Presentation on theme: "Haroon Ur Rasheed. Bank Alfalah Islamic Banking Internship Report."— Presentation transcript:
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) Revenue Deposits Advances 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
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 recognition 2.Strong allocation potential 3.Recognized market existence 4.Focused business strategy 5.Strong credit rating 6.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 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 StrengthWeightRatingWeighted Score 1st largest Islamic Bank of Pakistan in term of deposits 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 Attractive Salaries and incentives for employees Overseas Branches Internal Weakness In some regions BAL IBD service is not good as compared to others0.11 BAL IBD is a step behind in using new technology as compared to other banks All branches need orientation for customer dealing with loyalty Security system in most of the branches is not up to date0.041 Most of the employees are overload with the work and promotion is also not timely Total Weighted Score1 3.11
External Factor Evaluation Matrix (EFE) Key External FactorsWeightsRatings Weighted Score Opportunities 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 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 High expectation of General Public Total1 2.94
TOWS Matrix SWOTSTRENGHTS Phenomenal growth in branches External Credit Rating. Enhance Customer services and care Charging moderate rate of return. No specific market niche Personalized banking services Systematic working operations Offering a generous product portfolio WEAKNESS Lack of awareness through publication of Islamic material. Lack of research and development. OPPORTUNITIES Government Patronage Acceptance by layman alteration of procedures Energized research and development SO STRATEGIES Market Development Product development Cost Leadership Strategy WO Strategies Strengthen research and development through industrial support Control Inflation THREATS Expensive and excessive documentation STRATEGIES Horizontal Integration Cost Leadership strategy WT STRATEGIES Concentric diversification Proper Advertisement to enhance awareness
Competitive Profile Matrix (CPM) Meezan Bank Standard Chartered Bank Bank Alfalah Islamic Critical Success FactorsWeight Ratin g Weigh ted ScoreRating Weighted ScoreRating Weighted Score Advertising Product Quality Market Share Competitive ness Management Financial Position Customer Loyalty Global Expansion Total
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 Products ExistingNew Markets Existing Market PenetrationProduct Development New Market DevelopmentDiversification
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: