Internship Report 2013 Final
All praises to Allah Almighty who has created this universe, whose oneness is un challengeable. All gratitude for His prophet P.B.U.H who educate us to recognize our creator.
First of all I would like to thank Allah the most merciful and the most beneficent who helped me in each and every problem during the internship.
I would certainly say that I have been able to complete this report due to my honorable parents whose best wishes are always with me for my success.
I specially thanks to my teachers for their guidance in completing my internship in a befitting manner. They help me in every step.
In the end I would like to thank Mr. Azhar khan Manager Operations in Bank Alfalah who guided me and supervised me to complete my assigned tasks.
TABLE OF CONTENT
EXECUTIVE SUMMARY 6
COMPANY BACKGROUND 8
BUSINESS OPERATIONS 21
SWOT ANALYSIS 21
ORGANIZATIONAL STRUCTURE 23
MARKETING ANALYSIS 24
COMPETITIVE STRATEGY 26
WORK DESCRIPTION 27
It is the degree demand to do an internship of 6 to 8 weeks in a well renowned organization. I have done internship at Bank Alfalah limited. I joined the organization at September 3, 2012 and my last day was October 12, 2012.
I worked in various departments including account opening department, clearing department, remittance department and accounts department. The tasks which I do there was to fill an account opening forms, receiving cheques from customers, stamping and then jotting, fill a money gram form and do entries of DD’s (demand draft) manually, activity checking.
I had a great experience at Bank Alfalah. It enhanced my knowledge and skills when I do all the things practically. The staff of Bank Alfalah was quite motivated. Everyone was honest and dedicated to their work. Their customer dealing was quite impressive. The staff was focused to their accomplishment of tasks.
It includes the introduction of bank, its various departments. Business operations SWOT analysis, market analysis, competitive analysis, organizational structure, work description, analysis and conclusion.
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.
To be the premier organization operating locally & internationality that provides the complete range of financial services to all segments under one roof.
Bank Alfalah Limited was incorporated on June 21st, 1992 as a public limited company under the Companies Ordinance 1984. They started their banking operations from November 1st, 1997. The bank is providing commercial banking and related services as defined in the Banking companies’ ordinance, 1962. Banking operations are operating through 198 branches across Pakistan. The Bank is currently operating through 198 branches across Pakistan.
Since its inception, as the new identity of H.C.E.B (Habib Credit Exchange Bank) after the privatization in 1997, bank’s management 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 a wide range of products and services. This facilitates our commitment to a culture of innovation and seeks out synergies with clients and service providers to ensure uninterrupted services to its customers. We notice the requirements of our customers and match them with quality products and service solutions. During the past five years, we have emerged as one of the foremost financial institution in the region address to meet the needs of tomorrow today.
The goal of BAL is to provide services to their customers. It includes:
Remittance (Money gram) services
ATM card facility
Provide Account statements to customers
Account opening services
Bank Alfalah limited, Retail & Middle Market North- Area Rawalpindi 2/Satellite Town Branch
Bank Alfalah has sustained its position in consumer banking in Pakistan. All of the branches of Bank Alfalah are in their mission to provide consumers timely and authentic information. As the slogan of bank is “The caring bank”. So they are struggling to give customers better services.
It also provides customers with the facility of car financing. Customers can select an automobile on their own preferences. It also gives loans to the customers on the basis of their wages.
It also gives the money gram/pakes remittance services to the customers. It actualizes a chance for the customers to withdraw an amount after filling the form.
Bank Alfalah is committed to build long lasting relationships by providing customers innovative products to fulfill the changing demands of their customers. Although still in its beginning, compared to the advance banking standards, Bank Alfalah backed by a strong Abu Dhabi Group and encouraged by the vision of its board and management, has built up a strong customer base. The bank provides a complete range of banking services to corporate clients while adopting leading technologies. Today the bank is well-positioned to provide suitable banking services to customers.
Their main focus is building relationships and to be known by the way they do business. They know that a banking relationship requires compatibility, exchanging information and mutual effort and that each customer deserves nothing less than their full concentration and available resources to meet their financial objectives.
BAL assures that exemplify service is their most crucial product. They understand the customer needs and their requirements by taking time. When they do so they know the customers’ names, their businesses and their financial needs and try to fulfill the needs of the customers according to their requirements. This unique feature strengthens the relationship between customer and the banker.
