A Case Study On Bank Alfalah Limited Finance Essay

A Case Study On Bank Alfalah Limited Finance Essay

I have completed my six hebdomads internship in Bank Alfalah Limited Arifwala. I tried my best to derive practical cognition from this chance. My study starts with the first chapter Background of Bank Alfalah Limited, vision and mission of the bank. Bank Vision & A ; Mission statement shows the focal point of bank, the overall range and the ground of being. Second chapter start with the concern operations of the bank and includes SWOT analysis which is really of import for any organisation. Third chapter is about concern procedure analysis The concluding chapter is larning as a pupil houseman in this chapter I include my responsibilities, achievements, new cognition acquired, jobs which incurred during my internship and impact of this internship into my calling.

Bank Alfalah Limited provided me a great functionary cognition through at that place positive response to me in which my full concentration is besides involve to larn more and more within a little continuance of this cherished clip. So, I have to the full satisfied from there honest cooperation with me.

Now I have knowledge about assorted official activities and besides cognize how an organisation manages its concern procedure.

Chapter No.1

BACK GROUND OF BANK ALFALAH LIMITED

1.1 BACK GROUND OF BANK ALFALAH LIMITED

Bank Alfalah Limited was established on June 21st, 1997 as a populace limited company under the Companies Ordinance 1984. Its banking operations started from November 1st, 1997. Bank is engaged in commercial banking and related services as explained in banking company ‘s regulation, 1962. Bank is soon runing through 321 subdivisions and 266 province of the art ATMs with the registered at head office of Karachi

As its beginning, as the new introduce in 1997, direction of bank has applied schemes and policies to cut a different place for bank in the market topographic point. Strengthened with the banking of the Abu Dhabi Group and driven by planned ends set out by its board of direction, Bank has invested in recent engineering to hold an addition scope of merchandises and services.

This facilitates our demand to civilization of progress and seeks out synergisms with clients and service suppliers to guarantee changeless services to its clients. Organization perceives demands of its clients and contests them with quality merchandises and service solutions. Passing fives old ages, it has comprised as one of the celebrated fiscal establishment in the part endeavouring to run into the demands of future and present.

Merchandise Portfolio

Bank Alfalah Limited non merely complete but besides customizable to contend the demands and penchants of the clients. These strategic features of the portfolio have helped Bank Alfalah Limited to confront disputing economic conditions.

The merchandise agenda continues to finish and guarantee the banking necessities of non merely the conventional consumer, but the demanding fiscal demands of the corporate sector as good.

The batting order includes:

Car Finnancing

Rupee Travelers Cheques

Home Loans

Real clip On-line Banking

Money Gram Remittance Services

Recognition Card games

Alfalah Zarie Sahulat

Hilal Cards of Visa Electron with universe broad acceptableness

Dedicated professionals

The Bank Alfalah Limited squad comprises of devoted professionals prepared with a diverse aggregation of accomplishments, immense experience and pro client attitudes. The direction concentrates its energies on doing informed economic determinations, interpreting it into superior returns for our investors and clients. This careful place has created a interactive managerial formation foremost to betterments in profitableness and a sustainable competitory benefit for the bank.

1.2 Bank Alfalah Arifwala Branch

Bank Alfalah Arifwala subdivision was established in August 13, 2005. Qaboola Road Arifwala, where subdivision of Bank Alfalah is situated, is in the out side of the metropolis which gives this subdivision an increased importance. First twenty-four hours of BAL collect a sedimentation from different client about four deficiencies. Bank Alfalah has major rivals, Habib Bank, Faysal Bank, Punjab Bank and National Bank earned immense net incomes in this country. Therefore, to capture the concern and to aim this really of import country, Bank Alfalah launched its Arifwala Branch, with a bright and clear vision of client service.

At the clip of my internship, the subdivision was go throughing though the imitial five old ages of its being and therefore had a little figure of staf members. It has a sum of 17 employees, runing from the Bank Manager to the Tellers. Other than these officers,

There were about eight workers runing from the Security Guard to the Cleaning Boys to the in charge of the kitchen etc.

So, I have been much lucky that I got an chance for working in concerned subdivision, and confronted with adequate exposure and chances to larn.

