An Internship Report onHabib Bank Limited

Submitted By:M.Sajid IqbalRoll No. 115MBA (G1) 4th SemesterSession (2011-2015)Submitted To:MR. Nazik Hussain(Incharge Internship & Placement)Department of management science

AcknowledgementAll the praises and gratitudes are for almighty Allah, who is entire source of all knowledge and wisdom endowed to mankind. After Allah unbound praises and thanks are also for his dearest prophet, Hazrat Muhammad (PBUH), who is forever a torch of guidance and knowledge for humanity as a whole.I would dedicate my this effort to my beloved parents for their undying love and care with unconditional support throughout my life. Without their guidance, I wouldnt be able to achieve anything in my life. I would like to thank, especially to my university management who arranged internship and provided a chance to gain practical knowledge and also for their timely guidelines through email or MDBs. I highly thank the staff members of Habib bank Limited, Model Town A Branch (1655) Bahawalpur, who really cooperated with me and provided me complete guidance and give me their precious time. They tell me everything related to banking. I am really impressed with their hospitality. They behave like a colleague and always invited me on their parties and gatherings. Their sympathetic behavior is printed deep on the pages of my memory.

Dedicate to

I would dedicate my this effort to my beloved parents for their undying love and care with unconditional support throughout my life. Without their guidance, I wouldnt be able to achieve anything in my life.My Parents

Table of ContentsThe Bank 07

Executive Summary 08

Introduction 11

Historical Background of Habib Bank Limited 15

Vision Statement of HBL 18

Mission Statement of HBL 18

Values of HBL 19

Products and Services Offered by HBL 20

SWOT Analysis 22

Human Recourse Management 24

Objectives of Habib Bank Limited 27

Pest Analysis and Environmental Scanning 28

Management 31

Competitors of Habib Bank Limited 23

Departments of Habib Bank Limited 34

Deposit Department 35

Account Opening Department 37

Remittance Department 39

Advance Department 43

Marketing 47

Clearing Department 49

Foreign Exchange Department 50

Computer Department 51

Imports and Exports Department 53

Sale Operation in HBL 56

Financial Highlights 58

Financial Performance 60

Value of Investments in Employee Retirement Benefits Fund 62

Domestic Network 63

Suggestions & Recommendations 64

Conclusion 66

The BankThe term BANK is derived from itsItalianorigin BANKO which means Bench that is where people used to meet and solve their financial matters. The term bank is being used for a long time yet it has no precise definition. The basic reason is that the banks perform not just one but many types of functions. Originally the banks were supposed to make short term loans to the traders only. The banks now not only make short term loans to the formers, traders, industrialist etc. But also invest in a wide variety of long term earning assets. The commercial banks also undertake and execute trust, deal in stock, shares and debentures, issue guaranties and indemnities underwrite and sell new securities, and deal in foreign exchange etc.However some of the definitions of bank from different authors are as follows.According to Dr. HartBanker or bank is a person or company carrying on business of receiving money and collecting drafts for the customers subject to the obligation of honoring cheques drawn upon them from time to time by customers to the extends of the amounts available on their currents accountsIn the words of G W GilbertA banker is a dealer in capital or more properly a dealer in money. He is an intermediate party between the borrower and lender. He borrows one party and lends to the another

Executive SummeryEvery student of Master Administration at Islamia University of Bahawalpur has an essential requirement to do six week internship in any of the well reputed organization. The purpose of the Report in hand is together relevant information to compile internship report on Habib Bank Limited. To observe, analyze and interpret the relevant data competently and in a useful manner. To work practically in an organization. To develop interpersonal communication. Habib Bank Group is a leader in Pakistans services industry with an extensive and vibrant network of 1498 domestic branches the largest in Pakistan and 55 international branches to meet customer needs. Perhaps the HABIB BANK LIMITED was established in 1941 at Bombay. But its history starts in 1841 when a young boy, named Ismail Habib reached Bombay for a job search. After some time he got the job with a dealer in utensils and non ferrous metals. Ismail Habib was very keen and intelligent and became partner of his boss. Later on he was elected as a president of the market. For many years, he continued to expand his business and was engaged in private banking. So HBL has come a long way from its modest beginning in Bombay in 25 august, 1941 when it commenced business with a fixed capital of 25000 rupees.Impressed by its initial performance, Quaid-e-Azam Muhammad Ali Jinah asked the bank to move its operation to Karachi after the partition, HBL establish itself in the Quaids city in 1943 and became a symbol of prestige and progress for the people of Pakistan. During the early days of newly born state, the government of Pakistan was facing the great problem of fund shortage. HBL, despite of experiencing shortage of funds in its initial time, Put its

