business com mini cation
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Acknowledgment
In The Name of Allah, the Most Beneficent, the Most Merciful
All gratitude and thanks to almighty ALLAH the gracious, the most merciful and
beneficent who gave us courage to undertake and complete this task. We are very much
obliged to our ever caring and loving parents whose prayers have enabled us to reach this
stage.
We are grateful to almighty ALLAH who made us able to complete the work presented in
this report. It is due to HIS unending mercy that this work moved towards success.
We are highly indebted to our course instructor Ms.Syeda Habibah Hussain Rizvi for
providing us an opportunity to learn about the Business communication and ethics and
assign us to implement on Bank Al-Falah" which is vital ingredient of BBA program.
We are very great full to our teacher for providing us guideline for the completion of
this report.
We feel great pride and pleasure on the accomplishment of this report.
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Preface
Banking sector owes a crucial importance in the economy of any country through its
vibrant functions. This is the deep motivation that geared up us to select the bank for our
project. Moreover, the practice and familiarity observed and learned during this time
period would also attest very helpful and alleviating in the awaiting proficient life.
This report is an upshot of our observations and the information collected from Bank Al-
Falah, Pakistan. Bank Al-Falah posses an imperative importance in the Banking sector of
Pakistan. It always remains the center of hustles in business activities. It always endows
with great covenant of rally round in terms of funds and services.
Although, such a small period of time is not enough to learn the complex operations of
Bank Al-Falah Limited yet we made tough efforts to discuss them comprehensively in
this report. We have view many Marketing and Management concepts to elaborate this
report with the material read, listened and observed.
We have strong belief that this report will guide and ease the readers to understand the
operations and communication of Banking system and more significantly have good
knowledge about Bank Al-Falah Limited, one of the most trusty and leading Bank in
Pakistan.
We hope that the readers will appreciate our report and sense that reading our report is
not the wastage of time in any opinion.
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EXECUTIVE SUMMERY
For successful market position, marketing, management, product and communication
strategies are imperative in todays rapidly moving high-tech market. Companies need totake a new technologies or ideas and efficient management to develop a complete productthat addresses a customer needs and propagate these needs through communicationeffectively in valuable market as well as executive flawlessly on bringing it to market.
In this report we have tried to cover the marketing and management strategies by BankAl Falah. Bank Al Falah was in corporate in June 21 st, 1997 its banking operations startedfrom November 1st, 1997. The bank engaged in commercial banking and related services.The bank is currently operating through 223 branches.
Bank Al Falah target market conceits of individual client as well as number of business
organization. Bank Al Falah has segment the market on demographic, psychological andbehavioral style to target maximum number of segments with different varieties ofproducts suitable for each segment. In marketing terms this strategies in competitors isknown as the Flank Attack &Frontal Attack.
In this report we have discussed the marketing plan, organizational culture andcommunication and financial analysis of Bank Al Falah Limited comprising ofsegmentation, product & services, competitors analysis, positioning marketing mix,means of communication, HR and other departments carried by the Bank Al Falah. Wehave also briefly discussed the integrated marketing communication (IMC) being used bythe Bank Al Falah to address its customers.
We have tried our best to cater all of these aspects being followed by Bank Al Falah andhope that this report will help you explain your concepts about these strategies to agreater extent.
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COMMERCIAL BANKING SCENARIO IN PAKISTAN
At the time of independence in 1947, there were 38 scheduled banks with 195 offices in
Pakistan but by December 31, 1973, there were 14 scheduled Pakistani commercial
banks with 3,233 offices all over Pakistan and 74 offices in foreign countries.
Nationalization of Banks was not done 1st January 1974 under the Nationalization act
1974 due to certain objectives. But it had negative effects on efficiency of the banking
sector afterwards a privatization Commission was set up on January 22, 1991 and the
commission transferred many banks to the private sector i.e., MCB & ABL. The
government approved & permitted the establishment of 10 new private banks in 1991.
Hence many new private banks have incorporated. Since then, BANK ALFALAH is one
of the namely established private banks in Pakistan.
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History
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 is 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. There for 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 Band 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. It has its
18 branches in 8 cities of Pakistan at that time.
Charged with the strength of Abu Dhabi group and under the leadership of Sheikh
Nahayan Mabarak Al-Nahayan, Minister of Higher Education and Scientific Research,
Government of Abu Dhabi and a prominent member of Royal Family, the bank is
energized with the vision, envisaging the development of various sectors in Pakistan.
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INTRODUCTION
Bank Al Falah Limited was incorporated in June 21st, 1997 as a public limitedcompany under the Companies Ordinance 1984. Its banking operations began from
November 1st, 1997. The bank is engaged in commercial banking and related services as
defined in the Banking companies ordinance 1962. The Bank is currently operating
through 223 branches in Pakistan with the registered office at B.A. Building, I.I.
Chundrigar, Karachi.
Since, its inception as the new identity of H.C.E.B after the privatization in 1997, the
management of the bank has implemented strategies and policies to carve a distinct
position for the bank in the market place. Strengthened with the banking of the Abu
Dhabi Group and driven by the strategic goals set out by its board of management, the
Bank has invested in revolutionary technology to have an extensive range of products and
services. This facilitates their commitment to a culture of innovation and seeks out
synergies with clients and service providers to ensure uninterrupted services to its
customers.
The bank perceived the requirements of customers and matches them with quality
products and service solutions. During the past five years, bank has emerged as one of the
foremost financial institution in the region endeavoring to meet the needs of tomorrow aswell as today. To continually upgrade the quality of service to the customers, training of
team members in all the integral aspects of banking, customer service and IT was
specially focused.
The portfolio concentrates on all aspects of conventional banking as well as the financial
needs of corporate sector. Dynamic and high value product includes Car Financing,
Home Financing, Rupee Travelers Cheques, Credits Cards, Debit Cards, On line
Banking, ATM and consumer Durables. In addition to this, Islamic Banking Division is a
recent initiative which operates as separate branch. It offers Shariah Compliant products
through a network of five branches, which will increase to 50 by the year 2007. The bank
is committed to combine all it s energies and resources to bring high value, security and
satisfaction to its customers, employees and shareholder. The Bank has invested in
revolutionary technology to have an extensive range of products and services. This
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facilitates commitment to a culture of innovation and seeks out synergies with client and
service providers to ensure uninterrupted services to its customers.
mission statementVision:
" To be the premier organization operating locally & internationality that provides
the complete range of financial services to all segments under one roof. "
Mission:
" 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."
Slogan:
THE CARING BANK
" Lets Look Ahead Towards a Brighter Future Together "
Bank Believes:
"A tribute to our heritage"
Every door leads to our customers.
The legacy of leadership stands as our guiding light.
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The strength of chain relies on the strength of each link.
A keen ear is a key to understanding. Achievement is nothing without
target.
Time is our most valuable asset.
Performance is nothing without the ability to measure it.
long term Objectives
To make sure that all new services are well communicate to the clients in due
time.
To make our product as user friendly as possible
To facilitate our client in the best way and in turn create brand loyalty.
To provide innovative and hassle free service to our clients.
To help sales meet their targets.
To make sure that all new services are well communicate to the clients in due
time.
To make sure that all new services are well communicate to the clients in due time.
BOARD OF DIRECTORS
H.E. Sheikh Hamdan Bin Mubarak
Al Nahayan
Chairman
Mr. Abdulla Nasser Hawalileel
Al-Mansoori
Director
Mr. Abdull Khalil Al
Mutawa
Director
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Mr.Khalid Mana Saeed Al
Otaiba
Director
Mr. Ikram Ul-Majeed
Sehgal
Director
Mr. Nadeem Iqbal Sheikh
Director
Mr. Sirajuddin Aziz
Director & CEO
CommitteeThere are two main committees in the Bank Alfalah Limited
Board Advisory Committee
Executive Committee
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B o a r d o f D i r e c t o
D i r e D i r e D i r e C E
( m e m
D i r e
( G o v t .
