1

2
ACKNOWLEDGEMENT
All thanks to Allah Almighty, the benevolent and compassonate, !ho blessed me !th
the po!e" # capabltes and "emaned contented on all nt"caces $o%nd d%"n& the
s%ccess$%l completon o$ m' task(
)*m &"ate$%l to m' family membe"s !hose hea"t $elt p"a'e"s and app"ecaton have
al!a's been an asset and a &"eat so%"ce o$ nsp"aton o$ me( )t co%ld be complcated $o"
me to accomplsh to task !tho%t the" shado! o$ love(
)*m also obl&ed to "espected Cha"man Mr. Shoukat Malik !ho $%"nshed me ths
p"ol$c oppo"t%nt' to aval a p"actcal e+pe"ence, !hch s applcaton o$ theo"' n
,)nte"nshp- and also to "eve"ed teache" Mr. Sadiq Shahid !ho p"ovded hs $%ll s%ppo"t
and &%dance $o" ths ./0 !eek nte"nshp p"o&"am(
) also e+tend m' thanks to Mr. Mirza Aftab Baig alon& !th all the 1"anch 2ta$$ $o" the"
enco%"a&n& "esponse and &%dance to make m' nte"nshp as a "eal lea"nn& e+pe"ence(
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Table of Contents
4
5
Page No.
Ee!uti"e Summary############.............
$
%
&ntrodu!tion##################..
$
'
o Central Ba!kground &nformation####.. $
'
o Com(any Ba!kground#########. $
'
o )ision * Mission###########.. $
+
o ,rganizational -ierar!hy .Chart/####. $
0
o Board of 1ire!tors##########... $
2
1e(artments 3orked 1uring &nternshi(######..
4
$
o A!!ount o(ening###########... 4
$
o 5emittan!es#############.. 4
6
o Credit Marketing ########### 4
7
o Credit Administration de(artment .CA1/# 8
+
o Trade 9inan!e############.. 6
%
A((li!ation of Class 5oom :earning########.
%
4
:earning as an &nternee############.......
%
8
Marketing Analysis#####...#########...
%
6
-uman 5esour!e Assessment###########..
%
'
S3,T Analysis#################
%
0
PEST Analysis#################..
'
4
9inan!ial Analysis################
'
%
o -orizontal and )erti!al Analysis####... '
%
o 5atio Analysis############... 7
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5e!ommendations################.
+
$
Con!lusion###################.
+
Ee!uti"e Summary
6akstan a$te" &ettn& ts ndependence, dd not nhe"t a st"on& bankn& nd%st"' and
snce then sa! a n%mbe" o$ events n the nd%st"', lke the natonal7aton o$ banks n the
189:*s( ;o!eve", the bankn& nd%st"' o$ 6akstan has been &"o!n ove" the past $e!
'ea"s, manl' beca%se o$ the consstent polces mplemented b' the Gove"nment o$
6akstan, ncl%dn& the p"vat7aton o$ banks n 6akstan( Also the 2tate 1ank o$
6akstan*s, moneta"' polc' has been ve"' $"endl' to!a"d the bankn& nd%st"'( 1%t n
2::0 beca%se o$ !o"ld economc c"ss, the econom' o$ co%nt"' !as n c"ss so the all
b%snesses !ent do!n so as the banks <b%sness "es%lt n lo!e" pe"$o"mance and
p"o$blt'( The"e a"e a n%mbe" o$ d$$e"ent banks establshed n 6akstan, ncl%dn& local
nco"po"ated comme"cal banks, $o"e&n nco"po"ated comme"cal banks, development
$nancal nstt%tons, nvestment banks, dsco%nt # &%a"antee ho%ses, ho%sn& $nance
companes, vent%"e captal companes, mc"o $nance banks and )slamc banks(
1ank Al$alah !as nco"po"ated n 1889 and !as p"vat7ed b' the Gove"nment o$
6akstan( The Ab% Dhab G"o%p bo%&ht the ma=o"t' sha"es o$ the bank and so &ot the
"&hts to cont"ol the bank*s ope"atons( 2nce the p"vat7aton o$ the bank, 1ank Al$alah
has mplement d$$e"ent polces to make t one o$ the best banks o$ 6akstan, !hch
ncl%ded nt"od%cn& ne! p"od%cts and se"vces and nc"ease ts ope"atons b' openn&
ne! b"anches n 6akstan(
Toda' 1ank Al$alah s ope"atn& n mo"e than 85 ctes o$ 6akstan and ope"atn& ts
$o"e&n b"anches n 1an&ladesh, A$&hanstan and 1ah"an( The total emplo'ees o$ 1ank
Al$alah n 2::0 !e"e 9,504(The"e a"e onl' 2> nc"ease n emplo'ees ths 'ea" as
compa"ed to p"evo%s 'ea" beca%se o$ the condtons o$ 6akstan*s econom'( The
$nancal statstcs o$ 1ank Al$alah a"e ?%te &ood as the" h%man "eso%"ce( The p"o$t
a$te" ta+aton $o" 1ank Al$alah n 2::0 amo%nted to @s(1, 3:1 mllon and ts total assets
$o" 2::0 amo%nted to @s(340, 88: mllon( The book val%e and ea"nn& pe" sha"e o$ the
bank have dec"eased ths 'ea"( The ove" all pe"$o"mance o$ 1AAL s dec"eased n 2::0(
1ank Al$alah p"omotes ts p"od%cts and se"vces th"o%&h p"nt and elect"onc meda(
1ank Al$alah also p"omotes tsel$ b' sponso"n& d$$e"ent events(
) dd m' s+ !eeks nte"nshp at 1ank Al$alah, Abdal "oad b"anch and !o"ked n C"edt
admnst"aton depa"tment, T"ade Anance Depa"tment, C"edt ma"ketn& depa"tment,
Acco%nt openn& depa"tment and "emttances depa"tment( The ove" all e+pe"ence at the
.
bank !as &ood( A lot o$ thn&s have been lea"nt, some o$ !hch "elate to class"oom
lea"nn&( Al$alah s e+pandn& ts net!o"k all ove" the 6akstan 'et the"e a"e man'
%ntapped a"eas( The competto"s o$ 1AAL a"e also n a&&"essve poston( The Economc
and 6oltcal condtons o$ the co%nt"' a"e ve"' dst%"bn&B the h&h n$laton and la! and
o"de" st%aton a$$ects eve"' b%sness ncl%dn& Al$alah( 2ocal and technolo&cal ss%es
a"e o$ seconda"' mpo"tance b%t the' also can not be ne&lected( 1AAL s $oc%sn&
postvel' "e&a"dn& technolo&cal ss%es b%t t sho%ld also keep ts e'e on the socal
c%lt%"al $acto"s also(
2ome o$ the "ecommendatons ncl%de p"omoton on the bass o$ me"t, loans to st%dents
and schola"shp p"o&"ams $o" ts emplo'ees( Lastl' 1ank Al$alah has seen a "apd &"o!th
n ts actvtes b' nt"od%cn& a "an&e o$ p"od%cts and se"vces and sho!n& ts p"esence
n the co%nt"' b' openn& ne! b"anches and n $%t%"e sho%ld keep ths moment%m and
al!a's st"ve to become the best(
&ntrodu!tion
Central Background Information
1ankn& s one o$ the most senstve b%snesses all ove" the !o"ld( 1anks pla' an
mpo"tant "ole n the econom' and a"e consde"ed as the backbone o$ an econom' n
eve"' co%nt"' and 6akstan s no e+empton( 1anks a"e c%stodan to the assets o$ the
&ene"al masses( The bankn& secto" pla's a s&n$cant "ole n a contempo"a"' !o"ld o$
mone' and econom'( )t n$l%ences and $acltates man' d$$e"ent b%t nte&"ated economc
actvtes lke "eso%"ces mobl7aton, pove"t' elmnaton, p"od%cton and dst"b%ton o$
p%blc $nance(
6akstan has a !ell/developed bankn& s'stem, !hch conssts o$ a !de va"et' o$
nstt%tons "an&n& $"om a cent"al bank to comme"cal banks and to specal7ed a&ences
to cate" $o" specal "e?%"ements o$ spec$c secto"s( The co%nt"' sta"ted !tho%t an'
!o"th!hle bankn& net!o"k n 1849 b%t !tnessed phenomenal &"o!th n decades to
come( 1' 189:, t had ac?%"ed a $lo%"shn& bankn& secto"( Natonal7aton o$ banks n
the seventes !as a ma=o" %pset to domestc bankn& nd%st"' o$ the co%nt"', !hch
chan&ed the !hole comple+on o$ the bankn& nd%st"'( Wth ""atonal decson at the
top, all the comme"cal banks !e"e made s%bse"vent to the poltcal leade"shp and the
b%"ea%c"ac'( The comme"cal banks th%s lost the" assets mana&ement e?%lb"%m,
ntatve and &"o!th moment%m( The' ceased to be a b%sness conce"n and became b&
b%"ea%c"aces( The e"a o$ nnetes !as the clma+ o$ p"vat7aton, de"e&%laton and
"est"%ct%"n& n the domestc bankn& nd%st"' and $nancal nstt%tons( The M%slm
Comme"cal 1ank !as the $"st bank to p"vat7e( Aollo!ed b' Alled 1ank lmted,
Cnted 1ank Lmted and ;abb 1ank Lmted have all been p"vat7ed(
9
Toda', the bankn& secto" s p"ovdn& $nancal sol%tons to the masses and s &"o!n&
and becomn& a sold pa"tne" n the development o$ the 6akstan econom', ths &"o!th
potental has seen d$$e"ent ac?%stons n the bankn& secto", !th the 2tanda"d
Cha"te"ed and Cnon 1ank ben& the most p"omnent(
Company Background
1ank Al$alah has &one th"o%&h d$$e"ent phases ove" the 'ea"s( )ts name and been
chan&ed n the $ollo!n& se?%ence(
1ank o$ C"edt and Comme"ce and )nte"natonal D1CC)EF1892
;abb C"edt and E+chan&e 1ankF1882
1ank Al$alahF1889
1ank o$ C"edt # Comme"ce )nte"natonal D1CC)E !as a 6akstan based bank,
establshed b' M"( A&ha ;assan Abd $"om C1L, n assocaton !th C(A(E and E%"ope(
1CC) has ts b"anches n 94 d$$e"ent co%nt"es o$ the !o"ld( )t had ts 3 b"anches n
6akstan, Ka"ach, Laho"e and @a!alpnd( The Laho"e b"anch !as opened on 15th
Decembe"1890( Ths b"anch !as opened at that tme !hen some othe" nte"natonal
banks lke Ct 1ank, 1ank o$ Ame"ca, and Ame"can E+p"ess etc( !e"e al"ead'
!o"kn&( 1%t !thn a $e! 'ea"s ths b"anch c"ossed mostl' all the othe" banks n case o$
deposts, advances, mpo"ts and e+po"ts dealn&s, &%a"antees, t"avele"<s che?%e sales etc(
)n 1881, the 1CC) !as banned, !hen t !as acc%sed b' E%"opean co%nt"es that the bank
!as nvolved n some lle&al ope"atons !th G%l$ co%nt"es( The ma=o" "eason behnd
E%"opean acc%saton !as that 1CC) !as o$ )slamc mode( The"e$o"e, the bank !as closed
d%e to nte"natonal p"ess%"e(
)n G%l' 1881, the b"anches o$ 1CC) n 6akstan at that tme !e"e taken ove" b' The
Mnst"' o$ Anance and 216( All th"ee b"anches !e"e &ven %nde" ;abb 1ank Lmted
a$te" val%aton o$ ts assets $o" 15 mllon dolla"s, !hch !e"e named as ;abb C"edt and
E+chan&e 1ank D;CE1E and these !e"e !o"kn& as s%bsda"' o$ ;abb 1ank Lmted(
Aollo!n& the p"vat7aton n 1889, ;abb c"edt and E+chan&e 1ank ass%med the ne!
