Bank Alfalah Internship Report
Bank Alfalah Internship Report
Bank Alfalah Limited
As:
Officer Product Development
Autos – Consumer Finance Division
Bank Alfalah Internship Report
CERTIFICATE OF APPROVAL
I certify that I have read report Bank Alfalah Limited in detail and in my opinion this work meets the
criteria for approving a project submitted in partial fulfillment of the requirements for the Masters
Degree at Institute.
ACKNOWLEDGEMENTS
I am very thankful to Allah Al-Mighty for enabling me to carry out this successful project and also to
Faculty of Institute of Management Sciences, who has aided me and given me enough skill and
knowledge to reach this level of being able to write my own project.
Special thanks to the Bank Alfalah’s Top Management for their cooperation.
Bank Alfalah Internship Report – PREFACE
Internship is the one of the crucial part of the MBA course and this provide the practice knowledge of
what students read about business in their books. Internship report is prepared on the basis of full
fledge analysis of an organization. As this is the only field experience that students before entering
practically into the market.
During our internship / Job I have been rotated different departments as Autos, Operation, Product
Development & internet banking etc. Working at Bank Alfalah is the great experience. they explained
each and every concept to make us clear. This knowledge and practical experience was the thing which
helped us in completing the internship report.
Executive Summary
I am working in Bank Alfalah for one and half year. I tried my best to present something practically from
this opportunity. This report starts from the introduction of word ‘Banking’, and then History of Alfalah
Bank of Pakistan.History of Alfalah Bank shows that how it helps its Nation and Country in both war &
peace.
Bank Mission statement & Vision shows its focus on overall performance of the bank and
Quality of services and products.
After restructuring of the bank the objectives of the bank are changed. Now it has objectives to
overcome past mistakes, realize the real importance of customer so now it has main objective to
achieve customization.
Bank also provides facility of L.C to support export and import in the region.
SWOT analysis of Alfalah Bank of Pakistan shows that it has small number of strengths and lot of
weaknesses. The bank should give attention to this drawback. But bank has lot of opportunities to
improve its quality of services, and do efficient banking. Bank should give proper attention to overcome
its threats.
TABLE OF CONTENTS:
Introduction
Introduction to Bank Alfalah
Company Secretary
Branches Network
Features
Products of Bank Alfalah Limited
Atm
Online Banking
Phone Banking
Rupee Travelers Cheques
Credit Cards
Alfalah Car
Home Financing
My Work During Internship / Job
Recommendations & Conclusion
INTRODUCTION
Following privatization, Bank Alfalah emerged as new identity of Habib Credit and Exchange Bank with a
revived purpose and commitment. Charged with the strength of Abu Dhabi consortium and under the
leadership of his Highness Sheikh Nahayan Mubarak Al – Nahayan, the bank has already made
significant conditions in building and strengthening both corporate retail banking sector in Pakistan.
Designing the product portfolio of bank response to the customer’s preferences, the product like Royal
Profit, Royal Patriot and Royal Custodial are prime examples of quality and innovation providing timely
banking opportunities to customers of bank.
Assessment of the needs and wants of the customers is an on going process at Bank Alfalah, which helps
to continually develop new products and services. To continuously offer courteous, professional and
advanced banking solutions, the team of bank has recently been rejuvenated by going through training
programs with a focus on information technology.
To make their banking solutions become accessible to more and more people, they have embarked
upon a rapid expansion program, aiming to provide a networking that makes the services available to
any of their customers in all the major urban centers of Pakistan – with a view to go international in the
future.
With their key indicators of progress already soaring to new heights, the bank is committed to dedicate
all its energies, resources and time to bring higher value and satisfaction to their customers, employees
and shareholders.
The graph of bank is going up and up every year. The ratio of profit is increasing at good percentage. Thy
bank is serving the people at high level of standard by going according to the wishes of the customers.
INTRODUCTION TO BANK ALFALAH
Bank of Credit & Commerce International (BCCI) was a Pakistan based bank, established by Mr.Agha
Hassan Abdi from UBL, in association with U.A.E and Europe. BCCI has its branches in 74 different
countries of the world. It had its 3 branches in Pakistan. In 1991, the BCCI was banned, when it was
accused by European countries that the bank was involved in some illegal operations with Gulf
countries. The major reason behind European accusation was that BCCI was of Islamic mode. Therefore,
the bank was closed due to international pressure. Then, its 3 Pakistani branches were taken over by the
Government of Pakistan, which were named as Habib Credit and Exchange Bank (HCEB) and these were
working as subsidiary of Habib Bank Limited.
Following the privatization in July 1997, Habib credit and Exchange Banned assumed the new identity of
Bank Alfalah on February 25, 1998. It is now Abu Dhabi based bank as the family of Sheikh Nahayan
Mubarik Al Nahayan purchased 70% of its shares and 30% shares remained with Habib Bank on behalf of
Government of Pakistan.