survival at stake by helping the government with funds as HBL had established its operations in Pakistan in 1947 and moved its head office to Karachi. HBLs first international branch was established in Colombo, Sri Lanka in 1951 and Habib Bank Plaza was built in 1972 to commemorate the banks 25th Anniversary. HBL now has the largest Corporate Banking portfolio in the country with an active Investment Banking arm. Now there are 1773+ braches inside the Pakistan and about 70 Branches overseasproviding financial services to its worthy customers. It encompasses product offerings and services in corporate banking to Retail Banking and, in recent years, Consumer Banking as well. Satisfying customers are the only way to stay competitive in today's Market Place. The balancing between what customers wants and what the HBL can provide must be optimized in order to maximize HBLs long-term profits. HBL is expanding its presence in principal international markets including the UK, UAE, South and Central Asia, Africa and the Far East. With a domestic market share of over 40%, HBL was nationalized in 1974 and it continued to dominate the commercial banking sector with a major market share in inward foreign remittances (55%) and loans to small industries, traders and farmers. International operations were expanded to include the USA, Singapore, Oman, Belgium, Seychelles and Maldives and the Netherlands. Habib Bank is working for the last 50 years and become the largest commercial bank in the country. It has the Authorized capital of RS 5000 Million with a paid up capital and reserves of RS 858 Million and its deposits are more than Rs. 213 billion in approximately 10.7 Million accounts. It has the advances of 131 Million. Habib Bank hasinnovated a numbers of financial schemes like term deposits, Special notice term deposits, A.T.M. etc. As governments are hoping to be liberal and their policies are innovative and liberal the scope of banking is increasing and Habib Bank has always been one step ahead in the growth and

participating very much in the economic growth of Pakistan. Habib bank HEAD QUARTER is situated in KARACHI that building has highest number of stories in Pakistan.Habib bank has basically 9 Regions all over the country to control the entire activity of Habib bank operation is countrywide.

IntroductionHBL is now a Banking tycoon in our country. HBL, which is engaged domestically and overseas in Commercial, Retail Banking and related services, enjoys 20% of the market Share in Pakistan. Today HBL is truly the bank of the peopleproviding its customers with convenience and satisfaction all around the world. HabibBank Plaza, the tallest building in Pakistan, is the proud symbol of HBL leadership.In Pakistans corporate ground HBL is currently rated AA and A1+.Habib Bank Limited was established by Mr.Ismail Habib (Late) on August 25, 1941 at Bombay. It was the first Muslim Bank of the sub-continent. It was established with a Paid up capital of Rs. 25000.Bank Position of 1973Bank No of BrunchesDeposit (Rs In Million)HBL6676,160NBP5795,660UBL4975,670MCB5061,640ABL145570Bank Position of 1973Bank No of BrunchesDeposit (Rs In Million)HBL1926153,431NBP1448128,679UBL168487,482MCB128850,013

ABL75033,757Registered officeHabib Bank Limited 4th Floor, Habib Bank TowerJinnah AvenueIslamabad,Pakistan.Phone: 051-2872203 &051-2821183Fax: 051-2872205Head officeHabib Bank Plaza I.I. Chundrigar RoadKarachi 75650Pakistan.Phone: 2418000 [50 Lines]Fax: 021-921751Board of Directors Sultan Ali AllanaChairman Nauman K. DarPresident & CEOMoez JamalDirectorR. Zakir MahmoodDirectorAgha Sher ShahDirector Sajid ZahidDirector Dr. Najeeb SamieDirectorScope of Report As an internee in Habib Bank Limited the main focus of my research report was on general banking practices in one of the branches of HBL. These operations include Financing, Clearing, Advances, remittances, deposits and Account Opening.