D i r e
( G o v t .
S e c r e
B o a
C h a i
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Organizational Chart
Short term GOALS & OBJECTIVES
Goals and objectives are factors through which the companys devotion and commitment
to the job can be seen. If the goals are realistic and achievable, than surely that
organization is doing its job.
Bank Alfalah also has certain goals and objectives which it is trying to achieve, through
its various strategies and operations. The goals and objectives are mentioned below:
1. To create a sound base and through efficient systems achieve modern banking
throughout Pakistan.
2. By the end of every accounting year there is an increase in deposits. As the deposit
rate of during 2009 was approximate 52 Million and the same has been increased in
2012 by 77 Million.
3. To create unit banking network in all the branches of Bank Alfalah at the end of the
year. This means that all the operations of the bank, i.e. deposits to advances,
imports, exports, L/C Opening, foreign currency and many more aspects under one
roof, so that the customer can be facilitate in one visit.
4. Islamic Banking is one of the goals of Bank Alfalah though it has been initiated in
the last fiscal year and it is very acceptable for general public. However, there is lot
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C O U N T R Y W I D E H I E R A R C H Y
I n f o r m
D e p a r t
H e a d o f
O p e r a t i
C o r p o
H e a d
C o u n t r y
M a n a g
B r a n c
M a n a
E x e c u t
V i c e P r e
B r a n c
M a n a
E x e c u t
V i c e P r e
C h a r a c
A c c o u n
C h i e f O p
o f f i c e r
P r e s i d e
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of work to do for successful implementation of the Islamic Banking Plan. In this
regard the Bank is opening specific Islamic Banking Branch under the supervision
of its Islamic Banking Division.
STRATEGIES
Bank Alfalah has formulated certain sets of strategies to enable it to achieve its goals and
objectives. These strategies are mentioned below:
1. In order to achieve its goals of creating a sound base and presence of efficient
modern banking system, Bank Alfalah has started operation of Automated Teller
Machines in all the major areas like Karachi, Lahore, Islamabad and other cities of
Pakistan.
2. Bank Alfalah is committed to building long-lasting relationships through an
assertion to service excellence and providing innovative products to meet the
changing needs of our valued customers. Although still in its infancy, compared to
the exalted banking standards, Bank Alfalah, backed by a strong Abu Dhabi Group
and inspired by the vision of its Board and Management, has built up a strong
customer base. The Bank provides a full range of banking services to corporate
clients, while applying leading technologies. Today the Bank is well-positioned to
provide appropriate banking services to customers.
3. The main focus is building relationships and being known by the way they do
business. Management recognizes that a banking relationship requires
compatibility, communication, and cooperation and that each customer deserves
nothing less than full attention and available resources to meet their financial
objectives.
4. Core value and corporate culture is based on the belief that superior personalized
service is the most important product. Bank is in the process of getting to know
customers by name and understand their business and personal financial needs. This
one-on-one, personalized service quality has served as Bank Alfalah's unique
signature since inception and continues to separate it from other financial
institutions.
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5. The Bank Alfalah team comprises of some of the most highly skilled and
professional financial experts in banking industry. Managers, lenders and trust
advisors offer the unique perspective of knowing and understanding in the local
economy. The Management focuses its attention on making informed and feasible
economic decisions, bringing better returns and more profitability for investors and
customers.
6. Keeping in view the unrest among the Islamic Community on the Interest Bearing
Banking the Alfalah is in the process of target marketing and gives its full attention
to this segment of a large population over the world.
7. To acquire the reputation and status of bank which operates on international
standard, Alfalah Bank was to get the credit rating of Pakistan Credit Rating
Agency, which gave it the AA- and A1+ in the long term and short term
respectively.
Flow of command/ Chain of command:
Downwards communications are usually done in the Bank Alfalah for directing the
orders or strategies whereas upwards in terms of briefing them about the work done or in
progress. Middle management always works as the intermediary between the top
management and the lower. Usually, there is no such communications between the lower
and top management except in special occasions.
CEO
The CEO of the Bank Alfalah controls the whole management affairs
Everyone under him, Country managers, vice presidents are accountable before
him
He direct the orders or takes the suggestions or feedback from them .
Executive Incharge(E.I)
He establish the environment of the strategies planning and aware of to hold the
global market
Manages the HRM and assigns works to individual for betterment
Controls the administration activities and carries on the establishment process for
the betterment of Bank
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Investigates the business development reports that our business get profit or loss
Analysis the audit and inspection division for efficient work
His work is to divide the cards in best manner just like debit, credit, ATM card
and Hilal card in Bank
He did his work for international and treasury division in Bank
Divided the I.T informational technology related work among the employees
Support the corporate and home finance
He monitoring the credit division
Investigate the legal affairs
Executive Vice President:
Responsible for the directing the actions and strategies to the Branch managers All of the managers working under them are accountable to him
Managers gave feedback back or brief about the progress or flaws in the work to
the Vice President.
Branch Manager:
Responsible for the implementing the strategies into action by directing the plan
of action
Set the task force
Dividing into groups of team and then assign the special work to them
Managing all of the daily bases task related to the customer
Centralized V/S Decentralized:
Centralized describe the degree to which decision making is concentrated at a
single point in the banking or any organization. If the top managers make the
banking organizational key decision with the little or no input from below then
the banking organizational is centralized.
In Bank Alfalah the major portion of organizational is "Decentralized", because
the Managers of all levels have the power of decision making.
Types of Organization
Tall V/S Flat
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Bank Alfalah is a Tall organization with the wide series of the Directors,
Presidents, Vice-President and Mangers working in the tree shape of hierarchy of
management.
Major Competitors:The growth in the banking industry of Pakistan has led to an increase in the number of
banks both domestic and international to be established and create a competitive industry.
For Bank Alfalah its competitors come in the form of both domestic and international
commercial banks established in Pakistan.
Allied Bank
Faysal Bank
Habib Bank MCB Bank
United Bank
Citibank
National Bank
Market Shares:
According to a publication of the State Bank of Pakistan, The Banking Statistics of
Pakistan 2006, the total deposits for banks over all were Rs. 3,200,332 (million) and
market shares of the competitor banks in term of deposits and other accounts are as
follows:
Banks Deposits(in
thousands)
Overall
Market Shares
Domestic
Banks Market
Shares
Bank Alfalah 239509391 7% 8%
Askari Bank 131839283 4% 4%
MCB Bank 257461838 8% 8%United BankLimited
335077873 10% 11%
Citi Bank 63103884 2% 3%
As such no financial organization in Pakistan is unable to determine the correct market
share of the banking industry. Also banks do not disclose certain confidential
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information to the general public and internees. Still generally foreign banks in Pakistan
contribute to about 35% to the whole banking industry. Out of which Askari, Citi,
Standard Chartered, Muslim Commercial, ABN-AMRO banks share the majormarket.
PRODUCTS portfolio
With the mission to provide all-encompassing banking services to the customers, Bank
Alfalah has a uniquely defined menu of financial products. Currently it is one of the most
comprehensive portfolios of personalized financial solutions that are custom-tailored to
serve the requirements not only of conventional customers but also fulfill the needs of the
corporate sector:
Car Financing
Home Financing
Credit Cards
Debit Cards
Rupee Travellers Cheques
Online Banking
ATMs
Islamic Banking
Corporate Financing
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Car Financing
Car Financing is one of the major renowned product of Bank Alfalah and can be utilized
in terms of Financing of Used Vehicles, Loan against Car, Balance Transfer Facility,
Refinancing Facility (only for Alfalah Customers) and it is characterized in terms of:
Lowest Mark up
Lower Insurance
Quick Processing
Lower Down Payment
Quickest processing
No hidden charges
Minimum down payment.