The development of various sectors in Pakistan. The bank has already made significant contribution in
building and strengthening both corporate and retail banks sector in Pakistan. Assessment of the needs
and wants of customer is an on going process at Bank Alfalah, which help to centennially develop new
products of services. Designing the product portfolio in response to royal patriot, royal custodial, Alfalah
car finance, Alfalah rupee traveler cheques, home loans are prime example of quality innovation
providing timely banking opportunities to customer. To continuously offer courteous, professional and
advanced banking solution the team of bank has recently been rejuvenated by going through training
programs with focus to information technology.
With their key indicators of progress a steady soaring to new heights, the bank is committed to dedicate
all its energies, resources and time to bring higher value and satisfaction to their customers and
employers.
The graph of the bank is going up and up every year. The ratio of profit is increasing at a good
percentage. The bank is serving the people at high level of standard by according to expectation of
customers.
FINANCIAL HIGHLIGHTS
Bank Alfalah has grown 51.84% in its total assets and 101.35% in its equity. The Bank netted record pre
tax profit of Rs. 3.506 billion, a 291.85% increase over the corresponding period last year (2004), which
includes capital gains on Federal Government securities of Rs. 2.19 billion. The deposits of the Bank rose
to Rs. 76.7 billion which is 48.4% higher than corresponding period last year (2004) and indicative of
increasing customers’ confidence in your Bank, because of its superior services and healthy practices.
The Loans and Advances figure stood at Rs. 50.37 billion, an increase of approximately 71% over the last
financial year (2004). This portfolio has been supplemented keeping the Bank’s stringent and prudent
policies in view.
BRANCH NETWORK AND CONSUMER BANKING
Bank Alfalah continually endeavors to develop a wider spectrum of innovative financial products based
on consumer needs. The Alfalah Visa Card has been recognized by the Visa International as the first
credit card in South Asia to have crossed the 100, 000th mark in the shortest timeframe. Alfalah Car
Finance is another market leader offering superior value and convenience to its clients. Financing
scheme launched by the Bank offers great potential of becoming yet another important product of the
Bank. Phone Banking was launched with a view to establish a more direct contact with our clients. This
support centre has greatly facilitated the overall sales efforts of the Bank. Alfalah has emerged as one of
the leading commercial banks in the financial sector of Pakistan.
Branches Network
The network of bank alfalah consist of 101 branches all the country-wide Details: –
CITIES & No. of Branches
Karachi 18Bank Alfalah Internship Report
Lahore 13
Peshawar 2
Rawalpindi 2
Faisalabad 2
Multan 5
Bhawalpur 1
Gujranwala 1
Gujrat 1
Hyderabad 1
Islamabad 1
Jehlum 1
Mardan 1
Mianchannu 1
Mengora (Sawat) 1
Queeta 1
Rahim Yar Khan 1
Sahiwal 1
Sargodha 1
Sheikhupura 1
Sialkot 1
Sakhar 1
Wah Cantt. 1
Gawader 1
Dera Ghazi Khan 1
CREDIT PORTFOLIO
A depressive interest rate environment has spurred the competition for scarce banking assets in local
financial industry. While Bank Alfalah remains a key player in the market, however, it treads with
caution so that the quality of its credit portfolio is not compromised.
The Bank has employed a proactive approach in the form of a well-designed and transparent credit
approval process. This process benefits from an inherent system of checks and balances at each level.
FOREIGN TRADE, CORRESPONDENT BANKING AND TREASURY OPERATIONS
Bank Alfalah offers high quality service to its foreign trade clients. Customers are assured of efficiency
and timeliness when dealing with their overseas counterparts. Our clients enjoy the benefit of our well
integrated global correspondent-banking network giving them greater global reach. This comprises more
than 200 financial institutions all over the world signifying the favorable reputation that Bank Alfalah
enjoys globally as a stable and responsible banking institution.
During the year, the foreign trade volume of the Bank has recorded an impressive growth and it has
reached to the level of 8% of total foreign trade of the country. The imports figure of Rs. 46.81 billion
and exports figure of Rs. 44.27 billion represented an increase of 38% and 34% respectively over the last
year figures.
The Bank has also been fairly active in the inter-bank market and enjoyed substantial lines of credit. The
Treasury Division added significant profitability to the Bank through its intuitively priced transactions
and proactive strategies for both investment and realization of capital gains.
CREDIT RATING
Despite the political and economic uncertainties, Bank Alfalah was able to maintain its impressive credit
ratings of AA- and A1+ in the long and short term respectively. These ratings are indicative of a very high
credit quality and low potential for credit risk. These ratings have been assigned by the PACRA, the
leading credit rating agency of Pakistan. These ratings have been awarded on the basis of a steady
improvement in organizational performance, augmentation in equity base and increased sponsor
backing.
HUMAN RESOURCE DEVELOPMENT
Development of professional skills and knowledge of the employees is essential for the efficient
functioning of any organization. At Bank Alfalah appropriately designed policies and practices have been
instituted to achieve this strategic objective.
Our state-of-the-art training centre at Karachi remains indispensable in imparting valuable training to all
our team members. This has become especially important considering the pace of change that the
banking industry is exposed to. Consequently training ensures that change is successfully navigated to
discover potentially beneficial opportunities that can be transformed into direct gains for the Bank and
its customers. This also positively impacts the confidence levels of our employees translating into better
job performance and satisfaction. During the year 2004-2005 we aim to establish a similar training and
development facility in Lahore, Pakistan.