1.3VISION

“ Our vision is to be a taking fiscal establishment, with a niche in countries where we have a competitory advantage with complete banking solutions. Our focal point is on bettering public presentation in each of our concerns to accomplish consistent and superior returns for our extremely valued clients and stockholders. ”

1.4MISSION

“ Our mission is to keep a competitory border in quality banking, client service and net income public presentation. Our activities are geared towards doing Alfalah a responsible corporate citizen. The accent on quality and invention will stay our cardinal mission statement. We will go on to beef up our place as the taking supplier of quality fiscal services in Pakistan. ”

Chapter No.2

Business Operations

Business Operations

2.1 ORGANIZATIONAL STRUCTURE / ORGANIZATIONAL CHART

2.2 BRANCH HIERARCHY OF BANK ALFALAH LIMITED IN ARIFWALA

Mr Ejaz Ahmad

Branch Manager

Muhammad Afzal

Manger Operationss

Mr Muhammad Shabbir

C..D. Incharge

Mr Muhammad Saeed

Officer Op/Clearings

Mr Muhammad Farooq

Histories Officer

Syed Haider Raza

Relationship Manager Credit

Mr Tahir Abad

Rural Finance Officer

Mr Hammad Zahoor

A/C Org & A ; Chq Bk

Mr Najam Ul Saqib

Chief Cashier

Mr Muhammad Ali

Cahier

Mr Suleman Athar

Teller

Chapter NO.3

SWOT ANAYLSIS

Swot Analysis

An analysis indicating towards the organisations strengths, failings, chances and menace is termed as SWOT Analysis. Such an analysis is really of import for the direction in retaining the strength, get the better ofing the failings, capitalising over the emerging market chances, and carving ways to successfully undertake with the menaces and finally change overing them in the strengths for the organisation.

During six hebdomads of my stay at Bank Alfalah Arifwala Branch, I have come across the undermentioned SWOT analysis of the bank.

3.1 STRENGTHS

Bank Alfalah is taking As Compare to Competitor:

Bank Alfalah Limited is the taking as comparison to other rival because this bank provides many installations to our client without free of cost. Therefore bank alfalah has good reputation to other rival such as fasyal bank, habib bank, and allied bank

Full Day Banking

One can derive the benefit of the services provided at the bank boulder clay 6:00 P.m. which is extremely utile for those clients who find it hard to go forth their officers in the forenoon. As evaluate to competitor bank alfalah shutting clip terminal of twenty-four hours is really right for client. Any client should be leting 9:00 A.m. to 6:00 P.m. our hard currency will be sedimentation and withdraw. Working clip of bank alfalh is more smart as comparison to rival.

Customer Oriented Banking

Bank Alfalah Arifwala subdivision gives right of manner to client oriented banking where the client receives immensely competent services in a extremely better environment. It

gives the opportunity of sing new criterions in banking. Designed specially for those who understand merely the finest things in life, Priority Banking offers the really highest degrees of modified banking to equivalent client ‘s alone place.

Electronic Banking

First clip in Arifwala bank Alfalah is commence electronic banking system such as ATM, online etc.The revolution in the banking in the signifier of electronic banking operations have opened avenues of brilliant, efficient and speedy services salvaging the clip and costs of the clients and fortunately Bank Alfalah LIMITED is among those few Bankss who are earlier now harvesting the reimbursement of electronic traffics.

Telephone Banking

Phone banking service is really fine-looking for those categories of clients who do n’t hold clip to personally come to the bank i.e. banking on the phone line therefore salvaging the valuable clip of the clients

Ethical Concerns and Public Image

Bank Alfalah Arifwala subdivision demoing fright for the people, rules, and atmosphere bask good public rank and are able to roll up the net income in the long tally. Bank Alfalah Limited direction is rather antiphonal to this affair.

Merchandise Knowledge

Staff of BAL Arifwala subdivision is extremely qualified as compared to rival. Every staff has complete cognition about bank merchandise. BAL gives a particular preparation to a staff about merchandise.

Pleasant Environment

Bank Alfalah Arifwala subdivision to the full air conditioned and roof with selling. Bank alfalah provide attractive environment to our client. Bank alfalah environment is really better as comparison to competitor such as national bank and ubl bank etc.

Loan Provide To Staff

It is supplying different types of loans but charge low Mark-up bases to its employees. I.e. Car Loan, Motorcycle Loan, Computer Loan, House Building Loan etc.

Compliant Cell

Customers are allowed to give suggestions refering banking services. If there is any ailment by the client the bank governments examine the grounds for ailment. Complaint monitoring system is an superb one at Bank Alfalah that shows that bank rules more to its clients.

Following strength of Bank Alfalah Limited

Reposition squad for recovery vehicle debit signifier debitors

Quality confidence service

Alfalah Kamyab Karobar Account

Very less default ratio so other bank

Favorable merchandise combination ( velocity of service free of charges )

Environmental betterment ( centrally air conditioned, neat, clean, ventilated, lighted and decorated )

Manager relationship with the market

Organizational trust and reputation in the market

3.2 WEAKNESSES

In my sentiments these are the points that might be damaging to the efficiency and profitableness of the bank.

Manual Book-Keeping

Although the Bank Alfalah has automated accounting system but, still the bankers use to do their entries in the accounting registry. Such as remittal officer many entries keep in manual book-keeping.

