Final Report on HBL Bank

8/17/2019 Final Report on HBL Bank

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INTERNSHIP REPORT

ON

HABIB BANK LIMITED PAKISTAN

PREEDY GATE BRANCH BANNU

SUBMITTED TO:

SIR AMAN ULLAH AWAN

DIRECTOR (IMS)

SUBMITTED BY:

ASHRAF KHAN

BBA-IT (Hons)ROLL NO#78

SESSION !""-!"$"

INSTITUTE OF MANAGEMENT SCIENCES% UNI&ERSITY OF SCIENCE ANDTECHNOLOGY BANNU


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APPROVAL SHEET


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AN INTERNSHIP REPORT

ON

HABIB BANK OF PAKISTAN, PREEDY GATE BRANCH

INTERNSHIP REPORT SUBMITTED TO THE DIRECTOR, INSTITUTE OF MANAGEMENT

SCIENCES, IN PARTIAL FULFILLMENT OF THE REQUIRMENTS FOR THE DEGREE OF

BBA-IT (HONS)

EXTERNAL EXAMINER:

SIGNATURE: ………………………….

DIRECTOR: PROF:

HAI AMAN ULLAH KHAN A!AN

SIGNATURE……………………………

SUPERVISOR:

NAME: MR. AFTAB KHAN

DESIGNATION: LECTURER

SIGNATURE: ………………………….

I"#$%$&$' M*"*+''"$ S%'"'#, U"%'/#%$0 S%'"' *"1 T'2"3+0 B*""&


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DEDICATION

I dedicate this

effort to my

Parents & Teachers

who Guide

& Encourage me

during the course

Of

My Studies and

preparation of this Report.

PREFACE

Every student of Bachelor in Business Administration at UNIVERSITY OF SIENE AN!

TE"NO#O$Y BANNU has an essential re%uirement to do Si& 'ee(s internshi) in any of the 'ell

re)uted or*ani+ation, The )ur)ose of this )ro*ram is to ac%uaint the students 'ith )ractical a))lications

of theoretical conce)ts tau*ht to them durin* conduct of their BBA -IT. )ro*ram,


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The internshi) in "ABIB BAN/ is )ersonally arran*ed 0y my o'n resources and the de)artment *ave

me a letter for *ettin* this internshi),

Really1 it 'as a nice o))ortunity to have a close com)arison of theoretical conce)t in )ractical field1

involvin* the use of )rimary and secondary data, This Re)ort may de)ict deficiencies on my )art 0ut

still it is an out)ut of a student2 efforts1 for 'hich I 0e* )ardon,

The out )ut of my analysis is summari+ed in a sha)e of Internshi) the contents of the re)ort Sho's the

detail of se%uence of these, The re)ort is concluded 'ith )ro0lem and su**estions,

3U"A33A! AS"RAF /"ANBBA4IT -"ons.

RO## NO5 678

UST BANNU

ACKNOWLEDGEMENT

No one can say that I am )erfect everyone should admit that 'ithout the hel) of A##A" and "is )eo)le

a man can2t *et anythin* so I 0o' my head 0efore almi*hty Allah 'ith *ratitude, I am also very much

than(ful and )resents salute to many individuals 'ho have hel)ed me in sha)in* this re)ort ,I am also

very much than(ful to lot of former fello's and contem)orary collea*ues 'ho too( the time and trou0le

durin* the last fe' days to s)ea( to me a0out the 'ay this te&t could 0e further im)roved,

Iamvery than(ful to the director of I3S "a9i Aman Ullah A'an Sahi0,


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I am also than(ful to the staff of "a0i0 Ban( #td,

3U"A33A! AS"RAF /"AN

BBA4IT -"ons.

RO## NO5 678

UST BANNU

Executive Summary:

As we all know very well that time and tide wait for none. So, because of this rapid

change in time and era we have to cope with it. During this era I got an

opportunity of getting practical knowledge about the Banking system in Pakistan.

So to uench the thirst of practical e!posure and for getting the basic knowledge

about Bank I "oined #B$ Preedy %ate Bannu. During si! week in #B$ I gather all

necessary information about #B$.

&'orts have been made to compile this report in such a way that activates its

salient features not only for students but also for the layman. I have divided this

report into di'erent (hapters.


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)irst (hapter is about introduction *) #B$. Second (hapter is about %eneral

Banking Department gives us description about how to open an account, how to

deposit and clearing. +hird (hapter discusses the procedure of customer dealing

and satisfaction fourth (hapter is about the branch where I worked and watch

di'erent function which I learned in #B$ Preedy %ate Bannu.

Fifth ha)ter is a0out the )rocedure of *ettin* different ty)e of loans and advances, Si&th ha)ter is

*ust of (no'led*e ac%uired 0y me, ha)ter seven is a0out S:OT ANA#YSIS of "B#, ha)ter Ei*ht

tells a0out my (no'led*e 0ecause here I *ave different ty)e of Recommendation to different )ro0lems,

At last I must say that this te&t is desi*ned to stimulate the curiosity a0out mana*ement )ractices of

"ABIB BAN/ #td of ;a(istan, And to raise reader2s consciousness a0out the 0an(in* system 'or(in*

in ;a(istan and out side the ;a(istan,

T*43' C"$'"$

ha)ter !escri)tion ;a*e


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!E!IATION


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Account O)enin* Form > Si*nature ard


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5.5 MEANING OF BANK:

The 'ord 0an(G has 0een derived from the French 'ord 0an%ueG or 0ancus 'hich means 0ench1 office

or institution for the (ee)in*1 lendin* and e&chan*in* of money, Some authorities have the o)inion that

Ban(G is derived from the $ermenG 'ord 0ac( 'hich to the meanin* of 9oint stoc( fundG, The 0an(

is a financial institution that 0orro's money from one )arty and lends to the other )arty -$overnment1

individual1 0usiness. and the difference 0et'een 0orro'in* and lendin* rate of )rofitHInterest for the

0an(, Ban( 0orro's and lends money on interest 0asis, Ban(s are classified accordin* to their s)here of

activity the main ty)es of 0an(s are as under,

• ommercial 0an(

• Industrial 0an(s,

• A*ricultural 0an(s,

• Savin* 0an(s,

• E&chan*e 0an(s,

• entral 0an(s,

• oo)erative 0an(s

5.5.5 COMMERCIAL BANK:

ommercial is en*a*ed in )erformin* the routine duties of 0an(in* 0usiness, Such 0an( collects the

money from the )eo)le -as 0orro'in*. and e&tends the same money as a loan for develo)ment )ur)oses,

ommercial 0an( )lays a vital role in the economic develo)ment of a country 0y )erformin* the variety

of function as *iven 0elo'J

?, Acce)tin* of de)osits -urrent1 savin* and fi&ed account.,

@, 3a(in* loans and advances -overdraft1 cash credit1 discountin* 0ill.,

"ABIB BAN/ #I3ITE!

