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MBA (MIS)

ID: MC090408630

Haroon Ur Rasheed
Bank Alfalah Islamic Banking
Internship Report
Introduction of Bank
Alfalah Islamic Banking
The largest Islamic bank in Pakistan
BAL incorporated on June 21, 1997
in 2003: Bank Alfalah Islamic
Banking Division started
80/270 Islamic Banking branches
are based on Sharia laws.
Operational workings prescribed by
Islamic Sharia advisors
The objective: Riba free financing

Product Lines
Musharakah: contractual relationship
Mudarabah: Partnership
Murabaha: non-participatory,
client on cost-plus basis
Ijara: Client takes on rent & pays
back episodic rent
Salam: Contract of advanced payment
against delayed delivery goods
Istisna: Specific product against
particular condition by a
manufacturer
Business Volume (PKR 000)


2005 2006 2007 2008 2009
Revenue 7425 7140 14515 24416 31822
Deposits 76698 129715 223345 239509 273174
Advances 49216 88931 118864 149999 171199
Investme
nt
28904 35503 57416 56502 88492
Competitors
Meezan Islamic Bank
Dawood Islamic Banking
Dubai Islamic Bank, Pakistan Ltd
Emirates Global Islamic Banking
Union Bank
Introduction of Branch
This branch is situated in Kabirwala,
District Khanewal
It is 12 Km away from Khanewal
This branch belongs to Multan Zone
The branch has a talented
hardworking energetic staff
This branch deals with Islamic
products only

Organizational hierarchy Chart
Organizational
Management Analysis
Training Program
Hierarchy of MIS deptt
Operational
Manager

Branch
Manager

IT officer
Structure & Function of MIS
Department
Responsibilities of MIS
department
To keep all the computers, printers,
and ATM machine of the branch
operational by providing in time
support to the trouble shooting of the
IT equipments.
To provide support regarding IT
operations and also monitor and
trouble shoot the LAN (Local Area
Network) inside the branch

Structure & Function of
MIS Department
Functions of MIS department
Provides support to operations department
for keeping the LAN, computers and software
work smoothly
Maintains automated slip generation system
that generates slips on customer demand so
that the cash counters are not over loaded
and the customers come to counter at their
specific token number marked on the slip.

Critical Analysis
Bank Alfalah Islamic Banking Division sets
its goals according to its mission and vision
statement.
My observations are following:

1. Strong brand recognition
2. Strong allocation potential
3. Recognized market existence
4. Focused business strategy
5. Strong credit rating
6. Large (over 5 million accounts)
7. A full service bank

SWOT Analysis
STRENGTHS:
Bank Alfalah Islamic Banking division is financially very strong bank.
Following are some of the strengths of the Bank.
Alfalah bank is applying the TQM in each of its branch, which is the
great achievement. No other bank has this department
Bank Alfalah Islamic is financially strong and has a huge deposit
reserve.
WEAKNESSES:
Lack of branch network as compared to other Islamic banks in Pakistan
More job rotation
It is a step behind in using new technology (MIS) as compared to other
banks.
Most of the employees are overloaded with work
slow in the introduction of new services as compare to other Islamic
banks in Pakistan i.e. free internet services.

SWOT Analysis
OPPORTUNITIES:
Bank can extend its network in other cities of Pakistan.
profitability can be increased by making use of new technology (MIS)
Ability to introduce new products and services because of the huge capital reserve
It can adopt E-banking and provide credit card facility to its customers.
Good financial position creating a good reputation for future advances and huge
deposits
THREATS:
In certain era of Pakistan people emphasizes more on Islamic mode of banking.
Bank is facing intense competition from other Islamic Banks working in Pakistan
Bank is performing very well in the presence of unstable political and economic
situation but this uncertainty is a continuous threat for the bank

SWOT analysis shows that Bank Alfalahs strengths are more than its weakness
and it has a chance of availing many opportunities.

