CHAPTER 01

INTRODUCTION TO THE REPORT

1.1 INTRODUCTION
Albaraka Banking institution is the most critical Islamic banking organisation listed
on the Bahrain stock exchange in footings of capitalization. It is been rated thru giant
& awful's as BBB- with a brief-term rating of A-3. ABG offers retail, corporate and
funding banking and treasury offerings strictly according with the ideas of the
Shari’ah. The legal capital of ABG is US$1.Five billion, whilst the complete fairness
amounts to approximately US$ 1.Fifty nine billion. With belongings
parents$eleven.2 billion, the corporation has a huge physical occurrence inside the
procedure of minor banking gadgets in 12 nations, which in try deliver their offerings
over other than 250 Franchisees .

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1.2 BACKGROUND OF THE STUDY

AIB is an individual from ABG which is a Bahraini Joint Stock Company noted on
Bahrain and Dubai stock trades and one of the outstanding driving universal Islamic
banks. ABG is focused on extending its essence in Pakistan, which is pure from the
quick growth existence attempted by AlBaraka Islamic Bank in the nation and its
arrangements to have its Pakistan activities restricted as a Bank enlisted in Pakistan,
throughout the following couple of weeks. Expanding on the mastery and knowledge
of its staff and the developing familiarity with Shari'ah-consistent financial
arrangements among the majority, AIB has effectively created itself as a noteworthy
unit of ABG working in the area, gaining by the Group's land nearness and brilliant
innovative work in Islamic budgetary items for its business extension in the nation.

1.3 PURPOSE OF THE STUDY

The primary motivation behind the investigation is to think about the AlBaraka
Islamic Bank (AIB) from monetary point of view to have a knowledge into the
general quality and shortcomings of AlBaraka Islamic Bank (AIB) that is likewise a
compulsory prerequisite for the honor to four year certification in Business
Administration at Management Science Department, University of Swabi.

1.4 SCOPE OF THE STUDY

The focal point of the examination is generally speaking Management and tasks of
AlBaraka Islamic Bank (AIB) yet increasingly kept to the Finance and Planning
Department. Constrained time accessible for temporary job in association, resistance
from representatives of the organization and restricted access to the records has
confined the examination and extent of work of the task.

1.5 METHODOLOGY OF THE STUDY

The report is readied utilizing both essential and auxiliary information that
incorporated the accompanying methodological devices.

1.5.1 Primary information

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The information, which is gathered out of the blue and exist in crude structure, is
called essential information.

It incorporates:

 Personal perceptions amid the eight-week entry level position program.

 Interviews and Discussion with the Bank work force every now and then.

1.5.2 Secondary Data

The information assembled from existing sources are called auxiliary information.
They are in handled structure.

The principle wellsprings of auxiliary information of Al – Baraka Islamic Bank (AIB)

are:

Journals, papers and course books.

 Previous Annual reports of Al – Baraka Islamic Bank (AIB)

 Brochures and Manuals of the Bank.

 Websites

 Newspapers

 Previous Internship Reports

1.6 LIMITATIONS
The file is finished with sole purpose of doing the excellent paintings however there
have been sure problem faced all through the internship length. The maximum
essential barriers from which the internship go through are as under.
i. Hurdle in access to data. Due to pearly policy of the bank.
ii. Secrecy policy was a major obstacle in drawing a full precise picture of
origination health and its financial analysis.
iii. Major Key information discolours is banned to outsiders in practice.

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 iv. Two month internship duration is not enough to know and understand
banking in detail.

CHAPTER 2

ORGANIZATIONAL REVIEW

2.1 EVOLUTION OF BANKING

In the same way as other different subjects and sociologies no any careful meaning can
be assumed for the investigation of banking additionally custody in opinion the
specific capacity of banking. Unmistakably there is a major distinction in capacities
performed by old organizations and present day heating. In any case, the essential
supposed is similar banking has now turned into a multi-administration association
with more extensive degree and region of its impact .Mr. Gilbert says "bank is seller in
capital or all the more exceptionally in cash. He is a middle of the road party among
borrower and bank. The definition set down in the financial organizations Act 1962 is
"Investors implies an individual, executing the matter of tolerating to land or
speculation, of stores of cash from open, repayable on interest or generally and pull
back capable with a money order, joins or arranges or generally and incorporates any
"Mail station sparing Bank".
In perspective on the above definitions, in straightforward words a bank can be
characterized as an organization managing in cash, tolerating stores and advances.

2.2 BANKING IN PAKISTAN

Banking industry in Pakistan has experienced distinctive transitional stages. The State
Bank of Pakistan coordinates the budgetary division, involving the business banks,
close by all NBFIs, except for the leasing associations. The IMF pros in their reports
supposed that monetary manufacturing has made to oblige the area needs of the cash
related part similarly as it is engaged to help the customers all around. In the historical
it not ever dragged in the customers, as the backing costs remained advanced when
diverged from various countries in the region. Appraisals were record-breaking high.
Recoveries were not by any stretch of the imagination 25%. Political loads hurt the
viability. The World Bank and IMF never lent assistance to the business.

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The SBP sympathetic the seriousness of the situation displayed changes. Banking
fragment changes have procured challenge inside the system, improved inside
viability, reduced the advancing rates by and large and extended access to the regular
workers. While these results are enabling, substantially more ought to be done and, we
have enlightened the arrangement for the second-age changes in the cash related
territory covering the period 2005-2010. Banks in Pakistan speak to 95 % of the
budgetary division and accordingly extraordinary soundness of banks is clearly related
to the money related advancement and improvement of Pakistan. Banks in Pakistan
had been giving nourishment basically to the necessities of the organization
affiliations, supporting the money related lack, serving two or three huge associations
and participating in return financing. There was no crediting to pretty much nothing
and medium endeavors, to the cabin section or to the rustic division, which make a vast
part of the improvement and work in Pakistan. Most objective, the cash related
territory experienced political impedance in advancing decisions and moreover in the
course of action of boss. The cubicle class which is the establishment of any economy
was not given due thought by the budgetary part. (Hussain, S; Rana, K and Shabbir, A
(1991))

Pakistan is one of just a bunch pair of making countries where the open division banks
exited to the private turns in a constrained aptitude to center time. The organization
just cases the N B, while 80 % of the bank assets are in private hands. Also, there is
outrageous test amongst the banks, as in the private region everything is execution
based. Rather than the open territory or the governing body, any specialist not making
results is ended in light of the fact that he impacts advantage of the affiliation. The
representatives these days leave their agreeable work environments to grandstand their
budgetary things and create customer base. The dealer exhibit has changed into a buyer
publicize. The customer may pick the keep cash with best things and organizations.
There was a period, only two or three years back, people used to go the banks and the
staff treated them desolately, was normally uncooperative and upsetting. By and by,
they are after the customers.
Banking division changes were as such required gravely to address these and diverse
objectives with the objective that the banks could expect their due activity in the
money related progression of the country. Disregarding the way that, there is no space
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for absence of concern and an extraordinary arrangement still ought to be done, even
the most exceedingly awful faultfinders of this lawmaking body do yield that if there is
one region, which has encountered essential change that is the money related portion.

