of every accounting year there is an increase in deposits
 To create unit banking network in all the branches of Bank Alfalah, the end of the year.
This means that all the branches of bank, i.e. deposits to advances, imports, exports,
L/C Opening, foreign currency and many more aspects under one roof, so that the
customer can be facilitate in one visit.
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1.3: Vision Statement
VISION
To inspire and empower people

to do things differently and
shape their own path in life and
business.
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1.4: Mission Statement
MISSION
We look at the market with fresh eyes

to find new opportunities, seek new
ways of enabling our customers to
succeed and advance in the world of
finance.
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1.5: Market Standing
The Bank has 97.91 percent shareholding in Alfalah Securities (Private) Limited, which is
engaged in the business of stock brokerage, investment counselling and fund placements.
The Bank has 40.22 percent shareholding in Alfalah GHP Investment Management
Limited, which is registered as an Asset Management Company and Investment Advisor
under the Non-Banking Finance Companies (Establishment and Regulation) Rules.
 Awards and Achievements
The following awards and achievements highlight the outstanding banking and financial
services by Bank Alfalah.
 Bank Alfalah Most Popular Auto Financing Bank

 Best Bank for Auto Finance Award
 Global Islamic Finance Best Islamic Banking Window 2013, 2014 and 2015
 Global Islamic Finance Shari’ah Authenticity Award 2015
 Best Islamic Banking Window 2015 by CFA Society of Pakistan
 Global Islamic Finance Best Research and Development 2015
 Consumer Choice Awards Best Credit and Debit Card 2016
 Consumer Choice Awards Best Corporate Credit Card 2016
 International Finance Magazine Best Credit Cards Offerings 2016
 Pakistan Society of Training and Development Best Corporate Credit Card 2016
 Institute of Bankers Pakistan and Dawn Best Customer Franchise 2015 and 2016
 CFA Society of Pakistan Best Investor Relations 2013, 2014 and 2016
 CFA Society of Pakistan Corporate Finance House of the Year – Equity and Advisory
2015
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Chapter 2
Management System
2.1: Organization Chart
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2.2: Corporate Profile
Bank Alfalah is the fifth largest private Bank in Pakistan with a network of over 600
branches in more than 200 cities across Pakistan with an international presence in
Afghanistan, Bangladesh, Bahrain and a representative office in the UAE. The Bank is
owned and operated by the Abu Dhabi Group. The International Finance Corporation (IFC)
of the World Bank partnered with the Bank in 2014, and holds a 15 percent stake in Bank
Alfalah.
Incorporated as a public limited company on 21st June, 1992, under the Companies
Ordinance, 1984, Bank Alfalah commenced banking operations from 1st November, 1997.
The Bank provides financial solutions to consumers, corporations, institutions and

governments through a broad spectrum of products and services, including corporate and
investment banking, consumer banking and credit, securities brokerage, commercial, SME,
agri-finance, Islamic and asset financing.
The Bank has 97.91 percent shareholding in Alfalah Securities (Private) Limited, which is
engaged in the business of stock brokerage, investment counselling and fund placements.
The Bank has 40.22 percent shareholding in Alfalah GHP Investment Management
Limited, which is registered as an Asset Management Company and Investment Advisor
under the Non-Banking Finance Companies (Establishment and Regulation) Rules.
 Board of Directors
 HH Sheikh Nahayan Mabarak Al Nahayan (Chairman)
 Abdulla Nasser Hawaileel Al-Mansoori (Director)
 Abdulla Khalil Al Mutawa (Director)
 Khalid Mana Saeed Al Otaiba (Director)
 Efstratios Georgios Arapoglou (Director)
 Khalid Qurashi (Director)
 Kamran Y. Mirza (Director)
 Atif Bajwa (President/CEO and Director)
 Board Audit Committee
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 Kamran Y. Mirza (Chairman)
 Tahir Khurshid (Secretary)
 Board Strategy and Finance Committee
 Abdulla Khalil Al Mutawa (Chairman)
 M. Iftikhar Shabbir (Secretar)
 Board Risk Management Committee
 Mr. Khalid Mana Saeed Al Otaiba (Chairman)
 Farhan Ali (Secretary)
 Board Human Resources and Nomination Committee
 Atif Bajwa (President/CEO and Director )
 Mian Ejaz Ahmad (Secretary)
 Central Management Committee
 Atif Bajwa (Chairman)
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 Suhail Yaqoob Khan (Member)
 Mirza Zafar Baig (Member)
 Faisal Farooq Khan (Member)
 Khurram Hussain (Member)
 Mehreen Ahmed (Member)
 Rizwan Ata (Member)
 Saad Ur Rahman Khan (Member)
 Aly Mustansir (Member)
 Syed Ali Sultan (Member)
 Aasim Wajid Jawad (Member)
 Imran Zafar (Member)
 Khawaja Muhammad Ahmad (Member)
 Mohib Hasan Khan (Member)
 Board Compensation Committee
 Mian Ejaz Ahmad (Secretary)
 Chief Financial Office
 Mirza Zafar Baig
 Company Secretary
 Mian Ejaz Ahmad
 Auditors
 KPMG Taseer Hadi & Co. (Chartered Accountants)
 Registered/Head Officer
 B. A. Building I. I. Chundrigar Road Karachi,Pakistan (bankalfalah.com)
 Share Registrar
 F. D. Registrar Services (SMC-Pvt) Limited 1705, 17th Floor, Saima Trade Tower-A
I. I. Chundrigar Road Karachi, Pakistan
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2.3: Management Hierarchy
Management
Chief Executive Officer
Executive In charge Strategic Planning & Executive In charge International &

Global Marketing Treasury Division
Executive In charge Human Resources Executive In charge IT Division

Division
Executive In charge Credit Division Executive In charge System & Operation

Division
Executive In charge Establishment & Executive In charge Credit Monitoring

Administration Division
Executive In charge Business Executive In charge Legal Affairs

Development Division S.A.M./ Car Division
Finance/ Leasing
Executive In charge Audit & Inspection Executive In charge Finance Division

Division
Executive In charge Corporate Banking Executive In charge Islamic Banking

Division
SME Financing & Home Loan
Executive In charge New Products & Executive In charge Cards Division

Service Quality Division
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Hierarchy
President (CEO)
Senior Executive Vice President
Executive Vice President
Senior Vice President
Vice President
Assistant Vice President
Officer Grade I,II,III
Clerical Staff Non-Clerical Staff
Cashier Typist Clerks Guards Messenger
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2.4: Policy Formation Process
At Bank Alfalah, policies as mentioned earlier, are been formulated at the Executive level
of the organization. Policies for any organization constitute a major part in the overall long
term functioning of the bank. In short we can say that policies and the objectives are the
lifeblood of the organization in long run. Though policy formulation is in the prescribed
hands yet the policies formulated by the top level have been very successful as indicated
by the success pattern of the bank so far.
Then these policies are transformed into the hands of the top-level management. The top
management is been suggested to make the policies implemented keeping in view the long-
term objectives of the organization. Also the views from the middle managers and
employees are encouraged as well for the purpose of removing flaws form the system. For
these very purpose meetings arte held almost weekly at the branches level and also in case
of any contingent dispute resolving the meeting scan be called at any time during the branch
timings.
Policies overview at Bank
Since the inception of Bank Alfalah Limited in 1997, by the grace of almighty, the bank
has moved rapidly in expanding its branch network and deposit base, along with making
profitable advances and increasing its range of products and services. It has made a break-
through in providing premier services at an affordable cost to our customers.
Managerial policies followed by the bank have a direct contribution in its success. The
Board and Management of the Bank have implemented strategies and policies to carve a
distinct position for the Bank in the market place. In a bid to satisfy Bank Alfalah’s
shareholders and valued clients, the management initiated the process of realization of the
Bank's vision by consolidating its financial position and creating a large and diversified
business base. Bank Alfalah has made notable progress in business volume, efficiency, and
profitability following its increased involvement in trade finance, commercial lending, and
foreign exchange and money market operation.
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Major policies hat have been made and implemented at Bank Alfalah are: Consumer
Banking Policy.
Alfalah’s policy regarding consumer-banking policies includes the development through

the electronic consumer banking operations. Likewise, Bank Alfalah has created a niche
for itself in the marketplace. It is planning to introduce new consumer products like credit
cards, e-banking etc.
 Lending Policy
Bank Alfalah pursues a conservative yet dynamic credit policy. This strategy has enabled
the bank to have a high quality risk portfolio. Bank prefers to finance exporters because of
less risk involved. Bank Alfalah manages the credit risk, liquidity risk, market risk and
other operational risks very efficiently. For this very purpose Bank Alfalah has got an
effective credit line proposals system to be sanctioned to the clients on demand.
 Selection of Clients
Management is very selective of clients. All of the references are carefully checked to learn
about a potential client before establishing a relationship. References are excellent sources
of new accounts as they give an opportunity to learn about a potential client before
establishing a relationship. This policy helps in protecting the integrity of the bank. It
ensures good relationship with the clients.
 Services and Product Polices
Bank Alfalah provides a vast variety of services to its clients. Some of those policies are
discussed below:
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 Credit Facility
In this service the loans are provided to the customers by the bank to meet revenue
shortfalls.
 Stop Payment Instructions
It is one of the most important services provided by the bank to its clients. In case the
account holder has lost his/her cheque he can issue the stop payment instructions to the
bank. The bank till further instructions will not honor the cheque.
 Deposits
The bank offers different types of Deposits to its account holders.
 Alfalah Musharakah Saving Account
 Current Account
 Musharakah Time Deposits On PLS Basis
 Drafts, Telephonic Transfers, Pay Orders
These are the facilities that the bank offers its customers and, at times, to the people who
do not maintain an account with the bank, that is, ordinary people.
For offering these services the bank charges commission besides the government taxes and
duties.
 Trade Department Policy
Bank Alfalah’s focus is on “Foreign Trade” as its primary market of business. It maintains high
emphasis on enlarging its Correspondent Banking network besides aiming to enhance the scope
and level of cooperation with existing correspondents. The Trade finance department has efficiently
done management of the changing trade policies by the central bank over there.
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 Marketing Policy
Bank Alfalah inverts heavily for the marketing policies and orientation, for the publicity of
its new products/services. It uses television advertisements, newspaper as well as various
promotional schemes to attract customers. The Bank sponsors a number of sporting and
community development initiatives to play its part as a responsible corporate citizen.
 Promotion and Incentives
Bank hires officers in range 1. Then depending upon their job performance they are
promoted to next range. More facilities and increments are given along with promotion.
The bank gives a car facility to the officers of range 5. Bank’s policy is to give cash rewards
and salary increments for increasing the employees’ satisfaction. Also with the expansion
of the branch network growth in the current era, more and more opportunities have been
provoked not only for the young generation but also for the employees of the bank.
 Accounting Policies
Bank Alfalah has adopted almost the same accounting procedures that other financial
institutions are adopting at this time. These accounting procedures or Accounting policies
are made according to Generally Accepted Accounting Principles, the GAAP. The process
flow and the usage of the policies in the day wise routine are mandatory for all the
employees working in the specified departments at the branch.
 Recruitment Policy
Hiring is mainly of two types i.e. direct hiring and promotion from lower levels. Bank’s
policy is to hire suitable candidates. By suitable candidates bank refers to candidates having
proper educational qualification, experience and background. It is the policy of the bank
that “President” of the bank will be the representative of major stakeholders/owners. Board
of Directors is representative of sponsors. Bank is reluctant in making direct appointment
of senior executives. EVPs are promoted from lower levels. Every year Bank Alfalah opens
its doors for about 30 fresh post-graduates to join the prestigious ranks of Management
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Trainee officers with the Bank. The MTO scheme is a highly competitive and sought after
induction scheme, in which short-listed applicants appear in a written test followed by a
panel interview. Successful candidates then receive comprehensive training in essential
areas of branch banking at the Bank’s state-of-the-art training facility at Lahore and
Karachi, prior to their posting at various branch locations. Preferred educational
background for entry into the MTO scheme includes an MBA degree, MA Economics or
M. Com from reputable Pakistani or foreign institutions with GPA of 3 plus, or equivalent.
Strong personal character, as well as communication and interpersonal skills are essential
pre-requisites to succeed as an MTO.
 Training and Development Policy
Bank Alfalah’s policy is to take special interest in recruitment and training. This training
is being given in two instances, i-e, the Off-job training and the On-job Training. To impart
technical skills to its staff “Training and Development Center” offers programs in several
skill areas. Its employees attend seminars and courses offered by “Institute of Bankers”.
Alfalah also offers various computer-training courses to its employees. It is obligatory for
each staff member of the bank to attend a minimum number of training courses during the
course of a year. Wherever the Training Department is unable to provide focused training
for certain groups of staff, reputable external training providers are invited to fill the gap
 Quality assurance services
Service excellence is one of the priorities of Bank Alfalah. A separate quality assurance
department is to be established as well very soon for the removal of little flaws that are still
prevailing at some of the branches regarding facilities for the consumers. The focus of the
bank is to develop new areas of activities along with traditional banking activities of
resource mobilization and credit disbursement.
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 Growth Policy
Bank Alfalah emphasizes on growth along with providing best quality customer service.
Bank’s policy is to maximize the synergies of branch network through optimal allocation
of financial, human and other resources to compete in the marketplace.
 Liquidity Policy
Bank Alfalah maintains positive and healthy liquidity. Bank’s policy is to keep surplus
liquidity in fixed income securities issued by the Federal Government of Pakistan. If
necessary it can be easily converted into cash.
 Investments Policies
Bank Alfalah investment policies are based on federal and provincial securities,
debentures, and participation term certificates treasury bills and blue chip share of joint
stock companies
 Job Satisfaction
Job satisfaction is the major important factor to be considered while evaluating any
organization. To evaluate an organization’s strength and repute in the industry, job
satisfaction is the key factor as well like that of growth and development in the monetary
terms.
During my internship program, I observed being in touch with most of the employees over
there, that all the employees are working with devotion that is the basis for job satisfaction.
In addition, all the employees are satisfied with the working ambiance, with the salaries
and with the increments and promotions. Only thing to be mentioned out over here is the
workload and the employee timings for their job. Some of the employees are over burdened
with the work. But that does not impact the overall job satisfaction of the organization.
Bank takes much care of its employees because they are precious assets of it. Bank
celebrates birthdays of all employees, arrange trips and give them opportunity for
recreation and enjoyment.
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Bank hires officers in range 1. Then depending upon their job performance they are
promoted to next range. More facilities and increments are given along with promotion.
The bank gives a car facility to the officers of range 5. Bank’s policy is to give cash rewards
and salary increments for increasing the employees’ satisfaction. Also with the expansion
of the branch network growth in the current era, more and more opportunities have been
provoked not only for the young generation but also for the employees of the bank. At
Bank Alfalah the employees are very much satisfied with the job and the overall working
conditions of the bank, so in due response, the bank is enjoying high efficiency in managing
the time delays in reporting and working operations.
2.5: Managerial Policies
Management at Bank Alfalah Ltd. is very much keen towards maintaining the decorum of
the cooperative culture within the organization and also with the clients of the bank. The
way managers treat the employees and an operative is outstanding at bank Alfalah. This is
the reason why each and every employee is pretty much satisfied with the job.
 Management Styles
Management must have to adopt some administrative style to get all the activities to be
done effectively and efficiently. As far as the management styles at Alfalah Bank are
concerned, there is both centralization and decentralization to some extent. Management
must adopt some administrative style to get all the activities done effectively and
efficiently. As far as the management style at Bank Alfalah Limited Township Branch is
concerned, there is centralization to a certain extent and decentralization in some other
areas.
Management refers to the universal process of effectively and efficiently getting activities
completed with and through other people. It is a process by which certain basic functions,
that are planning, organizing, leading and controlling, are performed to achieve the desired
objectives of the organization. These functions are being performed at three levels in Bank
Alfalah.
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 Managerial level
Administrative style of Branch Manager is authoritative. His authoritative style is the

requirement of administration. For the implementation of strategies and getting all the
activities to be done properly with an organized environment, unity of command was the
requirement of the time. In his absence, I observed the environment of uncertainty and
deregulation in the bank to a little extent.
 Department Head level
Department heads are responsible for the overall operations of the department assigned.
There is a sign of good delegation of authority for decision-making in Alfalah Bank at this
level. Department managers always ask his subordinates before referring the solution to a
problem to the Branch Manager. So at this level employees are very much contended to
their work.
 Staff level
At the staff level, as employees are satisfied to the work assigned and authority structure,
so management at this level is concerned to the decisions of the department heads level.
 Impact of Management Style on Employees
Management styles have a great impact on the overall working of an organization. The key
issues, which can arise due to strong authoritative actions by the management, can be of
the following nature:
 Absenteeism
 Irresponsible behavior
 Coordination
 Reporting time delays
 Turnover
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But at Bank Alfalah Ltd. these issues have never been provoked till now. This is due to the
fact that employees have been given equal importance as been given to high level
operatives.
The following important aspects need consideration.
 Motivation
The term motive implies action to satisfy a need. Motivation can be defined as a willingness
to expend energy to achieve a goal or a reward. The management styles adopted by the
bank affect greatly, and employees are motivated in order to enhance their performance
and achieve the derived goals.
 Morale and Productivity
The employees of the bank possess high morale, and thus exhibit high productivity. The
employees are happy and are also productive workers. Job attitudes and morale are quite
positive for two reasons. Firstly employees gain social satisfaction from interactions at the
work place. Working conditions and supervision are good; secondly high morale results
from high motivation to produce. In other words we can say that management should put
its eggs in the basket that creates a high-motivated work force.
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 Job efficiency and satisfaction
Consequently, the overall impact of the well-equipped management styled organization is

the job efficiency and job satisfaction. At Bank Alfalah the employees are very much
satisfied with the job and the overall working conditions of the bank, so in due response,
the bank is enjoying high efficiency in managing the time delays in reporting and working
operations.
 The Strategic Hierarchy
The Strategic management model provides a conceptual basis for applying strategic
management. Alternate strategies that an enterprise could pursue can be categorized into 4
actions:
 Integration Strategies
 Intensive Strategies
 Diversification Strategies
 Defensive Strategies
 Integration Strategies:
Forward integration, backward integration, and horizontal integration are sometimes