Bank Alfalah Vision
“To be the premier organization operating locally and internationally that provides the complete range
of financial services to all segments under one roof.”
Our vision is to be a leading financial institution, with a niche in areas where we have a competitive
advantage with complete banking solutions. Our focus is on improving performance in each of our
businesses to achieve consistent and superior returns for our highly valued clients and stakeholders.
Bank ALfalah Mission
“To develop and deliver the most innovative products, manage customer experience, deliver quality
service that contributes to brand strength, establishes a competitive advantage and enhance
profitability, thus providing value to the stakeholders of the bank.”
Our mission is to maintain competitive edge in quality banking, customer service and profit
performance. Our activities are geared towards making Bank Alfalah a responsible corporate citizen. The
emphasis on “Quality and Innovation” will remain our key mission statement. We will continue to
strengthen our position as the leading provider of quality financial services in Pakistan.
PHILOSOPHY
Excellence in service
Quality performance
Product innovations
CORE VALUES
The core values of BAL are
Honesty and Integrity
Mutual Respect and Trust
Open, Honest and Direct Communication
Customer’s Focus and Service
Justice and Fairness
Commitment and Hard work
Innovation, Creativity and Initiative
Humility
CORPORATE SOCIAL RESPONSIBILITY
“Our support always remains at the forefront – from rehabilitation and conservation of historical
buildings and from education to sports. We, as corporate citizens, are involved in social uplift, welfare,
culture and sporting activities across the country”.
ALFALAH’S AUDITING
The auditing procedures are used to check and verify performances and targets of all the staff, at branch
level, at higher level, and also to see the target levels and benchmarks that we are supposed to achieve
from our sales etc because of our customers. We use them for compliance and verification. They are
used especially for risk management. The procedures are set keeping in mind the SBP regulations. But
the proper auditing we carry out is through budgeting, through the budgets we check how we are
performing especially from top down level.
KEY INITIATIVES
Implementation of branch and product level service standards
Product level key performance indicators (KPIs)
Branch mystery shopping and customer satisfaction surveys
Standardized problem reporting and resolution process
CORPORATE INFORMATION
THE BOARD
H.E.Sheikh Hamdan Bin Mubarak Al-Nahayan Chairman
Mr.Abdulla Khalil Al-Mutawa Director
Mr.Abdulla Nasser Hawaileel Al-Mansoori Director
Mr.Khalid Mana Saeed Al Otaiba Director
Mr.Ikram ul-Majeeb Sehgal Director
Mr.Nadeem Iqbal Sheikh Director
Mr.Sirajuddin Aziz Chief Executive Officer
BOARD OF DIRECTORS
Bank Alfalah Internship Report
FEATURES
Bank Alfalah Limited is an established bank. It has some special features with the help of those it is
growing rapidly.
OUTSTANDING WORK ENVIRONMENT
As the work environment plays a great role in this competition age, so the bank has good work
environment. All the people work with cooperation; managers are so kind that each problem can be
discussed with them.
EFFICIENCY
Employees at Bank Alfalah are quite efficient. They work more than their working hours and it is all
according to their will. It also shows their loyalty, commitment to organization.
CUSTOMER SERVICES
All the customers are entertained individually. Same kind of behavior and attention is given to all the
customers.
SUGGESTIONS ASKED FROM CUSTOMERS
Getting ideas for improvement from customer side is a new idea and that is working very well in Bank
Alfalah Ltd. All the customers are asked to fill a suggestion form and the standards of the bank are
improved through them.
EMPLOYEE BENEFITS
Employees are given the benefits like bonus, gratuity funds, loans, increments, house rent, medical and
conveyance allowances.
COMPUTERIZED WORKING ENVIRONMENT
In bank, all the work is done remotely. All the entries are made using the systems which are internally
and externally integrated. This increases efficiency of the bank.
ATM
Bank Alfalah through its commitment to provide superior and improved services to its valued customers,
has unveiled a nationwide network of ATMs. For customer convenience, customers now have access to
instantaneous cash availability, 24 hours a day, 7 days a week.
ATM network is geared up to exploit the latest technology, and is equipped to meet the highest
standards of security and efficiency. With new ATM card you can now:
Withdraw Cash
Use our convenient, user-friendly fast cash option
Make a Balance Inquiry.
Get an instant printout of your account balances
Get a printout of your last transactions (Mini-statement) on the spot.
Change your PIN (Personal Identification Number).
Bank Alfalah is pleased to introduce 27 state of the art ATMs, deployed at the most convenient and
accessible locations. Bank Alfalah is a founder member of the 1-Link Switch, thus making a countrywide
network of ATMs available.
ONLINE BANKING
Bank Alfalah now offers the facility of on-line banking to its customers through its countrywide network
of branches. Customers can use the ATMs or the banking counters of any branch for day-to-day banking
needs, irrespective of branch where they maintain their accounts.