Lack of Knowledge and Coordination

Normally, the attitudes of the employees are non serious with each other and have professional covetousness, which is non healthy for the bank. Mostly staff of bank alfalah of Arifwala subdivision has deficiency of cognition and coordination. As every staff has non complete cognition about merchandise and regulations and ordinance. Therefore client should non fulfill with staff.

Centralization

There is a high degree of centralisation in the bank. Approximately all the decision-making is in the custodies of the upper direction. But centralisation is utile up to a certain degree otherwise it becomes unqualified and at times dearly-won excessively. I personally practical that hold occurred in the operations of the employees merely due to the truth that they had non got any bids from the caput office.

Lack of Training Facilities

Bank Alfalah Arifwala subdivision has non human resource section. Due to presently there is no definite preparation plan arranged for the new recruiters. They have to larn based on their observations and besides their errors. It takes a spot clip for the fresh one to larn the banking the consequence is huge sum of bloopers, errors etc. ensuing in pecuniary and non-monetary losingss for the bank. There is force per unit area non merely on the new scholar but besides on the individual placed upon with this duty.

Poor Service Quality

Service quality of bank alfalah does non harmonizing to criterion. Otherwise client is non satisfied with bank service. Because checque is non clear and hard currency is non available on counter at a clip due to client face many job.

Poor It Equipment

Main failing of Arifwala subdivision has non standardized IT equipment and due to online system of this subdivision is non efficient. Otherwise during history opening waste a lots clip of client as comparison to rival.

Recognition Procedure Is Very Difficult

Recognition apparatus at Bank Alfalah is such that the recognition client is handled at different counters. Such cleavage of recognition blessing processing is utile for managing recognition related undertakings but client who comes to the bank for acquiring recognition installation does n’t understand it. He wants that he must be handled at one topographic point. So the drawn-out procedure of recognition blessing creates a feeling of dissatisfaction among clients.

Following failing of Bank Alfalah Limited

Very less default ratio so other bank

Favorable merchandise combination ( velocity of service free of charges )

Environmental betterment ( centrally air conditioned, neat, clean, ventilated, lighted and decorated )

Manager relationship with the market

Organizational trust and reputation in the market

Uncontrollable admin disbursals

Lose control of securities

Larceny and pilferage by the clerical staff

Trouble hiting in electrical, mechanical and fitting contraptions

Most of the staff is out stationer.

Insecure wellness policies of the bank for staff

No selling accomplishments and attempts by the organisation

3.3 Opportunity

A portion from the 1s discussed in External Factors Evaluation Matrix, the bank is confronting the undermentioned menaces and chances presently.

These are positive external environmental factors set uping the organisation.

It must construct up its human resource subdivision in subdivision. It must be regulated and get down working of making consciousness among people of banking.

Bank Alfalah Arifwala has non yet entered in concern of auto funding. It can capture the market and easy gain net incomes.

High rate of population growing

Healthy fiscal activities and comparative advantage for the client.

Seasonably repayment systems.

Low costs and write off cutting policies.

High rate of return on sedimentations.

Distinguishing the merchandise lines

Bank Alfalah of Arifwala subdivision can diversify its support base and earn foreign exchange by puting into capital markets.

Bank Alfalah should believe more industrial sector and agribusiness sector. They should supply fundss to the husbandmans both on short term and long term footing.

3.4 Menace

Other foreign fiscal institutes like FBL SCBL etc have strong banking policies, people might toward these fiscal institutes to procure their investings, minutess, and related services.

The competent employee of Bank Alfalah may travel to other rival Bankss, as the wage in Bank Alfalah is less than the wage offered by other Bankss

The figure of Bankss increasing in Arifwala twenty-four hours by twenty-four hours and they are provided good client services as compared with the Bank Alfalah, so it may lose its market portion in the hereafter.

Fiscal environment is altering twenty-four hours by twenty-four hours ; new engineerings are introduced by rival ‘s Bankss that provide clients by efficient and speedy services

Rumor of bankruptcy in October,2008

Load casting

High rising prices

Political instability

Terrorism

3.5 Selling Scheme

Selling policies are besides one of the most of import policies because they are related to the growing of the organisation. Selling for a bank would intend.

Bank Alfalah marks that client whose income degree is above 40,000 1000s. The ground is that if some clip bank wants to loan to them so they return easy otherwise bank lose his client every bit good as his money. On the other manus, Bank Alfalah mark category is includes all the categories of the community like upper, in-between and low degree category all are their targeted clients.

To fulfill the demands and demands of its mark clients it provides its merchandises to them who so promote the merchandises to small-scale users. Bank Alfalah supplies them his merchandises at better as compared to other its rivals. All of its merchandises satisfy the demands and demands of the little users in national and international degree.

