The basic purpose of this report is to illustrate and to give a view of what I did and learned during my internship program at HR department of Head office (North) Bank Alfalah Limited.
This report includes the wide range of information through which one can easily understand at what point the BAL (Bank Alfalah Limited) stands and its major workings that I have experienced.
It includes the background and the introduction of BAL and its evolutionary time period in Pakistan. To understand it properly, it also mentions the vision and mission statement. I have also included the information referring to the business operations of the BAL.
The business operations of BAL that I have been discussed in this report includes the SWOT analysis that is one of its most important part which covers almost all of its strengths, weaknesses, opportunities they can avail, and threats that they face according to my information and experience. I have also mentioned about its financial position in the market as well as it also includes the information regarding the market analysis and strategies of BAL and also explains its competitive strategies that can differentiate itself from its competitors. With all this data it also explains the overall business process analysis of BAL.
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This report also throws a light on what I have experienced and done in the overall internship program and for this I have mentioned my all duties assigned to me during the internship, accomplishments and about the new knowledge that I have acquired. I have also added the information regarding the problems that I have encountered during the internship period at BAL. This report also illustrates the impact of my over all experience on my career.
BackGround of Bank Alfalah
Introduction to Bank Alfalah
On June 21, 1992 after the downfall of BCCI, the ministry of finance (Government of Pakistan) acquired its three branches and H.C.E.B (Habib Credit & Exchange Bank) was incorporated and commenced banking operations from November 1, 1992. According to the companies ordinance 1962, it engaged itself in commercial banking and related services.
After the H.C.E.B privatization in 1997 it was named as Bank Alfalah Limited (BAL). Its management with the collaboration of Abu Dhabi Group with its new technology and services carved a distinct position and captured a vast market share in a very less time.
Strengthened with the banking of Abu Dhabi Group and driven by the strategic goals set out by its board of management, the bank has invested in revolutionary technology to create an innovative and creative environment with an extensive range of new products and services.
In the influence of making its services accessible to the people, Bank Alfalah has embarked itself upon a rapid expansion program, aiming to provide the network that makes its services available at any time to any of its customers in all the major urban centers of Pakistan as well as trying to get international in coming period.
Today Bank Alfalah is operating all over the Pakistan with almost 321 branches in different cities. The total number of employees of Bank Alfalah in 2006 was 6,543 which at the present time has exceeded from 12000. The increase in the number of employees joining Bank Alfalah shows that people feel confident in Bank Alfalah as a prospective employer.
Besides being the most rapidly expanding bank in the market it also became the choice of many career focused individuals as it provides many benefits to them.
With the help of skillful management and under the strong leadership Bank Alfalah has achieved success in a short period of time and now it is trying to meet the needs of its customers today so that they can achieve the targets of tomorrow efficiently and effectively and to prove itself as the leaders in the market.
“To be the premier organization operating locally & internationally that provides the complete range of financial services to all segments under one roof”
“To develop & deliver the most innovative products, manage customer experience, deliver quality services that contributes to brand strength, establishes a competitive advantage and enhances profitability, thus providing value to the stakeholders of the bank”
The core values are the values which hold the foundation of an organization on which we work and conduct our selves. These are the vital few values that all members of the organization are expected to use, live by and demonstrate on a daily basis while executing their work responsibilities.