Complete repayment at any point of time
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Balance transfer facility (BTF) for existing as well as new clients from other
Banks
Tenure period ranging from 1 to 5 years
Financing of all brand new locally assembled vehicles and used cars
Financing limit ranging between Rs. 200,000/- to Rs. 2000,000/- for brand new
cars
1. Car Leasing
BALs recently introduced car leasing facility for individuals and corporate sector has set
new dimensions for the product. 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 the
remaining in the subsequent equal monthly installment.
Repayments
Easily affordable installments on monthly basis in the form of post-dated cheques will set
you free of depositing your rental cheques every month.
Security
Hypothecation of vehicle in the name of Bank Alfalah Limited.
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Product Price including ST &FEDw.e.f 01/07/09
Price IncludingST, FED & WHTw.e.f 01/09/09
SUZUKI MEHRAN
SUZUKI SB308R VX 317,739 325,600
SUZUKI SB308R VX CNG 348,000 356,600SUZUKI ALTO
SUZUKI ALTO RA410 VX 422,643 433,100
SUZUKI ALTO RA410 VX CNG 457,948 469,300
SUZUKI CULTUS
Suzuki Cultus VXR Rs. 585,000/-
Suzuki Cultus VXL Rs. 647,000/-
Suzuki Cultus VXL (Met. Colors) Rs. 652,000/-
SUZUKI RAVI
SUZUKI PICKUP ST308R 314,713 322,500
SUZUKI PICKUP ST308R CNG 346,991 355,600
SUZUKI BOLAN
SUZUKI VAN ST308 VTR 370,191 379,400
SUZUKI VAN ST308 VTR CNG 407,513 417,600
SUZUKI LIANA
SUZUKI LIANA 1.3L RXI MT 800,904 820,800
SUZUKI LIANA 1.3L RXI MT CNG 856,383 877,600
APV CBU
APV 1.5LGLXMT 1,007,687 1,032,700
APV 1.5LGLX CNG 1,058,122 1,084,300
JIMNY CBU
JIMNY MT 1,049,043 1,075,000
JIMNY JLSX MT 827,130 847,600
TOYOTA
Toyota Corolla XLi 890,000 915,000
Toyota Corolla GLi 980,000 1,005,000
Toyota Corolla 2.0D 1,050,000 1,080,000
Toyota Corolla 2.0D Saloon 1,295,000 1,328,000
Toyota Corolla Altis MT 1,245,000 1,280,000
Toyota Corolla Altis AT 1,335,000 1,370,000
DAIHATSU
Daihatsu Coure CL N/A 390,000
Daihatsu Coure CL CNG N/A 431,000
HONDA CITY
Honda City I-DSI MT 1.3L 852,000
Honda City VTEC Steermatic 1.5L 1,036,000
HONDA CIVIC
Honda Civic VTI MT 1.8L 1,348,000
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Product Price including ST &FEDw.e.f 01/07/09
Price IncludingST, FED & WHTw.e.f 01/09/09
Honda Civic VTI MT SR 1.8L 1,480,000
Honda Civic VTI PT SR 1.8L 1,520,000
HONDA ACCORDHonda Accord 2.4L 2,810,000
Two passport size photographs
Copy of National ID card
Bank statement for the last six months
Salary certificate (for salaried individual)
Business proof (for a business person)
N.T.N Certificate
Co-borrowers NIC copy (if the car is to be in the name of the co-borrower)
2. Home Financing
Major features of Bank Alfalh Home Financing are Lowest
Mark-up, Quick Processing, Multiple Repayment Options
and Free Valuation. It has been bifurcated in terms of
Home Buyer, Home Construct, Home Improver, Home
Balance Transfer Facility.
Financing Limit : up to Rs. 10,000,000/-
Tenure : up to 20Years
Equity Participation : 30% Borrower / 70% Bank
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With this facility, you no longer need to just dream about the home you want for yourself
and your family .We will provide you up to 80% of the purchase price of the property,
so that you can realize your dream and enter the reality of owning a home.
Payment period ranges from 3 to 20 years
You own a plot but need financing to construct a home, that excites everyone in your
family! No problem. We will provide up-to 100% of the construction cost enabling you
to say good-bye to rent forever! Even if you don't have a plot, we will provide up to 60%
of the value of the plot that you have selected to purchase.
Payment period ranges from 3 to 20 years.
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You already own a home, but need extra space for a growing family or want to see some
rooms get a new look. Simply apply for financing ofup to Rs. 3.50 million or 40% of
the surveyed value of your home and get yourself the extra space.
You can stretch your payments for up to 10 years.
The crown jewel of our Home Finance scheme, the golden opportunity for someone
starting a career to buy an already constructed housing unit early in life! We offer a
moratorium of up to 3 years in principal payments, for a financing of up to 20 years.
You service only the mark-up element initially, and principal repayment starts after the
end of moratorium period. Home Start is specially designed for young professionals to
own a quality asset.
The installment on a home finance spend all of our earning and leave you with nothing to
spend. Now don't worry anymore because we have genuinely attractive rates and flexible
payment options that could leave more funds with you each month. With our Home BTF,
repaying your home finance will not make you break into a sweat! Transfer up to 100 %
of the existing finance.
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No penalty on early settlement of loan with no time limit for early settlement.
Convenience of Balloon payments towards adjustment of principal every month
without any extra charge or penalty (Min Rs. 50,000)
3.Credits Cards
Bank Alfalah Visa Card is everywhere and globally accepted and welcomed at locations
displaying the VISA logo. It is accepted at nearly 30 million merchants and 870,000
ATMs in more than 150 countries around the globe and over 10,000 establishments in
Pakistan. Alfalah VISA pays for shopping, travel, entertainment, meals and much more.
Your Bank Alfalah Credit Card is your partner everywhere and is globally accepted and
welcomed at locations displaying the VISA logo. It is accepted at nearly 30 million
locations in more than 150 countries around the globe and over 18,000 Bank Alfalahs
establishments in Pakistan.
Alfalah VISA lets you pay for shopping, travel, entertainment, meals and much more.
Card members are facilitated through a number of promotions from time to time. In
addition, there are a number of strategic business partnerships with leading local and
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international brands for purchase of home appliances at exciting Step-BY-Step (SBS)
monthly installment plan with free home delivery at lowest interest rates. Salient features
are:
No Joining / Annual / Renewal fee
Electricity, Sui Gas, PTCL and Warid bills payment through 24 hour.
Call Center and Auto Debit instructions
SMS for card usage, mini statement, payment receipt confirmation, etc.
Cash withdrawal at all 1LINK ATMs.
Special offer on Warid post paid connections
Target Sedmentation:
Platinum Card
It is accepted at nearly 30 million locations in more
than 150 countries around the globe and at over
17,000 establishments in Pakistan.
Gold & Silver
A perfect card combination for all segments of
salaried & professional individuals.
Young Professional
This Card is for you, if you are a Graduate
and have just started your Career.
Women Exclusive
Now for the first time in Pakistan, Bank Alfalah
has introduced a credit card exclusively for
women. This card has its unique features.
Student Card
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For the first time in Pakistan, Bank Alfalah
introduces a credit card for Students.
Supplementary Card Now you can give Free Supplementary Cards to
anyone you care for.