Bank Alfalah use the undermentioned schemes for aiming his clients and mark market

Meeting with history holders on day-to-day footing

Having complete client profile

Contact with agents of different concern houses

Contact with concern proprietors

Creation of new merchandise and services.

The bank selling must be consumer oriented.

Giving good services and keeping good dealingss with the clients

Bank Alfalah Arifwala subdivision offer a particular rate to client

These policies can be implemented by supplying the right merchandise and service to the client at the right topographic point, at the right clip, at the right monetary value.

Promotional scheme

Bank Alfalah use promotional scheme as first defined his mark market and so develops promotional run for aiming them and present his merchandises and service to them. For advancing his merchandises the bank Alfalah use the Following strong tools of bank Alfalah tools for the better publicity of its trade names:

Television ( Cable )

Radio

Booklets

Loyal Customers

The promotional scheme of bank Alfalah is designed to increase the gross revenues by offering an incentive, such as excess merchandise, free gifts, fresh notes, and free online etc. The promotional scheme of the company is based on

Trade publicities

Consumer publicities

Promotional runs provide added inducement, promoting the mark market to execute some incremental behaviour, which is extremely necessary. Communication with

The mark market should be ever there and Electronic and Print Media should be used for publicity of fiscal merchandise.

For this intent the bank Alfalah expeditiously uses the Pull scheme to draw the client toward the trade name. On the other manus its Push scheme helps the company to force the merchandise towards the consumer. This pull and push addition the company ‘s gross revenues volumes.

3.6 COMPETITIVE STRATEGY

From cognizing Bank Alfalah clients ‘ demands to understanding employee demands, from using modern engineering to doing responsible societal parts, from heightening stake-holders ‘ value to practising corporate moralss, Bank Alfalah is continuously and systematically endeavoring to turn to newer challenges with a individual motive – the power to animate and be inspired. Organizational end and scheme define the intent and competitory techniques that set it apart from others organisations. Goals are frequently written down as an digesting statement of company purpose.

Customer Relationships

Knowing Bank Alfalah clients and their demands is the key to Alfalah concern success. Bank Alfalah merchandises and services are prepared to touch and better the quality of lives of all sections of society. Service quality criterions are planned and monitored to guarantee a consistent and suited client acquaintance. Bank Alfalah client relationship director is good prepared and good trained to supply most efficient and individualized service to each and every client. Bank Alfalah merchandises and services are every bit diverse as market sections.

Employee Relationships

Bank Alfalah staff is most valuable plus. The human resource doctrine at Bank Alfalah Limited focuses on multi-talent hiring, professional training, requisite

preparation and meritocracy based wages system. Bank Alfalah lays great accent on the development and nurturing of Culture, a cohesive teamwork, where each relies on the strength of the other and together they achieve common aims.

Ethical Valuess

Because the right may non ever be obvious, BAL must be guided in every action by a set of chiseled values, regulating BAL determinations. BAL understands that its committedness to fulfill clients ‘ demands must be fulfilled within a professional and ethical model. Bank Alfalah subscribe to a civilization of high ethical criterions, based upon development of right attitudes.

The undermentioned primary nucleus values provide the guiding rules for Bank Alfalah corporate behaviour.

Committedness

Integrity

Fairness

Team-work

Service

As portion of Bank Alfalah internal communications plan, these nucleus values are inculcated in employees through internal memos, postings and most significantly prima by illustration.

Chapter NO.4

BUSINESS PROCESS ANALYSIS

4.1 Departments

Account Opening Department

Finance and Account Department

Cash Dealing Department

Credit Department

Remittance Department

Now we see the maps of each section working at each subdivision of Bank Alfalah Limited of Pakistan.

4.1.1 ACCOUNT OPENING DEPARTMENT

Bank provides installations of its merchandises or services, hard currency and financess transfer to its clients through their histories in its subdivisions. Histories opening section makes its possible for clients to open their histories in bank. Accountholders are provided full installations on utilizing and services of the bank ( rates of involvement ) .

Eligibility Criteria

Account holder must hold:

18 twelvemonth of age

Income beginnings

Pakistani nationality holder

Not defaulter of banking system

Introduced by an accountholder

Documents Required

CNIC of applier

Following in KIN ( surrogate to near accountholder in his/her absence )

Income/business cogent evidence ( letterhead tablet in instance of concern as exclusive proprietary, partnership title in instance of concern as partnership )

Account opening signifier ( available at bank subdivision )

Security

Account gap is really sensitive section. This section contains certification and information about client ‘s record. This section provides information about position of histories to accountholders. BAL gap section provides information to accountholders no other individual is given information about any history.