For Corporate customers centralized Cash Management facility is also offered through on-line banking.
PHONE BANKING
“Alfalah Phone Banking” is available to all customers on a countrywide basis. Customers can dial 111225-111 (without any city code/prefix) from their respective cities i.e. 21 cities where Bank Alfalah is
present, and get prompt services from the Centralized Phone Banking Services. Customers enjoy 24×7
Round the Clock Phone Banking Services.
Bank Alfalah is the first bank in Pakistan to offer Centralized UAN connectivity from 21 cities to its Call
Centre with Hunting & ACD facilities.
SECURE AND RELIABLE
An extensive network of quality agents, linked by computer, will transfer your money safely and ensure
that it is handled with care and without delay. Thousands of people already use the MoneyGram service
all over the world. It is trusted for its reliability and security.
CONVENIENT AND FAST
MoneyGram is available in over 154 countries and in more than 40,000 locations worldwide. With
Money Gram your money is transferred immediately and usually arrives at the receiving end within 10
minutes while other services can take days or weeks. There are no complicated procedures and you do
not need a bank account or a credit card.
FREE MESSAGE SERVICE (FOR SENDERS)
There is also an added personal touch-you can receive a 10 word message from the sender with every
transaction at no extra cost.
ORGANIZATION STRUCTURE
COUNTRY WIDE HIERARCHY
Bank Alfalah Internship Report
Source: Bank Alfalah
Alfalah has alleviated its CEO with the Corporate Heads, which is a higher rank. Currently the bank has
five corporate heads, namely Strategic planning, corporate and investment banking, branch banking and
SME, consumer banking, and lastly Islamic banking
CREDIT CARDS
Bank Alfalah Visa Credit Card was launched in Pakistan in February 2003 and is now the market leader.
Visa Debit cards, satisfying a much larger customer base in comparison to any other issuer in Pakistan.
With an extensive network of above 200 branches in all major cities, Bank Alfalah has catered to a huge
untapped potential market and the product positioning of “FREE FOREVER” ensures no annual fee to be
charged to the cardholder forever. Numerous facilities are being offered on their cards including 24
hours utility bills payments, exciting Rewards program, Platinum cards for high net worth customers,
SMS Alerts facility for each transaction, payment or any other activity on credit cards and unique
Insurance Plans for Children Education and Life Insurance. They have also catered to the Cards Acquiring
business resulting in unmatched expansion of the electronic cards acceptance business. An instant
installment plan is also incorporated in the acquiring business, whereby Bank Alfalah cardholders can
convert any transaction conducted at Bank Alfalah merchants to easy installments of 3 to 36 months at
the time of transaction. Recently the cards business has also been expanded to Afghanistan being the
first issuer there and this trend of expansion to other countries will continue in many countries to make
Bank Alfalah the first Pakistani bank to issue cards worldwide.
Bank Alfalah Limited offering credit cards with minimum markup and in wide variety in market. Markup
rate that is charge is 2.50% after the 51 days of transaction. Bank Alfalah also does not charge any
annual fee and no charges when you avail credit card facility.
Bank Alfalah offering various varieties of cards:
Gold Card150,000 — 499,000
Silver Card25,000—150,000
Women Exclusive16,000—499,000
Classic Blue (professionals)
(only for panel companies’ members)
FEATURES
Balance transfer facility-Smart settlements
Offering an easy and convenient way to settle unsettled credit card payments on all existing credit cards
in Pakistan. Avail this facility at as low as 1.5%.
Cash advance facility – 75% of your credit limit
Now you can avail cash advance facility up to 75% of your available credit limit. Enjoy the benefits of this
exclusive offer on your Bank Alfalah credit card.
Step by step monthly installment plan – 1.25% p.m. only
Now you can convert any transaction, amount of Rs. 3000 and above to a step-by-step monthly
installment payment plan. It gives you the flexibility to convert your large payments into small equal
monthly installments.
Free supplementary cards
Offering the facility to acquire free supplementary cards for your family members. Avail this card
without any extra cost.
Fortunes
Offering an amazing rewards program that let you earn points every time you use Alfalah Visa card.
Redeem the earned points anytime for fabulous gifts of your choice.
Discounts
Offering discounts at wide range of outlets, selected especially to much your taste. You can avail
matchless discounts each time you charge your card at these outlets.
Insurance Cover
Offering card members a range of features design to protect you and your family from the setbacks of
life, at very affordable rates.
Petrol facility
Offering you the facility that saves you the extra that you pay when you use Alfalah Credit Card at all
patrol pumps in Pakistan.
Bank Alfalah UNIQUE BENEFITS
Bank Alfalah Auto Debit Service
This facility is specially designed for Bank Alfalah account holders. It gives the option of making
minimum or full payments through Bank Alfalah Savings / Current Pak Rupee account specified on
Alfalah VISA monthly statement.
Bank Alfalah Credit Cover
Alfalah VISA offers card members a new and powerful protection against the uncertainties of life. In the
unfortunate even of prolonged illness, disability or death, it’s reassuring to know that with Alfalah
Credit Cover you have no cause to worry about your monthly credit card repayments. Alfalah Credit
Cover has a range of features designed to protect you and your family from the setbacks of life, at rates
that are affordable.
