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Internship report on Bank Alfalah

Internship Report:
BANK ALFALAH LIMITED

SUBMITTED TO:
Internship Coordinator
IMS, BZU MULTAN

SUBMITTED BY:
Natasha Rafiq BB-08-11 BBA(HONS) 7TH Semester

Institute of Management Science, BZU Multan


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Internship report on Bank Alfalah

Acknowledgement

First of all I want to pay my gratitude to Almighty Allah who has enabled me to successfully accomplish my internship in Bank Alfalah Limited.

I am very grateful to the whole team working over there in the organization that have provided me the opportunity to explore the practical applications of the techniques and methodologies concerned with the banking. All the department in charges and managers are very kind and helping especially, Ma,am Qudsia Mazhar from Accounts Deptt, Mr. Amanullah Malik from credit administration department have helped me a lot during my stay in the bank as an internee.

Finally, I want to acknowledge Mr. Muhammad Saqib (Branch Manager) who has guided me all the way through my internship time and stay in the organization for eight weeks. His guidance leads me to the awareness of hidden aspects of the banking sector and practices.

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Internship report on Bank Alfalah

LIST OF CONTENTS

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Internship report on Bank Alfalah

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Internship report on Bank Alfalah

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 Mabarak Al Nayayan, the bank has already made significant conditions in building and strengthening both corporate retail-banking sectors in Pakistan. Designing the product portfolio of bank response to the customers 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 though 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. The bank is serving the people at high level of standards by going according to the wishes of the customers.
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Internship report on Bank Alfalah

BRIEF HISTORY:
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 Band 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. It has its 362 branches in Pakistan. Alfalah has emerged as one of the leading commercial banks in the financial sector of Pakistan. Charged with strength of Abu Dhabi group and under the leadership of his highness Sheikh Nahayan Mubarak, minister of higher education and scientific research and prominent member of Royal family. The bank is energized with vision, envisaging. 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 going through training programs with focus to information technology has recently rejuvenated solution the team of bank.
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Internship report on Bank Alfalah

VISION STATEMENT:
To be the premier organizations operating locally & internationally that provides the complete range of financial services to all segments under one roof

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

CREDIT RATING:
The Bank Alfalah Limited's long term rating increased to AA in the long term and A1+ in the short term. These ratings have been assigned by PACRA, Pakistan's leading rating agency. These ratings denote better risk absorption capacity stemming from enhanced equity as well as well maintained credit portfolio.

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Internship report on Bank Alfalah

PROUCTS & SERVICES:


ATM ONLINE CREDIT CARD CAR FINANCING TREASURY & INVESTMENT RUPEE TRAVELERS CHEQUE FOREIGN TRADE & CORRESPONDENT BANKING

ATM(automatic teller machine):


Bank Alfalah through its commitment to provide superior and improved services to its valued customers, has unveiled a nationwide network of ATMs. For your convenience, you now have access to instantaneous cash availability, 24 hours a day, 7 days a week.

Our ATM network is geared up to exploit the latest technology, and is equipped to meet the highest standards of security and efficiency.

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).

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Internship report on Bank Alfalah Bank Alfalah is pleased to introduce 55 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:
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 online banking.

Credit Card:
Bank Alfalah Credit Card is your partner everywhere and is globally accepted and welcomed at locations displaying the VISA logo. It is accepted at nearly 30 million merchants and 1 million ATMs in more than 150 countries around the globe and over 10,000 establishments in Pakistan. Alfalah VISA lets you pay for shopping, travel, entertainment, meals and much more. Card members are facilitated through a number of promotions from time to time. In addition, there are a number of strategic business partnerships with leading local and international brands for purchase of home appliances at exciting Step-BYStep (SBS) monthly installment plan with free home delivery at lowest interest rates

Car Financing:
Alfalah Car Financing is specially designed for you with easy affordable and flexible installment plan. Lowest turnaround time, best
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Internship report on Bank Alfalah rates and unmatched convenience typically characterize this product. As one of the market leaders, presently the focus remains on innovation and quality. For the convenience of our customers we have initiated strategic partnerships with leading insurance companies that offer our clients special high vale rates.

Treasury & Investment:


1. Money Market a. Short term money market inter-bank trading. b. Active Treasury Bills trading in secondary market. c. Forward forward inter-bank money market trading. d. Money market linked lending to and borrowing from corporate clients 2. Foreign Exchange Market a. Active trading in ready and forward USD/PKR. b. Active quotations of foreign exchange rates in fifteen major currencies. c. Information in respect of prevailing rates of most of the currencies of the world for corporate clients and individuals. d. Forward Forward foreign exchange rates of USD/PKR. e. Active swap trading in USD/PKR and other major currencies such as EUR, GBP, JPY and CHF. 3. Investment a. Active Investment in treasury bills (TBs) b. Active Trading in Pakistan Investment Bonds (PIBs). c. Active investment in Certificate of Investment (COIs) d. Active investment in Terms Finance Certificates (TFCs) 4. Government Securities
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Internship report on Bank Alfalah a. Efficient service for individuals and corporate clients for buying and selling government securities on their appropriate requests 5. Custodianship a. Investment Securities Portfolio Accounts of Customers for holding on their behalf Treasury Bills, Pakistan Investment Bonds.

6. Financial Advisory Services a. Briefing on current information available in market in respect of prevailing rates of USD/PKR. b. Briefing on current information available in market in respect of foreign exchange rates of major foreign currencies. o Future expectations and sentiments on major foreign currencies including Pak. Rs.

