I have completed my six weeks internship in Bank Alfalah Limited Arifwala. I tried my best to gain practical knowledge from this opportunity. My report starts with the first chapter Background of Bank Alfalah Limited, vision and mission of the bank. Bank Vision & Mission statement shows the focus of bank, the overall scope and the reason of existence. Second chapter start with the business operations of the bank and includes SWOT analysis which is very important for any organization. Third chapter is about business process analysis The final chapter is learning as a student intern in this chapter I include my duties, accomplishments, new knowledge acquired, problems which incurred during my internship and impact of this internship into my career.
Bank Alfalah Limited provided me a great official knowledge through there positive response to me in which my full concentration is also involve to learn more and more within a small duration of this precious time. So, I have fully satisfied from there honorable cooperation with me.
Now I have knowledge about various official activities and also know how an organization manages its business process.
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 public 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 ordinance, 1962. Bank is presently operating through 321 branches and 266 state of the art ATMs with the registered at head office of Karachi
As its beginning, as the new introduce in 1997, management of bank has applied strategies and policies to cut a different position for bank in the market place. Strengthened with the banking of the Abu Dhabi Group and driven by planned goals set out by its board of management, Bank has invested in recent technology to have an increase range of products and services.
This facilitates our requirement to culture of advance and seeks out synergies with clients and service providers to ensure constant services to its customers. Organization perceives requirements of its customers and contests them with quality products and service solutions. Passing fives years, it has comprised as one of the famous financial institution in the region endeavoring to meet the needs of future and present.
Product Portfolio
Bank Alfalah Limited not only complete but also customizable to contest the needs and preferences of the customers. These strategic characteristics of the portfolio have helped Bank Alfalah Limited to face challenging economic conditions.
The product schedule continues to complete and assure the banking necessities of not just the conventional consumer, but the demanding financial needs of the corporate sector as well.
The lineup includes:
Car Finnancing
Rupee Travelers Cheques
Home Loans
Real time On-Line Banking
Money Gram Remittance Services
Credit Cards
Alfalah Zarie Sahulat
Hilal Cards of Visa Electron with world wide acceptability
Dedicated professionals
The Bank Alfalah Limited team comprises of devoted professionals prepared with a diverse collection of skills, huge experience and pro customer attitudes. The management concentrates its energies on making informed economic decisions, translating it into superior returns for our investors and customers. This careful position has created a synergistic managerial formation foremost to improvements in profitability and a sustainable competitive benefit for the bank.
1.2 Bank Alfalah Arifwala Branch
Bank Alfalah Arifwala branch was established in August 13, 2005. Qaboola Road Arifwala, where branch of Bank Alfalah is situated, is in the out side of the city which gives this branch an increased importance. First day of BAL collect a deposit from different customer almost four lacks. Bank Alfalah has major competitors, Habib Bank, Faysal Bank, Punjab Bank and National Bank earned huge profits in this area. Therefore, to capture the business and to target this very important area, Bank Alfalah launched its Arifwala Branch, with a bright and clear vision of customer service.
At the time of my internship, the branch was passing though the imitial five years of its existence and therefore had a small number of staf members. It has a total of 17 employees, ranging from the Bank Manager to the Tellers. Other than these officers,
There were about eight workers ranging 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 opportunity for working in concerned branch, and confronted with enough exposure and opportunities to learn.
1.3VISION
"Our vision is to be a leading financial institution, with a niche in areas where we have a competitive advantage with complete banking solutions. Our focus is on improving performance in each of our businesses to achieve consistent and superior returns for our highly valued clients and shareholders."
1.4MISSION
"Our mission is to maintain a competitive edge in quality banking, customer service and profit performance. Our activities are geared towards making Alfalah a responsible corporate citizen. The emphasis on quality and innovation will remain our key mission statement. We will continue to strengthen our position as the leading provider of quality financial services in Pakistan."