DOCUMENTS REQUIRED
Eligibility Criteria
Total gross salary / income of Rs. 8,000/- or more per month.
Aged between 25 to 60 years (60 years at maturity of facility).
Should be Pakistani National
For Salaried Applicants
Copy of National Identity Card.
Current Salary Slip/Salary Letter / Proof of BPS (for Govt. Employees)/ Proof of Rank for Armed Forces
Personnel) .
Computerized Personal Bank Statement (on bank letterhead in original) for last six months.
For Self Employed Applicants
Copy of National Identity Card.
Computerized Personal Bank Statement (on bank letterhead in original) for last six months.
Additional Requirements
Partnership deed & personal account statements of partners (if any) for last six months.
Bank letters / certificate confirming Proprietorship (in case of Proprietorship).
Memorandum / Articles of Association / Form A (in case of private limited company).
Recognized professional degree / membership certificate to professional associations (in case of
professionals).
ALFALAH CAR
It’s a scheme that enables one to own his desired car at easily affordable and flexible installments with a
minimum down payment and insurance.
BENEFITS AND FEATURES
Quickest processing
No hidden charges
Minimum down payment
Complete repayment at any point of time
Balance transfer facility {BTF} for existing as well as new clients from other Banks
Tenor period ranging from 1 to 5 years.
Financing of all brand new locally assembled vehicles.
Financing limit ranging b/w Rs. 200,000/- to Rs. 2000,000/CORPORATE & INDIVIDUAL CAR LEASING
We commenced car financing in the year July 2000 We feel immense pride that our car financing has
redefined operating standards. This certainly reaffirms our stance on giving clients maximum value for
their money. Considering this product as the most lucrative mode of lending, and in view of its feasibility
in the near future, BAL offers the most competitive mark- up rates in the market and provides a chance
to the innumerable customers to make their dreams materialized through buying of their desired
vehicles. The product has facilitated in creating strong brand recognition for BAL in the market. Car
Financing has not only become a star product of BAL, but has also provided an impetus for successful
launch of other consumer products.
BAL is offering financing facility not only for the brand new vehicles but also caters to those customers
who wish to opt for used vehicles. Quick processing and turn around time, competitive mark up rates;
affordable installment plans are the key features of the product. When BAL entered the arena of Car
Financing, there were only a few players (including the leasing companies and banks).With growing
consumer awareness and declining interest rate scenario, several banks entered this nascent area. This
scenario gave substantial boost to the overall car sales, which in turn proved to be highly beneficial to
the local car manufacturers. Car Financing, on the one hand provided an opportunity for the financing
institutions to increase their spreads, while on the other hand facilitated in expanding their consumer
base with small per client exposure. The increasing competition demanded constant increase in the
distribution channels, as well as the work force, coupled with offering market driven interest rates for
this product. Today as we look back towards the milestones achieved, we are filled with immense
satisfaction, to have come such a long way since inception of the car finance business. With the
expansion of BAL branches in all big and small cities of Pakistan, the product portfolio has reciprocally
expanded in response to our client’s needs. The bank aims to invariably improve its existing standards
by adopting innovative measures and exploring new perspectives for both products and customer care.
This customer focused banking strategy has enabled Bank Alfalah to evolve as a single source financial
service provider of Corporate and retail banking services.
BAL car comprises a dedicated team of professionals, equipped with sound business acumen and
diversified experiences in their respective fields of operations. Our notion is to serve the quality through
customized and comprehensive offers for our customers. We have offered a wide range of banking
products which are strategically planned and designed to suit our customer’s needs. This notion has
given us strength to face the future challenges. The array of products continues to satisfy the banking
requirements of our customers. BAL is well positioned to capture impending opportunities for growth.
BAL’s intellectual leadership and outstanding management values have given its marketing team a good
momentum to perform. We are confident of our untiring abilities to continue delivering profitable
growth. With a focused and efficient platform we expect nothing less of ourselves and offer nothing less
to our clients.
Now you are provided with the option of either to get the vehicle leased or financed.
INSURANCE
Renowned and reliable Insurance companies are offering the competitive rates of Insurance. Pay year
insurance premium in advance (at the time of down payment) and remaining in the subsequent equal
monthly installment.
HOW MUCH EXTRA MONEY BEING PAID? {MARK-UP}
Offering lowest rate of markup of 12, 12.5%, {per annum}, BAL has captivated a major market share and
so is the plan for future.
REPAYMENTS
Easily affordable installments on monthly basis in the form of postdated cheques will set you free of
depositing your rental cheques every month.
SECURITY
Hypothecation of vehicle in the name of the Bank Alfalah Limited.
YOU CAN ACT AS A CO BORROWER
Acting as a co borrower, will enables your family members {spouse, children- 18 year and above} to avail
the financing facility and can get the car registered in their names as well.
ELIGIBILITY CRITERIA
Yes you get a car loan form bank Alfalah to purchase a brand new car if you are:
Pakistani National Identity Card holder.