collectively referred to as vertical integration strategies. Vertical integration strategies
allow a firm to gain control over distributors, suppliers, and/or competitors
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 Intensive Strategies:
Market penetration, market development, and product development are sometimes referred
to as “intensive strategies” because they require intensive efforts to improve a firm’s
competitive position with existing products.
 Diversification Strategies:
Concentric, horizontal and conglomerate are some of the strategies, which are inculcated
under the head of diversification strategies. Overall, diversification strategies are becoming
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less and less popular as organizations are finding it more and more difficult to manage
diverse business activities.
 Defensive Strategies:
Another way to pursue strategies is through the defensive way, which includes joint
venture, retrenchment, divestiture and liquidation strategies.
2.6: Credit Rating
JCR-VIS Credit Rating Company Limited has recently assigned an improved entity rating
of ‘AA+’ (Double A Plus) for the long-term and ‘A1+’ (A-One Plus) for the short-term,
with outlook assigned as ‘Stable’. These ratings were assigned in February 2017, and are
based on the position at September 2016.
Furthermore, PACRA has also rated the Bank ‘AA’ (Double A) for the long-term and
‘A1+’ (A-One Plus) for the short-term, and the outlook for the Bank remains‘Positive’.
The unsecured subordinated debt (Term Finance Certificates) of the Bank has been
awarded a credit rating of AA- (Double A Minus). These ratings were assigned in June
2016.
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Chapter 3
Marketing Mix
Marketing Mix of Bank Alfalah LTD.
Marketing mix is a set of tools you need for establishing your detailed marketing plans and
forecasting your sales to pursue the marketing objectives in the target markets. Thus
marketing mix of any organization is very much important in order to ascertain the overall
functioning of the organization. Bank Alfalah has a strong marketing mix structure for its
branches growth. Marketing mix of Bank Alfalah will be focusing the following major
aspects:
 Product
 Price
 Place
 Promotion
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3.1: Product
Due to trend setting and innovative banking, Bank Alfalah presents a range of quality
products with revolutionary perks and convenience. Alfalah provides a wide range of
products/ services to its customers, which can be compared with any foreign, or national
bank in terms of quality and reliability. The acceptability of these products is very much
effective to the customers. Bank Alfalah has now achieved a competitive advantage over
other banking institutions by offering a complete range of banking solution for its valued
customers.
As per current laws and State Bank of Pakistan’s regulations, customers are required to
provide proof of their identity and a satisfactory introduction to open any Bank Account.
Term Deposit account can be opened by providing a copy of national identity card only.
Here is an overview of different products and services formulated by Bank Alfalah.
 Nature of Accounts Offered
No doubt in saying that the basic function around which the banks operations circulate
constitute the opening of accounts and ultimately enhancing the deposit base for the branch.
Accounts offered by the banks for the deposits of customers constitute the basis of their
operations and develop the basic relationship between a banker and customer.
 Deposit Products
Likewise, Bank Alfalah has formulated a number of accounts for the deposits of customers,
with unique features. These are:
 Current Accounts
This account offers unlimited deposit and withdrawal facility to facilitate business
transactions. There is absolutely no limit on number of transactions deposits and
withdrawals. Individuals, partnerships, companies, associations, clubs, societies, and
NGOs are eligible to open current account.
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o Alfalah Kamyab Karobar
o Alfalah PKR Current Account
o Alfalah Asaan Current Account
o FCY Current Account
o PLS Savings Accounts
o Alfalah Basic Banking Account
 Alfalah Kamyab Karobar
If you think big, you can win big. And if you have the will to start a business or expand
one, Alfalah Kamyab Karobar is the perfect partner for you.
We believe in people who, like us, are passionate and have a spirit to defy the odds. And
our products are designed to help you on this journey to success.
With Alfalah Kamyab Karobar you get a current account that offers unlimited free
transactions. Our network of over 600 plus online branches can facilitate your business
across Pakistan. So set your mind to your business – where it belongs.
Maintain Rs. 25,000 monthly average balance* and avail:
o Free Cheque Books

o Free Bankers Cheque
o Free SMS on every transaction
o Free (Issuance & Annual Fee) Alfalah Debit Card (Silver & Gold Visa) accepted at
over 30 million outlets and 2 million ATMs worldwide
o Free online transaction (including funds transfer, cash withdrawals & deposits) within
Bank Alfalah branches nationwide
o Free cash withdrawals from any Bank Alfalah ATM
o Free E-statements
o Internet Banking facility enabling you to transfer funds, pay utility/mobile bills,
download account statement and much more
o Access to your account with our 24×7 Alfalah Contact Centre
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 Alfalah PKR Current Account
Enjoy your everyday banking needs with absolute ease through our non-interest bearing
Current Account, giving you instant access to your cash from any branch across our
growing network. It offers transactional privileges to both individuals and businessmen
who have frequent transaction needs and funds accessibility requirement.
Features & Benefits
o Minimum monthly balance requirement of Rs. 5,000 only*

o Account opening requirement of Rs. 1,000
o First Cheque book free
o Five Bankers Cheque free per month on maintaining an average balance of Rs.50,000
and above. Any further PO/DD will be charged as per SOC
o No restriction on number of monthly deposit or withdrawal transactions
o Easy access to funds through cheque book and VISA Debit/ATM Card that can be used
globally at over 30 million outlets and at more than 2 million ATMs
o Free within city online banking across Bank Alfalah branches
 Alfalah Asaan Account – Current
Opening a bank account doesn’t need to involve too much hassle. With minimal
documentation and just Rs. 100, open your Alfalah Asaan Account today.
Features and Benefits
o No service charges on non-maintenance

o No minimum balance requirement
o Monthly cash deposit/withdrawal limit of up to Rs. 500,000
o Get your Alfalah Debit Card when you open an account*
o Cheque book available upon request*
o SMS alert on every transactions
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 FCY Current Account
FCY Current Account allows the customer to manage their domestic and international
foreign currency transactions with security, ease and convenience.
o Non-profit bearing checking account

o Account can be opened in US Dollar, Pound Sterling, Euro or Japanese Yen
o Minimum balance* equivalent to 100 (USD, GBP, EUR) or 5,000 Yen
o No restriction on number of monthly deposit or withdrawal transactions.
 PLS Savings Accounts
Saving account is the most common account for individuals. Saving accounts are designed
to mobilize savings primarily from a large number of individuals and households. Any one
or more individuals or partners can open a PLS saving account with the bank
o Royal Profit
o Alfalah Savings Account
o Alfalah Care
o Alfalah SnaPack Account
o Alfalah Asaan Savings
o Alfalah FCY Account Savings
 Royal Profit:
Royal profit is a highly yield rupee account intended to provide higher rates of profit to
high net worth customers and greater flexibility and convenience in terms of transactions.
 Alfalah Savings Account
Enjoy your basic banking needs with complete ease while you also start earning profits on
your savings for a more protected tomorrow. This account is tailored for individual savers
and businesses who seek returns on their deposits as well as continuous access to their
funds.
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Features & Benefits
o Open with an initial deposit of Rs 100 only

o No monthly minimum balance requirement
o Profit is calculated on the average balance
o Profit is paid semi-annually
o No restriction on number of monthly deposit or withdrawal transactions
o Easy access to funds through cheque book and VISA Debit/ATM Card that can be used
globally at over 30 million outlets and at more than 2 million ATMs
o Convenience of online banking across all Bank Alfalah branches nationwide
 Alfalah Care
With the Bank Alfalah Care Senior Citizen Savings Account, you can rest assured that all
your basic banking needs will be met, while you enjoy high returns every month on your
savings with the flexibility of withdrawing your profits at any time.
Features
o Enjoy a high rate of return on your savings

o Enjoy monthly profits, calculated on daily balance basis, paid out monthly in your
account
o Open with an initial deposit of just Rs. 1,000, with no service charges
o No restriction on the number of monthly deposits or withdrawals
o Convenience of online banking across all Bank Alfalah branches nationwide, with no
charges for within city transactions
o Easy access to funds through Cheque Book and Debit Card (Visa) accepted at more
than 30 million outlets and 1.9 million ATMs worldwide.
 Alfalah SnaPack Account
For You
Spend responsibly and get your swag on!
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Life is a lot more fun with Alfalah SnaPack Account. Now you don’t need to get your
pocket money as cash. Get it on a debit card instead – and you’ll never lose it! You can
shop for your favourite things, eat at restaurants and watch movies – making any hang out
session with friends a whole lot cooler.
Benefits
o Free Alfalah SnaPack Debit Card for ages 6 to 17 years

o Free monthly e- Statement
o Free SMS alerts
For your Parents or Guardians
You and your child can open a joint account with a minimum amount of Rs. 100 only –
allowing you to have complete control over your child’s spending. These two accounts –
Savings Account (yours) and Current Account (child’s) – are opened together and are
linked. The money in your Savings Account functions as a pure deposit. Your child cannot
access these funds. The profit you earn on this deposit is automatically transferred to your
child’s Current Account every month. You will also have the ability to top-up the monthly
amount to the Current Account through standing instructions. Your child can use their
Debit Card to conduct transactions only from the Current Account.
Benefits
o Earn monthly profit on your Savings Account

o Free Cheque Book
o Free monthly e- Statement
o Free SMS alert
o No monthly account service fee
o Debit Card with annual fee
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 Alfalah Asaan Account- Savings
Opening a bank account doesn’t need to involve too much hassle. With minimal
documentation and just Rs. 100, open your Alfalah Asaan Account today.
o Avail a 6-monthly profit rate on your savings account*

o No service charges on non-maintenance
o Monthly cash deposit/withdrawal limit of up to Rs. 500,000
o Get your Alfalah Debit Card when you open an account**
o Cheque book available upon request**
o SMS alert on every transaction**
 Alfalah FCY Account- Savings
This account allows the customer to manage their domestic and international foreign
currency transactions with security, ease and convenience.
Features & Benefits
o Account can be opened in US Dollar, Pound Sterling, Euro or Japanese Yen

o Minimum balance* equivalent to 250 (USD, GBP, EUR) or 10,000 Yen
o Profit is calculated on minimum monthly balance and paid on a semi-annual basis.
o No restriction on number of monthly deposit or withdrawal transactions.
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 Alfalah Basic Banking Account
o Initial deposit for account opening is Rs. 1,000 with no minimum balance requirement.
o Noninterest bearing checking account.
o Maximum 2 deposits & 2 withdrawals through cheque are allowed.
o 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.
o No restriction on ATM withdrawal.
 Alfalah Education:
Alfalah Education is a Term Deposit product with No Additional Cost (NAC) education
insurance cover for account holders with school going children. Alfalah Education Account
, beside offering competitive return on TERM DEPOSIT , offers tuition fee reimbursement
of children for 15 years of schooling or up to their 20th birthday, in the unfortunate event
of the death (either through accident, illness or natural causes) of the main breadwinner
(account holder) parent. Alfalah Education offers a competitive return on term deposit and
secondly, it creates a contingency provision for our school going youth’s education in the
hapless event of the death of any major breadwinner. The product seems rewarding in the
current scenario of increasing number of children of school going age and the general
public interest in quality education of their off springs.
 Alfalah Mahana Amdan:
Alfalah Mahana Amdan is a 3 year TDR with expected rate of profit of 10% p.a. This term
deposit will provide an opportunity to individual/joint customers to enjoy higher returns
that will automatically be credited to his/her current/PLS/RP/BBA account on 1st working
day of each month.
This facility is not available for business and corporate customers.
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 Alfalah Kifayat :( more than a saving account)
Features:
o 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
o Minimum balance requirement for opening this account is Rs. 10,000/- with
maximum of Rs 1, 000,000/-
o Three debit transactions are allowed in a month either through cheques or Debit
Card/POS machine.
o There is no restriction on deposit transactions.
o The bank will issue the first cheque book of 25 leaves and a Debit card free of cost.
o 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, if the
minimum balance for any particular day of said month falls below the amount of Rs.
10,000/-.
o All service charges are as per the prevailing ‘Schedule of Charges’.
o Only one account per customer will be allowed across all branches of Bank Alfalah.
 Notice Deposits
These are the short-term deposits of customers where the notice is to be given to the bank
prior to the withdrawal. Profit rates for these deposits are:
07 - 29 days 4.00%
30 days & above 4.50%
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 Term Deposits
Term deposit is a fixed PLS account where the profit rates increase with the amount as:
Tenures Rates of profit
1 Month 3.50%
3 Months 4.00%
6 Months 4.25%
1 Year 4.75%
5 Years 6.00%
5 Years 6.50%
 Salient features:
o Short to long term deposits
o Choice of term 1,3,6,12,26 & 36
o Minimum balance required Rs. 50,000/-
o Profit paid on maturity of respective term profit rates increase with tenure and amount
 Foreign Currency Accounts
Due to the increasing globalize business; all leading commercial banks have been offering
foreign currency accounts to their customers. Bank Alfalah has done it by facilitating its
customers to have their foreign currency accounts in the bank.
At present, BAL offers US Dollar & UK Pound accounts and profit is being paid on half
yearly basis.
 On-line Service
Bank Alfalah provides on-line services to its customers. At present, this service facilitates
the customers to deposit and transfer their amounts from one branch to another of BAL. It
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is being planned to launch a universal account to update this facility and make it more
extensive.
 Other Consumer Product
Besides the accounts variety that has been mentioned in the previous sections, Bank
Alfalah Islamic Banking provides a wide range of products that are purely Islamic based.
These products fall in the category of Musharakah, Maharajah based financing, that is
related to the trade concerns and not the interest based financing or mark up thing.
 Alfalah Visa Card (Free forever)
Your 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
locations in more than 150 countries around the globe and over 18,000 Bank Alfalah’s
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.
 Alfalah Hilal Card (Debit Card)
In our endeavor to give you versatile banking options to fulfill your financial needs, Bank
Alfalah Limited presents you the Alfalah Hilal Card, 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 is
globally accepted welcomed at all locations displaying the VISA/ ELECTRON/PLUS
logos with self-printing POS terminals. Your card is accepted at nearly 13 million physical
locations in more than 130 countries round the globe with above 14,000 major
establishments in Pakistan.
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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.
 Car Finance
Financing a car at Alfalah Bank is very easy with the due favor of no collateral requirement.
Alfalah Car is a consumer-financing scheme that enables a customer to own his desired car
at easily affordable and flexible installation with minimum down payment and insurance.
All maintenance and insurance expenses are borne by the bank because of the reason that
the ownership of the car is still with the bank even after the signing of the contract. The
bank is just receiving the rentals from the customers. All businessmen, Corporate
Employees, Salaried and self-employed professionals having net take home income in
excess of three times the monthly installment are eligible to take the advantage of this
scheme.
The customer is able to finance their vehicle(s) the smart way with us. Bank will purchase
the vehicles(s) of the customer’s choice and later rent to the client at a pre agreed rental
amount. Ownership of the vehicle(s) is transferred to the client upon satisfactory payment
of all the rentals by the time the customer’s security deposits period expires.
 Alfalah Finance
Bank Alfalah Ltd. (BAL) agri finance program has been named as "Bank Alfalah Zarie
Sahulat”. Bank is 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
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 Alfalah Karobar finance
o AKF is a Running Finance facility between Rs 0.50M to Rs 10.0M.
o Tailor-made product for SMEs for their working capital financing based on the cash
flow methodology. (Our Edge = Better pricing, quicker TAT and low processing
charges.)
o At Bank Alfalah, 65 branches are designated to deal with AKF business in the entire
country.
o The purpose of the AKF is financing procurement of raw material, finished goods and
receivables of SME businesses.
 Money Gram
Bank Alfalah limited, in collaboration with Money Gram, offers remittance service to
Pakistan. Money Gram is person to person money transfer service that allows consumers
to receive money in just a few minutes.
Money Gram is available in over 156 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, other services can take days or weeks. There are no
complicated procedures and you do not need a bank account or a credit card. What’s more,
the receiver is handed the cash immediately.
 Branchless Banking Products

o Alif
o BISP
o EOIB
i. Alif
Alif is an innovatively designed branchless banking mobile wallet which features a debit
card that is powered by UnionPay International. It was launched to meet the objective of
augmenting financial inclusion in Pakistan, consequently reducing the gap between the
banked and the unbanked population.
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In order to do so, this mobile wallet product has been designed to replicate a regular
banking account, but with minimum account opening requirements and a wide range of
functionalities.
Alif allows the customers to perform the following activities:
o Balance inquiry
o Mini statement
o View individual transaction details
o Fund transfers
o Utility bill payments
o Mobile top up and bill payments
o Interbank transfers
Alif customers can deposit funds into their wallet using the following options
 Incoming funds transferred from another wallet

 Incoming IBFT from another bank account
 Pull funds from linked Bank Alfalah account
 Cash deposit at the agent
Alif customers can use the funds in their wallet through the following options:
 Funds transfer to another wallet