RUPEE TRAVELERS CHEQUE :


Bank Alfalah presents Rs.1,000, 5,000 and 10,000 denominations of travelers cheque, making it very

convenient to carry money while traveling or keeping your emergency cash safe. Bank Alfalah travelers cheque are your best travel companion as they provide the most benefits that no other travelers cheque offer. Alfalah TCs have unmatched security features Plus, you don't have to be an account holder to avail these benefits! Free from the risk and hassle of carrying cash during travel, Bank Alfalah TCs ensure safe and smooth travel. An excellent combination that no other TC can contest

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Internship report on Bank Alfalah

Foreign Trade & Correspondent Banking:


Inspired by a challenging spirit and an unyielding desire to create a sound and reliable networking of correspondent relationships, the bank has placed great emphasis towards it growth. Accomplishing something for the first time requires a special focus. It demands foreseeing possibilities. In our endeavor, to do so, we successfully surmounted problems and difficulties arising out of issues relating to weak economic conditions of the economy and a continuous deteriorating status of country risk. The incertitude and skepticism of the international banking community towards financial institutions from emerging markets remained intact. Our persistence during the past four years allowed us to make significant inroads into the arena of correspondent banking. Large international banks, after critically evaluating us, agreed to enter into relationship. During 2002 we added 81 banks to our network of correspondents, bringing the total number over 170. Of these relationships, there are now several banks that rank amongst, the top financial institutions in the world. Our geographical coverage now extends to over 100 countries, which is adequately compatible with our trade flows. Our correspondents, during the year extended us unqualified support, which enabled us to undertake a healthy quantum of foreign trade business. There are many challenges ahead for the bank, in the coming year, our bank will not only continue to review its efforts on existing correspondents to make the relationship more beneficial, but will also add more correspondents to establish a comprehensive international networking to facilitate our customers transaction as well as the Banks proprietary needs. We have provided against the list of correspondents their world and country ranking. These ranking have been taken from The Bankers Almanac July 2001 issue. We would like to emphasize that correspondent arrangements do not necessarily imply the existence of account relationship. We are in the process of rationalizing our current account relationships. We shall continue to open new accounts in various currencies based on our trade flows and business requirements.
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Internship report on Bank Alfalah

JOB DESCRIPTION:
I did my internship at Bank Alfalah Limited, Bosan Road Multan. There I worked in different departments. I started up with Credit Department, where I learned about credit procedures of bank Alfalah under the supervision of credit manager Mr. Amanullah Malik. This branch is just dealing for small and medium enterprise. Then I worked Accounts Department where I Worked under Mis Qudsia Mazhar . After working in Accounts I worked in Account opening. The in charge of this department is Mr.Mazhar Abbas. Then I worked in remittances under the supervision of Mr. Salman Safri. In last I worked in customer dealing area

Staff: Name
Mr. Saqib Mr.Amanullah MAlik Mr.Nasir Riaz Mr.Mushtaq Bhutta Ms Javeria Sadat Ms Qudsia Mazhar Mr. Mazhar Abbas Ms Rabia Mr.Salman Safri

Designation:
Branch manager Credit manger Operation manager Chief cash teller Cash officer Account officer CRO HR in charge Remittances officer

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Internship report on Bank Alfalah

Account Opening Department:


During my stay in this section, I learnt how to open a new account? How to give information to a new client? What are the requirements that should be filled before opening an account and how to issue Cheque books? Opening an Account By opening an account at a bank a person becomes a customer of the bank. There are seven different types of accounts. 1. PLS / Saving Accounts 2. Current Account 3. Royal Profit 4. Basic Banking 5. Alfalah Kifayat 6. Alfalah Mahana Amdan 7. Alfalah Kmyab karobar PLS / Saving Accounts: Minimum account opening requirement of Rs. 5,000 only. No restriction on number of withdrawals and number of deposits. Profit on saving accounts is credited to the customer account on half-yearly basis.

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Internship report on Bank Alfalah

Current Account: Non interest bearing checking account. Minimum account opening requirement of Rs. 10,000 only. 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 number of withdrawals and on number of deposits

Royal Profit Account:


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

Basic Banking account: Initial deposit for account opening is Rs. 1,000 with no minimum balance requirement. Maximum 2 deposits & 2 withdrawals through cheque is allowed. No restriction on ATM withdrawal. Any Pakistani resident can open this account. This account is for individual/joint customers only. Other customers like companies, corporate etc are not eligible for opening of this account. Minimum balance requirement for opening this account is Rs. 10,000/- and no maximum limit

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Internship report on Bank Alfalah Customers can withdraw funds whenever they like. There is no restriction on number of withdrawals.

Alfalah Mahana Amdan Minimum placement limit is Rs. 100,000/- and maximum placement limit is Rs.15,000,000/Expected Rate of profit is 10% Per annum (as per PLS governing rules) Profit will be automatically credited on the 1st working day of each month into customers Current/PLS/RP/BBA account Free Personal Accident Insurance coverage up to the deposit amount or Rs. 1,500,000/whichever is lower. Customer can avail financing facility up to 90% of the deposit(as per banks policy) Any Pakistani resident over the age of 18 can open this account Alfalah Mahana Amdan term deposit can be maintained only at any one BAL branch with a maximum cap of Rs. 15 Million. An undertaking shall be obtained from the customer certifying that he/she is not availing Alfalah Mahana Amdan Term Deposit Receipt facility from any other BAL branch.(included in AOF) Alfalah Mahana Amdan TDR will be issued for three years tenure with auto renewal facility of principal amount i.e. the facility will be renewed automatically on maturity (i.e. 3 years) Alfalah Mahana Amdan TDR will be subject to Zakat, Withholding Tax as well as any other applicable taxes Alfalah Kamyab Karobar: Online Current Account Bank Alfalah presents Alfalah Kamyab Karobar (KK) - a structured, branded, tier-based current account that caters to your banking needs & aspirations. This product will provide you the opportunity to enjoy free services alongside state of the art banking facilities, linked
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Internship report on Bank Alfalah directly to the deposit balances in your KK account. Alfalah KK Account can be opened with minimum deposit requirement of Rs 25,000, while the degree of free services will be dependent on the minimum thresholds of respective tier. Its will give you the power to choose from different tiers and avail banking facility from any of the Alfalah branches PAN Pakistan. KK Accounts have strategically been tailored into 3 different tiers, allowing you to choose the allotted free service to your benefit. The three tiers are as following:

Silver Gold Platinum

The unique tier based structure ensures that you can avail smooth & cost efficient facilities based on your current level of deposits i.e. Higher the deposit, higher the number of free services. Some of the Salient features include (tier-based):

Free Online Transactions Free SMS Debit Alert (Subject to availability) Free PO/DD Free Accidental Cover( Valid for up to two People) Free cash deposit across Pakistan Gold VISA debit/ATM Card with every account