Over 20 years of age (Maximum 60 years in case of salaried and 62 in case of a
business person at the time of maturity of the loan).
Salaried, Businessman or self employed.
Required documents for car finance facility
Application form
Copy of national Identity card
Copy of Driving License (optional)
N.T.N. Certificate
Copy of current utilities bill of residence
Bank account statement for last six months from the date of application
Signature verification fro duly verified by t he banker
An Assets & liabilities statement (where bank‘s financing exceeds Rs. 5 Lac.)
CIB report required (where bank‘s financing exceeds Rs. 5 Lac.)
Basic Borrower Fact Sheet
Additional requirements for business class individuals
Copy of rental/ purchase agreement of business premises.
Sole proprietorship letter on relevant business letterhead.
Partnership deed (if applicable).
NOC from other partners (if applicable)
Additional requirement for self employed professionals
Copy of rental/ purchase agreement of business premises
Copy of membership of respective institution/ association
Must be practicing from last 3 years.
Additional requirements for landlord
Fard malkiat/ title deed of land
Undertaking fro competent landlord
Additional requirements for salaried individuals
Certificate from employer showing permanent employment for the last 2 years
Original salary certificate
Take home salary three times of proposed installment
Income of spouse can also be clubbed
If leasing Auto then the Asset will be on the bank name for minimum 2 years and if Financing Auto or
home it will be the honor’s name. Things which are required for car financing:-
Required document’s of a particular person.
Bank statement of a particular person of previous six months.
Copy of fresh CNICof a particular person.
Two photographs required of that person.
If a person is a businessman then his/her visiting card or company letter head is required.
If salaried person needs a car, then his/her certificate of employer is required and his/her salary slip.
When the bank gives the car to their customers, then they take cheque from them which is known as
posted cheque, cheque should be present on every 5th of every month. Car will not be given to a person
who is at the age of sixty. It can be on his son’s name.
Cheque returned or rejected auto Rs.500/- pay service charges.
Penalty on late payment Rs.100 per day or maximum of Rs.1,000 per month installment.
There are two types of car loans
Go on booking, wait for 3 months
Up ready markets (comprehensive insurance policy)
Posted Cheque
If the time period of a car is three years which means 12 x 3. It means the customer will present 36
cheques.
State bank has given this access to all the banks and they know that the customer had taken a loan from
any other bank or not and this access software is known as ECIB (Electronic Credit Information Beauro).
From this software every bank can cheque the financial status of every customer.
HOME FINANCING
The Bank Alfalah Home Finance product continues to be the market leader in Pakistan, having the
largest disbursed and outstanding portfolio among all the commercial banks operating in Pakistan. At
present BAL Home Finance product offers the following five (5) variants to its customers:
Home Buyer (for purchase of already constructed Bungalow/ Apartment/ Town House etc.)
Home Construct (for construction of Bungalow/Town House etc, and for purchase of a residential plot
for subsequent construction.)
Home Improver (renovation/improvement of existing property)
Home Balance Transfer Facility (transfer of existing financing availed from other banks to BAL)
Home Start (purchase of an already constructed financing unit with a moratorium of up to 3 years in
principal payments). This is principally aimed at young professionals.
Our growth is steady, and in line with the market trend, which is that of caution in lending to customers
with even a slightly reduced repayment capacity. However, the focus has increased on attracting
overseas expatriates as our customers, with very good results.
During the last quarter BAL kept its position as a major mortgage financier, in spite of aggressive
competitive posturing by other major banks. Home Finance facility is being provided to the customers in
16 cities viz Karachi, Lahore, Rawalpindi/Islamabad, Faisalabad, Multan, Peshawar, Sargodha,
Gujranwala, Sialkot, Quetta, Hyderabad, Bahawalpur, Abbottabad, Wah Cantt, & Rahim Yar Khan etc.
Bank Alfalah has deployed all available resources to ensure that its portfolio remains adequately
protected from sudden reversals. With restrictions on upper cap gone, Bank Alfalah has already started
booking large ticket loans besides ensuring proper measures in place to counter changing conditions.
THE ELIGIBILITY CRITERIA
You may apply for Bank Alfalah Home Finance:
For acquiring a residential accommodation in Karachi, Lahore, Islamabad,Rawalpindi, Multan, Peshawar
and Faisalabad.
For building your dream house on your property / land.
For renovation or extension of your already owned house.
For transfer of your existing home finance from another lender.
If you are a Pakistani National.
If your age is between 25 and 65 years.
If you are in continuous employment in a permanent position for 2 years
or more.
If you have 3 years (or more) of business or professional experience.
If your gross annual income is Rs: 200,000/ — or more [Your spouse’s
income (upto 50%) can also be combined with yours].
If you require a financing of at least Rs: 500,000/- or more (maximum
Rs: 7,500,000/-)
If you have been a Bank Alfalah borrower for past one year with clean
payment record.
You may apply for Bank Alfalah’s Home Finance for minimum period of 3 years and a maximum period
of 20 years (subject to your age).
DOCUMENTS CHECKLIST
The following documents are required to be submitted by an applicant with the completed application.