dentt' o$ 1ank Al$alah on G%ne 21st, 1889 as a p%blc lmted compan' %nde" the
Companes O"dnance 1804( )ts bankn& ope"atons commenced $"om Novembe" 1st,
1889( The bank s en&a&ed n comme"cal bankn& and "elated se"vces as de$ned n the
1ankn& companes o"dnance, 18.2( The bank s c%""entl' ope"atn& th"o%&h 202
b"anches( Ths ncl%des 40 )slamc bankn& b"anches and 9 $o"e&n b"anches n
1an&ladesh, t!o n A$&hanstan and one o$$sho"e bankn& %nt n 1ah"an !th the
"e&ste"ed o$$ce at 1(A(1%ldn&, )()(Ch%nd"&a", Ka"ach( The bank s lsted on the
Ka"ach and Laho"e 2tock E+chan&e !th a tcke" name o$ ,1AAL-(
C"edt 5ating
6AC@A, a p"eme" "atn& a&enc' o$ the co%nt"', has "ated the bank
0
Ao" lon& te"m H AA Ddo%ble AE
Ao" sho"t te"m A1I DA one pl%sE
These "atn&s denote a ve"' lo! e+pectaton o$ c"edt "sk, st"on& capact' $o" tmel'
pa'ment o$ $nancal commtments n the lon& te"m and b' h&hest capact' $o" tmel'
"epa'ment n the sho"t te"m, "espectvel'( A%"the", the %nsec%"ed s%bo"dnated debt DTe"m
Anance Ce"t$catesE o$ the bank has been a!a"ded a c"edt "atn& o$ AA/ Ddo%ble a
mn%sE(
1ank Al$alah has e+panded ts b"anch net!o"k and depost base, alon& !th makn&
p"o$table advances and nc"easn& the "an&e o$ p"od%cts and se"vces( 1ank Al$alah s the
5th la"&est bank o$ 6akstan n te"ms o$ ts assets that a"e .> o$ the total bankn& secto"
assets( The bankn& secto" has e+panded "apdl' n 6akstan alon& !th the $ast paced
economc &"o!th( The nc"eased competton n the bankn& secto" has enco%"a&ed the
1anks to come %p !th se"vces that co%ld sats$' the needs o$ a la"&e cons%me" base(
The "es%lt has been nc"eased p"o$tablt' o$ all banks(
2t"en&thened !th the bankn& o$ the Ab% Dhab G"o%p and d"ven b' the st"ate&c
&oals set o%t b' ts boa"d o$ mana&ement, the 1ank has nvested n
"evol%tona"' technolo&' to have an e+tensve "an&e o$ p"od%cts and se"vces( Ths
$acltates ts commtment to c%lt%"e o$ nnovaton and seeks o%t s'ne"&es !th clents
and se"vce p"ovde"s to ens%"e %nnte""%pted se"vces to ts c%stome"s( )t pe"ceves the
"e?%"ements o$ ts c%stome"s and matches them !th ?%alt' p"od%cts and se"vce
sol%tons( D%"n& the past t!elve 'ea"s, t has eme"&ed as one o$ the $o"emost $nancal
nstt%ton n the "e&on endeavo"n& to meet the needs o$ tomo""o! toda'(
The bank also ente"ed nto othe" dmensons o$ $nancal se"vces Jb"oke"a&e, asset
mana&ement, and ns%"ance J th"o%&h ts s%bsda"es, !hch a"e n the" development
phase and !o%ld "e?%"e sometme be$o"e eme"&n& as mate"al cont"b%to"s to 1AL<s
"even%e st"eam(
Vision & Mission
)ision
To be the p"eme" o"&an7aton ope"atn& locall' # nte"natonalt' that p"ovdes the
complete "an&e o$ $nancal se"vces to all se&ments %nde" one "oo$(
Mission
To develop # delve" the most nnovatve p"od%cts, mana&e c%stome" e+pe"ence, delve"
?%alt' se"vces that cont"b%tes to b"and st"en&th, establshes a compettve advanta&e
and enhances p"o$tablt', th%s p"ovdn& val%e to the stakeholde"s o$ the bank(
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Organizational Hierarchy:
1:
)t*s a &ene"al he"a"ch' o$ bank !hch s sho!n& abo%t the man a%tho"tes o$ 1ank
Al$alah Lmted !ho a"e cont"olln& ts mana&ement n 6akstan( 1ank*s mana&ement s
dvded nto d$$e"ent &"o%ps, "e&ons and a"eas( Co/cha"man s p"ovdn& s%pe"vson to
&"o%p heads that a"e "esponsble $o" cont"olln& the a$$a"s o$ d$$e"ent &"o%ps( A$te"
&"o%p heads n the he"a"ch', the"e a"e "e&onal, h%b and a"ea mana&e"s !ho a"e
mana&n& and &%dn& the !o"kn& o$ d$$e"ent b"anches o$ bank(
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Chief Ee!uti"e ,ffi!er
Co;Chairman Central Management Committee
<rou( -eads
5egional Managers
Area Managers
-ub Managers
Bran!h Managers
Board of Directors
The boa"d o$ d"ecto"s has the a%tho"t' n &%dn& 1ank a$$a"s and n makn& &ene"al
polces( 2ome d"ecto"s a"e the pe"sonnel o$ the 1ank Al$alah Lmted $ollo!s(
H.E. Sheikh Hamdan Bin Mubarak Al
Nahayan
Cha"man
Mr. Abdulla Nasser Hawalileel Al-
Mansoori
D"ecto"
Mr. Abdull Khalil Al Mutawa D"ecto"
Mr.Khalid Mana Saeed Al Otaiba D"ecto"
Mr. Ikram Ul-Maeed Seh!al D"ecto"
Mr. Nadeem I"bal Sheikh D"ecto"
Mr. Sirauddin A#i# D"ecto" # CEO
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1e(artments 3orked 1uring &nternshi(
) dd m' nte"nshp at 1ank Al$alah Abdal @oad, $o" a total d%"aton o$ s+ !eeks and the
depa"tments that ) !o"ked d%"n& ths tme a"e as $ollo!sK
Acco%nt openn&
@emttances
C"edt Ma"ketn&
C"edt Admnst"aton depa"tment DCADE
T"ade Anance
A!!ounts ,(ening 1e(artment
Acco%nts openn& depa"tment s one o$ the depa"tments that come %nde" the "etalL&ene"al
bankn& $acltes p"ovded b' 1ank Al$alah Abdal "oad( 2ome o$ the ma=o" depost
acco%nts opened b' 1ank Al$alah Abdal "oad a"e as $ollo!sK
Maor Deposit !ccount "roducts
Current A!!ount
C%""ent Acco%nts a"e non nte"est bea"n& acco%nts that have a mnm%m acco%nt
openn& "e?%"ement o$ @s( 1:,:::( No 7akat s ded%cted on the acco%nts balance(
A%"the"mo"e all c%""ent acco%nt holde"s "eceve a ;lal debt ca"d and the"e a"e no
"est"cton on the n%mbe" o$ !thd"a!s o" deposts made to and $"om the acco%nt(
Profit* :oss Sa"ing A!!ount
6"o$t# Loss savn& acco%nts can be opened !th a mnm%m balance "e?%"ement o$ @s(
5,::: and p"o$t s c"edted on a hal$ 'ea"l' bass( The"e a"e no "est"ctons on the n%mbe"
o$ deposts and !thd"a!al made to and $"om the acco%nt and all acco%nt holde"s "eceve
a ;lal debt ca"d as !ell( 6"o$t and loss savn& acco%nt cannot be opened b' a b%sness
co"po"aton, ho!eve" can be =ontl' opened b' ndvd%als( 6"o$ts a"e pad at 2> on all
acco%nt balances(
Basi! Banking A!!ount .BBA/
1asc 1ankn& Acco%nt !as nt"od%ced b' banks on an o"de" b' the 2tate 1ank o$
6akstan and s c%""ent n nat%"e( The"e s no mnm%m balance "e?%"ement $o" 11A,
ho!eve" ntal depost m%st be @s 1:::( Ma+m%m t!o !thd"a!als and deposts a"e
allo!ed b' che?%e, !hle the"e s no "est"cton on ATM !thd"a!als(
13
5oyal Profit A!!ount
@o'al p"o$t acco%nts a"e opened !th a mnm%m balance "e?%"ement o$ @s 5:,:::( The
basc am o$ ths acco%nt s that the h&he" the balance the h&he" the "et%"n, as p"o$t s
c"edted on a monthl' bass( The p"o$t pad to acco%nt holde"s s as $ollo!sK
6"o$ts pad on @o'al 6"o$t Acco%nt
Amo%nt 6"o$t pa(
A"om @s(5:,::: to 888,888 2(5:>
A"om @s(1,:::,::: to 4,888,888 3(5:>
@s(5,:::,::: and above Ne&otable
=ifayat A!!ount
K$a'at acco%nt s anothe" savn& acco%nt p"od%ct that can be opened !th a mnm%m
balance "e?%"ement o$ @s 1:,:::, !th a ma+m%m lmt o$ @s 1 mllon( 6"o$t s
calc%lated on a monthl' bass, !hle t s c"edted on ?%a"te"l' bass( 1ank Al$alah pa's
9> pa nte"est on K$a'at Acco%nt(
Mahana Amdan A!!ount
Mahana Amdan acco%nt s Te"m Depost @ecept DTD@E $o" th"ee 'ea"s that can be
opened !th a mnm%m balance "e?%"ement o$ @s 1::,:::, !th a ma+m%m lmt o$ @s
15 mllon( 6"o$ts a"e pad at 1:> pa, c"edted on a monthl' bass( Othe" $eat%"es o$ ths
acco%nt ncl%de $"ee pe"sonal accdent ns%"ance and a%tomatc "ene!al $o" anothe" 3
'ea"s, a$te" the e+p"' o$ o"&nal pe"od(
Alfalah Edu!ation
Al$alah ed%caton s a one 'ea" TD@ that can be p%"chased b' people havn& school
&on& chld"en*s( A pe"son can p%"chase a %nt $o" @s 1::(:::, !th a ma+m%m o$ 3
'ea"s( Ths TD@ pa's 9>, pad at mat%"t' and &ves an addtonal advanta&e o$ &vn&
monthl' school $ee o$ the chld"en*s $ the b"ead!nne" o$ the $aml' des(
Basic #e$uirements for !ccount Opening
The basc "e?%"ements to open an acco%nt $o" ndvd%alsLsel$ emplo'ed a"e as $ollo!sK
CN)C
2o%"ce o$ ncome Dsala"' slp etcE
NTN ce"t$cate DoptonalE
Compan' lette"head o" a%tho"7aton Das "e?%"edE
14
The basc "e?%"ement to open an acco%nt $o" a pa"tne"shpK
6a"tne"shp Deed
6a"tne"s CN)C
Compan' Lette"head
NTN ce"t$cate DoptonalE
The basc "e?%"ement to open an acco%nt $o" companesK
Memo"and%m o$ Assocaton
A"tcle o$ Assocaton
D"ecto"s CN)C
Compan' Lette"head
NTN ce"t$cate DoptonalE
Internal Codes for Bank !lfalah !ccounts
2ome o$ the ma=o" acco%nt opened at 1ank Al$alah Abdal "oad and the" nte"nal codes
a"e as $ollo!sK
)nte"nal Codes $o" 2ome Acco%nts
Acco%nt T'pe Code
C%""ent Acco%nt :1:MMMMM
6"o$t# Loss Acco%nt :2:MMMMM
11A Acco%nt :108MMMM
@o'al 6"o$ts :28MMMMM
C%""ent Acco%nt C2D :10MMMMM

Maor %ork Done &y !ccount Opening
Department
Sto( Payment
15
)$ a c%stome" looses the" che?%e book, then that c%stome" !ll have to come to the bank
and $"stl' "epo"t the loss and then stop pa'ment, b' telln& the se"es o$ che?%e he has
lost( 1' stoppn& pa'ment, the c%stome" s &%a"anteed that no lle&al pa'ment s made
$"om the" acco%nt( The p"ocess $o" stoppn& pa'ment, a$te" the c%stome" tells that he has
lost s che?%e book s that he $lls a <Ao"m 1*, !hch s same as a che?%e book "e?%ston
$o"m and an ndemnt' $o"m, statn& no "esponsblt' on behal$ o$ the bank $ an' lle&al
pa'ment s made be$o"e the tme o$ anno%ncn& a che?%e book lost(
Bank Statement and Bank Balan!e
A bank statement tells the !hole actvt' o$ a bank acco%nt ove" a pe"od o$ tme(
C%stome"s o$ten come and !ant the" bank statements and have to $ll a $o"m, "elatn& to
the tme pe"od $o" !hch the bank statement s needed( As pa"t o$ m' nte"nshp, ) !as to
assst the c%stome" to $ll the <1ank 2tatement Ao"m* and p"nted statement s &ven
th"o%&h the banks so$t!a"e( O$ten c%stome"s !ant to kno! the" acco%nts balance ove"
the phone and th%s ) had to tell them the" acco%nt balances %sn& the banks n$o"maton
s'stem <1ank 2ma"t*(
A!!ount ,(ening
Wheneve" a c%stome" comes to open the" acco%nt, the' have to $ll a "elatonshp
cont"act !th the bank( As pa"t o$ m' nte"nshp ) had to $ll these $o"ms and then %se the
app"op"ate bank stamps to complete these $o"ms( Also as pa"t o$ the "elatonshp $o"m, )
also had to do a <Ne"s's*, a ve"$caton s'stem sta"ted b' NAD@A on the CN)C o$ the
ne! acco%nt opene"( A <Ne"s's* tells, $ mo"e n$o"maton pe"tann& to the c%stome" s
needed to open the acco%nt o" not( A%"the"mo"e as all "elatonshp $o"ms have to be sent
to Ka"ach, a cent"al locaton, $o" all acco%nt "elatonshp $o"ms(
5emittan!es
The need o$ "emttance s commonl' $elt n toda'*s b%sness( A ma=o" $%ncton o$ an'
bank s to ,t"ans$e" o$ $%nds $o"m one place to anothe"-(
The"e a"e t!o man t'pes o$ nst"%ments that a"e %sed to t"ans$e" mone', !hch a"e as
$ollo!sK
6a' o"de"K Csed to t"ans$e" mone' !thn the ct'
Demand D"a$tK Csed to t"ans$e" mone' o%tsde the ct'
"ay Order
1.
6a' o"de"s a"e made to t"ans$e" mone' !thn the ct' and ths s a sa$e !a' to t"ans$e"
mone' as the pe"son !ho makes the t"ans$e" th"o%&h pa' o"de" pa's n advance( The
p"oced%"e that s ca""ed o%t n t"ans$e""n& mone' th"o%&h pa' o"de" s as $ollo!sK
Pro!edure for Transferring Money through Pay ,rder
The c%stome" !ll come to the bank and $ll n the pa' o"de" applcaton, &vn& n the
detals to !hch acco%nt the mone' s ben& t"ans$e""ed, the amo%nt etc and attach a
che?%e to pa' $o" the pa' o"de"( 6a' o"de"s can also be made th"o%&h cash b%t manl' t
s made th"o%&h che?%e(
The o$$ce" checks all the detals n the applcaton, makes o%t the cha"&es $o" the t"ans$e"
that the c%stome" !ll pa' and then make the pa' o"de" $o" the c%stome" and pass the
$ollo!n& ent"'K
C%stome" ALc
6a' o"de" pa'able
When the c%stome" n $avo" o$ !hom the pa' o"de" !as made &ves the pa' o"de" to hs
b"anch, the ent"es passed a"eK
6a' o"de" pa'able
C%stome" ALc
Demand Draft
Demand D"a$t s anothe" !a' n !hch c%stome"s can t"ans$e" mone' o%tsde the ct'(
The"e a"e t!o t'pes o$ st%atons $o" t"ans$e" o$ mone' th"o%&h demand d"a$tsK
,ut>ard 11?s
When a c%stome" comes to 1ank Al$alah to make a DD to t"ans$e" mone' o%tsde the ct'
s kno!n as o%t!a"d DD( The c%stome" !ll $ll the detals n a DD applcaton $o"m, and
!ll attach a che?%e o" pa' cash as he !sh(
Then the o$$ce" !ll check all the detals and make a demand d"a$t $o" the c%stome" and
pass the $ollo!n& ent"esK
Ao" Che?%eK Ao" CashK
C%stome" ALC 2%nd"' ALc
19
;ead O$$ce ;ead O$$ce
&n>ard 11?s
Ths s the p"oced%"e adopted !hen the ss%n& b"anch sends cop' o$ the nst"%ment as an
advce( When the bank "eceves the advce, the o$$ce" !ll pass the $ollo!n& ent"esK
;ead O$$ce ALc
DD 6a'able ALc
When the c%stome" comes !th the DD to &et hs pa'ment, the $ollo!n& ent"es a"e
passedK
DD 6a'able ALc
Cash
)$ that c%stome" s a 1ank Al$alah acco%nt holde" then the $ollo!n& ent"es a"e passedK
DD 6a'able ALc
C%stome" Acco%nt
'oreign #emittances
Anothe" t'pe o$ "emttances s $o"e&n e+chan&e t"ans$e" $"om anothe" co%nt"' to a 1ank
Al$alah acco%nt n 6akstan, th"o%&h 2W)AT( 1ank Al$alah $o" $o"e&n e+chan&e
t"ans$e"s takes the help o$ Ct 1ank $o" "o%tn&(
Pro!edure for 9oreign Transfers
The c%stome" !ll come to Ctbank to t"ans$e" mone' to 6akstan( The ent"es passed
!ll beK
C%stome" ALc
10
Ctbank ALc
Ctbank !ll then t"ans$e" that mone' to 1ank Al$alah Ka"ach( The ent"es a"eK
Ctbank ALc
1ank Al$alah Nost"o ALc DkhE
Late" 1ank Al$alah !ll t"ans$e" the Nost"o ALc mone' nto the demand acco%nt(
Nost"o ALc 1ank Al$alah
Demand ALc
No! !hen the c%stome" !ll come to take hs mone', the $ollo!n& ent"es !ll be madeK
Demand ALc
C%stome" ALc
C5E1&T MA5=ET&N< 1EPA5TMENT
C"edt means bele$ o" t"%st( ,The ?%alt' o$ ben& c"edble o" t"%st!o"th'-( Anothe"
!o"ds !e can de$ne c"edt as ,t"%st n one*s nte&"t' n mone' matte"s and ones ablt'
to meet pa'ment !hen d%e-(
C"edt ma"ketn& depa"tment deals !th e+tendn& loans Dc"edt $aclt'E to c%stome"s
be$o"e sancton advce( 2tate 1ank o$ 6akstan D216E has p"esc"bed "e&%latons !hch
a"e called ,6@CDENT)AL @EGCLAT)ON2-( Eve"' bank has to $ollo! these
"e&%latons( )$ an' bank volates the "e&%latons t sho%ld be lable $o" penaltes(
The 1ank Al$alah lmted c"edt s e+tended on the bass o$ these "%les and "e&%latons(
These "e&%latons tells the te"m and condtons %nde" !hch 'o% can e+tend loans to the
bo""o!e" and to !hat e+tent(
C#(DI) '!CI*I)I(+
At 1AL the"e a"e t!o t'pes o$ c"edt $acltes
A%nded $acltes
Non $%nded $acltes
18
',-D(D '!CI*I)I(+
These a"e the $acltes n !hch the"e s d"ect nvolvement o$ cash $%nd( Aollo!n& a"e
the $%nded $acltes(
C%""ent $nance ,CA-
Te"m $nance ,TA-
Anance a&anst $o"e&n blls ,AAA1-
Anance a&anst packn& and c"edt ,AA6C-
Anance a&anst mpo"ted me"chandse ,A)M-
Anance a&anst t"%st "ecept ,AAT@-
Local blls dsco%nted ,L1D-
Current 9inan!e @C9A
The e+tensvel' %sed $nancn& mode at 1AL s c%""ent $nance DCAE c%""ent $nance s
%sed to $nance both ndvd%als and nd%st"es(
)ndvd%al take c%""ent $nance $o" the" pe"sonal %se !hle n nd%st"es( )t s taken $o"
$%l$lln& the "e?%"ement o$ !o"kn& captal(
Term 9inan!e @T9A
Te"m $nance s $o" spec$ed tme pe"od( Te"m $nance s &ven $o" $+ed asset $nancn&(
9inan!e against 9oreign Bills @9A9BA
)n AAA1 $aclt' e+po"te" take loan $"om bank on the behal$ o$ the" $o"e&n e+po"t blls(
Lke e+po"te" sends shpment b%t at that tme he needs $%nd $o" the ope"aton o$ the
b%sness( ;e ma' &o to the bank and s%""ende"s all the doc%ments ncl%dn& LLC, 1ll o$
ladn& etc( bank checks all the doc%ments to be n acco"dance !th te"ms and condtons(
)$ the' $nd no dsc"epanc', the' &ve mone' to e+po"te" b%t take some ma"&n on t(
9inan!e against Pa!king and Credit @9APCA
AA6C s taken $o" the p"epa"aton o$ cons&nment( )t has t!o $o"ms(
6"e shpment
6ost shpment
2:
4/ Pre Shi(ment
6"e shpment loans a"e e+po"t "elated !o"kn& captal $nancn&(
8/ Post Shi(ment
6ost shpment $nancn& s essentall' the "ecevable $nancn& to the e+po"te"s tll the
pe"od he s o%t o$ cash a$te" the shpment(
9inan!e against &m(orted Mer!handise @9&MA
Ths $aclt' s allo!ed a&anst the commodtes mpo"ted $"om othe" co%nt"es %s%all'
th"o%&h lette" o$ c"edt( 2ome tme mpo"te" does not have eno%&h amo%nt $o" pa'n& the
mpo"ted me"chandse the"e$o"e( ;e "e?%est to the bank to pa' all d%es to the e+po"te"
a&anst the sec%"t' o$ mpo"ted me"chandse( 1ank pa's the amo%nt and "eleases the
&oods, !hen the mpo"te" pa's o$$ ts lablt' pa"tall' L $%ll'(
9inan!e against Trust 5e!ei(t @9AT5A
Anance s e+tended %pon the t"%st "ecept s&ned b' bo""o!e"( )mpo"te" has to mpo"t the
p"od%ct( The"e a"e th"ee condtons(
6a' mone' and &et thn&
Get $ne $aclt'
And th"d s that $ that clent s t"%st !o"th' $o" bank belevn& on hm based %pon hs
past "eco"d( ;e "eleases the &oods a&anst the t"%st "ecept( T"%st "ecept s &ven to the
bank b' the c%stome"( The c%stome" n t%"n commts that ) !ll pa' on s%ch and s%ch
date( 1anks pa's all ta+es and &ets me"chandse and then &ves t to clent( 1ank do
cha"&es ma"k%p a&anst s%ch $nancn&( AAT@ s $o" spec$c pe"od o$ tme( )$ clent does
not pa' !th n spec$ed tme then bank !ll cha"&e h&he" pe" da' ma"k%p(
:o!al Bills 1is!ounted :B1
6a'ment a&anst doc%ments o" local blls s made b' the banks as pa'ment a&anst LLC
comes d%e pa'ment s made $o" mpo"ted doc%ments( Ao" e+ample !hen selle" o$ ph%tt
D"a! cottonE &ves all the doc%ments o" blls to bank as to &et blls dsco%nted n !hch he
&ets mmedatel' pa'ment !hch he !o%ld "eceve a$te" the season(
-O- ',-D(D '!CI*I)I(+
21
The $acltes !he"e the"e s no d"ect nvolvement o$ banks $%nd( The"e a"e t!o t'pes o$
%n$%nded c"edt lne $aclt', !hch a"e as $ollo!sK
Lette" o$ C"edt DLCE
Lette" o$ G%a"antee DLGE
:etter of Credits
A lette" o$ c"edt s a !"tten %nde"takn& b' a bank Dss%n& bankE &ven at the "e?%est
and acco"dance o$ a b%'e" Dthe applcantE to the selle" Dthe bene$ca"'E to a $act pa'ment
%p to a stated amo%nt o$ mone' !thn p"esc"bed tme lmt p"ovded that the te"ms and
condtons a"e compled !th( Lette" o$ C"edts ss%ed n the nte"natonal t"ade b%sness(
The"e a"e t!o t'pes o$ Lette" o$ C"edtsK
Bsan!e :C
Csance LC s a $o"m o$ LC, !he"eb' the bank en&a&es to hono" the bene$ca"' %sance
d"a$t on an acceptance that the tems a"e n acco"dance !th the condtons( 6a'ment s
made a&anst acceptance(
Sight :C
Theses a"e lette" o$ c"edt !he"e the bank en&a&es to hono" the bene$ca"'*s s&ht d"a$t
%pon p"esentaton p"ovded that the doc%ments a"e n acco"dance !th the condtons o$
the LLC( Ths s a mo"e sa$e $o"m o$ lette" o$ c"edt as pa'ment s made a&anst the
doc%ments(
:etter of <uarantees
Lette" o$ &%a"antees s a &%a"antee that the bank &ves to an o"&an7aton on behal$ o$ the
bank( Lette" o$ G%a"antee*s a"e manl' %sed !hen a tende" $o" a spec$c =ob s $lled b' a
c%stome"( The"e a"e th"ee man t'pes o$ LG*sK
Bid Bond
1d 1ond a"e $lled at the tme o$ $lln& o%t the tende" and states that $ the compan' s
&ven the tende", t !ll sta"t !o"kn& on t and !ll not !alk a!a'(
Performan!e Bonds
6e"$o"mance 1onds a"e ss%ed to the bene$ca"', to &%a"antee hm that the applcant o$
the tende" !ll pe"$o"m the cont"act %nde" a spec$c pe"od o$ tme( 6e"$o"mance bonds
a"e ss%ed a$te" the tende" s app"oved o$ the applcant(
Mobilization against :< .MA:</C
22
Ths s a &%a"antee that the bank &ves !hen the bene$ca"' Dthe $"m that ss%ed the
tende"E that pa's an advance o$ tende" to the applcant Dthe $"m that &ets the tende"E, that
he !ll "et%"n that advance amo%nt(
'lo. Chart of
"rocessing of fresh
proposal
23
1( )nte"ve!