Objectives of the Report Discuss thorough study of Habib Bank Limited. To understand the various operations and to equip with practical knowledge of the HBL. Limitation of the Report Something is better than nothing. No matter how efficiently a report is conducted, it cannot be perfect in all respects. This report was conducted in accordance with the objectives of the report. The report may not include broad explanations of facts and figures due to the nature of the study.Secondly , the limitation, which affects the report, is the restriction on mentioning every fact about the bank due to the problem of secrecy of the bank. In addition, the availability of required data was a problem as all the documents and files are kept strictly under lock and key due to their strictly confidential nature. Thirdly, the problem of short time period also makes the analysis restricted as one cannot properly understand and thus analyze all the operations of a bank in a very short time of six weeks.Benefit of the Study The study will benefit the finance students in particular and banking students in general because the financial analysis section of this report comprehensively encompasses all of financial aspects of this corporate banking giant. Furthermore, HBL Bahawalpur Branch, Bahawalpur may also benefit from the recommendations made at the end of the report.Research Methodology The report is based on my six weeks internship program in HBL. The methodology reported

for collection of data is primary as well as secondary data. The biggest source of information is my personal observation while working with staff and having discussion with them. Formally arranged interviews and discussions also helped me in this regards.

Historical Background of Habib Bank LimitedMohammed Ali Jinnah, Pakistan's founding father, realized the importance of financial intermediation while he was campaigning for the creation of a separate homeland for the Muslims of India. He persuaded the Habib family to establish a commercial bank that could serve the Indian Muslim community. His initiative resulted in the creation of Habib Bank in 1941, with HO in Bombay (now Mumbai), and fixed capital of 25,000 rupees. The bank played an important role in mobilizing funds from the Muslim community to finance the All-India Muslim League's campaign for the establishment of Pakistan. Habib Bank also played an important role in channeling relief funds to the people hurt in the communal riots and violence that preceded the departure of the British from India.After Pakistan was born in 1947, Habib Bank, at the urging of Governor-General Jinnah, moved its headquarters to Karachi, Pakistan's first capital. This gave Karachi its first commercial bank of the newly formed Islamic Republic of Pakistan. The Habib family owned and managed the bank until the Pakistan government nationalized it on 01 January 1974. Following is a brief description of HBLs journey over the last several decades.1951 HBL opened the first of 3 branches in Sri Lanka.1952 HBL established Habib Bank (Overseas).1956 HBL opened first of 5 branches in Kenya.1957 or 1958 HBL opened a branch in Aden.1961 HBL opened the first of what would become 6 branches in the UK.1964 HBL opened the first of 4 branches in Mauritius and a branch in Beirut.1966 HBL opened the first of 8 branches in the UAE.

1969 HBL opened first of 3 branches and an OBU in Bahrain. However, HBs branch in Aden is nationalized.1971 HBL opened an OBU in Singapore and a branch in New York.1972 HBL opened the first of 11 branches in Oman. HBL constructed Habib Bank Plaza in Karachi to commemorate the banks 25th Anniversary.1974 The government of Pakistan nationalized HBL and HBL merged with Habib Bank.1975 HBL opened a branch in Belgium. HBL also merged with Standard Bank, a Pakistani bank.1976 HBL opened a branch in the Seychelles, the first of two branches in Bangladesh, and a branch in the Maldives.1979 HBL opened a branch in the Netherlands.1980 HBL opened a branch in Paris and another in Hong Kong.1981 HBL established Nigeria Habib Bank with 40% ownership. HBL also opened a representative office in Teheran.1982 HBL opened a branch in Khartoum.1983 HBL opened branch in the Karachi EPZ and a branch in Istanbul.1984 HBL established Habib American Bank in New York with a branch each in Manhattan and Queens, and a US International Banking Facility. HBL also opened a branch in California.1987 HBL opened in Australia.1991 The Habib Group established a separate private bank, the Bank AL Habib, after private banking was re-established in Pakistan. HBL opened a branch in the Fiji Islands, and took over the Pakistani branches of failed bank, BCCI.1992 In Nepal HBL acquired 20% of Himalayan Bank.