 Domestic remittance to any CNIC – Coming Soon
 IBFT to another bank account
 Push funds to linked BAFL account
 Cash withdrawal from agent
 ATM cash withdrawal
 Purchase at POS
 Mobile wallet transactions
Alif customers can use their cards at all ATM’s and POS machines within Pakistan, and
customers with level 2 wallets can use their cards internationally as well. Simultaneously,
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Bank Alfalah is also working on a number of initiatives that will widen the access channels
for Alif users, not only making access easier, but also making it possible to operate the
account on-the- go!
ii. BISP.
In February 2012, the Government of Pakistan initiated the Benazir Income Support
Program in order to provide basic financial assistance to the poorest families countrywide.
Approximately 1 million+ beneficiaries have been registered with BAFL. BAFL is
responsible for the distribution of stipends to the lead female of the selected family on a
quarterly basis. So far, BAFL has distributed over Rs. 68 billion in stipends to BISP
beneficiaries. In accordance with BISP specifications, the printed Benazir Card is
programmed as such to be accepted at any 1-Link ATM across the country and can be used
at POS machines. As mandated by BISP, the Bank has developed its staff for distribution
of cards at the designated distribution centers.
iii. EOBI
Bank Alfalah has joined hands with Employee Old Age Benefits Institution (EOBI) for the
administration and organization of employees’ contribution and pension disbursement
process in Pakistan. The process has been designed to cater to a wide base of 390,000+
pensioners, and 98,000 contributing employers. Bank Alfalah manages an average monthly
pension disbursement of Rs. 5,250 for each EOBI pensioner, along with a total monthly
contribution collection of Rs 1.5 billion from employers.
Bank Alfalah has worked on revolutionizing the pension disbursement process by making
it more sophisticated and agile as opposed to the manual processes which were previously
being followed. The pension disbursement process has been designed to make it completely
digital through the use of branchless banking mobile wallets which will eradicate the use
of physical dealing of cash at the time of pension disbursements. Instead of pension
collection at branches only, Bank Alfalah has now widened the access points for
pensioners. EOBI pensioners are now able to withdraw their pensions through the 10,000+
ATM network across Pakistan.
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EOBI Pension Disbursement
EOBI PENSION WALLET
The EOBI Pension Wallet, tagged to a Union Pay International powered debit card, is an
innovative financial solution that is meant to facilitate EOBI pensioners to receive monthly
pensions in a secure manner with ease. EOBI pensioners will be able to receive funds
directly into their wallet accounts, accessible through the prescribed channels.
USE OF CARD
 Balance Inquiry
 Mini Statement
 Cash withdrawal transactions using
 Bank Alfalah ATMs across Pakistan
 1 Link/Mnet ATMs across Pakistan
 Retail Purchases using POS/MPOS – Effective from 1st August 2017
No amount can be deposited or transferred into an EOBI Pension Wallet Account other
than the monthly pension disbursed by EOBI.
Account Opening/ Card Issuance
 An EOBI pensioner can visit any Bank Alfalah branch and show his/her CNIC and
Passbook for verification
 After verification, the pensioner is asked to perform a bio-metric verification for
pensioner profiling
 The pensioner is then asked to provide some basic KYC details in order to complete
the account opening form
 The form is printed and signed by the pensioner and branch officer
 The pensioner’s wallet account is then opened and the EOBI pension card pack is
handed over to the pensioner
Card Activation
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To activate the EOBI pension card, you can simply call on our 24/7 customer support
helpline at 021-111-225-229.
Monthly Pension Disbursement
On the 1st of every month, the pensioner’s wallet account is credited with the EOBI pension
amount. Upon successful disbursement, an SMS notification is sent to all EOBI wallet
holders.
An EOBI Pensioner is able to withdraw funds from their account at any ATM in Pakistan.
Proof of Life [Bi-annual verification of EOBI Pensioners]
 Proof of Life consists of a bio-metric verification which can be performed at a Telenor

BVS location or at any Bank Alfalah branch
 In case the Proof of Life is failed to be performed on the stipulated date, the pensioner’s
account shall be suspended. The account will be restored once bio-metric verification
is performed within a span of 3 months
 The pensioner shall receive an SMS 30 days before the suspension of their account
which would instruct them to visit the nearest Telenor outlet to provide their bio-metric
verification. The pensioner’s CNIC will be required in case of bio-metric verification
 In case there is an error in the verification process (finger prints not found), the
pensioner shall be sent an SMS instructing them to visit a Bank Alfalah branch for
physical verification
 Once the verification is performed successfully, the pensioner will be sent an SMS to
provide them an update
EOBI Contribution Collection
How does EOBI contribution collection take place?
Manual contribution collection
 The depositor can visit a Bank Alfalah branch to deposit the contribution in EOBI
Pension Fund
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 The depositor is asked to fill the PR-03 deposit slip placed at the branch slip counter
and submit to the branch teller
 The branch teller completes the transaction by filling out all the details on the deposit
slip onto the system
Contribution Collection with Pre-generated Slip
 If a depositor wishes to deposit funds into the EOBI Pension Fund, they can generate
the PR-03 deposit slip from the EOBI website
 The depositor can then visit a Bank Alfalah branch along with the pre-generated slip
and then approach the branch teller when called to the ticket counter
 The branch teller completes the transaction by filling out all the details on the deposit
slip, onto the system
 Self Service Banking Products
 Alfa
 Internet Banking
 SMS Alerts
 E-Statements
 ATM / Cash& Cheque Deposit Machine
 Contact Center
 Alfa
Alfa your life and check banking off your daily to do list. Manage your savings. Track your
expenses. Pay your bills. Request for a new cheque book. Set reminders, recharge your
Netflix account. Or just go shopping. Alfa will keep you ahead.
If you’re an Alfalah Internet Banking customer then login using your existing ID and
Password. Or you can register using your Alfalah Account or Credit Card details.
 View account information or access your last 30 days transaction details

 Pay your Alfalah Credit Card bill instantly or view your credit cards details
 Access your loans and Bancassurance details
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 You can also request for
 Cheque book
 Address Change
 SMS subscription
 e-Statement subscription
 Transfer funds instantly to any Bank Alfalah account or Other IBFT enabled accounts
 Top up or pay your own or anyone’s mobile bill instantly
 Pay your utility bills
 Pay your Internet Service charges
 Stay updated on all the discounts on Alfalah Credit and Debit Card
 Locate Bank Alfalah branches, ATMs and cash deposit machines near you (through
GPS)
 Pay for your online shopping on Daraz.pk, Shophive, Dealsdaily.pk
 Set date and location reminder
 Change your daily app transaction limits
 Apply for Bank Alfalah products instantly
 Internet Banking
Alfalah Internet Banking offers you the convenience of banking from anywhere, anytime.
If you’re an Alfa customer then login using your existing ID and Password or you can
register using your Alfalah Account, Debit Card or Credit Card details. Alfalah Internet
Banking offers a range of financial services and payment facilities. These include:
 View account information or access one year’s account statement

 Pay your Alfalah Credit Card bill r view your credit cards details
 Book cinema & airline tickets
 Request for a new cheque book
 Request for address change
 Request for SMS subscription
 Request for E-Statement subscription
 Transfer funds instantly to any Bank Alfalah account or other IBFT enabled accounts
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 Top up or pay your own or anyone’s mobile bill instantly
 Pay your utility bills
 Pay your internet service charges
 Participate in electronic IPO’s
 Stay updated on all the discounts on Alfalah Credit and Debit Card
 Pay for your online shopping on Daraz.pk, Shophive, Dealsdaily.pk & many others
 Change your daily transaction limits
 Apply for Bank Alfalah products instantly
Signing Up
To register for Alfalah Internet Banking.
 Visit bankalfalah.com
 Click on “Log on” on top right corner and select registration option.
 On the registration page, select the option by clicking ‘Debit card customers or Credit
card customers or Bank Account holder’
 Fill in the required information to successfully register
 SMS Alerts
With SMS Alerts, you can keep track of your transactions 24/7. You can receive real-time
SMS alerts for transactions conducted in your account. It also helps you keep track of all
your POS, ATM, in-branch and supplementary card transactions as and when they are
conducted. You will also receive the information about your available balance with every
transactional alert and you can also update your mobile network by sending a text ‘mnp’
to Bank Alfalah’s Short Code 8287.
Benefits of SMS Alerts
 Customer can instantly receive alerts about transactional changes in his account via
SMS.
 This real-time SMS Alerts facility gives the customer complete information about their
account statements on 24/7 basis
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 There is no registration fee for SMS Alerts, however a monthly subscription fee is
applicable.
 E-Statements
With our e-statement service, you can receive Daily, Weekly, Monthly, Quarterly or Half-
yearly account statements directly via email. This facility is offered to you at no extra cost,
all you need is a personal e-mail address to which your e-statements will be sent.
Registration of E-Statement
Customer need is a valid email address upon which hewishes to receive E-Statements and
visit the branch for activation of services. Alternatively, customer can also be subscribed
by contacting the Call Center. Outbound Unit from Call Center is also contacting potential
customers for E-Statement subscription & guide them about the benefits and assist in
subscription process.
Benefits
 With E-Statement, customer can receive periodic emails

(Daily/Weekly/Monthly/Quarterly/Half-Yearly) about his account in his inbox.
 This gives the customer convenience and comfort to have the information about his/her
transactions/summary without visiting the branch.
 ATM / Cash &Cheques Deposit Machine
The ATM’s are provoking new ways to attract the customers through facilitating
transactions. The Auto Teller Machines at Bank Alfalah are continuously running and
delivering instant cash facilities to the customers any time in the day. Its ATMs allow the
customers an access to their money 24 hours a day, 7 days a week, giving you flexibility
to bank at your convenience.
 Withdraw cash using Visa, MasterCard, JCB, and Union Pay cards
 Check balance
 Get mini-statement
 Change ATM PIN
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 Transfer funds from your account to any Bank account free of charge
 Inter-Bank Funds Transfer (IBFT) is available at all ATMs. Transfer funds from your
Bank account to any other 1-Link and MNet Member Bank’s account
 Pay your utility bills for all major Utility Companies, Internet Service Providers, Phone
and Mobile TelCos
Experience digital banking at digital corners located at:
 Khayaban-e-Shahbaz Branch
 Tufail Road Branch
 Gulberg 23-H Branch
 Diplomatic Enclave Branch
Cash and Cheque Deposit Machine
 Cash Deposit to Bank Alfalah Account

 Credit Card Payment
 Cheque Deposit to Bank Alfalah Account
 ATM locator
 Fee Structur
 Contact Centre
Just when you thought our service couldn’t get easier for you, it did. Alfalah Contact Centre
has upgraded your digital payment services. Now you can pay bills, check your account
balance and even get transaction details at your convenience. It’s as easy as it sounds.
T- Pin Benefits & Its Charges:
As a Debit Card customer, you can:
 Transfer funds within Bank Alfalah accounts

 Make Alfalah Credit Card payment from your Alfalah Bank account
 Pay utility bills (PTCL, LESCO, SSGC, K-Electric, SNGPL)
 Pay mobile bills (All Telco’s; prepaid and postpaid)
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 Deactivate your debit card permanently
 Balance inquiry
 Inquire about last 10 transactions
 Product information
 Change your IVR TPIN
As a Credit Card Customer you can:
 Find out your outstanding balance

 Determine your available Credit Limit
 Get your Cash Advance Limit
Bancassurance
Our Banc assurance solutions are specially designed to help you protect and secure a stable
future with your loved ones. Partnering with leading insurance companies in the country,
we offer a diverse range of insurance plans, customized to meet your savings, education,
marriage and retirement needs at every stage in life.
 Roshni Education Plan

 Kohsar Plan
 Rida Marriage Plan
 Sahara Retirement Plan
 Rahat Savings and Protection Plan
 Rehnuma Plan
 Kamil Takaful Savings Plan
 Roshni Education Plan
Education shouldn’t be a privilege. And with the Roshni Education Plan it doesn’t need to
be. With Roshni Education plan you can feel assured that your child’s education is taken
care of even in the case of untimely death. So while we cannot know what will happen in
the future, at the very least we can be prepared for it. After all, we need to ensure that our
children have access to every opportunity to allow them to be the best they can be.
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Bank Alfalah Limited in partnership with Jubilee Life Insurance Company Limited offers
Roshni Education Plan.
 All your invested premiums are completely secure. This means at the time of maturity
of the plan you get the entire cash value accumulated during the term of the plan.
 It is a flexible plan which gives you the ability to select the sum assured of your choice.
 If the life assured expires during the term of the plan, his beneficiaries will be entitled
to the sum assured or the cash value, whichever is higher. You can determine the sum
assured by multiplying your annualized basic premium amount by the selected cover
multiple (offered from 5 to 254)* depending on your savings and insurance needs. For
example, if your annual basic premium contribution is PKR 100,000 and you have
selected a cover multiple of 10, your total sum assured would be 100,000 x 10 =
1,000,000.
 The range of cover multiples available to the policy holder varies with the age at the
time of entry of the life assured.
 Your contributions will be invested in the fund(s) of your choice (Meesaq, Managed,
Capital Growth or Yaqeen Growth Fund) which are managed by expert investment
managers and backed by premium financial securities, in order to ensure optimized
returns with manageable risk exposure.
Eligibility
The plan is available to all Bank Alfalah Limited customers between 18 to 65 years of age.
Term of Plan
 Minimum Term: 10 year

 Maximum Term: 57 years
50
Disclaimer:
The product is underwritten by Jubilee Life Insurance Company Limited. It is not

guaranteed or insured by Bank Alfalah Limited or its affiliates.
 Kohsar Plan.
Life is all about goals – be it having a well-furnished house, educating your children or
taking your family on a holiday. The Kohsar Plan for life insurance is designed to give
optimised returns on savings and investments. So go ahead and plan. We can help you
reach your goals.
Kohsar Plan.
 All your invested premiums are completely secured. This means at the time of maturity
of the plan you get the entire cash values of the policy accumulated during the term of
your plan
 It is a flexible plan which gives you the ability to select the sum assured of your choice
 You can determine the sum assured by multiplying your annualized basic premium
amount by the selected cover multiple (from 5 to 10) depending on your savings and
insurance needs. For example, if your annual basic premium contribution is PKR
250,000 and you have selected a cover multiple of 10, your total sum assured would be
250,000 x 10 = 2,500,000.
 If the life assured expires during the term of the plan, his/her beneficiaries will be
entitled to the sum assured or the cash value of the policy, whichever is higher.
51
Eligibility
Term of Plan
 Minimum Term: 10 years

Disclaimer:

 Rida Marriage Plan
Every family needs to have a plan. Before you know it, your child’s wedding day can be
upon you. And with the joys, come the expenses. With the Rida Marriage Plan you can
make scheduled payments as a means to save over time. This will alleviate the stress of a
family wedding, so that you can concentrate on what’s important – the happiness of the
occasion.
Rida Marriage Plan.
 All your invested premiums are completely secured. This means at the time of maturity
of the plan you get the entire cash values of the policy accumulated during the term of
your plan.
 This is a flexible plan which gives you the ability to select the sum assured of your
choice.
amount by the selected cover multiple (from 5 to 15) depending on your savings and
insurance needs. For example, if your annual basic premium contribution is PKR
52
100,000 and you have selected a cover multiple of 10, your total sum assured would be
100,000 x 10 = 1,000,000.
 The maximum sum assured that can be selected under Rida Marriage Plan is PKR
3,000,000. If the life assured expires during the term of the plan, his/her beneficiaries
will be entitled to the sum assured or the cash value of the policy, whichever is higher.
Eligibility
Term of Plan

Disclaimer

 Sahara Retirement Plan
Retirement marks a milestone in every man’s life. And with careful planning it can be a
milestone to look forward to. The Sahara Retirement Plan helps ensure that you are able to
maintain the standards you have become accustomed to. It can provide financial security
for you and your family as you embark on this new phase of life. So start planning today
for a life of leisure tomorrow.
53
Sahara Retirement Plan.
Feature and Benefits
o All your invested premiums are completely secure. This means at the time of maturity of
the plan you get the entire cash value of the policy accumulated during the term of your
plan. If the age of the policy holder at the time of maturity is 55 years or above, he/she
will also have the option to use the cash value to buy a pension, especially customized
for individuals who prefer a steady stream of income instead of a lump sum amount at
the time of retirement.
o In case of an early death within the term of the plan, your beneficiaries will receive the
sum assured plus the basic plan premium which has been paid or cash value, whichever
is higher.
o Your contributions will be invested in the fund(s) of your choice (Meesaq, Managed,
Eligibility
Term of Plan

Disclaimer:

54
 Rahat Savings and Protection Plan
Behind every success, there is a woman. We stand with you, no matter what role you play.
Be it entrepreneur, a mother or a daughter, we understand your needs. With that in mind
we present Rahat Savings and Protection Plan – designed exclusively for you with Jubilee
Life Insurance Company Limited. This is an insurance plan that is tailored to meet your
needs. The plan allows you to invest for yourself or your loved ones and secure a bright
future no matter what comes.
Rahat Savings and Protection Plan.
Feature and Benefits
to the sum assured or the cash value, whichever is higher.
amount by the selected cover multiple (offered from 5 to 254)* depending on your
savings and insurance needs. For example, if your annual basic premium contribution
is PKR 100,000 and you have selected a cover multiple of 10, your total sum assured
would be 100,000 x 10 = 1,000,000.
55
Eligibility
Term of Plan

 Rehnuma Plan
It’s never too early to start planning for the future. Simply because we do not know what
it holds. No matter what unforeseen need you are faced with, the Rehnuma Plan can fill it.
With affordable and Flexible options for payments, the Rehnuma Plan allows you to save
at a rate that is suited to you. So go ahead and plan. Because you are ready for that rainy
day.
Rehnuma Plan.
1,200,000.
56
Eligibility
Term of Plan

Disclaimer:

 Kamil Takaful Savings Plan
It’s never too early to start planning for the future. Simply because we do not know what
it holds. No matter what unforeseen need you are faced with, the Kamil Takaful Savings
Plan can fulfill it. With exile payment options, it can be a true savior for the rainy day.
Bank Alfalah Limited in partnership with Jubilee Life Insurance Company Limited –
Window Takaful Operations offers Kamil Takaful Savings Plan.
 All your invested contributions are completely secure. This means at the time of
maturity of the plan you get the entire cash value accumulated during the term of the
plan.
57
1,000,000.
 Your contributions will be invested in the fund(s) of your choice (Managed Takaful
Fund and Capital Growth Takaful Fund) which are managed by expert investment
Eligibility
Term of Plan

Disclaimer:
The product is underwritten by Jubilee Life Insurance Company Limited – Window