p"ospectve bo""o!e"
2( @ecept o$ "e?%est
6"epa"e vst "epo"t
)iabl
e
3a( @e$%se
@e?%est
4( @e?%est &ven
to c"edt o$$ce"
A
24
1( )nte"ve! p"ospectve
bo""o!e" n the p"esence o$ c"edt
Mana&e"(
2( @eceve "e?%est statn& the
amo%nt, t'pe, teno" and p%"pose
o$ $acltes as !ell as "epa'ment
and sec%"tes o$$e"ed(
3( 6"epa"e vst "epo"t to assess
!hethe" the bo""o!e" s a &ood
c"edt "sk(
3a( Whe"e p"oposal s not vable then
"e$%se "e?%est(
4( Whe"e p"oposal s vable
allocate task to c"edt o$$ce"(
25
5( @e?%est C)1 and othe" c"edt
"epo"t $"om 216 and othe" banks
"espectvel'(
.( Whe"e ""e&%la"t' $o%nd
"et%"n p"oposal to c%stome" $o"
"e&%la"7atonL "ect$caton(
.a( Whe"e the above not "e&%la"7ed
declne p"oposal(
9( Whe"e ""e&%la"t' not $o%nd
p"epa"e CL6 p"ovdn& all
necessa"' detals(
5( @e?%est C"edt
@epo"t
A
)""e&%la"
t'
.( @et%"n p"oposal
@e&%la"7
e
.a( Declne
p"oposal
9( 6"epa"e C"edt
Lne 6"oposal
DCL6E
B
0( 2p"ead 2heet
B
8( 2&n L Ao"!a"d
0a( @e$e" case
6"%dent
al
@e&%lat
ons
1:( C"oss/ check
)n$o"maton
11( 2&nL $o"!a"d
!th attachments
C
2.
0( 6e"$o"m a compa"atve
anal'ss o$ a%dted th"ee 'ea"s
"epo"ts( Also p"epa"e sp"ead sheet
$o" va"o%s "atos(
0a( Check p"oposal $o"
complance !th p"%dental
"e&%latons(
8( Whe"e "e&%laton compled
!th and c"edt mana&e" &ves hs
app"oval, s&n and $o"!a"d CL6
to C"edt Mana&e"(
1:( @eceve the above and c"oss
check n$o"maton n CL6 !th
that $nancal statements and
sp"ead sheet(
11( 2&n and $o"!a"d CL6 !th
attachments to 1"anch mana&e"
!he"e $nancal anal'ss p"oves to
be $avo"able(
12( A$te" necessa"' "eve! and
dsc%sson !th c"edt mana&e",
s&n and $o"!a"d doc%ments to
the sec"eta"' 1CC(
13( @eceve p"oposal $o"m, ente"
n the "elevant "e&ste" and allot
cont"ol n%mbe"(
13a(Asce"tan !hethe" the p"oposal s
!thn the p"ede$ned sanctonn&
lmts o$ 1CC(
14( Make photocopes o$ CL6 and
p"ovde to membe"s o$ 1CC(
15( 6"esent CL6 !th a%dted
$nancal statements etc( n sesson
held b' 1CC to dsc%ss "skL
"e!a"ds and othe" $acto"s
assocated !th c"edt p"oposal(
29
15a(2eek consens%s o$ membe" o$
1CC !he"e consens%s not
obtaned "e=ect p"oposal(
1.( Whe"e consens%s obtaned $
!thn the p"e/de$ned lmts o$
1CC( )$ not "ecommend sancton
and $o"!a"d to c"edt dvson $o"
app"oval o$ ;(O(
19( @etan a set o$ photocop' o$
CL6(
10( On "ecept o$ sancton advce
$"om c"edt dvson "etan one
cop' $o" "eco"d and $o"!a"d
o"&nal to conce"ned c"edt
o$$ce"( 6"epa"e ,O$$e" Lette"-
and p"oceed !th othe"
doc%ments(
12( 2&n CL6L
6ass doc%ments
to 1CC
C
1
13( Ente"
6"oposal
S!rutin
y
14( Make copes
15( 6"esent CL6
13a( Con$o"m
lmts
20
28
15a( @e=ect
p"oposal
1
Consens
%sL2ats$
ed
1.( Ao"!a"d
CL6
19( @etan
photocop'
10( @eceve
2ancton advce
$"om c"edt
dvson
END
!lfalah Branded "roducts
=arobar 9inan!e
Al$alah Ka"oba" Anance s sho"t te"m $aclt' that s onl' p"ovded to ndvd%als and
sole p"op"eto"s( Ths $aclt' also has one 'ea" valdt' !th ma"k%p cha"&ed on the
amo%nt %sed( Ths $aclt' a&an p"ovdes ndvd%als to mantan the" !o"kn& captal
mana&ement and s a&an &ven to ndvd%als $o" a sec%"t'( Ka"oba" $nance s t'pe o$
c%""ent $nancn& !th d$$e"ence (e(, n ka"oba" $nance, the ndvd%al has to clea" all hs
balance n hs acco%nt, once n a 'ea"(
Milkiat 9inan!e
Al$alah Mlkat Anance s a lon& te"m $aclt' that s p"ovded to 2MEs and the"e a"e $o%"
man t'pes o$ $acltes p"ovdedK
Ac?%ston o$ "ented comme"calLnd%st"al p"ope"t'
Const"%cton on an o!ned comme"calLnd%st"al plot
6%"chase o$ a comme"calLnd%st"al p"ope"t'
@enovaton o$ o!ned comme"cal p"ope"t'
2ome o$ the $eat%"es o$ Mlkat $nance a"e as $ollo!sK
Ten%"e o$ 2/15 'ea"s e+cept $o" "enovaton, !hch s $o" 2/4 'ea"s
Ma"k %p o$ DK)1O@I5>E
Anancn& $"om @s :(5 mllon to @s 3: mllon
El&blt' a&e sho%ld be less than .5, !th 3 'ea"s o$ e+stn& b%sness
Dui!k 9inan!e
Al$alah O%ck Anance s anothe" sho"t te"m and a t'pe o$ c%""ent $nancn& $aclt' that s
onl' p"ovded to ndvd%als $o" the $%l$llment o$ pe"sonal o" $aml' needs( The $nancn&
s &ven a&anst the deposts and &ove"nment sec%"tes %p to the 8:> o$ the cash val%e o$
sec%"t'( Anancn& s made $"om 5:,::: %p to 25 mllon(
3:
)he fi/e C0s of Credit
i/ Ca(italC
The captal # "eso%"ces o$ the bo""o!e" hs captal st"%ct%"e and the &ea"n& "atos ethe"
bo""o!e" Cnde"/captal7edP Does the bo""o!e" have ts o!n "eso%"ces to $all back on, n
case o$ needP
ii/ Ca(a!ityC
Capact' o" the capablt' o$ the bo""o!e" to mana&e hs b%sness p"o$tabl' and the
capact' to "epa' the advances and se"vce the $acltes acco"dn& to a&"eed te"ms( )s the
bo""o!e" n a capact' to bo""o!P O" s the"e an' le&al complcatonP
iii/ CollateralC
The sec%"t' p"ovded a&anst the $acltes( )s the sec%"t' p"ovdedK Ade?%ate,
@eal7able, Ma"ketable, Nal%able, 2to"able, Non/pe"shable, D%"able, and
T"ans$e"ableL!th clea" Ttle(
i"/ Chara!terC
A"e the bo""o!e"Qs pe"sonal cha"acte", ma"ket standn& and "ep%taton mpeccableP ;as
he met hs pa"t commtmentsP Does he have &ood bank "e$e"enceP
"/ ConditionsC
;ave the condtons o$ lendn& been d"a!n %p takn& nto acco%nt all possbltes )s the
secto"Lnd%st"' n declne, s &"o!n& o" t has "eached at platea%P )s the"e a ma"ket $o"
the p"od%cts and the ma"ket s7e to =%st$' p"od%cton plans and sales $o"ecastsP A"e the
economc condtons $easble &ene"all' and $o" the b%sness, n pa"tc%la"P
31
Credit Administration 1e(artment
.CA1/
Takn& co&n7ance o$ the s%staned p"o&"esson o$ the bank b%sness and the nhe"ent "sk
$acto"s attached to e+panson, the mana&ement $elt a need $o" settn& %p o$ ndependent
C"edt Admnst"aton Depa"tment DCADE n ts b"anches so as to mnm7e the losses
occ%""n& $"om &vn& c"edt(
Acco"dn& to the 1ank Cha"man @eve!
,Conse"vatve 'et d'namc c"edt polc'-
Whle adhe"n& to the above polc' t s mpe"atve that the pe"$ecton o$
sec%"t' and en$o"ceablt' o$ s%ppo"t doc%ments a"e ens%"ed $o" a$$ectve Mana&ement(
)ts man p%"pose s to st"eamlne the !o"kn& o$ CAD to mt&ate the chances o$ losses
a"sn& $"om ncomplete sec%"t' and doc%ments cove"n& advances(
)t s s%&&ested that CAD headed b' a mana&e" s to be set %p n b"anches meetn& the
$ollo!n& c"te"a
,A&&"e&ate $%nds and non/$%nd based c"edt po"t$olo o$
@2(5:: mllon and above and mnm%m n%mbe" o$ bo""o!n& c%stome"s ben& t!ent'
$ve-(
The pe"sonnel o$ CAD a"e $%"the"ed advsed to keep themselves %pdate b' the latest
nst"%ctonL"e&%laton ss%ed $"om ;ead O$$ce, 2tate 1ank o$ 6akstan and Othe"
"e&%lato"' nstt%tons(
32
@eceve sancton advce $"om c"edt
mana&e"
2ta"t
Obtan 2ec%"t' as pe" 2ancton
advce
Check all Aacltes Doc%ments
Complete "e&st"aton o$ the 1ank*s
cha"&e ove" sec%"t' !th 2EC6L Gov
a%tho"tes
App"ase @elatonshpL
c"edt mana&e" and
b"anch mana&e"
An' e+cepton to the
te"ms and condtons
o$ sancton advce,
ens%"e !ave" obtaned
$o" competent
a%tho"t'
)$
Complet
e
A
9lo> Chart Pre;1isbursement 9un!tions
33
Complete 2tanda"d $acltes and sec%"t'
doc%mentaton
A
Lod&e sec%"t' and doc%ments attested b' the
conce"ned c"edt mana&e"
Aeed lmts n the s'stem
@elease $acltes
END
34
35
9lo> Chart Post;1isbursement 9un!tions
3.