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Internship report on Bank Alfalah

Requirements of Account opening


These types of accounts can be opened. i. Individual Accounts 1. Business Man 2. Student 3. House hold 4. Salary Person ii. iii. iv. Sole Proprietorship Account Partnership Accounts Company Accounts

The requirements of these accounts are as follows 1. Individual Accounts National Identity Card of the account holder. If signatures of the account holder are very easy then three passport size photographs NIC of Next to Kin Reference (Introducer must be account holder of Alfalah bank limited and operate account from last six month) For Salary account Same as above and also attach a letter from a company in which mention date of joining, designation and per month salary. For student account Same as above and also attach a letter by university, in which mentioned the degree program and session (To____ From____)

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Internship report on Bank Alfalah 2. Sole Proprietorship Account National Identity Card of the account holder. If signatures of the account holder are very easy then three passport size photographs NIC of Next to Kin Reference (Introducer must be account holder of Alfalah bank limited and operate account from last six month) Application on Business Letter pad. Stamp of business. (Same Spell as Letter pad and also write proprietorship)

3. Partnership Accounts National Identity Card of the Partnership. If signatures of the account holder are very easy then three passport size photographs NIC of Next to Kin Reference (Introducer must be account holder of Alfalah bank limited and operate account from last six month) Application on Business Letter pad. Stamp of business. (Same Spell as Letter pad and also write Partnership) Copy of National Tax Number Partnership deed If Partnership register then Form C issue by Government.

4. Company Accounts In this case the following documents are required Copies of NIC of Directors of the company
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Internship report on Bank Alfalah Certificate of incorporation of business Certificate of commencement of business (In case of Public Limited Company) Article and Memorandum of Association Latest copy of Form-29 List of Directors Copy of Board Resolution Copy of National Tax Number

Procedure of opening the account


The procedure of opening the account is as follows. Account Opening Form: First of all, the customer fills the account opening form (AOF). Filling of account opening form includes type of account, currency of account, name, address, signature of customer and signature of introducer and attach a photocopy of national identity card. He also signs an undertaking that he will follow the rules and regulations of the bank. Introduction: The signature and account number of the account holder introducing the account to the new person is obtained on the account opening form. The operational manager of the branch verifies it. Specimen Signature Card: The signature of the client is obtained on a specimen signature card (S.S Card). The card is obtained with two signatures from the customer. Every time a cheque is received for payment from the client, the signature on the cheque is verified by comparing it with S.S

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Internship report on Bank Alfalah Card. Requisition slip A requisition slip for Chequebooks is also given to the customer. The customer fills it and gives it to the account opener. Know Your Customer Form Every account holder fills this form. The basic purpose of this form is to get some information about the customer. Account Number: When all the formalities are completed, an account number is allotted to the customer and all the information is entered into the computer and register. Then that account number is written on S.S Card and account opening form. Depositing of amount in account: The client deposit cash in the account. For this purpose cash pay-in-slip is used. The minimum initial deposit is fixed for each account according to the nature of account. If PLS / saving account the minimum requirement is Rs.5,000 only. If Current account the minimum requirement is Rs.10,000 only. Issuance of a Cheque Book: After opening an account with the bank, the account holder makes a request in the name of the bank for the issuance of chequebook. Such a request is known as Requisition Slip. BAL issues chequebook of at least 10 leaves and maximum 50 leaves. When he used this book completely then he can apply for another. This process takes a day because the

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Internship report on Bank Alfalah Chequebooks come from Karachi head office.

Closing of accounts:
The procedure of closing of account is as follows. First of all the customer gives the request to close the account. His signatures are verified. He withdraws all his money from his account but in case of current account Rs. 150 is deducted as a charge of closing the account. A liability form is send to the credit department if he has taken a loan from the bank. If he is cleared from all the liabilities then further proceeds are taken. Permission is granted by the authorized person (the manager). Account is closed in the computer system. Hic specimen signature card is attached with the account opening form and marked closed.

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Internship report on Bank Alfalah

Clearing
In the clearing I Learned from MR Salman . The basic function of the clearing department is to facilitate the customer; it provides them the services in collection of their cheque in other banks. CLEARING actually means the transfer of funds from one branch of bank to the other branch of the same bank or the other bank on which the instrument is drawn, without involving cash through State banks clearing house. NIFT: NIFT stands for National Institutional facilitation Technologies. Clearing House of SBP has shifted a tiresome part of its work to a private institution named NIFT. NIFT collects cheque, demand drafts, Pat orders, Travelers Cheque, etc. from all the branches of different banks within city through its carriers and send them to the branches on which these are drawn for clearing. After the branches approve the instruments drawn on them, NIFT prepares a sheet for each branch showing the number for instruments and amount in its favor and drawn on it and sends it to each branch. A similar sheet for each bank is also sent to clearing house of SBP where accounts of banks are settled in the same manner.

The instruments are collected from the client. Following things are checked. Cheque date (a cheque is valid for six months and it should not be post dated). Title of Account Amount in figures and words should be same There should be no cutting and overwriting on the cheque. Deposit should also match with the cheque.

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Internship report on Bank Alfalah Stamping Procedure: In stamping procedure, the pay-in-slip counter foil the following three stamps are used. If the cheque is for the same bank, and drawer and the payee both have the account in the same bank, the simple bank stamp is used, and this stamp indicates the transfer of cheque from one account to another account. This cheque is directly moves towards posting in computer terminal where the computer operator debit one account and credit the account of another party. This stamp is known as the Transfer stamp. If the cheque is received from other bank and drawers account is not in the bank then cheque received stamp is used. This cheque is represented in the clearinghouse; date is also mentioned on the stamp. If the cheque is from out of the city then it is send for the collection. Stamping On Cheque: After receiving the cheque and issuance of the counter foil to the client, stamping process starts on the cheque; the following stamps can be used.

a) The name and branch name of the bank stamp is used on the front side of the cheque. This stamp is used on all types of cheque. This stamp is known as crossing stamp. b) The second stamp used is the clearing stamp on the front side of the cheque. It also indicates the presenting date of the cheque. If the cheque is dishonored and deposited again for clearing, the clearing stamp is used again with new date of presenting. So the clearing stamp is necessary wherever the cheque is presented for clearing. c) The third necessary stamp, which is the endorsement, indicates the paying bank to payees account credited. It is the confirmation of outward clearing.