Few of the core values of BAL are mentioned below:
Extreme Customer Care/Focus
Courtesy and Respect
Honesty, Integrity and Trust
Commitment and Hard work
Creativity, Innovation and Quality
Justice and Fairness to all Stakeholders
Open, Honest and Direct Communication
Provider of growth and equal opportunity
Organizational Structure 4
Senior Executive Vice President
Executive Vice President
Senior Vice President
Assistant Vice President
Officers Grade I, II, III
Clerical Staff Non Clerical Staff
Organogram of HRD
Board of Directors 2
A board of directors is a body of elected or appointed members who jointly oversee the activities of a company or organization. The body sometimes has a different name, such as board of trustees, board of governors, or executive board. Total number of BAL board of director is 7, mentioned below:
H.E. Sheikh Hamdan Bin Mubarak Al Nahayan
Mr. Abdulla Nasser Hawalileel Al-Mansoori
Mr. Abdull Khalil Al Mutawa
Mr.Khalid Mana Saeed Al Otaiba
Mr. Ikram Ul-Majeed Sehgal
Mr. Nadeem Iqbal Sheikh
Mr. Sirajuddin Aziz
Director & CEO
Management Team 3
Some of the major members of the management team of BAL
Mr. Sirajuddin Aziz
Chief Executive Officer
Mr. Parvez A. Shahid
Co-Chairman Central Management Committee
Mr. Shakil Sadiq
Chief Operating Officer
Mr. Talib Rizvi
Retail & Middle Market, North
Mr. Adil Rashid
Mr. Shahab Bin Shahid
Retail & Middle Market, South
Mr. A. Wahid Dada
Mr. Adnan Anwar Khan
Retail & Middle Market, Central
Mr. Nadeem Ul Haq
Technology & Operations
Mr. Mohammad Yousuf
Mr. M. Iqbal Saifi
Mr. Arfa Waheed Malik
Corporate & Investment Banking
Mr. Ijaz Farooq
Mr. Bakhtiar Khawaja
Mr. Yasar Rashid
Audit & Inspection
Mr. Zahid Ali H. Jamall
Chief Financial Officer
Mr. Falak Sher
Chief Compliance Officer
Mr. Tariq Mir
Mr. M. Mudassar Aqil
Human Resource & Quality Assurance
Mr. Shahid H. Kazi
Mr. Ather Shehab
Establishment & Administration
Mr. Haroon Khalid
Mr. Hamid Ashraf
Legal & Company Secretary
Mr. Imtiaz Ahmad Sheikh
Mr. Hamid M. Mirza
Head of Marketing
Mr. Nasim Ahmed
Head of Equity Portfolio
Mr. Umer Hayat
Head of SAM South
Mr. Muhammed Omer Dogar
Head of SAM North
Mr. Khurshed A. Khair
Head of Special Projects
Mr. Zafar Iqbal
Head of Treasury
Mr. Syed Hassan
Head of FI
Mr. Yawar Ali Gulani
Head of Systems, Policies & Procedures
SWOT Analysis 5
SWOT analysis includes strength, weakness, opportunity, and threats to any company or a business. Through this a company or a business can easily understand that being in a competition at what stage they are standing at the present time, what are their strengths that make them differ from other competitors, what threats they can face , what are their weaknesses and what opportunities they can avail in the up coming period.
Talking about strength then we should know that BAL was one of the bank which stood stable during the reign of financial and economic crisis and its strength that made it stand firm under such disastrous circumstances was the support of strong Abu Dhabi Group. The Abu Dhabi Group (ADG) is one of the largest consortiums in the Middle East with diversified interest ranging from oil and gas exploration, hospitality services, telecommunications, banking and financial services, to construction and property development. In Pakistan ADG has made sizable investment that includes Bank Alfalah Limited (the fastest growing private bank in Pakistan), Warid Telecom Private Limited which has brought in an investment of US$400 Million into Pakistan, and a 51% stake in United Bank Limited (a leading bank in Pakistan with over 1,100 branches). ADG’s overall investments in Pakistan have already crossed US$774 Million, making it one of the largest foreign investors in the country’s history.
Trained Work Force:
The work force the BAL is using is one of the most efficient and effective group of people who are recruited through a proper recruitment and selection procedures according to the set standards of BAL. Working at the BAL’s Head Office I have observed that all the officers working are competent enough to give their best according to their designations and assigned duties. The candidate selected for each designation is according to the preferred qualification. There are officers from grade 1 to 9 and the officer on each grade is according to its qualification and experience that is required by the BAL for a specific grade.
One of the other feature that can be considered as its strength is its fast and wide growing network of branches as compared to other banks. BAL has expanded itself in such a less time that has reached to almost 321 branches with more than 10000 employees. If the bank keeps on expanding with this speed there are possibilities that it can become a Pakistan’s leading Bank in the future.
BAL is providing a facility of free online transferring of funds, which no other bank is giving.
One of the core strength of the BAL is its Halal banking service. With a strong market in Middle Eastern countries. This Halal banking can be included in strength of BAL as its accounts are linked to its conventional banks and this facility is not given by other Islamic banks.
In this world it’s an obvious fact that no one living or dead can say it self 100% perfect. In the same way if Bank Alfalah have its strength on one hand on the other hand it also possesses some weaknesses. Some of them that I have observed during my internship program are mentioned below:
High Employee Turnover:
The key source and power of any organization includes its employees. As I have observed that the employee’s turnover ratio is increasing and its increase above a level is not a good sign for the Bank. Some of the main problems that I have observed at BAL are mentioned below:
Most of the employees suffer from work burden
Uneven distribution of work
Not very timely promotions
Resisting New Changes:
Banks deposits have been increasing @ 30% which is a very healthy sign. It indicates that the Bank is in profit and that it can be a time for introducing new changes. Here new changes indicates towards adopting new technologies, services & products according to the updated conditions and needs of the customers, that can benefit the Bank Alfalah.