Takaful Operations . It is not guaranteed or insured by Bank Alfalah Limited or its
affiliates.
58
Some Services of Bank Alafalah LTD.
In addition to the above mentioned products offerings by the bank, we are engaged in
providing some extraordinary facility services to our customers as well. The details are as
under:
 Bank Alfalah Rupee Traveler Cheques
Rupee traveler’s cheques are being pioneered by MCB Bank limited initially but these days
many banks are engaged in providing this service to the clients. Rupee traveler cheques are
been issued at different denominations at Bank Alfalah.
 Relationship Banking
Relationship banking is basically a term been used for the purpose of the banking 365 days
all along and 24 hours a day. The Bank prides itself on recognizing and fulfilling the varied
financial needs of its customers. In doing so, it tries to develop and build upon relationships
that are based on mutual trust and confidence: the very essence of what they call
"Relationship Banking". A customer can operate his account from any branch in the
country, or through its 24-hour ATMs.
 Bank Alfalah Lockers
Before disclosing the details of lockers facility by the bank, a quote needs to be mentioned,
“If your jewellery has been giving you sleepless nights, and the prize bonds tucked in
the bottom drawer make you feel tense, it's time to discover peace of mind.”
Bank Alfalah provides safe deposit locker facility to its customers for safe keeping of their
valuables like documents, securities and jewellery etc. For the snatching of the peace of
mind, Bank Alfalah is the best Trustee amongst all. Because of the reasons that the bank is
providing extraordinary services for the easy lockers.
59
 Phone Banking
24 hours UAN connectivity with unmatched ease and convenience servers our customers
efficiently through interactive Voice Response delivering cards, PIN generation and other
services.
 Miscellaneous Services:
 Issuance of Pay Order
 Issuance of Demand Draft
 Collection of Local, outstation and foreign bills
 Import export facilitation
3.2: Price
The term pricing refers to:
“The key to pricing is to Build value into the product and price it accordingly.”
Bank Alfalah has to face the ever-increasing competition in the fabric industry. As the
number of competitors are increasing day by day but still Bank Alfalah enjoys a reasonable
market share with the facts of providing excellent services amongst the competitors.
BAL provides different products and services to its customers, which have been discussed
in previous section. Pricing of products means the commission to be paid by the customer
in return of services provided by the bank. The price paid for the services mainly include:
 Mark up
 Bank charges
 Fees and bank commission etc.
These charges and commissions are prescribed on Schedule of Bank Charges (SOC) that
keeps on changing time-to-time, and issued by the bank periodically (generally after six
months).
60
3.3: Place
Pricing refers to the following methodologies taken by an organization:
“Various activities the company undertakes to make the product accessible and
available to the target customers”
Also,
“Its can be viewed as set of interdependent organization involved in the process of

making a product or service available for use or consumption”
Place refers to the means by which our customer acquires your product. This includes the
actual place it is purchased (the shop, the telephone, the web page, the warehouse) as well
as the actual route of distribution. Simply place refers how you will sell your product to
your customers.
The objective of Bank Alfalah’s has always been to expand its branch network to meet
clients’ needs as has been mentioned clearly in the mission statement of the bank. . Bank
is well positioned and geographically poised, to cater for increased business demands, from
its existing potential clientele. Bank Alfalah has 195 branches, spread all over Pakistan
covering major business centers and principle cities. Bank plans to add more branches to
his growing network in the ensuing years.
At present, Bank Alfalah has opened all its branches at commercial and business areas or
near to commercial areas so that the customers or clients face no problem in reaching the
bank. Head Office of Bank Alfalah is situated in Karachi. The detail description of its
branches in Lahore is as follows:
61
Branches in Lahore
L. D. A. Plaza Branch Kashmir Road Lahore
Gulberg, Lahore Branch 125/E-1,Gulberg-III, Lahore
Defence Lahore Branch G-9, Commercial Area, Phase-I, ICCHS (Defence), Lahore
Cantt. Lahore
Circular Road, Branch Circular Road, Lahore
Township Branch 47, B/1, Block 10, Akber Chowk, Township, Lahore
Badami Bagh Branch 29-30,PECO Road, Badami Bagh, Lahore
Allama Iqbal Town 36, College Block, Allama Iqbal Town, Lahore
Branch
Shah Alam Market Hilal-e-Ahmar Complex, Shah Alam Market, Lahore
Shadman Branch Bunglow No. 88, Shadman - 1, Lahore
Tufail Road, Lahore 50/3, Tufail Road, Lahore Cantt

Cantt
62
Lahore Stock Exchange Basement Level 2, Lahore Stock Exchange Building, 19,
Khayaban-e-Iqbal, Lahore
IBD- New Garden Town Awami Complex, Block 1, New Garden Town, Lahore
Baghbanpura, Lahore 268, G.T. Road, Baghbanpura, Lahore
Ravi Road, Lahore 13, Ravi Road, Lahore
Thoker Niaz Beg Raiwind Road, Lahore
Shahdin Manzil Faysal Chowk, Lahore
Liberty Market 10-C, Commercial Area, Liberty Market, Gulberg III, Lahore
Azam Cloth Market Rehman Centre, Akbar Block, Azam Cloth Market, Lahore
Shadbagh 37,Umer Din Road, Wassanpura, Lahore
Defence Extension Divine Centre, Near Bhatta Chawk, New Airport Road,
Lahore Cantt
Urdu Bazar Urdu Bazar, Lahore
Shahdara Branch Main G.T Road, Shahdara Chowk, Lahore
63
Walton Road Branch E-28/A, Main Walton Road, Lahore
Brandreth Road Branch 91-A, Brandreth Road, Near Australia Building, Lahore
Ghari Shahu Branch 99-A, Allama Iqbal Road, Ghari Shahu, Lahore
DHA Phase II Branch, 65 CCA, Phase II, DHA, Lahore

Lahore
Model Town, Lahore 13 Bank Square, Central Commercial Market, Model Town,
Lahore
Cavalry Ground, Lahore 35 Main Boulevard, Officers Housing Scheme, Cavalry

Ground Lahore
Chuburji 24, Niaz View Scheme, Rewaz Garden, Chuburji, Lahore
Main Market Gulberg 32-E-Main Market, Gulberg II, Lahore
64
3.4: Promotion
Promotion is a term that refers to the following statement:
“Steps taken by the company to enhance its sales by focusing the target markets”
Thus we can say that promotion can be categorized into different categories based on the
above mentioned marketing perspective definition of promotion. So advertisement, sales
force, billboards etc are major sources through which the promotion scheme can be
implemented.
This is an age of competition. Numerous organizations are providing financial services to

the customer. These days every one is facing pressure of competitors. In this world of
growing competition, the only way to survive and grow, for an organization, in the market
place is the proper marketing and promotion of its products. Same is the case with banking
companies. There is large number of foreign and local banks working in the country and it
has been noticed that they are emphasizing much on their marketing strategies. In this
scenario, the key for a bank to succeed and attract its customers is adequate promotion of
its products &services. The bank can attract and retain its customers through:
 Sales Promotion
 Advertisement
 Direct Marketing
 Public Relations
The most prominent and important way to attract a large number of customers is the
advertisement of bank and its products/services. Bank Alfalah has adopted different
approaches for the accomplishment of this purpose. For example, formation of Alfalah
Mini Golf near Gulberg is a major step taken by BAL. It not only provides a source of
recreation to the people but it serves as a major source of marketing for the bank. Due to
Bank Alfalah’s assistance for the construction of fountain in Liberty Market Square, it is
named as Bank Alfalah Square. BAL Square, for being situated in such a business and
commercial area has its unusual importance and has resulted into bank’s promotion.
65
Construction of Shaahdin Manzil as main branch Lahore is going to be the revolutionary
step for Bank Alfalah. It would not serve just as a main branch only, but it would also be a
great source of ever growing marking and promotion of bank.
Bank Alfalah issued its own rupee travellers cheques with highest denomination during the
course of my internship. I have seen some colored advertisements of RTC’s in some well-
known magazines like Herald. Also, some fascinating advertisements have been printed on
Daewoo City Busses, which serves as a dynamic source of marketing.
However, one drawback or shortcoming is that, Banl Alfalah has formalized a lot of
products and services for its customers, even more than other commercial banks, but any
advertisement on electronic media has not been seen. Since, Bank Alfalahs major
competitor, Union Bank Limited has started large media campaign, so keeping in view
these threats; Bank Alfalah is emphasizing more on its advertisement.
Along with the advertisement, the bank is providing personal services to its clients with
maximum security as other banks provide. Bank also encourages the public relation policy
of marketing.
Some brochures and promotional material has been printed but it is distributed mainly
through the clients who visit the branch for their day-to-day business or through the
customers who come to get information about new schemes launched by the bank.
66
Chapter 4
Financial Analysis
All the stakeholders like investors and creditors take benefit from the firm’s financial
statements. The type of analysis varies according to the specific interest of the party
involved. Similarly, objectives of the financial statements analysis vary from person to
person.
 Trade creditors are primarily interested in the liquidity of the firm. Their claims are
short terms, and the ability of the firm to pay their claims quickly is best judged by an
analysis of the firm’s liquidity.
 Bondholders are more interested in the cash flow ability of the firm to service a debt
over a long period of time. They may evaluate their ability by analyzing the capital
statement of the firm.
 Investors usually focus on the profitability of the firm. They would be concerned with
the financial conditions insofar as it affects the ability of the firm to pay dividends and
avoid bankruptcy
 Management employees financial analysis for the purpose of internal control and to
better provide what capital suppliers seek in financial conditions and performance from
the firm
 Management needs to undertake the financial analysis in order to plan and control
effectively. And it helps them in decision making as well.
 A conceptual framework for the financial analysis provides analysis with an
interlocking means for strengthening the analysis.
 Financial ratios are the tools which are used to analyze the financial conditions and
performances
 Finally, financial statement analysis deals with the outcomes of the past decisions and
leads to the future planning.
67
4.1 Horizontal Analysis
A horizontal analysis, or trend analysis, is a procedure in Fundamental Analysis in which

an Analyst compares ratios or line items in a company's Financial Statements over a
certain period of time. The analyst uses his discretion when choosing a particular timeline;
however, the decision is often based on the investingTime Horizon under consideration.
Statement of Financial Position
Assets 2013 2014 2015 2016
Cash and balances with treasury banks 100% -17.46% 1.90% 21.02%
Balances with other banks 100% -64.53% -52.30% -72.68%
Lending to financial institutions 100% 626.14% 995.40% 1095.43

%
Investments – net 100% 47.63% 92.78% 77.37%
Advances – net 100% 11.43% 28.14% 45.23%
Total current assets 100% 20.23% 49.28% 52.36%
Operating fixed assets 100% 6.10% 16.73% 22.80%
Deferred tax assets 100% 100.00% 100.00% -100.00%
Other assets 100% 90.60% 32.95% 16.36%
Total Assets 100% 21.54% 47.76% 50.38%
68
Liabilities
Bills payable 100% 23.21% 2.00% 35.03%
Borrowings 100% 138.95% 645.80% 673.13%
Deposits and other accounts 100% 15.31% 21.81% 21.95%
Sub-ordinated loans 100% -0.04% -0.08% -16.75%
Other liabilities 100% 27.88% 34.35% 30.72%
Total liabilities 100% 20.50% 46.55% 48.14%
NET ASSETS 100% 40.49% 69.56% 90.98%
REPRESENTED BY
Share capital 100% 17.65% 17.84% 18.24%
Reserves 100% 69.61% 94.72% 118.52%
Unappropriated profit 100% 28.18% 70.85% 137.04%
Total equity attributable to the equity 100% 33.82% 51.69% 75.57%

holders of the Bank
Non-controlling interest
Surplus on revaluation of assets - net of 100% 92.38% 200.95% 201.86%

tax
100% 40.49% 69.56% 90.98%
69
Interpretation of Assets:
There is an increasing trend in the percentage of total current assets of Bank Alfalah. There
is a big increase in its assets. The percentage of its current assets in 2014 was 20.23% then
it increased in 2015 to 49.28%, which is a very big growth percentage and is too much
favorable for the bank, and in 2016, it increased to 52.36%. although this is not a big growth
rate as compared to the growth in 2015, but still it is very favorable for the good financial
position and marketing position of the bank.
The percentage of total assets in 2014 was 21.54%, then it increased in 2015 to 47.76%
which is also a very big growth rate and it appears due to the big increase in the percentage
of investments which increases from 47.63% in 2014 to 92.78% in 2015, which effects a
huge increase in the total assets also. Finally, it increased from 47.76% in 2015 to 50.38%
in 2016. Although it is not a big growth of the assets but it shows that there is an increasing
trend in its total assets, which is favorable for the bank. It shows that the financial and
market position of the bank is good that’s why it is not losing its assets.
Interpretations of Liabilities:
There is an increasing trend in liabilities of Bank Alfalah, which is not favorable for the
bank because any organization or bank is considered financially weak if its liabilities are
on the increasing trend. As we can see that the percentage of bills payable in 2014 was
23.21, then it decreased in 2015 to 2.00% which was favorable for the bank. But again in
2016 the bills payable increased from 2.00% to 35.03% which shows a big drop in the
financial position of the bank.
The borrowings in 2014 were 138.95% then it increased with a high percentage of 645.80%
in 2015 which shows the worst position of Bank Alfalah. The in 2016, it increased to
673.13%. although it is not a big difference as compared to the difference in 2014 and
2015, but a slight increase in the borrowings affect a lot to the financial and market position
of the bank.
Deposits, sub-ordinated loans and other liabilities also increased year by year which affect
the percentage of total liabilities of the bank. As a result, the total liabilities of bank in 2014
70
were 40.49% which increased in 2015 to 46.55% which is a very big increase in liabilities
and it resulted due to the big increase in borrowings of the bank in 2015. After that the
percentage of liabilities increased in 2016 by 48.14%. It shows an increasing trend in the
liabilities of the bank which is fully unfavorable for the life and market position of the
bank.
Interpretation of Net Assets:
There is an increasing trend in the percentages of the net assets of Bank Alfalah which is
in favor of the bank. Although, there was a high growth in the liabilities of the bank but the
assets of the bank were also increasing year by year with a high growth rate. Collectively,
the growth of assets was high as compared to the liabilities, that’s why there is an increasing
trend in the net assets. It shows that Bank Alfalah is still in a stable position to survive in
the banking industry because after having a high percentage of borrowings, it still have
resources which may help it in the bad times.
71
Income Statement
Particulars 2013 2014 2015 2016
Mark-up / return / interest earned 100% 25.97% 39.76% 30.22%
Mark-up / return / interest expensed 100% 23.79% 21.22% 5.20%
Net mark-up / interest income 100% 29.47% 69.44% 70.29%
Provision against non-performing loans 100% 51.69% 125.26% 13.40%

and advances – net
Provision for diminution in the value of 100% -9.39% 44.19% 6.30%

investments – net
Bad debts written off directly 100% -99.88% - -
100% 45.57% 117.05% 12.30%
Net mark-up / interest income after 100% -87.16% 66.28% 74.15%

provisions
Non-markup/interest income
Fee, commission, brokerage income 100% 11.41% 56.56% 66.69%
Dividend income 100% 2.03% 6.60% 21.19%
Income from dealing in foreign currencies 100% 33.02% -10.20% -27.03%
Gain on sale of securities net 100% -33.40% 1.12% 5.84%
72
Unrealized gain on revaluation of
investment
Classification as held for trading- net 100% 1791.29% 2606.00% -98.71%
Other Income 100% 16.13% -59.85% -56.36%
Total non-markup/interest income 100% 9.15% 7.04% 7.12%
100% 21.79% -85.41% 51.14%
Non-markup/interest expense
Administrative Expenses 100% 17.19% 27.00% 35.48%
Provision against off balance sheet 100% 1731.10% -49.24% -457.52%

obligations
Provision against other assets 100% -319.70% -291.52% -36.95%
Other charges 100% 11.91% 78.84% -35.80%
Total non-markup/interest expenses 100% 20.50% 30.53% 35.34%
100% 25.07% 85.16% 91.31%
Extra ordinary/unusual items
Profit before taxation 100% 25.07% 85.16% 91.31%
Taxation
Current 100% 30.09% -79.13% 95.37%
Deferred 100% 81.20% 211.55% -647.62%
Prior years 100% -134.93% -616.19% 297.56%
73
Total 100% 34.79% 138.42% 140.39%
Profit after taxation 100% 20.64% 60.88% 68.95%
Interpretation of Income Statement:
There is an increasing trend in the interest income of Bank Alfalah. In the year 2014, it was
29.47%, then in 2015 it increased with a high growth from 29.47% to 69.44%. it is a very
big increase, which shows that the bank has earned its most of the interest income in the
year 2015. After 2015, the interest income increased to 70.29% which is a very slight
increase in its interest income. It shows that the growth rate of interest income was low in
the year 2016.
After the provisions, the percentage of interest income in 2014 was -87.16%. then it
increased in 2015 to 66.28% which is a very big increase and is shows that the financial
position of the bank was good in the year 2015. After that, the percentage of interest income
after provisions in 2016 increased to 74.15%.
After excluding admin and other expenses we get the percentages of profit before tax.
There is also an increasing trend in profit before taxation. In the year of 2014, the
percentage was 25.07% which increases with a high growth rate in 2015 by 85.16% and
then in the year of 2016, it increased to 91.31% which is favorable for the bank.
After deductions of taxes, we get the profit after tax and that is the final profit of the bank.
The percentage of profit after tax in the year 2014 was 20.64%. it increased in the year
2015 to 60.88% with a big growth rate. Then in 2016, the percentage of the profit after tax
increased to 68.95%.
All of the horizontal analysis shows that the year 2015 was the best year for the bank.
Because in 2015, the bank earned a huge percentage of income as compared to the other
two years.
74
4.2: Vertical Analysis:
Vertical analysis is a method of Financial Statement Analysis in which each entry for
each of the three major categories of accounts, or assets, Liabilities and equities, in a
Balance Sheet is represented as a proportion of the total account. Vertical analysis is also
used across other financial statements as a percentage measure.
Assets 2016 2015 2014
Cash and Balances with Treasury Banks 8% 7% 7%
Balances with other banks 1% 2% 2%
Lending to Financial Institutions 4% 3% 2%
Investments-net 42% 47% 44%
Advances-net 41% 37% 40%
Fixed Assets 2% 2% 2%
Deferred tax Assets 0% 0% 0%
Other Assets 2% 2% 3%
100% 100% 100%
Liabilities
Bills Payable 1% 1% 2%
Borrowing 19% 19% 7%
Deposits and other accounts 70% 71% 82%
75
Subordinated Loans 1% 1% 1%
Deferred tax Liabilities 0% 0% 0%
Other Liabilities 2% 2% 2%
93% 94% 94%
Shareholder's Equity
Share Capital 2% 2% 2%
Reserves 2% 2% 2%
Unappropriated Profit 2% 1% 1%
Surplus on Revaluation of Fixed Assets-net of 1% 1% 1%

tax
7% 6% 6%
Total Liabilities and Shareholder's Equity 100% 100% 100%
Interpretation of Assets:
There is an increasing trend in the assets of Bank Alfalah in the year 2014-2016. During
this time period, the cash percentage increased in 2016 as compared to the previous years,
which is in favor of the bank. Like cash, its percentage of lending to other institutions and
advances also increased which is favorable for the bank. Although its balances, investments
and other assets decreased but the decrease is not so high that’s why it is not unfavorable
for the bank. The condition of bank with this decrease is still favorable.
Interpretation of Liabilities:
There is a decreasing trend in the liabilities of Bank Alfalah because the total liabilities are
decreased in 2016. It is seen that the percentage of its bills payable, deposits and other
76
liabilities decreased in the year 2016 as compared to 2014 and 2015 which is favorable for
the bank. While the borrowings of bank are increasing year by year which is fully
unfavorable for the bank because increasing in the borrowings of the bank shows the weak
financial position of the bank.
Interpretations of Shareholder’s Equity:
There is an increasing trend in the percentage of total shareholder’s equity. In 2016, the
unappropriated profit of the bank increased as compared to the year 2014 and 2015, which
is favorable for the bank. While the capital, reserves and surplus of the bank are stable in
the year 2014-2016.
Income Statement
Particulars 2016 2015 2014
Mark-up / return / interest earned 100% 100% 100%
Mark-up / return / interest expensed 49.74% 53.41% 60.50%
Net mark-up / interest income 50.26% 46.59% 39.50%
Provision and Write-offs 2.07% 3.72% 2.77%
Net mark-up / interest income after provisions 48.19% 42.87% 36.73%
Non-mark-up/interest Income 15.49% 14.42% 16.02%
Non-mark-up/interest expenses 40.93% 36.78% 37.38%
Profit Before Taxation 22.75% 20.51% 15.37%
Taxation 8.95% 8.27% 5.19%
Profit After Taxation 13.80% 12.24% 10.18%
77
Interpretation of Income Statement:
There is an increasing trend in the income statement of the Bank Alfalah. As we can see
that the percentage of interest income was 39.50% in 2014, 46.59% in 2015 and in 2016,
it increased to 50.26%, which is a big achievement of the bank and is very favorable for
the bank. The percentage of interest income after provisions and profit before tax also
increased in 2016 as compared to the previous years. As a result, profit after tax also
increased in 2016, which is a big achievement of the bank and is very favorable for the life
and market position of the bank.
4.3: Ratio Analysis:
Ratio Analysis is a form of Financial Statement Analysis that is used to obtain a quick
indication of a firm's financial performance in several key areas.
1. Gross Yield on Average Earning Asset:

Net yield represents total interest income divided by earning assets. Net interest margin
represents net interest income as percentage of average interest earning assets. Spread is
the difference between gross yield and the average effective rate paid on all interest-bearing
assets.
Gross Yield on Average Earning Asset =𝐈𝐧𝐭𝐞𝐫𝐞𝐬𝐭 𝐈𝐧𝐜𝐨𝐦𝐞⁄𝐄𝐚𝐫𝐧𝐢𝐧𝐠 𝐀𝐬𝐬𝐞𝐭𝐬
Company Bank Alfalah
Years 2016 2015 2014
Interest Income 28770222 2862750 28,647,685
Earning Assets 83444507 78920997 62847356
Ratio 34.48% 36.34% 45.58%
78
50.00% 45.58%
40.00% 34.48% 36.34%
30.00%
20.00%
10.00%
0.00%
2016 2015 2014
Gross Yield on Average Earning Assets
The table shows the gross yield on average earning assets of Bank Alfalah is in decreasing
trend from year2014 to 2016. In year 2014, the percentage is 45.58% and in year 2016 the
percentage decreases to 34.48%. The Graph shows the decreasing trend of Bank Alfalah’s
Gross yield on earning Assets. The ratio percentage is continuously decreasing from 2014
to 2016, which is not better for the bank.
2. Gross Spread:
The gross spread is the compensation that the underwriters of an initial public offering
(IPO) make to cover expenses, management fees, commission (or takedown) and risk. The
majority of profits that the underwriting firm earns through the deal are often achieved
through the gross spread.
Gross Spread = 𝐓𝐨𝐭𝐚𝐥 𝐈𝐧𝐜𝐨𝐦𝐞 𝐄𝐚𝐫𝐧𝐞𝐝⁄𝐈𝐧𝐜𝐨𝐦𝐞 𝐁𝐞𝐟𝐨𝐫𝐞 𝐓𝐚𝐱
Years 2016 2015 2014
Total Income Earned 7,899,908 5,640,851 4,675,950
Income Before Tax 13,023,159 12,604,070 8,513,566
Ratio 60.66% 44.75% 54.92%
79
0.8
0.61
0.55
0.6 0.45
0.4
0.2
0
2016 2015 2014
Gross Spread Column1 Column2
The table shows increasing trend from 2015 to 2016 but the table shows decreasing trend
from 2014 to 2015. In year 2016, the percentage is much better than previous two years.
This ratio shows that the compensation for underwriters in much better in year 2016 in
comparison of last two years.
In 2014 the banking spread is in a better condition which is 54.92%. Bank Alfalah need to
maintain more spread because in 2014 the credit rating is very risky. But in 2015Bank
Alfalah cannot maintain the spread which is 44.75% that is not better than 2014’sspread of
bank. In 2016 bank has improved its more spread rate than previous years.
3. Current Ratio:
The current ratio is a liquidity ratio that measures a company's ability to pay short-term and
long-term obligations. To gauge this ability, the current ratio considers the current total
assets of a company (both liquid and illiquid) relative to that company's current total
liabilities.
Current Ratio = 𝐂𝐮𝐫𝐫𝐞𝐧𝐭 𝐀𝐬𝐬𝐞𝐭𝐬⁄𝐂𝐮𝐫𝐫𝐞𝐧𝐭 𝐋𝐢𝐚𝐛𝐢𝐥𝐢𝐭𝐢𝐞𝐬
80
Years 2016 2015 2014
Current Assets 105157726 106547347 81160841
Current Liabilities 832142279 822315862 672954295
Ratio 0.13 0.13 0.12
0.132 0.13 0.13

0.13
0.128
0.126
0.124
0.122 0.12
0.12
0.118
0.116
0.114
2016 2015 2014
Current Ratio
The current ratio of Bank Alfalah indicates that the bank is able to meet its short-term
obligations more effectively and efficiently. The current ratio of Bank Alfalah is from 2014
to 2015 increases but equal in 2016. But instead the current ratio is favorable. The higher
current ratio is preferred for better liquidity.
The graph of current ratio shows decreasing trend. There is increasing trend in 2014 to
2015 and equal in 2015 to 2016 of Bank Alfalah. In 2014, it is 0.12, in 2015, the current
ratio for Bank Alfalah remains the same, which is 0.13. Overall current ratio of Bank
Alfalah in all three years is better reflecting liquidity.
81
4. Operating Profit Margin:
Operating margin is a margin ratio used to measure a company's pricing strategy and
operating efficiency. Operating margin is a measurement of what proportion of a
company's revenue is left over after paying for variable costs of production such as wages,
raw materials, etc.
Operating Profit Margin = 𝐏𝐫𝐨𝐟𝐢𝐭 𝐛𝐞𝐟𝐨𝐫𝐞 𝐓𝐚𝐱⁄𝐈𝐧𝐭𝐞𝐫𝐞𝐬𝐭 𝐄𝐚𝐫𝐧𝐞𝐝
Years 2016 2015 2014
Profit before Tax 13,023,159 12,604,070 8,513,566
Interest Earned 57,244,690 61,458,407 55,378,477
Ratio 23% 21% 12%
25% 23%
21%
20%
15% 12%
10%
5%
0%
2016 2015 2014
Opetrating Profit Margin
82
The table shows operating profit margin of Bank Alfalah. It is also a pure profit for Bank
Alfalah because it only measure profits earned on operations. It is increasing from 2014 to
2106. It is higher in year 2016 which is 23%. The higher the operating profit is, the better
it is for the organization. Higher operating profit margin is preferred.
The graph depicts the increasing trend in operating profit margin. It increases from 12% to
21% in year 2015 and slightly increases in 2016 by 23%. The year 2016 is better in
profitability performance.
5. Total Debt to Equity:
The debt-to-equity ratio (D/E) is a financial ratio indicating the relative proportion of
shareholders' equity and debt used to finance a company's assets.
Total Debt to Equity = 𝐓𝐨𝐭𝐚𝐥 𝐋𝐢𝐚𝐛𝐢𝐥𝐢𝐭𝐢𝐞𝐬⁄𝐒𝐡𝐚𝐫𝐞𝐡𝐨𝐥𝐝𝐞𝐫 ′ 𝐬𝐄𝐪𝐮𝐢𝐭𝐲
Years 2016 2015 2014
Total Liabilities 857,332,291 849254346 698,309,225
Shareholder’s 60,124,762 5335375 44,819,068

Equity
Ratio 14.26 15.92 15.58
16.5
15.92
16 15.58
15.5
15
14.5 14.26
14
13.5
13
2016 2015 2014
Total Debt to Equity
83
Total debt to equity ratio of Bank Alfalah is decreasing from year 2014 to 2016 by 15.58
to 14.26. This ratio indicates that how many times the credit or debt financing is to the
equity capital. In year 2016, the debt financing is 15.58 times to every $1 of equity
financing. The year 2016 shows lowest debt to equity ratio for Alfalah.
Total debt to equity graph shows increasing trend from 2014 to 2015 and decreasing trend
from 2015 to 2016. In 2014, debt to equity ratio is 15.58, in year 2015 it increases to 15.92.
Again, it increases to 14.26 in year 2016. This ratio indicates the ability to generate new
funds from capital market. year 2016 is better in generating new funds from equity capital.
6. Gross Profit Margin:
Gross profit margin is a financial metric used to assess a company's financial health and
business model by revealing the proportion of money left over from revenues after
accounting for the cost of goods sold (COGS). Gross profit margin, also known as gross
margin.
Gross Profit Margin = Interest Income⁄Interest Earned
Years 2016 2015 2014
Interest Income 28770222 28627150 21,873,474
Interest Earned 57244690 61437872 55,378,477
Ratio 50.25% 46.6% 39.5%
84
Gross profit margin of Bank Alfalahis increasing from 2014 to 2016. In 2016, the gross
profit margin is higher relative to previous years that is better for Bank Alfalah. The higher
gross profit margin indicates that the merchandise costs of the organization is lower. The
higher the gross profit margin is the better it is for an organization.
Chart Title
60.00%
50.00%
40.00%
30.00%
20.00%
10.00%
0.00%
2016 2015 2014
Gross Profit Margin
The graph shows increasing trend of gross profit margin. In 2014, the gross profit margin
is 39.5%. In 2015, the gross profit margin is 46.6% and in 2016, it is 50.25%. The year
2016 is better in indicating higher gross profit margin.
7. Net Profit Margin:

Net profit margin is the percentage of revenue left after all expenses have been
deducted from sales. The measurement reveals the amount of profit that a business
can extract from its total sales.
Net Profit Margin = Profit after Tax⁄Interest Earned
85
Years 2016 2015 2014
Profit after Tax 7899908 7522810 5,640,851
Interest Earned 57244690 61437872 55,378,477
Ratio 13.80% 12.24% 10.19%
The table shows net profit margin of Bank Alfalah. It is also a pure profit for BankAlfalah
because it only measures total profit earned. It is increasing from 2014 to 2106. It is higher
in year 2016. The higher the net profit is, the better it is for the organization. Higher net
profit margin is preferred.
Chart Title
16.00%
14.00%
12.00%
10.00%
8.00%
6.00%
4.00%
2.00%
0.00%
2016 2015 2014
Net Profit Margin
The graph depicts the increasing trend in net profit margin. It increases from 10.19% to
12.24% in year 2015 and slightly increases in 2016 by 13.80%. The year 2016 is better in
profitability performance.
86
8. Cash Turnover:
Cash Turnover is the amount of times a company has spent through its cash during
the reporting period. We calculate cash turnover based on a company's revenues
over the average cash balance during that period. High cash turnovers can mean
that a company is going through its cash cycles quickly.
Cash Turnover = Interest Earned⁄Average Cash
Years 2016 2015 2014
Interest Earned 57244690 61437872 55,378,477
Average Cash 68220087 56442217 81117992
Ratio 0.84 1.08 0.68
Table shows cash turnover ratio for Bank Alfalah. The ratio is decreasing from 2014 to
2015. The ratio shows decreasing trend from 2015 to 2016. The higher the cash turnover
ratio is higher the bank is utilized its cash efficiently. Year 2014 is better reflecting the cash
turnover ratio in which the bank generates highest income by utilizing its cash properly as
compare to other two years in which this ratio is low.
87
Chart Title
1.2
1
0.8
0.6
0.4
0.2
0
2016 2015 2014
Cash Turnover
This graph depicts the decreasing trend of Bank Alfalah cash turnover ratio. In year 2014,
cash turnover for Bank Alfalah is 0.68 which means the bank 0.68 times replenish it cash
during reporting period. In year 2015, it is 1.08 and in year 2016 it is 0.84, which is lower
than the other two years.
9. Total Asset Turnover:

The asset turnover ratio is an efficiency ratio that measures a company's ability to
generate sales from its assets by comparing net sales with average total assets. In
other words, this ratio shows how efficiently a company can use its assets to
generate sales.
Total Asset Turnover = Interest Earned⁄Average Total Assets
Years 2016 2015 2014
Interest Earned 57244690 61437872 55,378,477
88
Average Total 910032287 822867907 677288959
Assets
Ratio 0.06 0.07 0.08
The total asset turnover ratio decreases from year 2014 to 2016. Which means that the bank
is not properly utilized its assets to generate sales. The year 2014 is better among other two
years because in this year the bank is utilizing its assets more efficiently to generate sales.
The higher total asset turnover ratio is preferred.
Chart Title
0.09
0.08
0.07
0.06
0.05
0.04
0.03
0.02
0.01
0
2016 2015 2014
Total Asset Turnover
This graph of total asset turnover ratio indicates the decreasing trend for Bank Alfalah. In
year 2014, it is 0.08, in year 2015 it decreases to 0.07 and again in year 2016 it decreases
to 0.06. Year 2014 is better reflecting highest total asset turnover among other years in
generating higher sales by utilizing its assets properly and efficiently.
10. Long-term Debt to Equity:

The ratio is calculated by taking the company's long-term debt and dividing it by
the book value of common equity. The greater a company's leverage, the higher the
ratio. Generally, companies with higher ratios are thought to be riskier.
89
Long − term Liabilities
Long-term Debt to Equity = ⁄Shareholder ′ sEquity
90
Years 2016 2015 2014
Long-term 25190012 26938484 25354930

Liabilities
Shareholder’s 60,124,762 53353175 44,819,068

Equity
Ratio 0.42 0.50 0.57
In this ratio the long-term debt to equity is measured. This table shows the decreasing trend
of ratio for Bank Alfalah, which is better for the bank. The ratio is decreased from 2014 to
2016.
Chart Title
0.6
0.5
0.4
0.3
0.2
0.1
0
2016 2015 2014
Long term Debt to Equity
This graph represents the decreasing trend of the ratio. The ratio is reducing from year 2014
to year 2016. In 2014, the ratio is 0.57, in year 2015 the ratio declines from 0.57 to 0.50.
in 2016 the ratio is again decline to 0.42. This ratio is best for the bank.
91
92
11. Times Interest Earned Ratio:
Times interest earned (TIE) or interest coverage ratio is a measure of a company's
ability to honor its debt payments. It may be calculated as either EBIT or EBITDA
divided by the total interest payable. Interest Charges = Traditionally "charges"
refers to interest expense found on the income statement.
Times Interest Earned Ratio = Profit before Tax⁄Interest Expense
Years 2016 2015 2014
Profit before Tax 13023159 12604070 8,513,566
Interest Expense 23431804 22597735 20,862,516
Ratio 0.55 0.55 0.41
The overall times interest earned ratio of Bank Alfalah is poor because the bank is not able
to fulfill its interest obligations. The acceptable times interest earned ratio is at least 3.0 to
preferably closer to 5.0. Because the bank’s times interest earned ratio is below 3.0 the
Bank Alfalah is not fulfilling interest obligations. However, in year 2016 the Bank Alfalah
fulfills a little part of overall interest obligations relative to other years.
93
Chart Title
0.6
0.5
0.4
0.3
0.2
0.1
0
2016 2015 2014
Times Interest Earned
The graph depicts the ups and downs in the times interest earned ratio of Bank Alfalah. In
year 2014, times interest earned is 0.41, in year 2015, it increases to 0.55 and again it
increases in year 2016. The times interest earned ratio is higher in 2016. But overall times
interest earned ratio of Bank Alfalah is not favorable.
94
12. Cash Ratio:
The cash ratio is the ratio of a company's total cash and cash equivalents to its
current liabilities.The cash ratio is generally a more conservative look at a
company's ability to cover its liabilities than many other liquidity ratios because
other assets, including accounts receivable, are left out of the equation.
Cash Ratio = Cash⁄Current Liabilities
Years 2016 2015 2014
Cash 71074381 62368790 50,515,643
Current Liabilities 832142279 822315862 672954295
Ratio 8.54% 7.58% 7.51%
Cash & cash equivalent to current liabilities ratio for Bank Alfalah bank increases from
year 2014 to 2016 by 7.51% to 8.54%. The year 2016 is better reflecting the highest cash
to current liabilities relative to previous two years in which it is lower.
95
Chart Title
8.80%
8.60%
8.40%
8.20%
8.00%
7.80%
7.60%
7.40%
7.20%
7.00%
6.80%
2016 2015 2014
Cash Ratio
Graph depicts increasing trend of cash to current liabilities ratio for Bank Alfalah. In year
2014, it is 7.51%, in year 2015 it increases to 7.58% and in year 2016 it increases to 8.54%.
the year 2016 is better among other two years.
13. Diluted Earnings per Share:

Diluted EPS is a performance metric used to measure the quality of a company's
earnings per share (EPS) if all convertible securities were exercised. Convertible
securities are all outstanding convertible preferred shares, convertible debentures,
stock options (primarily employee-based) and warrants.
Diluted EPS = Profit after Tax⁄Share Capital
Years 2016 2015 2014
Profit after Tax 7899908 7,522,810 5,640,851
96
Share Capital 1602937 15,898,062 15,872,427
Ratio 4.93 0.47 0.36
This table shows the increasing trend of Diluted EPS for Bank Alfalah. The ratio is 0.36 in
year 2014 and 4.93 in year 2016. This ratio is better for the bank because the ratio for
convertible securities is best in year 2016
Chart Title
6
0
2016 2015 2014
Diluted EPS
The graph shows upward trend for the Diluted EPS of Bank Alfalah. In 2014, Diluted EPS
is 0.36, in 2015 it increases to 0.47 and in year 2016, EPS is 4.93 which shows better
earnings per share among other two years.
14.Net Asset per Share:

This type of asset value per share is more commonly referred to as "net asset value
per share" or simply "net asset value" or "NAV." Asset value per share can also
refer to a public company's total assets minus its total liabilities, divided by its
number of shares outstanding.
97
Net Asset per Share = Total Assets − Total Liabilities⁄Outstanding Shares
98
Years 2016 2015 2014
Total Assets-Total 60124762 53353175 45567564