The whole clearing process requires about 2 days, after 2 days the customers account is credited and the customer can make the transactions.
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Internship report on Bank Alfalah

Remittance:
Remittance is transfer of funds from one city to another city or within the city. For this purpose, most commonly used instruments are 1) Demand Draft 2) Pay Order 3) Telegraphic Transfer 4) Online Transaction

Demand Draft:
A demand draft is an instrument in writing drawn by one branch of a bank on another branch of the same bank for a certain sum of money; payable on demand to the order of the payee mention therein the draft. Issuance of Demand Draft: The customer makes a request to the banker for a demand draft. The banker gives him/her an application form to fill and ask him to deposit the amount for which he needs draft. The client mentioned the name of payee in the favor of which it is to be paid, the name of branch on which it is drawn and amount of draft on the form and puts his signature on it. Afterwards, he deposits the amount in cash with the bank. In case he is Account Holder of the same bank, he can give cheque instead of cash upon which the banker transfers the amount from his account. When all these formalities are fulfilled, banker issues him a demand draft. Bank takes charges for demand draft that are different in different banks according to their schedules of charges. Internal Process:
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Internship report on Bank Alfalah After issuing demand draft, bank sends a credit advice to the bank on which it is drawn. Drawer bank after receiving credit advice gives credit to DD payable Account. When DD is presented on the cash counter, bank pays cash against it after checking N.I.C of payee and debits DD payable account. If DD is crossed amount is transferred into payees account. Posting is also made in the computer terminals for the purpose of record of the bank. Issuance of Duplicate DD: Bank can issue duplicate of demand draft on clients request after taking charges. The charges are Rs 100. Cancellation of DD: In case, client wants to cancel the draft he has to make an application with his signature. Banker checks the signature. Amount of draft is returned to client after deducting cancellation charges. The cancellation charges are Rs 100.

Pay Order:
A pay order is an instrument in writing issued by bank for a certain sum of money payable on demand to the order of the payee mention within the city, where as pay slip is used for banks internal use. Issuance of Pay Order: The client makes a request to the banker for issuance of a pay order. The banker gives him an application form to fill and ask him to deposit the amount for which he requires the pay order. The client deposits the amount in cash with bank. If he is account holder of the same bank, he can give cheque upon which amount is transferred from his account. After the fulfillment of these entire requirements banker issue the pay order to the customer. Bank takes charges for

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Internship report on Bank Alfalah

issuance of pay order, which varies from bank to bank. Bank Alfalah takes the following flat charges. Internal procedure: After issuing Pay order, banker gives credit Sundry creditors account. Posting is made in the computer terminal. When Pay order is presented on cash counter bank makes payment against it after checking N.I.C of payee and Sundry creditors account is debited. If it is crossed, the amount is transferred into the payees account. Cancellation and Duplicate issue: The procedure for cancellation and duplicate issue of pay order is same as that of demand draft and the charges are also same. The charges for both the services are Rs.100. Tax: Government of Pakistan has levied 0.3% advance tax on the issue of Pay orders and demand drafts. If the customer submits tax exemption form to the bank, he is not charges tax. But if customer does not submit form, he has to pay 0.3% tax on the amount of pay order or demand draft.

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Internship report on Bank Alfalah

Telegraphic Transfer:
Telegraphic Transfer is bank-to-bank, and branch-to-branch. The bank has settlement with other banks according to which the banks can make the payments to the customers account mentioned by the other bank in the TELEX. In this case proper authentication is must for this purpose. Process: Customer obtain a requisition slip and fills it properly After filling the application from the concerning officer fills the TT form. This Telegram is send to he required bank. After receiving the telegram bank immediately makes the payment to the customer and the vouchers sent to the issuing bank by ordinary mail. Bank debits the account of the customer or receives cash including charges of the bank. TT is made through codes. Bank sent telegrams with codes and in banking language using the words test.

Online Transaction:
For branch-to-branch transfer of funds on the same day, previously TT was used. But now banks have adopted a new system known as Online Transfer. In online transactions cheque of different branches can be paid, for instance if a client has taken Online Transaction facility and presents Multans cheque to Bank Alfalah Multan, he/she can have payment from Karachi. If the cheque has been cleared from Multan Bank Alfalah, a copy of cheque is made and is faxed to appropriate branch; the branch then checks the clients balance, date of cheque and signature of client. If the cheque is given clearance from the respective branch then payment is made to client, the branch is then debited and the branch that has made payment is credited.
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Internship report on Bank Alfalah

Accounts Department:
Accounts department plays a major role in every bank. In Bank Alfalah the burden of the accounts department is largely reduced because of computerization. The use of the computer system increases the efficiency and pace of the banks work. Following activities are carried out in the accounts department: Bunches Budgeting Reports Funds management Activity checking Reconciliation Foreign exchange, old Account Contracts Maintenance of fixed assets and calculation of their depreciation

Bunches:
In account office its daily work to maintain the bunches as below: Cash Debit Bunch o Current Account o Saving Account Cash Credit Bunch o Current Account o Saving Account CLG Debit and CLG Credit Bunch o Current Account and Saving Account Debit o Current Account and Saving Account Credit

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Internship report on Bank Alfalah

Budgeting:
The main task performed by the accounting department is the preparation of the budget. Budget is based on forecasting and their own inspiration for future, whereas forecasting is based on past performance. This is one important task on the basis of which funds are allocated to various branches and also the targets are determined. The targets determined Deposits, Advances, and revenues. Every branch prepares its own budget for the fiscal year and then budgets of all the branches across the country are consolidated at the head office in Karachi. In this way a consolidated budget is also prepared.

Fiscal year of the bank starts from January to December. Accounting department starts preparing the budget from October for the next year. Before the preparation of budget the bank reviews its sources and funds it has and the uses of those sources. The main sources of the bank are the follows: Deposits, Capital, Borrowing from other banks, etc

The main uses of a bank are the follows: Advances, Investment in securities, placement in inter-bank markets,

Other things, which are undertaken into account while formulating the budget, are: Income, Expenses, etc.

