1. finance
2. bank

Haroon Ur Rasheed
MBA (MIS)
ID: MC090408630
Internship Report
Bank Alfalah Islamic Banking
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
28904
35503
57416
56502
88492
Investme
nt
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
Branch
Manager
Operational
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.
2.
3.
4.
5.
6.
7.
Strong brand recognition
Strong allocation potential
Recognized market existence
Focused business strategy
Strong credit rating
Large (over 5 million accounts)
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 department
Bank Alfalah Islamic is financially strong and has a huge deposit
reserve.
WEAKNESSES:
Lack of branch network as compared to other Islamic banks in Pakistan
More job rotation
It is a step behind in using new technology (MIS) as compared to other
banks.
Most of the employees are overloaded with work
slow 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 reserve
It 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 Pakistan
Bank 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)
Internal Strength
Weight
Rating
Weighted Score
1st largest Islamic Bank of Pakistan in term of deposits
1st largest Islamic Bank of Pakistan
Improved operational efficiency as compared to past
Large Branch network
BAL IBD Product positioning is very effective
standard of living
Stands in the list of Profitable bank in stock exchange
Largest number of corporate deals by any bank is Pakistan
0.1
0.12
0.04
0.08
0.04
0.05
0.04
0.08
4
4
3
3
3
3
4
4
0.4
0.48
0.12
0.24
0.12
0.15
0.16
0.32
Attractive Salaries and incentives for employees
Overseas Branches
Internal Weakness
0.15
0.05
4
4
0.6
0.2
In some regions BAL IBD service is not good as compared to others
0.1
1
0.1
BAL IBD is a step behind in using new technology as compared to
other banks
All branches need orientation for customer dealing with loyalty
0.04
2
0.08
0.03
2
0.06
Security system in most of the branches is not up to date
Most of the employees are overload with the work and promotion
is also not timely
Total Weighted Score
0.04
0.04
1
1
0.04
0.04
1
3.11
External Factor Evaluation Matrix
(EFE)
Key External Factors
Weights
Ratings
Weighted
Score
Terms of Licenses to Islamic banks by SBP
Growing acceptance of Islamic banking with lay man
Government Patronage
Refinement of procedures by COIE
Expansion in different other areas internationally.
Tide Down of Money
Energized Research and Development
Threats
0.14
0.04
0.2
0.1
0.06
0.05
0.05
4
2
2
3
2
2
3
0.56
0.08
0.4
0.3
0.12
0.1
0.15
Excessive and expensive documentation
Comparisons of Rates profits interest
Slow and tedious product development process
Bad Mouthing by conventional Bankers
Absence of Interbank money market for Islamic
Banking
0.1
0.04
0.05
0.11
0.02
4
3
3
4
2
0.4
0.12
0.15
0.44
0.04
High expectation of General Public
Total
0.04
1
2
0.08
2.94
Opportunities
TOWS Matrix
SWOT
STRENGHTS
WEAKNESS
Phenomenal growth in branches
Lack of awareness through publication of Islamic
material.
External Credit Rating.
Enhance Customer services and care
Lack of research and development.
Charging moderate rate of return.
No specific market niche
Personalized banking services
Systematic working operations
OPPORTUNITIES
Offering a generous product portfolio
SO STRATEGIES
WO Strategies
Government Patronage Market Development
Acceptance by layman
alteration of procedures
Product development
Cost Leadership Strategy
Energized research and
development
THREATS
STRATEGIES
Expensive and excessive Horizontal Integration
documentation
Cost Leadership strategy
Strengthen research and development through
industrial support
Control Inflation
WT STRATEGIES
Concentric diversification
Proper Advertisement to enhance awareness
Competitive Profile Matrix (CPM)
Meezan Bank
Critical
Success
Factors
Advertising
Product
Quality
Market
Share
Competitive
ness
Management
Financial
Position
Customer
Loyalty
Global
Expansion
Total
Standard
Chartered Bank
Weigh
ted
Score Rating
Weight
Ratin
g
0.2
2
0.4
4
0.8
3
0.6
0.15
3
0.45
3
0.45
2
0.3
0.1
2
0.2
2
0.2
4
0.4
0.1
4
0.4
2
0.2
3
0.3
0.15
3
0.45
2
0.3
4
0.6
0.1
2
0.2
3
0.3
3
0.3
0.15
3
0.45
2
0.3
2
0.3
0.05
2
0.1
3
0.15
3
0.15
1
2.65
Weighted
Score
Bank Alfalah Islamic
2.7
Rating
Weighted
Score
2.95
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
consumers
Product Development: Selling new products to existing customers
Diversification: Selling new products to new consumers
Existing
New
Existing
Market Penetration
Product Development
New
Markets
Products
Market Development
Diversification
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 You
For Your Attention