Haroon Ur Rasheed

Bank Alfalah Islamic Banking

Internship Report

Introduction of Bank Alfalah Islamic Banking

The largest Islamic bank in Pakistan BAL incorporated on June 21, 1997 in 2003: Bank Alfalah Islamic Banking Division started 80/270 Islamic Banking branches

are based on Sharia laws. Operational workings prescribed by

Islamic Sharia advisors The objective: Riba free financing

Product Lines

• Musharakah: contractual relationship• Mudarabah: Partnership• Murabaha: non-participatory,

client on cost-plus basis• Ijara: Client takes on rent & pays

back episodic rent• Salam: Contract of advanced payment

against delayed delivery goods• Istisna: Specific product against particular condition by a manufacturer

Business Volume (PKR 000)

2005 2006 2007 2008 2009

Revenue 7425 7140 14515 24416 31822

Deposits 76698 129715 223345 239509 273174

Advances 49216 88931 118864 149999 171199

Investme

nt28904 35503 57416 56502 88492

Competitors

Meezan Islamic Bank Dawood Islamic Banking Dubai Islamic Bank, Pakistan Ltd Emirates Global Islamic Banking Union Bank

Introduction of Branch

This branch is situated in Kabirwala, District Khanewal

It is 12 Km away from Khanewal This branch belongs to Multan Zone The branch has a talented hardworking energetic staff This branch deals with Islamic products only

Organizational hierarchy Chart

Organizational Management Analysis

Training Program

Hierarchy of MIS dept’t

Operational Manager

Branch Manager

IT officer

Structure & Function of MIS Department

Responsibilities of MIS department

• To keep all the computers, printers, and ATM machine of the branch operational by providing in time support to the trouble shooting of the IT equipments.• To provide support regarding IT operations and also monitor and trouble shoot the LAN (Local Area Network) inside the branch

Structure & Function of MIS Department

Functions of MIS department

• Provides support to operations department for keeping the LAN, computers and software work smoothly• Maintains automated slip generation system that generates slips on customer demand so that the cash counters are not over loaded and the customers come to counter at their specific token number marked on the slip.

Critical Analysis

Bank Alfalah Islamic Banking Division sets its goals according to its mission and vision statement.My observations are following:

1.Strong brand recognition2.Strong allocation potential3.Recognized market existence4.Focused business strategy5.Strong credit rating6.Large (over 5 million accounts)7.A full service bank

SWOT Analysis

STRENGTHS:Bank Alfalah Islamic Banking division is financially very strong bank. Following are some of the strengths of the Bank.Alfalah bank is applying the TQM in each of its branch, which is the great achievement. No other bank has this departmentBank Alfalah Islamic is financially strong and has a huge deposit reserve.

WEAKNESSES:Lack of branch network as compared to other Islamic banks in PakistanMore job rotationIt is a step behind in using new technology (MIS) as compared to other banks.Most of the employees are overloaded with workslow in the introduction of new services as compare to other Islamic banks in Pakistan i.e. free internet services.

SWOT Analysis

OPPORTUNITIES:Bank can extend its network in other cities of Pakistan.profitability can be increased by making use of new technology (MIS)Ability to introduce new products and services because of the huge capital reserveIt can adopt E-banking and provide credit card facility to its customers.Good financial position creating a good reputation for future advances and huge deposits

THREATS:In certain era of Pakistan people emphasizes more on Islamic mode of banking.Bank is facing intense competition from other Islamic Banks working in PakistanBank is performing very well in the presence of unstable political and economic situation but this uncertainty is a continuous threat for the bank

SWOT analysis shows that Bank Alfalah’s strengths are more than its weakness and it has a chance of availing many opportunities.

Internal Factor Evaluation Matrix (IFE)

External Factor Evaluation Matrix (EFE)

TOWS Matrix

Competitive Profile Matrix (CPM)

BCG Growth Share Matrix

Porter’s Five Forces Matrix

Degree of Rivalry Threat of Entry The Threat of Substitutes Buyer Power Supplier Power

Ansoff Matrix Market Penetration: Selling more of the same to same type of people Market Development: Selling the existing products to new consumersProduct Development: Selling new products to existing customersDiversification: Selling new products to new consumers  

Conclusion

Recommendations

Build their Own Website: E Banking Advertising / Marketing (Internet based): More focus on MIS required: Introduction of New Products: Women In Workforce: Distribution of Work:

Thank YouFor Your Attention