2ta"t
Obtan "elevant "epo"ts s%ch as stock "epo"t,
ns%"ance "epo"t etc( As pe" sancton advce
@eve! and monto" s'stem &ene"ated
"epo"ts and othe" nst"%cton pe"odcall'
Co""ect "ecove"' ma"k %p and othe" chan&es
"elatn& to c"edt $aclt' DesE
6"epa"aton and s%bmsson o$ statements to
216, ;O, and othe" nstt%tons
2a$e keepn& and pe"odcal balancn& o$ p"e/
stamped doc%mentsLstamps pape"s
Credit !dministration "rocess
4. 5egistration of !harge
The CAD mana&e" has to "e&ste" cha"&e !th sec%"t' and e+chan&e commsson o$
6akstan D2EC6E o$ mo"t&a&eL h'pothecaton !thn 21 da's $"om the date e+ec%ton o$
doc%ments(
8. Se!uritiesE 9a!ilities 1o!umentation
The CAD mana&e" has $ollo!n& optons !hle sec%"n& c"edt(
A"st e+cl%sve Cha"&esK )n $"st e+cl%sve cha"&es, $"st the clam o$ bank s
sats$ed n the case o$ de$a%lt o$ the bo""o!e"(
@ankn& Cha"&esK )n ths, the "ankn& s &ven( The $"st on the "ankn& s sats$ed
and then comes the second and so on(
6led&eK )t con$e"s ph'scal possesson o$ movables b%t not o!ne"shp(
;'pothecatonK )t s a sec%"t' $o" a debt, !hch "eman n the possesson o$ the
bo""o!e"(
Mo"t&a&eK )t s a clam a&anst "eal estate o" $+ed assets( The depost o$ ttle
deeds !tho%t doc%mentaton can c"eate a mo"t&a&e(
LCs, 1ank G%a"antees, othe" &%a"antees
6. )aluation
A CAD mana&e" can take val%e and eval%ate sec%"t' !o"th $"om the $ollo!n& so%"ces
Se!urity Sour!e
Deposts Comp%te" p"nts o%t sho!n& act%al amo%nt
Gove"nment sec%"tes Aace val%e o" encashable val%e "ates
p%blshed b' the &ove"nment o$ 6akstan
2ha"es 2tock e+chan&es "ates n dal' ne!spape"
Mo"t&a&e o$ p"ope"t'L assets Nal%aton "epo"t b' bank*s eval%ato"
sho!n& ma"ket val%e
2tockD %nde" pled&e, h'pothecatonE Ao" pled&e Ka"ach Cotton Assocaton
ss%es ts "ates( Ao" h'pothecaton stock
"epo"t s%bmtted b' bo""o!e"
39
)ss%ance o$ &%a"antees
END
1ook DebtL @ecevables L$e o$ book debtsL"ecevable s%bmtted b'
the bo""o!e"(
L$e )ns%"ance 6olc' 2%""ende" val%e o$ l$e polces ss%ed b'
ns%"ance compan'
An' othe" sec%"t' As pe" te"ms o$ sancton advce
%. Sto!k re(ort
A"e?%ent s%bmsson o$ stock "epo"ts s necessa"' as pe" te"m o$ sancton advce(
'. Sto!k &ns(e!tion
Ne"$caton o$ stock s made and t sho%ld be the same as &ven n stock "epo"t( The
$ollo!n& a"e %s%all' checked(
2tock b"eak %p
Evdence o$ o!ne"shp
O%alt'Lcondton o$ !a"eho%se
A"e 6"otecton ade?%ac'
Ade?%ate p"otecton $"om the$t, b%"&la"' etc(
7. &nsuran!e
Assets cha"&ed to the bank sho%ld be ns%"ed th"o%&h an app"oved ns%"ance compan'(
One month be$o"e e+p"' o$ the ns%"ance polc', the conce"ned c%stome"s sho%ld be
"emnded to "ene! the polc'(
+. Sear!h re(ort
All p%blcLp"vate lmted companes a"e "e?%"ed to "e&ste" bank*s cha"&e ove" ts
c%""ent and $+ed assets !th 2EC6( 2ea"ch "epo"t s p"epa"ed $"om the "eco"ds o$ 2EC6
sho!n& the "ankn& o$ cha"&es ove" bo""o!e"*s assets to d$$e"ent banks(
0. Credit &nformation Bureau .C&B/
2tate 1ank o$ 6akstan "e?%"es banks to obtan detaled n$o"maton $"om C)1, 216
!hen consde"n& p"oposals o$ ove" @s( :(5 mllon to an' bo""o!e"( )n case C)1 "epo"t
ndcates ove" e+pos%"eL de$a%lt n meetn& obl&aton etc( The accommodaton to the
conce"ned bo""o!e" can be de"ved(
2. Borro>er Basi! 9a!t Sheet
216 "e?%"es that all $aclt' applcaton sho%ld be accompaned b' the 1o""o!e"*s Aact
1asc 2heet as pe" app"oved $o"mat o$ 216(
30
Borro.ers
The $ollo!n& a"e the cate&o"es o$ the bo""o!e"s
4. Cor(orate Body
The te"m ,Co"po"ate 1od'- !ll ncl%deK
A compan' nco"po"ated %nde" the companes act(
A co"po"aton c"eated b' a o"dnanceL a stat%teL act o$ le&slat%"e
a. ,btain memorandum and Arti!les of asso!iation of the !om(any
Whethe" compan' s p%blc lmted and ?%oted on stock e+chan&e, not ?%oted on
stock e+chan&e s a p"vate lmted(
Whethe" t s empo!e"ed to bo""o!P
A"e the"e an' "est"ctons on the compan'*s po!e" to bo""o!P
What a"e d"ecto"s* po!e"sP
b. ,btain board resolution and ensure that it !ontains
A%tho"7aton to "ase $acltes
C"eate Cha"&e on compan' assetsLpled&e sec%"tes !hch a"e n companes name
8. Partnershi(
The pa"tne"shp deed s obtaned( )n ts absence bank*s standa"d lette" o$ pa"tne"shp, d%l'
s&ned b' pa"tne"s s obtaned( Altho%&h all pa"tne"s a"e =ontl' and seve"all' lable $o"
the debt o$ the $"m, ho!eve", t s consde"ed ne+pedent to obtan pe"sonal &%a"antees
$o" &ood b%sness "eason(
6. Sole (ro(rietorshi(
)t s o!ed b' an ndvd%al and the"e ben& no $o"mal p"oced%"e to be $ollo!ed $o" settn&
the b%sness so a decla"aton on the $"m lette" head evdencn& p"op"eto"*s name etc s
taken(
%. &ndi"idual
38
)t s ens%"ed that bo""o!e" s not s%$$e"n& $"om an' ncapact' and s not a mno", nsane
o" nsolvent( These people a"e not capable o$ cont"actn& and the"e$o"e an' bo""o!n& b'
them s %nla!$%l(
'. ClubsF Asso!iationsF TrustsF Charitable so!ieties
E+t"a ca"e s taken as these bo""o!e"s ma' en=o' le&al p"otecton, !hch s not avalable
to othe"s(
Trade 9inan!e 1e(artment
T"ade Anance nvolves the mpo"t and e+po"t actvtes( Ths depa"tment p"ovdes
p"otecton to the "&hts o$ mpo"te" and e+po"te"( The $%ncton o$ ths depa"tment s to
se"ve as a b"d&e bet!een the mpo"te" and e+po"te" n o"de" to settle a t"ansacton( When
t"ade s takn& place bet!een the "ep"esentatves o$ t!o co%nt"es De+po"te" and mpo"te"E,
the e+po"te" nvolves hs bank Dthe Ad"ising BankE n the t"ansacton, as he !ants to $eel
sec%"e "e&a"dn& tmel' pa'ment o$ hs &oods n the "e?%"ed c%""enc'( On the othe" hand
the mpo"te" nvolves hs bank Dthe &ssuing BankE, n o"de" to &et a sense o$ sec%"t'
"e&a"dn& tmel' s%ppl' o$ the "e?%"ed p"od%ct, n the "e?%"ed manne"(
T"ade Anance Depa"tment handles t!o actvtesK/
)mpo"t
E+po"t
IM"O#)
)mpo"t Depa"tment o$ 1AL deals !th the mpo"t o$ me"chandse( )mpo"t can be de$ned
asK
,The b"n&n& o$ commodtes nto 6akstan $"om o%tsde b' sea, land o" a"(-
5equirement for the &m(orter
These "e?%"ement L doc%ment m%st be $%l$lled $"om mpo"te" be$o"e don& the mpo"tK/
4:
NTN DNatonal Ta+ N%mbe"E ce"t$cate
2ale @e&st"aton Ce"t$cate
Membe"shp $"om Chambe" O$ Comme"ce
O%estonna"e d%l' $lled n
N)C Dattested cop'E
(1ports
E+po"ts a"e ma=o" so%"ces o$ ea"nn& $o"e&n e+chan&e and pla' an mpo"tant "ole n the
economc development o$ the co%nt"'( )t helps to %tl7e e+cess "eso%"ces o$ the co%nt"'(
,E+po"ts mean selln& &oods to anothe" co%nt"'(-
E+po"ts o$ all el&ble commodtes th"o%&h a%tho"7ed bankn& channels a"e admssble
%nde" e+chan&e cont"ol "e&%laton(
5equirement for the E(orter
These "e?%"ement L doc%ment m%st be $%l$lled $"om e+po"te" be$o"e don& the e+po"tK/
Acco%nt holde" o$ 1ank Al$alah Lmted
M%st be a 6akstan
Membe"shp $"om Chambe" O$ Comme"ce
NTN DNatonal Ta+ N%mbe"E ce"t$cate
The pe"son m%st have the 2ales Ta+ @e&st"aton Ce"t$cate(
Ao"m E D e+po"t $o"mE d%ll' $lled n
2ale @e&st"aton Ce"t$cate
Methods of 1oing &nternational Trade
Lette" o$ C"edt
Cont"act
41
*())(# O' C#(DI) 2* 3 C4:
4/ :ETTE5 ,f Credit .: E C/ A1)&S&N<
Lette" o$ C"edt DLCE s a !"tten and condtonal %nde"takn& b' a bank on the behal$ o$
applcant to the bene$ca"' to pa' a ce"tan amo%nt at a ce"tan dateB $ the stp%lated
te"ms and condtons a"e compled !th(
The p"ocess o$ )nte"natonal T"ade sta"ts !th askn& o$ mpo"te" to ts bank $o" LLC(
Then mpo"te"*s bank !ll be called as ss%n& bank( The ss%n& bank sends the LLC to
1ank Al$alah Lmted( A bank that "eceves the LLC s called an advsn& bank beca%se
a$te" "ecevn& the LLC, t pe"$o"ms the LLC advsn& $%ncton( A cove" lette" s p"epa"ed
and s sent to the bene$ca"' o$ the LLC, advsn& hm hs LLC has "eached 1ank Al$alah
Lmted and he sho%ld collect t mmedatel'( A cop' o$ the LLC s sent alon& !th the
lette"(
8/ &SSBANCE ,9 E;9,5MS
Gove"nment has p"ovded $aclt' to e+po"te" n takn& E/Ao"m $"om an' bank and s a
pa"t o$ the e+chan&e cont"ol mechansm o$ the 2tate 1ank o$ 6akstan( When an e+po"te"
"eceves an LLC, hs ne+t =ob s to &et an E/$o"m $"om an a%tho"7ed 1ank(
On the E/$o"m sent b' the comme"cal bank $ollo!n& thn&s a"e mentoned
Desc"pton o$ the commodt'
O%antt' o$ the commodt' e+po"ted
Amo%nt "eal7ed
Ao"e&n bank cha"&es
Co%nt"' o$ the mpo"te"
6/ CE5T&9&CAT&,N ,9 T-E E;9,5M
A$te" $lln& n the complete n$o"maton abo%t the &oods to be e+po"ted, the e+po"te"
b"n&s the E/$o"m to the bank $o" ve"$caton( 1ank ss%es E/$o"m ce"t$caton to
e+po"te" and he s%bmts t to the c%stom o$$ce" alon& !th E/$o"m ce"t$caton to ce"t$'
E/$o"m(
42
%/ T-E 1,CBMENTS
A$te" &ettn& the E/$o"m ve"$ed the e+po"te" sta"ts p"epa"n& hs shpment( 1anks onl'
deal n doc%ments( )n o"de" to "eceve pa'ment $"om hs &oods the e+po"te" has to send
ce"tan doc%ments to the ss%n& bank va hs ne&otatn& bank( These doc%ments a"e(
Bill of e!hangeC
A bll o$ e+chan&e s an nst"%ment n !"tn& contann& an %ncondtonal o"de", s&ned
b' the make", d"ectn& a ce"tan pe"son to pa' a ce"tan s%m o$ mone' onl' to, o" to the
o"de" o$, a ce"tan pe"son o" the bea"e" o$ the nst"%ment( )t s d"a!n b' the e+po"te"
Dd"a!e"E and o"de"s the mpo"te" o" the mpo"te"*s bank Dd"a!eeE to pa' to the o"de" o$
1ank Al$alah Lmted Dpa'eeE a spec$c amo%nt( )$ the d"a$t s d"a!n at s&ht, the
mpo"te" m%st make the pa'ment on "ecept o$ the doc%ments( )$ t s tme d"a$t, the
pa'ment m%st be made !thn the spec$ed tme lmt(
Commer!ial &n"oi!e
The e+po"te" p"epa"es t( )ts amo%nt m%st tall' !th that o$ the LLC( )t sho!s the name
and add"ess o$ the mpo"te" as !ell as the nvoce n%mbe"( Ths n%mbe" s ve"'
s&n$cant as t s %sed n all the co""espondence bet!een the e+po"te" and hs bank( )t
also contans all the spec$catons o$ the commodt' ben& e+po"ted( The standa"d
de$nton o$ comme"cal nvoce s that t s an itemi#ed list o$ !oods shi%%ed to a buyer&
statin! "uantities& %ri'es& and shi%%in! 'har!es.
Bill ,f :ading
The shppn& compan' o" the a"lne that has been ass&ned the task o$ t"anspo"tn& the
&oods ss%es these( The shppe" m%st ens%"e that the &oods a"e shpped and handed ove"
the "&ht pe"son !hen doc%ments a"e p"esented to hm( The standa"d de$nton o$ a bll
o$ ladn& s cont"act bet!een the selle" o$ the &oods and the ca""e"(
The $ollo!n& a"e t'pes o$ bll o$ ladn&K
OCEAN 1ll O$ Ladn&
A" Wa'bll
)nland 1ll O$ Ladn&
43
Pa!king :ist E 3eight :ist
The e+po"te" p"epa"es these lsts n o"de" to sho! that the cons&nment s acco"dn& to the
o"de" o$ the b%'e"( )t &ves a detaled acco%nt o$ the manne" n !hch the &oods have
been packed and the n%mbe" o$ ca"tons the' have been packed n(
Certifi!ate of ,rigin
Ths doc%ment ce"t$es the o"&n o$ the e+po"ted &oods( )n the case o$ e+po"ts $"om
6akstan, the ce"t$cate o$ o"&n sho!s that the co%nt"' o$ o"&n o$ the &oods s
6akstan( The ce"t$cate o$ o"&n s a doc%ment n !hch the e+po"te" ce"t$es to the
place o$ o"&n o$ the &oods to be e+po"ted(
E;9orm
)t s a necesst' $o" all e+po"ts o%t o$ 6akstan( All comme"cal banks al!a's ss%e the E/
$o"m n ?%ad"%plcate(
O"&nalK s sent to the c%stom o$$ce"
D%plcateK 1ank "eceve the d%plcate
T"plcateK s sent to the 2tate 1ank O$ 6akstan
O%ad"%plcateK s kept b' the e+po"te" $o" hs pe"sonal "eco"d(
E(ort )isa
Ths doc%ment s "e?%"ed !hen the destnaton o$ cons&nment s Canada, Ame"ca, and
C(K( D$$e"ent co%nt"es $+ ?%ota $o" d$$e"ent commodtes and "est"ct mpo"ts o$ those
&oods !th n a spec$c lmt( The"e $o"e vsa s "e?%"ed !hch s n $act a pe"msson to
e+po"t &oods to the spec$ed co%nt"es(
Payment by im(orter
44
E+po"te"s bank sends all the doc%ments ne&otated n LC to mpo"te"s bank( Once the
shpment a""ves n mpo"tn& co%nt"', doc%ments a"e kept !th the bank %ntl the
mpo"te" makes $%ll pa'ment to bank(
CO**(C)IO- 3 -(5O)I!)IO-:
When the e+po"te" comes to the bank !th the doc%ments, he has t!o optons(
2end them $o" collecton
Get Them ne&otated
Colle!tionC
The bank sends the doc%ments on behal$ o$ the e+po"te" to the mpo"te"*s bank $o"
pa'ment( The pa'ment s made n 6ak @%pees and the e+chan&e "ate s the 1%'n& "ate o$
the da' no"mall' called the T(T( Clean 1%'n& @ate( When the "emb%"sn& bank s to pa'
1ank Al$alah Lmted t c"edts ts nost"o acco%nt mantaned !th t Dthe "emb%"sn&
bankE, and a$te"!a"ds bank debts the e+po"te"*s acco%nt !th the local e?%valent o$ the
e+po"t p"oceeds calc%lated at the TT clean b%'n& "ate(
NegotiationC
The bank p%"chases the doc%ments $"om the e+po"te" (e( the e+po"te" &ets them
dsco%nted be$o"e the" mat%"t'( Ao" e+ample, the d"a$ts a"e at 8: da's $"om 1LL date( )n
smple !o"ds, the pa'ment $o" the e+po"ts !o%ld be "eceved a$te" th"ee months( The
e+po"te" m&ht not !ant to block hs $%nds $o" s%ch a lon& tme( ;e can &et hs
doc%ments ne&otated the da' he p"esents them to the bank( The e+chan&e "ate he !ll &et
!ll ho!eve" be lo!e" than the TT clean b%'n& "ate beca%se the bank s pa'n& hm an
amo%nt that t s &on& to "eceve a$te" th"ee months tsel$(
Cont"acts a"e not ne&otated ho!eve" n an' case( Ths s beca%se the' a"e %nsa$e
doc%ments and the bank does not take the "sk(
1is(at!hC
45
The doc%ments b"o%&ht b' the e+po"te" a"e n the $o"m o$ sets contann& an o"&nal and
a n%mbe" o$ copes( The n%mbe" o$ each doc%ment "e?%"ed b' the mpo"te" s mentoned
on the c"edt( Cs%all' the' a"eK
Man%all' s&ned comme"cal nvoce
1lls o$ ladn&
6ackn& lst n ?%ad"%plcate
1ll o$ e+chan&e
'i l i ng:
A sepa"ate $le s mantaned n each case and $ the doc%ments have been ne&otated, t s
ttled AD16 that s the abb"evaton o$ (orei!n )o'umentary Bills *ur'hased( )$ the
doc%ments have been sent $o" collecton, a $le n the smla" $ashon s kept b%t t s
labeled AD1C (e( (orei!n )o'uments Sent (or +olle'tion(
CO-)#!C):
The e+po"te" m&ht e+po"t the &oods based on a CONT@ACT !th the mpo"te"( )n s%ch
a case, the"e s no s%"et' to the e+po"te" that the mpo"te" !ll make the pa'ment( The
mpo"te" m&ht "e=ect the &oods on "ecept and den' and pa'ment to the e+po"te"(
The"e$o"e, the cont"act s an %nsa$e doc%ment( The"e a"e t!o t'pes o$ cont"acts(
CA1 .Cash against 1o!uments/C
The doc%ments a"e sent to the ss%n& bank( The ss%n& bank n$o"ms the mpo"te" that
hs doc%ments have a""ved( The mpo"te" deposts the amo%nt o$ the cont"act !th the
bank and takes possesson o$ hs doc%ments have a""ved( The ss%n& bank then makes
the pa'ment to the e+po"te"*s bank(
1A .1o!uments A!!e(tan!e/C
D"a!ee takes doc%ments and possesson $"om the ss%n& bank and s&ns a bll o$
e+chan&e n "et%"n &vn& hs acceptance $o" pa'ment on a spec$c mat%"t' date( No!, $
he does not make the pa'ment to the ss%n& bank no pa'ment s made to the e+po"te" and
the"e s no lablt' on ethe" bank(
4.