Account Opening

When a client fulfills all the demands, he/she is eligible to run an history in bank. He/she fills the application signifier and marks it in presence of history opening officer. Account opening officer verifies signatures on paperss and forwards application to subdivision director for blessing. After rating of application subdivision director approves application. After blessing from subdivision director history opening provenders client ‘s information into database issues an history figure which he uses for hard currency entry and with backdowns or reassign from bank. Customer ab initio deposits money as initial sedimentation into his / her history.

Cheque Book Issuance

Accountholder marks a petition for the issue of check book. Cheque book contains checks used for dealing ( Debit Transfer or Transfer Transaction ) into his/her history. Cheque book requisition signifier is sent to head office for issue of check book

History Statements

Account opening provides history statement to clients on demand. An Accountholder fills petition ( Application Form ) for issue of history dealing statement for specific period of clip. Account Opening Officer after bear downing statement fee from history issues an history statement to client.

Stop Payment or Transfer against Lost Cheque

If accountholder loses his one or more check, he / she fill application to halt payments against that check. Account opening section blocks payments or reassign against requested check.

Closing an History

When an accountholder no longer wants to keep an history in he/she has option to shut the history. If accountholder returns cheque book and pay history shuting fee, Account opening officer stopping points that account from database for farther minutess.

4.1.2 FINANCE AND ACCOUNTS DEPARTMENT

It is the most of import section of a bank. One can hold a complete position of the maps and public presentation of bank from the histories. The section is responsible for.

Keeping record of each and every dealing.

Care histories.

Preparation of several day-to-day, hebdomadal, monthly, quarterly, half annually, and annually studies.

Analysis of the studies.

Efficient direction of financess.

Giving recommendations for betterment in the maps and methods.

Record Keeping

For every dealing a back uping verifier is prepared. From all the sections verifiers are transferred to the accounting section. In the section verifiers are sorted out and are maintained under 37 caputs. Vouchers are matched with the Activity Report. A verifier is printed faux pas and for fiting purpose the history figure and the history rubric printed on the faux pas are used. The activity study shows

Every dealing that takes topographic point every bit good as the name of the operator transporting out the dealing. The activity study shows the concluding balance of every history. Daily a sheet demoing the entire figure of verifiers under each class is printed. From that sheet the entire figure of verifiers is transferred to the

Voucher Register

Microfilm of each verifier is made and if there is any error it is besides pointed out and relevant alterations are made in the records of accounting section. Vouchers are kept in records for peculiar period of clip and so destroyed. After that if any of the verifier is to be checked, microfilm is used for mention.

Reports

Following studies are prepared day-to-day:

Statement of Affairs

Statement of Income and Outgos

Statement of Personal businesss:

It is printed day-to-day and gives complete item of assets and liabilities of Bank. It describes where the bank stands at a specific day of the month. Main caputs of assets are hard currency in manus, balances with CB, ST receivables, due from Banks, progresss, investings, other assets, suspense history, assorted creditors, furniture and equipment, profit/loss ( outgo ) , chief office, contra assets, Assorted accommodations.

Liabilitiess give item of modesty for revenue enhancements, measures collectible, due to Banks, sedimentations, capital and militias, profit/loss ( income ) , chief office, contra liability, loans loss modesty, suspense involvement, modesty for eventualities.

Daily Balance Sheets are formatted to bring forth different studies. Following are the studies, which are made harmonizing to the guideline of SBP monthly.

Statement of Income and Outgos:

It gives inside informations of income and disbursals of the Bank.

1. Monthly Statement of Liabilities and Assetss:

2. List of Classification of Credit by Borrowers:

It is printed monthly. Main categorizations are foreign components Domestic components:

Government

NFPSE ( Non fiscal Public Sector Enterprises )

NBFIs ( Non-Bank Financial Institutions )

Private Sector ( Business )

Trust Fundss and Non-Profit Organization

Personal

Others

4.1.3 CREDITS DEPARTMENT

PURPOSE OF CREDITS

Net incomes of a bank are dependent on CREDITS, because:

A bank receives ( borrows ) sedimentations. It pays cost on these sedimentations.

On the other manus bank lends the sedimentations to borrowers and charges involvement on the loaning. This map is performed by CREDITS in any bank

IMPORTANCE OF CREDITS:

Creditss are the most of import section of a bank. Performance of all other sections is dependent upon “ Creditss ” . It attracts corporate histories, as a company prefers to make import and export concern from the Bankss from where it is availing bound ( recognition ) installations.

Hazard INVOLVED IN Lending:

Though loaning is chief beginning of net incomes for any bank but it is hazardous as good. Whenever money is advanced to any client there is ever a hazard involved of default. To minimise the hazard involved BAL gives loans to believable clients.

SUB DIVISION OF CREDITS:

Creditss are farther bomber divided into two subdivisions:

CREDITS-MARKETING

CREDITS-ADMINISTRATION

CREDITS-MARKETING

Selling forces is responsible for pulling clients to bank for promotion of loan installations. They must hold complete information of tendencies in the industry. However several safeguards are followed to give loans to merely believable clients, as the purpose of bank is to retrieve the money at clip and through net incomes of the client and through settlement of securities.