8, A*ency services to customers -ollection of che%ues1 dividends1 electricity1 'ater and *as 0ills1

and sale of securities1 and acts as a trustee,

, $eneral utility services -Forei*n 0usiness1 Issue traveler che%ues1


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)rovidin* trade information.,

5.6 HISTORICAL DEVELOPMENT OF BANK:

"istory of 0an( is very old the history of 0an( is traced to as early as @ B,, The )riest in $reece

used to (ee) money and valua0le of the )eo)le in tem)les, Its ori*in is also traced to early *oldsmiths,

They used to (ee) stron* safe1 for storin* the money and other valua0le of the )eo)le, ;eo)le 'ith

sur)lus money de)osited 'ith them, The first sta*e in the develo)ment of 0an(in* 'as the acce)tance of

de)osits from )eo)le,

#ater on *oldsmiths 0e*an to issue recei)ts for the money de)osited 'ith them to settle transactions,

These recei)ts 'ere used in )ayment of de0t and acce)ta0le to all, This 'as the second sta*e to'ards the

develo)ment of 0an(in*,

:hen *oldsmiths reali+ed that they had sur)lus money therefore they intended to lend some )ortion of

money to he nearly traders and merchants 'ho constantly re%uested for loans This 0usiness 'as %uiet

)rofita0le and they instead of char*in* interest from de)ositors 0e*an to *ive interest on the money

de)osited 'ith them to attract more )eo)le this 'as the third sta*e to'ards the develo)ment of 0an(in*,

They also )lanned to allo' the customers to 'ithdra' in e&cess of the amount de)osited to meet the

customer2s needs, This facility is called overdraft and they used to (ee) some )ortion of money for this

)ur)ose, After some time there 'as then started too much confusion in the 0an(in* system and they

'ere not a0le to meet the demands of customers, This failure on the )art of money lender to return

money caused distress

amon* the )eo)le,

To overcome this )ro0lem )eo)le felt that their must 0e a 0an( 'hich control the 0an(in* activities of

different lendin* or*ani+ation, As a result of conference held in ?7 at

"ABIB BAN/ #I3ITE!

Nurem0er*, The decision 'as ta(en in favor of esta0lishin* a 0an( that re*ulates the 0an(in* activities,

The first 0an( 'as found in $eneva in ?76, #ater on many other 0an(s 'ere esta0lished 'ill the same

o09ective,


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:e can conclude that commercial 0an(in* system actually develo)ed in nineteenth century, No' a days

the 0an(in* activities has *reatly increased commercial 0an(s are no' multi serviced or*ani+ations and

)lay an im)ortant role in financial mar(ets and in the economic develo)ment of the country,

5.7 HISTORY AND DEVELOPMENT OF HBL:

The "a0i0 Ban( #td is a leader in ;a(istanKs services industry, An e&tensive net'or( of ?@ domestic

0ranches L the lar*est in ;a(istan and international 0ranches has ena0led "B# to )rovide

com)rehensive services that meet customer needs, This has ensured thrivin* client relationshi)s that

form the 0ac(0one of the Ban(Ks o)eration,

Today1 "B# )lays a central role in ;a(istanKs financial and economic develo)ment, It has come a lon*

'ay from its modest 0e*innin*s in 3um0y on Au*ust @1 ?C? 'hen it commenced o)erations 'ith a

fi&ed ca)ital of @1 ru)ees,

Im)ressed 0y its initial )erformance1 Muaid4e4A+am 3ohammed Ali innah as(ed the Ban( to move its

o)erations to /arachi after the creation of ;a(istan, "B# esta0lished itself in the Muid2s city on Au*ust

61 ?C7 and 0ecame a sym0ol of )ride and )ro*ress for the )eo)le of ;a(istan,

"a0i0 Ban( has 0een a )ioneer in )rovidin* innovative 0an(in* services, These have included the

installation of the first mainframe com)uter in ;a(istan follo'ed 0y the first AT3 and more recently1

internet 0an(in* facilities in almost ?@ domestic 0ranches,

The Ban(Ks to'erin* )resence in ;a(istanKs financial and commercial life has remained unchan*ed over

the decades, The stren*th of its 0rand and ima*e is sym0oli+ed 0y its )rominent "ead Office 0uildin*

that has dominated /arachiKs s(yline for8Years,

"ABIB BAN/ #I3ITE!

As )er "B# 3ana*ement result 'e continue to 0uild on our trac( record and in our %uest for e&cellence

'e strive to meet the needs of 0oth our customers and our em)loyees, At "a0i0 Ban( 'e aim to ensure

customer satisfaction 0y )rovidin* hi*h %uality 0an(in* services, This is made )ossi0le 0y the

)rofessionalism of our em)loyees all of 'hom are

)rovided 'ith the re%uisite trainin* and o))ortunities to ena0le them to reali+e their full )otential,


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5.8 VALUES OF HBL:

I"$'+/%$0:

For us1 inte*rity means a syner*ic a))roach to'ards a0idin* our core values, United 'ith the

force of shared values and inte*rity1 'e form a net'or( of a 'ell4inte*rated team,

M'/%$/*0:

At every level1 from selection to advancement1 'e have desi*ned a consistent system of human

resource )ractices1 0ased on o09ective criteria throu*hout all the layers of the or*ani+ation, :e

are1 therefore1 a0le to achieve a s)ecific level of )erformance at every layer of the or*ani+ation,

T'* !/=:

Our team strives to 0ecome a cohesive and unified force1 to offer you1 the customer1 a level of

service 0eyond your e&)ectations, This force is derived from )artici)ative and collective

endeavors1 a common set of *oals and a s)irit to share the *lory and the stren*th to face failures

to*ether,

C&3$&/' I""*$%":

'e aim to 0e )roactively res)onsive to ne' ideas1 and to res)ect and re'ard the a*ents1 leaders

and creators of chan*e,

"ABIB BAN/ #I3ITE!

5.9 GOALS OF HBL:

?, To mo0ili+e )rivate savin*s and )u0lic funds for divertin* the same into )roductive channels

and ensure their availa0ility, To )romote industrial a*riculture and socioeconomic )rocess

throu*h the active )artici)ation of )rivate and )u0lic sector in the )rovince,


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@, "el) under develo)ed areas and create em)loyment o))ortunities1 es)ecially in the rural areas of

the )rovince, Further1 to *uide and assist the )eo)le of ;a(istan servin* overseas to effectively

and )rofita0ly invest their forei*n savin*s in the )rovince as 'ell as in other )arts of ;a(istan,

8, reate a diversified and sound )ortfolio for utili+ation of idle funds and their investment in the

e&istin* and ne' ventures es)ecially in the )ioneerin* of hi*h4techs a*ro40ased e&)ort oriented

and en*ineerin* )ro9ect to ensure ma&imum returns,

, ;artici)ative and see( the share of the country in the ca)ital mar(et of ;a(istan 0y 'ay of

su0scri)tion throu*h locally )eo)led resources in the leadin* stoc( e&chan*e of the country and

eventually )avin* the 'ay for esta0lishin* a stoc( mar(et in the )rovince,

5. !HEN HBL PREEDY GATE IS ESTABLISHED:

This Branch 'as esta0lished on 3ay ?1 ?C@ to facilitate t'o *iant Business community and inha0itant

of "B# -BANNU. Branch1 0esides )rovidin* series of *eneral 0an(in* to the citi+ens and near0y areas,

urrently it an on4line 0an(,

5.; BASIC FUNCTIONS:

5.;.5: A'>$%"+ 1'>#%$#:

a, urrent account 0, Savin* account c, Fi&ed de)osit account

5.;.6: A1*"%"+ 3*"#:

a, #oans and advances 0, ash credits c, ;rovision of Mar+e4e4"asna

5.;.7: A+'"0 &"$%"#:

• ollection of che%ues

• Transfer of funds from one )lace to another,

"ABIB BAN/ #I3ITE!

