Bank Alfalah Internship Report

Bank Alfalah Internship Report

Bank Alfalah Limited

As:

Officer Product Development

Autos – Consumer Finance Division

CERTIFICATE OF APPROVAL

I certify that I have read report Bank Alfalah Limited in detail and in my opinion this work meets the criteria for approving a project submitted in partial fulfillment of the requirements for the Masters Degree at Institute.

ACKNOWLEDGEMENTS

I am very thankful to Allah Al-Mighty for enabling me to carry out this successful project and also to Faculty of Institute of Management Sciences, who has aided me and given me enough skill and knowledge to reach this level of being able to write my own project.

Special thanks to the Bank Alfalah’s Top Management for their cooperation.

Bank Alfalah Internship Report – PREFACE

Internship is the one of the crucial part of the MBA course and this provide the practice knowledge of what students read about business in their books. Internship report is prepared on the basis of full fledge analysis of an organization. As this is the only field experience that students before entering practically into the market.

During our internship / Job I have been rotated different departments as Autos, Operation, Product Development & internet banking etc. Working at Bank Alfalah is the great experience. they explained each and every concept to make us clear. This knowledge and practical experience was the thing which helped us in completing the internship report.

Executive Summary

I am working in Bank Alfalah for one and half year. I tried my best to present something practically from this opportunity. This report starts from the introduction of word ‘Banking’, and then History of Alfalah Bank of Pakistan.History of Alfalah Bank shows that how it helps its Nation and Country in both war & peace.

Bank Mission statement & Vision shows its focus on overall performance of the bank and

Quality of services and products.

After restructuring of the bank the objectives of the bank are changed. Now it has objectives to overcome past mistakes, realize the real importance of customer so now it has main objective to achieve customization.

Bank also provides facility of L.C to support export and import in the region.

SWOT analysis of Alfalah Bank of Pakistan shows that it has small number of strengths and lot of weaknesses. The bank should give attention to this drawback. But bank has lot of opportunities to improve its quality of services, and do efficient banking. Bank should give proper attention to overcome its threats.

TABLE OF CONTENTS:

• Introduction
• Introduction to Bank Alfalah
• Company Secretary
• Branches Network
• Features
• Products of Bank Alfalah Limited
• Atm
• Online Banking
• Phone Banking
• Rupee Travelers Cheques
• Credit Cards
• Alfalah Car
• Home Financing
• My Work During Internship / Job
• Recommendations & Conclusion

INTRODUCTION

Following privatization, Bank Alfalah emerged as new identity of Habib Credit and Exchange Bank with a revived purpose and commitment. Charged with the strength of Abu Dhabi consortium and under the leadership of his Highness Sheikh Nahayan Mubarak Al – Nahayan, the bank has already made significant conditions in building and strengthening both corporate retail banking sector in Pakistan.

Designing the product portfolio of bank response to the customer’s preferences, the product like Royal Profit, Royal Patriot and Royal Custodial are prime examples of quality and innovation providing timely banking opportunities to customers of bank.

Assessment of the needs and wants of the customers is an on going process at Bank Alfalah, which helps to continually develop new products and services. To continuously offer courteous, professional and advanced banking solutions, the team of bank has recently been rejuvenated by going through training programs with a focus on information technology.

To make their banking solutions become accessible to more and more people, they have embarked upon a rapid expansion program, aiming to provide a networking that makes the services available to any of their customers in all the major urban centers of Pakistan – with a view to go international in the future.

With their key indicators of progress already soaring to new heights, the bank is committed to dedicate all its energies, resources and time to bring higher value and satisfaction to their customers, employees and shareholders.

The graph of bank is going up and up every year. The ratio of profit is increasing at good percentage. Thy bank is serving the people at high level of standard by going according to the wishes of the customers.

INTRODUCTION TO BANK ALFALAH

Bank of Credit & Commerce International (BCCI) was a Pakistan based bank, established by Mr.Agha Hassan Abdi from UBL, in association with U.A.E and Europe. BCCI has its branches in 74 different countries of the world. It had its 3 branches in Pakistan. In 1991, the BCCI was banned, when it was accused by European countries that the bank was involved in some illegal operations with Gulf countries. The major reason behind European accusation was that BCCI was of Islamic mode. Therefore, the bank was closed due to international pressure. Then, its 3 Pakistani branches were taken over by the Government of Pakistan, which were named as Habib Credit and Exchange Bank (HCEB) and these were working as subsidiary of Habib Bank Limited.

Following the privatization in July 1997, Habib credit and Exchange Banned assumed the new identity of Bank Alfalah on February 25, 1998. It is now Abu Dhabi based bank as the family of Sheikh Nahayan Mubarik Al Nahayan purchased 70% of its shares and 30% shares remained with Habib Bank on behalf of Government of Pakistan.