Visa Mini
Visa Mini is a practical and convenient part of your
everyday life - whether you go for shopping, dine
out, buy grocery, want to go for holidays.
Awami Card
Alfalah Awami Card is your partner everywhere
and is globally accepted and welcomed at locations
displaying the VISA logo. It is accepted.
Your partner everywhere and is globally accepted and welcomed at locations displaying
the VISA logo. It is accepted at nearly 30 million locations in more than 150 countries
around the globe and at over 17,000 establishments in Pakistan.
You also have the option of withdrawing cash by requesting an Over-the-Counter CashAdvance at 3,60,000 financial institutions worldwide or at any Bank Alfalah
Branch/ATM or participating VISA member banks in Pakistan.
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For every Rs. 50 you spend on your Alfalah VISA Card, you will earn 1 Fortune point.
Your accumulated Fortune points can be exchanged for a whole range of items displayed
in our Fortunes Catalogue. It offers a wide range of lifestyle categories catering to your
own and your familys taste.
Schedule of Charges
The following Schedule of Charges is associated with your Alfalah VISA Platinum Card.
Please make a note of the following so that you are fully informed of the charges on your
Card.
Schedule of Charges
Service Fee
Late Fee
Cash Payment Processing fee
Merchant Discount Charges
3.00% per month (APR 36%).3.00% per month (APR 36%).1.75% per month on SBS transactions.1.50% per month on BTF transactions.
Rs. 600/- or 10% of minimum amount, whichever is higher.
Rs. 100/- per transaction.
Upto 5% of transaction amount.
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A perfect card combination for all segments ofsalaried&professionalindividuals.
This Card is for you, if you are:
have just started your Career...
not qualified for any other credit cards income criteria...
As a ClassicBlue Cardholder you have a privilege of having access to all features of
Alfalah VISA Credit Cards including two free supplementary cards.
A Credit CardExclusivelyforWomen..
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Now for the first time in Pakistan, Bank Alfalah has introduced a credit card exclusively
for women. This card has its unique features which have been tailor-made for women in
Pakistan.
Requirements:
The requirements of this card depends on what basis this card has been applied for:
If the female is applying on her own income basis, she herself will be liable to pay
for the amount spent through the card(s).
If the female is a house wife and does not have any direct income source, she can
apply for the card through the person responsible for the household (i.e. husbandor father) who will sign an undertaking to be responsible for the amount spent
through all the card(s) issued under this scheme.
For the first time in Pakistan, Bank Alfalah introduces a credit card for Students.
This card is for you if you are enrolled in a professional university (as per Bank Alfalahs
approved list) with 15 years of schooling experience.
Now you can pay your fee, buy books or just with Alfalah VISA...:-) Not only
this but you will also earn reward points and can redeem them for a TV, Mobile Phone,
CD player & DVDs etc.
Requirements
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1. The applicant must be a graduate with 14 years of schooling and must be
currently enrolled in a professional college/University.
Supplementary Cards
All Bank Alfalah Basic Card members can apply for supplementary cards in separate
categories including Sons Card, Daughters card (children who are above 13 years of
age) and House Staffs card. This feature has been introduced for the first time in
Pakistan, yet another beginning made by Bank Alfalah Credit Cards. In addition,
supplementary cards can be issued to anyone you like thus giving you complete freedom
of choice (Only 1 supplementary card will be issued to Awami Card holder)
Distinguish Card Design for Each Category
Each supplementary card category contains its own specific design of card. These card
designs which have been specifically designed keeping in view the trends and tastes of
the modern day young generation who has the desire to look exclusive in itself. You can
get supplementary cards in unique designs for your son, daughter and house staff, but any
other person can also enjoy this privilege using your own card design.
Distinguish Spending Limit for Each Category
Not only are the card designs unique, the basic Card member can also assign a separate
percentage or amount of the total credit limit of the credit card account to each of the
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supplementary cards. So, whether it is your son who needs his monthly pocket money, or
your daughter needs to make school fees payments, or your chef, chauffeur or maid is
usually the one who buys all the groceries it is you who will decide how much credit each
of them gets for it.
Unique Supplementary cards
There are three design categories of Supplementary cards, namely, the Son's card, the
Daughter's card and the House Staff card. This enables you to get away from the day-to-
day hassle of buying groceries, petrol, children's books, etc, as each member can then do
his or her own purchases.
Fo
rget your wallet and with Alfalah VISAMini!
Visa Mini is a practical and convenient part of your everyday life - whether you go for
shopping, dine out, buy grocery, want to go for holidays or feel like buying something of
interest while you are out just for a jog!
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You can take it with you anywhere you like with no hassle as it has a perforated hole in
the bottom left corner making it attachable to your key chain, mobile phone or other day-
to-day carry along device.
43% smaller than the regular sized credit card with the same features and benefits.
Accepted at over 30 million merchants worldwide and around 17,000
establishments in Pakistan (used on electronic POS terminals only).
Has the same security features as the regular sized Alfalah VISA credit card.
Your Alfalah Awami Card is your partner everywhere and is globally accepted and
welcomed at locations displaying the VISA logo. It is accepted at nearly 30 million
locations in more than 150 countries around the globe and at over 18,000 Bank Alfalahs
establishments in Pakistan.Alfalah Awami Card lets you pay for shopping, entertainment, meals, travel and much
more.
So what are you waiting for!Get your Alfalah Visa Credit Card
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4. Debit Cards
Bank Alfalah Limited presents Alfalah Hilal Card,
the first Visa Electron International Debit Card
which gives an unlimited access to current / savings
account with a simple swipe at millions of retail
shops and ATMs worldwide. The Alfalah Hilal Card
comes with a host of conveniences and benefits
combined with the wide reach of Visa Network
enabling it to be accepted at more than 840,000
ATMs and 13 million retail outlets around the
world, making it the most acceptable Debit Card available in Pakistan.
5. Rupee Travelers Cheques
Rupee Travelers Cheques are as good as cash and are accepted at the major shops, travel
agents, hotels business establishments and all over the country and abroad. This service is
being offered to facilitate instant fund availability to travelers and business people who used
to carry a large sum of money with them.
6. On Line Banking
To provide enhanced and value added products to customer bank is constantly striving
for additional facilities. Bank provide fully automated on-line telephone banking facilities
to its customers enabling them to carry out banking transactions like balance inquiries,
statement requests, product information and exchange rate
7. Automated Teller Machine (ATM)
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The Bank Alfalh offers 24 hours self service banking facilities to its customers on
country wide basis through deployment of Automated Teller Machine. This system
allows the banking facilities such as cash withdrawals, cash deposits, funds transfer,
balance inquiries, account statements. Electronic cash dispensing facilities are available
in major cities of Pakistan. All ATMs are linked through a state-of-the-art Satellite Based
Communication System which offers 24 hours real time service.
8. Islamic Banking
A separate division is a recently initiated, which operates as separate branch. It offers
Shariah Compliant products through a network of five branches, which will increase to
50 by the year 2007. Islamic Banking has launched following products with the
perception that these are in accordance with the Sharia Principles.
Alfalah Masharaka Homes
Murabaha Finance
Aflalah Car Ijarah
9. Corporate Financing
The portfolio concentrates on all aspects of conventional banking as well as the financial
needs of corporate sector including dynamic and high value product.
Loaning against securities
Letter of Credit
Letter of Guarantee
Demand Finance
Cash Finance
Agri finance
Bank Alfalah Limited acknowledging the vital role of a agriculture in the economic
development of Pakistan has designed Rural Finance Program named as "BANK
ALFALAH ZARIE SAHULAT". The product is designed to cater for multiple financing
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requirements of our farming sector. BANK ALFALAH ZARIE SAHULAT is available
for Short, Medium and Long terms.