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 Operations
Mr Muhammad Shabbir
C..D. Incharge
Mr Muhammad Saeed
Officer Op/Clearings
Mr Muhammad Farooq
Accounts Officer
Syed Haider Raza
Relationship Manager Credit
Mr Tahir Abad
Rural Finance Officer
Mr Hammad Zahoor
A/C Org & Chq Bk
Mr Najam Ul Saqib
Chief Cashier
Mr Muhammad Ali
Cahier
Mr Suleman Athar
Cashier
CHAPTER NO.3
SWOT ANAYLSIS
Swot Analysis
An analysis indicating towards the organizations strengths, weaknesses, opportunities and threat is termed as SWOT Analysis. Such an analysis is very important for the management in retaining the strength, overcoming the weaknesses, capitalizing over the emerging market opportunities, and carving ways to successfully tackle with the threats and ultimately converting them in the strengths for the organization.
During six weeks of my stay at Bank Alfalah Arifwala Branch, I have come across the following SWOT analysis of the bank.
3.1 STRENGTHS
Bank Alfalah is leading As Compare to Competitor:
Bank Alfalah Limited is the leading as compare to other competitor because this bank provides many facilities to our customer without free of cost. Therefore bank alfalah has good repute to other competitor such as fasyal bank, habib bank, and allied bank
Full Day Banking
One can gain the benefit of the services provided at the bank till 6:00 P.m. which is highly useful for those customers who find it difficult to leave their officers in the morning. As evaluate to competitor bank alfalah closing time end of day is very right for customer. Any customer should be allowing 9:00 A.m. to 6:00 P.m. our cash will be deposit and withdraw. Working time of bank alfalh is more smart as compare to competitor.
Customer Oriented Banking
Bank Alfalah Arifwala branch gives right of way to customer oriented banking where the customer receives vastly competent services in a highly better environment. It
gives the chance of experiencing new standards in banking. Designed specially for those who understand only the finest things in life, Priority Banking offers the very highest levels of modified banking to equivalent customer's unique position.
Electronic Banking
First time in Arifwala bank Alfalah is commence electronic banking system such as ATM, online etc.The revolution in the banking in the form of electronic banking operations have opened avenues of brilliant, efficient and quick services saving the time and costs of the customers and luckily Bank Alfalah LIMITED is among those few banks who are before now reaping the reimbursement of electronic dealings.
Phone Banking
Phone banking service is very good-looking for those classes of customers who don't have time to personally come to the bank i.e. banking on the phone line thus saving the valuable time of the customers
Ethical Concerns and Public Image
Bank Alfalah Arifwala branch showing fear for the people, principles, and atmosphere enjoy good public rank and are able to collect the profit in the long run. Bank Alfalah Limited management is quite responsive to this matter.
Product Knowledge
Staff of BAL Arifwala branch is highly qualified as compared to competitor. Every staff has complete knowledge about bank product. BAL gives a special training to a staff about product.
Pleasant Environment
Bank Alfalah Arifwala branch fully air conditioned and roof with selling. Bank alfalah provide attractive environment to our customer. Bank alfalah environment is very better as compare to competitor such as national bank and ubl bank etc.
Loan Provide To Staff
It is providing 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 concerning banking services. If there is any complaint by the customer the bank authorities examine the reasons for complaint. Complaint monitoring system is an brilliant one at Bank Alfalah that shows that bank principles more to its customers.
Following strength of Bank Alfalah Limited
Reposition team for recovery vehicle debit form debtors
Quality assurance service
Alfalah Kamyab Karobar Account
Very less default ratio then other bank
Favorable product combination (speed of service free of charges)
Environmental improvement (centrally air conditioned, neat, clean, ventilated, lighted and decorated )
Manager relationship with the market
Organizational trust and repute in the market
3.2 WEAKNESSES
In my opinions these are the points that might be detrimental to the efficiency and profitability of the bank.
Manual Book-Keeping
Although the Bank Alfalah has automated accounting system but, still the bankers use to make their entries in the accounting register. Such as remittance officer many entries keep in manual book-keeping.
Lack of Knowledge and Coordination
Usually, the attitudes of the employees are not serious with each other and have professional covetousness, which is not healthy for the bank. Mostly staff of bank alfalah of Arifwala branch has lack of knowledge and coordination. As every staff has not complete knowledge about product and rules and regulation. Therefore customer should not satisfy with staff.
Centralization
There is a high level of centralization in the bank. Approximately all the decision-making is in the hands of the upper management. But centralization is useful up to a certain level otherwise it becomes incompetent and at times costly too. I personally practical that delay occurred in the operations of the employees only due to the truth that they had not got any commands from the head office.