The development of various sectors in Pakistan. The bank has already made significant contribution in building and strengthening both corporate and retail banks sector in Pakistan. Assessment of the needs and wants of customer is an on going process at Bank Alfalah, which help to centennially develop new products of services. Designing the product portfolio in response to royal patriot, royal custodial, Alfalah car finance, Alfalah rupee traveler cheques, home loans are prime example of quality innovation providing timely banking opportunities to customer. To continuously offer courteous, professional and advanced banking solution the team of bank has recently been rejuvenated by going through training programs with focus to information technology.

With their key indicators of progress a steady soaring to new heights, the bank is committed to dedicate all its energies, resources and time to bring higher value and satisfaction to their customers and employers.

The graph of the bank is going up and up every year. The ratio of profit is increasing at a good percentage. The bank is serving the people at high level of standard by according to expectation of customers.

FINANCIAL HIGHLIGHTS

Bank Alfalah has grown 51.84% in its total assets and 101.35% in its equity. The Bank netted record pre tax profit of Rs. 3.506 billion, a 291.85% increase over the corresponding period last year (2004), which includes capital gains on Federal Government securities of Rs. 2.19 billion. The deposits of the Bank rose to Rs. 76.7 billion which is 48.4% higher than corresponding period last year (2004) and indicative of increasing customers’ confidence in your Bank, because of its superior services and healthy practices.

The Loans and Advances figure stood at Rs. 50.37 billion, an increase of approximately 71% over the last financial year (2004). This portfolio has been supplemented keeping the Bank’s stringent and prudent policies in view.

BRANCH NETWORK AND CONSUMER BANKING

Bank Alfalah continually endeavors to develop a wider spectrum of innovative financial products based on consumer needs. The Alfalah Visa Card has been recognized by the Visa International as the first credit card in South Asia to have crossed the 100, 000th mark in the shortest timeframe. Alfalah Car Finance is another market leader offering superior value and convenience to its clients. Financing scheme launched by the Bank offers great potential of becoming yet another important product of the Bank. Phone Banking was launched with a view to establish a more direct contact with our clients. This support centre has greatly facilitated the overall sales efforts of the Bank. Alfalah has emerged as one of the leading commercial banks in the financial sector of Pakistan.

Branches Network

The network of bank alfalah consist of 101 branches all the country-wide Details: –

CITIES & No. of Branches

• Karachi  18
• Lahore  13
• Peshawar 2
• Rawalpindi 2
• Faisalabad 2
• Multan 5
• Bhawalpur 1
• Gujranwala 1
• Gujrat 1
• Hyderabad 1
• Islamabad 1
• Jehlum 1
• Mardan 1
• Mianchannu 1
• Mengora (Sawat) 1
• Queeta 1
• Rahim Yar Khan 1
• Sahiwal 1
• Sargodha 1
• Sheikhupura 1
• Sialkot 1
• Sakhar 1
• Wah Cantt. 1
• Gawader 1
• Dera Ghazi Khan 1

CREDIT PORTFOLIO

A depressive interest rate environment has spurred the competition for scarce banking assets in local financial industry. While Bank Alfalah remains a key player in the market, however, it treads with caution so that the quality of its credit portfolio is not compromised.

The Bank has employed a proactive approach in the form of a well-designed and transparent credit approval process. This process benefits from an inherent system of checks and balances at each level.

FOREIGN TRADE, CORRESPONDENT BANKING AND TREASURY OPERATIONS

Bank Alfalah offers high quality service to its foreign trade clients. Customers are assured of efficiency and timeliness when dealing with their overseas counterparts. Our clients enjoy the benefit of our well integrated global correspondent-banking network giving them greater global reach. This comprises more than 200 financial institutions all over the world signifying the favorable reputation that Bank Alfalah enjoys globally as a stable and responsible banking institution.

During the year, the foreign trade volume of the Bank has recorded an impressive growth and it has reached to the level of 8% of total foreign trade of the country. The imports figure of Rs. 46.81 billion and exports figure of Rs. 44.27 billion represented an increase of 38% and 34% respectively over the last year figures.

The Bank has also been fairly active in the inter-bank market and enjoyed substantial lines of credit. The Treasury Division added significant profitability to the Bank through its intuitively priced transactions and proactive strategies for both investment and realization of capital gains.

CREDIT RATING

Despite the political and economic uncertainties, Bank Alfalah was able to maintain its impressive credit ratings of AA- and A1+ in the long and short term respectively. These ratings are indicative of a very high credit quality and low potential for credit risk. These ratings have been assigned by the PACRA, the leading credit rating agency of Pakistan. These ratings have been awarded on the basis of a steady improvement in organizational performance, augmentation in equity base and increased sponsor backing.

HUMAN RESOURCE DEVELOPMENT

Development of professional skills and knowledge of the employees is essential for the efficient functioning of any organization. At Bank Alfalah appropriately designed policies and practices have been instituted to achieve this strategic objective.

Our state-of-the-art training centre at Karachi remains indispensable in imparting valuable training to all our team members. This has become especially important considering the pace of change that the banking industry is exposed to. Consequently training ensures that change is successfully navigated to discover potentially beneficial opportunities that can be transformed into direct gains for the Bank and its customers. This also positively impacts the confidence levels of our employees translating into better job performance and satisfaction. During the year 2004-2005 we aim to establish a similar training and development facility in Lahore, Pakistan.