Alfalah Paidawari Zarie Sahulat
Alfalah Musalsal Zarie Sahulat
Alfalah Tractor and Transport Zarie Sahulat
Alfalah Machinery & Equipment Zarie Sahulat
Alfalah Aabpaash Zarie Sahulat
Alfalah Islah-e-Araazi Zarie Sahulat
Alfalah Poultry Zarie Sahulat
Alfalah Dairy & Livestock Zarie Sahulat
Alfalah Fisheries Zarie Sahulat
Alfalah Silos/ Storage Zarie Sahulat
Alfalah Marketing Zarie Sahulat
Alfalah Agri Industrial Zarie Sahulat
TELEPHONE BANKING
BANK ALFALAH gives you a service of Telephone Banking.
Telephone banking is a service provided by a financial institution, which allows
its customers to perform transactions over the telephone.
Now customers can also speak to a live representative located in a call centre or
branch. Although this feature is not always guaranteed to be offered 24/7.
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In addition to the self-service transactions listed earlier telephone banking
representatives are usually trained to do what the branch was traditionally do.
On this you can do following;
Loan applications
I nvestmentpurchases and redemptions
C heque bookorders
D ebit card replacements
Change of address, etc
Online Banking
Online banking starts from 1998 and firstly introduced by Bank Alfalah. Online
banking (or Internet banking) allows customers to conduct financial transactions on asecure website operated by trained personnel. Online banking solutions have many
features and capabilities in common but traditionally also have some that are application
specific for ease of the customers.
The common features fall broadly provide by Bank Alfalah:
Transaction, Bank Alfalah allow to performing a financial transaction such as an
account to account transfer, paying a bill, wire transfer and applications, apply for
a loan, new account, etc
Electronic bill presentment and payment - EBPP
Funds transferbetween a customer's own checking and savings accounts or to
another customer's account
Investmentpurchase or sale
Loan applications and transactions such as repayments of enrollments
Non-transactional (e.g., online statements, check links, co browsing, chat)
Bank statements
Financial Institution Administration
Support of multiple users having varying levels of authority
Transaction approval process
Software use by Bank Alfalah
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Bank Alfalah working with temenos software from 2009. Temenos offers a range of
quality banking software products that address clients needs for both today and
tomorrow.
TEMENOS T24 (T24) :
T24 is the most technically advanced banking system in the world today. It is a 24-hour
real-time banking application that provides multiple application server support to a huge
number of users. The system also eliminates the need to run End Of Day processing. It
ties together multiple channels and provides CRM functionality and true non-stop
processing in a single system.
TEMENOS INSIGHT:
Insight is a browser-based business intelligence and financial performance management
solution specifically designed for banks running T24 as their core banking system.
Insight is fully integrated with T24 so that it operates without the need for extensive
consultation, data mapping or development. It provides flexible reporting and data
analysis tools to enable the bank to realize the full value of its system data whilst
monitoring key performance indicators in a timely and accurate manner.
MARKETING MIX (4PS)
The marketing analysis of the bank focus the promotional complain the 4 Ps of
marketing are also vision of the bank that
it uses for its marketing (called 4 Ps) i.e.
names of 4 Ps.
Product:
The product of Bank Al Falah are its
various banking services which are
following
PLS & Non PLS Account(Profit loss saving accounts and nonprofit loss saving
accounts)
ATM Cards
VISA Cards
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LOCKERS
Credit Extension.
Price:
The price for various services of bank
is given in the booklet The schedule
of bank charges. The prices at the
bank are quite competitive with those
of other bank working vertically. The
Bank Al Falah try to that they give loan at low interest.
Placement:
The distribution channels are its employees who deal with customers. The bank has over
223 branches through which it offers services to its clients in different sectors like as:
Industrial sector
Agriculture sector
Commercial Areas
Small Towns
Public Organizations
Promotion:
Various promotional techniques as advertising, personal selling etc. are used the
promotional strategies of the bank vary according to the market condition. However the
following techniques are mostly used.
Sponsorships
Sports Sponsor:
Bank Alfalah beleief in the providing the quality service through the idea of "Wherethere is Sports, there is Al Falah"
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In the arena of sports, Bank Alfalah is actively involved in sponsoring events. Sports
today not only represent healthy and clean way of life, it is big business in its own right.
The sponsoring events Sponsored by the Bank Al Falah Limited in Pakistan range from
Cricket Golf, Squash, Polo, and Volley ball, to Hockey. BAL uses attractive slogans to
prominent. Some famous Events are :
Al Falah Cup (Cricket)
Bank al Falah Pakistan Squash Open
Bank al Falah Polo
AL Falah Cricket Triangular Series
Event Sponsor
Social Events
BAL encourages extra-curricular activities and social events that allows employee to
have a social exchange outside the working environment. In this employee are
encouraged to bring their family members along, giving them a chance to fell a part of
BAL family network social events like;
Picnics
Barbeques
Sports
Cultural Tours
Actually they are creating a reference group
(a group to which attached persons feel internal recognition by
telling others about that group) and doing the marketing in terms
ofWord of mouth (The marketing that spread from one person
to others in the circle of its family, friends, relatives, neighbors
etc). Some famous events are:
Whaga Border Trip
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Lahore Basant Trip
Integrated Marketing Communications
Advertising
It is a non personal presentation in paid form to introduce a product or service idea Bank
Alfalah use the following tools for advertising.
TVC
BAL uses more TVC as compared to its competitors. They choose those channels for
advertisement where its target customers exist. They mostly choose those spots for TVC
at peak hours in between the News. And special in the cricket matches. The TV channels
it chooses for advertise are Sports channels like Ten Sports, and others like PTV, GEO,
ATV, ARY, etc.
News Paper
BAL uses leading newspapers that are read by the business class and the family heads.
They mostly gave there advertisement mostly on Jung, Dawn, The News, The Nation,
etc.
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Journals
BAL used these journals to promote their name DAWN, STAR SPORTS etc.
Magazines
BAL used these magazines to promote their activities.
Flyers
Mostly these are using when there open a new branch in a new city or a new a scheme or
product/service is introduced. Then these are used at a large scale at the chowks, squares;
outside the shopping malls, Liberty, Pace, Super Jinnah, Blue Area, Karachi company
stop, Tariq road etc.
Billboards
This is an important source of advertisement. BAL uses this only those places that have
great importance for the business class or where mostly multinationals companies have
offices and the traffic spots like Mall road, DHA, Lahore Cantt, Barkat Market, Davis
Road, LDA Plaza, and Peshawar Morr.
Hooding
These are like billboards but large in size than billboards same they are using in few
places in the big cities at important places like near big flyovers, squares, big buildings,
etc
Source of Brand Equity:
Brand equity is willingness for someone to continue to purchase your brand about my
product of Bank Alfalah. We discuss how our products attained the sources of brand
Equity.
Authenticity
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BAL is providing best services to its customers. It is there service of quality that withinnine years of there working they become the largest branch holder with in private banksand it represents their progress.
Consistency
BAL improving its products/services with the passage of time. They provide all the
customized products/services that are needed by the low/medium level income. All types
of banking are available in all the branches. They did not give any chance to his
competitor to overcome their weakness.
Reassurance
BAL always created a true faith among their customers by giving different fatalities to
their customers (WOL, WARID post paid connections) and making good relationship by
sponsoring different events (Basant Mela, Jashan-e-Baharian) social gathering, fairs on
different occasions collection for earth quake victims, etc
Differentiation
The unique point that make different BAL from other banks is that they use penetrating
marketing strategy instead of skimming, they focused on that segment which is mostly
ignored by others banks. They provide all the banking facilities (car, credit cards, debitcards, ATM cards, Home loans, Agriculture loans, study loans, etc) to a normal income
person now layman can enjoy all the facilities that he only desires. They become so
popular in banking sector that the really proof there slogan Caring Bank. The most
prominent point is that there name is spreading through word of mouth. So they needed
less advertisement as compared to other banks.