Lack of Training Facilities
Bank Alfalah Arifwala branch has not human resource department. Due to currently there is no definite training program arranged for the new recruiters. They have to learn based on their observations and also their mistakes. It takes a bit time for the fresh one to learn the banking the result is vast amount of blunders, mistakes etc. resulting in monetary and non-monetary losses for the bank. There is pressure not only on the new learner but also on the person placed upon with this responsibility.
Poor Service Quality
Service quality of bank alfalah does not according to standard. Otherwise customer is not satisfied with bank service. Because checque is not clear and cash is not available on counter at a time due to customer face many problem.
Poor It Equipment
Main weakness of Arifwala branch has not standardized IT equipment and due to online system of this branch is not efficient. Otherwise during account opening waste a lots time of customer as compare to competitor.
Credit Procedure Is Very Difficult
Credit setup at Bank Alfalah is such that the credit customer is handled at different counters. Such segmentation of credit approval processing is useful for handling credit related tasks but customer who comes to the bank for getting credit facility doesn't understand it. He wants that he must be handled at one place. So the lengthy process of credit approval creates a feeling of dissatisfaction among customers.
Following weakness of Bank Alfalah Limited
Very less default ratio then other bank
Favorable product combination (speed of service free of charges)
Environmental improvement (centrally air conditioned, neat, clean, ventilated, lighted and decorated )
Manager relationship with the market
Organizational trust and repute in the market
Uncontrollable admin expenses
Lose control of securities
Theft and pilferage by the clerical staff
Trouble shooting in electrical , mechanical and fitting appliances
Most of the staff is out stationer.
Insecure health policies of the bank for staff
No marketing skills and efforts by the organization
3.3 OPPORTUNITIES
A part from the ones discussed in External Factors Evaluation Matrix, the bank is facing the following threats and opportunities currently.
These are positive external environmental factors effecting the organization.
It must build up its human resource section in branch. It must be regulated and begin working of creating consciousness among people of banking.
Bank Alfalah Arifwala has not yet entered in business of car financing. It can capture the market and easily earn profits.
High rate of population growth
Healthy financial activities and comparative advantage for the customer.
Timely repayment systems.
Low costs and expense cutting policies.
High rate of return on deposits.
Differentiating the product lines
Bank Alfalah of Arifwala branch can diversify its funding base and earn foreign exchange by investing into capital markets.
Bank Alfalah should think more industrial sector and agriculture sector. They should provide finances to the farmers both on short term and long term basis.
3.4 THREATS
Other foreign financial institutes like FBL SCBL etc have strong banking policies, people might toward these financial institutes to secure their investments, transactions, and related services.
The competent employee of Bank Alfalah may move to other competitor banks, as the pay in Bank Alfalah is less than the remuneration offered by other banks
The number of banks increasing in Arifwala day by day and they are provided good customer services as compared with the Bank Alfalah, so it may lose its market share in the future.
Financial environment is changing day by day; new technologies are introduced by competitor's banks that provide customers by efficient and quick services
Rumor of bankruptcy in October,2008
Load shedding
High inflation
Political instability
Terrorism
3.5 MARKETING STRATEGY
Marketing policies are also one of the most important policies because they are related to the growth of the organization. Marketing for a bank would mean.
Bank Alfalah targets that customer whose income level is above 40,000 thousands. The reason is that if some time bank wants to loan to them then they return easily otherwise bank lose his customer as well as his money. On the other hand, Bank Alfalah target class is includes all the classes of the community like upper, middle and low level class all are their targeted customers.
To satisfy the demands and needs of its target customers it provides its products to them who then promote the products to small-scale users. Bank Alfalah supplies them his products at better as compared to other its competitors. All of its products satisfy the needs and demands of the small users in national and international level.
Bank Alfalah use the following strategies for targeting his customers and target market
Meeting with account holders on daily basis
Having complete customer profile
Contact with agents of different business firms
Contact with business owners
Creation of new product and services.
The bank marketing must be consumer oriented.
Giving good services and maintaining good relations with the customers
Bank Alfalah Arifwala branch offer a special rate to customer
These policies can be implemented by providing the right product and service to the customer at the right place, at the right time, at the right price.