1995 HBL established a representative office in Cairo.1990s HBL established Habib Finance (Australia), and Habib Finance International Limited, Hong Kong.2000 HBL established Habib Canadian Bank.2002 On June 13, 2002 Pakistan's Privatization Commission announced that the Government of Pakistan had granted the Aga Khan Fund for Economic Development (AKFED), a subsidiary of the Aga Khan Development Network, rights to 51% of the shareholding in HBL, against an investment of PKR 22.409 billion (USD 389 million).HBL's UK operation came close to being shut down due to regulatory issues with the Financial Services Authority. The issue was resolved by converting the operations to a subsidiary. Then Habib Bank Limited and Allied Bank of Pakistan merged their operations (Habib contributed its 6 branches and Allied its 4), into a new bank, called Habib-Allied International Bank, in which Habib Bank has a 90.5 percent shareholding, while Allied Bank has 9.5 percent. Simultaneously with the transfer of business to the new bank, both allied and Habib Bank close down all independent operations in the UK.2003 HBL received permission to open a branch in Afghanistan.2004 On February 26, the Government of Pakistan handed over management control of Habib Bank to AKFED. The Board of Directors was reconstituted to have four AKFED nominees, including the Chairman and the President/CEO and three Government of Pakistan nominees2006 HBL sold the operations that it had established in Fiji in 1991 to Bank of South Pacific.2008 Declared best bank.2009 Pakistans largest banking network.

Vision Statement of HBLSimply the vision of Habib Bank is mass banking. At the time of formation it changed its motto from class banking to mass banking. Expedite the economic growth of the country through spreading the banking services to the doorsteps of mass people so that they get institutional financial help and participate in the economic activities of the country.

Mission Statement of HBLTo be recognized as the leading financial institution of Pakistan and a dynamic international bank in the emerging market providing our customers with a premium set of innovative products and services, and granting superior value to our stakeholders, customers and employees.

Values of HBLHumilityWe encourage a culture off mutual respect and treat both our team members and customers with humility and care.IntegrityFor us, integrity means a synergic approach towards abiding our core values. United with the force of shared values and integrity, we form a network of a well-integrated team.MeritocracyAt every level,, from selection to advancement, we have designed a consistent system of human resource practices, based on objective criteria throughout all the layers of the organization. We are therefore, able to achieve a specific level of performance at every layer of the organization.Team WorkOur team strives to become a cohesive and unified force, to offer you, the customer, a level of service beyond your expectations. This force is derived from participative and collective endeavors, a common set of goals and a spirit to share the glory and the strength to face failures together.Culture of InnovationWe aim to be proactively responsive to new ideas and to respect and reward the agents, leaders and creators of change.

Products and Services Offered by HBLProducts HBL Muhafiz Rupee Travellers Cheques HBL Auto Finance HBL Flexi Loans for salaried personnel HBL Life Styles Financing Scheme HBL i-Card HBL House Financing Loans HBL Easy Access HBL Fast Transfer Haryali Agricultural Loans HBL E-BankServicesRetail BankingThe Retail Banking network, with 1425 branches, is the core strength of Habib Bank. The network provides HBL with the largest diversified low cost deposit base of any bank in Pakistan, and forms the basis for many of our other business lines: corporate and investment banking and treasury activities. The network provides HBL with the largest diversified low cost deposit base of any bank in Pakistan, and forms the basis for many of our other business lines: corporate and investment banking and treasury activities.Commercial BankingEnterprises operating in the middle market contribute significantly to the economy of a country. During FY-2000 HBLs management decided to address this issue. On November 1,

2000 Commercial Banking came into being. The objective of stetting-up Commercial Banking was twofold: First to stop the erosion of market share in the middle market. Second, to regain the lost market share.Commercial Banking is making headway with improvement not only in terms of the business figures but also in its ambiance. Renovation of is being carried out in order to give a professional look to all the Commercial Banking Centers.Corporate BankingThe Corporate Banking Group serves large institutional customers who require sophisticated products in an environment of intense competition. HBL Corporate & Investment Banking Group is now recognized as a market leader and regularly arranges and participates in most large structured finance deals.International OperationsHBLs ability to operate successfully in diversified markets and cultures is a function of a long history in international banking when first international branch was opened in 1951. The Banks branches in financial centers continue to provide efficient trade settlement and reimbursement services to the entire network and business with other banks.