Banks in Pakistan have been cooking basically to the necessities of the organization
affiliations, supporting the fiscal deficiency, serving a few broad undertakings and
taking an interest in return financing. There was no advancing to pretty much nothing
and medium endeavors, to the hotel division or to the rustic zone, which make a huge
bit of the improvement and work in Pakistan. Most fundamental, the cash related
structure experienced political impedance in crediting decisions and besides in the
course of action of chiefs.
A share of the important changes talented in the financial area to-date includes:

 Strong corporate management by SBP, application of banking permit

guidelines, direct money related connections, independent preparation to Board
locations and Chief Executive Locations, a safe coldness influences for Panel
comparative depictions, confidential exchanging, guidelines of outside reviewer's
vocation, and sensible rules for Board of Directors.

 Strict examination and reduction of non-appearing advances via dynamic inclusion

of the corporate industrial Restructuring company (CRIC) and Committee of Revival
of sick gadgets (CRSU).

 SBPs expulsion of boundaries compelled on nationalized NCBs for

commercial enterprise financing and motivation plans for assist of home mortgage
financing through the banks.

 Implementation of monetary institutions (restoration of bills) Ordinance

2001, and unwinding of authorizing and administrative condition for Micro credit and
Rural Finance establishments, empowering their foundations at areas, common and
countrywide dimensions with transferring capital requirements;

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 obligatory prerequisite for all banks to get themselves assessed by FICO
rating places of work on the way to inspire traders to make knowledgeable decisions
approximately setting their reserve funds with the banks.

2.3 HISTORICAL BACKGROUND OF AL – BARAKA ISLAMIC

BANK (AIB)
AIB is an individual from Albaraka Banking Group (ABG) which is a Bahraini Joint
Stock Company recorded on Bahrain and Dubai stock trades and one of the notable
driving global Islamic banks. ABG is targeted on extending its essence in Pakistan,
which is plain from the short development being attempted by AlBaraka Islamic
financial institution within the country and its arrangements to have its Pakistan sports
restricted as a financial institution enrolled in Pakistan, at some point of the
subsequent couple of weeks. expanding on the potential and revel in of its personnel
and the developing familiarity with Shari'ah-agreeable monetary preparations among
the general public, AIB has efficaciously created itself as a noteworthy unit of ABG
operating in the locale, gaining by the institution's topographical nearness and
outstanding innovative paintings in Islamic economic items for its enterprise
extension inside the country. looked with growing difficulties in this fast developing
enterprise sector, AIB firmly relies upon on its ability to be a feasible and powerful
market player thru restored center around unmatched customer management,
development of Islamic alternatives in assessment to standard financing places of
work, and severe adherence to Shari'ah selections and requirements.

2.3.1 Al – Baraka Islamic Group

ABG is the greatest Islamic financial gathering recorded on the Bahrain Stock
Exchange regarding capitalization. It has been evaluated by Standard and Poor's as
BBB-with a transient rating of A-3. ABG offers retail, corporate and speculation
banking and treasury benefits carefully as per the standards of the Shari'ah. The
approved capital of ABG is US$1.5 billion, while the all out value adds up to about
US$ 1.59 billion. With resources of US$11.2 billion, the Group has a wide
topographical nearness as auxiliary financial Units in 12 nations, which thusly give
their administrations through in excess of 250 branches. These financial Units are
Jordan Islamic Bank/Jordan, Al Baraka Islamic Bank/Bahrain, Al Baraka Islamic
Bank/Pakistan, Banque Al Baraka D'Algerie/Algeria, Al Baraka Bank Sudan/Sudan,

7
Al Baraka Bank Ltd/South Africa, Al Baraka Bank Lebanon/Lebanon, Bank Et-
Tamweel Al-Tunisi Al Saudi/Tunisia, The Egyptian Saudi Finance Bank/Egypt, Al
Baraka Turk Participation Bank/Turkey, Albaraka Bank Syria (under foundation), and
delegate office, Indonesia.
2.3.2 Subsidiary Banking Units of ABG

Figure 2.1: Subsidiary Banking Units of ABG

2.3.3 History
AIB has the delight of being the pioneer of Islamic banking in Pakistan and has been
working in the country as parts of Al-Baraka Islamic Bank Bahrain since 1991.
Consistently, the bank has viably made and kept up its lifestyle as one of the
fundamental providers of a substantial gathering of banking things and organizations
in serious consistence with Shari'ah models. At present working with 20 branches in
11 significant urban regions of the country, AIB offers a wide show of Islamic
financing things, for instance, Murabaha, Ijara, Musharaka and Islamic Export
Refinance, etc., considering a contrasting cross-portion of the economy, including the

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Corporate, SME and Consumer parts. Likewise, unique Shari'ah pleasant store plans
are open for customers to put their benefits in, close by a combination of other
subordinate organizations, for instance, web banking, ATM/charge card, safe store
extra rooms and administration charge portions, etc.

2.3.4 Al - Baraka's Commitment to Islamic Banking

AIB & ABG are completely dedicated to create and advance an incorporated Islamic
Financial System. Consistence with the guidelines and standards of Islamic Shariah is
the center of the banking and budgetary exercises and its reasoning. All its financial
exercises are all around firmly controlled by a Board of Shariah Advisors based at the
Head Office in Bahrain and a Shariah Advisor situated in Pakistan, to guarantee
exacting consistence with the most astounding models of Islamic Banking standards.

2.3.5 Current Position

As of now the accepted capital of Al – Baraka Islamic is US $ 1.five billion, while the
whole value provides up to about US $ 1.5 billion. The institution has a extensive
topographical nearness as Subsidiary economic devices in, which thusly supply their
administrations through more than branches. As of now there are 496 representatives
operating at numerous elements of Al – Baraka Islamic at Pakistan.

2.3.6 Credit score

JCR-VIS credit rating business enterprise Ltd. has reaffirmed the medium whole deal
score of Albaraka Islamic financial institution BSC © - Pakistan Branches at A
( single A) with an 'unfaltering' attitude, the shot time period rating is A-1 (single A-
one).

2.3.7 Auditors
Passage Rhodes sidat Hyder and Co., Chartered Accountants, being qualified, have
supplied themselves to go about as reviewers of the financial institution for the year
finishing December 31, 2013

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2.4 PRODUCTS AND SERVICES OFFERED BY AL – BARAKA
ISLAMIC BANK
Endeavoring to create and a coordinated Islamic economic device. Consistence with
the hints and requirements of Islamic Sharia is the center of the banking and economic
physical activities of the financial institution. To this give up, Albaraka has
successfully searched for the counsel and mastery of Islamic researchers acclaimed
for his or her perception and devotion from anywhere throughout the Islamic global to
direct its manner and display screen its execution. The Banks' sporting events and
sports are continually examined via its Sharia Advisory Board.

2.4.1 Products and Services of AIB

Al-Baraka Islamic Bank in Pakistan offers an exhaustive scope of banking items and
administrations. They are:

 Savings and Current Accounts

 Term Deposit Accounts
 Khazana Accounts
 Incentive Accounts
 Murabaha Investment Accounts
 Housing Musharakah

2.5 OTHER SERVICES OF AIB

Next to of these banks likewise offer a huge scope of administrations.

2.5.1 Demand Drafts

In case you are hunting down an ensured, quick and reliable way to deal with trade
money, you would now have the capacity to purchase AIB's (D.D) Demand Drafts at
completely reasonable rates. Any individual whether a record holder of the bank or
not, can purchase a Demand Draft from a bank office.