Identification:
BAL attained this level by recognition through his Slogan Caring Bank. It focused on
the layman needs and fulfill it by presenting approachable schemes of products/services.
Brand meaning:
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BAL created his meaning by presenting its valuable Products/services and covers the
customer perception.
Customer responses:
Customers response about the BAL is resulted in increased the no of branches rapidly so
that feelings of people about BAL become strong and strong with his efficiency.
Loyalty relationship:
BAL created a strong relationship with the customers. So Al Falah becomes the largest
banks that have maximum branches (177) in limited time (1997-2009) and increases this
span consciously.Positioning of Brand with respect to Competitors :
All banks positioned themselves at different unique edges to positioned in target
customer mind following are the positioning edges of various banks
ABN Bank:
They positioned themselves as for high level business and social class. They use the
skimming strategy for their growth.
Standard Charted Bank:
They positioned themselves as foreign bank there staff and environment is totally
different from the others banks. They also skimmed the market.
United Bank Limited:
They recently merged with bank Alfalah limited.
Allied Bank Limited
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They got the award of bank of the year. They positioned as old trusty bank and it use a
penetration strategy to get its goals.
Bank Alfalah Limited
They positioned as fast growing bank. They used intensive penetration strategy to
position them.
HUMAN RESOURCE MANAGEMENT
Human Resource Planning
At Bank Alfalah Limited, Human Resource Planning involves a decision making in three
areas of combined activities:
Step-I The bank identifies its organizational needs and then acquires a
right king of human resource accordingly.
Step-II Bank motivates them to achieve excellent performance by giving
them different sorts of targets according to their job requirements.
Step-III It also creates an interactive link between the employee goals and
the organizational goals.
Recruitment and Selection
Bank Alfalah Limited recruits three kinds of employees:
1. Top Level Management
2. Trainee Officers
3. Contractual Basis Employees
Training and Development
In Bank Alfalah Ltd. the process of Training and Development consists of various other
activities like:
Training:
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i. The appraisal form of an employee indicates the areas in which the
employee should be trained and developed. It also elaborates the
abilities of an employee.
ii. Management and Organization Development Division of each regiontimely reviews the employees and recommends them for training
during the operations it they note any discrepancy between the desired
and actual performance. This review is performed after every quarter.
iii. Upon the request of GM (Operation), indicates which sort of training
is needed in a particular region regarding the Operation Support and
Service.
Development:
Management Skill Training
Special Training for Foreign Transferred Employees
Performance Appraisal:
It is a structured discussion between employee and supervisor. It provides an opportunity
for the supervisor to recognize an employees achievement, offer suggestions for
improvement when needed, discuss job responsibilities, define objectives, counsel for
career advancement, and justify a pay adjustment. Regarding the performance appraisal,
bank adopts both type of approaches.
Traditional Approach:
The traditional approach is primarily concerned with the overall
organization and its past performance. In Bank Alfalah, overall
performance is reviews at branch level. Each branch is liable to show its
performance in a positive direction according to set goals.
Development Approach:
This approach viewed the employees as individuals and has been forward
looking through the use of goal setting. All the employees in the each of
the branches are given a performa. Every employee working in the bank is
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assigned targets, usually their target are in the form of amount. The
performances of all the branches are reviewed in the end of December.
Till yet Bank Alfalah, has no computerized system to assess the
performance of employees
Performance Appraisal Process:
The performance appraisal process in the Bank Alfalah Ltd. consists of four inter-related
steps:
i. Establish a common understanding between the manager (evaluator) and
employee (evaluate) regarding work expectations, mainly the work to be
accomplished and how those work are to be evaluated.
ii. Establish ongoing assessment of performance and the progress against
work expectation.
iii. Formal documentation of performance through the completion of a
performance and development appraisal form appropriate to the job
family.
iv. The formal performance and development appraisal discussion, based onthe completed appraisal form and ending in the construction of a
development plan.
Reward Management
Reward Management elaborates how people are rewarded in accordance with their value
to an organization. It is concerned with both financial and non-financial rewards. A
reward system of an organization consist of integrated policies, processes and practices
for rewarding its employees in accordance with contribution, skill and competence and
their market worth.
In Bank Alfalah the elements of reward management system are consists ofBasic Pay;
the fixed salary or wage which constitutes the rates for the job. This rate is varied in a
skill based or competence based system according to the individuals skill or competence.
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The rates are fixed by managerial judgement of what is required to recruit and retain the
employee.
In Bank Alfalah there is no any concept of individual performance related pay except to
the Business Development Officer. Business Development Officers are those who arehired at contractual basis. They are assigned different targets. If they exceed to the targets
they can enjoy the individual performance related pay otherwise they are fied.
There is no concept of bonuses, commission or over time related pay. The official timing
of bank is 09.00 AM to 06.00 PM but almost all of the employees have to work till near
08.00 PM. However, for this additional work they are not getting any additional bonuses /
over time.
Aggressive Banking
Bank alfalah expanding their network of Islamic Banking. Bank Al Baraka has been
serving the Islamic banking sector since 10 years and they have only 5 branches in
Pakistan. On the other hand bank Alfalah has established 20 branches in a year.
Motivation
Bank Alfalah motivating their employees by giving them comprehensive benefits and
professional environment within the organization, which enhances the performance of theemployees. Bank motivates their employees by giving 3 bonuses in a year.
BENEFITS
Monitory Benefits
Monitory benefits are given to the employees on the basis of their
performance like salary rise, cash prize.
Grade PromotionBank also provides benefit to their employees in the form of grade
promotion. Grade promotion motivates the employee to do their work
efficiently and effectively.
Abroad Posting
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Bank benefit their employees by sending them on overseas posting where
they can enhance their professional skills and get handsome financial
benefits in terms of salary or fridge benefits.
TARGET MARKET:
Bank Alfalah target market consists of individual clients as well as a number of business
organizations. Due to different market segments, BALs different branches have their
target markets. To capture the import business in Pakistan, the targeted segments is valid
markets known as business & commercial hub of Pakistan. Due to specialized services
provided by BAL, and its highly competitive foreign exchange rates, most of the major
importers in this area deal with BAL. Examples include; Mughal Steel and International,
New Shalimar Steel, Vellcone International, Rana Brothers etc.
As far as the individual clients are concerned, the targeted segment is posh areas like
DHA.
BRANCH NETWORK
An efficient branch network is essential for achieving its target. Its plan to open 25more branches in the year 2009, at different location in the country increasing its
network to 215 branches covering over 22 cities. Bank follows a strategy of
optimum financial and quality human resource location in order to enhance the
performance potential of all its branches.
Conventional Branches
Islamic Banking Branches
Overseas Branches
FUTURE OUTLOOK
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The economic future for the country seems brighter with many key indicators
moving in a favorable direction. Investors confidence is recovering and
entrepreneurial activity has gained momentum. They will continue to follow
strategy based on business and deposit enhancement and network expansion
POSITIONING:
The distinguish place of product/service in target customer mind.
BAL positioned itself as caring bank and customized banking. When
customer thinks about Alfalah bank the following points come in his mind.
Consumer banking
Easy approach to all departments
Felling of self respect
Fulfill of their dreams like (build own home, buy personal cars, etc).
Guaranteed profit.
Security.