Run by Sir Khursheed, Sir Amjhad and Sir Khalid
Local (Debit- Credit same)
Online (Single debit/credit- Multi debit/credit)
Online clearing (More than 1 debit-credit) attached the copy of ID card because they are not our customers.
In other banks, it includes:
OBC (outward bills for collection)
Clearing department receives cheques from the customers. The cheques which customer will bring with him/her are from others bank cheque and plead that his/her account should be credited. When bank receive the cheque from the customer, cheque deposit slip is being filled by the customer, payment received stamped is marked on the voucher and customer signature for verification. The carbon copy is given to the customer and original one is kept by the bank.
In this way cheques received by other banks requires clearing process and it is being done with the facility of NIFT (National institute facilitation technology).
There are 2 types of clearing:
Outward clearing is when BAL sends cheques of other banks for clearing is outward clearing and when BAL receives its cheques from other banks for the purpose of clearing customers account is inward clearing.
The stamps which should be on received cheques when cheques are to be sent for outward clearing are:
Clearing date next day
UV stamp (ultra-violent)
Intercity stamp (If Islamabad)
Signatures at the back of the cheque in the middle of the received stamp
After doing all the proper stamping then all the cheques are posted in the system for a record keeping. Jotting of cheques that means we will separate the cheques of Rawalpindi, Islamabad and intercity and will put the entries in the system in the respective sections. To do an entry in the system we will write serial number, cheque number, bank’ name and the amount, after doing all the entries we will sum the amount.
After this we will count the cheques and number of transactions being made on the system and if there is any missing entry we will correct it and then placed it on the NIFT’s bag for outward clearing. INWARD CLEARING
NIFT’s member comes along with the cheque list of related banks next morning. By verifying the signatures, amount and stamping banker debit the customer account. The cheques which are accepted get the signature from the banker. There are some cheques which are not accepted and thus return back to the bank. There are various reasons for the returning of the cheques. Memo of return of the cheque that is being returned is attached with the cheques.
No minimum balance/ Insufficient funds
Difference in the amount of the cheques and figures
Alteration on the cheque
OBC (Outward bills for collection)
It is same like outward clearing but they are from other cities cheques. For outward clearing there is no involvement of NIFT, bank will clear these cheques by themselves. The stamping which is used for outward clearing would also be used for OBC. Same way these cheques are entered in the system and the system will allocate the OBC number. The OBC numbers which are being assigned by the system. Those numbers are also written on the cheques. Same way signature is done for authentication. On the back of the cheques payee’s account will be credited on realization. Then cheques are dispatched along with the vouchers for different banks and cheque receipts and original voucher are being kept as record.
INWARD BILLS FOR COLLECTION:
The cheques which are sent by miscellaneous banks of miscellaneous cities for the purpose of clearing, when cheques are received by the banks, banker has to debit its customer account after seeing the amount, stamping and signatures. Two copies are being made one to send to the relevant bank in miscellaneous cities and one used for the purpose of record. When other banks receive the copies, they credit the customer’s account.
Customers deposit cash in his/her account. In order to deposit the cash customer filled the cash deposit receipt and submit it in the cash counter. Carbon copy of the receipt is given to the customers and receipt is kept by the bank. The transaction that would be done in cash transaction would be to credit customer’s account and debit bank’s account.
Run by Abdul Matin Ahsin
Remit means to transfer funds. It is known as transferring/sending money for long distance from the sender – beneficiary through the pattern called remittance. It is a faster and effective source of transferring funds. It is a very crucial service which Bank Alfalah provides to their customers. Bank charged commission during remittance services and it will be included in the income ledger of the bank as revenue.
Call deposit receipt
Money gram: Person to person money transfer service. Cash payment voucher in which bank debit money gram, reference number mention code number. Money gram code digits are 8. If the amount is more than 50,000 outside the national boundaries than Nadra verification viryses certificate would be attached. If the amount is greater than 2 lac then along with viryses, certificate of due diligence would be attached in which there would be all details of the customers. There would be proper stamping on the cash payment voucher “original seen” stamp would be used. Banks used this so that it can’t be misused, crossed lines shows that money is saved and it can’t be used anywhere else except the bank.