As I have observed that they have their own MIS software system that they use for keeping their data internally as well as externally. This MIS system has to be used much more efficiently and the employees should be properly trained to use it properly and efficiently. As during my internship my supervisor told me that they can take much more work from their MIS system as they are taking in the present time. The problem is that they have newly purchased it and it will take a little bit of time to take its full advantage.
No Employees Feedback:
Another weakness that I have observed in the internal environment of BAL is that there is no specific line through which an employee can give its recommendations or convey the problems he is facing.
As the world is changing day by day and with this change the opportunities never end. It’s a saying that opportunities end only when u stop availing them. During my internship at BAL’s Head Office I have observed that in this competitive era BAL possess numerous opportunities which it can avail to get itself in the line of world’s best financial institutes.
Few of the opportunities that I think BAL can avail are mentioned:
Expansion of Network:
Even if BAL is running an extensive branch network growing strategy, and it has successfully launched many branches all over the Pakistan still it have to compete many banks whose branch network is much higher than BAL’s branch network. The opportunity that lies here is that as BAL is one of the leading banks in the region and its clients are increasing day by day due to this they can increase their branch network much faster and easily, that is much beneficial for them.
Capitalize Information Technology:
One of the opportunities that is present in this 21st century is the use of information technology. BAL can avail the new services of IT and can create a service of its universal account as the foreign banks, to enhance its online facilities.
According to the world survey Islam is one of the fastest growing religion on this planet. Due to this region the advantage and opportunity that is present for the BAL is to spread its Islamic Banking sector towards the western region. With the growth of Islam in the western world, Bank Alfalah has the opportunity to expand beyond the middle east and into markets in the United States and Europe in order to offer Halal banking services. Bank Alfalah notes that Islamic banking is currently growing at twice the rate of conventional banking throughout the world.
Poor Economic Conditions:
Despite of the high risk and disastrous circumstances of the economic crisis Bank Alfalah is one of the banks which stood firm even in such conditions. It’s clear to everyone that BAL was able to stand in such crisis but it cannot neglect the fact that economic crisis is one of the threat that can bring adverse impact to it.
Natural disasters like floods, earthquakes, etc can also be added in the threats of the BAL, as it always brings disastrous conditions that can’t be controlled and these things also affects the banking sector as it disturbs the economical conditions of the country.
Mushroom Growth of Competitors:
However BAL is one of the fastest expanding banks in Pakistan but it cannot neglect its already present as well as new competitors in the market. Till now total number of branches that BAL posses are almost 321. Few other banks in Pakistan are there which have more than 900 branches due to this reason BAL have to keep on the competitive strategies and have to keep its standard to compete its competitors.
In today’s contemporary business, marketing is the major tool to get in a competition and carve a distinct position in the market. As Bank Alfalah has number of competitors, it needs to have efficient marketing strategies to attract its customer’s loyalty.
BAL basically emphasizes on its customers by creating a segmented market targets. By understanding the need of the specific segment they launch their product or service .i.e. if they are focusing on agriculture then they will first focus on the needs of the client related to this segment and then they will provide the service or product according to that need .e.g. Alfalah Zaraie Sahulat. In this way BAL first identify different segments of the market and then target each segment by fulfilling their needs.
Mostly for general banking BAL relies on Customer relationship management as well as Public relation.
Customer Relationship Management:
In CRM Bank Alfalah Limited tries to stay in touch with their customers by keeping them aware of the updated news as well as products & services that can be beneficial for them. Their main focus and goal is always on the satisfaction of the client and for that they try to keep the client aware of the kind of information that customer may need.
In Public Relation BAL sponsors or helps other sectors of businesses that may be restaurants, shopping malls, hotels e.t.c by providing them financial aids and different schemes and packages for their customers. In return they get a good will as well as their profit. In Pakistan we can find many places where BAL is using its Public Relation strategy these places can include Hyper Star shopping mall, Mini Golf and many other businesses
Products & Services
As BAL have to compete its other competitors that’s why it have to keep up its revolutionary and innovative banking by providing a wide range of products and services designed to suit the needs and preferences of their highly valued customers. For understanding their customers properly BAL arranges different meetings and focus on the customer care and relation management, from where they try to take information about the customers and their needs according to their segments. After understanding the needs of its customers it launches the suitable services or products. An overview to its products and services according to its sector is mentioned.