Promotional strategy
Bank Alfalah use promotional strategy as first defined his target market and then develops promotional campaign for targeting them and introduces his products and service to them. For promoting his products the bank Alfalah use the Following strong tools of bank Alfalah tools for the better promotion of its brands:
TV(Cable)
Radio
Pamphlets
Loyal Customers
The promotional strategy of bank Alfalah is designed to increase the sales by offering an inducement, such as extra product, free gifts, fresh notes, and free online etc. The promotional strategy of the company is based on
Trade promotions
Consumer promotions
Promotional campaigns provide added incentive, encouraging the target market to perform some incremental behavior, which is highly necessary. Communication with
The target market should be always there and Electronic and Print Media should be used for promotion of financial product.
For this purpose the bank Alfalah efficiently uses the Pull strategy to pull the customer toward the brand. On the other hand its Push strategy helps the company to push the product towards the consumer. This pull and push increase the company's sales volumes.
3.6 COMPETITIVE STRATEGY
From knowing Bank Alfalah customers' requirements to understanding employee needs, from utilizing modern technology to making responsible social contributions, from enhancing stake-holders' value to practicing corporate ethics, Bank Alfalah is continuously and consistently striving to address newer challenges with a single motivation - the power to inspire and be inspired. Organizational goal and strategy define the purpose and competitive techniques that set it apart from others organizations. Goals are often written down as an enduring statement of company intent.
Customer Relationships
Knowing Bank Alfalah customers and their needs is the key to Alfalah business success. Bank Alfalah products and services are prepared to touch and improve the quality of lives of all segments of society. Service quality standards are planned and monitored to ensure a consistent and suitable customer familiarity. Bank Alfalah client relationship manager is well prepared and well trained to provide most efficient and personalized service to each and every customer. Bank Alfalah products and services are as diverse as market segments.
Employee Relationships
Bank Alfalah staff is most valuable asset. The human resource philosophy at Bank Alfalah Limited focuses on multi-talent hiring, professional grooming, requisite
training and meritocracy based reward system. Bank Alfalah lays great emphasis on the development and nurturing of Culture, a cohesive teamwork, where each relies on the strength of the other and together they achieve common objectives.
Ethical Values
Because the right may not always be obvious, BAL must be guided in every action by a set of well-defined values, governing BAL decisions. BAL understands that its commitment to satisfy customers' needs must be fulfilled within a professional and ethical framework. Bank Alfalah subscribe to a culture of high ethical standards, based upon development of right attitudes.
The following primary core values provide the guiding principles for Bank Alfalah corporate behavior.
Commitment
Integrity
Fairness
Team-work
Service
As part of Bank Alfalah internal communications program, these core values are inculcated in employees through internal memos, posters and most importantly leading by example.
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 functions of each department working at each branch of Bank Alfalah Limited of Pakistan.
4.1.1 ACCOUNT OPENING DEPARTMENT
Bank provides facilities of its products or services, cash and funds transfer to its customers through their accounts in its branches. Accounts opening department makes its possible for customers to open their accounts in bank. Accountholders are provided full facilities on utilizing and services of the bank (rates of interest).
Eligibility Criteria
Account holder must have:
18 year of age
Income sources
Pakistani nationality holder
Not defaulter of banking system
Introduced by an accountholder
Documents Required
CNIC of applicant
Next in KIN(alternate to approach accountholder in his/her absence)
Income/business proof (letterhead pad in case of business as sole proprietorship, partnership deed in case of business as partnership)
Account opening form (available at bank branch)
Security
Account opening is very sensitive department. This department contains documentation and information about customer's record. This department provides information about status of accounts to accountholders. BAL opening department provides information to accountholders no other person is given information about any account.
Account Opening
When a customer fulfills all the requirements, he/she is eligible to operate an account in bank. He/she fills the application form and signs it in presence of account opening officer. Account opening officer verifies signatures on documents and forwards application to branch manager for approval. After evaluation of application branch manager approves application. After approval from branch manager account opening feeds customer's information into database issues an account number which he uses for cash submission and with withdrawals or transfer from bank. Customer initially deposits money as initial deposit into his / her account.