BAL ever prefers to give loans to believable clients. For this BAL requires information about:

Directors.

Viability of his concern

Production installations

Market repute

Market value of the merchandise

Capabilities of Marketing, Finance, and Administration Department.

CREDIT LINE PROPOSAL:

A CLP is prepared on the footing of above facts. It is forwarded to HEAD OFFICE. If HO is satisfied so it gives a “ CREDIT ADVICE ” .

Offer Letter:

On the footing of recognition advice the subdivision prepares an “ offer missive ” . This missive gives a item of the footings and conditions such as continuance of installation, securities, grade up etc.

After carry throughing the full formalities loan is advanced.

After the expense of loan selling forces keeps path of every activity of the party.

They continuously observe the fiscal statements of the client.

Detail of recognition line proposal prepared by marketing forces is given below.

4.1.4 REMITTANCES DEPARTMENT

Following are some of the instruments used for transportation of financess within the same metropolis or between metropoliss.

Wage Order

Demand DRAFT

TELEGRAPHIC TRANSFER

ONLINE TRANSACTION

Wage Order: ( PO )

Wage order is used when payment is to be made to person within the same metropolis. PO is used for safety interest as unlike cheque payment against PO is confirmed. There are many opportunities for a carrier check to be bounced like a check can be post dated, out of hard currency, sum in figures and words may non be the same etc. Amount in wage order is guaranteed as buyer has deposited the sum.

ENCASHMENT OF PAY ORDER

There are 3 ways of encashment of PO which are as under

1. Clearing

2. Transfer

3. Cash

Clearing

It is the process for payment and aggregation of instruments lodged inward or outward through “ State Bank of Pakistan / national Bank of Pakistan ( Chest Branches of SBP ) . It is the transportation of financess from one subdivision of bank to the other subdivision of the same bank or the other bank on which the instrument is drawn, without affecting hard currency through State Bankss / NBP glade house.

Clearing can be of two types:

OUTWARD Clearing

INWARD Clearing

OUTWARDCLEARING:

All the instruments ( i.e. checks, wage orders, travellers checks, demand bill of exchanges ) , which are originated by some other Bankss, and are presented to the BAL are included in outward glade.

INWARD Clearing:

All the instruments, which are originated by BAL and are presented for payment to the bank by representative, are portion of inward glade.

Endorsement

It shows that check is meant for outward uncluttering “ Payee ‘s history merely ” is to be credited.

Transportation

In instance of transportation both remunerator and payee have histories in BAL. Therefore BPG will be debited and payee ‘s history will be credited.

Cash

In this instance merely the name of payee is mentioned and non the history figure. Payment of the counter is required ( pressing ) . Certain formalities are to be fulfilled:

Payee has to come herself with the instrument to publishing bank.Payee must cognize person in Alfalah who is willing to verify her signatures as good. If the officer is satisfied so he will call off the payee ‘s history cast. However, payment through hard currency is in rare instances.

Collection

It is installation given to clients for aggregation of their outpost cheques. The cheques undergo a procedure of glade. Collection involves:

OUTWARD BILLS FOR COLLECTION

INWARD BILLS FOR COLLECTION

OUTWARD BILLS FOR COLLECTION

The procedure is as follows:

All of the outpost checks become a portion of “ Outward Bills For Collection ” .

These cheques are given OBC Numberss ( which is a consecutive figure ) from “ OBC REGISTER ”

Information associating to the cheque is entered in the registry such as DATE, CHECK NUMBER, BANK ON WHICH CHECK IS DRAWN, and AMOUNT OF CHECK etc.

These cheques along with “ OBC FORWARD SCHEDULE ” are sent to the metropoliss where the Bankss are located on which these cheques are drawn. All of the cheques are forwarded to the MAIN BRANCHES of BAL in the several metropoliss.

If a cheque is meant for a metropolis where BAL has no subdivision so it is straight forwarded to the subdivision of bank on which it is drawn.

For all of the cheques forwarded following entry is passed.

CUSTOMER LIABILITY DEBIT

Bankers LIABILITY CREDIT

The entry is reversed on realisation.

After the realisation of cheques, a cheque along with recognition advice is mailed to the concerned subdivision, which serves as it debit voucher.

They are asked to react by debiting the BAL MAIN BRANCH HO ACCOUNT maintained with them.

There are 4 transcripts of recognition advice:

ORIGINAL COPY

RESPONDING Transcript

OFFICE COPY

Original and reacting transcripts are directing along with the cheques to the concerned subdivisions.

INWARD BILLS FOR COLLECTION

The procedure is as follows:

All of the cheques that are received from other metropoliss become a portion of “ INWARD BILLS FOR COLLECTION ” .

Each cheque is given “ IBC NUMBER ” ( which is a consecutive figure ) from “ IBC REGISTER ” .

Information of a cheque received is entered in the registry such as: Date, CHECK NO. , PRESENTED BY, AMOUNT, DATE OF PAYMENT, INITIALS, REASON OF RETURN, OTHER REMARKS, NAME OF BANK ON WHICH CHECK IS DRAWN.

A recognition verifier is printed for each cheque.

4.5 CASH DEALING DEPARTMENT

The hard currency section straight operates over hard currency. Cash section receives and publish hard currency to clients, account holders, transportations hard currency or money among different histories of subdivision and transportation of financess to other all subdivisions of Bank Alfalah Limited and to all other Bankss registered in Pakistan, through assorted instruments. Cash section can be farther divided into three sections:

Cash

The hard currency sub-department straight operates over the money. The hard currency section has following chief maps:

Balance after Day Position

The hard currency is most sensitive section of the organisation. The system at bank Alfalah limited accepts eight Tellers ( tellers ) at the same clip. Cash debited or credited by each Teller is calculated individually each clip as he makes dealing. At the terminal of the twenty-four hours all the balance ( debit or recognition ) by each Teller is calculated. System calculates the coverall debit or recognition by all Tellers throughout the twenty-four hours. The Teller histories are

Denomination by system

In denomination the single currency values are counted. Individual currency note and coins are counted as:

Cash denomination registry in the system displays the information about each denomination in the Cash Balance Book at the terminal of the twenty-four hours. At the terminal of the twenty-four hours each denomination in the hard currency balance book should fit physically with hard currency nowadays in the strong room.

Screening

Cash section receives hard currency that may include non-issue able Bank Notes. It is responsibility of hard currency section to publish merely issue able Bank Notes. In screening currency notes are screened out into issue able and non-issue able. The assorted currency Notes are referred to unsorted hard currency. BAL subdivisions can merely take 2 % of allowed balance. Three chief map of screening is:

Received Unsorted Cash ( Mixed

Cash section collects unsorted hard currency from clients and accountholders. Unsorted hard currency is transferred to screening section to be separated as sorted and unsorted hard currency.

Sorted ( Issue Able ) Cash

Cash in good status is farther counted and it is ready to publish to clients.

Non Issue Able Cash

The hard currency that is torn out tapped or in really hapless status is unsorted. It can non be issued to any client instead it is forwarded to State Bank of Pakistan for alteration. Where State Bank of Pakistan is non runing, National Bank of Pakistan performs this responsibility on the behalf State Bank of Pakistan.

Shutting

At the terminal of the twenty-four hours place of each Teller ( Debit or Credit ) is transferred to the history named “ Safe ” to shut the boulder clay. Debit or Credit balance of each Teller is refreshed after transportation entry. After the shutting hard currency denomination and denomination of currency by systems balance book

Bank Alfalah ‘s system besides provides option of to rectify any of errors if it is due to the bank office. System provides reversal or reassign entries into comparative histories, Data flow construction of hard currency dept. is given below:

Chapter No.5

Learning AS A STUDENT INTERN

Learning AS A STUDENT INTERN

I had passed a good clip in Bank Alfalah Limited as an houseman. There was a batch for me to larn.

5.1 Duties

I have worked in Accounts section, Fund Mobilization section and Remittance section.

In these sections I have performed my responsibilities harmonizing to the direction of the officer of related section.

I have start work foremost from Accounts section after transition of two hebdomads I spent my half clip of the twenty-four hours in Fund Mobilization section.

I reached in Branch 15 proceedingss before 9 O ‘ clock and was come back at 6 o’clock which is harshly imposed by the operation director on me.

So, I have performed undermentioned responsibilities in each section ;

Histories Department

Screening of checks and verifiers.

Cuting of twenty-four hours terminal studies arranged and besides set these into files.

Punching of paperss to set these into files.

Transcripts at photocopy machine.

Making of different disbursal verifiers for Branch.

Making missive for directing to client in instance of hibernating history.

Casts on completed verifiers for maintaining of record.

Making entry of completed verifiers into voucher registry every bit good as into computing machine.

Fund Mobilization Department

Procedure of client ‘s Account Opening.

Letter of thanks for directing to the client against gap of Account.

Entry of these letters into registry before posting to clients.

Gluing of Account opening paperss into separate registry after completion of Account opening process.

Remittance Department

Casts at the dorsum of checks for Token no. and item of notes.

Entries of these checks into payment registry of teller every bit good as into nominal registry.

Filling up of checks and faux pass in instance of payments and grosss of hard currency.