Current account includes three different kinds of accounts i.e.
Basic Banking Account (BBA)
Kamyaab Karubar Account.
Saving account is further divided in to:
Non Fix accounts.
It is further divided in to:
Alfalah Mahana Amdan (AMA)
It is divided in to:
Royal Profit Account
PLS (Profit and Loss Sharing account).
Foreign Currency Account
Safe Deposit Lockers
Alfalah credit cards
Alfalah credit cards are divided in to 3 types of credit cards that are:
Alfalah Zarie Sahulat
“The amount of money the customers pay for the product of a company”
As discussed before BAL offers different products and services to its customers. Pricing of product means the commission to be paid by the customers in return of services provided by bank. Different products have its own way of pricing and commission.
Commission paid for the services mainly includes:
Markup / interest
Fees and bank commissions etc
These charges and commissions are according to the prescribed Schedule of Banking Charges (SOC) that’s keep on changing time to time and is issued by the bank periodically, generally after six months.
There are a lot of controversies regarding to the pricing of financial companies. Some scholars call the mark up received by the bank as the rent for capital while on the contrary some call it Riba.
Being in an age of competition there are numerous options for the customers to choose any financial company for fulfilling their financial needs. Promotion is one of the basic tools that differentiate one company from other. This differentiation can affect the customer while choosing any of the products of any specific company. These days the pressure of competition is so much increased that almost every company have to use promotion strategies to keep on moving in the market. The promotions ways through which BAL advertise itself and try to create its good will are mentioned below:
As electronic media is very effective marketing medium due to its audio and visual aids that’s why many banks including BAL use electronic media for its advertisements. As compared to other banks BAL uses less electronic media for its promotions but the ads that are made mainly emphasizes on “The Caring Bank”, the message in its advertisement. For example the use of credit card of Alfalah by a couple when they ran out of cash and the father bought a car through car finance service of bank Alfalah.
Another electronic media they have used for their products advertisement is its website. That is made in a way that the customers can easily access and use it.
Another way through which BAL advertises its products is the print media. Print media advertisements are mainly printed in English and Urdu newspapers around the Pakistan. And mostly the message these advertisements give is that what financial services BAL is providing. These Alfalah advertisements are so beautifully made that synergy Advertisement Company was awarded a gold award by the APNS (All Pakistan News Society) in 2004.
Bank Alfalah Limited uses its Public Relation management to sponsor different events specially the sports. In sports mostly BAL sponsors cricket tournaments in Pakistan. During the tournaments specially the cricket, millions of people are watching it at that moment and it’s the best time for BAL to advertise its products.
“The activities a bank undertakes to make products and services easily available or accessible to the customers”
One of the basic objectives of the Bank Alfalah is always keeping their customers on priority by staying in their easy access. Almost 321 branches of Alfalah are running at the moment all over the Pakistan and all of their locations are geographically well positioned. BAL mostly tries to open its all branches near commercial areas which can be easily accessible to its valued customers. i.e. The Head Office Shahdin Manzil of BAL is on the Quaid-e-Azam chok Mall Road , infront of assembly house Lahore and this areas one of the most busy commercial areas of Lahore. In the same case all the branches are opened by going through the geographical measures that may suits the easy access of the clients.
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Competitors should always be studied with great care, because competitors can greatly influence an organization position. Bank Alfalah has a lot of competitors because in a short span of 5 year it has achieved what not many banks had achieved. This leads to competitions. Similarly Bank Alfalah keeps a tag on the competitors move or any other new technology it is introducing, because to sustain in the market, a competitor has to be viewed with a lot of care.
As the Banking industry of Pakistan started to grow, more and more banks including the international as well as domestic started to enter in the market of Pakistan. For Bank Alfalah it has to face both kinds of competitors domestic and international. The major competitors of Bank Alfalah are mentioned:
Habib Bank Limited (HBL)
Muslim Commercial Bank (MCB)
MCB as well as HBL are the banks having more than 1000 branches all over the Pakistan and they can be included in the major competitors of the BAL. In the same case Askari bank is also one of the main competitors of BAL.