• "andlin* of Salaries and ;ensions of federalH)rovincial em)loyees and defense )ersonnel,

• Assistin* to A*riculture

• Act as an a*ent or re)resentative of his customers

• ollection of Ne*otia0le Instruments


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• Issuin* $uarantees and Indemnities

• $rantin* of letter of credit

5.;.8. G'"'/*3 &$%3%$0 #'/%'#:

•

Utility Bills collection

• Sale and encashment of ;ri+e Bonds

• Issue of Travelers he%ues

• Su))lyin* of Trade information

• Act as a referee

• Financin* of Forei*n E&chan*e

• ;re)aration of feasi0ility re)orts for small industrial units

• ollection of fees and money for )eo)le )roceedin* on "a99G )rovidin* )il*rima*e services

"ABIB BAN/ #I3ITE!

ORGANI?ATIONAL STRUCTURE OF HABIB BANK LIMITED

PRESIDENT AND CEO

; MEMBERS OF BOARD OF DIRECTORS


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G.E, IOBG G.E, CPOD G.E, CPCS G.E, RBG G.E, CIBG G.E, ARM G.E, AGA HEAD OF IT

HEAD OF HR HEAD OF FINANCE

SENIOR VICE PRESIDENTS

VICE PRESIDENTS

ASSISTANT VICE PRESIDENTS

GRADE I OFFICERS

GRADE II OFFICERS

GRADE III OFFICERS

CLERICAL STAFF

NON-CLERICAL STAFF

"ABIB BAN/ #I3ITE!

M'4'/# B*/1 D%/'$/#:

$,E $ROU; E=EUTIVE

IOB$ INTERNATIONA# AN! OVERSEAS BAN/IN$ $ROU;

;O! OR;ORATE ;#ANNIN$ AN! OR$ANIATIONA# !EVE#O;3ENT

;S RE!IT ;O#IY AN! O3;ANY SERETARY

RB$ RETAI# BAN/IN$ $ROU;

IB$ OR;ORATE AN! INSTITUTIONA# BAN/IN$ $ROU;


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AR3 ASSETS RE3E!IA# 3ANA$E3ENT

A$A AU!IT AN! $ENERA# INFOR3ATION

"ABIB BAN/ #I3ITE!

"A;TER5@

$ENERA# BAN/IN$ !E;ART3ENT

This de)artment consists of the follo'in* sectionsJ4

@,? Account o)enin* section,

@,@ !e)osit section,

@,8 learin* section,

@, Remittance section,

@, Accounts section,

6.5 ACCOUNT OPENING SECTION:

6.5.5 HO! TO OPEN AN ACCOUNT:

There are certain formalities 'hich are to 0e o0served for o)enin* of a current or savin* account 'ith a

Ban(, These formalities in 0rief are as under ,


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6.5.5.5 FORMAL APPLICATION:

The customer is to fill PAccount O)enin* Form, It is a formal re%uest 0y a

customer to the 0an( to allo' him to have and o)erate the current or savin* account,

6.5.5.6 SPECIMEN SIGNATURE:

:hen the Ban(er is satisfied a0out the inte*rity of the customer1 he a*rees to o)en the account, The

Ban(er o0tains the s)ecimen si*natures of the customer on the si*nature 0oo( or on card,

6.5.5.7 MINIMUM INITIAL DEPOSIT:

In ;a(istan the current account can 0e o)ened 'ith a minimum of Rs, H4 and ;#S Savin* Account

'ith a minimum of Rs ?H4 These amounts are also the minimum 0alances to 0e maintained 0y the

account holders 'ith the Ban(,

"ABIB BAN/ #I3ITE!

6.5.5.8 OPERATING THE ACCOUNT:

:hen an account is o)ened in a Ban(1 the Ban(er *ives to the customer,

i, ;ay in sli) 0oo(,

ii, he%ue Boo( and )ass 0oo( 'ith a vie' to o)erate it,

6.5.5.9 PRECAUTIONS IN PREPARING THE PASS BOOK:

The Ban(er should 0e careful in )re)arin* the )ass 0oo(

"o'ever1 the customer himself should,

i, Send the )ass 0oo( for ma(in* entries and also )eriodically chec( u) them,

ii, "e should also see that the entries are initialed 0y the accountant,

iii, The customer should verify the entries 'ith o'n 0oo(s of account,

iv, In order to safe *uard the secrecy of the account the customer should receive the )ass 0oo( in

closed cover,

N$'J This ;ractice in the )ast,

No'4a4!ays these information can 0e o0tained 0y )eriodic or a re%uest or account,

6.5.6 !ITH-DRA!L:


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:ithdra'al is made on che%ues su))lied 0y the Ban(, A ne' che%ue 0oo( is issued only on recei)ts of

the re%uisition sli) attached to the che%ue 0oo( issued )reviously,

6.5.7 INTEREST:

The current rate of interest allo'ed on de)osit in savin* Ban( account is ascertained at the Ban(, This

rate is su09ect to chan*e, The amount of interest is calculated for each calendar month on the lo'est

0alance at credit of an account 0et'een the close of the ?st day of a month and the end of the month and

only on every com)lete sum of ten ru)ees,

Every account is made u) half yearly to 8th une 8?st !ecem0er1 and the interest calculated as a0ove is

added to the 0alance of each account as on these dates,

"ABIB BAN/ #I3ITE!

6.5.8 TRANSFER OF AN ACCOUNT:

Account can 0e transferred to any other 0ranches of "B#, free of char*e, If a de)ositor 'ants to transfer

his account1 he )resents his )ass 0oo( )ersonally or sends it to Ban( and 'rites an a))lication for the

transfer of an account,

6.5.9 CLOSING OF AN ACCOUNT:

It is done sim)ly on letter or re%uest for closin* the account1 unused che%ue leaves on hand are also

surrendered at the same time,

6.5. SECRECY:

The secrecy of de)ositor2s account is the, Res)onsi0ility of every official

en*a*ed in the Ban( service,

6.5.; TYPES OF BANK ACCOUNT:

6.5.;.5 SAVING ACCOUNT:

Savin* Account is that account in 'hich customer )uts his sur)lus money 'hich he saves from his daily

e&)enditure,

The account can 0e o)erated 0y de)ositin* a minimum cash of Rs, ?H4, Small )ercenta*e of interest

is allo'ed on the 0alance of this account,

6.5.;.6 CURRENT ACCOUNT:


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The current account is that one 'hich the customer dra's his daily che%ues and is normally o)erated 0y

the Business4men, It can 0e o)erated 0y minimum amount of Rs, H4 Any num0er of che%ue can 0e

issued 0y the account holder for 'ithdra'al or for )ayment, No interest is allo'ed on this account,

6.5.;.7 OINT ACCOUNT:

A 9oint account occurs 'hen t'o or more than t'o customers have one

account, The )arties to a 9oint account are considered in la' as they are one )erson,

"ABIB BAN/ #I3ITE!

6.5.;.8 PROFIT AND LOSS SHARING ACCOUNT.

This can 0e o)erated 0y a )erson1 firm or or*ani+ation 0y de)ositin* Rs, ?H4 or a0ove, The holder of

this account 'ill *et )rofit of his amount1 or he 'ill 0ear the loss as the case may 0e, So an individual is

e%ually )artici)ant in )rofit and loss,

The holder of account can 'ithdra' u) to Rs,?1H4 )er month1 in case of hi*her 'ithdra'al1 seven

day )rior notice is necessary1 0ut in )ractice have not seen it, This account is o)erated under interest free

system,

6.5.;.9 FIXED DEPOSIT ACCOUNT.