Cheque Book Issuance
Accountholder signs a request for the issuance of cheque book. Cheque book contains cheque used for transaction (Debit Transfer or Transfer Transaction) into his/her account. Cheque book requisition form is sent to head office for issuance of cheque book
Account Statements
Account opening provides account statement to customers on demand. An Accountholder fills request (Application Form) for issuance of account transaction statement for specific period of time. Account Opening Officer after charging statement fee from account issues an account statement to customer.
Stop Payment or Transfer against Lost Cheque
If accountholder loses his one or more cheque, he / she fill application to stop payments against that cheque. Account opening department blocks payments or transfer against requested cheque.
Closing an Account
When an accountholder no longer wants to maintain an account in he/she has option to close the account. If accountholder returns cheque book and pay account closing fee, Account opening officer closes that account from database for further transactions.
4.1.2 FINANCE AND ACCOUNTS DEPARTMENT
It is the most important department of a bank. One can have a complete view of the functions and performance of bank from the accounts. The department is responsible for.
Keeping record of each and every transaction.
Maintenance accounts.
Preparation of several daily, weekly, monthly, quarterly, half yearly, and yearly reports.
Analysis of the reports.
Efficient management of funds.
Giving recommendations for improvement in the functions and methods.
Record Keeping
For every transaction a supporting voucher is prepared. From all the departments vouchers are transferred to the accounting department. In the department vouchers are sorted out and are maintained under 37 heads. Vouchers are matched with the Activity Report. A voucher is printed slip and for matching purpose the account number and the account title printed on the slip are used. The activity report shows
Every transaction that takes place as well as the name of the operator carrying out the transaction. The activity report shows the final balance of every account. Daily a sheet showing the total number of vouchers under each category is printed. From that sheet the total number of vouchers is transferred to the
Voucher Register
Microfilm of each voucher is made and if there is any mistake it is also pointed out and relevant changes are made in the records of accounting department. Vouchers are kept in records for particular period of time and then destroyed. After that if any of the voucher is to be checked, microfilm is used for reference.
Reports
Following reports are prepared daily:
Statement of Affairs
Statement of Income and Expenditures
Statement of Affairs:
It is printed daily and gives complete detail of assets and liabilities of Bank. It describes where the bank stands at a specific date. Main heads of assets are cash in hand, balances with CB, ST receivables, due from Banks, advances, investments, other assets, suspense account, sundry creditors, furniture and equipment, profit/loss (expenditure), main office, contra assets, Miscellaneous adjustments.
Liabilities give detail of reserve for taxes, bills payable, due to Banks, deposits, capital and reserves, profit/loss (income), main office, contra liability, loans loss reserve, suspense interest, reserve for contingencies.
Daily Balance Sheets are formatted to generate different reports. Following are the reports, which are made according to the guideline of SBP monthly.
Statement of Income and Expenditures:
It gives details of income and expenses of the Bank.
1. Monthly Statement of Liabilities and Assets:
2. List of Classification of Credit by Borrowers:
It is printed monthly. Main classifications are foreign constituents Domestic constituents:
Government
NFPSE (Non financial Public Sector Enterprises)
NBFIs (Non-Bank Financial Institutions)
Private Sector (Business)
Trust Funds and Non-Profit Organization
Personal
Others
4.1.3 CREDITS DEPARTMENT
PURPOSE OF CREDITS
Earnings of a bank are dependent on CREDITS, because:
A bank receives (borrows) deposits. It pays cost on these deposits.
On the other hand bank lends the deposits to borrowers and charges interest on the lending. This function is performed by CREDITS in any bank
IMPORTANCE OF CREDITS:
Credits are the most important department of a bank. Performance of all other departments is dependent upon "Credits". It attracts corporate accounts, as a company prefers to do import and export business from the banks from where it is availing limit (credit) facilities.
RISK INVOLVED IN LENDING:
Though lending is main source of earnings for any bank but it is risky as well. Whenever money is advanced to any customer there is always a risk involved of default. To minimize the risk involved BAL gives loans to credible customers.
SUB DIVISION OF CREDITS:
CREDITS are further sub divided into two sections:
CREDITS-MARKETING
CREDITS-ADMINISTRATION
CREDITS-MARKETING
Marketing personnel is responsible for attracting customers to bank for advancement of loan facilities. They must have complete information of trends in the industry. However several precautions are followed to give loans to only credible customers, as the aim of bank is to recover the money at time and through earnings of the client and through liquidation of securities.