Bank Alfalah Vision

“To be the premier organization operating locally and internationally that provides the complete range of financial services to all segments under one roof.”

Our vision is to be a leading financial institution, with a niche in areas where we have a competitive advantage with complete banking solutions. Our focus is on improving performance in each of our businesses to achieve consistent and superior returns for our highly valued clients and stakeholders.

Bank ALfalah Mission

“To develop and deliver the most innovative products, manage customer experience, deliver quality service that contributes to brand strength, establishes a competitive advantage and enhance profitability, thus providing value to the stakeholders of the bank.”

Our mission is to maintain competitive edge in quality banking, customer service and profit performance. Our activities are geared towards making Bank Alfalah a responsible corporate citizen. The emphasis on “Quality and Innovation” will remain our key mission statement. We will continue to strengthen our position as the leading provider of quality financial services in Pakistan.

PHILOSOPHY

• Excellence in service

• Quality performance
• Product innovations

CORE VALUES

• The core values of BAL are
• Honesty and Integrity
• Mutual Respect and Trust
• Open, Honest and Direct Communication
• Customer’s Focus and Service
• Justice and Fairness
• Commitment and Hard work
• Innovation, Creativity and Initiative
• Humility

CORPORATE SOCIAL RESPONSIBILITY

“Our support always remains at the forefront – from rehabilitation and conservation of historical buildings and from education to sports. We, as corporate citizens, are involved in social uplift, welfare, culture and sporting activities across the country”.

ALFALAH’S AUDITING

The auditing procedures are used to check and verify performances and targets of all the staff, at branch level, at higher level, and also to see the target levels and benchmarks that we are supposed to achieve from our sales etc because of our customers. We use them for compliance and verification. They are used especially for risk management. The procedures are set keeping in mind the SBP regulations. But the proper auditing we carry out is through budgeting, through the budgets we check how we are performing especially from top down level.

KEY INITIATIVES

• Implementation of branch and product level service standards
• Product level key performance indicators (KPIs)
• Branch mystery shopping and customer satisfaction surveys
• Standardized problem reporting and resolution process

CORPORATE INFORMATION

THE BOARD

• H.E.Sheikh Hamdan Bin Mubarak Al-Nahayan  Chairman
• Mr.Abdulla Khalil Al-Mutawa   Director
• Mr.Abdulla Nasser Hawaileel Al-Mansoori  Director
• Mr.Khalid Mana Saeed Al Otaiba  Director
• Mr.Ikram ul-Majeeb Sehgal  Director
• Mr.Nadeem Iqbal Sheikh  Director
• Mr.Sirajuddin Aziz  Chief Executive Officer

BOARD OF DIRECTORS

FEATURES

Bank Alfalah Limited is an established bank. It has some special features with the help of those it is growing rapidly.

OUTSTANDING WORK ENVIRONMENT

As the work environment plays a great role in this competition age, so the bank has good work environment. All the people work with cooperation; managers are so kind that each problem can be discussed with them.

EFFICIENCY

Employees at Bank Alfalah are quite efficient. They work more than their working hours and it is all according to their will. It also shows their loyalty, commitment to organization.

CUSTOMER SERVICES

All the customers are entertained individually. Same kind of behavior and attention is given to all the customers.

SUGGESTIONS ASKED FROM CUSTOMERS

Getting ideas for improvement from customer side is a new idea and that is working very well in Bank Alfalah Ltd. All the customers are asked to fill a suggestion form and the standards of the bank are improved through them.

EMPLOYEE BENEFITS

Employees are given the benefits like bonus, gratuity funds, loans, increments, house rent, medical and conveyance allowances.

COMPUTERIZED WORKING ENVIRONMENT

In bank, all the work is done remotely. All the entries are made using the systems which are internally and externally integrated. This increases efficiency of the bank.

ATM

Bank Alfalah through its commitment to provide superior and improved services to its valued customers, has unveiled a nationwide network of ATMs. For customer convenience, customers now have access to instantaneous cash availability, 24 hours a day, 7 days a week.
ATM network is geared up to exploit the latest technology, and is equipped to meet the highest standards of security and efficiency. With new ATM card you can now:

• Withdraw Cash
• Use our convenient, user-friendly fast cash option
• Make a Balance Inquiry.
• Get an instant printout of your account balances
• Get a printout of your last transactions (Mini-statement) on the spot.
• Change your PIN (Personal Identification Number).

Bank Alfalah is pleased to introduce 27 state of the art ATMs, deployed at the most convenient and accessible locations. Bank Alfalah is a founder member of the 1-Link Switch, thus making a countrywide network of ATMs available.

ONLINE BANKING

Bank Alfalah now offers the facility of on-line banking to its customers through its countrywide network of branches. Customers can use the ATMs or the banking counters of any branch for day-to-day banking needs, irrespective of branch where they maintain their accounts.