In this account an amount is de)osited into the Ban( for a fi&ed )eriod of time, The fi&ed )eriod may 0e

three months1 si& months1 one year1 t'o years1 five years and more, The Ban( allo's a hi*her rate of

interest for lar*er )eriod,

At the time of o)eratin* on account the Ban( issues de)osit certificates for the )eriod and amount, The

account holder can 'ithdra' his amount 0efore the s)ecified )eriod1 0ut refundin* the e&cess )rofit )aid

at hi*her rate and the same Ban( 'ill allo' loan a*ainst that certificate, Ban( is lia0le to *ive interest onthis account on maturity date is monthly or %uarterly or si& month,

6.6 DEPOSITS SECTION:

There are t'o ty)es of de)osits i,e, current and savin*, There are different

forms )resent in the section of or de)osits,

i, urrent account form,


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ii Savin* account form,

iii ;rivate or individual form

iv ;rivate firm account form

In the a0ove mentioned forms1 the 0an( ma(es an a*reement 'ith his customers,

"ABIB BAN/ #I3ITE!

6.7 CLEARING SECTION:Every Ban( )erforms the )ayin* and receivin* functions, he%ues are

collected 'hich are dra'n u) to Ban(s for customers, Similarly the che%ues dra'n on different Ban(s

and de)osited 0y Ban(s o'n customers for collection 'ithin the city is (no' as clearin* The functions

of receivin* and )ayin* is mostly done throu*h the clearin* house, A clearin* house can 0e defined as

PAA )lace 'here that re)resentatives of all Ban( *et to*ether to settle the recei)ts and )ayment of

che%ues dra'n on each otherP learin* "ouse )rovides the facility 'hich can hardly 0e dis)ensed 'ith

es)ecially1 in case of crossed che%ues,

There are t'o main ty)es of clearin*,

i Out'ard clearin*

ii In'ard clearin*,

6.7.5 OUT!ARD CLEARING:

It includes those che%ues and other instruments 'hich are sent 0y the Ban( to the Ban(s for )ayment on

0ehalf of its o'n clients, he%ues are sent to clearin* house thorou*h local main 0ranch,

A delivery messa*e from the local main 0ranch comes to every 0ranch at a fi&ed time to )ic( its out'ard

clearin* or out'ard returns as the case may0e,

Out'ard learin* at Branch

a, Account num0er of )ayeeHendorsee is 'ritten on the 0ac( side of the che%ues,

0, The instrument and the )ayin* in sli)s are se)arated,

c, The instruments are sorted I Ban(4'ise and 0ranch 'ise,

d, Schedules are )re)ared,

e, ottin* of all the schedules are ta(en in the clearin* "ouse statement, Amount of the che%ues


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in 'ritten in the P!eliveredP and to )ay column,

"ABIB BAN/ #I3ITE!

f, After 0alancin* the out'ard clearin*1 the )ay in sli)s are released to ,! de)artment,

*, After 0alancin*1 a transfer de0it voucher is )re)ared,

h, The instrument1 schedules are delivered to the messen*er from the main 0ranch,

6.7.6 IN!ARD CLEARING.

The che%ues dra'n are called in'ard clearin* dra'n on "a0i0 Ban( throu*h its re)resentatives, On the

Ban( )resented 0y other Ban(s for )ayment it includes those che%ues and other instruments of ;a(istan

0ranches 'hich other Ban(s )resent at the clearin* house,

In'ard learin* at the !ra'n Branch

a, Num0ers of instruments noted in the schedules are verified immediately on recei)t,

0, The amountKs of all the instruments are 9otted do'n and totaled, If should 0e e%ual to

the amount mentioned in schedule from the local main 0ranch,

c, The amounts are de0arred to the relevant accounts if other'ise in order,

6.7.7 TYPES OF CHEQUES COLLECTED BY CLEARING SECTION:

6.7.7.5 TRANSFER CHEQUES:

These are the che%ues 'hich are collected and )aid 0y same 0ranch of "B# For e&am)le 3r, Ali is a

customer of "B# of ITY 0ranch and dra's a che%ue in favor of 3r, "ussain 'ho is also the customer

of the same 0ranch,

6.7.7.6 TRANSFER DELIVERY CHEQUES:

The che%ues 'hich are collected and )aid 0y t'o different 0ranches of a Ban( situated in the same city,For e&am)le a )erson dra's a che%ue on N,B,;, main 0ranch1 !,I,/han in favor of another )erson 'ho

maintains an account 'ith N,B,;, Ra(h 3andra 0ranch1 !,I,/han,


24/47

"ABIB BAN/ #I3ITE!

6.7.7.7 CLEARING CHEQUES:

:hen the )ayeeHendorse and the dra'er of che%ue maintains account 'ith

different Ban(s1 the collection Ban( in any one of the follo'in* methodsJ4

a, It can collect cash 0y sendin* its re)resentative 'ith the che%ues to each of the )ayin* Ban(s,

It is not so much a))ro)riate,

0, The Ban( maintains an account 'ith the )ayin* Ban(,

c, The che%ues can 0e e&chan*ed 0y re)resentative of the various Ban(s 'ho meet at a fi&edtime and at a fi&ed )lace, This is the most efficient method of collection and )ayin* che%ues,

6.7.8 FUNCTIONS OF CLEARING SECTION IN A BRANCH:

a, To acce)t transfer1 transfer delivery and clearin* che%ues from the customer of the 0ranch and

to arran*e for their collection,

0, To arran*e )ayment of che%ues dra'n on the 0ranch and *ives for collection to any other

0ranch of ",B,#, or any other mem0er or such mem0er of local clearin* house,

c, To collect amounts of che%ues dra'n on mem0ers of the local clearin* house sent for

collection 0y N,B,;, 0ranches not re)resented at the local clearin* house,

6.7.9 PROCEDURE FOR CLEARANCE OF CHEQUE:

The customers are )rovided 'ith the co)es of )ay In4sli)1 'henever the customer 'ants to de)osit any

che%ue1 he fills in the )ay in sli) himself and hands it over the counter alon* 'ith the instrument,

"ABIB BAN/ #I3ITE!


25/47

6.8 REMITTANCE SECTION:

Remittance means transfer of money from one )lace to another )lace, It is of

t'o (inds,

IJ Inland remittance,

IIJ "ome remittance,

6.8.5 INLAND REMITTANCE.

An inland remittance means a transfer of money )aya0le at a certain )lace 'ithin the country, Inland

remittances can 0e classified as underJ4

IJ :ithin locality,

IIJ Out side locality,

6.8.5.5 !ITHIN LOCALITY:

:hen a 0ranch situated in !,I,/han is re%uired to send drafts to any other 0ranch situated in the same

city the )rocess is (no' as 'ithin locality, For e&am)le "B#, 3ain Branch1 !,I,/han sends any draft to

"B#, Ra(h 3andar 0ranch1 !,I,/han,

6.8.5.6 OUTSIDE LOCALITY:

Outside locality is an im)ortant ty)e of inland remittances1 'hich means the transfer of money )aya0le

outside the city, For e&am)le1 "B#, 3ain Branch !,I,/han sends any draft to a Branch situated at

#A"ORE,It is commonly done throu*h the follo'in* meansJ4

!emand !raft -!, !.

DEMAND DRAFT (D.D):

!emand draft is a 'ritten order 0y a 0ranch of a s)ecified Ban(1 dra'n on another 0ranch of the same

Ban( to )ay a certain sum of money only to or to the order of the ;ayee, !emand drafts are )urchased

0y the clients and after recei)t of money Ban( issues and delivers the !,!, to the )urchaser1 'ho himself

sends it to the )ayee, In !,!, the Ban(s

"ABIB BAN/ #I3ITE!