BAL always prefers to give loans to credible customers. For this BAL requires information about:
Directors.
Viability of his business
Production facilities
Market reputation
Market value of the product
Capabilities of Marketing, Finance, and Administration Department.
CREDIT LINE PROPOSAL:
A CLP is prepared on the basis of above facts. It is forwarded to HEAD OFFICE. If HO is satisfied then it gives a "CREDIT ADVICE".
OFFER LETTER:
On the basis of credit advice the branch prepares an "offer letter". This letter gives a detail of the terms and conditions such as duration of facility, securities, mark up etc.
After fulfilling the entire formalities loan is advanced.
After the disbursement of loan marketing personnel keeps track of every activity of the party.
They continuously observe the financial statements of the customer.
Detail of credit line proposal prepared by marketing personnel is given below.
4.1.4 REMITTANCES DEPARTMENT
Following are some of the instruments used for transfer of funds within the same city or between cities.
PAY ORDER
DEMAND DRAFT
TELEGRAPHIC TRANSFER
ONLINE TRANSACTION
PAY ORDER: (PO)
Pay order is used when payment is to be made to someone within the same city. PO is used for safety sake as unlike cheque payment against PO is confirmed. There are many chances for a bearer cheque to be bounced like a cheque can be post dated, out of cash, amount in figures and words may not be the same etc. Amount in pay order is guaranteed as purchaser has deposited the amount.
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 procedure for payment and collection of instruments lodged inward or outward through "State Bank of Pakistan / national Bank of Pakistan (Chest Branches of SBP) . It is the transfer of funds from one branch of bank to the other branch of the same bank or the other bank on which the instrument is drawn, without involving cash through State banks / NBP clearing house.
CLEARING can be of two types:
OUTWARD CLEARING
INWARD CLEARING
OUTWARDCLEARING:
All the instruments (i.e. cheques, pay orders, travelers cheques, demand drafts), which are originated by some other banks, and are presented to the BAL are included in outward clearing.
INWARD CLEARING:
All the instruments, which are originated by BAL and are presented for payment to the bank by representative, are part of inward clearing.
ENDORSEMENT
It shows that cheque is meant for outward clearing "Payee's account only" is to be credited.
TRANSFER
In case of transfer both payer and payee have accounts in BAL. Therefore BPG will be debited and payee's account will be credited.
CASH
In this case only the name of payee is mentioned and not the account number. Payment of the counter is required (urgent). Certain formalities are to be fulfilled:
Payee has to come herself with the instrument to issuing bank.Payee must know someone in Alfalah who is willing to verify her signatures as well. If the officer is satisfied then he will cancel the payee's account stamp. However, payment through cash is in rare cases.
COLLECTION
It is facility given to customers for collection of their outstation checks. The checks undergo a process of clearing. Collection involves:
OUTWARD BILLS FOR COLLECTION
INWARD BILLS FOR COLLECTION
OUTWARD BILLS FOR COLLECTION
The process is as follows:
All of the outstation checks become a part of "Outward Bills For Collection".
These checks are given OBC numbers (which is a serial number) from "OBC REGISTER"
Information relating to the check is entered in the register such as DATE, CHECK NUMBER, BANK ON WHICH CHECK IS DRAWN, and AMOUNT OF CHECK etc.
These checks along with "OBC FORWARD SCHEDULE" are sent to the cities where the banks are located on which these checks are drawn. All of the checks are forwarded to the MAIN BRANCHES of BAL in the respective cities.
If a check is meant for a city where BAL has no branch then it is directly forwarded to the branch of bank on which it is drawn.
For all of the checks forwarded following entry is passed.
CUSTOMER LIABILITY DEBIT
BANKERS LIABILITY CREDIT
The entry is reversed on realization.
After the realization of checks, a check along with credit advice is mailed to the concerned branch, which serves as it debit voucher.
They are asked to respond by debiting the BAL MAIN BRANCH HO ACCOUNT maintained with them.
There are 4 copies of credit advice:
ORIGINAL COPY
RESPONDING COPY
OFFICE COPY
Original and responding copies are sending along with the checks to the concerned branches.
