Blue colour has always been an inspirational one. Coupled with the beautiful logo that the bank displays it always inspired me to be a part of the group, part of the team, part of the culture and part of the tradition. Yes I am talking about none other than BANK ALFALAH. First of all I would like to thank Almighty ALLAH, without whom nothing is possible, secondly I would like to thank Mr. Salman Jaffer and Mr. Shahid Randhawa from the Consumer Finance Department, whose constant guidance and teaching made me a better and wiser man today, also thanks to Mr. Jawad A. Majid Branch Manager, Mr. Bilal Mustafa, and last but not the least Miss. Raheela Raza from Credit Administration, indeed she turned out to be a true Bahrian and helped me a throughout in every event, I owe a lot to her. I would also like to thank my Uncle Dr. Tariq Salahudin who arranged this internship for me and I am indebted to you all.
Lastly a special thanks to my parents and family, who have been a constant source of motivation and support all through. THANK YOU this wouldn’t have been possible without your help.
Syed Fasih Hussain
September 2003 EXECUTIVE SUMMARY
The purpose of this report is to evaluate the performance of Bank Alfalah, Satellite Town Branch Rawalpindi. The internship experience of the students of Institute of Management Studies is a partial requirement for the fulfillment of their Masters Program. The presentation of the internship experience in the form of an internship report also carries great importance and a student is judged on the basis of the quality of the material that has been produced.
The report aims at appraising the working of Bank Alfalah, its functions and operations and also attempts to asses its performance. Certain recommendations are presented for the potential areas of improvement.
Bank Alfalah has aggressive growth plans in Pakistan. Its name is generally considered for quality and reputation. It offers a broad range of products to target different market segments. INTRODUCTION
4.1 CENTRAL BACKGROUND INFORMATION
Banking in primitive societies existed in some form. The greatest invention of all times is considered to be the invention of wheel which made transportation easy and transportation opened a gateway to business and exchange of goods flourished. The initial business was done on “barter” which meant an exchange of “commodity for commodity”. There is a myth also about the invention of money, which tells that king Midas of Libya invented money in 800 B.C. Another statement states that the king of Babylonian empire named as King Hummorabi in 1700 B.C. made all the rules and regulations of lending and borrowing and interest etc. He wrote them on an eight feet stone in the center of the city. Two famous temples are also remembered for the lending and borrowing in different transactions. One was the temple of Ephesus and the second was known as the temple of Delphi.
It is said that the first bank was established in Barcelona in Spain. Another statement tells that “Venice” and “Genoa” were the hub of financial transactions and the first bank was founded there in 14th century. The first public bank that was formed was in Germany in later part of the time.
4.1.2 Banking in Pakistan
Before the partition of India and Pakistan in 1947, branches of British banks dominated banking in Pakistan. The first domestic banking institutions emerged in the 1940s, immediately after Pakistan's independence from Britain. These institutions include the Australasia Bank (today, Allied Bank Limited or ABL), Habib Bank Limited (HBL), Muslim Commercial Bank (MCB), and the National Bank of Pakistan (NBP). The NBP was wholly government owned but prominent merchant families established the other three. In 1948, the SBP was formed. It assumed the supervisory and monetary policy powers...