For salaried person
2 passport size photographs.
Copy of NIC.
Copies of last Salary / Pay Slip duly attested by the HR department.
Salary Certificate (original) from the employer, showing the gross salary and deductions.
Employment verification form from the employer.
For self-employed and Businessman
2 passport size photographs.
Copy of NIC.
Certified Copy of last Six Months bank Statement.
Copy of current professional association membership / trade body membership certificate (if
Applicable).
Sole partnership deed letter.
Copy of Latest Form 29 duly attested by the company secretary.
Letter from company secretary confirming the status and share-holding (where applicant is director of
company).
ANALYSIS OF DEPARTMENTS
MARKETING DEPARTMENT
This department includes two responsibilities:
Developing new products, and
Sales promotion
Sales (issuance) include:
Direct sales, and
Telemarketing
Sales (acquiring) includes installation of POS machines at different merchant locations. Procedural steps
are:
Location survey
Merchant profile
Relationship with other banks
Installation of POS at different merchant locations.
FINANCE DEPARTMENT
This department includes settlement of all payments relating to cardholders, Merchants, Treasury
department, Reconciliation settlements and preparation of financial accounts. There are three sections
under finance department:
Accounts Payable and Final accounts
This includes dealing with vendor payments, bills paid by cardholders, cash withdrawal of cardholders
and salary payments.
Settlements
This includes General Ledger and all debit and credit charges to cardholders.
Reconciliation/ Rectification
This includes Suspense accounts and adjustment of Suspense accounts.
IT DEPARTMENT
This department includes credit card software support and maintenance, in-house programming and
development and in-house technical support.
OPERATIONS DEPARTMENT
This department includes authorization, embossing, processing of items, fraud management, dispute
resolution, mailing and archiving and customer services.
CASH DEPARTMENT
This department includes Receipts and Payments.
Receipts:
In this, the depositor’s slip is credited and posted in the concerned accounts.
Payments:
In this the cheque is handed over to the cash payment officer for payment.
CLEARING DEPARTMENT
This includes Inwards and Outwards clearing.
Inward Clearing:
This includes the cheques to be honored by bank. The SBP clears the cheque draft.
Outward Clearing:
In this the cheque of other banks sends for the collection.
ACCOUNTS DEPARTMENT
This department is concerned with revenues, expenses, assets and liabilities. In this all the vouchers
posted during the same day are sent to the accounts department the next day.
REMITTANCE DEPARTMENT
Bank Alfalah uses several modes for transfer of funds. These are Demand Draft, Telegraphic Transfer,
Pay order, Call Deposit, Pay slip, Money gram.
CREDIT DEPARTMENT
This includes credit marketing department, credit administration department, and trade finance service
department. The department deals with extending the loans under the SBP regulations.
CREDIT RISK MANAGEMENT
Credit risk management involves new accounts, customer reassessment unit, verifications, collections
and recovery. This includes area wise verification and also physical certification, legal notices and suits.
In case of vehicle, a due date diary is to maintained for lodgment of PDCs. If any cheque is returned
unpaid then immediate telephonic contact with the borrower is done. In case contact is not established
with the borrower then a notice with seven days grace period is served. If there is no response from the
borrower within 60 days then repossession of the vehicle is done. Insurance is monitored on monthly
basis.
Bank Alfalah SWOT ANALYSIS
During the internship of eight weeks of mine in Bank Alfalah Limited, Credit Card Centre Lahore, I am
going for SWOT Analysis.
Strength
Bank believes on customer service. In first week of internship, I worked on customer feedback desk for
the purpose of improve the services.
Customer feedback is collected on daily basis and reported to the Branch manager and area manager.
Bank Alfalah providing the credit card facility at minimum rate all over the Pakistan with other good
benefits.
Phone Banking is offered first time by Bank Alfalah in Pakistan.
Bank Alfalah modernize its banking by providing the facility of Online Banking, ATM and money gram
Bank Alfalah enjoying the large market share in car finance area.
Home finance and agriculture loans are recently introduce by BAL at competitive rates.
Quematic machine is used to provide facility to customers.
Branch Manager and Chief Manager having good coordination with staff to make the environment
friendly.
Weakness
Customers are not properly guided to get the benefit of BAL facility.
Online services are charging compare to other competitive banks.
Opportunities
Banking industry is one of the most growing sectors in Pakistan. So Bank Alfalah should be continually
expanding its network of branches.
Muslims are more consciously differentiate the Islamic-base banking from interest-base banking. That is
why there is large caution of expansion.
Mobile banking should be started to compete in market.
Establishing foreign branches.
All products of Consumer Financing that include home financing, car financing, home appliances
products and others should be introduce to all the branches in the cities of Pakistan.
Threats
Banks in Pakistan those having large networks of hundred branches like MCB, HBL etc. are the great
threats for Bank Alfalah Limited. Large networks can play the important role in banking business. BAL
having small network of 95 branches compare to other key players in industry.
Many other banks are now involving themselves in consumer financing at competitive rate. This is one
of the biggest threats for BAL consumer financing products.
