Haroon Ur Rasheed MBA MIS ID MC 090408630

Haroon Ur Rasheed MBA (MIS) ID: MC 090408630

Internship Report Bank Alfalah Islamic Banking

Introduction of Bank Alfalah Islamic Banking Ø The largest Islamic bank in Pakistan Ø BAL incorporated on June 21, 1997 Ø in 2003: Bank Alfalah Islamic Banking Division started Ø 80/270 Islamic Banking branches are based on Sharia laws. Ø Operational workings prescribed by Islamic Sharia advisors Ø 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 Ø Meezan Islamic Bank Ø Dawood Islamic Banking Ø Dubai Islamic Bank, Pakistan Ltd Ø Emirates Global Islamic Banking Ø Union Bank

Introduction of Branch Ø This branch is situated in Kabirwala, District Khanewal Ø It is 12 Km away from Khanewal Ø This branch belongs to Multan Zone Ø The branch has a talented hardworking energetic staff Ø 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 1 st largest Islamic Bank of Pakistan in term of deposits 1 st 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. 12 0. 04 0. 08 0. 04 0. 05 0. 04 0. 08 4 4 3 3 4 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 1 1 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 4 2 2 3 0. 56 0. 08 0. 4 0. 3 0. 12 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 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) Critical Success Factors Advertising Product Quality Market Share Competitive ness Management Financial Position Customer Loyalty Global Expansion Total Meezan Bank 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 2 0. 3 0. 1 2 0. 2 4 0. 1 4 0. 4 2 0. 2 3 0. 15 3 0. 45 2 0. 3 4 0. 6 0. 1 2 0. 2 3 0. 15 3 0. 45 2 0. 3 0. 05 2 0. 1 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 Ø Degree of Rivalry Ø Threat of Entry Ø The Threat of Substitutes Ø Buyer Power Ø Supplier Power Ø

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 Products Existing New Existing Market Penetration Product Development New Markets Market Development Diversification

Conclusion

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

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