Al-Falah Bank Limited (Internship report) Chapter-1

CHAPTER 1 

INTRODUCTION

Introduction of Report

This introduction is regarding to report, which consists of Background of study, Purpose of Study, Scope of Study, Methodology of Research and Scheme of Report.

Background of Study:

Hazara University requires its student of business administration to undergo an eight week internship program. Selection of organization depends upon the interest of the student as well as the field of specialization. This eight week practical experience is then documented in the written form known as the “internship report” which is based on theoretical and practical learning of the internee. This report is about Bank Alfalah Limited F/10 Islamabad Branch. This foreign bank has given an international dimension to banking in Pakistan. They provide new and improved customer service, facilities and also mobilize the foreign investment.

Purpose of Study:

The purpose of this study is to review and analyze the functions being performed by the BAF F/10 Islamabad Branch.This study will help the reader to known about the insight story and operational efficiency of the organization.

Scope of Study:

BAF has several branches in Islamabad and this study is limited to the functions being performed in theF10 Islamabad Branch. However, the financial analysis is based on the whole bank because data gather from annual reports and the personnel manual of the bank.

Methodology of Research:

The method for data collection is central theme of the study. No study is completed without using the scientific and systematic ways to get latest knowledge about the study. So the methodology for data collection is based on the traditional categories i.e.

Primary data collection and

Secondary data collection.

In primary data collection I used the techniques of:

·         Personal observation.

·         Briefing and discussion during the internship with the officers of different departments.

·         Unstructured interview technique is also used when I faced any problem during the work.

In secondary data collection method I got information from:

·         Working manual issued by the Head office to the branches in different department’s e.g. foreign exchange manual etc.

·         Annual reports from 2004 to 2007.

·         Brochures for information to customers.

·         Pamphlets.

·         Inter-Bank office memos.

·         Banking journals.

·         Newspapers and magazines.

Scheme of Report:

This internship report is broadly divided in four sections with the number of chapters required in each section. The brief of each chapter is as follows:

i.            “INTRODUCTION OF REPORT” is divided into different topics which include: The Background of Study, Purpose of Study, Scope of Work, and Methodology of Research.

ii.            “INTRODUCTION TO BANK ALFALH LTD” is about the brief history of banking sector in Pakistan and then specifically in NWFP. Then, background history of BAF, Banks Mission, Vision and Corporate Goals and strategic Objectives are discussed under the shelter of this chapter.

iii.            “ORGANIZATIONAL STRUCTURE” discusses the organizational setup in BAF and brief about branch network of bank.

iv.            “BAF F10 Islamabad Branch.” highlights the departmentalization in F10 Islamabad Branch. And then each department is discussed in detail about its functioning and working which include: Deposit department, Account department, Remittances department, Credit department and Trade Finance department.

v.            “FINANCIAL ANLYSIS” discusses the financial aspects of the bank as a whole, which include computation of various critical ratios and their interpretation as well as the financial highlights from previous years of the bank.

vi.            “ORGANIZATIONAL ANALYSIS” highlights the various critical aspects of the branch, which include: Administrative Analysis, Personnel Management Analysis and Functional Analysis.

vii.            “RECOMMENDATIONS AND ACTION PLAN TO BANK” is about to suggestions and for further improvement of the bank performance, which are both in qualitative and quantitative terms and also implementation plan for some quantitative recommendations.

The Bank of Khyber (Internship report) Chapter-1

CHAPTER 1

Introduction of report

Background of study

Department of management sciences requires it’s students of MBA Finance to undergo a 8 weeks internship program Selection of organization depends upon SBP and the students field of specialization. The 8 weeks practical experience is then documented in the written form known as “Internship report”, based on theoretical and practical learning of the internee. This report is about The Bank of Khyber Mingora Branch.. They provide new and improved customer services facilities also mobilize the foreign investment.

Purpose of study

The main essence of the study is to get the over all information and practicing within the organization to get some know how about the practical work.

As the branch day to day operation are different so the analysis were taken on long term to show the earning capacity and financial position financial statement of different years have been analyze.

 This study will help the reader to know about the insight story and operational efficiency of the organization.

Scope of study

The study conveys the description of the various departmental functions at the branch.

And the analysis is done from both managerial and operational perspective SWOT analysis has been conducted based on both internal and external environment in this report I have focused on the following departments of BOK Mingora Branch.

o       Deposit Department

• Remittances department
• Cash department
• Advances department

I have tried to give some suggestion to further improve the performance and efficiency of the selected functional department of the banks.

  LIMITATION OF THE STUDY:

The time given for this research is considerably short for collecting data on large scale. The availability of professionals in the field was also limited and collecting data about the branch providing service to 5 districts was very tough and hard. Though a great deal of personal efforts have been made to over come, all the difficulties, in order to make it a productive study. 

Methodology of research

The method for data collection is central theme of the study. Now study is completed without using the scientific ways to get latest knowledge about the study. So the methodology for data collection is based on the traditional categories i.e.

Primary data collection

Secondary data collection

PRIMARY DATA:

“Primary data are the new data gathered specifically for the project at hand” .It is a form of personal observation. It is the most original data and has not undergone any sort of statistical treatment. It is the data collected for the first time is called primary data

·         Interviews:

 For the collection of primary data I interviewed the sample of 50 persons through a structured questionnaire. The sample consist of existing customers of the bank as well as new customers who came for the first time to do business with the bank.

• Observations:

I have observed personally the overall working environments, methods, and procedures of micro finance loans in BOK Mingora branch and observed what difficulties peoples are facing.

Secondary Data

It is the available data or the data already gathered for some other purpose. The secondary data, which I obtained, is from IM/sciences library, reports, and limited number of micro finance professionals and present clients were included as a sample for filling out questionnaire.

Table and figures are used where necessary, for making report easy to comprehend for readers. The following sources are also used for secondary data.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               

• Annual Reports of BOK.

·         Manuals.

• Brochures.
• Web sites.
• Reference books