JOB DESCRIPTION
I am working as a product development officer, Auto Finance. Where I use to deal with such cases
mentioned below.
Mature Cases
Issuance of NOC (Removal of Lien) of Vehicles
Sanctioning Waiver to Mature Cases
Sanctioning waiver to Delinquent Cases
Repossessed Vehicle
Release of Repossessed Vehicle
Court Orders
Out of Court Settlement
Auction of Repossessed Vehicle
Deceased Cases
Insurance Claim Cases
Write Off Cases
Profit Maximization
Customer Services
MATURE CASES:
My main target for mature cases is to look for the applications and requests of customer for waver on
charges. I provide approvals for waiver to operations department. In case of Extra Charges like Late
Payment Charges, Cheque Bounce Charges and Termination Charges imposed on customer due to any
reason we sanction waiver to them. Percentage of waiver depends on the reason due to which charges
imposed on vehicle. That might be on the basis of customer request or because of branch mistake.
When vehicle gets mature after paying all outstanding principle. Customer then apply for NOC through
providing us some details and required documents like Application written by customer, Copy of CNIC,
and details of Accounts. We gets all detail through operation department and forward the request to
operation department if customer is eligible for NOC.
ISSUANCE OF NOC:
We Issue NOC to mature vehicle’s customers.
REPOSSESSED VEHICLE:
If customer does not pay his installments in time and DPD increased more then 90 which means
customer did not paid installments during the period of 3 Months then our repossession company trace
the vehicle and repossess. After Getting repossessed we sanction waiver upto 50% if customer request
to pay-off the amount.
RELEASE OF REPOSSESSED VEHICLE:
After receiving amount by customer we provide approval for the release of vehicle following several
terms and conditions.
COURT ORDERS
If customer apply to court for the release of his/her vehicle. Then we follow order of court either in
customers favor or in favor of bank.
OUT OF COURT SETTLEMENT:
If customer tries to contact court for settlement we try to settle the account with customer on which
both parties agree.
AUCTION OF REPOSSESSED VEHICLE:
If car is repossessed and in custody of our bank and customer is not ready to pay-off then we sell out the
vehicle in Auction. Every month we give ads in newspaper for bidding and sale the vehicle to highest
bidder after open bidding.
DECEASED CASES:
I Provide Approval for Waiver on All extra charges imposed on customer in case of customer die. 100%
waiver is allowed being deceased customer. For this Nadra death certificate is needed and application
from family o the deceased customer.
INSURANCE CLAIM CASES:
In case of accident (Total Loss) or Theft we allowed 100% waiver incurred after insurance claim.
Write off Cases:
There are two types of write-off
Partial Write-off
Full Write-off
The write off is necessary to remove the asset of the bank which is considered to be irrecoverable from
the borrower. This write off policy is strictly bases on the guidelines and instruction issued from time to
time by the State Bank of Pakistan. Only those classified non-performing loans are subjected to write off
where all efforts for recovery have been exhausted and chances of recovery of debt is remote.
PROFIT MAXIMIZATION:
My new assignment is to maximize profit of Auto Loan Department where I look for the mature cases,
send the reminders to customer and try to follow up with customer so that they could pay the
remaining amount and collect their NOC and Excise file.
CUSTOMER SERVICES:
customer complaints/request or further information if required by the customer we help them out if
possible try to comfort them by giving our best.
OBSERVATION & CONCLUSION
I observed the bank Alfalah a financially sound bank. Its profits are increasingly year by year. Its staff is
very good and sincere with the bank. Bank Alfalah under the leadership of Sheik Nahayan Mabarak AlNahayan has made significant progress in building and strengthening both the corporate and retail
banking sectors in Pakistan. The bank attained number 2 positions in terms of its balance sheet size
amongst the private banks.
Bank Alfalah views specialization and service excellence as the cornerstone of its strategy. The people at
bank realize that innovation, creativity, reliability, customized, services and their execution are they key
ingredients for their future growth. Revenues from these activities have started yielding dividends and
they expect significant growth.
They are aware that they have stepped into the 21st century and they must meet its challenges by
acquiring the highest level of the technology. They will thus be accelerating their technological advance
to enable them to distribute their products and services through most efficient and high tech means.
They say that they will continue to invest in the modern tools and substantial allocation to resources will
be made to achieve this objective during the current year. Phone Banking and credit card have been
introduced in many cities.
CONCLUSION
During this Period I had a comprehensive exposure related to bank’s functioning.
The current strategies of the bank include a plan of expanding 50 more branches in Pakistan. There rest
of the strategies is properly followed and making the bank prospers. Here, I was compelled to propose
my own strategy keeping in mind all the above factors. The strategy is not asking the bank to increase
their costs as currently this is not the area for the bank to take a risk presently. However, I would, as a
CEO hold on to the strategy of staying a leader and not to worry about other banks.
I would further recommend the bank to improve systems as only this will drive them in future and
improve upon their infrastructure.
And lastly, I would propose an idea of a product for the bank, in the area in which they already have a
competitive niche, which, again, considering the current situations cannot be taken away from them for
the time being for another some time in Pakistan