26/47

do not recover )ostal char*es as it is )aya0le 0y the )urchaser, The Ban(1 after deliver of !,!, to the

)urchaser also sends its o'n advice called IBO -Inter Branch redit Order. to the dra'ee 0ranch

mentionin* therein all details of issued draft, No' 0an(er che%ue )aya0le any 'here in ;a(istan,

6.9 ACCOUNT SECTION:

Every Business or*ani+ation deals in money matters, Ban( also deals in money and more over since the

money 0elon* to the de)ositors therefore1 it is of utmost im)ortance to (ee) systematic and correct

record,

Further4more1 the Ban(s are commercial institutions and its main o09ective is to earn )rofit1 therefore1

then record of all incomes and e&)enditures are (e)t correct and systematically,

In ",B,#, the res)onsi0ility for maintainin* necessary accountin* data and to (ee) u) to date records In

a systematic manner has 0een assi*ned to the Accounts !e)artment,

The Branches of Ban( )erform their daily routine 'or( and deal in money that 0elon*s to de)ositors,

"ere account de)artment hold *reat im)ortance in 0an(in*1 0ecause it (ee)s all the accountin* records

)ro)erly,

6.9.5 ACCOUNTS TERMS:

The account de)artment maintains all the accountin* records )ro)erly there

are certain accountin* terms 'hich are defined into the follo'in*,

6.9.5.5 ACCOUNT:

A summary of all de0it and credit transaction )ertainin* to a similar nature or to

an individual or 0ody of )ersons is called an account,

6.9.5.6 VOUCHERS:

:ritten evidence recorded on a )eace of )a)er in res)ect of money transaction is called voucher,

"ABIB BAN/ #I3ITE!

6.9.5.7 GENERAL LEDGER:

3ain led*er is a 0oo(1 'here various accounts of different ty)e are (e)t,

$enerally this 0oo( is in 0ended form containin* several sheets for several accounts,

6.9.5.8 SUBSIDIARY LEDGER:


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:here a main head has *ot different su04head of itJ su0sidiary leader are

maintained, These su0sidiary led*ers are maintained from the main led*er,

6.9.6 BOOKS AND STATIONERY:

The account de)artment uses the follo'in* 0oo(s and stationery

• ash 0oo( cum4*eneral led*er

• Re*ister of vouchers

• Transfer 0oo(

• Receivin* cashier 0oo(

• ;ayin* cashier 0oo(

•Su))lementary sheets

• !ifferent vouchers

6.9.7 FUNCTIONS OF THE ACCOUNT SECTION:

!urin* the course of daily 0usiness of the 0ranch1 a num0er of che%ues are )resented 0y customer for

cash )ayment1 thou*h transfer1 delivery and clearin* che%ues at the counter, Also a num0er of ne'

accounts are o)ened and cash is de)osited 0y the customers, A num0er of ne' vouchers are )assed 0y

the 0ranch 0y de0itin*1 one account and creditin* another account,

So in order to ensure that durin* the day all the transactions have )ro)erly 0een recorded and they are

com)lete in all res)ects and are recorded in )ro)er 0oo(s 0y the 0ranch this recordin* is done on daily

0asis and maintained 0y account section,

The main functions of the account section of a 0ranch are as follo's,

"ABIB BAN/ #I3ITE!

share, !urin* FY4@ "B#2s mana*ement decided to address this issue, "ence forth1 ommercial

Ban(in* 'as created to focus on the 0usiness needs of the middle mar(et customers, On Novem0er ?1

@ ommercial Ban(in* came into 0ein*, At )resent1 ?7 ommercial enters and Su04enters

functionin*1 located at /arachi1 #ahore1 Faisala0ad1 Sial(ot and $u9ran'ala,


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"ABIB BAN/ #I3ITE!

G*3#:

The $oals of settin*4u) ommercial Ban(in* 'as t'o4foldJ

• First to sto) the erosion of mar(et share in the middle mar(et

• Second1 to re*ain the lost mar(et share

The strate*y ado)ted to achieve the a0ove o09ective 'as to )osition ommercial Ban(in* se*ment as

the Trade Finance Ban(G for its customers, The rationale 0ehind this strate*ic decision 'as to ca)itali+e

on the e&istin* mar(etin* (no'led*e > stron* contacts 'ith the middle mar(et customers1 'ho 'ere

loyal to the "B# 0rand,

The )roduct line of ommercial 0an(in* includesJ

7.5.5.5 FUND BASED FACILITIES:

• Runnin* Finance for :or(in* a)ital re%uirements -RF.

• Finance A*ainst ;ac(in* redit for ;re4shi)ment -FA;.

• Finance A*ainst Forei*n Bills for ;ost4shi)ment -FAFB.

• Finance A*ainst Im)orted 3erchandise -FI3.

• Finance A*ainst Trust Recei)t -FATR.

• !emand FinanceJ 3edium Term #oans -!F.

7.5.5.6 NON-FUND BASED FACILITIES:

• #etter of redit -#.

-a. !A -Unseen. -0. !; -Si*ht.

• #etter of $uarantee -#$.

Successful achievement of the strate*y entailed addressin* the follo'in* (ey issuesJ

• !evelo)in* a sales culture so that 0usiness 'as a**ressively sou*ht

• Im)rovement of ounter Service

• Reducin* the turnaround time on credit decisions


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"ABIB BAN/ #I3ITE!

• Trainin* of staff to enhance credit and sales s(ills

Follo'in* initiatives 'ere ta(en to address the a0ove issuesJ

Fictionali+ation of 0ranches into t'o (ey areasJ

• 3ar(etin* and

• O)erations

Im)lementation of a standard or*ani+ation at enters > su04centers 'here 0y there 'ere t'o (ey areas'ithin o)erationsJ

• Trade

• ounter Service i,e, ash > Remittances

• !e4layerin* of the redit )rocessin* to ensure %uic( turnaround on credit decisions

• Settin* u) of Relationshi) 3ana*ement teams at all ommercial Ban(in* enters to focus on

)rocurement of 0usiness

• Settin*4u) of redit Administration !e)artments at all enters for im)roved Ris( 3ana*ement

• Trainin* of staff in follo'in* (ey areasJ

-a. redit -0. Trade Services Q om)uter literacy

I>*$ $2' #$'>#

The decision to setu) ommercial Ban(in* has 0een fruitful, This is evident from the follo'in* resultsJ

• Enhanced customer interaction 0y the 0ranch mana*ement has no' 0ecome )ossi0le after

se*re*ation of mar(etin* and o)erations at the 0ranch level,


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"ABIB BAN/ #I3ITE!

• !ecentrali+ation of redit Authority and streamlinin* of the )rocesses have resulted in reduced

turn around time, urrently decision ma(in* in this area is )erha)s most efficient in the mar(et

)lace,

• Our strate*y has allo'ed us to achieve our first o09ective the trend of

erosion in our mar(et share has 0een reversed, :e no' 'ould 0e

loo(in* at re*ainin* our mar(et share,ommercial Ban(in* is ma(in* head'ay 'ith im)rovement not only in terms of the 0usiness fi*ures 0ut

also in its am0iance, Renovation of is 0ein* carried out in order to *ive a )rofessional loo( to all the

ommercial Ban(in* enters,

"ABIB BAN/ #I3ITE!