2.5.2 Letters of Credit (L/C)

AIB is centered around offering its business customers the most extended extent of
decisions in the region of money trade. In case you are a business adventure, by then
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our Letter of Credit organization is actually what you are hunting down. With
centered rates, security, and effortlessness of trade, AIB Letters of Credit are the best
way to deal with do your business trades.

2.5.3 Letter of Guarantee

The advances office similarly issues Letter of Guarantee. L/G is a kind of advances
against affirmation. A L/G is an under taking given by a bank to be reacted in due
request in regards to the commitment, default or unexpected labor of another person.
It is also described as a consent to play out the certification or discharge the
commitment of third individual if there ought to emerge an event of default. The L/G
is opened for a social affair when another get-together with whom they are overseeing
business requires a bank guarantee.

2.5.4 Travelers Check

Pak Rupees Traveler's Check are a debatable instrument. There is no limitation on the
time of legitimacy. Accessible at all parts of AIB everywhere throughout the nation.
There is no restriction on buy. AIB Traveler's Check are the most secure approach to
convey our cash

2.5.5 Pay request

AIB gives another inspiration to trade money using workplaces. Pay orders are an
ensured and straightforward way to deal with move money beginning with one spot
then onto the following. Likewise, clearly, charges for this organization are incredibly
engaged.

2.5.6 Foreign Remittances

To empower its customers in the zone of Home Remittances AIB has taken different
measures to Increase home settlements through the budgetary system and Meet the
SBP mandates/guidelines for auspicious and brief conveyance of settlements to the
recipients.

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2.5.7 Islamic Export Financing
This office is urged to help fares of the nation. Assets are made accessible from SBP
at lower rates.

2.5.8 Foreign Currency Accounts (FCAs)

Outside Currency Account in AIB can be opened in three noteworthy monetary
standards of the world, i.e., U.S. Dollars, European Euro and UK Pound Sterling. Just
approved parts of AIB can bargain in outside cash account. The records can be
opened both by Pakistan residents and outsiders by presentation and following
different systems required for general records with one special case for outsiders that
they should present a duplicate of their identification. Sum saved in the remote cash
account must be in four monetary standards, which are referenced prior. At the point
when the client will pull back the cash, he/she will get the sum in the equivalent
outside money/benefit will likewise be in the equivalent remote money.

There are two sorts of remote cash accounts:

 Current Account
 Saving Account

These records are treated in a similar way as Pak Rupee Accounts.

2.5.9 Online Banking

You currently approach your record 24 hours per day, 7 days seven days. You
exchange reserves or even pay charges regardless of whether it's an occasion; AIB
Online is a one of a kind administration offering from Al – Baraka Islamic Bank.
Through AIB Online, your record in Al – Baraka Islamic Bank is accessible to you
from any of our branches nation wide. Regardless of where you are in the nation and
which branch your record is kept up, you can have your check encased at any of our
branches situated in any urban areas. You can likewise utilize the support of store
money for moment credit into your record or some other record in Al – Baraka
Islamic Bank any branch. Additionally account-to-account Funds Transfer office is
likewise accessible for moment settlement.

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2.5.10 ATM Network
Al – Baraka Islamic Bank likewise give the offices of ATM card (Barakash). Clients
presently have the accommodation of pulling back money from any of various ATMs
("All-Time Banking" areas) strategically placed in real urban communities like
Karachi and Lahore whenever of the day or night even on shut days/occasions.
Different administrations incorporate client having the capacity to ask about the AIB
parity of his/her record or printing a truncated (small scale) proclamation appearing
latest eight exchanges up to the past working day.

2.5.11 Utility Bills

All parts of the financial institution gather carrier payments of energy, fuel and
phones. For accommodation of the clients, application payments are accumulated by
using the branches amid banking hours and furthermore at night betting on all running
days. payments can be paid thru coins or tests. customers might also drop bills with
crossed registers with a drop box on hand at the branches beneath "checks Drop-in"
framework.

2.6 OUR VISION

To be a major and a broadened worldwide Islamic financial institution, providing a
huge scope of satisfactory products and services and shaping essential unions for a
competitive edge.

2.7 THE MISSION STATEMENT

We endeavor to be a choicest nearby Islamic bank, devoted to the financial and Social
improvement of our goal marketplace, Maximizing our clients and Shareholders fee
And concentrating on the Human useful resource development In a domain of
Creativity and Innovation.

2.8 OBJECTIVES
 To improve investor esteem while pressing together a system of business
development and topographical extension.

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 To give imaginative and top notch innovative work into Islamic money related
items which consent completely with the standards of Shari'a Law and Islamic
qualities, to help our clients.

 To use the Group's land nearness to appropriate its items and benefits and
advance cross outskirt administrations.

 To keep up the most elevated global guidelines of corporate administration

and administrative consistence.

2.9 CORE VALUES

The bank Management has recognized the accompanying guiding principle to
accomplish its objectives:-

 Highest nature of administration

 Professionalism, Integrity and Team Work

 Innovation and use of most recent innovation

 Corporate and Social Responsibility

 Islamic Banking administration

2.10 CORPORATE PROFILE

The Corporate Profile gives an exhaustive synopsis of the association. The Profile
contains the accompanying data:

• Company Business Description

• Industry Classification (Major and Sub Industry)

• Address (mailing), Phone Number, Web Address

• Exchanges Listed, Ticker Symbol

• Senior Officers

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• Number of Employees

• Earnings/Dividends

• Financial Ratio Analysis

• Recent Stock Performance

• Sales (late year)

• Shareholder Information

• Up to 10-year Analysis Summary (Per Share)

o Market Price

o Value Ratios

 Price/Earnings

 Price/Book Value

 Dividend Yield

o Equity Capital

 % Earned Growth

 % Profit Rate (ROE)

 Beginning of the Year Book Value

o Earnings

 12 Month Earnings per Share

 Annual rate Change

o Dividends

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 % Payout Ratio

 12 Month Dividends per Share

• Proprietary Wright Quality Rating

CHAPTER 3

ORGANIZATIONAL STRUCTURE
Figure 3.1: Organizational Structure of AIB

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 BOARD OF
DIRECTORS
Executive
Committee Audit
EXECUTIVE committee
COMMITTEE
Shariah Board

Country Regional
Manager Manager

BRANCH
MANAGER

17
Al – Baraka Islamic Bank (AIB) Management Structure Chart
Figure 3.2: AIB Management Structure Chart

Board of Directors

Country Manager

Regional Manager Regional Manager Regional Manager

South Central North

Chief Head of Head Head Head of Head of

Financial (HR) of of (IT) (Treasury) (Credit)
Officer (Audit)

Regional Chief

Branch Manager

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3.1 BOARD OF DIRECTORS
NAME DESIGNATION

Mr. Khalid Rashid Al Zayani Chairman

Mr. Adnan Ahmad Yousif Vice Chairman

Mr. Othman Ahmed Sulieman Board Member

Mr. Abdul Hameed Nazer Board Member

Mr. Abdul Latif A. Janahi Board Member

Mr., Mousa Adbul aziz Shihadeh Board Member

Mr. Adel Saud Dehlawi Board Member

3.2 EXECUTIVE COMMITTEE

Name Designation

Mr. Othman Ahmad Suliman Chairman

Mr. Adnan Ahmad Yousaf Vice chairman

Mr. Abdul Latif A. Janahi Member

Mr. Mohammad Isa Al Mutaweh Member

3.2.1 Introduction to AIB Swabi branch

To give the financial office to individuals of Swabi Al-Baraka Islamic bank Swabi
branch was built up in 2009 G.T Road Swabi. Mr. Hussain Ali is the administrator of
branch. AIB Swabi branch began its tasks easily and gainful and with the progression
of time, the board improved its proficiency and notoriety. The branch is open to every
single remote town and just as the luxurious provinces of Swabi. The structure of AIB

19
comprises of a branch supervisor, settlements, clearing and confirmation, charges
division and money office.