Liabilities
Outstanding Shares 1593898 15,898,062 15,872,427
Ratio 37.72 3.36 2.87
This table depicts the increase in net asset per share of Bank Alfalah. This number for a
mutual fund indicates the price at which shares are bought and sold. Since closed-end and
exchange traded funds are listed and traded like stocks, which are influenced by market
forces, their NAPS (net asset per share) and selling/buying prices per share can be different.
Chart Title
40
35
30
25
20
15
10
5
0
2016 2015 2014
Net Asset per Share
The graph shows the upward trend of net asset per share for Bank Alfalah. The ratio is
increasing continuously form year 2014 to 2016, which is better for bank and its assets like
stock and share prices etc.
99
15. Return on Common Equity:
Return on equity measures a corporation's profitability by revealing how much
profit a company generates with the money shareholders have invested. Net income
is for the full fiscal year (before dividends paid to common stock holders but after
dividends to preferred stock.)
Return on equity = Profit after Tax⁄Shareholder ′ sEquity
Years 2016 2015 2014
Profit after Tax 7899908 7522810 5,640,851
Shareholder’s 60124762 5335375 44,819,068

Equity
Ratio 13.14% 14.41% 12.59%
The table shows that the return on equity is increasing from 2014 to 2015 which is better
for Bank Alfalah. In 2016, the ratio shows decreasing trend from 2015 to 2016, which is
not better for bank. The lower return on equity shows that the owners are not efficiently
utilize the shareholder’s investments in generating profits. The owners are better off the
higher is this return.
100
Chart Title
15.00%
14.40%
14.50%
14.00%
13.50% 13.14%
13.00% 12.59%
12.50%
12.00%
11.50%
2016 2015 2014
Return on Common Equity
Graph of return on equity shows the increasing trend in 2014, it is 12.59%, in 2015 it is
14.41% and in 2016, it is decreases to 13.14%. The year 2015 is better in return on equity.
16. Return on Average Asset:

Return on average assets (ROAA) is an indicator used to assess the profitability of
a firm's assets, and it is most often used by banks and other financial institutions as
a means to gauge financial performance. ROAA is calculated by taking net income
and dividing it by average total assets.
Return on average asset = Net Income⁄Total Average Assets
Years 2016 2015 2014
Net Income 7899908 7522810 5,640,851
Total Average 910032287 822867907 677288959

Assets
Ratio 0.87% 0.91% 0.83%
101
Return on average asset which also called return on investment is increases from 2014 to
2016. It means the firm is not generating enough profits from its available assets. Return
on assets in 2016 is not good as compare to 2015.
Chart Title
0.95%
0.90%
0.85%
0.80%
0.75%
2016 2015 2014
Return on Average Assets
The graph depicts the increasing trend of return on average assets of Bank Alfalah in 2014
to 2015. In 2016, it is only 0.87% that is not better for Bank Alfalah. Return on average
asset is not showing good profitability of Bank Alfalah.
17.Cost to Income Ratio:

To obtain the cost to income ratio, divide the operating costs (administrative and
fixed costs, such as salaries and property expenses, but not bad debts that have been
written off) by operating income.
Interest Expense⁄
Cost to Income = Profit after Tax
Company BankAlfalah
Years 2016 2015 2014
102
Interest Expense 28474468 32810722 20,862,516
Profit after Tax 7899908 7522810 5,640,851
Ratio 3.60 4.36 3.70
The table shows the decrease in cost to income ratio of Bank Alfalah in year 2015 to year
2016. But there is an increasing trend from year 2014 to year 2015. It shows that bank has
less operating expenses in year 2016 when compare to year 2015. This is good for the bank.
Chart Title
5
0
2016 2015 2014
Cost to Income
The graph depicts the upward trend from year 2014 to year 2015 and downward trend from
year 2015 to year 2016. The ratio is 3.70 in 2014, 4.36 in year 2015 and 3.60 in year 2016,
which is less than previous two years. It is better for the bank to have less operating
expenses and cost.
18.Earnings per Share:
103
Earnings per share (EPS) is the portion of a company's profit allocated to each
outstanding share of common stock. Earnings per share serves as an indicator of a
company's profitability. EPS is calculated as: EPS = (Net Income - Dividends on
Preferred Stock) / Average Outstanding Shares.
Earnings per Share = Net Income⁄Shares Outstanding
Years 2016 2015 2014
Profit after Tax 7899908 7522810 5,787,463
Shares Outstanding 1593898 15,898,062 15,872,427
Ratio 4.96 0.47 0.36
The EPS of Bank Alfalah is better in all years. It indicates the earnings earned on
each share of outstanding common stock of the bank. The highest EPS is in year
2016 in which it is 4.96 that indicates the highest earning on behalf of each share
of outstanding common stock. Overall EPS of Bank Alfalah is favorable as it is of
best interest of present and prospective stockholders and management.
104
Chart Title
6
0
2016 2015 2014
Earnings per Share
The graph depicts the increasing trend in EPS of Bank Alfalah. In 2014, EPS is 0.36, in
2015 it increases to 0.47 and in year 2016, EPS is 4.96 which shows better earnings per
share among other two years.
105
Chapter 5
THE S.W.O.T ANALYSIS
106
5.1 Strength
The predominant strengths of Bank Alfalah Limited are
 Humble Management
The senior management of Bank Alfalah Limited is considerably humble. Their

humility is an integral part of the organizational culture of the bank. The modern
management techniques have discarded the bureaucratic style of management in
which employees were treated as servants if not as slaves. In the contemporary
business world employees are said to be the biggest and the most crucial assets of
a business concern, specifically if we are talking about a service industry and this
is precisely the management policy Bank Alfalah Limited follows. The humility of
the management serves as a big morale booster and encouragement catalyst for all
employees in general and new inductees in particular.
 Strength And Commitment Of Sponsors
Bank Alfalah Limited is a project of Al-Nahayan family, which is a renowned Abu

Dhabi based investor family. The first project of this particular family was Bank of
Credit and Commerce International (which later on became on of the most
renowned banks of the Muslim world). BCCI was acquired by Habib Bank Limited
(a nationalized bank) and as a result BCCI became Habib Credit and Exchange
Bank (H.C.E.B). The bank functioned under this particular name for six years and
then Al-Nahayan family bought 70% of its shares from Habib Bank Limited and
renamed the institute as Bank Alfalah Limited. Thus in real terms the same family
reinvested in their lost project and tried to rejuvenate their brainchild. This
reinvestment shows the investor’s trust, commitment, and perseverance to
transform Bank Alfalah Limited into one of the strongest financial houses of
Pakistan. The “Al-Nahayan” family is a royal family and this fact further adds to
the bank’s inherent strength.
107
 ‘Kaizan’
Kaizan is a process of continuous improvement in production and every aspect of

value added (Japanese). In a very short time span the management of Bank Alfalah
Limited has been able to develop its image in a very effective and efficient manner.
Through the laborious efforts of the top management and the employees, the entire
organization as a whole has been able to continuously add its prestige as a reliable,
service oriented, and flourishing financial institution. When we compare the image
of Habib Credit and Exchange Bank with that of Bank Alfalah Limited we find a
world of difference, and when we compare the image of Bank Alfalah Limited at
its inception with its present image we find an even greater difference. This fact
proves the thesis that there has been continuous value addition. The number of
individuals and corporate entities that feel comfortable while dealing with Bank
Alfalah Limited is increasing on a daily basis.
 Phenomenal Growth In Profitability, Branch Network And Deposit Portfolio
In the very first year of its inception Bank Alfalah Limited closed its operations at
a deposit portfolio of Rs. 7 billion, at the end of the second year the deposit portfolio
had risen to Rs. 14 billion. Thus Bank Alfalah Limited is growing at a multiplier
rate of 50%. The profit before provisions and taxation of your bank for the year
2006 stood at Rs. 3.264 billion which was 10% higher than that of last year. The
deposit grew by 7.7% and stood at a figure of Rs. 239.509 billion while advance
portfolio grew by 26% and showed a figure of Rs. 149.999 billion. When Bank
Alfalah Limited started its operations it only had three branches and in a short time
span the branch network has expanded to 195.
108
 Vastly Experienced Management
The people who occupy the top positions in Bank Alfalah’s management hierarchy
are certainly no mugs at what they do. Rather they are as capable and as competent
as they come. Their superior management skills certainly do create a synergistic
effect when coupled with the enormous amount of trust sponsors have put in the
management. One of the most evident proofs of above average management
expertise are the deposit portfolio growth, profitability growth, and branch network
growth figures shown under the previous heading.
 Highly Trained Human Resource Department; Transformation Of Work

Force Into Human Capital
One of the most significant catalysts, management of BAL had incorporated---and

it still is incorporating---in the organization, when H.C.E.B was transformed into
Bank Alfalah Limited, was induction of young and energetic business graduates.
This was done in order to achieve quite a few objectives; one was to raise the overall
skill level of the work force so that service provision could be improved and the
second objective was to reduce the average age of Bank Alfalah Limited’s
employees so that an overall sense of change is trickled down to the grass root level
of the organization. Bank Alfalah Limited has an excellent selection / recruitment
and training program which are undertaken at its Training and Development Center,
Human Resource Division Karachi.
 Superior Consumer Finance
In contemporary banking consumer finance has assumed immense significance, as

it is that department of a commercial bank whose personnel directly and extensively
deal with the client body. One of the most predominant sub departments of
consumer finance is Alfalah Car Finance. The customer interface is greater in the
consumer finance department, and the diligent staff of Bank Alfalah limited
enriched with its superior service and relationship skills attracts / persuades these
clients to develop relationship with Bank Alfalah Limited in the arena of corporate
109
banking as well. Thus a strong consumer finance department really helps the bank
to expand its corporate banking business.
 Crucial Location Of Branches
All the forty five branches of Bank Alfalah Limited are located at extremely crucial
and vital locations, which is indeed a very significant factor towards earning more
profit. Moreover all of the branches are very well furnished which is an integral
characteristic of a good bank in this age of consumerism.
 Image Building Activities
Activities such as building of Alfalah Square at Liberty Lahore, the China Khan at
the Alfalah Square, Alfalah Mini Golf Course, and Shahdin Manzil (proposed main
branch, Lahore at The Mall, under construction) have really contributed a lot
towards the image building process of Bank Alfalah Limited. Such activities also
make people aware of the rejuvenation process of Bank Alfalah Limited. Such
activities are classified as strength because they involve people in the change
process that contributes a lot towards building customer loyalty.
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5.2 Weakness
The chief weaknesses are enlisted as under
 Small Size
Bank Alfalah Limited is small in size; there is no doubt about this fact. Although,
as I mentioned in the strengths section, the branch network is expanding at a
phenomenal rate but still the size is not big enough as compared to some of the big
banks present in the market. Bank Alfalah limited has 189 branches in the whole of
Pakistan. A huge branch network is always an invaluable asset for any bank.
Customers simply love it when they could see another branch of their own bank at
every turn they take. Extensive branch network might reduce per branch profit but
it is very likely to raise the overall profit figure for the entire organization as a
whole.
 Lack of Research Cell
There should be a research cell in the bank, which should be engaged in gathering
the information about the present actions of its competitors
 Uneven treatment with customers
Customers having accounts with small amounts are not given same services and
dealing given to those with high accounts.
 Skill Set Of Employees Is Not Up To The Mark As There Is No Job Rotation
The contemporary banking all over the world has taken a unique turn i.e. they have
made job rotation an integral part of their management philosophy. Job rotation
adds value to every single employee, as he is able to perform a variety of jobs
related to banking profession. Moreover job rotation increases the human capital
pool of the organization as every one is trained in more than one sphere of banking.
Bank Alfalah Limited completely lacks this.
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 Foreign Banks Still Are A Little More Prestigious
Although Bank Alfalah Limited is continuously adding to its prestige, but still it
can not be rated as a bank with the same repute as International Banks functioning
in Pakistan, for instance ABN AMRO Bank, Citi Bank and Standard Chartered
Grindlays. Banks function as custodian of people’s possessions, act as their agents,
represent clients in trade dealings outside the country, and give different types of
guarantees and in all of these transactions repute plays a central role. And when it
comes to repute foreign banks have a little more of it as compared to Bank Alfalah
Limited.
 Bank Alfalah Limited Does Not Possess Foreign Network
Foreign banks and some local banks having international network have this edge
over Bank Alfalah Limited. Banking transactions regarding trade finance constitute
a very important part of contemporary banking and moreover they are said to be
the bread and butter for the commercial bank. Bank Alfalah Limited, for such
transactions has to rely on its correspondents and agents in other countries, and
naturally has to pay them some remuneration --- an expense banks having foreign
network do not have to incur.
 No Advertising in Electronic Media
Bank Alfalah does embark upon occasional sales promotion activities, it also
givesadvertisements in the print media, but it has never flashed an advertisement
on the television screen, which is said to be the strongest of all Medias. Some other
commercial banks are really capitalizing on the power of this media; examples are
Askari commercial bank, Muslim commercial bank, Habib Bank Limited etc.
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Key External Forces
External forces can be divided into four broad categories:
 Social, cultural, demographic, and environmental Forces

 Political, governmental, and legal forces
 Economic forces
 Technological forces, and
 Competitive forces
While performing an external audit, our company gathered the competitive

intelligence and information about social, cultural, demographic, economic,
political, and technological forces as well. The overall motive was to consider and
evaluate the Opportunities and Threats for the company
Following can be some of the key opportunities and threats for Bank Alfalah.
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5.3: Opportunities
The opportunities on which bank Alfalah can capitalize upon are delineated as under.
 Extension of Local Branch Network
One of the biggest opportunities for bank Alfalah Limited is to extend its branch
network in Pakistan. The essential pre-requisites for a vast branch network are all
there; sponsors have the money, managerial expertise are available, and last but not
the least any bank with ‘Bank Alfalah Limited written in blue at its front is accepted
in the market’.
 Establishing Foreign Branch Network
Going global could have been termed as a fad a few years ago, but now for those
business organizations that want to survive and thrive globalization has become the
order of the day. In order to increase the bottom line figure, it really is crucial. But
the senior management would start implementing this course of action once they
feel that they have got a strong hold in Pakistan.
 Capitalizing On Information Technology
The information revolution has certainly made its inroads in almost all human
functions. If Bank Alfalah Limited’s senior management and the IT division make
a concerted effort to make best possible use of this miracle of human mind it would
enable Bank Alfalah Limited to harness unexplored benefits of immense
magnitude.
 Unexplored Market of Multinational Corporations
Unfortunately in spite of unprecedented image building efforts, Bank Alfalah

Limited still is an unattractive bank for big multi nationals functioning in Pakistan.
If the management is able to develop a strong relationship with such MNC’s then
it would open doors of huge and unimaginable opportunities for Bank Alfalah
Limited. If even a single MNC becomes a corporate client of Bank Alfalah Limited
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i.e. it deposits its revenue with Bank Alfalah Limited, pays its salaries through Bank
Alfalah Limited, does trade dealings through Bank Alfalah Limited, and avails
credit facilities offered by Bank Alfalah Limited, it would make a world of
difference to Bank Alfalah Limited.
 Customers are more willing
Muslims are more consciously differentiate the Islamic-base banking from interest-
base banking. That is why there is large caution of expansion.
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5.4 Threats
The predominant threats Bank Alfalah is facing at the moment are discussed in the
following lines.
 Private Sector Banks
Bank Alfalah Limited is at present facing really tough competition from not only
the first line international banks (ABN AMRO, Standard Chartered, Citi Bank) but
is also having a neck to neck race with other privatized banks such as Askari
Commercial Bank Limited, Union Bank, Prime Commercial Bank, Faysal Bank
Limited, Bank Al-Habib Ltd etc. All the new schemes launched by these banks and
their plans to expand branch networks are a real threat for Bank Alfalah Limited.
 New Trade Polices
Introduction of new trade policies and laws are also been a source of threats to the
organization due to the imposition of new rules and terrifies, previous maintained
regulations have to be amended.
 Network Expansion By Foreign Banks
Foreign banks have a lot of plus points as compared to Pakistani banks (state owned
and private); they have better products, better and personalized service, desirable
interest rates, foreign branch network, but they definitely lack in local branch
network (in Pakistan). Literary no foreign bank has been able to expand its network
to far-fetched places of Pakistan. Pakistani banks (private banks in general and state
owned banks in particular) are spread all over Pakistan. This is an intangible asset
for Pakistani banks. But if any of the foreign banks expands it network, backed by
their traditional powerful service, then it might prove to be the start of downfall for
Bank Alfalah Limited, unless and until Bank Alfalah Limited raises its level of
service and product feasibility to the international standards.
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 If Pakistani Banks (Especially State Owned Banks), Backed By Huge
Network Improve the Service They Give And Their Employee Skill Set
State owned banks like National Bank of Pakistan and Habib Bank Limited have
huge networks, they have the experience, but the only set back they have is below
par service and lack of motivation amongst the employees. If their corporate
strategy is altered, and the managerial policy is revitalized, enabling them to
improve upon the service they give and enabling them to convert their work force
into human capital then such financial institutions backed up by their huge networks
pose a potential threat to Bank Alfalah Limited. So, Bank Alfalah Limited should
endeavor to expand their branch network as efficiently as possible and as soon as
possible.
 Terrorist Image of the Country
After the 9 / 11 incident every kind of transaction that uses to take place with the
outside world has assumed a different mode. The trade finance transactions are the
bread and butter for the commercial bank, were also hampered by that terrorist
attack on 11th of September i.e. the magnitude of orders the exporters were
receiving decreased by a great deal, but as far as our image in the international
community is concerned there is still a considerable room for improvement. If this
situation further aggravates rather than improving, the trade finance business would
really be hampered, and one of the major earning avenues for Bank Alfalah Limited
will loose its footings. This fact poses a real threat to the sanctity of Bank Alfalah
Limited.
 Inconsistency in Government Policies
This is a phenomenon that could hamper smooth functioning of any organization

working in a particular country. Although the sponsors of Bank Alfalah Limited --
- Al-Nahayan Family --- are really committed to invest more and more in the
country but still any drastic change in either the economic policies like increase in
taxation rates, or any change in the foreign policy, which could hurt Pakistan’s
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image could also shake the investor confidence and also could lead to a decrease in
the repute of the entire banking sector of Pakistan.
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Chapter 6
Training Programme
6.1: Divisional or Departmental detail
 Operations Department
 Agri Finance Department
 Car Finance Department
 Accounts Department
 IT Department
 The Credit Administration Department
6.2: Activities or Intern
I was been assigned by our department, Bank Alfalah Ltd, Shahdin Manzil, Lahore as my
internship organization. There I worked for about eight weeks.
I worked in three departments. I started up with account opening (operations), where I

worked for about three weeks and learned about different types of accounts, and how to
open a new account, etc. I was working under the supervision of the Manager
Operations,at my internship in that department.
After working in Operations, I was moved to Credits, where I learned that how finance is
advanced to the clients and different types of facilities the bank is providing to its
customers. There I worked for about two weeks withofficer of CAD Department officer of
car Finance Department and under supervision and training of the employees working as
the finance officers as well.
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Shahdin Manzil Branch has got a wide range of excellent services departments been
supervised under the best ambiance and a very well educated staff. The following list is
showing the main departments at Garden Town Branch
Now, I am going to discuss the six departments with which I was in touch during my
internship program. That is,
 The Account Opening department,