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7.5.6 CORPORATE BANKING:

or)orate Ban(in* $rou) serves lar*e institutional and cor)orate customers in ;a(istan throu*h ?

dedicated cor)orate 0an(in* centers in all ma9or cities, The IB$ )ortfolio consists of most of the

lar*est names in the mar(et and re)resents all ma9or industry *rou)s1 includin* te&tiles1 lar*e scale

manufacturin*1 telecommunications1 )etrochemicals1 fertili+er1 airlines1 trans)ortation and services, It

offers its clients a com)rehensive ran*e of 0an(in* services via a one4'indo' interface throu*h

desi*nated relationshi) mana*er, or)orate Ban(in* is reco*ni+ed as a mar(et leader due to its uni%ue

a0ility to meet the entire s)ectrum of a customer2s 0an(in* re%uirements, "B#2s lar*e e%uity 0ase allo's

to meet the financin* needs of the lar*est cor)orate and it2s lar*e net'or( and s)eciali+ed teams are a0le

to deliver and )rovide customi+ed solutions, The $rou) has increasin*ly focused on )rovidin* value

addition services to the customers1 e,*, )ayroll and cash mana*ement services, The Ban( has 0ecome a

leader in cash mana*ement services 0y levera*in* its lar*e domestic 0ranch net'or( and no' )rovides

such services to a ran*e of lar*e and medium si+ed cor)orations1 includin* the ;a(istani units of some

Fortune ,com)anies,

The $rou) also strives to stay ahead of the mar(et 0y antici)atin* customer

re%uirements, :e stron*ly 0elieve in relationshi) 0an(in*1 'hich is essential for us to remain res)onsive

to our customers, :e also remain focused on im)rovin* )roductivity and ensurin* the %uality of our ris(

mana*ement,

"ABIB BAN/ #I3ITE!

7.5.7 INVESTMENT BANKING:

An Investment Ban(in* Unit has 0een esta0lished 'hich focuses on loan syndications1 develo)ment of

local currency cor)orate 0onds -TFs. and advisory services,


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in association 'ith ma9or su))liers of consumer )roducts, These have 0een 'ell received and volumes

have 0een 0uildin* u) steadily, It is the

intention of "B# to 0e a leader in consumer financin*, ;lans are also

under'ay to develo) mort*a*e financin* for the housin* sector,

A*riculture is the most im)ortant contri0utor to ;a(istan2s economy, "B#1 'hich has 0een a leader in

a*riculture financin*1 )lans to increase further its credit to this sector 'ith a )articular focus on

)rovidin* a 'ider ran*e of )roducts to small and medium si+e farmers, In this re*ard1 to )rovide

fle&i0ility1 the "aryali scheme for farmers 'as

introduced 'hich is a 84year revolvin* facility rather than the traditional short term seasonal financin*,

"B#2s s)eciali+ed a*ricultural finance de)artment hel)s farmers in moderni+in* their farmin*

techni%ues, The $overnment has also )rovided a re*ulatory frame'or( to encoura*e cor)orate farmin*

and as this develo)s the )artici)ation in this sector, :ill *ro' even further, :hile "B# continue to

develo) its )roducts1 'e reco*ni+e that %uality of customer service 'ill 0ecome an even *reater

differentiatin* factor in the mar(et, "B# have ta(en a num0er of initiatives in this area investin* in

technolo*y1 trainin* and u)*radin* of its 0ranches, E&tended 0an(in* hours and 0etter facilities for

utility 0ill )ayments have 0een made availa0le,

"ABIB BAN/ #I3ITE!

In our Retail net'or(1 'e have an unmatched distri0ution net'or(1 'hich )rovides us many

o))ortunities for *ro'th1 and 'e )lan to use this to soon )rovide additional services1 includin* 'ealth

mana*ement services,

7.5.9 ISLAMIC BANKING:

The Ban( of /hy0er has ta(en the first ste) to'ards Islamic 0an(in* and for this )ur)ose an Islamic

0an(in* division has 0een esta0lished to com)lete the necessary re*ulatory and o)erational formalities

there0y )avin* the 'ay for commencement of Islamic Ban(in* in its s)eciali+ed 0ranches,

7.6 THE MISSION OF HBL:


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To 0e reco*ni+ed as the leadin* financial institution of ;a(istan and a dynamic international 0an( in the

emer*in* mar(ets1 )rovidin* our customers 'ith a )remium set of innovative )roducts and services1 and

*rantin* su)erior value to our sta(eholders L shareholders1 customers and em)loyees,

"ABIB BAN/ #I3ITE!

"A;TER 5

FUNTIONIN$ OF "B# 'here I did my internshi)J

HBL 4*"= %# &"$%"%"+ &"1'/ 33@%"+ #'$ &>:

8.5 BANK DEPOSITS:!e)osits are to the 0an( as a 0ac(0one is to the 0ody of a man, They are the life0lood of the 0an(,

"ABIB BAN/ #I3ITE! and all other commercial 0an(s )erform the function of de)osit acce)tin*

from the *eneral )u0lic 0y offerin* suita0le rates of interest on them1 or on sim)ly a )romise to re)ay on

demand,

8.6 OPENING OF ACCOUNT BY AN INDIVIDUAL:


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After enterin* into 0an( )remises the )erson *oes throu*h the follo'in* ste)s for o)enin* an account in

the 0an( and for 0ecomin* a 0an( customer,

8.6.5 AN INTRODUCTION:

The first im)ortant ste) to ta(e )lace in 0an( is to *et satisfactory introduction of the )erson1 'ho 'ants

to 0ecome 0an(2s customer 0y )uttin* various %uestions,

In "B# -;reedy $ate Branch. the 0ranch mana*er ta(es *reat care of this ste) and *ets introduced 'ith

the )erson himself, "is main intention is to determine the )ros)ective customer2s inte*rity1

res)ecta0ility1 occu)ation1 and nature of 0usiness he is doin* at the time of o)enin* an account,

8.6.6 ACCOUNT OPENING FORM SPECIMEN SIGNATURE CARD:

No' the )erson is )rovided 'ith an a))lication form (no'n as Account O)enin* Form,

This form containsJ

i, Title of account

ii, Address

iii, I,!,ard num0er

iv, Tele)hone No, -Office and Residence.

"ABIB BAN/ #I3ITE!

v, Introductory reference -all a0ove mentioned )articulars of introducer .

vi, Si*natures of the a))licant

vii, Amount de)osited

In addition to this the customer is re%uired to attach a co)y of National Identity ard 'ith the form,

S>'%'" #%+"*$&/' */1:

S)ecimen of si*natures 'ill 0e o0tained from de)ositor at the time of o)enin* his account, A s)ecially

desi*ned card is used for this )ur)ose the card must 0e countersi*ned 0y an official of the 0an( not

0elo' the ran( of an officer,

8.6.7 ACCOUNT OPENING REGISTER:

No' the name of the customer 'ill 0e recorded in account o)enin* re*ister1 and from here the account

no, of the customer 'ill 0e 'ritten on -to) most corners. account o)enin* form and on s)ecimen

si*nature card,

8.6.8 ISSUANCE OF CHEQUE BOOK:


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The che%ue 0oo( 'ill ordinarily 0e issued to all customers desirin* to have dra'in* facility, he%ue

0oo( consists of ?1 @1 1 or ? )a*es de)endin* u)on customer re%uirement, ustomer can

'ithdra' money 0y si*nin* a che%ue and 'ritin* the amount he 'ants to 'ithdra' from his account,

A s)ecial che%ue 0oo( re*ister is (e)t to enter the name of the )erson havin* che%ue 0oo(,

8.6.9 RECORDING IN TO GENERAL LEDGER:

The concerned officer records the name and amount de)osited 'ith the

0an( in to *eneral led*er, Se)arate led*ers are maintained for different

ty)es of accounts e,*,

i, urrent Account #ed*er

ii, Savin* Account #ed*er

"ABIB BAN/ #I3ITE!

iii, Fi&ed !e)osit Account #ed*er

iv, all !e)osit Account #ed*er

As and 'hen customer de)osits the money1 amount is credited the *eneral led*er and the 'ithdra'al is

follo'ed 0y a de0it entry in the led*er,

N$': This 3ethod is )ast, No'4a4!ays all )ostin* of voucher is due throu*h com)uter,

8.7 TYPES OF ACCOUNTS MAINTED BY HABIB BANK LIMITED (BANNU) PARADI GATE

BRANCH:

The follo'in* ty)es of accounts are maintained in "B#J

?, urrent accounts,

@, ;rofit and loss sharin* account,

8, Fi&ed de)osit account,

, Freedom account,

8.7.5 CURRENT ACCOUNTS:

A 0an( account 'hich may 0e used to lod*e )ayments or to 'ithdra' money on demand, Its main

)ur)ose is to serve the 0usinessman, Form num0er F48 is )rovided to the )erson to o)en the account


37/47

for 0usiness man, It is a statutory re%uirement to maintain current account, Its main features areJ

?, 3inimum amount for o)enin* this account is Rs,

@, Any )erson can o)en the account 'ith the 0an(

8, Accordin* to inter 0an(s a*reement interest is not )aid on current account,

, Ban( act as custodian of money

, ustomer can 'ithdra' money throu*h che%ue su))lied 0y 0an(,

"ABIB BAN/ #I3ITE!

8.7.6 SAVINGPL SHARING ACCOUNTS:

To )rovide interest free 0an(in* facilities in ;a(istan1 this ty)e of account 'as introduced in anuary

?C7@,The main features of this account areJ

?, Instead of havin* fi&ed return in the form of interest the de)osited money 'ill 0e shared in

)rofit and loss of the 0an(,

@, One can o)en the account 0y de)ositin* minimum Rs,?

8, To 'ithdra' a lar*e amount a notice of 6 days to the 0an( is necessary 0ut )ractice not seen,

, There is not any (ind of interest is )rovided on money de)osited,

, Rate of )rofit is declared at the close of each half4year,

8.7.7 TIMEFIXED DEPOSIT ACCOUNT:

This account is the ma9or source of funds for the 0an(s, This account is 0est for )eo)le 'ho have sur)lus

money and don2t need such funds in nearer future, The money is de)osited for a fi&ed )eriod of time,

3ain features of this account areJ

?, Fi&ed amount de)osited for fi&ed )eriod,

@, Amount of )rofit can 0e o0tained after each moth or %uarter1 si& months,

8, "i*her 'ill 0e the time )eriod1 hi*her 'ill 0e the rate of )rofit,

, A recei)t is used for the amount de)osited called fi&ed de)osit recei)t,

, ;eriod of de)osit can vary from 8 months to ? years,

The amount can 0e 'ithdra'n 0efore maturity after surrenderin* interest,


38/47

"ABIB BAN/ #I3ITE!

"A;TER 5

#OANS > A!VANES

I" HBL $2' 33@%"+ *%3%$%'# 3'"1%"+ */' **%3*43' $ %$# $'/#:

Finance for :or(in* a)italJ

Trade Finance FacilitiesJ

Finance for a)ital InvestmentJ

$eneral ;roductsJOther ;roducts and servicesJ

Investment Assistant -IA.J

9.5 FINANCE FOR !ORKING CAPITAL:

The ommercial Ban(in* at "a0i0 Ban( #imited focuses on small and medium si+ed 0usinesses, This

se*ment is the traditional stron*hold of "B# 'ith )roven e&)ertise and mar(et (no'led*e,

Units dedicated to service small and medium si+ed 0usiness are located at /arachi1 #ahore1 Faisala0ad1

$u9ran'ala and Sial(ot, Each unit has Relationshi) mana*ers 'ith in4de)th (no'led*e of the mar(et,

These relationshi) mana*ers assist e&istin* and )otential customers 'ith their financial needs,

9.6 TRADE FINANCE FACILITIES:

9.6.5 EXPORT FINANCE:

• Forei*n urrency Im)ort Finance a*ainst ;ac(in* reditJ for )re4 shi)ment re%uirements

-FA;.


39/47

• Finance a*ainst Forei*n BillsJ for )ost4shi)ment re%uirements -FAFB.

• Forei*n urrency E&)ort FinanceJ !ollar financin* for )re > )ost

shi)ment re%uirements -FEF.

"ABIB BAN/ #I3ITE!

9.6.6 IMPORT FINANCE:

•

Finance a*ainst Trust Recei)tJ for financin* im)orted *oods -FATR.

• Finance a*ainst Im)orted 3erchandiseJ for financin* im)orted *oods -FI3.

• FinanceJ !ollar financin* for im)ort re%uirements -FIF.

• #etter of reditJ for im)ortin* inventory > ca)ital *oods -#.

9.7 FINANCE FOR CAPITAL INVESTMENT:

• !emand FinanceJ medium term loans for ca)ital e&)enditure -!F.

• #easin*J for financin* ca)ital e&)enditure,

9.8 GENERAL PRODUCT:

• #etter of $uarantee -#$.

• Bid > ;erformance Bonds

• 3o0ili+ation Advance $uarantees

9.9 OTHER PRODUCT AND SERVICES:

• ommercial !ay to day 0an(in*J There are a 'ide ran*e of accounts and services to hel) you

mana*e your money, :e offerJ

• urrent AccountsJ Non4interest 0earin* account for your daily 0an(in* needs,

• ash 3ana*ement ServicesJ $ivin* you the convenience of cash handlin*,


40/47

• "a0i0 Ban( Easy AccessJ Real time online 0an(in*G at commercial centers for customers

online transferHde)osit of )ayments,

• "B# E4Ban(in*J "a0i0 Ban( #imited has launched a )roduct "B# e40an(G 'hich allo's @

hour access to accounts throu*h internet 0an(in*1 and ; 0an(in*,

"ABIB BAN/ #I3ITE!

• AT3J No'1 addin* more convenience1 the customers can also use the AT3s of other )artner

0an(s,

9. INVESTMENT ASSISTANT (IA):

Investment Assistant has 0een created s)ecifically to assist e&)atriate ;a(istanis 'ho are interested in

investin* in ;a(istan, Usin* ommercial Ban(in* as a )latform1 'e 'ill 0e )rovidin* information of

le*islative1 re*ulatory and financial nature to )ros)ective investors to hel) them setu) their 0usinesses in

;a(istan,


41/47


42/47

held,

3r,IRFAN sahi0 'as the in char*e of this section ,"e *ave me a lot of attention,

"ABIB BAN/ #I3ITE!

N'@ M'$21:

No'4a4!ays this activity done throu*h NIFT,

.5.7 REMITANCES SECTION:

I also 'or(ed in remittances section ,in remittances section I learned ho' to transform the money from

one )lace to another )lace, In this section I learned1

?J !E3AN! !RAFT,

@J ON #INE TRANSFOR,

On each transaction there is commission char*ed to the sender,

The commission of -!,!. from ? to ?lac( is Rs ?D,

The char*es are on the -!,!. u) to ?lac( is calculated in )ercenta*e,

The commission of -O,T. is Rs 8,

"ABIB BAN/ #I3ITE!