For Corporate customers centralized Cash Management facility is also offered through on-line banking.
PHONE BANKING

“Alfalah Phone Banking” is available to all customers on a countrywide basis. Customers can dial 111-225-111 (without any city code/prefix) from their respective cities i.e. 21 cities where Bank Alfalah is present, and get prompt services from the Centralized Phone Banking Services. Customers enjoy 24×7 Round the Clock Phone Banking Services.
Bank Alfalah is the first bank in Pakistan to offer Centralized UAN connectivity from 21 cities to its Call Centre with Hunting & ACD facilities.

SECURE AND RELIABLE 

An extensive network of quality agents, linked by computer, will transfer your money safely and ensure that it is handled with care and without delay. Thousands of people already use the MoneyGram service all over the world. It is trusted for its reliability and security.

CONVENIENT AND FAST

MoneyGram is available in over 154 countries and in more than 40,000 locations worldwide. With Money Gram your money is transferred immediately and usually arrives at the receiving end within 10 minutes while other services can take days or weeks. There are no complicated procedures and you do not need a bank account or a credit card.

FREE MESSAGE SERVICE (FOR SENDERS) 

There is also an added personal touch-you can receive a 10 word message from the sender with every transaction at no extra cost.

ORGANIZATION STRUCTURE

COUNTRY WIDE HIERARCHY

Source: Bank Alfalah

Alfalah has alleviated its CEO with the Corporate Heads, which is a higher rank. Currently the bank has five corporate heads, namely Strategic planning, corporate and investment banking, branch banking and SME, consumer banking, and lastly Islamic banking

CREDIT CARDS

Bank Alfalah Visa Credit Card was launched in Pakistan in February 2003 and is now the market leader. Visa Debit cards, satisfying a much larger customer base in comparison to any other issuer in Pakistan. With an extensive network of above 200 branches in all major cities, Bank Alfalah has catered to a huge untapped potential market and the product positioning of “FREE FOREVER” ensures no annual fee to be charged to the cardholder forever. Numerous facilities are being offered on their cards including 24 hours utility bills payments, exciting Rewards program, Platinum cards for high net worth customers, SMS Alerts facility for each transaction, payment or any other activity on credit cards and unique Insurance Plans for Children Education and Life Insurance. They have also catered to the Cards Acquiring business resulting in unmatched expansion of the electronic cards acceptance business. An instant installment plan is also incorporated in the acquiring business, whereby Bank Alfalah cardholders can convert any transaction conducted at Bank Alfalah merchants to easy installments of 3 to 36 months at the time of transaction. Recently the cards business has also been expanded to Afghanistan being the first issuer there and this trend of expansion to other countries will continue in many countries to make Bank Alfalah the first Pakistani bank to issue cards worldwide.

Bank Alfalah Limited offering credit cards with minimum markup and in wide variety in market. Markup rate that is charge is 2.50% after the 51 days of transaction. Bank Alfalah also does not charge any annual fee and no charges when you avail credit card facility.

Bank Alfalah offering various varieties of cards:

• Gold Card150,000 — 499,000
• Silver Card25,000—150,000
• Women Exclusive16,000—499,000
• Classic Blue (professionals)               (only for panel companies’ members)

FEATURES

• Balance transfer facility-Smart settlements

Offering an easy and convenient way to settle unsettled credit card payments on all existing credit cards in Pakistan. Avail this facility at as low as 1.5%.

• Cash advance facility – 75% of your credit limit

Now you can avail cash advance facility up to 75% of your available credit limit. Enjoy the benefits of this exclusive offer on your Bank Alfalah credit card.

• Step by step monthly installment plan – 1.25% p.m. only

Now you can convert any transaction, amount of Rs. 3000 and above to a step-by-step monthly installment payment plan. It gives you the flexibility to convert your large payments into small equal monthly installments.

• Free supplementary cards

Offering the facility to acquire free supplementary cards for your family members. Avail this card without any extra cost.

• Fortunes

Offering an amazing rewards program that let you earn points every time you use Alfalah Visa card. Redeem the earned points anytime for fabulous gifts of your choice.

• Discounts

Offering discounts at wide range of outlets, selected especially to much your taste. You can avail matchless discounts each time you charge your card at these outlets.

• Insurance Cover

Offering card members a range of features design to protect you and your family from the setbacks of life, at very affordable rates.

• Petrol facility

Offering you the facility that saves you the extra that you pay when you use Alfalah Credit Card at all patrol pumps in Pakistan.

Bank Alfalah UNIQUE BENEFITS

Bank Alfalah Auto Debit Service 

This facility is specially designed for Bank Alfalah account holders. It gives the option of making minimum or full payments through Bank Alfalah Savings / Current Pak Rupee account specified on Alfalah VISA monthly statement.

Bank Alfalah Credit Cover  

Alfalah VISA offers card members a new and powerful protection against the uncertainties of life. In the unfortunate even of prolonged illness, disability or death,  it’s reassuring to know that with Alfalah Credit Cover you have no cause to worry about your monthly credit card repayments. Alfalah Credit Cover has a range of features designed to protect you and your family from the setbacks of life, at rates that are affordable.
DOCUMENTS REQUIRED

Eligibility Criteria

• Total gross salary / income of Rs. 8,000/- or more per month.
• Aged between 25 to 60 years (60 years at maturity of facility).
• Should be Pakistani National

For Salaried Applicants

• Copy of National Identity Card.
• Current Salary Slip/Salary Letter / Proof of BPS (for Govt. Employees)/ Proof of Rank for Armed Forces Personnel) .
• Computerized Personal Bank Statement (on bank letterhead in original) for last six months.

For Self Employed Applicants

• Copy of National Identity Card.
• Computerized Personal Bank Statement (on bank letterhead in original) for last six months.

Additional Requirements

• Partnership deed & personal account statements of partners (if any) for last six months.
• Bank letters / certificate confirming Proprietorship (in case of Proprietorship).
• Memorandum / Articles of Association / Form A (in case of private limited company).
• Recognized professional degree / membership certificate to professional associations (in case of professionals).

ALFALAH CAR

It’s a scheme that enables one to own his desired car at easily affordable and flexible installments with a minimum down payment and insurance.

BENEFITS AND FEATURES

• Quickest processing
• No hidden charges
• Minimum down payment
• Complete repayment at any point of time
• Balance transfer facility {BTF} for existing as well as new clients from other Banks
• Tenor period ranging from 1 to 5 years.
• Financing of all brand new locally assembled vehicles.
• Financing limit ranging b/w Rs. 200,000/- to Rs. 2000,000/-

CORPORATE & INDIVIDUAL CAR LEASING

We commenced car financing in the year July 2000 We feel immense pride that our car financing has redefined operating standards. This certainly reaffirms our stance on giving clients maximum value for their money. Considering this product as the most lucrative mode of lending, and in view of its feasibility in the near future, BAL offers the most competitive mark- up rates in the market and provides a chance to the innumerable customers to make their dreams materialized through buying of their desired vehicles. The product has facilitated in creating strong brand recognition for BAL in the market. Car Financing has not only become a star product of BAL, but has also provided an impetus for successful launch of other consumer products.

BAL is offering financing facility not only for the brand new vehicles but also caters to those customers who wish to opt for used vehicles. Quick processing and turn around time, competitive mark up rates; affordable installment plans are the key features of the product. When BAL entered the arena of Car Financing, there were only a few players (including the leasing companies and banks).With growing consumer awareness and declining interest rate scenario, several banks entered this nascent area. This scenario gave substantial boost to the overall car sales, which in turn proved to be highly beneficial to the local car manufacturers. Car Financing, on the one hand provided an opportunity for the financing institutions to increase their spreads, while on the other hand facilitated in expanding their consumer base with small per client exposure. The increasing competition demanded constant increase in the distribution channels, as well as the work force, coupled with offering market driven interest rates for this product. Today as we look back towards the milestones achieved, we are filled with immense satisfaction, to have come such a long way since inception of the car finance business. With the expansion of BAL branches in all big and small cities of Pakistan, the product portfolio has reciprocally expanded in response to our client’s needs. The bank aims to invariably improve its existing standards by adopting innovative measures and exploring new perspectives for both products and customer care. This customer focused banking strategy has enabled Bank Alfalah to evolve as a single source financial service provider of Corporate and retail banking services.

BAL car comprises a dedicated team of professionals, equipped with sound business acumen and diversified experiences in their respective fields of operations. Our notion is to serve the quality through customized and comprehensive offers for our customers. We have offered a wide range of banking products which are strategically planned and designed to suit our customer’s needs. This notion has given us strength to face the future challenges. The array of products continues to satisfy the banking requirements of our customers. BAL is well positioned to capture impending opportunities for growth. BAL’s intellectual leadership and outstanding management values have given its marketing team a good momentum to perform. We are confident of our untiring abilities to continue delivering profitable growth. With a focused and efficient platform we expect nothing less of ourselves and offer nothing less to our clients.

Now you are provided with the option of either to get the vehicle leased or financed.

INSURANCE
Renowned and reliable Insurance companies are offering the competitive rates of Insurance. Pay year insurance premium in advance (at the time of down payment) and remaining in the subsequent equal monthly installment.

HOW MUCH EXTRA MONEY BEING PAID? {MARK-UP}

Offering lowest rate of markup of 12, 12.5%, {per annum}, BAL has captivated a major market share and so is the plan for future.

REPAYMENTS
Easily affordable installments on monthly basis in the form of postdated cheques will set you free of depositing your rental cheques every month.

SECURITY
Hypothecation of vehicle in the name of the Bank Alfalah Limited.

YOU CAN ACT AS A CO BORROWER

Acting as a co borrower, will enables your family members {spouse, children- 18 year and above} to avail the financing facility and can get the car registered in their names as well.

ELIGIBILITY CRITERIA

• Yes you get a car loan form bank Alfalah to purchase a brand new car if you are:
  Pakistani National Identity Card holder.
• Over 20 years of age (Maximum 60 years in case of salaried and 62 in case of a
  business person at the time of maturity of the loan).
• Salaried, Businessman or self employed.

Required documents for car finance facility

• Application form
• Copy of national Identity card
• Copy of Driving License (optional)
• N.T.N. Certificate
• Copy of current utilities bill of residence
• Bank account statement for last six months from the date of application
• Signature verification fro duly verified by t he banker
• An Assets & liabilities statement (where bank‘s financing exceeds Rs. 5 Lac.)
• CIB report required (where bank‘s financing exceeds Rs. 5 Lac.)
• Basic Borrower Fact Sheet

Additional requirements for business class individuals

• Copy of rental/ purchase agreement of business premises.
• Sole proprietorship letter on relevant business letterhead.
• Partnership deed (if applicable).
• NOC from other partners (if applicable)

Additional requirement for self employed professionals

• Copy of rental/  purchase agreement of business premises
• Copy of membership of respective institution/ association
• Must be practicing from last 3 years.

Additional requirements for landlord

• Fard malkiat/ title deed of land
• Undertaking fro competent landlord

Additional requirements for salaried individuals

• Certificate from employer showing permanent employment for the last 2 years
• Original salary certificate
• Take home salary three times of proposed installment
• Income of spouse can also be clubbed

If leasing Auto then the Asset will be on the bank name for minimum 2 years and if Financing Auto or home it will be the honor’s name. Things which are required for car financing:-

• Required document’s of a particular person.
• Bank statement of a particular person of previous six months.
• Copy of fresh CNICof a particular person.
• Two photographs required of that person.

If a person is a businessman then his/her visiting card or company letter head is required.

• If salaried person needs a car, then his/her certificate of employer is required and his/her salary slip. When the bank gives the car to their customers, then they take cheque from them which is known as posted cheque, cheque should be present on every 5th of every month. Car will not be given to a person who is at the age of sixty. It can be on his son’s name.
• Cheque returned or rejected auto Rs.500/- pay service charges.
• Penalty on late payment Rs.100 per day or maximum of Rs.1,000 per month installment.

• There are two types of car loans

• Go on booking, wait for 3 months
• Up ready markets (comprehensive insurance policy)

• Posted Cheque

• If the time period of a car is three years which means 12 x 3. It means the customer will present 36 cheques.

• State bank has given this access to all the banks and they know that the customer had taken a loan from any other bank or not and this access software is known as ECIB (Electronic Credit Information Beauro). From this software every bank can cheque the financial status of every customer.

HOME FINANCING

The Bank Alfalah Home Finance product continues to be the market leader in Pakistan, having the largest disbursed and outstanding portfolio among all the commercial banks operating in Pakistan. At present BAL Home Finance product offers the following five (5) variants to its customers:

• Home Buyer (for purchase of already constructed Bungalow/ Apartment/ Town House etc.)
• Home Construct (for construction of Bungalow/Town House etc, and for purchase of a residential plot for subsequent construction.)
• Home Improver (renovation/improvement of existing property)
• Home Balance Transfer Facility (transfer of existing financing availed from other banks to BAL)
• Home Start (purchase of an already constructed financing unit with a moratorium of up to 3 years in principal payments). This is principally aimed at young professionals.

Our growth is steady, and in line with the market trend, which is that of caution in lending to customers with even a slightly reduced repayment capacity. However, the focus has increased on attracting overseas expatriates as our customers, with very good results.

During the last quarter BAL kept its position as a major mortgage financier, in spite of aggressive competitive posturing by other major banks. Home Finance facility is being provided to the customers in 16 cities viz Karachi, Lahore, Rawalpindi/Islamabad, Faisalabad, Multan, Peshawar, Sargodha, Gujranwala, Sialkot, Quetta, Hyderabad, Bahawalpur, Abbottabad, Wah Cantt, & Rahim Yar Khan etc.

Bank Alfalah has deployed all available resources to ensure that its portfolio remains adequately protected from sudden reversals. With restrictions on upper cap gone, Bank Alfalah has already started booking large ticket loans besides ensuring proper measures in place to counter changing conditions.

THE ELIGIBILITY CRITERIA

You may apply for Bank Alfalah Home Finance:

• For acquiring a residential accommodation in Karachi, Lahore, Islamabad,Rawalpindi, Multan, Peshawar and Faisalabad.
• For building your dream house on your property / land.
• For renovation or extension of your already owned house.
• For transfer of your existing home finance from another lender.

• If you are a Pakistani National.
• If your age is between 25 and 65 years.
• If you are in continuous employment in a permanent position for 2 years
  or more.
• If you have 3 years (or more) of business or professional experience.
• If your gross annual income is Rs: 200,000/ — or more [Your spouse’s
  income (upto 50%) can also be combined with yours].
• If you require a financing of at least Rs: 500,000/- or more (maximum
  Rs: 7,500,000/-)
• If you have been a Bank Alfalah borrower for past one year with clean
  payment record.

You may apply for Bank Alfalah’s Home Finance for minimum period of 3 years and a maximum period of 20 years (subject to your age).

DOCUMENTS CHECKLIST

The following documents are required to be submitted by an applicant with the completed application.

For salaried person

• 2 passport size photographs.