INWARD BILLS FOR COLLECTION
The process is as follows:
All of the checks that are received from other cities become a part of "INWARD BILLS FOR COLLECTION".
Each check is given "IBC NUMBER" (which is a serial number) from "IBC REGISTER".
Information of a check received is entered in the register 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 credit voucher is printed for each check.
4.5 CASH DEALING DEPARTMENT
The cash department directly operates over cash. Cash department receives and issue cash to customers, account holders, transfers cash or money among different accounts of branch and transfer of funds to other all branches of Bank Alfalah Limited and to all other banks registered in Pakistan, through various instruments. Cash department can be further divided into three departments:
Cash
The cash sub-department directly operates over the money. The cash department has following main functions:
Balance after Day Position
The cash is most sensitive department of the organization. The system at bank Alfalah limited accepts eight tellers (cashiers) at the same time. Cash debited or credited by each teller is calculated separately each time as he makes transaction. At the end of the day all the balance (debit or credit) by each teller is calculated. System calculates the coverall debit or credit by all tellers throughout the day. The teller accounts are
Denomination by system
In denomination the individual currency values are counted. Individual currency note and coins are counted as:
Cash denomination register in the system displays the information about each denomination in the Cash Balance Book at the end of the day. At the end of the day each denomination in the cash balance book should match physically with cash present in the strong room.
Sorting
Cash department receives cash that may include non-issue able Bank Notes. It is duty of cash department to issue only issue able Bank Notes. In sorting currency notes are screened out into issue able and non-issue able. The mixed currency Notes are referred to unsorted cash. BAL branches can only take 2% of allowed balance. Three main function of sorting is:
Received Unsorted Cash (Mixed
Cash department collects unsorted cash from customers and accountholders. Unsorted cash is transferred to sorting department to be separated as sorted and unsorted cash.
Sorted (Issue Able) Cash
Cash in good condition is further counted and it is ready to issue to customers.
Non Issue Able Cash
The cash that is torn out tapped or in very poor condition is unsorted. It cannot be issued to any customer rather it is forwarded to State Bank of Pakistan for change. Where State Bank of Pakistan is not operating, National Bank of Pakistan performs this duty on the behalf State Bank of Pakistan.
Closing
At the end of the day position of each teller (Debit or Credit) is transferred to the account named "Safe" to close the till. Debit or Credit balance of each teller is refreshed after transfer entry. After the closing cash denomination and denomination of currency by systems balance book
Bank Alfalah's system also provides option of to correct any of mistakes if it is due to the bank office. System provides reversal or transfer entries into relative accounts, Data flow structure of cash dept. is given below:
CHAPTER No.5
LEARNING AS A STUDENT INTERN
LEARNING AS A STUDENT INTERN
I had passed a good time in Bank Alfalah Limited as an intern. There was a lot for me to learn.
5.1 DUTIES
I have worked in Accounts department, Fund Mobilization department and Remittance department.
In these departments I have performed my duties according to the instruction of the officer of related department.
I have start work first from Accounts department after passage of two weeks I spent my half time of the day in Fund Mobilization department.
I reached in Branch fifteen minutes before 9 o' clock and was come back at 6 o'clock which is harshly imposed by the operation manager on me.
So, I have performed following duties in each department;
Accounts Department
Sorting of cheques and vouchers.
Cutting of day end reports arranged and also put these into files.
Punching of documents to put these into files.
Copies at photocopy machine.
Making of different expense vouchers for Branch.
Making letter for sending to customer in case of dormant account.
Stamps on completed vouchers for keeping of record.
Making entry of completed vouchers into voucher register as well as into computer.
Fund Mobilization Department
Procedure of customer's Account Opening.
Letter of thanks for sending to the customer against opening of Account.
Entry of these letters into register before posting to customers.
Pasting of Account opening documents into separate register after completion of Account opening procedure.
Remittance Department
Stamps at the back of cheques for Token no. and detail of notes.
Entries of these cheques into payment register of cashier as well as into token register.
Filling up of cheques and slips in case of payments and receipts of cash.
5.2 ACCOMPLISHMENTS
By performing above activities now I am able to perform alone all the activities of Accounts department as well as Fund Mobilization department and also I have knowledge about Remittance department.