All these thinks are in the customer mind. Due to Alfalah aggressive growth when ever
customer think about banking sector the first bank comes in mind that would be Bank
Alfalah. Bank Alfalah bank positioned also as a fast growing. Where there is a new town
there would be the a branch of Alfalah provide maximum products/services under one
roof .
Unique Positing:
Positing mean image of service/Product in customer mind it can be created by
various attributes or qualities of product /service. BAL positioned itself by a
unique way that It is in the customer mind that
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BAL is aggressive growing bank
New town opened Alfalah reach their first
BAL Spreads its branches at Teasel Level in Pakistan
SWOT Analysis of Bank Alfalah
Strengths
Strengths are the core competencies of any organization & as far as BAL is concerned the
core competencies of this organization are:
Target Achievement
Policies & Procedures
Controlling Standards
Priorities
Rewards & Benefits
Job Security for the Employees.
Favorable, friendly & Healthy Working Environment.
Documentation System is so much accurate.
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Accounting & Banking System is Accurate & Reliable one.
Weaknesses
Weaknesses are the lacking points which every organization must avoid in order to make
its operational effectiveness.
Hectic Working Environment.
Work load.
Lack of Self Marketing Department.
Low Training & Coaching.
Low incentives like bonuses overtime pay etc.
Human Resource Department is not so much effective.
Appraisal is not done frequently.
Low salary packages as compared to other banks.
Opportunities
In fact, when we study all our weaknesses critically & deeply than we come to know thatwe can convert our weaknesses into strengths. So basically these are our opportunities.
The opportunities for BAL are:
On the job training & coaching sessions can be conducted.
Work sharing activities should be started so that a person who is working
continuously for 9 hours can get relax.
Marketing department should be started in order to promote the name of
BAL.
Appraisal should be conducted frequently so that employees get motivated
& do their work as a loyal employee.
Attractive salary packages should be awarded.
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Threats
Though Bank Alfalah has a strong footing and maintain a good number of loyal
customer, still bank has threats in various sectors. When we see the possible
threats for BAL, the threats are prevailing such as:
o The conventional banks those having high growth rate and high market share
are always being a threat.
o There is an average not low turnover rate, mainly because of low incentives as
compared to the other banks.
o Large business parties have fewer attractions in being a client of BAL-IBD,
mainly because of excessive amount of documentation.
PEST Of Bank Alfalah
Political :
Analysis of Political environment is very critical and thisenvironment has a strong influence upon the activities of any
organization in a society. Political environment strongly affects the
marketing decisions. The political stability of a country has its
impact on the consistency of policies of local government. Pakistan
has always been struggling for political stability since its creation.
Government has been changing in Pakistan many times due to
multiple reasons and most of the times Military has taken the
charge of the government. So, there are significant political risks in Pakistan. But the
positive aspect is that State bank of Pakistan has been given sovereignty and it is now an
autonomous body in making its decisions. From this perspective environment becomes
suitable and favorable for Islamic banking. BAL-IBD can make their strategies
accordingly as there is no chance for any major Change of policies in near future.
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Economical :
Pakistani economy is good for foreign investments and it is also good for Islamic banking
sector of Pakistan.GDP rate of Pakistan is showing a consistency in upward directionand per capita income has increased as compared to past. FDI is increasing every year.
Home economy is in recovery phase but it is showing good indicators for banking sector.
Some transactions of Islamic banking like modaraba have been promoted by giving
incentives. As Pakistani economy is showing some level of stability and consistency from
last couple of years, so its good sign for BAL Islamic banking as well.
Socio-Culture
Pakistan is situated at very important geographically location and it has a diverse culture.
Islam is the religion of majority of the population and Islam has deep and ever lasting
influences upon the culture of the people of the area. So, the life style of people and
attitudes of consumers is favorable for Islamic banking as people are religious and they
want to deal in Islamic finances. Pakistani people have a respect for their religious and
cultural celebrations. BAL Islamic banking is taking an advantage of this socio-cultural
environment of Pakistan.
Technological :
There is lack of proper infrastructure in Pakistan, for that reason different sectors are not
becoming able to cope with the technology. Banking sector has introduced a lot of
innovative services with the help of technology. Islamic banking is also on its way but it
is expanding slowly as compared with potential demand of Islamic banking.
Comparison with Competitors
Boston Consultant Group Matrix (BCG) Model
G
r Market shareHigh Low
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owth
rate
High Car
Financing
Home Financing
Online
Banking
Islamic Banking
ATM
Debit
Card
Low Deposit
Investment
Credit Cards
Rupee
Traveler
Cheque
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Star:
In the star, we have Car Financing Home Financing Online Banking which show the high
growth rate and high market share.
Cash Cow:
In the cash cow, we have Deposits Investments Credit Cards which show the low growth
rate and high market share.
Question Mark:
In the Question Mark, we have Islamic Banking ATM Debit Card which show the high
growth rate and low market share.
Dog:
In the Dog, we have Rupee Travelers Cheque which shows the low market share and low
growth rate.
Comparison (Car Finance)
Alfalah Bank Citi Bank1-Alfalah Car installments remain samelinked with KIBOR.
2-In case of booking of vehicle Alfalahbank charge installment with insurance.
3-The mark up rate of Alfalah Car is15.50%.
1-Citi Bank Car finance installments flu-charts annually linked with KIBOR.
2-Installments start right from the firstmonth regardless of delivery of vehicle.
3-The mark up rate of Citi Bank Carfinance is 16%.
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Alfalah Bank MCB Bank1-Alfalah Car installments remain same
linked with KIBOR.
2-In case of booking of vehicle Alfalahbank charge installment with insurance.
3-The mark up rate of Alfalah Car is15.50%.
1-MCB Car 4 U installments flu-charts
annually linked with KIBOR.
2-Installments start right from the firstmonth regardless of delivery of vehicle.
3-The mark up rate of MCB Car 4 U is14.25%.
Financial Analysis/ source of finance
1. Investments
Bank has classified its investments under three titles and that are:
Hold for trading: These investments are short term investments whichbank has kept for generating profit by the fluctuations in price of securities and
interest rate etc.
Held to maturity: These are the investments which have fixed ordeterminable payments and bank has intention to keep them till maturity.
Available for sale: These are the investments which do not fall under thetitle of Hold for trading and Held for maturity.
2. Advances
Loans and Advances: BankstatesLoans, advances and lease investments net of
provisions against non performing advances. Provisions of specific and general
nature for operations in Pakistan are made in accordance to the rules and
regulations which have been defined by the State Bank of Pakistan. The
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advances to overseas customers are handled under the prevailing rules of the
customers country.
Finance Lease Receivables: In lease, Bank transfers the entire risks and rewards
incidental to the owner of the assets. Bank recognizes the present value of the
lease payments under a receivable and shows them under the title of advances to
customers in the balance sheet.
3. Fixed Assets:
Fixed assets are categorized into two classes. Accounting Policies regarding these classes
have been discussed below:
Tangible Assets:
Fixed assets except office premises are recorded at cost less accumulated
depreciation and accumulated impairment losses, if any. Office premises are
recorded at revalued amount less accumulated depreciation.
Depreciation on the fixed assets is charged on straight line method.
Depreciation is estimated while keeping the amount of residual value of the
assets (if any) in the mind.
Maintenance cost and repair charges are charged to the income and
subsequent costs are stated as carrying value of the asset or under separate
head whichever is appropriate, if their period of benefits extends more than
one accounting period.
Office premises are revalued by the professionals so as to eliminate the effect
immateriality from the fair value of the assets.
Surplus from the revaluation is stated as surplus on revaluation of the fixed
assets and deficit is deducted from the previous value of the surplus on
revaluation of fixed assets. The value which exceeds from the incremental
depreciation charged to the assets is transferred to the inappropriate profits.