• Copy of NIC.
• Copies of last Salary / Pay Slip duly attested by the HR department.
• Salary Certificate (original) from the employer, showing the gross salary and deductions.
• Employment verification form from the employer.

For self-employed and Businessman

• 2 passport size photographs.
• Copy of NIC.
• Certified Copy of last Six Months bank Statement.
• Copy of current professional association membership / trade body membership certificate (if Applicable).
• Sole partnership deed letter.
• Copy of Latest Form 29 duly attested by the company secretary.
• Letter from company secretary confirming the status and share-holding (where applicant is director of company).

ANALYSIS OF DEPARTMENTS

MARKETING DEPARTMENT

This department includes two responsibilities:

• Developing new products, and
• Sales promotion

Sales (issuance) include:

• Direct sales, and
• Telemarketing

Sales (acquiring) includes installation of POS machines at different merchant locations. Procedural steps are:

• Location survey
• Merchant profile
• Relationship with other banks
• Installation of POS at different merchant locations.

FINANCE DEPARTMENT

This department includes settlement of all payments relating to cardholders, Merchants, Treasury department, Reconciliation settlements and preparation of financial accounts. There are three sections under finance department:

• Accounts Payable and Final accounts

This includes dealing with vendor payments, bills paid by cardholders, cash withdrawal of cardholders and salary payments.

• Settlements

This includes General Ledger and all debit and credit charges to cardholders.

• Reconciliation/ Rectification

This includes Suspense accounts and adjustment of Suspense accounts.

IT DEPARTMENT

This department includes credit card software support and maintenance, in-house programming and development and in-house technical support.

OPERATIONS DEPARTMENT

This department includes authorization, embossing, processing of items, fraud management, dispute resolution, mailing and archiving and customer services.

CASH DEPARTMENT

This department includes Receipts and Payments.

Receipts:

In this, the depositor’s slip is credited and posted in the concerned accounts.

Payments:

In this the cheque is handed over to the cash payment officer for payment.

CLEARING DEPARTMENT

This includes Inwards and Outwards clearing.

Inward Clearing:

This includes the cheques to be honored by bank. The SBP clears the cheque draft.

Outward Clearing:

In this the cheque of other banks sends for the collection.

ACCOUNTS DEPARTMENT

This department is concerned with revenues, expenses, assets and liabilities. In this all the vouchers posted during the same day are sent to the accounts department the next day.

REMITTANCE DEPARTMENT

Bank Alfalah uses several modes for transfer of funds. These are Demand Draft, Telegraphic Transfer, Pay order, Call Deposit, Pay slip, Money gram.

CREDIT DEPARTMENT

This includes credit marketing department, credit administration department, and trade finance service department. The department deals with extending the loans under the SBP regulations.

CREDIT RISK MANAGEMENT

Credit risk management involves new accounts, customer reassessment unit, verifications, collections and recovery. This includes area wise verification and also physical certification, legal notices and suits.

In case of vehicle, a due date diary is to maintained for lodgment of PDCs. If any cheque is returned unpaid then immediate telephonic contact with the borrower is done. In case contact is not established with the borrower then a notice with seven days grace period is served. If there is no response from the borrower within 60 days then repossession of the vehicle is done. Insurance is monitored on monthly basis.

Bank Alfalah SWOT ANALYSIS

During the internship of eight weeks of mine in Bank Alfalah Limited, Credit Card Centre Lahore, I am going for SWOT Analysis.

Strength

• Bank believes on customer service. In first week of internship, I worked on customer feedback desk for the purpose of improve the services.
• Customer feedback is collected on daily basis and reported to the Branch manager and  area manager.
• Bank Alfalah providing the credit card facility at minimum rate all over the Pakistan with other good benefits.
• Phone Banking is offered first time by Bank Alfalah in Pakistan.
• Bank Alfalah modernize its banking by providing the facility of Online Banking, ATM and money gram
• Bank Alfalah enjoying the large market share in car finance area.
• Home finance and agriculture loans are recently introduce by BAL at competitive rates.
• Quematic machine is used to provide facility to customers.
• Branch Manager and Chief Manager having good coordination with staff to make the environment friendly.

Weakness

• Customers are not properly guided to get the benefit of BAL facility.

• Online services are charging compare to other competitive banks.

Opportunities

• Banking industry is one of the most growing sectors in Pakistan. So Bank Alfalah should be continually expanding its network of branches.
• Muslims are more consciously differentiate the Islamic-base banking from interest-base banking. That is why there is large caution of expansion.
• Mobile banking should be started to compete in market.
• Establishing foreign branches.
• All products of Consumer Financing that include home financing, car financing, home appliances products and others should be introduce to all the branches in the cities of Pakistan.

Threats

• Banks in Pakistan those having large networks of hundred branches like MCB, HBL etc. are the great threats for Bank Alfalah Limited. Large networks can play the important role in banking business. BAL having small network of 95 branches compare to other key players in industry.
• Many other banks are now involving themselves in consumer financing at competitive rate. This is one of the biggest threats for BAL consumer financing products.