Money received from emirates countries. In payex code will vary.
DEMAND DRAFT (DD):
Demand draft is the written order directing the payment to be made to a third party outside your city. Demand draft can be taken out of the city.
The entry would be:
Customer (debit) Bank Main Account head office (Credit)
Bank counts the demand drafts and received demand drafts to assure that they are equal. The amount of demand drafts bank has made and the amount of demand drafts customer has received. After doing this bank sends the photocopies od received demand drafts to the bank in which it is drawn or drawee bank and keep the original received demand drafts with them for their record because payment would be released by drawing bank.
A pay order (PO) is a banker’s cheque since drawn or payable locally. It is a confirm payment because bank guarantees it. The entry in case of pay order would be:
Customer (debit) Branch (Credit)
Call deposit receipt: It refers to whenever one wants to make tender, he goes for CDR.
The entry would be:
Customer (debit) Branch (Credit)
DEMAND DRAFT, PAY ORDER AND CALL DEPOSIT RECEIPT:
Call deposit receipt and pay order remains with the bank where as demand draft goes where it is being drawn,
In this case the entry would be: (CDR case)
Party account (debit) Customer account (credit)
In the case of reverse entry, debit would be changed into credit and credit into debit. It is being done when call deposit receipt is cancelled by the party. In this case party stamped on it and write may be released.
Same is to be done manually in the registers of call deposit receipts. Whenever CDR is issued, CDR serial number, payees name and amount is to be mentioned, In case of cancellation, bank marked that transaction with red ball point which shows that transaction has been cancelled.
Run by Sir Shah Sahab
BAL also provides the facility of lockers. So that customers can keep their valuable assets in a safe place for instance and secret documents, jewelry etc.
There are normally 3 types of lockers:
The amount for small is 2000, medium 3000 and large 4000. Key security is 9000. 16% Fed tax is charged on an annual basis. If employee is from bank and he/she wants to open a locker then half price would be charged from the employee.
In case of any theft (lockers theft), bank provide insurance.
There are 2 keys: Master key and customer key. Both keys will be operated simultaneously to open the locker but bank will apply key first and then customer will apply key. It can’t be opened by and single key.
Total lockers in Bank Alfalah are 108.
If one wants to open a joint locker in the bank, he/she have a joint account in a bank for individual lockers; individual must have an account in the bank. For locker opening it is mandatory that one must have an account in the bank. For the verification of the customers takes the customer ID card copy and same signature would be used for every transaction which he/she had done in the first time.
Surrender of lockers:
If one wants to surrender a locker. He/she must have to write an application in the name of the manager. In application have to write locker number, key bearing number and the size (small/medium/large), also mention in the application that the locker is now empty and there is nothing in the locker.
Run by Ma’am Faiza and Sir Umar Ilyas
The primary function of accounts department is to check activities on a daily basis. To verify that all transactions have been done correctly, if there is any discrepancy it sends to the specific department for correction and after correcting it they bind all the vouchers and keep those in their records.
They also make statements of balance sheet, income statement and their expense account. Reports are being made on the monthly, quarterly or annually basis.
Accounts department has two main functions i.e. income and expense ledger.
In income ledger it includes transaction related to the banks income for instance remittances or and any commission gained from the parties.
In expense ledger it includes transactions related to banks expense like any material purchase, staff expenses or expenses related to rent.
Run by Sir Yasir and Sir Ifhtikhar
Bank Alfalah main accounts are:
Royal profit account
Basic banking account (BBA)
Current account has a minimum balance requirement of 10,000. It is opened by giving 1000 Rupees. No zakat deduction. Current account holders also get a Hilal debit card.
It can be opened with the minimum balance of 5000 Rupees. They also receive hilal debit card. There would be no restrictions on the amounts being withdrawn.
ROYAL PROFIT ACCOUNT:
It can be opened by a minimum account balance of 50,000 Rupees. The purpose of this account is more the balance; the more will be the return as profit is given on the basis of average at the end of the month. The profit given to account holders is:
50,000 Rupees to 999,999
1,000,000 Rupees to 4,999,999
5,000,000 Rupees and above
BASIC BANKING ACCOUNT (BBA):
For BBA accounts there is no minimum balance for salaried persons. But initial deposit would be 1000. It is being introduced by the state bank of Pakistan (SBP) as an order and is currently being operated by the banks.