A((li!ation of Class 5oom :earning
D%"n& m' )nte"nshp at 1ank Al$alah Abdal @oad, ) sa! some p"actcal
applcaton o$ some class "oom lea"nn&(
) sa! most o$ kno!led&e applcaton n T"ade $nance depa"tment, C"edt Admnst"aton
and C"edt ma"ketn&( Ope"aton depa"tment had less kno!led&e applcaton(
Trade 9inan!e 1e(artmentC
At T"ade Anance Depa"tment, ) &ot a lot o$ p"actcal e+pos%"e o$ st%d'n&
)nte"natonal Anance( 2nce ths depa"tment mostl' deals !th mpo"ts and e+po"ts, ) sa!
the p"ocessn& o$ lette" o$ c"edt and the doc%ments needed $o" mpo"ts and e+po"ts(
C%stome"s !e"e comn& $o" the p%"pose o$ the" b%sness and the' !e"e n$o"med abo%t
the "%les and "e&%laton $o" mpo"tn& and e+po"tn&( Lette" o$ &%a"antees !e"e also
ss%ed b' the depa"tment(
Credit 1e(artmentC
At the C"edt Depa"tment, m' p"actcal lea"nn& !as e+cellent( At ths
depa"tment, the loans a"e to be dsb%"sed( 2o $o" ths p%"pose a complete nte"ve! !th
bo""o!e" s cond%cted and bo""o!e" s asked abo%t ts $nancal st"en&th then a CL6 s
made( Loan s dsb%"sed a$te" the complete st%d' o$ $nancal "epo"ts s%ch as balance
sheet and ncome statement( Makn& o$ nstallments, nte"est cha"&n& and calc%laton
and othe"s all !e"e p"actcall' pe"$o"med at the depa"tment(
49
:earning as an &nternee
M' nte"nshp e+pe"ence has &ven me a "ealstc p"eve! o$ m' $eld o$ ed%caton( No!
) $eel that ) am bette" p"epa"ed to ente" the !o"ld o$ p"o$essonal !o"k( ) have come to
kno! and been app"ecated b' a n%mbe" o$ p"o$essonals !ho a"e lendn& the" se"vces
to the bankn& secto" $o" mo"e than a decade( ) $eel hono"ed that ) have !o"ked !th s%ch
e+pe"enced p"o$essonals( ) m%st admt that s%ch nte"acton n ths "espectable
p"o$essonal comm%nt' !ll help me n seekn& o%t =ob oppo"t%ntes n the nea" $%t%"e(
Each task ) pe"$o"med !as a d$$e"ent e+pe"ence n tsel$( 1' the end o$ t, ) m%st sa' )
"eal7e m' potentals, ) have "eal7ed that ea"nn& mone' s not so eas' a$te" all, t takes a
lot o$ ha"d !o"k and devoton, and not to $o"&et tme( And ) no! kno! that $ ) !ant ) can
make thn&s possble, and ) also kno! ho! &ood t $eels to havn& accomplshed
somethn& and ben& app"ecated $o" t( ) de$ntel' have lea"nt thn&s, !hch !ll mpact
m' ca"ee" and m' cha"acte"(
The ove"all e+pe"ence o$ m' nte"nshp !as ve"' &oodB ) have lea"nt the sense o$
"esponsblt' n ts lte"al meann&( ) am no! capable o$ dealn& !th d$$e"ent so"t o$
c%stome"s, and ho! to be patent !hle don& so( 1esdes ths ) also &aned kno!led&e
abo%t bankn& !hch ) p"evo%sl' lacked and man' mo"e p"od%cts ben& o$$e"ed b' the
bank( 2o n a n%tshell, ths nte"nshp &ave me the e+pe"ence, !hch !o%ld no do%bt
boost m' con$dence to !o"k n $%t%"e(
40
Marketing Analysis
Ths s an a&e o$ competton( N%me"o%s o"&an7atons a"e p"ovdn& $nancal se"vces to
the c%stome"( These da's eve"'one s $acn& p"ess%"e o$ competto"s( )n ths !o"ld o$
&"o!n& competton, the onl' !a' to s%"vve and &"o!, $o" an o"&an7aton, n the
ma"ket place s the p"ope" ma"ketn& and p"omoton o$ ts p"od%cts( 2ame s the case !th
bankn& companes( The"e s la"&e n%mbe" o$ $o"e&n and local banks !o"kn& n the
co%nt"' and t has been notced that the' a"e emphas7n& m%ch on the" ma"ketn&
st"ate&es( )n ths scena"o, the ke' $o" a bank to s%cceed and att"act ts c%stome"s s
ade?%ate p"omoton o$ ts p"od%cts #se"vces( 1AAL $o" the p"omoton o$ ts ne! and
e+stn& p"od%cts nvest heavl', t adve"tses ts p"od%ct th"o%&hK

Elect"onc meda (e( televson
6"nt meda (e( ne!spape"
1llboa"ds
1%sness ma&a7nes
Webste
2ponso"shp
(lectronic
The ma=o" !a' n !hch toda'*s o"&an7atons p"omote ts p"od%cts and se"vces s
th"o%&h televson, not onl' beca%se t*s economcal b%t also beca%se the vs%al and a%do
ads help n p"omotn& ts p"od%ct(
Televson ads $o" 1ank Al$alah manl' t"' to emphass the <The Ca"n& 1ank*, messa&e
n ts adve"tsements, b' sho!n& ho! ts se"vces can help 'o% !th the d$$e"ent
$nancal p"oblems that 'o% $ace n 'o%" eve"' da' l$e( Ao" e+ample, an adve"tsement
sho!ed ho! 1ank Al$alah C"edt Ca"ds helped a co%ple !hen the' had no cash le$t
48
d%"n& a shoppn& t"p o" ho! a $athe" happl' sho!s hs $aml' a ne! ca" that he had
$nanced $"om 1ank Al$alah(
Anothe" ma=o" !a' n !hch 1ank Al$alah adve"tses ts p"od%cts elect"oncall' s
th"o%&h ts !ebste, !hch s des&ned n an e$$ectve manne" !th detaled n$o"maton,
so that vsto"s can e$$ectvel' kno! abo%t the d$$e"ent se"vces that the bank p"ovdes(
"rint
6"nt adve"tsements a"e anothe" ma=o" !a' n !hch 1ank Al$alah adve"tses ts p"od%ct
to the masses( 6"nt meda adve"tsements a"e manl' p"nted n ma=o" En&lsh and C"d%
ne!spape"s ac"oss 6akstan(
The messa&es o$ these adve"tsements a"e manl' o$ ne! $nancal se"vces that the bank
ma' nt"od%ce ove" tme(
+ponsorships
1ank Al$alah also &ves a s&n$cant consde"aton not onl' to ts p"od%ct p%blct' b%t
also to the c"eaton o$ p%blc "elatons( 1ank has p"oves ts p%blc &ood!ll b'
cont"b%tn& mone' and tme to p%blc se"vce and actvtes( 1ank Al$alah has been
sponso"n& d$$e"ent spo"tn& to%"nament, especall' c"cket !hch s the most pop%la"
spo"ts actvt' o$ 6akstans and s !atched b' mllons !heneve" the"e s a to%"nament
$eat%"n& the 6akstan c"cket team and s th%s a &"eat !a' to adve"tse the" p"od%cts(
2ome o$ the to%"naments that 1ank Al$alah has sponso"ed ove" the 'ea" a"e as $ollo!sK
2e"es 2ponso"ed 1' 1ank Al$alah
2e"es Rea"
6akstan Ns En&land 2::5
6akstan Ns West )ndes 2::.
6akstan N2 2o%th A$"ca 2::9
No! a da's, 1AAL s sponso"n& the c"cket "ankn&s %pdates on Ten 2po"ts(
5:
-o6 of (mployees 7889:788;
959
1504
2133
3352
5218
6543
7371
7584
0
2000
4000
6000
8000
2001 2002 2003 2004 2005 2006 2007 2008
-uman 5esour!e Assessment
1ank Al$alah Ltd( has !o"ked ha"d to b%ld ts h%man "eso%"ce team and ens%"e that the
?%alt' o$ ne!l' nd%cted sta$$ s not comp"sed !th &"o!th( Ao" "ec"%tment and
selecton bank<s polc' s to h"e s%table canddates( 1' s%table canddates bank "e$e"s
to canddates havn& p"ope" ed%catonal ?%al$caton, e+pe"ence and back&"o%nd(
1ank Al$alah not onl' s one o$ the $astest &"o!n& bank n 6akstan, that p"ovdes ts
c%stome"s !th a n%mbe" o$ $nancal se"vces, b%t s also a &"eat emplo'e" o$ h%man
"eso%"ces, that p"ovdes ts emplo'ees !th a cond%cve env"onment that not onl' s
challen&n& b%t also helps them n appl'n& and &ann& kno!led&e(
The above $&%"es sho! that all p"ospect emplo'ees $eel con$dence n 1ank Al$alah as
the" p"ospectve emplo'e"( 1ank Al$alah, as a "esponse to ths con$dence has th"ee !a's
o$ emplo'n& p"ospect emplo'ees $o" the" o"&an7aton(
Batch )rainees
1AL p"e$e"s to h"e canddates havn& M1A de&"ee $o" c"edts( Ao" "elatonshp o$$ce"s,
ed%caton ?%al$caton s not ve"' mpo"tant( The" $aml' back&"o%nd and
comm%ncaton sklls a"e mo"e mpo"tant( 1ank h"es $"esh M1As $"om p"est&o%s
51
Cnve"stes n batches o$ 2:/25 o$$ce"s( 1ank h"es o$$ce"s n "an&e 1( Then dependn&
%pon the" =ob pe"$o"mance the' a"e p"omoted to ne+t "an&e( Mo"e $acltes and
nc"ements a"e &ven alon& !th p"omoton( 1ank<s polc' s to &ve cash "e!a"ds and
sala"' nc"ements $o" nc"easn& the emplo'ees <sats$acton(
Direct Induction of 'resh Candidates
Th"o%&h d"ect nd%cton o$ $"esh canddates, 1ank Al$alah s able to emplo' $"esh
post&"ad%ate canddates $o" ts o"&an7aton and the p"ocess s "e&ste"n& one*s CN on
the" data base on the" !ebste, t a%tomatcall' becomes a pa"t o$ the" "eso%"ce pool that
allo!s them to match applcant*s sklls and competences !th the "&ht placement
optons(
Eve"' 'ea" 1ank Al$alah opens ts doo"s $o" abo%t 3: $"esh post/&"ad%ates to =on the
"anks o$ Mana&ement T"anee o$$ce"s* !th the 1ank( The MTO scheme s a h&hl'
compettve and so%&ht a$te" nd%cton scheme, n !hch sho"t/lsted applcants appea" n
a !"tten test $ollo!ed b' a panel nte"ve!( 2%ccess$%l canddates then "eceve
comp"ehensve t"ann& n essental a"eas o$ b"anch bankn& at the 1ank<s state/o$/the/a"t
t"ann& $aclt' at Ka"ach and Laho"e, p"o" to the" postn& at va"o%s b"anch locatons(
6"e$e""ed ed%catonal back&"o%nd $o" ent"' nto the MTO scheme ncl%des an M1A
de&"ee, MA Economcs o" M(Com $"om "ep%table 6akstan o" $o"e&n nstt%tons !th
G6A o$ 3 pl%s, o" e?%valent( 2t"on& pe"sonal cha"acte", as !ell as comm%ncaton and
nte"pe"sonal sklls a"e essental p"e/"e?%stes to s%cceed as an MTO(
(1perienced "rofessionals
1ased on "e?%"ements o$ e+pe"enced sta$$, 1ank Al$alah also "ec"%ts talent $"om the
ma"ketplace( 1ank Al$alah o$$e"s compettve sala"' L bene$ts to !o"th' p"o$essonals at
all levels !ho !sh to =on hands !th 1ank Al$alah(

)raining
1ank Al$alah*s mana&ement beleves n developn& the potental o$ the 1ank*s
emplo'ees to the $%llest e+tent( T"ann& # Development Cent"e o$ the 1ank a"e ho%sed
n state o$ the a"t $acltes at Ka"ach and Laho"e o$ p"ovde t"ann& to ts emplo'ees( )t
s obl&ato"' $o" each sta$$ membe" o$ the bank to attend at least t!o da's o$ t"ann& n a
calenda" 'ea", !th t"ann& p"o&"ams n the $ollo!n& a"easK
Cons%me" 1ankn& and Ope"atons
52
C"edt Ma"ketn& # 6"oposals
C"edt Admnst"atonLDoc%mentaton
Ma"ketn& and 2elln& 2klls
C%stome" 2e"vce 2klls
Leade"shp and Mana&ement 2kll
6e"sonal E$$ectveness and 2klls
A%"the"mo"e t"ann& p"o&"ams have also been nt"od%ced $o" $"esh ent"ants nto the bank,
to help them n lea"nn& and pe"$o"mn& the" ne! tasks(
Benefits pro/ided &y Bank !lfalah
2ome o$ the moneta"' and non moneta"' bene$ts that 1ank Al$alah p"ovdes to ts
emplo'ees a"e as $ollo!sK
Att"actve 2ala"' 6acka&e
Emplo'ee 6"ovdent A%nd
G"at%t' A%nd
Medcal )ns%"ance
1on%ses
L$e )ns%"ance
6"omotons
Na"o%s t'pes o$ 2ta$$ Loans
Assstance n 6%"s%n& ;&he" Ed%caton
Cash @e!a"ds on completn& )16 Dploma
53
S3,T Analysis
2WOT s stands $o" st"en&ths, !eaknesses, oppo"t%ntes and th"eats( 2WOT anal'ss s a
ca"e$%l eval%aton o$ an o"&an7aton*s nte"nal st"en&ths and !eaknesses as !ell as ts
env"onmental oppo"t%ntes and th"eats( )n 2WOT anal'ss the best st"ate&es accomplsh
an o"&an7aton*s msson b' e+plotn& an o"&an7aton*s oppo"t%ntes and st"en&ths
!hle ne%t"al7n& ts th"eats and avodn& ts !eakness( D%"n& m' nte"nshp ) also
obse"ve these $acto"s o$ bank and made a concl%son !hch s as $ollo!sK
+trengths:
Man st"en&ths o$ bank a"e desc"be $ollo!s d%e to !hch bank s becomn& s%ccess$%l
da' b' da' and no! s on the $$th la"&est and s%ccess$%l bank n 6akstan n the bank*s
"ankn& a$te" N16, MC1, C1L and ;1L(
1en& the p"vate o"&an7aton ts man am s not to ea"n p"o$t b%t also to sats$'
ts c%stome"s and slo&an o$ 1AL s also the "ep"esentatve o$ ths p%"pose as 1ank
Al$alah ,The Ca"n& 1ank-(
1ank has AA DDo%ble AE and A1I DA one pl%sE C"edt @atn& $o" lon& te"m and
sho"t te"m loans "espectvel'(
Man so%"ce o$ p"o$t $o" an' $nancal nstt%ton s p%blc savn& !hch onl'
comes $"om p%blc con$dence and 1AL s &ettn& ths con$dence !hch s one o$
the man st"en&ths o$ bank
1ank Al$alah s also &ettn& $ame n the ma"ket d%e to ts name ,ALAALA;-
!hch s leavn& the )slamc and $avo"able mpact on the mnds o$ p%blc(
54
1AL s p"ovdn& the $aclt' o$ Mone' G"am to ts ent"e people !ho a"e ts
c%stome" o" not and th"o%&h ths se"vce t has &ot the leade"shp n Mone' G"am
beca%se an' othe" bank s not o$$e"n& ths se"vce(
Wth n ve"' sho"t pe"od t has &ot a s%pe"b accomplshment !hch sho!s the
competenc' o$ top mana&ement(
6e"sonnel o$ Al$alah a"e !ell t"aned and h&hl' sklled(
1ank Al$alah has a !de net!o"k o$ b"anches at the deal locatons, cate"n& the
$nancal needs o$ ts clents(
The mana&ement o$ the bank s ve"' m%ch conce"ned !th the development and
mp"ovement o$ the !o"kn& env"onment( The bank has state o$ the a"t and
p%"pose b%lt b"anches !he"e all the mode"n technolo&es a"e p"ovded to &et the
e$$cenc' o$ the !o"k$o"ce and the c%stome" sats$acton(
%eaknesses:
1esde all these st"en&ths ) also noted some !eaknesses n the ope"atons o$ bank Al$alah
!hch a"e desc"bed belo!K
1AL s that t s not o$$e"n& the loan $aclt' to ne!l' establshed b%snesses
beca%se t*s the 1AL polc' that t !ll loan onl' to that people !ho a"e "%nnn&
the" b%snesses $"om 3 'ea"s(
1AL*s lendn& p"oced%"e s ?%te complcated that some people hestate to come
as the' a"e "e?%"n& a h%&e $le o$ doc%ments(
1ank Al$alah s not o$$e"n& an' c"edt $aclt' $o" st%dents(
1AL s not o$$e"n& the onlne $aclt' to acco%nt holde"s havn& photo acco%nt(
1ank Al$alah s cha"&n& onlne cha"&es $o" t"ans$e" o$ mone' b%t some othe"
banks not cha"&e onlne t"ans$e" cha"&es(
Ma=o"t' o$ the !o"k$o"ce conssts o$ 'o%n& p"o$essonal, the' lack n the"
e+pe"ence( And sometmes lack o$ e+pe"ence becomes a h%"dle !hle se"vn& to
the c%stome"s( )t s the pont !he"e the' $eel d$$c%lt' !hle competn& !th the
othe" banks(
55
)t !as obse"ved that at p"esent the motvaton level o$ the emplo'ees s not ve"'
m%ch(
The nc"eased !o"kload has "es%lted n the "ed%ced e$$cenc' o$ the emplo'ees(
1eca%se no! the tme "e?%"ed $o" completn& the tasks $o" a sn&le c%stome" has
been nc"eased( As a "es%lt the env"onment o$ the b"anch has become ve"' mess'(
(
Opportunities:
)t s mandato"' to t"' to make p"o&"ess !th consstenc' as !ell as to adopt chan&es !th
needs o$ tme, n o"de" to cope %p !th both condtons(
1ank Al$alah s sp"eadn& ts net!o"k o%tsde the bo%nda"es o$ 6akstan and t
has mo"e oppo"t%ntes to e+tend ths net!o"k as 2tate 1ank o$ 6akstan has
p"esc"bed ne! polces n the p"%dental "e&%latons(
)n addton to e+cellent "o%tne bankn&, t has ea"ned a &ood name b' o$$e"n&
specal p"od%cts lke ca", home and c"edt ca"ds $aclt'( 2o the penet"aton o$
these p"od%cts co%ld enhance ma"ket sha"es(
The"e s a ve"' &ood &"o!th t"end n the )slamc bankn& n the co%nt"' and n the
!o"ld as !ell( 1AL has the advanta&e o$ havn& )slamc 1ankn& net!o"k and the
&"o!th n ths pa"tc%la" $eld can be ve"' $"%t$%l $o" the bank, bank has an
oppo"t%nt' to nt"od%ce ne! p"od%cts and se"vces n )slamc bankn&(
)hreats:
Th"eats a"e the ne&atve t"ends n e+te"nal env"onmental $acto"s( As on one sde
env"onment p"ovdes oppo"t%ntes to one o"&an7aton, on the othe" hand t also has to
$ace some th"eats( 1ank Al$alah also has to $ace ths st%aton(
5.