3.3 DEPARTMENTALIZATION
The Al-Baraka Islamic Bank has number of interrelated divisions that cooperates to
accomplish the particular objectives and goals of the association. The AIB has
constructed a progressive framework that incorporates the sub offices.

The AIB's leaving framework incorporates following divisions.

 Deposits division

 Cash division

 Clearing division

 Advances division

 Remittances division

Every one of these divisions go under the activities, which is going/constrained by the
Manager Operations.

3.3.1 Deposit Department

Fundamentally this office is the mainstay of the entire financial framework. This is
the office which starts the connection between the client and the bank. Here it the
obligation of the officer that there is no component of extortion by the client. For this
reason the bank satisfies the KYC (Know Your Customer) approach related
guidelines issued by SBP.

3.3.2 Types of Accounts

Significant sorts of records offered in AIB are following:-

 Current Account

 PLS Saving Account

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 Term Deposit Account

3.3.2.1 Current Account

This sort of record is payable to the client on interest, henceforth called current
liabilities because of their inclination. No benefit is given at this record. Least sum for
opening these sorts of records is typically about Rs: 5,000/ - .

3.3.2.2 PLS Saving Account

The target of sparing record is to instill the sparing propensity in the overall
population since benefit is paid on this sort of record determined on consistently
premise. Least sum for opening these sorts of records is ordinarily about Rs: 2,000/ - .

3.3.2.3 Term Deposit Accounts

In this class Fixed or Term Deposit accounts are offered by the bank. In these sorts of
records the store can be pulled back after a predefined timeframe. Since the sum in
these sorts of records is kept for a fixed period so the bank can without much of a
stretch put them in any gainful action and can get return on the grounds that there is
no weight of with drawl by the client.

3.3.2.4 Khazana Accounts

 Minimum balance Rs. 250,000

 Higher expected returns at that point sparing record

 Profit: Quarterly

3.3.2.5 Incentive Accounts

 Minimum balance Rs. 100,000

 Higher expected returns at that point sparing record

 Profit: Half Yearly

3.3.2.6 Mahana Amadani Accounts

 Minimum balance Rs. 50,000

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 Tenure from one Year to Five Years

 Profit: Monthly

3.3.3 Opening of Account

Following is the technique to open a record

3.3.3.1 Requirements for Opening an Account

At the season of opening a record the client must have following attributes:

 Must be a grown-up/grown-up gatekeeper.

 Must not be bewared under any law from going into any agreement.

 Should be known to the any of the financial staff as per KYC approach.

3.3.3.2 Account Opening Procedure

The accompanying methodology is pursued for opening of the considerable number
of records.

 filling of the application structure.

 Signing the example card/SS Card.

 Submission of legitimate authoritative reports.

 Allotment of record number.

 Issuing of check book.

3 technique of Judging the Fraud

 The particular CNIC card is checked.
 The mark of the patron is checked. inside the event that on the off danger that
client is unskilled, at that point his picture is hooked up and thumbs articulation is
given.
 After the report is opened a letter of thanks is issued to the patron. in the
occasion that the customer had given the incorrect location the letter will go back and
the report is ready aside as dicey.
styles of facts:
financial institution provide after sort of file to their clients.

22
 individual debts: Singular statistics are the most man or woman undertaking
money owed. Opened via unmarried individual.
 Joint Account
A shared carrier happens whilst at the least two than clients have one report. The
gatherings to a shared service are considered in regulation as they're one person.
 business bills: commercial enterprise records may be opened by way of
establishments, corporations, institutions, trusts and non-advantage associations.
Following information are required.
wellknown policies for various sorts of accounts
Following are some extensive guidelines, which can be appropriate to a huge range of
records:
 no longer all of the greater then one record of every magnificence
might be opened in a single and a comparable department aside from shared
carrier with some different character.
 within the occasion of the death of a report holder the credit score
stability within the report may be paid to the valid beneficiaries of the
document holder.
 The account holder desires to shut the document ought to give up every
unmarried unused take a look at.

3.3.FOUR CASH BRANCH

The primary capability of this framework is Receipts and installments to the
customers, within the interest of their record, through check or some other arguable
instruments.
The money framework for the most element consists of following zones:
 Receipts
 bills
three.3.four.1 Receipts
The Account holder stores in their statistics through a store slip. the store slip
includes the report wide variety and the identify of record. The sum in discern
and words is also composed on each facet of the slip. The purchaser at that
point stores the sum to the clerk, that's slowly marked via the clerk and an
officer .At remaining sum is stored in clients account.
3.3.four.2 bills

23
 The clients pull lower back the shop via their document through
cheque."Cheque is a bill of exchange drawn on a predetermined financier and
communicated to be payable usually on hobby".
3.three.4.3 forms of exams
 go assessments

 normal checks
Clearing branch
The ability of this department is getting installment of test, request draft, installment
request, transmitted change, mail exchange or earnings warrants saved by way of the
consumer of the branch and different part of a similar financial institution. SBP goes
approximately as a clearing house.
3.3.5.1 Clearing residence
In Pakistan, country bank of Pakistan goes about as Clearing house to settle
the cases of the diverse banks thru their dealers and this ability became earlier
than executed by means of the national financial institution of Pakistan in
which there may be no part of SBP however at this factor national Institutional
Facilitation technology (NIFT) is gambling out the ability of Clearing
residence for each one of the Banks including Al – Baraka Islamic financial
institution.
3.3.5.2 Clearing manner
The accompanying method is glad for clearing matters.
 All units for accumulating (take a look at, drafts, pay orders, and so
forth) got for clearing to be saved by the clients are be entered on the financial
institution's widespread pay-in slip alongside every one of the subtleties,
particularly the financial institution name/code and the archive quantity.
 The clearing authority of the bank appends the bank's intersection and
clearing stamps alongside his/her mark.
 these types of instruments are arranged and published in the
framework.
 the next day they're displayed for clearing in NIFT.
 In case there's no complaint the customers account is credited.
For disrespected device the exceptional is charged from the client

24
3.3.6 Remittances department
The capability of the agreement office is the exchange of cash/belongings
from one bank/office to the subsequent.
three.3.6.1 Modes/units of Remittance
The bank of Punjab, as other commercial Banks attempts to dispatch or trade
cash from one spot to any piece of the country and out of doors the nation. The
cash is transmitted usually with the aid of strategies for:
 demand Draft (DD)
 Pay Order (PO)
 Mail switch (MT)/Telegraphic switch (TT)
 Outward payments for series (OBC)
 Inward bills for series (IBC)
three.3.6.2 call for Draft (DD)
An interest draft is a request device issued for installment of a selected
combination of cash to the request of positive person and drawn on one
workplace of the bank through another office.
it's far made by means of the banks in opposition to installment of cash. The
bank recoups exclusive kinds of costs from the candidate on issuance of DD,
overlaying its bonus and other postal prices.
three.3.6.three Pay Order (PO)
it's far a test drawn by a financial institution on itself. The installment orders
are by means of and massive issued for the installment with inside the city
wherein installment thru tests is beyond the world of imagination. The
financial institution fees constant commission for clearing this instrument.
three.3.6.four Mail transfer/Telegraphic transfer
these are the quicker approaches to change coins. The accompanying systems
are satisfied in such manner:-
 take a look at the check numbers at the landing
 affirm the marks of the bank authentic.
 Entered inside the pertinent sign in.
 Make installment.
 In Telegraphic exchange the specific codes are traded through the bank
authentic on phone but this is frequently now not pursued.