It has a minimum balance requirement of 10,000. Profit is calculated on the monthly basis.
50,000 or less
REQUIREMENTS FOR ACCOUNT OPENING:
Specimen signature card
ID card (photocopy)
Account can be opened on the basis of the customer requirements. For instance: Sole proprietorship account, partnership account, individual account and joint account.
Cheque book would be issued within a week. To receive a cheque book customer must bring with him/her a requisition letter. Head office issues letter of thanks. When customer will bring that letter of thanks than the bank will issue a cheque book. Letter of thanks is just a confirmation that whether customer has correctly enters her address or not!
DECLARATION OF DORMANT ACCOUNT:
It is declared dormant when there is no transaction for the six months. To active an account customer must bring with him/her a CNIC copy.
For opening an account customer has to fill a form. And enter all the required or necessary information.
In a day you get 50,000 from the ATM machine,
First time 20,000
Second time 20,000
Third time 10,000
Means you can withdraw 50,000/- per day. If one withdraws more than 50,000/-, he/she has to bear tax even if it is 50,001/-, he/she has to bear tax on this whole amount not on just 1 Rupees you got an extra. 15 per transaction go to specific bank on whose favor it is drawn for instance if it is from HBL than it will goes to HBL.
Debit card: Alfalah hilal card. In this case there must be an amount in the customer’s account to avail the facility otherwise it is not possible. A type of ATM card.
Credit card: You can get the things as you want. A type of loan and in the end of the month you have to pay bill. But it is not given to everyone. It is being given to customers on the basis of their salary packages.
The strategies taken by Bank Alfalah are:
Its purpose is to identify strategic factors- external and internal factors that will determine the future of the organization. SWOT analysis is one of the tools to describe the particular Strengths, Weaknesses, opportunities and threats. Strengths and Weaknesses are internal factors of the organization and Opportunities and threats are external factors of the organization.
Providing quality services to customer.
As the slogan of bank is “The Caring bank” it demonstrates this by the connection and through care for their employees and customers.
Desirable and cooperative environment.
Due to its location in the commercial area of Rawalpindi it has a great advantage
Easy access to customers
Good facility of IT
Branch Manager Coordination with the staff to make an environment friendly.
Effective communication system
The bank’s management is trying to improve its efficiency.
Customer’s trust in bank
Imbalance of distribution of work
Less salary packages
No room for prayer
Less incentives for employees
International presence to be known all over the world.
Appealing salary packages
Mobile banking should be used
Expansion of their local setup
Introduction of latest products
Capitalize Information technology
Foreign banks in the country
Steps taken by competitors
Other banks in Pakistan that have large network can be a threat to BAL
BANK ALFALAH organizational structure is:
As the world is changing, it is more important to have an effective market strategy to gain a presence in the world wide. As there are lot of competitors exists in the market for Bank Alfalah and to gain an attention from the customers they have to market their strategies. They have to efficiently use the market strategies to gain customers and to sustain them and when they are attracted they will be loyal customers.
Bank Alfalah does this in a number of ways like:
Electronic/Media Most of the organizations go for promoting their businesses through media as it is an effective way of promoting the business. Along with the message customers can also see the videos which develop a good image in the minds of the customers.
It helps customers by providing the solutions of their problems. Through this a source of trust develops in the customers and they will approach you as they feel that their problem can be solved by you. Moreover they are also use websites for marketing their organization and all the relevant information is mentioned there.
Bank Alfalah also advertises its product through the use of print media which is chiefly published in English and Urdu across Pakistan.
It includes any new services which bank will going to introduce. Also they get an award in 2004 for best visual design color.
Bank Alfalah is also sponsoring different tournaments of sports. Their more focus is towards cricket. As it is the most popular sports game, so by sponsoring the tournaments they advertise the products. The tournaments which bank alfalah has sponsored over different years are:
Tri series between Srilanka,Newzeland and Pakistan
Pakistan Versus England
Pakistan Versus West Indies
As banking industry in Pakistan is growing it is an essential to have a competitive organization. Bank Alfalah competitors are form domestic and as well as from international commercial banks in Pakistan.