Othe" $o"e&n $nancal nstt%tons lke Ct' 1ank, ;21C etc also havn& st"on&
bankn& polces and the"e*s a chance that people m&ht move to!a"d these
$nancal nstt%tons to sec%"e the" nvestments, t"ansactons and "elated se"vces(
Ao" last seven 'ea" the"e s poltcal stablt' n 6akstan b%t no! a&an a ne!
la'e" o$ poltcal nstablt' a"ses !hch e$$ects almost all nd%st"es ncl%dn&
1anks(
D%e to economc nstablt' lke c%""enc' dep"ecaton and n$laton, the bank s
constantl' $acn& a th"eat e(&( n case o$ n$laton the people have lo! dsposal
ncome !hch means lo!e" deposts n banks(
Othe" nvestment oppo"t%ntes lke nvestment n p"ope"t' and &old a"e &vn&
people mo"e "et%"n as compa"e to banksB t can dec"ease the deposts o$ bank(
PEST Analysis
A b"oad ve! o$ ma"ket s mpo"tant !hen mana&ement s nte"ested n nt"od%cn& bette"
se"vces $o" c%stome"s( @apd technolo&cal chan&e, &lobal competton and the dve"st'
o$ b%'e"s p"e$e"ences n man' ma"kets "e?%"e the constant attenton o$ the ma"ket
vo%che"s to dent$' p"omses b%sness oppo"t%ntes, see the sh$tn& "e?%"ements o$ the
b%'e"s, eval%ate chan&es n competto"s postonn& and &%de the choce o$ !hch b%'e"s
to ta"&et and class$' them acco"dn& to "espectve se&ments(
)dent$caton o$ e+te"nal and mac"o $acto"s that n$l%ence b%'e"s and th%s chan&e the s7e
and composton o$ ma"ket ove"tme nvolves ntall' b%ldn& c%stome" p"o$les( These
n$l%ences ncl%deK
6oltcal env"onment
Economc )ndcato"s
2oco c%lt%"al env"onment
Technolo&cal $acto"s
"olitical (n/ironment
The events n the last co%ple o$ 'ea"sB eve" snce the sackn& o$ Che$ G%stce )$tkha"
Cho%dha"', 6akstan has $aced c"ss a$te" c"ss, ncl%dn& the la!'e"s* movement,
59
volence n Ka"ach, the Lal Mas=d debacle, mltanc' n AATA and NWA6 and ts
mpact on othe" pa"ts o$ the co%nt"', the "et%"n o$ 1ena7" 1h%tto and he" s%bse?%ent
assassnaton, and c%""ent on&on& mlta"' ope"aton n 2!atJ all the above events
nd%btabl' made a h%&e mpact on the econom'(
2tablt' and la! and o"de" st%aton %nde" the poltcal "e&me s ve"' mpo"tant $o" the
econom' as a !hole( The p"esent state o$ the &ove"nment n 6akstan s d"ectl' a$$ectn&
the polces o$ banks( Contn%o%s poltcal chan&es have ds"%pted the polces and
ob=ectves as each "e&me b"n&s !th t ts o!n a&enda( O"&an7atons need tme to
ad=%st to one "e&me and then !o"k !th t to!a"ds economc enhancement( D%e the
!"on& polces o$ the &ove"nment, the talban7aton also develop n 6akstan and become
the nte"natonal ss%e n 6akstan and badl' a$$ected the 6akstan "ep%te n the !o"ld and
p"omote the %nce"tan condtons $o" the b%sness n the 6akstan( D%e to ths the
nvesto"s a"e not nte"ested n the 6akstan(
(conomic Indicators
The econom' o$ an' co%nt"' d"ectl' n$l%ences an' $nancal o"&an7aton( Economc
ndcato"s ncl%de G"oss Domestc 6"od%ct DGD6E, n$laton, balance o$ pa'ment, debt o$
the &ove"nment(
6akstan*s econom' has !tnessed the most challen&n& pe"od a$te" postn& s+
consec%tve 'ea"s o$ health' economc &"o!th( ;o!eve", the st"on& $%ndamentals !e"e
comp"omsed to p"evaln& &lobal c"ses that*s shacked the con$dence o$ &lobal nvesto"s
and AD) $lo!n& n the co%nt"'( The steep "se n ol p"ces to CS 149 a ba""el, soa"n&
n$laton httn& a 24> ma"k, h%&e $scal de$cts and balance o$ pa'ments ss%es co%pled
!th pl%mmetn& $o"e+ "ese"ves added to the econom'*s move to an %nstable &"o!th
t"a=ecto"'(
Also the load shadn& s anothe" $acto" that a$$ects the 6akstan econom' badl'( Ths not
the end o$ the sto"' a$te" ths 6akstan* econom' $ace lot o$ p"oblems lke bomb attacks n
6akstan no elect"ct' and the %nstable &ove"nment, d%e to ths the nvesto" a"e not nvest
n the 6akstan and the e+stn& b%sness men a"e loosn& the" b%sness %nt d%e to the
loss(
D%e to ths poo" econom', b%snesses a"e "eapn& lo! p"o$ts and stock ma"ket s n &"eat
dan&e"( 6akstan*s $o"e&n debts a"e "sn& da' b' da' so s%ch a st%aton s a b&
challen&e $o" bankn& nstt%ton to s%"vve( The $nancal c"ss n 6akstan has made the
mana&ement o$ 1AAL tensed to !o"k n s%ch an env"onment(
50
+ocio cultural en/ironment
A lo! savn& c%lt%"e has o$$set the h%&e pop%laton advanta&e ths s en=o'ed b'
6akstan( Also c%lt%"e s dedcated b' the "el&on, and n 6akstan a s&n$cant se&ment
o$ the pop%laton s "el%ctant to accept nte"est $o" the" deposts d%e to the ne&atve
"el&o%s mplcatons o$ s%ch an act( Abo%t 9:> o$ 6akstan*s pop%laton s based on
"%"al a"eas and lte"ac' "ate o$ the co%nt"' s ve"' m%ch lo!, th%s makn& t ha"de" $o"
banks to mobl7e the" deposts !thn these "e&ons(
;o!eve", n toda' !o"ld, the c%stome"s a"e becomn& mo"e ntell&ent and th"o%&h
meda the' keep themselves %p to date( Th%s, the l$est'le and e+pectatons o$ the
c%stome"s $"om the se"vce p"ovde" s nc"easn& da' b' da'(
)echnological 'actors
1anks n the developed !o"ld have been t%"nn& to heav' )T nvestments, !hch
d$$e"entate the" p"od%cts, p"ovde "esponse tmes, enhance accessblt' and mp"ove
c%stome" sats$acton( Tho%&h nvestn& n state/o$/the/a"t host bankn& sol%ton, ATM
and 6O2 Dpont o$ saleE net!o"ks, vsa, Maste"Ca"d, and, sma"t ca"ds, telebankn&,
nte"net bankn& and no! moble bankn& a"e common )T nvestment n the developed
!o"ld, t s no! that these p"od%cts and se"vces a"e &ann& $aste" acceptance n 6akstan(
)n 1AAL technolo&' has &"eat e$$ect on the !o"kn& env"onment( 1AAL s al!a's
!lln& to nt"od%ce ne! comp%te" s'stems $o" keepn& ts sta$$ %p to date( Wth the
s%ccess$%l mplementaton o$ ne! cent"al7ed database s'stem, the bank also acheved
"ema"kable p"o&"ess n b%sness p"ocess "e/en&nee"n&, t%"na"o%nd tme complance b'
cent"al7n& o%t!a"d "emttances, acco%nt openn& and c"edt admnst"aton(
58
9inan!ial Analysis
Horizontal &Vertical !nalysis
Balan!e Sheet of Bank Alfalah :imited
.:
&n!ome Statement of Bank Alfalah :imited
.1
2004 2005 2006 2007 2008
!ssets
Cash and balances !th
t"eas%"' banks 19,708,518 24,788,625 27,859,360 29,436,378 32,687,335
1alances !th othe" banks 3,183,957 9,713,369 12,731,952 18,380,738 21,581,043
Lendn& to $nancal
nstt%tons
-
27,050,493 12,456,653 3,452,059 3,315,500
)nvestments 35,503,196 57,425,700 56,502,210 88,491,564 75,973,238
Advances 88,931,400 118,864,010 149,999,325 171,198,992 192,671,169
Othe" assets 3,226,959 3,851,529 5,633,051 6,013,097 8,989,186
Ope"atn& $+ed assets 4,280,504 6,620,067 10,502,990 11,922,324 13,773,293
De$e""ed ta+ asset
T,TA: ASSETS 9<=>;?=><?= 7=;>?9?>@A? 7@<>B;<><=9 ?7;>;A<>9<7 ?=;>AA8>@B=
:&AB&:&T&ES * EDB&TG
1lls pa'able 2,233,671 3,733,124 3,091,135 4,138,243 3,452,031
1o""o!n&s $"om $nancal
nstt%tons 12,723,830 5,844,389 8,394,130 21,230,697 13,690,222
Deposts and othe"
acco%nts 129,714,891 222,345,067 239,509,391 273,173,841 300,732,858
2%bo"dnated loans 1,899,480 3,223,355 3,222,106 3,220,858 2,571,169
Labltes a&anst assets
s%b=ect to $nance lease
- - - - -
Othe" labltes 2,725,344 5,219,666 7,305,496 9,531,860 11,291,280
De$e""ed ta+ labltes 275,834 484,066 1,921,338 1,379,809 208,465
T,TA: :&AB&:&T&ES 149,573,050 240,849,667 263,443,596 312,675,308 331,946,025
@E6@E2ENTED 1R
2ha"e captal 2,500,000 3,000,000 5,000,000 6,500,000 7,995,000
@ese"ves 1,008,772 2,351,218 2,749,533 2,414,833 3,166,056
Cnapp"op"ated p"o$t 860,300 1,386,845 2,823,072 4,851,840 3,447,467
2%"pl%s on "eval%aton o$
assets 892,412 726,063 1,669,340 2,453,171 2,436,216
Total EDB&TG 5,261,484 7,464,126 12,241,945 16,219,844 17,044,739
Total :iabilities and
Equity 9<=>;?=><?= 7=;>?9?>@A? 7@<>B;<><=9 ?7;>;A<>9<7 ?=;>AA8>@B=
-orizontal Analysis of Balan!e Sheet
.2
2004 2005 2006 2007 2008
Ma"k/%pL"et%"nLnte"est ea"ned 5,620,203 12,246,811 21,191,470 25,783,871 31,046,583
N,N MA5=;BP E&NTE5EST &NC,ME
Aee, Commsson and
b"oke"a&e ncome 675,868 1,158,747 1,804,998 2,429,599 2,539,321
Dvdend ncome 52,539 52,014 37,393 64,722 300,943
)ncome $"om dealn& n
Ao"e&n c%""enc' 218,820 290,091 386,997 474,510 914,845
Gan on sale o$ sec%"tes - - 180,751 2,053,192 424,220
Cn"eal7ed DlossE L&an on
"eval%aton o$ )nvestments - - (27,599) (14,929) (181,571)
Othe" ncome 572,822 744,518 842,099 1,031,372 1,247,669
Total Non ma"k/%pL )nte"est
ncome 1,520,049 2,245,370 3,224,639 6,038,466 5,245,427
T,TA: &NC,ME @>9=8>7<7 9=>=A7>9;9 7=>=9B>98A ?9>;77>??@ ?B>7A7>898
EHPENSES
Ma"k/%pL"et%"nLnte"est ea"ned
e+pensed 2,434,459 7,204,992 15,232,886 16,620,963 20,331,194
6"ovson a&anst non/
pe"$o"mn& loans and
advances/net 370,208 402,298 697,690 2,370,867 2,035,997
6"ovson $o" the dmn%ton n
the val%e o$ nvestments 2,165 (23,163) - - 1,479,062
1ad debts !"tten o$$ d"ectl' 351 512 1,537 5,844 28,298
N,N MA5=;BPE &NTE5EST EHPENSES
Admnst"atve e+penses 2,677,635 4,313,023 5,874,745 8,272,587 10,471,399
Othe" 6"ovsonsLW"te O$$s - 10,125 - 6,959 28,582
Othe" cha"&es 1,700 21,104 43,306 9,565 122,758
Total non mark;u(E &nterest
e(enses 7>B@A>??< =>?==>7<7 <>A9;>8<9 ;>7;A>999 98>B77>@?A
E+t"ao"dna"' L Cn%s%al tems
61T 1,653,734 2,563,290 2,565,945 4,535,552 1,794,720
Ta+aton
/C%""ent 586,159 592,635 476,226 1,726,810 1,730,051
/6"o" 'ea"s (20,751) 1,037 (100,874) - (221,797)
/De$e""ed (3,663) 267,524 427,902 -321,487 (1,014,835)
T,TA: EHPENSES B>8=;>7B? 97>@A8>8;@ 77>B<?>=9; 7;>BA7>98; ?=>AA8>@8A
6AT 1,091,989 1,702,094 1,762,691 3,130,229 1,301,301
2004 2005 2006 2007 2008
!ssets
Cash and balances !th t"eas%"' banks 100.00 125.78 141.36 149.36 165.85
1alances !th othe" banks 100.00 305.07 399.88 577.29 677.81
Lendn& to $nancal nstt%tons - 100.00 46.05 12.76 12.26
)nvestments 100.00 161.75 159.15 249.25 213.99
Advances 100.00 133.66 168.67 192.51 216.65
Othe" assets 100.00 119.35 174.56 186.34 278.57
Ope"atn& $+ed assets 100.00 154.66 245.37 278.53 321.77
De$e""ed ta+ asset - - - - -
T,TA: ASSETS 988688 9B86?@ 9@;68< 7976=7 77<6=8
:&AB&:&T&ES * EDB&TG
1lls pa'able 100.00 167.13 138.39 185.27 154.55
1o""o!n&s $"om $nancal nstt%tons 100.00 45.93 65.97 166.86 107.60
Deposts and othe" acco%nts 100.00 171.41 184.64 210.60 231.84