5.2 Accomplishments

By executing above activities now I am able to execute entirely all the activities of Accounts section every bit good as Fund Mobilization section and besides I have knowledge about Remittance section.

5.3 NEW KNOWLEDGE ACQUIRED

Deal with client harmonizing to their personality.

Open an history with different process in instance of different state of affairs.

Punch paperss for seting these into files

Transcript at photocopy machine.

I get a cognition about process of issue of loan

Fill a different verifier which is usage as day-to-day modus operandi

larn how recognition is offered,

How clients are captured, about the hard currency dealing round the metropolis.

Manage clip for range to the office every bit good as to complete my official work.

Learn how mange finance and Budge

Analyze different twenty-four hours terminal studies

5.4 PROBLEMS ENCOUNTERED

Making the internship was a fantastic experience for me but every bit far as readying of the study is concerned it was the most hard portion of the undertaking. Fixing for Report become most trouble and boring as most of the information was non available non merely on cyberspace but besides from the bank.

It was rather easy for me to analyze the income statements of the bank. There are some other necessary demands for making the fiscal analysis of the income statements i.e.

Information about the tendencies predominating in the market,

And information sing the places of the rivals of the bank that is the ground that I was unable to picture the true image of the fiscal place of the bank.

I am besides incognizant about the off balance sheet finance of the bank so, I can state nil sing the true liabilities of the bank

Branch location is most critical issue, subdivision is located in out of concern country of metropolis, so clients are loath to come to bank while transporting immense sum of money.

But in banking environment where other commercial Bankss are developing their system and supplying more attractive bundles to the clients.

Recognition dept. and consumer finance is non offered to clients which can supply major portion to income to ramify but ramify do non hold started these installations yet due to shortage of experient HR resources proper IT support. Agri finance dept offers loans to husbandmans more so 10 estates of land. BAL apparatus is new, working is to the full computerized but there is no appropriate support.

5.5 HOW INTERNSHIP WILL IMPACT MY CARRIER

This internship at Bank Alfalah will turn out really of import for me during my professional calling. Because it was my first learning experience for working in a transnational organisation. It will be really helpful for me to demo subject, difficult

working and how work is done in any organisation. No uncertainty it will turn out a bright mark in my hereafter.

The undermentioned experience I have gain during working with operational direction, when I correlate the theoretical construct with the practical experience.

Control of Outgo

In theory I studied that there should be a control on outgo, which will assist in increasing profitableness of organisation. In practical I have observed that subdivisions cut down their outgos and cost of services.

Finalization of Histories

I have studied that organisations prepare their net incomes and loss histories, balance sheet, hard currency flow statement and besides monthly and one-year studies. In pattern I have analyzed that these statements along with client histories ( minutess ) are compiled on the day-to-day footing due to efficient computing machine package “ Bank Smart ” .

Information Management

I have studied that finance section is a determination tools to direction, in pattern I have analyzed that histories section, prepared day-to-day rapprochement sing sedimentations, studies for direction. Decision devising

CONCLUSIONS AND RECOMMENDATIONS

After passing six hebdomads at different sections of the bank, interacting with the employees, acquiring their positions, detecting the organisational construction and design, I have come up with the undermentioned suggestions that in my position, will decidedly better a few failings observed in the bank by me.

Flexible Policies

The bank should be following flexible policies, particularly in the countries of the enlisting, publicities, rating of the employees otherwise the high turnover observed in the bank will go on to make jobs for the bank now and in the hereafter.

Job Security

The employees in the organisation should be insured occupation security so that there is no force per unit area on the employees while executing their undertakings.

Permanent Hiring

The fresh hiring should be made lasting so that they are secured of their hereafter. Further the allowances and fringe benefits attached with the lasting occupations will besides increase the motive degree of the employees.

Job Training Programs

The bank should put accent on the organisation of effectual preparation and development plans for its new every bit good as bing employees so that these are bit by bit updated sing the recent developments in the field of banking.

Fringe benefits and Allowances

The figure of allowances and fringe benefits for the employees should be increased to guarantee that they put their organic structure and psyche in the occupations assigned to them.

Revival of the Charges

The rates for the assorted charges provided by the bank should be brought down a spot, as it would ensue in addition in the figure of clients of the bank.

Adoption of Effective Technology

The current unibank system used by the bank is really slow in treating so my position is that the bank should seek to follow some other but more effectual signifier of engineering in order to supply comfort to the clients every bit good as the staff.

Glossary

Slangs or acronyms

DD ( Demand bill of exchange )

PO ( Pay order )

IMS ( Information direction system )

BS ( Bank Smart ) dealing package )

MT ( Mail Transfer )

TT ( Telegraphic Transfer )

S.S Card A A A A ( Signature Specimen Card )

SBP ( State Bank of Pakistan )

CRO ( Customer Relationship Officer )