 The Remittance department,
 The car finance department,
 The Accounts department and
 The Credits department.
The Account Opening Department
Borrowing funds from different sources has become an essential feature of today’s business
enterprises. But in the case of bank borrowing funds from outside parties is more vital
because the borrowed capital of a bank is much greater their own capital. Banks borrowing
is mostly in the form of deposits. These deposits are lent out to different parties such deposit
creation is done through open an account in the bank.
The department that is responsible for opening and closing an account assumes immense
significance and holds a central place in the basic banking operations. The Account
opening department was the very first experience of my practical life being working with
a bank, during my internship with Bank Alfalah Ltd.
This department is the best way to start with the banking career or training. This is because
the ways you deal with the customers give a lot exposure to you for the coming days in
banking because the bankers are always in contact with customers as customers are the
biggest source of assets for the bank. I really enjoyed my stay at this department as I got to
interact with the customers directly for the first time. I was given under the supervision ,
who is the Incharge of Accounts Opening.
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During my stay at this department I got to fill the forms of individuals who wanted to get
their accounts opened at Bank Alfalah Limited, fill the cheque and deposit slips of
customers who were not literate enough or needed instructions, and I also got the
opportunity to give advice to the customers regarding the requirements of account opening
and the benefits of opening an account with Bank Alfalah Limited.
Working with the Accounts opening department gave me a lot of courage as it taught me
the way that you should deal with the customers of the bank. Now coming towards the
documentations, stuff requirement at this department for the accounts opening process.
Types of Account
 Current Account.
 Saving Account.
 Notice Deposit.
 Term Deposit.
 Current Account
The current account is the most common account and the most preferred amongst
business concerns. The theoretical explanation for this would be that they can
function more efficiently but since in reality there are no restrictions on any
withdrawal. The only reason we can think of is that current account facilitates
online banking which saves time to a considerable extent. No interest is being
credited to the customer’s accounts that are maintaining the current accounts with
the bank. Current account enables the client to do cash transactions in a more
efficient manner.
There is no interest on these accounts. It is only for transaction purposes. They paid
on demand. Where a banker accepts, paying all checks drawn against him to extend
of the balance in the accounts. As there is no profit paid on this account, it is also
called checking account because cheque can be drawn on it. Current account is
mostly opened for business. The minimum balance requirement for opening the
current account is Rs. 10,000.
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Basic Banking Account
 Initial deposit for account opening is Rs. 1,000 with no minimum balance
requirement.
 Non interest bearing checking account.
 Maximum 2 deposits & 2 withdrawals through cheque are allowed.
 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.
 No restriction on ATM withdrawal.
 The PLS Savings Account:
The purpose of this account is to introduce the habit of saving individuals in the
neighborhood. The profit on saving accounts is paid on the basis of profit and loss
sharing at 2 % per month. The minimum balance requirement for opening the
account is Rs.5000.
The PLS savings Account is meant for those people who have got an aptitude
towards earning some profit on their amount deposited for sometime with the bank.
Individuals who wish to earn profit/interest on their investment normally maintain
the profit and loss sharing account but in order to earn interest the client is required
to keep his/her deposits with the bank for some time. For this purpose, there are
some restrictions on withdrawal of money from a Profit and Loss sharing account
but in general banking practice there is no restriction on any with drawl from a
Profit and Loss sharing account. The interest/profit is paid half yearly.
Notice Deposits
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Notice Deposits are kind of fixed deposits. The minimum balance requirement for
opening the account is Rs. 5000 and payment is drawn on maturity of the specific
period.
Notice Deposits Is Of Two Types
 One for which a prior notice of 30 days and is required from the customer before
withdrawing deposited amount and for which rate return is 4.00%.
 Second for which a prior notice of 30 days and above is required from the
customer before withdrawing deposited amount and for which the rate of return
is 4.50 %
Term Deposit
A term deposit is a deposit that is made of a certain period of time. At the end of
specific period the customer is allowed to with draw the principal amount. The rate
of return of this account varies from 3.25 % to 6.50 %. The term deposit account
varies from one month to 3 years and the minimum balance requirement is Rs.
50,000.
PROFIT CALCULATION METHODS
DAILY PRODUCT BASIS
Deposited Amount × Rate of return
365 (No. of days in a year)
AVERAGE MONTH BALANCE
Sum of daily end Balance × Rate of return
No. of days in month
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MINIMUM MONTH BALANCE
Any minimum balance during the month is taken for calculating profit
SAVING A/C (05 DAYS _ MINIMUM MONTHLY BALANCE).
Minimum Balance of first 5 days is compared to the minimum balance of the

minimum balance of remaining 25 days. Less balance is calculated for profit.
The amount of profit is given to deposits in three ways:
 Cash payment (only in case of term Deposits). Or as per customer requirement.
 By sending bank draft to depositor’s home address or officers or whichever is

specified as mailing address.
 The depositor’s account is credited at maturity.
The main document in this department is, of course, the Account Opening Form.
Particulars at the Account Opening Form:
In the account opening form the client is required to provide the following
information. The first part establishes the currency in which the account is to be
maintained / operated. The currencies include
 Pakistani rupee.
 U.S. dollar
 Pound sterling
 Euro
The second part then establishes the preference regarding the type of account to be
maintained. The various choices offered are
 Savings account
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 Current account.
 Royal profit
For the chequing account, there are different types of account holders are required for all
these types of account holders. The operation/procedure requirement that is needed for
“Individual Account” differs greatly from the “Joint Accounts” proprietorship A/C,
Partnership A/C, Private Limited Company A/C and Public Limited Company A/C.
Now, during my internship at the Account Opening department at Bank Alfalah Ltd.
Garden Town Branch, I found out the following documentation and writings are required
in order to open an account with us:
 The first thing mentioned at the account opening form is the Title of the account.
Title of the account is to be written in block letters. By title of an account we
mean the name (either of the individual or of the business concern) with which
the account is to be opened and operated.
 The client is supposed to provide the information whether the account would
be maintained singly (only one person operates the account) or jointly (two or
more than two persons maintain the account).
 The name of the person who intends to operate the account.
 Provision of either Father’s or the Husband’s name is also a pre-requisite.
 Occupation of the prospective account holder.
 The name and complete address of the employer.
 Nationality of the Account opener
 Country of residence is to be specified.
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 Contact numbers both the cellular and the landline numbers are to be provided
in addition to the segregation of the residential and the office phone as well.
 The national identity card, of course is an integral part of the account opening
application
 Passport number, if the prospective client has got one.
 Another requirement is the date and place of issue of the national identity card.
 The prospective client also has to provide the name, address and relationship of
any one of his/her close relatives in order to facilitate the communication
problem. The clients often have a misconception that there next of kin might, if
some peculiar circumstances arise, get the profit out of his account but this is
not the case. The name and address of a close relative is only recorded in order
to undertake necessary communication when needed.
 In case of a business concern there are two more things that are to be provided
by the business.
 Type of organization
 The various types of organization which are present in Pakistan at present are:
 Public Limited Company
 Private Limited Company
 Partnership
 Association/Club/Society
 Sole-Proprietorship
 Some special documentation is also required like the certifications regarding

the incorporation and commencement of business and the Form 29. The
business concerns also have to give their full name, brief description of the
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business, date of incorporation, and place of incorporation, national tax number,
telephone number and fax number.
 The choice of either the deduction or non-deduction of zakat also needs to be

highlighted. Zakat is deducted out of a Musharakah savings account and not in
the case f the current accounts...
 Details of other accounts maintained with other branches of Bank Alfalah Ltd.
or other banks are also to be given.
 The name, signatures, and account number of the introducer is a very essential
prerequisite in order to facilitate the opening of an account. The introducer is a
person who already has an account in the same branch. It can also be a person
from the staff of the branch as well. This introduction is the mandatory
requirement in order to open an account in order to trace out the defaulter in
case of defaults.
 Then the client also has to put forth the instructions regarding as to whether the
account would be maintained on the basis of ‘either or survivor’, ‘jointly’ or
‘any one of us’.
 After this three signatures of the client are needed and if it is an account of a
business concern then the rubber stamp of the company/organization is also
needed below the three signatures.
 In case of a joint account all the persons unanimously might give the right to
operate the account to one person. This right is also termed as mandate for
joint account. If the mandate is given to a person all join account holders must
sign as an evidence of their approval.The names of persons are written on the
title of A/C and on S.S. card.
INDIVIDUAL ACCOUNT
Any individual or proprietor of business can open an individual account at BAL.
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PLS (profit and loss sharing) saving accounts can be opened with the minimum
balance Rs. 5000/- with expected profit rate is 2% on Rs. 25,000 or above.
Following requirements has to be fulfilled for this account.
 Signature of customer on back of AOF.
 Mention next of kin (nominee)
 Name and A/C # of introducer.
 Verified sign of introducer.
 Customer signature admitted by officer.
 N.I.C photocopy attached.
 Letter of thanks.
JOINT ACCOUNT
When different people want to or need to share a single account it is called joint
account. The names of persons are written on the title of A/C and on S.S. card.
Joint A/C cannot be opened by single person. Both persons have to sign on cheque.
When two or more person neither partner nor trustee open account in their name is
joint account.
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Requirements
 Sign of both customers on back of AOF
 Sign on joint A/C # mandate
 Name and A/C # of introducer
 NIC copies of both members.
 Mode of operation.
In case of account opened by a business concern there are some documents that are
needed to be attached with the account opening form. The details of these documents
are given below.
Limited Company:
 Copy of certificate of incorporation
 Memorandum and Articles of Association
 List of Director’s
 Copy of the board resolution
 Certificate of Commencement of Business
 Copies of CNICs of Director’s
 Latest copy of Form-29
Partnership:
 Partnership deed certified copy
 NIC photocopies of all partners.
 Partnership mandate for account signed by all the partners
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 A letter duly signed by all the partners containing the operating instructions
of the account also has to be taken.
Club/Society/Association:
 Copy of rules/ by-laws
 Copy of registration (if applicable)
 List of Executive member management committee/management board etc
 Certified copy of Resolution
 NIC of all members of the management body
Sole Proprietorship / Individual:
 NIC/ Passport photocopy
 Letter from Proprietor confirming “sole proprietorship”
Term and Conditions Governing the Account
Account
(I) Each Account will be allotted a distinctive number, which should be quoted in
all correspondence with the bank relating to the account.
(II) The account should be subject to the applicable laws of Pakistan and prevailing
rules, regulations and directives of the State Bank of Pakistan.
Minimum Balance
Subject to the regulations of State Bank of Pakistan, the customer should maintain
a minimum credit balance in the account as may be prescribed by Bank from time
to time. The bank reserves the right to close the account after giving 14 days notice
if the customer fails to maintain the required minimum balance in the account.
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Deposits
 All deposits in the account should be accompanied by pay in slip showing the
correct title & account number to be credited.
 If the amount indicated on the deposit slip differs from that “later cash account”
the banks count shall be final and conclusive.
 Proceeds of a cheque deposited in the account for collection will be value dated
after receipt of the proceeds thereof.
 In receiving cheque/instruments the bank acts only a collective agent of the
customer & assumes no responsibility for the realization of such
cheques/instruments.
 The bank may refuse to accept such cheques/instruments drawn in favor of
third party. The customer shall not draw against unclear cheques/instruments
though credited.
 The bank shall recover return cheque charges at the rate fixed by the bank by
dividing the account on every cheque deposited for collection and return
unpaid.
 The bank is realizes the services of other bank, customer do so for account and
the sole risk of the customer. The bank assumes no liability should the
instruction is transmits is not carried by such banks.
 The bank shall not be responsible for the delay or loss in transit of any cheque
not for any act, omission, neglect, default, and failure of any correspondent
bank, agent or sub agent or for any reason beyond the control of the bank.
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Withdrawals
 Withdrawals from the account shall only be made by using cheque books
supplied by the bank at the request of the customer. The bank reserves the right
to withdraw cheque book facility without notice if in the opinion of the bank
the account is not being maintained or operated in accordance with these terms
and conditions or for any other reason.
 The customer shall exercise care when drawing cheques and agree that cheques
will not be drawn in a manner which may enable a cheque to be altered in a
manner which is not readily detectable.
 The customer shall ensure safe keeping of the cheque book and shall not allow
access to the cheque book to any unauthorized person. In case of loss or theft
of the chequebook or any cheque leaf, the customer will inform the bank, if he
will not then he will be himself responsible for any loss.
Minor’s Account
In respect of an account opened in the name of a minor, the bank shall be entitled
to act on the instructions received from the guardian name on the account opening
form, irrespective of whether the minor account holder continues to be a minor or
not unless the bank receives written instructions from the guardian or a notice to
the contrary from an appropriate authority.
Statement of Account
The bank shall quarterly or at such other interval as it may deem fit send to the
customer statement of account and the customer shall check the entries made
therein. In case of any discrepancy or error in the statement of account, the customer
will notify the bank within 14 days of receipt of the statement.
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Hold Mail Facility
Upon written request of the customer, the bank may in its sole discretion provide a
hold mail facility. The customer hereby waives his right to question any detail
appearing in the hold mail communication or statement of account irrespective of
their actual receipt. The customer accepts all risks and responsibilities in this
regard.
Stop Payment Instructions
The bank may, in its absolute discretion, accept stop payment instructions from
customer if a cheque is reported lost or stolen, provided the necessary details of the
lost/stolen cheque given by the customer.
Death of a Customer
In case of death of individual customer, the bank will permit no withdrawal from
that account after receiving notice of customer’s death, except on production of a
succession certificate or other court order from a court of competent jurisdiction.
Now, there are some documents that are always there with the account opening
forms. These things need to be filled in by the customers efficiently and carefully.
These are:
 Signature Specimen Card.
 Cheque Book Requisition.
TheSignature specimen card basically contains information that is basically a

repertoire of information given in the account opening form, but in this card the
client vividly puts his signatures as a specimen, which are scanned and stored in an
intelligent terminal for future use and reference.
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The Cheque Book requisition basically serves as an application to issue a
Chequebook. The client also fills it up and submits it along with the account
opening form as a result of which he is issued a Chequebook once his account is
approved. As regards the Chequebook one of the most important entries in a
Chequebook requisition is the series number of Cheques that correspond with the
numbers of the cheques contained in the Chequebook issued to the client
Procedure of Opening an Account
 The Account Opening Form:
When a client comes to the bank, and makes a request for opening of an A/C.
The officer says that first fill up a prescribed application form. If he/she wants
to open a PLS A/C, then he/she has to fill a form according to the account.
 Completion of The Form:
The name, occupation, and complete address of the person opening the account
are written in the columns are provided in the form. One signature of the person
is taken on the face of the form and one is taken on the backside. These
signatures should be usual signatures and he would operate the account with
them future.
 Introduction:
The introduction of a current account holder is accepted for the opening of

either a current account or a solving account. The introduction of saving bank
account is accepted only for saving bank accounts. The signature of the account-
holder introducing the account is obtained at the place provided for in the
account opening form.
 Specimen Signature Card (S. S. Card):
It is card on which specimen of applicant’s signature are taken for future

reference. Every time a cheque is presented for payment, the signature on the
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cheque is verified by comparing it with S.S Card. In case of joint account two
applicants can sign on one SS card. In case of more than two joint account
holders more than one SS card are required.
 Account Number:
As now a days Bank Alfalah has acquired centralized banking system where all
the branches are directly connected to Head office. When customers give all the
information about him, this information is entered into centralized data base.
When this procedure is completed, the system automatically generated the
account number of that customer. Due to this system the process of account
opening becomes fast and also there is no chance of any mistake.
The account numbers of various accounts start with the following series
Account title Account number
Current account 01
Saving account 02
Royal profit account 029
Term deposit account 03
Car finance account 0191
Agri finance account 0141
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 Issuance Of Cheque book:
After opening an A/C with the bank, the A/C holder once again makes a request in
the name of bank for the issuance of a chequebook. The A/C holder mentions title
of A/C, A/C number, sign it properly and mentions the no of leaves he requires.
Normally BAL issues a chequebook having at least 25 leaves. Every chequebook
also contains one leaf that is used for another issue of a Chequebook
 Bank Alfalah issues the following chequebooks.
 Saving account - 25 leaves
 Current account - 50 leaves
 Current account - 25 leaves
 Foreign currency $ - 10 leaves
 Foreign currency £ - 10 leaves
Loose cheques are also issued in some cases.
 Entry Of cheque book:
Before issuance of a chequebook, the employee performs certain functions. They

include:
 Stamping every leaf with specific A/C number.