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Gain and losses are transferred to income except those which are related to
surplus. Those are directly transferred to inappropriate profits.
Intangible Assets
Intangible assets which have finite life are stated on the balance sheet on the
cost less accumulated amortization and impairment losses, if any.
Amortization on the intangible assets is charged on straight line method on a
rate which is reviewed on the balance sheet in order to eliminate the factor of
immateriality.
The other intangible assets which have infinite life are stated on the cost less
impairment losses if any.
Financial statement analysisOperational results
All figures are in millions
2008 2009 2010
Operational results
Total Income 31,822 35,789
40,743
Operating Expenses 8,289 9,957 11,002Profit before income tax and provisions 6,906 3,831 4,711
Profit before income tax 4,536 1,795 1,016
Profit after tax 3,130 1,301 897
EPS
Basic earnings per share (Rs.) 3.92 1.41 0.71
Source: Bank Alfalah Annual report
Total income was 31,822 million in year 2008 and it has increased in the last two years.
Operating expenses has been increasing in last three years. Following the year 2008
operating expense was 8289 million, year 2009 it was 9957 million and in year 2010 it
was 11002 million. Basic earnings per share have decreased so far with 0.71 till 2010.
Profit before tax
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Profit before tax as you can see above, It has been decreasing in last three years. This
shows that year 2009 profit is much lower as compared to year 2008 and in year 2010
profit is less than year 2008. The reason being this decline is higher operating expenses
which lead its profit to cut down.
Balance Sheet
Table below shows the advances and deposits comparison as well as last three year
change.
The source of the finance or investment to the Bank Alfalah are shown in the table below:
Earning for the Bank Alfalah gets from the mark-up or the interest earned and they are the
one of the source for the Bank.
The earning for the holding of the securities also increase and increase the source of the
finance.
From the table one of the problem seen that interest earned or return from the customer for
the Bank in 2010 is lower as compare to the 2009.
But the interest from the financial institutions increase in 2010 as compare to the 2009.
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All figures are in millions
2008 2009 2010Balance Sheet
Shareholders Equity 13,767 14,609 19,770
Total Assets 328,895
348,991
389,070
Advances - net of provision 171,99 191,790
188,042
Investment - net of provision 88,492 75,973 99,160
Deposits and other accounts 273,174
300,733
324,760
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CONCLUSION & SUGGESTIONS
BANK ALFALAH under the leadership of Sheikh Nahayan Mabarak Al-Nahayan has
made significant in building of strengthening both the corporate and retail banking
sectors in Pakistan.
BANK ALFALAH views specialization and service excellence as the cornerstone of its
strategy. The people of bank innovation, creativity, reliability, customized services and
their execution are the key ingredients for their future growth. Based on this approach,
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their Treasury Division and the Structured Finance Unit have been geared to provide
specialized services to the Corporate customers. Revenues from these activities have
started yielding dividends and they expect significant growth in these areas in the coming
years. While building on their in-depth familiarity with their customers needs and
anticipated developments in the banking industry, the Retail and Corporate areas of their
operations will continue to provide a strong and stable base to the business of the Bank.
They are aware that they have stepped into the 21 st century and they must meet its
challenges by acquiring the highest levels of Technology. They will thus be accelerating
their enable them distribute their products and services through most efficient and high-
tech means. They say that they will invest in the modern tools and substantial allocation
of resources will be made to achieve this objective during the current year. Their
programme to launch real time on line Banking Services and introduction of ATMs at
strategic locations have been firmed up and it will be fully operational during the year
2001.
Their focus would be to constantly seek out growth opportunities through increased
quality assets and by offering a wider range of products and services to their esteemed
customers. There are significant growth opportunities for BANK ALFALAH and they are
confident in their ability to grasp them. They are committed to enhancing the
shareholders value and look forward with greater optimism to a prosperous future for
BANK ALFALAH
The bank maintained its position as the fifth largest bank of Pakistan in terms of total
assets. BALs advances witnessed sizeable growth (around 14%) funded by healthy
deposit mobilization. The growth was above the industry further strengthening BALs
system share. However the banks share in the industrys deposit base experienced a
marginal squeeze, attributable to its cautious approach towards deposit mobilization to
achieve a favorable deposit mix for augmenting spreads. In addition, BAL continued
expanding its consumer base with main focus on credit cards, followed by mortgage
business.Bank Alfalah Limited is a well-known and successful financial institution in the
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banking sector, it is said, nothing is perfect in the world, and there is always space for
deficiencies.
Although the bank has a vast network of nationwide branches but it should spread
its branch network throughout the world especially in the countries involved in
international trade with Pakistan.
In order to compete with the other banks. ATM services should be excellent as we
can see the growing competition among the banks.
The bank should acquire the services of the highly qualified people accompanied
by lucrative incentives to promote its status as desirable in the next millennium.
In order to market its products it should accentuate to give advertisements on both
print and electronic media.
The quality of human resource lies at the center of every organizations success
and no doubt, Bank Alfalah Limited is fully aware of the importance of a satisfied
and well-trained work force that gives completive advantage but the problem,
which I have observed, is that employees of Gulberg Branch do not have enough
knowledge about their products. Therefore, the policy of the bank should be to
continually encourage its employees for their knowledge enhancement about their
products. The state of the art training and development center at Bank Alfalah
should arrange workshops and seminars for employees at every level to empower
them professionally.
Bank Alfalah Limited operates as progressive and adaptive organization
maintaining dynamism and flexibility in all facets of its operations but in this era
of stiff competition it should consider to launch new products to attract the
customers.
Their aim should remain to provide customers with value pricing and to ensure that
quality of their portfolio is never compromised despite market pressures.
Going forward, the bank intends to maintain the growth trend. While preserving
diversification in the credit portfolio, the management intends to deploy additional funds
in risk free avenues including direct/indirect sovereign lending. Growth in consumer
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financing is expected to be fuelled mainly by the credit card business. Meanwhile, BAL
plans to add 49 new branches to its network in the near-term with primary focus to build
low cost deposit base. Though BALs profitability is likely to improve, it is expected to
remain under pressure on account of rapid network expansion. Meanwhile, the bank, in
addition to exploring prospects of entry into other regional countries, intends to fortify its
existing overseas operations with expansion in branch network and deployment of
complete suite of all financial products.
BAL is undergoing a revamping of its organizational structure with an aim to improving
the efficiency of decision making at all levels and enhancing the quality and timeliness of
its services. Besides, instilling a risk conscious culture is also a key objective. BALs
Risk Management Division (RMD) has developed Credit Initiation and Internal RatingSystem (CIIRS) in accordance with Basel II for generating obligor internal ratings. CIIRS
provides technological platform for assessing credit worthiness of new and existing
customers and enables structured analysis of customer data for decision-making. The
system is currently in validation phase. Moreover, the bank is implementing Economic
Capital Framework (ECF) across the bank, which is expected to enable BAL to quantify
and attribute cost to various material risks besides facilitating in calculating the risk-
adjusted profitability of each business line.
The Bank is now over staff the building under operation is in adequate for such a large
staff as new branches opening in different part of city should be availed.
Under no circumstances cheque book should be given if the account formalities
should be complete.
There are two officer involved in Cash Deposit process which is time consuming.
Cashier should be given certain powers to receive cash of US$ and DM to provide
prompt services.
Cheque which are drawn on Bank Alfalah Branch and returned unclear in clearing
are not reflected in the statement of account of the customer. These cheques must
be reflected in the account so that credibility of the customers may be assessed.
The bank should try to give more loans to the small borrowers as the past history
shows that most of the loans given to corporate borrowers have converted into
bad debt
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