The revenue target is fixed keeping in view the past performance. The cost of generating these revenues is also estimated. Then budget of each branch is submitted to head office for modifications and for approval. After the modification and approval the budget for a specific branch is being set by the head office. Monthly budget meeting is held to analyze the monthly performance by all the branch mangers with head office. The actual performance is compared with the estimated and variance is calculated. Variance can be negative as well as positive. If there is a negative variance, this shows managements inefficiency in controlling its expenses or
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Internship report on Bank Alfalah incompetence in achieving the desired revenue targets. Proper adjustments are made in the next months target according to the previous months performance because sometimes the goals, which are set by the head office, are unrealistic and unachievable.

Reports:
In Bank Alfalah many types of reports are being prepared. These are daily, weekly, monthly, semiannual and annual reports. These are generated from the main frame and are used for proper analysis. The following reports are generated daily from the main frame which are being used by the accounts department for the preparation of their own reports:

Statement of affairs:

It includes information about assets, liabilities and their balance. Daily position of deposit and advances are also calculated in this report. Subsidiary Statement:

This is a detailed report, which includes all the information regarding the statement of affairs. Income and Expenditure report:

It includes all the details regarding to both the heads of income and expenditure in detail. Royal Profit Report:

It includes the details of the deposit of royal profit account. Currency wise report (ccy):

It provides the details of all the deposits currency wise.


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Internship report on Bank Alfalah Sub 66 Report:

It contains income, expenditure, general ledger accounts and their balances. Now following are the reports, which are being prepared with the help of the above reports: Daily position of advances and deposits:

This report is being sent to the head office daily in which the detail is given regarding the new accounts of deposits and advances. Statement of affairs:

This report includes assets and liabilities. Two copies of this report are made daily, one is sent to the area office and one to the head office for analysis but the format is different for both of them. Statement of Affairs also prepared at the weekend for the whole week as well as at the end of a month. Monthly Budget Review Report:

This report is made to review the performance of the month by calculating the variance. And then if the variance is in negative, positive actions are taken and reasons will also be mentioned in the report.

Funds Management:
Every bank in Pakistan has an account with State bank of Pakistan and has to maintain 5% of the total deposit in the account with the State bank. Funds management is done only through the main branch. If the bank has so many branches in a single city then only the main branch is responsible for the funds management. Daily a report was prepared and reported to State bank.

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Internship report on Bank Alfalah The important factors that affect the report are as follows: Total Deposit (of all branches in a single city) Opening Balance (closing balance of the previous day) Inward Clearing Outward clearing Cheque issued by State Bank Cheque Deposited

After all the calculations, a result is obtained which signifies the cash in hand of the respective day. If the cash in hand is sufficient to fulfill the needs of the State Bank, well and good otherwise if the cash is not sufficient then the other options are considered.

In case of shortage of funds, the main branch has the following options, which it can adopt. 1. TT from Head Office: 2. Cover from Head Office 3. Funds from Other banks TT from Head Office: One solution of the problem is to contact and inform head office about our respective position and demand for funds. However the most frequent reason, why this practice is not followed is that State bank has allowed only one TT free of cost for all the branches in Pakistan.

Therefore we first have to confirm head office that whether or not it is sending TT to another branch of bank Alfalah. If the head office sends us the TT then it cannot send any other TT to another branch of Bank Alfalah without charges. The charges are also not negligible for

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example the charges of TT for an amount of one hundred million are above 60,000. For this specific reason the TT is not encouraged. Cover from Head Office: The most frequent option used is to inform Head office about the shortage and ask for cover. The head office then maintains extra amount in its account with State bank. The extra amount will be the shortage of main branch reported. The main branch will then pay interest to the head office on a rate of 11.5% per day. The head office is paid on monthly basis. Funds from Other banks: In case of funds shortage another bank is contacted with whom the bank has settlement for instance Emirates bank. If this option is taken the head office is informed

and the head office then pays to the Karachi branch of the respective bank from which funds are taken.

Activity Checking:
Activity checking is the process of the entire banking, which has taken place. A report known as activity report is prepared on daily basis. The report specifies every vouchering, which has taken place. Sorting is made according to the mainframe-generated report. All the vouchers are checked that whether they are properly posted or is there any transaction left to be posted. This checking makes the working of the bank more efficient and avoids any loopholes.

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Reconciliation:
BAL prepares its reconciliation statements with Head Office State Bank of Pakistan Head Office Reconciliation: All the debit and credit entries of the main office account are recorded in the statement. Then it is checked with physical vouchers and if there is any problem, they reconcile it. Head office extract are statements sent by branches to the head office. They check the outstanding entries, if there is any entry posted by branch but not by head office they will send their query to the branch and branch will respond to that query by sending the required document. Head office reconciliation is carried out in the head office; accounts department handles inquiries. State Bank of Pakistan: SBP maintains the account of every scheduled bank including bank Alfalah. The statement of account reconciliation shows the entries that are passed during the month in both banks. Bank Alfalah compares the statement with the ledger card of State bank of Pakistan in which all entries are recorded done with SBP. If any amount debited by SBP and Bank Alfalah does not credit that amount, it is added in the balance of the reconcile statement provided by the SBP to BAL.

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Maintenance of Fixed Assets and Calculation of their Depreciation:


Account department maintains the record of fixed assets. The accounts department calculates the depreciation the assets by using straight-line method. Depreciation is the allocation of cost of the asset over the useful life. Depreciation is accrued on monthly basis and charged at year-end. Department prepares Asset purchase report and Asset sale report after six months.

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CREDITS DEPARTMENT:
The basic function of a bank is to receive deposits (at low rate of return) and to lend money (at a high rate of return). So, the lending operations of a bank constitute a vital part of its business. This department is the source of income and earnings for the bank. Banks funds comprises mainly of money borrowed from numerous customers on various accounts such as saving accounts, current accounts, fixed deposits etc. Whereas the major part of total income of a bank is generated through the utilization of these funds.

The credit department is further divided into two departments, which are as follows: Credit Marketing Credit Administration As this branch recently started its operations, thats why credit facilities are not so advanced. They are just advancing loans to small and medium enterprise.