25
Outward bills for collection
payments sent to other towns’ banks for clearing are called outward bills for series.
 checks are entered within the OBC register, the range is written and clearing
stamp is affixed along side the take a look at range entry.
 The OBC recommendation is ready.
 The respective exams are attached with the advice.
 this is despatched to the applicable city.
 Upon clearing that financial institution credit the bank account and offers
advice to the financial institution.

three.three.6.7 Inward payments for series

bills received from other banks out of metropolis for the local clearing are referred to
as inward payments for series.
 The bank received the clearing advice in conjunction with the take a look
at/draft.
 The checks/drafts are recorded in the inward mail and entered inside the IBC
sign up.
 The checks are lodged for clearing.
 After awareness the recommendation is mailed to the branch and its account is
credited.

3.3.7 Advances/ credit score department

The characteristic of this branch is to lend cash inside the form of easy advances, in
opposition to promissory notes, as well as secured advances towards tangible and
marketable securities. The bankers opt for such securities that don't run the threat of
standard depreciation due to marketplace fluctuations.

three.3.7.1 Securities
common Securities for the banker’s advances are as below.
 ensures
when an software for strengthen can't provide any tangible protection, the banker may
additionally depend on private ensures to shield himself towards loss on advances or
overdraft to the applicant.
 loan

26
An advance is the exchange of a leisure activity in explicit steadfast possessions for
the thought process of security the expense of cash progressed or to be progressed by
method for method for advance, and present or fate obligation, or the execution of a
commitment which may upward push to a financial lawful duty. The exchange is
known as a mortgagor, the transferee a home loan.

 Hypothecation

while property inside the state of merchandise is charged as security for an advance
structure the bank the proprietorship and ownership is left with the borrower, the
products are expressed to be Hypothecated The substance of hypothecation is that
neither the property in the products now not the ownership of them are proprietorship
is left with the borrower, the products are expressed to be Hypothecated the
quintessence of hypothecation is that neither the assets in the items no longer the
ownership of them are controlled by utilizing the moneylender, anyway the security is
conceded by utilizing letter of hypothecation, which for the most part offers at a
broker's cost at the hypothecation things.

 Pledge
In a vow the proprietorship remains with vow, yet the vow has the unmistakable
ownership of advantages until the development is reimbursed in total. while if there
should arise an occurrence of the default the promise has the intensity of offer in the
wake of giving due notice.

 Promissory know
on occasion promissory notice is in like manner standard as an assurance, "A
promissory word is a contraptions recorded as a hard copy containing an unlimited
mission marked by methods for the producer, to pay on interest or at a rigid or
definite predetermination time a specific measure of money least difficult, to or to the
request of specific individuals, or to the conveyor or the apparatus." A promissory
note is fragmented till has been conveyed to payee or the carrier. moreover, the total

27
guaranteed in a promissory know can be made through two or additional creators who
can be reliable there on together and severally.

3.3.7.2 client Finance Schemes

Following are the modes used for patron finance.
 car Ijarah
AlB provide the centers of automobile Ijarah/leasing to his consumer. AlB provided
fund as much as 4 million to his patron for the period of 2 to five yr. No interest idea
is worried, consequently profit margin isn't introduced earlier than
transaction .finance on the idea of asset based financing. therefore no risk of default
for bank.
Table 3.1: Features of AIB Car Ijarah

REQUIREMENTS EXPLANATION

MAXIMUM FINANCE LIMIT RS: 40000000

MAXIMUM PERIOD UP TO 1-5 YEARS

SECURITY(IES) ASSET BASED FINANCING

 Housing Musharakah
AlB additionally affords the facilities of Housing Musharakah to his purchaser. AlB
contribution is 80% of total funding, and client can make contributions 20% of the
investment. The worker will pay condo and installments to financial institution to be
able to get general percentage of the belongings or land which they at the same time
buy. The duration is from 1 to fifteen year.
Following are a few necessities of AIB Housing Musharakah;
Table 3.2: Features of AIB Housing Musharakah

REQUIREMENTS EXPLANATION

80% OF INVESTMENT
FINANCING BY BANK

28
 1 TO 15 YEARS
MAXIMUM PERIOD UP TO
ASSET BASED FINANCING
SECURITY(IES)

3.4 CONCLUSION
From the posting of items and administrations expressed it is clear that AlB is putting
forth in excess of a couple of administrations and items in different fields of
organization banking to its customers and its contributions are spread over numerous
components of business banking.

3.5 NETWORK OF AL – BARAKA ISLAMIC BANK, PAKISTAN

Al – Baraka Islamic budgetary foundation, Pakistan, works as part of outside bank

fused and domiciled in Bahrain on February 21, 1984 and is an individual from Al –
Baraka banking organization. The enrolled office of the bank is arranged at 95-B Hali
road, Gulberg II, Lahore and it as of now works through 20 branches (2006: 11
branches) in Pakistan.

AIB branches arrange is isolated into three areas.

3.5.1 Region: North

 Mansehra Branch (01 branch)
 Rawalpindi (03 branches)
 Mirpur, Azad Kashmir (01 branch)
 Peshawar (01 branch)
 Mardan (01 branch)
 Islamabad (01 branch)

3.5.2 Region: Central

 Lahore (04 branches)
 Gujranwala (01 branch)

29
  Faisalabad (01 branch)
 Multan (01 branch)

3.5.3 Region: South

 Karachi (05 branches)

30
 CHAPTER 4

DATA ANALYSIS

4.1 FINANCIAL ANALYSIS OF AIB

Economic measures are also used to rank a business enterprise’s performance. The
evaluation of financial data employs various strategies to emphasise the comparative
and relative significance of the statistics offered and to evaluate the location of the
company. those strategies encompass ration evaluation, not unusual –size analysis,
have a look at o differences in components of monetary statements amongst industries
and so on.

The statistics derived from those forms of evaluation should be blended to decide the
general monetary position. no person kind of evaluation helps average findings or
serves al sorts of customers. monetary statement analysis is a judgmental manner. one
of the primary targets is identity of fundamental changes (turning factors) in
tendencies, amounts, and relationships and research of the reasons underlying those
modifications. right here best kind of analysis is completed

 common size evaluation

 Ratio evaluation

4.1.1 not unusual length analysis

not unusual-length analysis expresses comparisons in percent. the usage of

percentages is usually most excellent to the usage of absolute quantities. using
common-size evaluation makes comparisons of corporations of different sizes a great
deal greater meaningful.

It has the subsequent types

 Horizontal evaluation

 Vertical analysis

31
 4.1.1.1 Horizontal analysis

Horizontal evaluation compares each amount with a base amount for a specific base
yr or we take every object of base year as 100% and evaluate with other items

Horizontal Analysis of AIB Balance sheet 2013-2014

Table 5.1: Horizontal Analysis of Balance Sheet

Horizontal analysis of Balance sheet 2012(%) 2013(%) 2014(%)

Balance sheet
Cash and balance with treasury banks 88.45 106.99 135.67
Cash with other banks 102.26 88.58 246.78
Due from financial institution
investments 167.62 104.74 80.81
Financing 103.80 98.72 128.62
Operating fixed assets 92.34 93.96 103.67
Deferred tax assets 100.18 125.34 110.75
Other assets 134.10 91.87 124.58

Liabilities
Bills payable 105.47 165.54 97.18
Due to financial insititution 62.97 114.72 110.55
Deposit and other account 124.80 102.79 119.54
Sub ordinated loans
Liabilities against assets subject to finance lease 26.53
Deferred tax liabilities
Other liabilities 107 80.65 119.01

Represented by
Share capital 100 100 100
Reserves 100 100 100

32
 4.1.1.2 Vertical Analysis
Vertical evaluation compares every quantity with a base quantity selected from the
identical yr. genuinely, we compare the gadgets of stability sheet or income
announcement vertically via taking one object as one hundred%.

Vertical Analysis of Balance Sheet

Balance sheet 2012(%) 2013(%) 2014(%)
Cash and balance with treasury banks 5.43 5.71 6.52
Cash with other banks 10.44 9.08 18.87
Due from financial institution 1.48
Investments 36.08 37.12 25.25
Financing 38.06 38.96 42.18
Operating fixed assets 3.85 3.55 3.10
Deferred tax assets 1.42 1.74 1.63
Other assets 4.69 2.31 2.42

Liabilities
Bills payable 0.621 1.01 0.82
Due to financial institution 2.39 2.69 2.50
Deposit and other account 84.85 85.66 86.19
Sub ordinate loans 1.32
Liabilities against assets subject to finance lease 0.007
Deferred tax liabilities 3.127
Other liabilities 2.47 2.48

Represented by
Share capital 12.31 12.09 10.18
Reserves 0.11 0.11 0.093

Introduction
Ratio analysis is powerful device of economic evaluation. A ratio is described as “the
quotient of two mathematical expressions” and “as the relationship among two or
extra variables”.

33
Economic evaluation is the manner of figuring out the economic strengths and
weaknesses of the firm through properly establishing relationships between the
objects of balance sheet and earnings and loss account. financial evaluation may be
undertaken through control of the company, or with the aid of events outsides the firm
viz., proprietors, lenders, investors and others. the character of analysis depending on
the reason of the analyst.

4.2 TRADE LENDERS:

Change creditors are interested by firm’s capacity to satisfy their claims over a
totally short time frame. Their evaluation will, therefore, confine to the assessment of
the firms liquidity role.
Suppliers of long term DEBT:
Providers of lengthy-term debt however are involved with firm’s lengthy-time
period solvency and survival. They examine the company’s profitability over the
years, its capability to generate cash on the way to pay hobby and repay hobby and
repay principal, and the relationship among diverse sources of budget (Capital shape
dating). long term creditors do analysis of the historical economic statements by using
placing extra emphasis on the company's projected financial statements to make
analysis approximately its future solvency and profitability.
investors:
buyers who have invested their money inside the forms of share are most worried
about the companies which have constant boom in income. As such, they concentrate
on the evaluation of the company’s present and destiny profitability. they're also
interested in the firm's financial structure to the volume; it impacts the company's
profits capacity and risk.
Management:
control of the company would be inquisitive about each thing of the financial
evaluation. it's far their typical responsibility to look that the assets of the firm are
used maximum correctly and efficiently and that the firm’s financial condition is
sound.

34
4.3 ECONOMIC RATIO ANALYSIS
Ratio evaluation is strong tool of economic evaluation. A ratio is defined as “the
quotient of two mathematical expression” and as “the relationship among two or extra
matters”. In economic ratio evaluation, a ratio is used as benchmark for comparing
the economic role and performance of a company.
Liquidity Ratios:
Liquidity ratios are used to choose a company’s potential to satisfy short time period
responsibilities. It suggests the cash solvency of a firm and its potential to stay solvent
in the occasion of adversities.

Current Ratio:
This ratio shows a firm ability to cover its short- term liabilities through short term
assets.
The current ratio is the ratio of current assets to current liabilities.
Formula
Current Ratio = Current Assets / Current Liabilities

The Three year comparison of ALBARAKA BANK is given below:

Table: Current Ratio

Years 2012 2013 2014
Current Assets 11522667 10933858 22292784
Current Liabilities 7726472 7301954 7243692
Current Ratio 1.49 1.49 3.67

Source: Financial Statements of ALBARAKA BANK 2012, 2013& 2014.

Graph: Current Ratio

35
Interpretation

The current ratio for the financial year 2012 is low. It tells that for every Rupee 1 of
current liability it has 1.49 rupees of current assets. However in 2013, it increases to
1.49. But in 2014it increases to 3.6 which show the average performance of bank.

Quick Ratio:
A extra conservative degree of liquidity is the acid brief ratio. This ratio is identical as
modern-day ratio except it excludes inventories and prepayments, probably the least
liquid part of current property. The ratio concentrates frequently on the extra liquid
present day assets, coins, marketable securities, receivables and advances.
Formula
Quick Ratio = Current Asset –Inventory/Current Liabilities

The Three year comparison of ALBARAKA BANK is given below:

Formula: Current Assets-Prepayments / Current liabilities

Table: Quick Ratio

Years 2012 2013 2014

Current 11522667 10933858 222927884

Assets
Prepayments 1030852 1292139 1431069

Current 7726472 7301954 7243692

Liabilities
Quick Ratio 1.35 1.32 2.87

Source: Financial Statements of ALBARAKA BANK 2012, 2013 & 2014

Graph: Quick Ratio

36
Interpretation
The Acid Quick Ratio for the financial year 2012 was 1.35.The ratio in 2013 was 1.32
which was more as compare to previous year, because of the decrease in current
liabilities. But this ratio decrease in 2014 to 2.87 due to increase prepayments.

Cash Ratio:
now and again it desires to view the liquidity of the company from an incredibly
conservative factor of view, as an instance the corporation can also have pledged its
receivables and inventories. In such kind of situations, the exceptional indicator of the
firm of the quick- term liquidity is the cash ratio.
Formula
Cash Ratio = Cash + Marketable Security / Current Liabilities
Or
Cash Ratio = Cash + Cash / Current Liabilities

THE THREE year comparison of ALBARAKA BANK is given below:

Formula: Cash / Current Liabilities

Table: Cash Ratio

Years 2012 2013 2014

Cash 3945481 4221381 5727407

Current 7726472 7301954 7243692

Liabilities
Cash Ratio 0.51 0.57 0.79

37
Source: Financial Statements of ALBARAKA BANK ALBARAKA BANK 2012,
2013& 2012

Graph Cash Ratio

Interpretation
The three year comparison shows that cash ratio has upward trend from year 2012 to
2014.In 2012 it was 0.51 and in 2014 it was 0.79, which shows that ALBARAKA
BANK carried more cash in 2014 as compared to other years.
Working Capital
Working capital is the difference between current assets and current liabilities
Formula:
Working Capital = Current asset - Current liabilities

The three year comparison of ALBARAKA BANK is given below:

Table: Working Capital Ratio
Years 2012 2013 2014
Current Assets 11522667 10933858 22292784