JOB DESCRIPTION

I am working as a product development officer, Auto Finance. Where I use to deal with such cases mentioned below.

• Mature Cases
• Issuance of NOC (Removal of Lien) of Vehicles
• Sanctioning Waiver to Mature Cases
• Sanctioning waiver to Delinquent Cases
• Repossessed Vehicle
• Release of Repossessed Vehicle
• Court Orders
• Out of Court Settlement
• Auction of Repossessed Vehicle
• Deceased Cases
• Insurance Claim Cases
• Write Off Cases
• Profit Maximization
• Customer Services

MATURE CASES:

My main target for mature cases is to look for the applications and requests of customer for waver on charges. I provide approvals for waiver to operations department. In case of Extra Charges like Late Payment Charges, Cheque Bounce Charges and Termination Charges imposed on customer due to any reason we sanction waiver to them. Percentage of waiver depends on the reason due to which charges imposed on vehicle. That might be on the basis of customer request or because of branch mistake.

When vehicle gets mature after paying all outstanding principle. Customer then apply for NOC through providing us some details and required documents like Application written by customer, Copy of CNIC, and details of Accounts. We gets all detail through operation department and forward the request to operation department if customer is eligible for NOC.

ISSUANCE OF NOC:

We Issue NOC to mature vehicle’s customers.

REPOSSESSED VEHICLE:

If customer does not pay his installments in time and DPD increased more then 90 which means customer did not paid installments during the period of 3 Months then our repossession company trace the vehicle and repossess. After Getting repossessed we sanction waiver upto 50% if customer request to pay-off the amount.

RELEASE OF REPOSSESSED VEHICLE:

After receiving amount by customer we provide approval for the release of vehicle following several terms and conditions.

COURT ORDERS

If customer apply to court for the release of his/her vehicle. Then we follow order of court either in customers favor or in favor of bank.

OUT OF COURT SETTLEMENT:

If customer tries to contact court for settlement we try to settle the account with customer on which both parties agree.

AUCTION OF REPOSSESSED VEHICLE:

If car is repossessed and in custody of our bank and customer is not ready to pay-off then we sell out the vehicle in Auction. Every month we give ads in newspaper for bidding and sale the vehicle to highest bidder after open bidding.

DECEASED CASES:

I Provide Approval for Waiver on All extra charges imposed on customer in case of customer die. 100% waiver is allowed being deceased customer. For this Nadra death certificate is needed and application from family o the deceased customer.

INSURANCE CLAIM CASES:

In case of accident (Total Loss) or Theft we allowed 100% waiver incurred after insurance claim.

Write off Cases:

There are two types of write-off

• Partial Write-off
• Full Write-off

The write off is necessary to remove the asset of the bank which is considered to be irrecoverable from the borrower. This write off policy is strictly bases on the guidelines and instruction issued from time to time by the State Bank of Pakistan. Only those classified non-performing loans are subjected to write off where all efforts for recovery have been exhausted and chances of recovery of debt is remote.

PROFIT MAXIMIZATION:

My new assignment is to maximize profit of Auto Loan Department where I look for the mature cases, send the reminders to customer and try to follow up with customer so that they could pay the remaining amount and collect their NOC and Excise file.

CUSTOMER SERVICES:

customer complaints/request or further information if required by the customer we help them out if possible try to comfort them by giving our best.

OBSERVATION & CONCLUSION 

I observed the bank Alfalah a financially sound bank. Its profits are increasingly year by year. Its staff is very good and sincere with the bank. Bank Alfalah under the leadership of Sheik Nahayan Mabarak Al-Nahayan has made significant progress in building and strengthening both the corporate and retail banking sectors in Pakistan. The bank attained number 2 positions in terms of its balance sheet size amongst the private banks.

Bank Alfalah views specialization and service excellence as the cornerstone of its strategy. The people at bank realize that innovation, creativity, reliability, customized, services and their execution are they key ingredients for their future growth. Revenues from these activities have started yielding dividends and they expect significant growth.

They are aware that they have stepped into the 21st century and they must meet its challenges by acquiring the highest level of the technology. They will thus be accelerating their technological advance to enable them to distribute their products and services through most efficient and high tech means. They say that they will continue to invest in the modern tools and substantial allocation to resources will be made to achieve this objective during the current year. Phone Banking and credit card have been introduced in many cities.

CONCLUSION

During this Period I had a comprehensive exposure related to bank’s functioning.

The current strategies of the bank include a plan of expanding 50 more branches in Pakistan. There rest of the strategies is properly followed and making the bank prospers. Here, I was compelled to propose my own strategy keeping in mind all the above factors. The strategy is not asking the bank to increase their costs as currently this is not the area for the bank to take a risk presently. However, I would, as a CEO hold on to the strategy of staying a leader and not to worry about other banks.

I would further recommend the bank to improve systems as only this will drive them in future and improve upon their infrastructure.

And lastly, I would propose an idea of a product for the bank, in the area in which they already have a competitive niche, which, again, considering the current situations cannot be taken away from them for the time being for another some time in Pakistan.

References:

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Bank Alfalah Strategic Management Project