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"A;TER 5 6

S:OT ANA#YSIS

The acronym S:OT stands for a firm2s internal Stren*ths and :ea(nesses and its e&ternal

O))ortunities and Threats, The )ur)ose of such analysis is to 0uild on com)any2s stren*ths in order to

e&)loit o))ortunities and counter threats and to correct com)any2s 'ea(nesses, S:OT analysis is 0ased

on the assum)tion that if mana*ers carefully revie' such stren*ths1 'ea(nesses1 o))ortunities1 and

threats1 a useful strate*y for ensurin* or*ani+ational success 'ill 0ecome evident,

Stren*ths and 'ea(nesses ty)ically relate to the internal environment of an or*ani+ation1 'hereas

o))ortunities and threats are 0rou*ht a0out 0y the e&ternal environment of an or*ani+ation, In the

follo'in* section1 0oth internal and e&ternal analyses of "ABIB BAN/ I3ITE! are outlinedJ

;.5 INTERNAL ANALYSIS:

Internal analysis of a firm is the analysis of its stren*ths and 'ea(nesses, Unless a firm has internal

stren*ths and controls its 'ea(nesses1 it cannot ta(e advanta*e of o))ortunities and esca)e threats 'hich

the e&ternal environment )resents, Follo'in* are the main stren*th and 'ea(nesses of "B#,

;.6 STRENGTH:

Stren*th can 0e defined as an area 'here a com)any is 0est at doin* somethin* or a feature that )uts the

com)any at an advanta*e in com)arison to its com)etitors, "B# en9oys the follo'in* stren*thsJ

?, "ABIB BAN/ is a 'ell esta0lished 0an( en9oyin* lon* history of over D years of e&)erience

and )rofita0le o)eration,

@, "B# 'as the first )rivati+ed 0an( that *ives it an ed*e over other nationali+ed 0an(s as it can

develo) any strate*y consistent 'ith the demand of mar(et and free from any )olitical or

0ureaucratic influence,

8, "B# is the lar*est )rivate 0an( in ;a(istan no' and )eo)le trust is very hi*h,

, It has the lar*est 0ranch net'or( amon* )rivate 0an(s of ;a(istan,

"ABIB BAN/ #I3ITE!


44/47

, "B# is the mar(et leader in introduction of e40an(in* and it has the lar*est,

D, "B# 'as rated the 0est domestic 0an( for t'o consecutive years of @ and @? 0y Euro

money1 a leadin* international )u0lication,

6, "B# has for*ed strate*ic alliances 'ith international 0an(s for e&)andin* its net'or( further1

0oth locally and internationally,

7, "B# has the a0ility to 0rin* innovative )roducts and services li(e )ersonali+ed service1

electronic funds Transfer1 so)histicated financial )roducts such as electronic 0an(in*1 auto4teller

machines and evenin* 0an(in*,

C, "B# has 0een very effective in controllin* costs as it successfully restructured itself after its

)rivati+ation, !urin* this )rocess more than ?1D em)loyees 'ere relieved under a *oldenhandsha(e scheme and ?? 0ranches 'ere closed,

?, E&cellent 0ranches a))earance *ives an ed*e to "B# over other 0an(s,The 0ranches are 'ell

furnished even in less develo)ed areas 'here other 0an(s2 0ranches *ive a )oor vie',

;.7 !EAKNESSES:

A 'ea(ness is defined as an area in an or*ani+ation 'here the or*ani+ation is not as *ood at doin*

somethin* as its com)etitors or a thin* 'hich an or*ani+ation lac(s thus )uttin* the or*ani+ation at

disadvanta*e in com)arison to its com)etitors, Based on the a0ove definition1 "B# has the follo'in*

'ea(nesses,

?, 3ission of "B# is not 'ell defined,

@, Thou*h "B# is second lar*est 0an( in ;a(istan1 yet the fact remains that it is not mar(et leader

as NB;, Its total assets are al'ays less than NB; total assets,

8, No' as it is a )rivati+e 0an( that is 'hy $OVERNA3ENT su))ort to "B# decreased as it 'as

in )ast,

"ABIB BAN/ #I3ITE!

, Em)loyees at 0ranch level are not )ro)erly motivated to 'or( 0y heart, They ta(e the all routine

activities as a 0orin* 9o0,


45/47

, 3ost of the em)loyees lac( mana*erial trainin* as they are not )ro)erly educated, !ue to

seniority1 they have moved u) on the hierarchy line to $rade4 I1 II or III )ositions havin* hardly

0achelor de*rees, This ty)e of senior staff cannot a))ly the modern and innovative techni%ues of

mana*ement in decision ma(in* almost com)uter (no'led*e,

;.8 EXTERNAL ANALYSIS:

An or*ani+ation has to monitor its environment constantly to (ee) u) 'ith ne' develo)ments and

chan*es in the environment, A chan*e in the e&ternal environment may 0e either an o))ortunity or

threat, In either case1 the or*ani+ation has to )ro)erly use it stren*ths to avail the o))ortunities and avoid

or minimi+e the ne*ative effects of threats,

Follo'in* are the main o))ortunities and threats of "B#,

;.8.5 OPPORTUNITIES:

An o))ortunity can 0e defined as a chan*e in e&ternal environment 'hich if

)ro)erly e&)loited 'ith the or*ani+ational stren*ths 'ill result in enhanced

sales1 mar(et share1 or income, Usin* its stren*ths1 "B# can avail the

follo'in* o))ortunitiesJ

?, It can introduce de0it card system or may convert the e&istin* AT3 cards into a com)lete de0it

card,

@, Ne' )roducts li(e )ersonal loans1 mort*a*e and auto leasin* and cash mana*ement 'hich

diversify credit ris( and add to revenue *eneratin* )roducts1 are currently )rovided in 0i* citiesli(e #ahore1 Islama0ad1 /arachi1 and Ra'al)indi1 these )roducts may 0e tested for success in

other small areas of ;A/ISTAN in different )rovinces,

"ABIB BAN/ #I3ITE!

8, As all around the 'orld remittances of money are strictly monitored so as the money remitted

may not fall in hands of so4called terrorists, For that all conventional money launderin* throu*h

"undies have 0een sto))ed1 there is an o))ortunity for "B# to e&tend its 0ranch net'or( to

various countries em)hasi+in* mainly on introducin* electronic fund transfer facilities,

;.8.6 THREATS:


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Threat can 0e defined as a chan*e in e&ternal environment 'hich if not met 'ith )ro)er strate*ies 'ill

result in loss of revenues1 mar(et share1 or income, In the conte&t of "B#2s e&ternal environment1

the follo'in* )otential threats e&istJ

?, The fre%uent reduction on D4month and ?@4month Treasury Bills discount rates 0y SB; may

create )ressure on the 0an(s )rofita0ility,

@, The lo' discount rates are also ne*atively influencin* the advances rates 'hich may affect the

0an(s )rofits from the other side,

8, Forei*n 0an(s o)eratin* in ;a(istan are )layin* a si*nificant role 0y incor)oratin* ne'

technolo*ies and )rovidin* 0etter %uality services thus creatin* a threat to the local 0an(s

es)ecially to "B# 'hich tries to develo) core com)etence in electronic 0ased )roducts, ;olicies

of )rivati+ation1 forei*n e&chan*e reforms1 and structural ad9ustments have increased the inflo'

of forei*n resources throu*h direct and )ortfolio investment, In trade financin*1 the role of

forei*n 0an(s is even more si*nificant1 as a))ro&imately 8 )ercent of the total trade of the

country is transacted throu*h them, 3a9or )ortion of the trade financin* is for im)orters to

esta0lish letters of credit,

"ABIB BAN/ #I3ITE!

"E;TER5 7

;ROB#E3S I SOU$"T

!urin* my Si& 'ee(s stay in -"B# ;reedy $ate Branch Bannu. I found various )ro0lems1 'hich I

thin(1 so should 0e resolved for the 0etter functionin* of the Ban(, Some of these )ro0lems are of such


47/47

nature that their solution 'ill hel) the Ban( and its 'or(ers in coo)in* in this com)le& 'orld of

*lo0ali+ation,

Final Report on HBL Bank

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Transcript of Final Report on HBL Bank