Internal Factor Evaluation Matrix (IFE)
Internal Strength Weight Rating Weighted Score
1st largest Islamic Bank of Pakistan in term of deposits 0.1 4 0.4
1st largest Islamic Bank of Pakistan 0.12 4 0.48
Improved operational efficiency as compared to past 0.04 3 0.12
Large Branch network 0.08 3 0.24
BAL IBD Product positioning is very effective 0.04 3 0.12
standard of living 0.05 3 0.15
Stands in the list of Profitable bank in stock exchange 0.04 4 0.16
Largest number of corporate deals by any bank is Pakistan 0.08 4 0.32
Attractive Salaries and incentives for employees 0.15 4 0.6
Overseas Branches 0.05 4 0.2
Internal Weakness
In some regions BAL IBD service is not good as compared to others 0.1 1 0.1
BAL IBD is a step behind in using new technology as compared to
other banks
0.04 2 0.08
All branches need orientation for customer dealing with loyalty 0.03 2 0.06
Security system in most of the branches is not up to date 0.04 1 0.04
Most of the employees are overload with the work and promotion
is also not timely
0.04 1 0.04
Total Weighted Score 1 3.11
External Factor Evaluation Matrix
(EFE)
Key External Factors Weights Ratings Weighted
Score
Opportunities
Terms of Licenses to Islamic banks by SBP 0.14 4 0.56
Growing acceptance of Islamic banking with lay man 0.04 2 0.08
Government Patronage 0.2 2 0.4
Refinement of procedures by COIE 0.1 3 0.3
Expansion in different other areas internationally. 0.06 2 0.12
Tide Down of Money 0.05 2 0.1
Energized Research and Development 0.05 3 0.15
Threats
Excessive and expensive documentation 0.1 4 0.4
Comparisons of Rates profits interest 0.04 3 0.12
Slow and tedious product development process 0.05 3 0.15
Bad Mouthing by conventional Bankers 0.11 4 0.44
Absence of Interbank money market for Islamic
Banking
0.02 2 0.04
High expectation of General Public 0.04 2 0.08
Total 1 2.94
TOWS Matrix
SWOT STRENGHTS
Phenomenal growth in branches
External Credit Rating.
Enhance Customer services and care
Charging moderate rate of return.
No specific market niche
Personalized banking services
Systematic working operations
Offering a generous product portfolio
WEAKNESS
Lack of awareness through publication of Islamic
material.
Lack of research and development.
OPPORTUNITIES
Government Patronage
Acceptance by layman
alteration of procedures
Energized research and
development
SO STRATEGIES
Market Development
Product development
Cost Leadership Strategy
WO Strategies
Strengthen research and development through
industrial support
Control Inflation
THREATS
Expensive and excessive
documentation
STRATEGIES
Horizontal Integration
Cost Leadership strategy
WT STRATEGIES
Concentric diversification
Proper Advertisement to enhance awareness
Competitive Profile Matrix (CPM)
Meezan Bank
Standard
Chartered Bank
Bank Alfalah Islamic
Critical
Success
Factors Weight
Ratin
g
Weigh
ted
Score Rating
Weighted
Score Rating
Weighted
Score
Advertising 0.2 2 0.4 4 0.8 3 0.6
Product
Quality 0.15 3 0.45 3 0.45 2 0.3
Market
Share 0.1 2 0.2 2 0.2 4 0.4
Competitive
ness 0.1 4 0.4 2 0.2 3 0.3
Management 0.15 3 0.45 2 0.3 4 0.6
Financial
Position 0.1 2 0.2 3 0.3 3 0.3
Customer
Loyalty 0.15 3 0.45 2 0.3 2 0.3
Global
Expansion 0.05 2 0.1 3 0.15 3 0.15
Total 1 2.65 2.7 2.95
BCG Growth Share Matrix
Porters Five Forces Matrix
Degree of Rivalry
Threat of Entry
The Threat of Substitutes
Buyer Power
Supplier Power


Ansoff Matrix

Market Penetration: Selling more of the same to same type of people
Market Development: Selling the existing products to new
consumers
Product Development: Selling new products to existing customers
Diversification: Selling new products to new consumers



Products
Existing New
M
a
r
k
e
t
s

E
x
i
s
t
i
n
g

Market Penetration Product Development
N
e
w

Market Development Diversification
Conclusion
Recommendations
Build their Own Website:
E Banking
Advertising / Marketing (Internet based):
More focus on MIS required:
Introduction of New Products:
Women In Workforce:
Distribution of Work:

Thank You
For Your Attention