INTRODUCTION Bank Alfalah Limited was incorporated in June 21st, 1997 as a public limited company under the Companies Ordinance 1984. Its banking operations commenced from November 1st, 1997. The bank is engaged in commercial banking and related services as defined in the Banking companies ordinance 1962. The Bank is listed on all the three stock exchanges of Pakistan. The Bank is engaged in banking services as described in the Banking Companies Ordinance, 1962 and is operating through 191 conventional banking branches, 32 Islamic banking branches and 7 overseas branches and 1 Offshore Banking Unit, with the registered office at B.A. Building, I.I. Chandigarh, Karachi. Since, its inception as the new identity of H.C.E.B after the privatization in 1997, the management of the bank 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 an extensive range of products and services. This facilitates their commitment to a culture of innovation and seeks out synergies with clients and service providers to ensure uninterrupted services to its customers. The bank perceived the requirements of customers and matches them with quality products and service solutions. During the past five years, bank has emerged as one of the foremost financial institution in the region endeavoring to meet the needs of tomorrow as well as today. To continually upgrade the quality of service to the customers, training of team members in all the integral aspects of banking, customer service and IT was specially focused. The portfolio concentrates on all aspects of conventional banking as well as the financial needs of corporate sector. Dynamic and high value product includes Car Financing, Home Financing, Rupees Traveler’s Cheques, Credits Cards, Debit Cards, Online Banking, ATM and consumer Durables. In addition to this, Islamic Banking Division is a recent initiative, which operates as separate branch. It offers Shariah Compliant products through a network of five branches, which will increase to 50 by the coming years. The bank is committed to combine all it s energies and resources to bring high value, security and satisfaction to its customers, employees and shareholder. The Bank has invested in revolutionary technology to have an extensive range of products and services. This facilitates commitment to a culture of innovation and seeks out synergies with client and service providers to ensure uninterrupted services to its customers. NATURE OF BUSINESS Bank Alfalah is a banking company incorporated in Pakistan on 21 June 1997.the bank registered office is at B.A building I.I Chandigarh road, Karachi. It is listed on Lahore, Karachi and Islamabad stock exchanges as well in the same year. The bank is engaged in banking services as describe in the banking companies ordinance, 1962. Now it’s operating in many major cities of Pakistan through 166 branches all over the nation. ORGANIZATIONAL STRUCTURE President (CEO) Head of Department Or Senior Executive Vice President Executive Vice President Senior Vice President Vice President Assistant Vice President Officers Grade I II III Clerical Staff Non-clerical Staff Cashier Typist Clerks & Assistants Guards Other staff BAL’s VISION STATEMENT “To be the premier organizations operating locally and internationally that provided the complete range of financial services to all segments under one roof” BAL’s MISSION STATEMENT “To develop and deliver the most innovative products, manage customers experience, deliver quality service that contributes to brand strength, establishes a competitive advantage and enhances profitability, thus providing value to the stakeholders of the bank” COMPETITIVE PROFILE MATRIX (CPM) FOR BAL BAL HBL NBP UBL SCB W. Critical Success Weigh Ratin W. Ratin W. Ratin W. Ratin Ratin W. Scor Factors ts g Score g Score g Score g g Score e 1. Market Share 0.13 2 0.26 4 0.52 4 0.52 3 0.39 3 0.39 2. Customer 0.09 3 0.18 3 0.27 4 0.36 3 0.27 4 0.36 Service 3. Branch Network 0.12 3 0.36 4 0.48 4 0.52 4 0.48 3 0.36 4. Organization 0.11 2 0.22 3 0.33 3 0.33 3 0.33 4 0.44 Structure 5. Management 0.10 3 0.30 4 0.40 3 0.30 4 0.40 3 0.30 Experience 6. IT infrastructure 0.12 4 0.48 3 0.36 4 0.48 4 0.48 4 0.48 7. Price 0.09 2 0.18 3 0.27 4 0.36 2 0.18 4 0.36 Competitiveness 8. Product variety 0.11 3 0.33 3 0.33 4 0.44 3 0.33 4 0.44 9. PACRA Rating 0.06 3 0.18 3 0.18 4 0.24 3 0.18 4 0.24 10. Global 0.07 2 0.14 4 0.28 3 0.21 2 0.14 4 0.28 Expansion 3.1 Total 1.00 2.45 3.42 3.76 3.65 0 *Key to Bank’s Acronyms: BAL: Bank Alfalah Limited Interpretation of Ratings: HBL: Habib Bank Limited NBP: national Bank of Pakistan 1: Major Weakness;2: Minor Weakness UBL: United Bank Limited SCB: Standard Chartered Bank 3: Minor Strength; 4: Major Strength SWOT ANALYSIS BAL’s STRENGTHS Since, inception of Bank Alfalah, it has moved rapidly in expanding branch network and deposit base, along with making profitable advances and increasing the range of products and services bank have made a break- through in providing premier services at an affordable cost to our customers. Bank Alfalah has been awarded an AA- (double A minus) and an A1+ (A one plus) in the long and short term respectively by the PACRA. These rating denote very high credit quality and very low expectation of credit risk. The main source of a financial institution is public savings in this regard public confidence plays a vital role. So, the confidence of customers is the main strength of Bank Alfalah. In order to maintain an effective communication of information regarding the need of valued clients, bank has designed its website to be as user- friendly as possible. This facilitates to pursue the path of excellence and customer satisfaction through delivering higher quality of services, thereby adding synergy to our existing management expertise, financial strength and profitability. Hence, it’s a channel of communication for the delivery of quality products and services that enhance value to our stakeholders. BAL’s WEAKNESSES As per Bank policy, advertising and publicity is not extensively emphasized. Through advertisement customers could be kept abreast with the products and services. The main focus of Bank is major cities of Pakistan. It is direly needed to extend its network and people should be educated about the functioning of bank. Since, Bank Alfalah has strong set up in UAE and Middle East, therefore, specifically those areas of Pakistan should be targeted where large numbers of people are working abroad. Hence, bank could avail an excellent deposit rate by using its annual budget specified for network extension. BAL’s EXISTING OPPORTUNITIES The life cycle of an organization is comprised of threats as well as opportunities. If we say, today the rates of challenges are too high but simultaneously the rate of opportunities is also high. It is mandatory to try to make progress with consistency as well as to adapt changes with the needs of time, in order to cope up with both conditions. In the prevailing scenario, Bank Alfalah could penetrate further and could capture various corporate customers in addition to the retail customers by expanding their network. Similarly 5% annual growth in the agriculture sector brings new opportunities for Bank Alfalah. It can offer new products under the umbrella of micro-financing to farmers and harvesters. In addition to the excellent routine banking, it has earned a good name by offering special products like car financing, home financing and credit card. With the passage of time Bank Alfalah has gained trust and fair reputation among customers therefore, BAL should avail this opportunity and try to penetrate into smaller towns and rural areas where there is an increased demand for commercial banking. Bank Alfalah has also seen increase in banking operations in its overseas branch, which is due to the fact that increased number of Pakistani residents working abroad send their money home and use various other services. BAL should take pro-active steps to introduce more focused services and better pricing to develop a loyal customer base abroad. This can later help in global expansion of the bank. Bank Alfalah has also established its Islamic Banking division. This has attracted a large number of customers, who don’t want to deal with interest bearing banking. Therefore, aggressive approach baked by highly favorable policies by State Bank of Pakistan can offer promising results for BAL. BAL’S POTENTIAL THREATS While doing business, threats are part of the game. Especially, in this era, most of the financial institutions are working as Private Limited Company and facing or have a fear of threat from their competitor as well as new entrants. In order to maintain as well as to enhance the market share, banks always try to introduce new products and services. Hence, the environment requires innovative and adaptation to the needs of customers. Though, Bank Alfalah has a strong footing and maintains a good number of loyal customers, still bank has threats in various sectors: • In Car Financing MCB & UBL are the main threats.