Processing of Loan:
The banker must be very careful and ensure that his depositors money is advanced to safe hands where risk of loss does not exist. When a customer requests his banker to facilitate him with different credit facilities, the bankers first assess the credibility of customer and the market conditions. The elements of credibility, integrity, repayment, and market conditions help a banker in arriving at a conclusion regarding the safety of advances. Credibility:

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Internship report on Bank Alfalah It is the most important factor in determining the safety of advances, for there is no substitute for integrity, honesty and trustworthiness. A borrowers character can indicate his intention to repay the advance, since his honesty and integrity is of primary importance. If the past record of the borrower shows that his integrity has been questionable then the banker usually tries to avoid such a customer. Repayment: This is the management ability factor, which tells how successful a business has been in the past, and what are the future possibilities are. Before advancing loan a banker must be satisfied with the sources of the repayment of the funds. Capital: The bankers also check the capital of the borrower. This can be kept as a security of a loan. In other words, if the businessman financial Position is sound, only then he can be landed. CIB Report: Bank cannot sanction any loan to a customer, until and unless it gets credit report form CIB (Credit Information Bureau, SBP). Before making any decision about the client, bank needs a CIB report. Therefore, first of all the bankers requests CIB to provide the credit report of the client. This report indicates all the credit facilities outstanding (availed) by the client. Credit Line Proposal (CLP): After being satisfied with the credibility and integrity of the applicant, the processing of loan application starts with the preparation of Credit Line Proposal (CLP). It has the vital and most important task assigned to the credit officers in BAL. In a CLP, every information regarding the client and his business is stipulated as follows:

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Internship report on Bank Alfalah Total existing facilities (limit), their outstanding value and the securities that were provided against these facilities. Total proposed limit of credit and the securities provided against it. The credit officer does the analysis and verification of these securities. Regular Credit Limit: But if the client wants to route a regular business with the bank, then he requests for regular credit limit of credit facilities for a specific period. Following things should be undertaken while preparing a CLP and also being mentioned in the CLP. Customers background, his relationship with the bank (if he is an existing customer), his relationships with other banks. Purpose of facility and terms and conditions regarding the client. Nature of his business and what are the market conditions and opportunities fro the business. Reciprocal business is also stipulated on the proposal, which means expected business that would be routed through the bank for these facilities. Bank calculates his profitability on the basis of this business.

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SWOT ANALYSIS
BAL is one of the fastest growing banks in Pakistan. In the light of these situations we can make an analysis. Strengths: Bank has a belief in customer service Backed by strong Abu Dhabi Consortium Customers give suggestion for the improvement of bank and these suggestions are listened carefully .Environment is friendly. Products are excellent Modernized banks (online banking) Fully computerized, each department has to own PC.

Weaknesses: Although the bank is growing fast but it has some weaknesses which it should remove to make itself further strong. Less Advertisement Slow in introducing new products Gives its staff less benefits They should advance their credit techniques in Bosan Road branch.

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Internship report on Bank Alfalah Opportunities: Extension of International network of the branches Introduction of innovative products Information technology Establishing foreign branches Growing market

Threats: Uncertain economic conditions Action taken by competitors Bank Alfalah has major Business deposits. With change of political environment it may affect the bank.

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Financial analysis
BANK ALFALAH LIMITED INCOME STATEMENT 2009-2010
Particulars 2009 2010

Assets
Cash & balances with treasury bank Balances with other banks Lending to financial institution Investments Advances- net of provision fixed assets Other assets Total assets 35,056,012 22,722,639 14,947,435 99,159,957 188,042,438 14,492,194 14,649,380 389,070,055 3,766,144 20,653,921 324,759,752 7,570,181 179,851 10,006,786 366,936,635 22,133,420 41,197,841 16,179,255 6,497,556 113,425,861 207,152,546 14,204,555 12,826,225 411,483,839 4,521,533 13,700,124 354,015,311 7,567,192 115,919 9,258,216 389,178,295 22,305,544

Liabilities
Bills payable Borrowing Deposits & other account Sub ordinate loans Deferred tax liabilities Other liabilities Total liabilities Net Assets Presented by Share capital Reserve fund, other reserves Unappropriated profit Surplus on revaluation of fixed assets

13,491,563 3,587,969 2,690,728 19,770,260 2,363,160 22,133,420

13,491,563 3819,133 2,415,860 19,726,556 2,578,988 22,305,544

Total Liabilities & equity


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389,070,055

411,483,839
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BANK ALFALAH LIMITED INCOME STATEMENT 2009-2010


Particulars Mark up/interest income Minus: Mark up/interest expense Net interest income Minus: Provisions Net mark up income after provision Plus: non markup interest income Gross income Minus: operating expense Profit before taxation Minus: income tax Profit after taxation 2009 35,561,312 24,654,180 10,907,132 4,071,527 6,835,605 5,182,253 12,017,858 11,001,542 1,016,316 119,281 897,035 2010 37,530,256 23,855,448 13,674,808 4,260,383 9,414,425 4,708,161 14,122,586 12,753,841 1,368,745 400,293 968,452

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Vertical analysis of balance sheet


BANK ALFALAH LIMITED INCOME STATEMENT 2009-2010
Particulars 2009 In % 9.01 5.84 3.84 25.48 48.33 3.72 3.76 2010 In % 10.01 3.93 1.57 27.56 50.34 3.45 3.11

Assets
Cash & balances with treasury bank Balances with other banks Lending to financial institution Investments Advances- net of provision fixed assets Other assets Total assets

100
0.96 5.30 83.47 1.94 0.046 2.571 94.31

100
1.09 3.32 86.03 1.83 0.02 2.24 94.53

Liabilities
Bills payable Borrowing Deposits & other account Sub ordinate loans Deferred tax liabilities Other liabilities Total liabilities Presented by Share capital Reserve fund, other reserves Unappropriated profit Total Equity Surplus on revaluation of fixed assets Total equity

3.46 0.92 0.69 5.07 0.60 5.67

3.27 0.92 0.58 4.77 0.62 5.39

Total Liabilities&equity

100

100

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COMMENTS ASSETS The advances and investments constitute the major portion of the total assets. The investments have been increased and are at 27.56% of total assete in 2010. It is because of the surplus of revaluation, which has resulted due to the increase in the value of government securities and shares of public limited companies (where BAL had invested). The portion of advances has increased by the year. This is a healthy sign and shows that the business is expanding. LIABILITIES On the liability side, deposits and borrowings are the major accounts. The percentage of deposits is increasing whereas percentage of borrowings decreasing. Despite of the considerable increase of % (aprox.) in deposits, the decrease in % of deposits to total liabilities is due to the increase in total liabilities resulted due to the increase in deposits from other banks. Since, the bank is on its way to expansion and for the purpose of expansion it needs to have borrowing. Therefore increase in total liabilities is not that much alarming.

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Vertical analysis of income statements


BANK ALFALAH LIMITED INCOME STATEMENT 2009-2010
Particulars Mark up/interest income Minus: Mark up/interest expense Net interest income Minus: Provisions Net mark up income after provision Plus: non markup interest income Gross income Minus: operating expense Profit before taxation Minus: income tax Profit after taxation 2009 100.00 69.32 30.68 11.44 19.24 14.57 33.81 30.93 2.88 0.33 2.55 2010 100.00 63.57 36.43 11.35 25.08 12.54 37.62 33.98 3.64 1.06 2.58

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Horizontal analysis
BANK ALFALAH LIMITED BALANCE SHEET 2009-2010
Particulars 2010 2009

Assets
Cash & balances with treasury bank Balances with other banks Lending to financial institution Investments Advances- net of provision fixed assets Other assets Total assets 117.52 73.13 43.46 114.38 110.16 98.01 87.55 105.76 112.88 66.33 109.00 99.96 64.45 92.51 106.06 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100

Liabilities
Bills payable Borrowing Deposits & other account Sub ordinate loans Deferred tax liabilities Other liabilities Total liabilities Presented by Share capital Reserve fund, other reserves Unappropriated profit Total Equity Surplus on revaluation of fixed assets

100 106.44 89.78 99.77 109.13

100 100 100 100 100

Total Liabilities&equity

105.76

100

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Internship report on Bank Alfalah

Horizontal analysis
BANK ALFALAH LIMITED INCOME STATEMENT 2009-2010

Particulars Mark up/interest income Minus: Mark up/interest expense Net interest income Minus: Provisions Net mark up income after provision Plus: non markup interest income Gross income Minus: operating expense Profit before taxation Minus: income tax Profit after taxation

2010 105.56 103.34 125.37 104.63 137.72 90.85 117.51 115.92 134.67 335.58 107.96

2009 100 100 100 100 100 100 100 100 100 100 100

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Internship report on Bank Alfalah

PROFITABILITY RATIOS:
1. NET PROFIT MARGIN
PROFIT AFTER TAX / TOTAL REVENUE 2009 = [897035 /16089385] * 100 = 5.57%

2010 = [968452 / 18382969] * 100 = 5.26%

COMMENTS The net profit margin of the bank shows an decreasing trend. It came down to 5.26 in 2010,even despite the high profitability before taxes. It was because of the greater amount of tax paid during the year 2010. Moreover, the denominator i.e. the total revenues have been increasing continuously which signifies the expanding business operations but a slight difference from previous year due to great tax expense.

2. RETURN ON EQUITY NET INCOME / EQUITY RATIO 2009 = [897035 /19770260] * 100 = 4.53%

2010 = [968452/ 19726556] * 100 = 4.90%

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COMMENTS This ratio i.e. return on equity shows the return the owners of the business enjoy after paying all the financial expenses and other liabilities of the business. The return on equity increased from 4.5% to 4.90%, which is a reasonable increase and has resulted due to the growing profits of the banks. In 2010, pre-tax profit has increased almost by a good amount of previous years profit. So, a consistent increase in profit shows a positive and a very healthy and pleasing news for the owners.

RETURN ON INVESTMENT:
NET INCOME / TOTAL ASSETS 2009= [897035/38907055]*100 =0.24% 2010 = [968452 / 411483839] * 100 = 0.24% Profit on investment follows the same trend as that of previous year although the assets have been increased this year but a huge amount of expenses and liabilities this ratio doesnt show a considerable increase, either they should employ more assets to increase this ratio or they should have a reasonable control on liabilities.

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NET INCOME / RISK ASSETS 2009 = [897035 / 214250634] * 100 = 0.41%

2010 = [968452 / 249639748] * 100 = 0.39%

ADMINISTRATIVE EXPENSES TO DEPOSITS [ADMIN. EXPENSES / DEPOSITS]* 100 2009 = [12,578,080/ 354,015,311] * 100 = 3.55% 2010 = [10,923,507/324,759,752] * 100 = 3.36% COMMENTS This ratio is very helpful in determining the relationship between the deposits and the costs associated with maintaining them. The benchmarked figure is 2% to 3% in the banking sector. The administrative expenses should exceed the level of 3%, for deposits. The ratio signifies the managements efficiency and shrewdness of maintaining deposits. Even decreasing trend, even with the increase in deposits, signifies managements commitment and professional outlook.

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LIQUIDITY RATIOS

1. FINANCING / DEPOSITS + BORROWED FUNDS 2009 = [188,042,438/ 358,715,435] * 100 = 57.77%

2010 = [207,152,546 / 345,413,673] * 100 = 54.44%

COMMENTS Decreasing trend in the ratio during this year indicates that the bank is utilizing its funds improperly. So it is not a healthy sign. Decrease in year 2010, due to the increase in advances. While on the other hand the borrowed funds have been decreased as compared to last year, or bank should make emphasis on increasing its deposits, or should lessen its advances.

DUE TO BANKS / TOTAL DEPOSITS 2009 = [20,653,921/324,759,752] * 100 = 18.79%

2010 = [13,700,124 /354,015,311] * 100 = 22.65%

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COMMENTS This ratio signifies the financial mix of bank. In ideal situations, there should be decreasing trend or consistency in this ratio. In case of BAL, although there is significant increase in deposits but borrowing is decreasing considerably. So to compensate this bank should either increase their deposits or to make a proportion borrowing should also be increased. 4. DUE FROM BANKS / TOTAL ASSETS 2009 = [22,722,639 /389,070,055] * 100 = 5.84%

2010 = [16,179,255 /411,483,839] * 100 = 3.93%

COMMENTS: This ratio signifies the percentage of receivables in the total assets. In normal practices, bank usually keeps some of its funds in other banks, as it is safe source of financing. However, this percentage should not be too high. High percentage would mean that bank is not financing in open market. But, again it depends upon the market conditions. In case of BAL, this ratio is quite normal. A reasonable decrease in this ratio is being observed which is very significant.