2%bo"dnated loans 100.00 169.70 169.63 169.57 135.36
Labltes a&anst assets s%b=ect to
$nance lease
- - - - -
Othe" labltes 100.00 191.52 268.06 349.75 414.31
De$e""ed ta+ labltes 100.00 175.49 696.56 500.23 75.58
T,TA: :&AB&:&T&ES 100.00 161.02 176.13 209.05 221.93
5EP5ESENTE1 BG
2ha"e captal 100.00 120.00 200.00 260.00 319.80
@ese"ves 100.00 233.08 272.56 239.38 313.85
Cnapp"op"ated p"o$t 100.00 161.20 328.15 563.97 400.73
2%"pl%s on "eval%aton o$ assets 100.00 81.36 187.06 274.89 272.99
Total EDB&TG 100.00 141.86 232.67 308.28 323.95
Total :iabilities and Equity 988688 9B86?@ 9@;68< 7976=7 77<6=8
Comments on -orizontal Analysis of Balan!e Sheet
AssetsC
.3

The assets o$ the 1AAL have been &"o!n& ve"' $ast snce ts ncepton( Ths &"o!th s
the "es%lt o$ the massve e+panson polc' the mana&ement has been $ollo!n& eve" snce
the ncepton o$ 1AAL(
One o$ the mpo"tant n&"edents o$ an' comme"cal bank<s &"o!th s nc"ease n most o$
c%""ent assets that s a &ood s&n as t nc"eases the" l?%dt'( Let %s $"st have a look at
the l?%d assets(
)n ea"nn& asset, the lendn& to $nancal nstt%tons s dec"easn& !he"eas the othe"
nvestments and advances contn%o%sl'( ;o!eve" the nvestments have nc"eased n 2::0
!th dec"easn& "ate( )nc"ease n the $+ assets m&ht be d%e to b"anch e+panson(
:iabilitiesC
As "e&a"ds the lablt' secton o$ the balance sheet che$ lablt' o$ comme"cal bank s
ts deposts t &ene"ates $"om ts c%stome"( The "ato o$ nc"ease n deposts n 2::0 s
21(24> !hch s lo! as compa"e to nc"ease n 2::9 !hch s 25(8.>, t s concl%ded
that the deposts a"e nc"easn& b%t at dec"easn& "ate( ( The othe" enco%"a&n& "ato !e
obse"ve n lablt' secton s bo""o!n& $"om $nancal nstt%ton !hch sho!s
dec"easn& n 2::5 and 2::. b%t t sho!s an nc"ease 2::9 and 2::0 !hch p"oves
$nancal st"en&th and ts c"edt !o"thness n the mone' ma"ket(
EquityC
1ank<s 2ha"e Captal as !ell as %napp"op"ate p"o$ts s nc"easn& at nc"easn& "ate tll
2::9 b%t n 2::0 the captal sha"e dec"eased sl&htl' b' :(2> and %napp"op"ate p"o$ts
b' 1.3>(
)erti!al Analysis of Balan!e Sheet
2004 2005 2006 2007 2008
.4
!ssets
Cash and balances !th t"eas%"' banks 12.73 9.98 10.11 8.95 9.37
1alances !th othe" banks 2.06 3.91 4.62 5.59 6.18
Lendn& to $nancal nstt%tons -
10.89 4.52 1.05 0.95
)nvestments 22.93 23.13 20.50 26.91 21.77
Advances 57.44 47.87 54.41 52.05 55.21
Othe" assets 2.08 1.55 2.04 1.83 2.58
Ope"atn& $+ed assets 2.76 2.67 3.81 3.62 3.95
De$e""ed ta+ asset - - - - -
T,TA: ASSETS 988688 988688 988688 988688 988688
:&AB&:&T&ES * EDB&TG
1lls pa'able 1.44 1.50 1.12 1.26 0.99
1o""o!n&s $"om $nancal nstt%tons 8.22 2.35 3.04 6.46 3.92
Deposts and othe" acco%nts 83.78 89.54 86.88 83.06 86.17
2%bo"dnated loans 1.23 1.30 1.17 0.98 0.74
Labltes a&anst assets s%b=ect to
$nance lease
- - - - -
Othe" labltes 1.76 2.10 2.65 2.90 3.24
De$e""ed ta+ labltes 0.18 0.19 0.70 0.42 0.06
T,TA: :&AB&:&T&ES 96.60 96.99 95.56 95.07 95.12
5EP5ESENTE1 BG
2ha"e captal 1.61 1.21 1.81 1.98 2.29
@ese"ves 0.65 0.95 1.00 0.73 0.91
Cnapp"op"ated p"o$t 0.56 0.56 1.02 1.48 0.99
2%"pl%s on "eval%aton o$ assets 0.58 0.29 0.61 0.75 0.70
Total EDB&TG 3.40 3.01 4.44 4.93 4.88
Total :iabilities and Equity 988688 988688 988688 988688 988688
Comments on )erti!al Analysis of Balan!e SheetC
.5
A$te" anal'7n& the 1alance 2heet, !e can see that balances !th othe" banks a"e
nc"eased n pe"centa&e $"om 5(58 to .(10 as !ell as the cash balance !th the bank s
also nc"eased 0(85 to 8(39 that s a &ood s&n $o" mana&ement( Lendn& to Anancal
)nstt%tons s contn%o%sl' dec"easn& $"om 1:(08 n 2::5 to :(85 n 2::0( The"e s a
dec"ease n pe"centa&e o$ lendn& to $nancal nstt%tons s not a &ood s&n(
On lablt' sde, bo""o!n&s $"om $nancal nstt%tons a"e also dec"eased that s ve"'
postve s&n as $a" as banks $nancal health s conce"ned( 1o""o!n&s a"e dec"eased b'
.(4.> n 2::9 to 3(82> n 2::0( Mo"e ove" the"e s an nc"ease n deposts $"om 'ea"
2::9 to 2::0 !hch sho!s the $ath and t"%st o$ people on 1AL( Deposts a"e nc"eased
$"om 03(:.> n 2::9 to 0.(19> n 2::0(
-orizontal Analysis of &n!ome Statement
..
Comments on -orizontal Analysis of &n!ome StatementC
.9
2004 2005 2006 2007 2008
Ma"k/%pL"et%"nLnte"est ea"ned 100.00 217.91 377.06 458.77 552.41
N,N MA5=;BP E&NTE5EST &NC,ME
Aee, Commsson and b"oke"a&e
ncome 100.00 171.45 267.06 359.48 375.71
Dvdend ncome 100.00 99.00 71.17 123.19 572.80
)ncome $"om dealn& n Ao"e&n
c%""enc' 100.00 132.57 176.86 216.85 418.08
Gan on sale o$ sec%"tes - -
100.00 1,135.92 234.70
Cn"eal7ed DlossE L&an on
"eval%aton o$ )nvestments
- -
100.00 54.09 657.89
Othe" ncome 100.00 129.97 147.01 180.05 217.81
Total Non ma"k/%pL )nte"est ncome 100.00 147.72 212.14 397.25 345.08
T,TA: &NC,ME 988688 7876AB ?=96A< ==<6B; <8;67@
EHPENSES
Ma"k/%pL"et%"nLnte"est ea"ned
e+pensed 100.00 295.96 625.72 682.74 835.14
6"ovson a&anst non/pe"$o"mn&
loans and advances/net 100.00 108.67 188.46 640.41 549.96
6"ovson $o" the dmn%ton n the
val%e o$ nvestments 100.00 (1,069.88)
- -
68,316.95
1ad debts !"tten o$$ d"ectl' 100.00 145.87 437.89 1,664.96 8,062.11
N,N MA5=;BPE &NTE5EST EHPENSES
Admnst"atve e+penses 100.00 161.08 219.40 308.95 391.07
Othe" 6"ovsonsLW"te O$$s -
100.00
-
0.69 282.29
Othe" cha"&es 100.00 1,241.41 2,547.41 562.65 7,221.06
Total non mark;u(E &nterest
e(enses 988688 9B769= 7786;; ?8A6?@ ?AB6=@
E+t"ao"dna"' L Cn%s%al tems
61T 100.00 155.00 155.16 274.26 108.53
Ta+aton
/C%""ent 100.00 101.10 81.25 294.60 295.15
/6"o" 'ea"s 100.00 (5.00) 486.12 0.00 1,068.85
/De$e""ed 100.00 (7,303.41) (11,681.74) 8,776.60 27,705.02
T,TA: EHPENSES 988688 7996=@ ?@=6<= =@=6?A <@;6<7
6AT 100.00 155.87 161.42 286.65 119.17
&n!omeC
The ncome o$ the 1AL sho!s the nc"easn& t"end tll 2::9 b%t n 2::0 ts ove" all
ncome has dec"eased b' 1.9(40> as compa"e to 2::9 manl' beca%se o$ the pe"cevn&
!o"ld economc c"ss and also b' the 6akstan*s econom' c"ss( D%e to nc"easn&
p"ovsons, the p"o$blt' o$ the bank dec"eases a lot(
E(enseC
The e+penses o$ the bank a"e nc"easn& as ope"atons o$ the bank nc"eases( The
e+penses have been nc"easn& !th an nc"easn& "ate snce last th"ee 'ea"s( The
e+penses nc"eased 1:4>n 2::0 as compa"ed to 1::> nc"ease n 2::9(

)erti!al Analysis of &n!ome Statement
2004 2005 2006 2007 2008
Ma"k/%pL"et%"nLnte"est ea"ned 78.71 84.51 86.79 81.02 85.55
N,N MA5=;BP E&NTE5EST &NC,ME
Aee, Commsson and b"oke"a&e 9.47 8.00 7.39 7.63 7.00
.0
ncome
Dvdend ncome 0.74 0.36 0.15 0.20 0.83
)ncome $"om dealn& n Ao"e&n
c%""enc' 3.06 2.00 1.59 1.49 2.52
Gan on sale o$ sec%"tes 0.00 0.00 0.74 6.45 1.17
Cn"eal7ed DlossE L&an on
"eval%aton o$ )nvestments
- -
(0.11) (0.05) (0.50)
Othe" ncome 8.02 5.14 3.45 3.24 3.44
Total Non ma"k/%pL )nte"est
ncome 21.29 15.49 13.21 18.98 14.45
T,TA: &NC,ME 988688 988688 988688 988688 988688
EHPENSES
Ma"k/%pL"et%"nLnte"est ea"ned
e+pensed 34.09 49.72 62.39 52.23 56.02
6"ovson a&anst non/pe"$o"mn&
loans and advances/net 5.18 2.78 2.86 7.45 5.61
6"ovson $o" the dmn%ton n the
val%e o$ nvestments 0.03 -0.16
- -
4.08
1ad debts !"tten o$$ d"ectl' 0.00 0.00 0.01 0.02 0.08
N,N MA5=;BPE &NTE5EST EHPENSES
Admnst"atve e+penses 37.50 29.76 24.06 26.00 28.85
Othe" 6"ovsonsLW"te O$$s -
0.07
-
0.02 0.08
Othe" cha"&es 0.02 0.15 0.18 0.03 0.34
Total non mark;u(E &nterest
e(enses ?@6<7 7A6A; 7=67= 7B68< 7A67@
E+t"ao"dna"' L Cn%s%al tems
61T 23.16 17.69 10.51 14.25 4.95
Ta+aton
/C%""ent 8.21 4.09 1.95 5.43 4.77
/6"o" 'ea"s (0.29) 0.01 (0.41) 0.00 (0.61)
/De$e""ed (0.05) 1.85 1.75 (1.01) (2.80)
T,TA: EHPENSES ;=6@9 ;;67B A76@; A869B AB6=9
6AT 15.29 11.74 7.22 9.84 3.59
Comments on )erti!al Analysis of &n!ome StatementC
The ve"tcal anal'ss o$ ncome sde o$ ncome statement demonst"ate that ma=o" $acto" o$
the total ncome s nte"est ea"ned !hch cont"b%tes mo"e than 95> n 2::4 and 0:> n
2::5 to 2::0, !he"eas $ee, commsson and b"oke"a&e ncome makes ma=o" pa"t o$ total
non/ma"k %p nte"est ncome and ts p"opo"ton to total non/ma"k %p nte"estLncome s
dec"easn& eve"' 'ea" b%t n 2::. t nc"eased lttle, he"e !e obse"ve that total non ma"k
.8
%p ncome s dec"eased n 2::0, !hch s &ood s&n $o" the bank as bank s ea"nn& mo"e
$"om ts p"ma"' $%nctons(
Non/ ma"k %p nte"est e+pensed s the ma=o" component o$ total e+pense n 2::4, and n
non ma"k %p e+pense admn e+penses cont"b%te 44(29>( 1%t $"om 2::5 tll 2::.,
nte"est e+pensed n the ma=o" pa"t beca%se the deposts o$ the banks sho!s nc"ease and
as bank has to pa' on nte"est bea"n& labltes(
#!)IO !-!*C+(+
@ato smpl' means one n%mbe" e+p"essed n te"ms o$ anothe"( A "ato s a statstcal
'a"dstck b' means o$ !hch "elatonshp bet!een t!o o" va"o%s $&%"es can be
compa"ed o" meas%"ed( )t s de$ned as a s'stematc %se o$ "aton to nte"p"et the $nancal
statements so that the st"en&ths and !eaknesses o$ a $"m, as !ell as hsto"cal
pe"$o"mance and c%""ent $nancal condton, can be dete"mned(
9:
Profibility 5atios
1AAL s $ollo!n& the t"end o$ nd%st"' n te"ms o$ declnn& p"o$ts d%e to "sn&
p"ovsons(
The ma"k/%p nc"eased b' 2:(4>, !hle the ma"k/%p e+pense nc"eased b' 22(3>,
lmtn& the net ma"k/%p &"o!th to 19> to @s 1:,915 mllon( 6"ovsons sho!ed a
consde"able nc"ease and a
ne! p"ovson $o" dmn%ton
n val%e o$ nvestments s
ncl%ded n 2::0 !hch val%ed
@s( 1,498 mllon( The bad
debts d"ectl' !"tten o$$
nc"eased b' 4(0 tmes n 2::0
compa"ed to last 'ea" and
val%ed @s( 20 mllon(
The non/ma"k/%p nte"est
ncome declnes sl&htl', th%s
cont"b%tn& ns&n$cantl'
to!a"ds c"eatn& a va"ance n
the t!o 'ea"s( Admnst"atve
e+penses s!elled b' 2.(.> d%e
to the e+panson n b"anch
net!o"k d%"n& AR:0, nlne
!th the n$latona"' p"ess%"es(
6AT !as @s 13:1 mllon n
AR:0 as compa"ed to @s 313:
mllon n AR:9 !hch s do!n
b' 50(4>(
,eturn on A-era!e .otal
Assets/ 0Net *ro$it a$ter .a1 2 A-!. .otal Assets34566
91
2::4 2005 2006 2007 2008
ROA 0.86 0.84 0.67 1.04 0.38
ROE
2.(0
8
3:(.
5
2:(3
9
25(9
2 8(19
Net profit
margi
18(1
4
13(0
8 0(31
12(1
4 4(18
!ro""
"prea# ratio
5.(8
.