Current 7726472 7301954 7243692

Liabilities
Working 3796195 3631904 15049092
Capital

Source: Financial Statements of ALBARAKA BANK 2012, 2013& 2014

38
Graph: Working Capital Ratio:
Interpretation
The analysis of working capital shows upward trend from year 2012 to 2014. For
2014 it shows minor change in working capital.
Total Asset Turnover:
Generally the total assets turnover measures the activity of the assets and the ability of
the firm to generate sales through the use of the asset.
Formula:
Total Asset Turnover = Interest earned/ Total Assets

The three year comparison of ALBARAKA BANK is given below:

Table: Total Asset Turnover
Years 2012 2013 2014
Markup,
6699178 6271140 6131232
Return Earned
Total Assets 72545064 73866558 87759404
Total Asset
Turnover 0.092 0.084 0.069
Ratio
Source: Financial Statements of ALBARAKA BANK 2012, 2013 & 2014
Graph: Asset Turnover Ratio

39
Interpretations
The Assets efficiency of the ALBARAKA BANK has increased for the year 2012 to
0.092 as compared to 2013 which was 0.084. For 2014 we can say that each rupee
investment in total assets produces 0.069 rupee as return earned. Asset turnover ratio
of ALBARAKA BANK of Pakistan has improved a little bit in 2013 as compare to
2014.

Debt Ratio or Debt to Assets Ratio:

It show that how much assets have been financed through liabilities. it also shows the
margin of protection available for the creditor . It shows the relationship between total
debts and total asset.

Formula:
Debt of Assets = Total Debts / Total Assets.

The three year comparison of ALBARAKA BANK is given below:

Formula: Debt Ratio = Total Liabilities / Total Assets

40
Table: Debt Ratio
Years 2012 2013 2014
Total
66020396 67847098 81911211
Liabilities
Total Assets 72545064 73866558 87759404
Debt Ratio 0.91 0.91 0.93

Source: Financial Statements of ALBARAKA BANK 2012, 2013 & 2014

Graph: Debt Ratio

Interpretation
The three year comparison of Debt ratio for ALBARAKA BANK shows that in 2012
and 2013 assets is financed through debt was 0.91 while in 2014 it increases to 0.93.
Profitability Ratios
these ratios indicate the firm’s ordinary effectiveness of the operations.
internet earnings Margin
this is the conservative method of income profitability. This ratio gives a measure of
internet income in Rupees generated by way of every Rupee of sales. this is ratio of
internet earnings after taxes to internet income. it is also expressed as a percent
Formula:
Net Profit Margin = Net Income / Net Sales x 100

41
The three year comparison of ALBARAKA BANK is given below:
Net Profit Margin=Net Income / Interest earned x 100
Table: Net Profit Margin
Years 2012 2013 2014
Net Income 410370 644040 41231
Interest 6699178 6271140 6131232
Earned
Net Profit 0.06 or 6% 0.10 or 10% 0.006 or 67%
Margin

Graph: Net Profit Margin Ratio

Interpretation
The ratio shows upward trend from 2012 to 2013 but in 2014 it decreased. It increased
4% in 2013 as compare to 2012 .In 2014 the ratio decrease to 0.006 as compare to
2013.

Gross Profit Margin

This ratio indicates the earnings of the company relative to the sales. it's far a
measure of efficiency of the companies operations as well as an illustration of
ways product or services of the firm are supplied. Gross income Margin is the
ratio of gross profit to net sales expressed as a percent. It expresses the
relationship among gross income and net sales. Formula
: Gross Profit Margin = Gross Profit / Net Sales x 100

42
The three year comparison of ALBARAKA BANK is given below:
Formula: Interest expense x 100
Interest earned
Table: Gross Profit Margin
Years 2012 2013 2014
Return on 5001222 4725249 4340094
deposit and
Expense
Return Earned 6699178 6271140 6131232
Gross Profit 0.746 or 74.6% 0.75 or 75% 0.70 or 70%
Margin Ratio

Source: Financial Statements of ALBARAKA BANK 2012, 2013 & 2014

Graph: Gross Profit Margin Ratio

Interpretation
ALBARAKA BANK of Pakistan has a better Gross profit margin for the year 2012
and 2013 compared to 2014. Gross profit margin decreases in 2014 as compare to
2013 and 2012 which shows that ALBARAKA BANK has become less effective in
producing the services reasonably above cost and charging for them.

43
4.4 SWOT ANALYSIS OF AIB
SWOT stands for energy, Weaknesses, possibilities and Threats. SWOT is beneficial tool
for supplying a framework for evaluation of an organization. it's far huge method to make
assessments in terms of inner and external environment of the enterprise and to formulate
strategies via studying its internal strengths and weaknesses, external opportunities and
threats.
SWOT analysis for Al – Baraka Islamic bank is as follow:

4.4.1 STRENGTHS
 Commitment to Islamic Shariah
Endeavoring to create and a joined Islamic monetary gadget . Consistence with the
guidelines and ideas of Islamic Shariah is the center of the banking and monetary
exercises of the bank. To this stop, Albaraka has effectively looked for the proposal and
skill of Islamic students acclaimed for their comprehension and devotion from
everywhere throughout the Islamic universal to direct its course and screen its execution.
The Banks' games and tasks are regularly examined through its Shariah Advisory Board.

 Skilled and affirmed group of laborers

For the span of the exploration it's been seen that the group of laborers/staff of the
enterprise is guaranteed and experienced. huge numbers of the bank officers have upgrade
skill and revel in the fields of the executives, banking guideline and exercise.

 Legitimately PR with clients

The association of the director and the elective group of laborers of the business is truly
top with the clients, which winds up in positive attitude and faithfulness of the customers
closer to the business.

 Exact Managerial capacities

The chiefs are totally conscious of the ongoing administrative thoughts and are equipped
for location any sort of situation.

44
 Process pride in any regard ranges
Action pride is one of the fundamental components for the work force to be animated.
The people inside the association under thought were resolved really happy with their
employments.

 Quarterly execution Appraisal

Execution examination is the path by which you can really assess the laborer's general
execution; it impacts inside the upgrade of the association's regular execution. The
execution examination is done on quarterly establishment in this undertaking, which
prompts better by and large execution.

 Pleasant condition
The surroundings of the business could be in all respects benevolent. individuals over
appropriate here are extremely helpful, not just with the clients anyway among
themselves also.

 Ready senior control

The senior control inside the business might be extremely bounty capable and
experienced; they effectively manage unprecedented internal and outside undertakings.

4.4.2 WEAKNESSES

i. No HR office degree at zonal and office organize

Human guide branch is one of the significant necessities of any venture of this age. The
company underneath consideration, despite the fact that involve a HR division at
headquarter yet there aren't any sub divisions on the commonplace or office organize. So
while exceptional issues related with HR are raised, they're left unaddressed.