 Enters it in the chequebook issue register.
 Check whether or not a senior officer has verified the signatures, if no then
first he gets them verified.
 If the check book is of photo account then be sure that each and every leaf
of cheque book should carry photo account stamp
136
After entry in the manual register, the employee issues the chequebook to the A/C
holder after his/her signature on the register.
 Filling Of Account Opening Forms:
For current and saving account, separate files are maintained in which the forms
are pasted or punched in numerical order and kept under lock and key in fireproof
steel or safe. This is because these forms are the basic documents of the contract
with the customer.
 Maintaining the Computer Record:
After opening of account, all information regarding the account is entered into the
computer. Currently, a program named Bank Smart is being used for this purpose.
Record of all the transactions regarding the account of a customer is kept updated
in the computer.
Procedure Followed In Order To Close An Account:
Now, coming towards the procedure for the closing of an account at Bank Alfalah,
the following steps will be followed.
 The client who wishes to close an account first has to give an application, duly
signed on the pre-printed application of the bank. The client has to attach this
application with the liability form (explained below). The client can also give
an application on a plain paper, but correct signatures are very necessary.
 Then it has to be made sure that if the account to be closed is a saving or Royal
Profit then the account balance before closing should be zero. In case of these
two types of accounts the bank does not take any closing charges. If a client
wishes to close a current account then the bank charges Rs.150, so at the time
of closing the balance should be Rs.150.
137
 Along with the application to close the account client’s Chequebook is also
received from him and then it is destroyed in order to prevent any misuse in the
future.
 A liability form is filled and sent to the Credit Department in order to Cheque
that the customer does not owe the bank a single penny in any regard. A debit
voucher and a credit voucher are also attached to the liability form.
 When the Credit department approves that the customer does not owe any
money to the bank and the form is returned to the account opening department
then the original account opening form pasted in the ledger when the account
was opened is marked ‘account closed’ along with the date on which it is so
marked. One thing has to be taken into immediate consideration that the account
number allotted to the client (who has closed his account), after closure of the
account becomes useless and is not allotted to any one in the future.
 After approval of the liability form, it is sent to the Cash Department so that the
officer who scanned it in the first place could return the specimen signature card
to the account-opening department.
 Once the S. S. Card is received back from the concerned official then the
liability form, the client’s application along with the specimen signature card is
pasted in the ledger right along side the original account opening form. The
form has to be pasted with the original account opening form even if the account
was opened a decade ago. In the computer as well all the entries and records
related to that particular account is permanently deleted by using the ‘close
account’ option.
138
Important Documents Used In the Account Opening Department
 Liability Form
This particular form is used when an account is to be closed. The staff of

account opening department, after filling in the name and account number of
the client forwards this form to the credit department and the trade finance
department who upon receipt of such liability form make required scrutiny so
as to check whether or not the customer owes some money to the bank or not.
 Account Statement Request Form
This small form is used to request for the account statement for the desired
period. The client gets this Performa from the account-opening department and
then, after filling it up, gives it to the computer section that gives the statement
to the client in printed form.
 Vernacular Form
This form basically functions as a thank you letter (and also as a request) on behalf
of the customer if he wants to operate his account by doing signatures in a language
other than that of English. In this particular form the client gives his assurance in
writing that he would indemnify the branch against any loss that may be caused by
reason of his signing in a language other than that of English.
 Issuance Requisition
This requisition is used by the staff to order for any thing (e.g. stationary) they need.
They write the type and quantity of the stationary they need, get it signed by the
Manager Operations, give it to the person in-charge of issuance of stationary who
on receipt of this requisition (duly signed) issues the stationary.
139
 Debit And Credit Vouchers
These two vouchers are basically used when an account has to be closed. The debit
voucher shows as to how much amount has to be taken from the client’s account
and the credit voucher shows as to how much amount has to be credited as Bank’s
income, in order to facilitate the account closing process.
 Application To Close The Account
This is a pre printed application of the bank in which the client fills in the account
number, the title of the account and the type of account and requests the branch
manager to close his account with the Bank.
 Application To Change The Address
This is again a pre printed request form in which the client fills in his name, account
number, telephone number/s and the new address so that he could communicate
with the bank and receives all the notices, statements and other necessary document
which the bank might send through mail depending upon the circumstances.
140
Discrepancies:
If there is fond any discrepancy in any of the following particulars then the form will not
be entertained:
1. Date of account opening 13. Hold Mail
2. Account opening Approval 14.Either or Survivor Instructions
3. Customer Name 15. Next of Kin Information
16. Proof of Guardianship in case of

4. Joint Name (in case of joint account)
Minor’s Account
5. Mailing Address 17. Thirty Party Mandate
6. Alternate Mailing Address 18. Specimen Signature Card
7. Telephone Number 19. Check Book Ordered
20. Introducer’s Name and Account

8. Nationality
number
9. NIC / Passport 21. Introducer’s Signature Verification
10. Currency of Account 22. Segment Code mentioned
23. Signature on Bank’s Terms and

11. Related Account Information
Conditions
141
12.Zakat Deduction Authorization 24.Account Type
My experiences during internship in Accounts Opening Department:
During my internship at Bank Alfalah Ltd, Shahdin Manzil Branch, my experience was
very good while working in the said department that is the Accounts Opening Department.
This was the first ever experience of my life regarding working in any professional
environment with practical people working around.
(Incharge of Account Opening) was very much keen in telling me all the details of all the
workings of that accounts opening department. I was being supervised at that critical time
who was a very bright person and make me ease up to a greater extant. Being a previous
PU student, university fellow and admirer of Hailey College of Commerce, she went very
supportive to me. She was also very hardworking and supportive type of a colleague to me.
She taught me each and every thing that can happen in the accounts opening department
also direct me about the procedures of other banks dealings. Whenever she was busy in
doing a work regarding the accounts opening things she never forgot to tell me what she is
doing and what is the purpose of doing that thing.
During my stay at the accounts opening department, I got a chance to open some accounts
after the approval and due verification from my supervisor, he told all the stamps, which
have to be incorporated in the account opening form, to me. I did mistakes as well while
opening of accounts regarding stamping at the correct place and writing account titles. But
he never ever said a word to me regarding that. This is the thing, which I observed that
employees at Bank Alfalah are very cooperative and supportive. This is the reason why the
customer satisfactions irritating all along in the branches of the bank.
142
Chapter 7
Problems and Recommendations
7.1: Recommendations
Some of the recommendations that I would recommend to some of the problems
discussed in the above section, that might increase the efficiency of both the operations
and employees of Bank Alfalah are as follows
 Technological Advancements
Bank Alfalah should develop a modern connectivity architecture to effectively

maintainan online connection of the branch with other branches and also the ATM
link, whichmay include using modern technologies like fiber cables, routers etc.
Also backup linksshould also be developed,
Also a proper IT department should be established in all branches, with professional
having the knowledge to maintain a secured connection with other banks. Also
scheduled
backups of data should be done with in the bank.
 Workshops and Counseling
Work shop programs should be conducted in every city, rather than just two centers,
forall Bank Alfalah employees. These workshops should relate to all aspects of
banking andmay also be conducted with other banks as a joint program.
Also as parts of the human resource training, counseling programs should be started
forjunior executives or new entrants into the bank, introducing them to their
prospects in thisindustry.
143
The lower staff employed at Bank Alfalah should also be given a chance to succeed
in
life by training them in different simple jobs at the bank, which my include sorting
of
cheques, phone banking etc.
 Incentives
Incentive schemes should be developed for the employees that can help motivate
them,which might include:·
 Personal loans and car financing facilities for all ranks of employees.
 Scholarship programs for all employees
 Introducing employee awards at branch and regional levels.
 Job rotation programs to enhance the skills of employees.
 Priority Banking and Business Development Department
There is no priority banking department at Bank Alfalah, like that of other bank. A
priority banking department should be developed so as to give even more exclusive
andcustomized services to high end customers with large deposit accounts. Also
BusinessDevelopment Department should be developed in all branches, so that they
can activelyfind prospect customers to take up products from Bank Alfalah.
 Innovative Products
New and innovative products should be introduced by Bank Alfalah, like other bank
suchas Citibank and Standard Chartered Bank develops for their customer. For this
purpose,special teams should be developed that include professional from all
departments of thebanks to come with ideas. This process will increase the number
of ideas generated andeven produce innovative products for the bank that might
give them the edge.
144
 Placements of Employees
There are some departments in the bank that do not have enough employees, while
somehave more than needed. All this creates inefficiencies and so the operations
managershould look at the department of the branch and see where inefficiencies
lie, inconsultation of with the heads of the departments and hire individuals where
there areless employees or rotate employees from other departments.
 Amenities in Branch
There should be a prayer room developed in all branches as many employees want
to pray, but do not have the proper place to do it. Also work like sorting, which
takes up alot of space should be done in a separate place and amenities like
television and internetconnection should be placed in the common room, so as to
give employees a relaxingenvironment when they have a break.
145
Chapter No 8
List of Annexure
Employees Stock Option Scheme:

The Bank has granted share options to certain critical employees, (the “employees”) under
the Employee Stock Options Scheme (ESOS) as approved by the shareholders and
Securities and Exchange Commission of Pakistan (SECP) vide its letter no.
SMD/CIW/ESOS/02/2013 dated December 27, 2013. Under the Scheme, the Bank has
granted options to these employees (as selected by the Board Compensation Committee,
specifically formulated as required under the Public Companies (Employees Stock Option
Scheme) Rules, 2001) to subscribe for fresh ordinary shares of the Bank (being issuance
of further capital without issue of rights) in the years 2014, 2015 and 2016. The options
entitle the selected employees to purchase shares at 40% discount (the Option Discount),
of the market price prevailing at the date of the grant. As per the Scheme, the entitlements
and exercise price are subject to adjustments because of issue of right shares and bonus
shares. The options carry neither right to dividends nor voting rights till shares are issued
to employees on exercise of options.
The options granted to the CEO were more than 5% of the total options granted during the
years 2014, 2015 and 2016.No employee was granted with options more than 1% of the
issued / paid up capital of the Bank. Tax under Salary has been deducted in respect of
shares issued on account of Options exercised by the employees during the relevant years,
in accordance with applicable laws.
Details of share options granted under the scheme together with the status as at December
31, 2016 are as follows:
146
Annexure I
Particulars Granted in 2016 Granted in 2015 Granted in 2014

Total number of options issued 13.737 million 12.614 million 11.331 million
Date of Grant 1-Apr-16 1-Apr-15 1-Apr-14
Options no longer in issue 0.492 million 1.099 million 1.594 million
Options vested during the year:
-2014 N/A N/A Nill
-2015 Nill 3.553 million
-2016 Nil 4.063 million 3.283 million
Options exercised during the year:
-2014 N/A N/A
-2015 N/A 2.563 million
-2016 2.782 million 2.620 million
Vested options cumulatively carried forward N/A 1.192 million 1.471 million
Options not yet vested upto December 31, 2016 13.245 million 7.540 million 3.083 million
Number of Senior Managerial Personnel, Including the CEO to
whom options were granted and remained outstanding at 35 35 30
the year end 2016
Options granted to Senior Managerial Personnel which 8.262 million 6.390 million 3.526 million
remain outstanding at the year end 2016 shares shares shares
Option exercise price Rs. 14.95 per share Rs. 15.15 per share Rs. 16.32 per share
Option Discount Rs. 9.96 per share Rs. 10.10 per share Rs. 10.88 per share
Total shares issued on account of Options exercised:
During the year 2014 N/A
During the year 2015 N/A N/A 2.563 million
During the year 2016 2.782 million 2.620 million
Amount received against exercise of Options:
During the year 2015 N/A N/A Rs. 41.836 million
During the year 2016 Rs. 42.146 million Rs. 42.749 million
Shares issued to Senior Managerial Personnel on account of options availed:
During the year 2015 N/A N/A 1.685 million
During the year 2016 1.774 million 1.937 million
3 years (with one third 3 years (with one third 3 years (with one third
of the options vesting of the options vesting of the options vesting
Vesting Period on completion of each on completion of each on completion of each
year of service from year of service from year of service from
April 1, 2016) April 1, 2015) April 1, 2014)
147
Annexure II
Income Statement
Particulars 2016 2015 2014
Income / return earned 7,332,961 7,808,779 8,777,612
Income / return expensed 3,476,563 3,725,082 4,202,950
Net income / return earned after depreciation 3,856,398 4,083,697 4,574,662
Provisions against non-performing loans and advances - net 216,554 109,353 338,743
Provision for diminution in the value of investments - net 2,114 13,828 43,914
Bad debts written off directly - - -
218,668 123,181 382,657
Net income / return earned after provisions 3,637,730 3,960,516 3,116,854
Other income 313,488 253,125 254,616

Fee, commission and brokerage income 45,320 40,867 90,460
Dividend income 139,742 133,190 196,399
Income from dealing in foreign currencies 2,054 83,649 14,239
Gain on sale of securities - net - - 857
Unrealised gain on revaluation of investment classified as held for trading 87,370 91,983 68,225
Other income 587,974 602,814 624,796
Total other income 4,225,704 4,563,330 3,741,650
Other expenses
Administrative expenses 3,061,824 2,764,172 2,595,380
Provision against off-balance sheet obligations 304 - 3,831
Other charges 1,088 1,088 692
Total other expenses 3,063,216 2,765,260 2,599,903
Profit before taxation 1,162,488 1,798,070 1,141,747
148
Assets 2016 2015 2014
Cash and Balances with Treasury Banks 10,191,942 9,516,305 9,424,644

Balances with and due with Financial Institutions 1,672,323 2,938,812 2,655,800
Lending to Financial Institutions 27,997,227 12,610,451 17,286,944
Investments-net 38,670,241 59,424,549 42,725,945
Islamic Financing and related Assets 56,720,714 42,056,149 36,314,148
Operating Fixed Assets 2,128,031 2,285,906 2,130,999
Other Assets 2,317,048 2,664,563 4,571,148
139,697,526 131,496,735 115,109,628
Liabilities
Bills Payable 1,862,656 1,428,720 1,348,263

Borrowings 3,833,240 9,984,637 9,756,894
Deposits and other accounts
Current accounts 43,990,411 38,196,882 34,284,151
Saving accounts 53,988,674 51,824,143 44,024,101
Term deposits 18,038,671 14,714,498 11,428,821
Others 428,262 429,421 807,927
Deposits from Financial Institutions-remunerative deposits 1,113,125 240,392 214,559
Deposits from Financial Institutions-non-remunerative deposits 1,867 1,946 1,319
Other Liabilities 6,302,957 5,303,877 4,799,138
129,559,863 122,124,516 106,665,173
Net Assets 10,137,663 9,372,219 8,444,455
Represented by:
Islamic Banking Fund 1,800,000 1,800,000 1,800,000
Exchange Equalization Reserve 878 -56 10,786
Unapropriated/Unremitted Profit (head office current account) 6,626,936 6,463,950 5,665,417
8,427,814 8,263,894 7,476,203
Surplus on revaluation of Assets-net of tax 1,709,849 1,108,325 968,252
10,137,663 9,372,219 8,444,455
Remuneration to Shariah Advisor / Board 6,720 4,605 2,800
Charity Fund
Opening Balance 176,557 131,543 145,707

Additions During the Year
Received from customers on delayed payments & others 40,182 80,933 53,410
Non-Shariah compliant income 9,524 1,295 3,805
Profit on charity saving account 6,958 8,527 8,861
56,664 90,755 66,076
Distribution of Charity
Welfare works -38,357 -16,397 -20,511
Health -38,850 -24,163 -43,425
Education -7,700 -5,181 -16,304
Payments/Utilization during the year -84,907 -45,741 -80,240
Closing Balance 148,314 176,557 131,543
149
Conclusion
The economy of the country is booming and with the investment favorable policies and
their smooth implementation, the role of banks in today’s economy have become an
important one.
The banking industry is also reaping the fruits of this economic boom by growing rapidly
over the past few years. There are a number of mergers happening in the economy with
foreign investments coming into the banking sector.
It has been ten years since the establishment of Bank Alfalah, and since its establishment
it has aimed to become the leading bank of Pakistan by that provides outstanding services
to its customers.
The bank has seen phenomenal growth in the past few years by opening more branches in
the country, increasing the deposit base, while also increasing the assets and profits of the
bank.
The services that Bank Alfalah provides have a great market penetration not only because
of their features but also the profit and markup rates that they charge. Also the products
that Bank Alfalah provides cater to sector of the economy.
The top management of the bank is always developing strategies that cope with unexpected
challenges to deliver products and services more efficiently
Furthermore, as the bank is growing, the number of employees at Bank Alfalah are
increasing, which shows that Bank Alfalah is being considered as a an employer, that
provides its employees with a challenging environment to work in, where they can harness
their full potential and shows confidence as an employer by the employees of the bank.
Lastly to become the leading bank of Pakistan, Bank Alfalah has to benchmark its services
to its major competitors in the industry or the market leader in the industry and provide a
continuous mean of improvement in its existing products and services, while introducing
new ones to the industry.
150
151
Reference
Annual Report of Bank Alfalah 2014
Annual report of bank Alfalah 2015
Annual report of bank Alfalah 2016
www.wikipedia.com
www.scribd.com
www.googlescholor.com
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Preface

1.1: History& Background

According to bank Alfalah website (www.bankAlfalah.com) Bank Alfalah Limited was

1.2: Business Philosophy

 Objectives of Bank Alfalah

The objectives of Bank Alfalah are as follows:

 To get maximum share of the market

 To price the products optimally

 To reinforce a corporate culture that fosters learning, creativity and flexibility.

To inspire and empower people

We look at the market with fresh eyes

 Awards and Achievements

 Bank Alfalah Most Popular Auto Financing Bank

2.1: Organization Chart

The Bank provides financial solutions to consumers, corporations, institutions and

Chief Executive Officer

Executive In charge Strategic Planning & Executive In charge International &

Executive In charge Human Resources Executive In charge IT Division

Executive In charge Credit Division Executive In charge System & Operation

Executive In charge Establishment & Executive In charge Credit Monitoring

Executive In charge Business Executive In charge Legal Affairs

Executive In charge Audit & Inspection Executive In charge Finance Division

Executive In charge Corporate Banking Executive In charge Islamic Banking

SME Financing & Home Loan

Executive In charge New Products & Executive In charge Cards Division

Senior Executive Vice President

Executive Vice President

Senior Vice President

Assistant Vice President

Officer Grade I,II,III

Clerical Staff Non-Clerical Staff

Cashier Typist Clerks Guards Messenger

Policies overview at Bank

Alfalah’s policy regarding consumer-banking policies includes the development through

 Services and Product Polices

 Stop Payment Instructions

The bank offers different types of Deposits to its account holders.

 Alfalah Musharakah Saving Account

 Musharakah Time Deposits On PLS Basis

 Drafts, Telephonic Transfers, Pay Orders

 Trade Department Policy

 Promotion and Incentives

 Training and Development Policy

 Quality assurance services

2.5: Managerial Policies

Administrative style of Branch Manager is authoritative. His authoritative style is the

 Department Head level

 Impact of Management Style on Employees

The following important aspects need consideration.

 Morale and Productivity

Consequently, the overall impact of the well-equipped management styled organization is

 The Strategic Hierarchy

Forward integration, backward integration, and horizontal integration are sometimes

2.6: Credit Rating

Marketing Mix of Bank Alfalah LTD.

Here is an overview of different products and services formulated by Bank Alfalah.

 Nature of Accounts Offered

 Alfalah Kamyab Karobar

Maintain Rs. 25,000 monthly average balance* and avail:

o Free Cheque Books

Features & Benefits

o Minimum monthly balance requirement of Rs. 5,000 only*

Features and Benefits

o No service charges on non-maintenance