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DUE FROM BANKS / DUE TO BANKS 2009 = [22,722,639 / 20,653,921] = 1.1:1

2010 = [16179255 / 13700124] = 1.18:1

COMMENTS In ideal situations, this ratio should be 1:1 or more. Whereas, in this case the ratio is according to the standards. Receivables are greater than payables to banks, which is due to decrease in bank borrowing. However, there is an increasing trend in this ratio, which shows better management approach towards liquidity position.

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CAPATALIZATION RATIO:
1. CAP. FUNDS / TOTAL ASSETS 2009 = [22133420 /389070055] * 100 = 5.64%

2010 = [22305544 /411483389] * 100 = 5.42%

COMMENTS The ratio signifies the banks contribution of equity in total assets. Strong equity base indicates the low risk factor. In usual practice of banks, they emphasize more on deposits than injecting new equity in the business. In case of Bank Alfalah, the percentage of shareholders equity to total assets is almost consistent. However, the increase or decrease in capital funds is due to surplus or deficit on revaluation. In year 2010 the equity of bank has been decreased up to a negligible figure but bank should increase to a reasonable extent.

2.

CAP. FUNDS / RISK ASSETS

2009 = [22133420 / 188042438] * 100 = 11.77%

2010 = [22305544 / 207152546] * 100 = 10.76%

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3.CAP. FUNDS / TOTAL DEPOSITS 2009 = [22,133,420/324,759,759] * 100 = 6.8%

2010 = [22,305,544/354,015,311] * 100 = 6.3%

COMMENTS
These are very crucial ratio and have great importance especially for the creditors. These show the long-term solvency of the organization. In all the capitalization ratios, one thing is common during the two years, that with the expansion in branch network, and increase in business operations in the form of advances and deposits, banks capital base has been consistent. It is because, that the bank is on the way of expanding its business and for this purpose it is relying much on its deposits. But I think that the bank should also increase its level of reserves to sustain the trust of creditors.

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COVERAGE RATIO
EBIT/INTEREST EXPENSE 2009= [12017858/24654180] =0.48 2010= [14122586/23855448] =0.59

This ratio tells how easily company can pay its outstanding debt or interest. 1f this ratio is below 1, it is questionable it means that company is not generating sufficient revenues to satisfy its expenses, in the case of BAL the ratio is below 1, but consistently increasing as they are investing more in securities and subsidiaries they are not efficiently covering their interest expenses.

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LEVERAGE RATIOS:
DEBT TO EQUITY RATIO TOTAL DEBT/SHARE HOLDERS EQUITY 2009= [389,178,295/19,726,556] =19.72 2010= [366,936,635/19,770,260] =18.56 COMMENTS: This ratio tells that how much creditors are providing against shareholders equity, lower trend in this ratio is considered reasonable, as this ratio is decreasing in current year, but this is a very slight change, the lower this ratio higher the level of financing is provided by shareholders. But what I conclude is that bank should its equity capital instead of increasing liabilities DEBT TO ASSETS RATIO TOTAL DEBT/TOTAL ASSETS 2009= [389178295/411483832] =0.94 2010= [366936635/389070055] = 0.94 COMMENTS:

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Internship report on Bank Alfalah This ratio highlights the importance of debt financing to firm by showing the percentage of firms assets that is supported by debt financing. 94% debt to equity ratio tells that 94 percent of bankss assets are financed with debt financing, while the remaining 6% comes from equity. The ratio is same for both of the year, but bank should raise its fund in order to lessen this ratio.

MARETABILITY RATIO
PRICE PER EARNING P/E MARKET PRICE OF SHARE/EARNING PER SHARE 2009=[10.00/0.71] =13.88 2010= [10.00/.72] =14.04

COMMENTS: This ratio indicates the confidence that investors have in the firms future performance, higher this ratio the greater the investor confidence. In the case of BAL there is significant increase in this ratio current year, so it is s good trend

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RECOMMENDATIONS:
After doing internship of 6 weeks in Bank Alfalah Limited, I have analyzed some problem in the Bank. Following are my recommendations: Misdistribution of work: In Bank Alfalah, there is misdistribution of work; some people are over burdened with the work. So I suggest that there should be fair distribution of work in all the departments. Participative management: Participative management concept should be adopted, where ideas from the employees should also be taken, not only for developing products but also on service, efficiency, employee morale etc. in order to improve them. Fax Machines and Photocopying Machine: The number of Fax machines and photocopying machine in the bank are also less than they are needed. For photocopying one has to go downstairs. So there should be more machines and also their placement should be at the right place. Training programs BAL should introduce more training programs for their employees. It will help less educated and less experienced staff to grow and be a valuable part of the bank.

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CONCLUSION
Bank Alfalah Limited is the one the best bank in international banking sector. Its growth rate is highest among all local banks. Bank Alfalah Limited has potential to become top ranking bank in Pakistan banking industry. At present there is no such organization in the world that is free from problem and challenges. Every concern has to strive and struggle a lot to be more profitable and to get more competitive edge. My basic purpose of this internship is to learn about the working of bank. During my internship I got knowledge about general banking, foreign exchange and advances. Staff member of Bank Alfalah Limited is cooperative with me and really help me to achieve my objective.

The management of BAL is taking strategic steps to enable the bank to emerge as a strong and progressive institution. It is continuing to make efforts to refine its products and operations to make them more compatible. New deposit schemes have been introduced and an action plan to maintain revenue growth in future. As the business and economic conditions remain uncertain, BAL continues to develop the new products like it has been doing in past.

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Bibliography
www.bankalfalah.com www.bop.com.pk www.sbp.org.pk www.business-standard.com www.sheshunoff.com Staff of the Bank Alfalah Limited. Annual report of Bank Alfalah Limited.

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