Bank Alfalah is competing in its services being offered to their customers. They have good relations with the customers. They due regard their customer preferences also consider their feedback as a valuable asset. They are on a constant struggling to achieve a desire market place in the economy. The slogan of bank is “The caring bank” and it helps them to achieve their desired goals and objectives.
I have done internship at Bank Alfalah Satellite town branch for 6 weeks and the departments I worked during my internships are:
Accounts opening department
As an internee I learned a lot of things regarding team work, task accomplishment and dealings with the customers. To apply my knowledge practically it not only enhances my skills but also give me an understanding of how to work in an organization. The responsibilities which was given to me, I try to accomplish those with keen understanding of the work first. The staff of bank Alfalah was very cooperative. They helped me whenever I feel any difficulty regarding anything. They keep me motivated by appreciating my work and efforts which helps me to spend my 6 weeks in the organization easily.
In clearing department: My task was to receive the cheques, then do proper stamping and then separate the cheques of Rawalpindi, Islamabad and other cities. After doing this I post all the entries in the system like jotting. And then I bind them all and hand it over to the NIFT’s members. Receiving other cheques from the NIFT’S member and the cheques which was returned due to insufficient fund or differing in amounts and figure I do the entries manually in the registers. Rawalpindi cheques in the register of Rawalpindi and Islamabad cheques in its registers, then I called the customers to receiver their returned cheques from the bank.
In remittance department: My task was to fill the cash payment voucher. Deal with the customers regarding where the money comes from and verification of customer through their id cards. Manual entries of call deposit receipts. Count the demand drafts being issued and demand drafts being received. Took the demand drafts to authorized persons for the signatures.
In accounts department: My task was to check the activity on a daily basis. By seeing the vouchers of various departments I checked all the activities and if there is any discrepancy in vouchers I returned it to the specific department and when it was being corrected I received it and marked the entry.
Checking activity includes:
Receiving vouchers, cheques, demand drafts, pay orders from all the departments
Separate cheques and vouchers
Checking activity of cheques
Checking activity of vouchers
I check daily activity using the statement of account activity. It is being done when seeing that all the values of the vouchers matched with the activity all not. After doing all this I totaled the vouchers and cheques and packed it. And then it was binded and kept it as a record in the bank.
In account opening department: My task was to fill an account opening form, do stamping. Give customer basic information regarding opening an account, Hand over the cheque book to the customer on the basis of letter of thanks, tells customers their account balances
My experience adds a lot to my knowledge and skills. By practically doing the work it helps me to know more about the work and how it is being done. There are various departments in the bank which I worked there and I understand some of the basic banking work. Know more about customer dealing by practically experience with the customers. How transactions are made. The organization was well organized which helped me to do work without any fear. Before joining the bank, I was not aware of the banking work and the tasks I just have a theoretical understanding of the bank but after joining, my theoretical work helped me a lot during my internship and also the staff was very cooperative with me.
My performance during the internship was good. I didn’t take much of time to understand the concept. I try to understand the concept on the first attempt and most of the time I was successful in it. The tasks which were given to me I try to fulfill those tasks and work on time without and significant major mistakes. Although there were some areas which I need to improve. By rectifying those areas I can do the work efficiently and effectively.
My primary strengths during internship were:
Theoretical Knowledge about banking
Know about MS office.
The areas which I have to improve:
Try to get information about financing other than the course.
Knowledge about the major concepts that will help me to answer questions quickly.
Less information about tax policies
It’s a live reality whenever we join such organizations like banking or any other we enhance our confidence level, learns a lot about the said organizations and get fresh knowledge. My internship added a lot of knowledge and experience. Although I have learned a lot in our university but doing or applying all those knowledge practically enhances my skills.
The top management is committed to their work and they are developing strategies to cope with any uncertainty. Moreover when top management is committed it automatically motivates the lower staff to work in an efficient and effective way. Cooperative work requires respect for one another, mutual cooperation, dedication and focus towards the organization to achieve a successful outcome.
By working on Bank Alfalah, it gives a lot of confidence to me as my superiors used to allot me a task and they have full confidence on me that I could be able to do my task in a befitting manner.
In general, working at Bank Alfalah was a great experience for me. I have worked with different people who were very considerate. I have also learnt to work in groups. I not only refresh my knowledge but also experienced an enjoyable period of life.