45
ii. Centralized determination making
The decision making inside the business venture is totally incorporated which finishes
inside the loss of certainty of the workers over the control, representatives won't have any
desire to watch the directs, guidelines and rules.
iii. lack of basic instruction
despite the fact that there might prepare foundation at head work environment, anyway
the preparation programs are generally limited to the administrative staff, there might be a
need of tutoring at all of the stages.
iv. Lengthy enrollment process
The enrollment strategy is very drawn out which can demoralize the new comers. In this
way, there's a need to abbreviate the whole procedure.
v. much less internal enrollment for fresh out of the plastic new posts
it's been seen that inside the enterprise under consideration, if new opportunities are
assigned there is a pattern of outside enrollment, which results inside the disappointment
of the present day faculty.
vi. lack of promoting exertion
The budgetary establishment does never again sell its organization photograph,
administrations, and numerous others on an aggressive way. consequently needs far at the
back of in publicizing exertion. A need for forceful promoting and showcasing is there in
the innovation publicizing in now turning into a piece of every association.

i. extra qualified individuals inside the market

because of the blast of pastime of individuals in business endeavor discipline, numerous
business foundations had been mounted, which delivers an incredible parcel of qualified
and in a position business venture authorities. Along these lines, the organization under
thought can lease more prominent qualified people from market.

ii. effective use of inside human resources

people working inside the business endeavor get use to the standards and estimations of
the organization, so these expirees might be used inside the office each time required.

46
iii. Training can adorn the representative's aptitudes.
tutoring and improvement is one of the basic component of human guide control. In the
event that the assortment of specialists of the organization are pleasantly instructed and
propelled they may transfer to the expense of the business.

4.4.4 THREATS

i. growth in rivalry
The developing restriction in adjacent just as nation wide and worldwide dimension
likewise decline down the productivity of the money related establishment and
convincing the budgetary organization to apply a major measure of assets to fulfill out
resistance.

ii. correct process potential outcomes open air.

different organizations of similar nature are bestowing additional pay rates and increase
bundles to their representatives. In this way, there might be a risk to the business that their
bleeding edge representatives may moreover leave it.

iii. Uncertainty around fate change

A vulnerability about the predetermination changes has been watched the greater part of
the work force of the organization, it results in disappointment and demotivation of the
representatives, that is an outrageous danger to the endeavor.

47
 CHAPTER 05

FINDINGS, CONCLUSION AND ENDORSEMENTS

5.1 CONCLUSION

The Al – Baraka Islamic Bank is another creating bank and it is endeavoring to get bit
of the pie inside seeing national and remote banks working in the country. It has
expected a basic occupation in boosting the economy of the country yet there reliably
exists some chance to show signs of improvement. In the wake of watching this AIB
in all regards eagerly and its HR office explicitly, following outcomes have been done
up.

 The fundamental authority is up 'til now thought as the middle and low
measurement the board isn't taken into sureness.

 There are no sub divisions at the typical or branch level. So when

unmistakable issues related to HR are raised, they are left unaddressed.

 Most of the delegates working in this branch are very littleacquainted with PC.
They basically acknowledge how to use their bit of programming if any issue comes
in the PC they can't fix it.

 The isolating requires advancement. The specialists are arranged blocked .If
the customers outperform more than fifteen in number, by then the branch

 The selection process is very broad it should be cut.

 The exhibiting tries at the branch level are less limited and there are no fused
undertakings from all the staff people. The get together of stores is basically
considered as the commitment of the branch manager anyway the rest of the staff is
typically least charmed.

 Bank branches are restricted to some specific urban zones.

48
 The bank has been applying the propelled thoughts of the board and
publicizing at both little scale levels. Within and exterior of the branch have been
changed yet the staff of the branch has been found less motivated towards the
legitimate objectives.

5.2 RECOMMENDATIONS

As I have experienced two months in AIB Swabi Branch for the Internship reason. In
the midst of this period I have endeavored my best to watch the budgetary condition
in the AIB. I have viewed a lot of characteristics and inadequacies in the branch. In
light of this observation I have composed certain recommendations particularly
related to the AIB, Swabi Branch anyway generally can be fitting to the whole
monetary plan of Pakistan including each and every other piece of Al – Baraka
Islamic Bank for improvement. These proposals will adjust to the issues being looked
by the Bank and will improve the capability and execution of the AIB explicitly and
all the money related region of the country when all is said in done.

From the past examination of the financial rundowns I have comprehended that that
Al – Baraka Islamic Bank is performing incredible since its initiation. It is difficult to
offer proposition to improve the money related conditions AIB. As we understand that
nothing is perfect, there is reliably a chance to show signs of improvement, so I will
endorse following proposals for AIB:

Representatives Training programs must be displayed on constant reason so

Employees have understanding with the latest enhancements especially with the
customers.

Bank should displayed inspiration plans for agents on common reason so that if
delegates may work whole heartedly for the welfare of their affiliation. While giving
rousing powers ability, work, contribution, steady work and such extraordinary parts
must be considered.

Bungle of advantages must be sidestepped anyway much as could be normal as it

reduces advantage yet moreover cripple persistent worker and genuine delegates.

49
Crisp alumni must be chosen. As the blend of Experienced and new can make better
results and it will improve the profitability of the officials.

AIB is going towards adaptable banking anyway the issue is that a common client has
no idea about its usage on account of nonappearance of advancing. I trust that a fitting
exhibiting program must be pushed for client's care.

Banks unmistakable plans must be passed on to the concentrated on customers so that

to have a reasonable idea in market

 To move the laborers their remuneration/pay rates should be made at standard

with top dimension Banks.

 Aggressive presentation campaign must be exhibited through press and

Electronic media for new things and plan by beginning energetic advancing
methodology.

 Bank should grasp such an acknowledgment plan, that when a customer opens
his record with the bank he should be furnished with a booklet which enables him to
know the strategy for archiving the checks, pay-in-slip, etc. It will save a lot of time
of the bank staff some time later in the midst of the direct of the record of that
customer.

 The outlook of the financial specialists with most of their customers isn't the
identical; they give more thought and extraordinary help of a part of the customers
and negligence a significant piece of them. A segment of the customers method to
manage the bank experts and complete their work before others; it's definitely not a
respectable practice. All of the customers should be managed comparatively.

 AIB should fabricate its correspondence with customers about the terms and
circumstances of its differing things and organizations.

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 Misuse of phone web, fax machines and distinctive workplaces open to the
laborers of the bank must be dealt with really.

 In AIB by and large selections are done through proposals or references of

specialists. Enrollment should be cautiously on authenticity with no other help given
to any confident. Decision should be founded on test and meeting as like MCB and
diverse banks, etc this will guarantee the segment of prepared and estimable laborers
into the bank.

 Scholarship ventures should be expected for senior specialists and branch

boss. The AIB should get into contract with top remote schools. Reliably the bank
should support and send their positioning chiefs for further preparing abroad. After
fulfillment of cutting edge instruction agents will be in a better position than achieve
the crucial focuses of the bank and augmentation the general business and advantage
game plan of the bank.

 AIB must lead huge supplemental classes, courses and workshop to progress
the learning of the worker. The HR Sections game-plan for staff getting ready's to
annoyed with new stresses that may advance toward getting to be threats for points of
interest of the Company. The present customary getting ready projects ought to be
made progressively careful.

 The coordination amongst specialists and various workplaces should be better.

The coordination among top and lower the administrators furthermore ought to have
been improved.

 To give real info to clients, data pawn must be set where veritable specialists
direct purchasers.

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REFERENCES
1. Timothy J. Gallagher, Joseph D .Andrew, JR, Financial management

Gallagher, Joseph D, “financial management”, international edition, 1982,

pp.94-96

1. S. Kevin, portfolio Management, 2nd edition.

Kevin .s, “portfolio management”, 2nd edition, 2000, pp.43-44

2. http://www.albrka.com.pk
3. http://www.sbp.org.pk

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