41(1
9
20(1
2
35(5
4 34(51
0
0.2
0.4
0.6
0.8
1
1.2
2004 2005 2006 2007 2008
ROA
0
10
20
30
40
50
60
2004 2005 2006 2007 2008
ROE Net profit margi !ro"" "prea# ratio
@et%"n on assets D@OAE meas%"es the $"m*s ove"all e$$ectveness n &ene"atn& p"o$ts
!th ts avalable assets( Ths "ato ndcates ho! !ell mana&ement s %tl7n& $"m*s
assets to make p"o$t( @OA sho!s dec"easn& t"end n sta"ts b%t t nc"eased n 2::9 and
"eaches 1(:4> to ts peak and no! t dec"eases d"astcall' and "eaches :(30>(
,eturn on E"uity 0,OE3 / 0Net *ro$it a$ter .a1 2 Shareholder7s E"uity34566
@OE meas%"es the sha"eholde"*s "et%"n ea"ned on the" nvestment n the $"m( Ths "ato
ndcates ho! p"o$table a compan' s b' compa"n& ts net ncome to ts ave"a&e
sha"eholde"*s e?%t'( @OE !as at ma+m%m 3:(.5> n AR:5 b%t n 2::0 t "eaches to
lo!est 8(19> $"om 25(92> o$ AR:9(
Net *ro$it Mar!in / 0Net *ro$it a$ter .a1 2 0Sales334566
Net p"o$t ma"&n meas%"es the pe"centa&e o$ sales "even%e "emann& a$te" all cost and
e+penses, ncl%dn& nte"est and ta+es have been ded%cted( The net p"o$t ma"&n has also
dec"eased to consde"able lo! level o$ 4(18> $"om p"evo%s 'ea"*s 12(14>(
8ross S%read ,atio / Net Mark u% In'ome 2 8ross Mark u% In'ome
G"oss sp"ead "ato meas%"es the pe"centa&e o$ sales "even%e ea"ned to the &"oss ma"k %p
a$te" ded%ctn& the ma"k%p e+pense( G"oss sp"ead "ato has dec"eased sl&htl' compa"ed
to 2::9 and t !as lo!est 20(12> n 2::.(
1ebt Management 5atios
)ebt ,atio / .otal 9iabilities 2 .otal Assets
92
2::4 2005 2006 2007 2008
Debt to e?%t'
20(4
3
32(2
9
21(5
2
18(2
0 18(49
Debt @ato :(89 :(89 :(8. :(85 :(85
Depost tmes
captal
24(.
5
28(9
8
18(5
.
1.(0
4 19(.4
Debt "atos tell %s abo%t the
$"m*s ove"all debt poston
and as !ell as t m+es o$
e?%t' and debt( These
"atos !ll also &ve &ene"al
dea abo%t the level o$
$nancal "sk $aced b' $"m(
Ths "ato meas%"es the
po"ton o$ total assets
$nanced b' the $"m*s
c"edto"s( ;&he" ths "ato,
the &"eate" the amo%nt o$ othe" people*s mone' ben& %sed n an attempt to &ene"ate
p"o$ts( Even tho%&h debt "ato s n dec"easn& t"end b%t ths "ato s ve"' h&h( ;&he"
ths "ato means h&he" the $nancal "sk so t*s a ne&atve s&n $o" bank(
Debt to e?%t' compa"es the debt s7e as compa"ed to e?%t'( The Debt to e?%t' s lo!est
n AR:9 and t has nc"eased sl&htl' n 2::0(
;o!eve" the deposts make
the 8:(5> o$ the total debt(
The "ato o$ depost tme
captal sho!s the depost
s7e as compa"e to the
nvested captal(
The debt mana&ement
$&%"es sho! that the assets
o$ the bank have become
less leve"a&ed tll 2::9(
Ths !as d%e to the $act that the debt has nc"eased b%t e?%t' has nc"eased b' a &"eate"
pe"centa&e n "ecent 'ea"s( 1%t t nc"eased sl&htl' n 2::0( E?%t' nc"eased b' 5>n
AR:0( ;o!eve", labltes "ose b' .(1>(
:iquidity 5atios
93
2::4 2005 2006 2007 2008
Ea"nn& assets
to assets :(0: :(02 :(98 :(0: :(99
Advance to
depost
.0(5
.
53(4
.
.2(.
3
.2(.
9 .4(:9
0
10
20
30
40
2004 2005 2006 2007 2008
$e%t to e&'it( $epo"it time" )apita*
0.94
0.95
0.96
0.97
2004 2005 2006 2007 2008
$e%t Ratio

0.74
0.76
0.78
0.8
0.82
0.84
2004 2005 2006 2007 2008
Earig a""et" to a""et"

0
20
40
60
80
2004 2005 2006 2007 2008
A#+a)e to #epo"it

0.8
0.9
1
1.1
2004 2005 2006 2007 2008
Earig a""et" to #epo"it"
The advance to depost
"ato DAD@) "ato s bank*s
$nancal "ato !hch s %sed
to test the compan'
$nancal poston b'
keepn& n ve! ts
advances and deposts(
2t"en&th o$ bank s =%d&ed
that ho! m%ch bank s
capable to &"asp the savn&
o$ people and ho! man'
people a"e nte"estn& to
take loan $aclt' $"om bank
as p"o$t o$ bank depends on
h&he" advances and
advances comes $"om
deposts o$ c%stome"s(
The $&%"es $o" AR:0 sho!
that the bank has $%"the"
mp"oved ts l?%dt'
poston( Advances have
&"o!n b' 12(5> $"om 191 mllon to 182 mllon d%"n& ths pe"od(
Ea"nn& assets a"e nte"est &ene"atn& assets( The "ato o$ ea"nn& assets to asset sho!s the
p"opo"ton o$ nte"est &ene"atn& assets to the total assets(
The "ato o$ ea"nn& assets to total assets $o" the bank sho!s "ema"kable $l%ct%aton,
s%&&estn& ca"e$%l mana&ement o$ and nvestment n nte"est &ene"atn& assets( Wthn
ea"nn& assets, ho!eve", the bank sho!s a &"ad%al t"end o$ movement o$ captal nto and
a!a' $"om lendn&s to othe" $nancal nstt%tons(
Sol"en!y 5atios
The solvenc' st%aton $o"
the nd%st"' as a !hole has
sho!n ma"ked mp"ovement
94
2::4
200
5
200
6
200
7 2008
E?%t' to assets 3(4: 3(:1 4(44 4(83 4(00
E?%t' to deposts 4(:. 3(3. 5(11 5(84 5(..
Ea"nn& assets to
deposts DtmesE :(80 :(8. :(89 1(:3 :(8:
0
2
4
6
8
10
2004 2005 2006 2007 2008
,ota* A""et ,'ro+er
n "ecent 'ea"s ca%sed b'
nc"easn& p"o$tablt'
and $"esh n$lo!s o$
captal tll AR:9(
;o!eve", the $&%"es $o"
the bank sho! that the"e
s a sl&ht declne n the
solvenc' poston n 2::0
as a "es%lt o$ h&h &"o!th
n deposts( The st%aton
!as !o"se n 2::5 !hen
the 3> o$ assets !as
e?%t' $nanced(
Ths st%aton, ho!eve", has mp"oved n 2::. beca%se o$ nc"eases n e?%t', !hch
&aned $nanced almost 4> o$ assets(
Ea"nn& assets n compa"son to deposts declned $"om a"o%nd 1(:3 n AR:9 to :(8: n
AR:0( Ths s ca%sed b' the $act that !hle deposts have sho!n t"emendo%s &"o!th ove"
the pe"od %nde" st%d', the bank has mantaned a consstent app"oach !th "espect to ts
ea"nn& assets and has not e+panded them to the same e+tent(
A!ti"ity 5atios
Actvt' "atos sho! that ho!
e$$centl' an o"&an7aton s
%sn& ts "eso%"ces(
.otal Asset .urno-er / Sales
0,e-enue3 2 .otal Assets
Total asset t%"nove" ndcates
the e$$cenc' !th !hch $"m
%ses t assets to &ene"ate sales
D"even%eE( The h&he" the $"m*s total assets t%"nove" the mo"e e$$centl' ts assets have
been %sed( Ths meas%"e s p"obabl' o$ &"eatest nte"est to mana&ement, beca%se t
ndcates !hethe" the $"m*s ope"atons have been $nancall' e$$cent( )n last $ve 'ea"s
Total Asset T%"nove" sho!s ts nc"easn& t"end, so t*s &ood s&n and sho!s that bank
%sn& ts assets e$$centl'(
95
2::4
200
5
200
6
200
7 2008
Total Asset
T%"nove" 3(. 4(8 9(. 9(0 0(0
0.00-
2.00-
4.00-
6.00-
8.00-
2004 2005 2006 2007 2008
E&'it( to a""et"
E&'it( to #epo"it"
Market 5atios
1anks have domnated the captal ma"kets o$ 6akstan beca%se o$ the" s%pe"latve
pe"$o"mance( The' comp"se one th"d o$ the total captal7aton o$ the K2E(
Book -alue %er Share / .otal Shareholder7s E"uity 2 No. o$ Outstandin! Shares
1ook val%e s o$ lmted to the nvestment anal'st snce t s based on hsto"cal costs(
1ook val%e pe" sha"e s
sho!n& m+ t"end and n
AR:0 t has dec"eased to
21(32 beca%se o$ la"&e
nc"ease n no o$ sha"e
o%tstandn& $"om .5:,:::
n AR:9 to 988,5:: n
AR:0( ;o!eve" e?%t' has
also nc"eased sl&htl' b' 5>(
Earnin! *er Share 0E*S3 / Earnin! 2 No. o$ Outstandin! Shares
The $"m*s E62 a"e &ene"all' o$ nte"est to p"esent sha"eholde"s( E62 "ep"esent the
ea"nn& on behal$ o$ each o%tstandn& sha"e o$ common stock( E62 dec"eased n 2::0
s&n$cantl' d%e to lo!e" ea"nn& !hch s 50(4> dec"eased as compa"ed to last 'ea"(
9.
2::4 2005 2006 2007 2008
1ook Nal%e pe" sha"e
21(:
5
24(0
0
24(4
0
24(8
5 21(32
Ea"nn& pe" sha"e 3(8 3(82 2(81 3(82 1(.3
0
5
10
15
20
25
30
2004 2005 2006 2007 2008
.oo/ 0a*'e per "1are Earig per "1are
5e!ommendations
A$te" don& nte"nshp o$ s+ !eeks n 1ank Al$alah Lmted, ) !o%ld lke to &ve some
"ecommendatons to co%nt ove" some p"oblems(
1ank sho%ld p"e$e" to p"omote !o"ke" on the bass o$ the" talent and avod &on&
$o" pe"sonal lke and dslkes( )t can be ha"m$%l $o" the o"&an7aton n the lon&
"%n(
)n 1ank Al$alah, the"e s msdst"b%ton o$ !o"kB some people a"e ove" b%"dened
!th the !o"k( 2o ) s%&&est that the"e sho%ld be $a" dst"b%ton o$ !o"k n all the
depa"tments(
1ank Al$alah s onl' dealn& n Mone' G"amB t sho%ld also sta"tn& p"ovdn& the
se"vce o$ othe" mone' t"ans$e" lnes lke Weste"n Cnon(
1AL sho%ld p"ovde loan to st%dents at lo! ma"k %p "ate and eas' te"ms #
condtons(
1ank Al$alah Lmted needs to %se mo"e ma"ketn& channels s%ch as "ado to
make the p%blc a!a"e o$ ts p"od%cts and se"vces( )n the p"esence o$ ntense
competton 1ank Al$alah Lmted has to "eal7e the mpo"tance o$ ma"ketn&(
1ank Al$alah has e?%pped ts b"anches !th all ma=o" )T tools ben& %sed n the
nd%st"' lke ATM*s, $a+ machnes, photocope"s, p"nte"s, latest comp%te"s and a
&ood connectvt' a"chtect%"e, ho!eve" t has been obse"ved that !hen ts tme to
!o"k, the"e a"e man' $al%"es seen n the d$$e"ent devces %sed b' 1ank Al$alah,
especall' ts connectvt' a"chtect%"e and "emans o$$lne !th the man se"ve",
that c"eates p"oblems $o" the c%stome"s
The"e a"e no ncentve schemes $o" emplo'ees o$ 1ank Al$alah lke schola"shp
schemes $o" emplo'ees that !ant to p%"s%e h&he" ed%caton( 1ank Al$alah
altho%&h &ves a n%mbe" o$ ncentves to ts emplo'ees, lke pe"sonal loans at
99
nomnal ma"k%p b%t the' a"e onl' p"ovded to emplo'ees that a"e n h&he" "anks(
Ed%caton $ees a"e also "et%"ned b' 1ank Al$alah to ts emplo'ees, a$te" the have
$nshed the" st%des(
1ank Al$alah Ltd sho%ld contn%o%s to e+pand ts b%sness, b' nc"easn& ts
depost po"t$olo th"o%&h a&&"essve ma"ket penet"aton st"ate&es(
The top mana&ement sho%ld mmedatel' sta"t thnkn& n te"ms o$ "otatn& the
emplo'ees n va"o%s depa"tments, as ths t"ans$o"ms !o"k $o"ce nto h%man
captal, $ a pa"tc%la" ndvd%al keeps on emplo'n& hsThe" e$$o"ts n one sphe"e
o$ bankn& t !o%ld not onl' c"eate a sense o$ monoton', b%t also not help
mp"ovn& the sklls o$ 1ank Al$alah Lmted emplo'ees(
1ank Al$alah Lmted sho%ld evolve a ve"' se"o%s mana&ement polc' to att"act
m%ltnatonal co"po"atons as ts clents( Ths acton, $ act%al7ed, !o%ld not onl'
p"ove to be h&hl' p"o$t &ene"atn&, b%t t !o%ld also cont"b%te a lot to!a"ds
1AAL<s ma&e b%ldn&(
1ank Al$alah lmted has the !eb ste, !hch has not been %pdated( The !eb ste
s ve"' less n$o"matve and t !on*t leave a &ood mp"esson on the vsto"( 2o )
s%&&est that t sho%ld be %pdated to meet the "e?%"ements o$ the vsto"s(
6a"tcpatve mana&ement concept sho%ld be adopted, !he"e deas $"om the
emplo'ees sho%ld also be taken, not onl' $o" developn& p"od%cts b%t also on
se"vce, e$$cenc', emplo'ee mo"ale etc( n o"de" to mp"ove them(
90
Con!lusion
At p"esent the"e s no s%ch o"&an7aton n the !o"ld that s $"ee $"om p"oblem and
challen&es( Eve"' conce"n has to st"ve and st"%&&le a lot to be mo"e p"o$table and to &et
mo"e compettve ed&e(
)t has been t!elve 'ea"s snce the establshment o$ 1ank Al$alah, and snce ts
establshment t has amed to become the leadn& bank o$ 6akstan b' that p"ovdes
o%tstandn& se"vces to ts c%stome"s( The bank has seen phenomenal &"o!th n the past
$e! 'ea"s b' openn& mo"e b"anches n the co%nt"', nc"easn& the depost base, !hle
also nc"easn& the assets and p"o$ts o$ the bank( The se"vces that 1ank Al$alah p"ovdes
have a &"eat ma"ket penet"aton not onl' beca%se o$ the" $eat%"es b%t also the p"o$t and
ma"k%p "ates that the' cha"&e( The mana&ement o$ 1AAL s takn& st"ate&c steps to
enable the bank to eme"&e as a st"on& and p"o&"essve nstt%ton( )t s contn%n& to
make e$$o"ts to "e$ne ts p"od%cts and ope"atons to make them mo"e compatble( Ne!
depost schemes have been nt"od%ced and an acton plan to mantan "even%e &"o!th n
$%t%"e(
As the b%sness and economc condtons "eman %nce"tan, 1AL contn%es to develop the
ne! p"od%cts lke t has been don& n past(
98
Bibliogra(hy
3eb 5esour!es
1ank Al$alah D!!!(bankal$alah(comE
Wkpeda D!!!(!kpeda(comE
2tate 1ank o$ 6akstan D!!!(sbp(o"&(pkE
Goo&le D!!!(Goo&le(comE
5e(orts * Pa(ers
Ann%al @epo"t 1ank Al$alah 2::0
)ss%es n 6akstan*s Econom' b' 2( Akba" Uad
)nte"natonal Anance b' Ma%"ce D( Lev
1ank Al$alah Lmted( D2::8E( Al$alah Mahana Amdan 6l%s V1"och%"eW(
1ank Al$alah Lmted( D2::8E( Al$alah O%ck Anance V1"och%"eW(
1ank Al$alah Lmted( D2::8E( Al$alah Mlkat Anance V1"och%"eW(
1ank Al$alah Lmted( D2::8E( Al$alah Ka"oba" Anance V1"och%"eW(
0:
01