Being in the competition BAL have to stay focused on its goals as well as it have to keep an eye on the type of services and products other banks are giving or are going to give in future. The basic goal of the Bank Alfalah Limited is not to stay focused on the competition but to stay focused on the changing needs of its clients and due to these changing needs they have to use their innovative and creative ability to introduce new services and products according to the needs of the clients. This goal makes the BAL to enter in the market and that makes it compete other Banks.
Bank Alfalah Limited don’t have any specific kind of strategy for any specific bank because it have to focus on overall market that’s why it have to use the strategies and the policies that can survive in the market and fulfill its goals of making itself people needs oriented bank.
Basically BAL uses its offensive strategies as it introduces new products and services by the passage of time. As their main focus is always on their client, they try to understand the needs of their client and on the basis of these needs and requirements BAL introduces new services and products. BAL always tried to stay a step forward in introducing new products and in this pursuit it keeps itself focused on the market and the needs of the market.
Business Process Analysis
Bank Alfalah, being in the competition has to provide the updated services according to the needs of its customers. BAL is providing a wide range of products and services to its customers. As BAL is practicing general banking that is further divided in to Consumer banking and Consumer finance. The products and services provided by BAL are mentioned below:
Current account includes three different kinds of accounts i.e. Basic Banking Account (BBA) , General Account , and Kamyaab Karubar Account.
Basic Banking Account:
This account requires 1000 PKR to be opened and for there is no limit for maintaining it. This kind of account is mainly used by students as it requires a less amount to open it and requires no capital to maintain it.
This account requires 5000 PKR for its opening and 5000 PKR for maintaining.
It requires 5000 PKR for opening and 5000 PKR for maintaining this account. This account differs itself from other accounts by giving facilities as free cheque book , facility of DD (Demand Draft), Pay order, and CDR.
Saving account is further divided in to Fixed and Non Fixed accounts.
It is further divided in to Alfalah Mahana Amdan (AMA) and AMA Plus.
AMA: This account is fixed for 3 years, it requires minimum 50000 PKR for its opening and up to 15million PKR can be deposited in it and it gives 10 % of profit on the deposit.
AMA Plus: This account is fixed for 1 year, it requires 100000 PKR for its opening and it gives 10.5% of profit .
It is further divided in to Kifayat Account, Royal Profit Account, and PLS (Profit and Loss Sharing account).
Its benefits are that its cheque book is free of cost. 10000 PKR are required for its opening as well as for maintaining it. On up to 1million deposit it gives 7% of profit but if the amount of deposit exceeds from 1million then profit with the rate of 5% is given on the exceeded credit. If in one month more then 3 with drawls are made then the profit decreases to 50 %.
Royal Profit Account:
Minimum of 25000 PKR required for opening and 5000 PKR for maintaining. Profit is given with the rate of 5%. If the deposit is up to 10 million then the profit rate is negotiable. With drawls can be made through this account.
PLS (Profit & Loss Sharing Account):
It requires 5000 PKR for its opening as well as for maintaining. It provides profit with the rate of 5% and if the balance is well maintained then the profit rate is negotiable.
Foreign Currency Account:
It includes both current and saving accounts for Pakistani as well as NRP’s. Its opening requires cash in any currency that is equal to 10000 PKR.
Bank Alfalah limited, in association with MoneyGram, offers transfer of funds service to Pakistan. MoneyGram is person to person money transfer service that allows consumers to receive money in just a few minutes. MoneyGram is available in over 180 countries and in more than 190,000 locations worldwide.
Safe Deposit Lockers:
Bank Alfalah provides safe deposit locker facility to its customers for keeping their valuables like documents, securities and jewelery etc.
These lockers are maintained according to their size as small locker costs 2000 PKR per year , medium locker requires 3000 PKR per year, and large sized lockers requires 4000 PKR per year. In case of any theft bank insurance is up to 500000 PKR.
BAL provides the service of car leasing as well as financing. Now any one belonging whether to corporate or personal sector have the option to get their vehicle leased or financed by BAL.
Alfalah credit cards:
BAL also provides the credit card facility. Alfalah credit cards are divided in to 3 types of credit cards that are:
We can call it a perfect card combination for all segments of salaried & professional individuals.
Alfalah Titanium MasterCard lets the customers pay for their shopping, travel, entertainment, meals and much more. With Alfalah Titanium MasterCard and PIN (Personal Identification Number) customer can withdraw any amount upto 50% of his/her assigned credit limit.
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