5.3 NEW KNOWLEDGE ACQUIRED
Deal with customer according to their personality.
Open an account with different procedure in case of different situation.
Punch documents for putting these into files
Copy at photocopy machine.
I get a knowledge about procedure of issue of loan
Fill a different voucher which is use as daily routine
learnt how credit is offered,
How customers are captured, about the cash transaction round the city.
Manage time for reach to the office as well as to finish my official work.
Learn how mange finance and budge
Analyze different day end reports
5.4 PROBLEMS ENCOUNTERED
Doing the internship was a wonderful experience for me but as far as preparation of the report is concerned it was the most difficult part of the project. Preparing for Report become most difficulty and tedious as most of the information was not available not only on net but also from the bank.
It was quite easy for me to analyse the income statements of the bank. There are some other necessary requirements for doing the financial analysis of the income statements i.e.
Information about the trends prevailing in the market,
And information regarding the positions of the competitors of the bank that is the reason that I was unable to depict the true picture of the financial position of the bank.
I am also unaware about the off balance sheet finance of the bank so, I can say nothing regarding the true liabilities of the bank
Branch location is most critical issue, branch is located in out of business area of city, so clients are reluctant to come to bank while carrying huge amount of money.
But in banking environment where other commercial banks are developing their system and providing more attractive packages to the clients.
Credit dept. and consumer finance is not offered to customers which can provide major share to income to branch but branch do not have started these facilities yet due to shortage of experienced HR resources proper IT support. Agri finance dept offers loans to farmers more then 10 acres of land. BAL setup is new, working is fully computerized but there is no appropriate support.
5.5 HOW INTERNSHIP WILL IMPACT MY CARRIER
This internship at Bank Alfalah will prove very important for me during my professional career. Because it was my first learning experience for working in a multinational organization. It will be very helpful for me to show discipline, hard
working and how work is done in any organization. No doubt it will prove a bright sign in my future.
The following experience I have gain during working with operational management, when I correlate the theoretical concept with the practical experience.
Control of Expenditure
In theory I studied that there should be a control on expenditure, which will help in increasing profitability of organization. In practical I have observed that branches reduce their expenditures and cost of services.
Finalization of Accounts
I have studied that organizations prepare their profits and loss accounts, balance sheet, cash flow statement and also monthly and annual reports. In practice I have analyzed that these statements along with customer accounts (transactions) are compiled on the daily basis due to efficient computer software "Bank Smart".
Information Management
I have studied that finance department is a decision tools to management, in practice I have analyzed that accounts department, prepared daily reconciliation regarding deposits, reports for management. Decision making
CONCLUSIONS AND RECOMMENDATIONS
After spending six weeks at different departments of the bank, interacting with the employees, getting their views, observing the organizational structure and design, I have come up with the following suggestions that in my view, will definitely improve a few weaknesses observed in the bank by me.
Flexible Policies
The bank should be adopting flexible policies, especially in the areas of the recruitment, promotions, evaluation of the employees otherwise the high turnover observed in the bank will continue to create problems for the bank now and in the future.
Job Security
The employees in the organization should be insured job security so that there is no pressure on the employees while performing their tasks.
Permanent Hiring
The fresh hiring should be made permanent so that they are secured of their future. Further the allowances and perquisites attached with the permanent jobs will also increase the motivation level of the employees.
Job Training Programs
The bank should place emphasis on the organization of effective training and development programs for its new as well as existing employees so that these are gradually updated regarding the recent developments in the field of banking.
Perquisites and Allowances
The number of allowances and perquisites for the employees should be increased to ensure that they put their body and soul in the jobs assigned to them.
Revival of the Charges
The rates for the various charges provided by the bank should be brought down a bit, as it would result in increase in the number of customers of the bank.
Adoption of Effective Technology
The current unibank system used by the bank is very slow in processing so my view is that the bank should try to adopt some other but more effective form of technology in order to provide comfort to the customers as well as the staff.
GLOSSARY
Jargons or acronyms
DD (Demand draft)
PO (Pay order)
IMS (Information management system)
BS (Bank Smart) transaction software)
MT (Mail Transfer)
TT (Telegraphic Transfer)
S.S Card (Signature Specimen Card)
SBP (State Bank of Pakistan)
CRO (Customer Relationship Officer)