SWOT AnalysisStrengths Goodwill & historical background Professional and well trained staff Largest customer base HBL is Pakistan's largest commercial bank HBL has a domestic network of 1,425 branches with an international network of 48 Branches in 26 countries 20% share of HBL in financial market Large Balance sheet size Decentralized authorityWeaknesses Unfavorable union activities and management conflicts Checking System is at intra-department level Weak marketing policies Nepotism & Favorism Infected portfolio still exists as bad debts Centralized management in particular areas

Opportunities Opportunities for growth and expansion in cash management. Faster market growth represents opportunity to grow and diversify Restoration of investors confidence and pick up in private sector investment flows. Large deposit base and funds flow can help to avail related market opportunitiesThreats Adverse & unstable government policies Political instability Advance technology Competition from other banks

Human Resource ManagementFunctional ResponsibilitiesRight Now the responsibilities assigned to HR department at Corporate Center can be categorized under three heads Staff mattress / Basic HR Functions Expenses control Security mattressHBL is an organization that provides opportunities for its staff to have a challenging and rewarding long-term career. To this end the Human Resource Group (HRG) encourages and motivates its employees to excel in the responsibility that they have in the organizations. Believes that creativity and innovation comes from talent, knowledge and experience and it is HBLs endeavor to provide and maintain an environment which not only nourishes these strengths but also provides opportunities for the staff to have a career which has multidimensional growth opportunities. In doing so, HRG has been restructuring and redesigning the overall structure of the organization, which includes rationalization, cutting down the decision layers, improvement in staff training and hiring professionals and MBAs at entry-level management. The overall direction of HRM has been towards nurturing the strengths of the human capital to its maximum with a defining principal to help create a progressive environment and sustain a thorough commitment of our staff towards focused customer service. HRG therefore recognizes the need to proactively invest in staff training and develop courses on a regular basis. Under the umbrella of its Management and Organization Development Division (MODD) its Management Development Institute (MDI) with its three fully equipped chapters at Karachi,

Lahore & Islamabad regularly conducts and outsource technical and personal development courses for its all level of staff enabling them to meet the challenges of the ever-changing business requirements and customer needs. During 2008, 529 courses, workshops, skill development clinics and seminars in the disciplines of Service & Attitude, Market Research & Selling, Management & Communication, Credit & Finance, I.T. & e-Banking, Treasury & Trade Finance, Global/ Domestic Banking Operations and on other diverse subjects were conducted by In / Ex-House professionally skilled, qualified and certified faculty and industry experts for 10233 people of senior/middle line management & staff carving 1334 days training days. There is no budget limit for Training and Education at Habib Bank.HR Group aims to maintain and further improve the service-oriented culture and to make employment not only satisfying but also enjoyable.Selection & RecruitmentOur Recruit Meritocracy is an integral part of HBLs recruitment policy. Our merit-based recruitment process incorporates the principles of equal opportunity and leads to the appointment of the most capable candidate. This ensures openness and transparency, allowing greater confidence in the outcome of the selection process.The merit principle at HBL aims to identify the most suitable person for the job assessed on the basis of the following parameters: Educational Background Skills and Competencies Abilities and Attitude Experience Interpersonal / Communication skills

Entry level programsIt includes Management Trainee Cash Officer Management Associates InternshipExperienced ProfessionalsWe recruit experienced professionals in all areas of the bank and encourage the creation and pursuit of innovative ideas. Our dynamic work environment offers diverse opportunities to stimulate ongoing employee needs and supports career enhancement opportunities.Selection ProcessThe diagram below represents the process on which we base our selection. This gives an overview to potential candidates as to the steps involved in becoming a part of the HBL team.

Objectives of Habib Bank LimitedFollowing are some of the main objectives of HBL. To earn profit for the Bank itself and for its shareholders. To promote and boost up business sector inside the country. To provide employment opportunities to people. To help in development and industrialization of the country. To provide loan and advances to help out in self employment schemesLike other business organization the core desire of Habib Bank is to maximize the profit through saving & loaning money to the life of the common people. The Objectives of the Habib Bank is given below: Broad Goal: As a nationalized commercial organization, Habib Bank belongs to the people. It implies that it stands for meeting the banking needs of the mass people of the society. Operating Goal: In compliance with the very nature of the organization, the objective in mind the bank aims at excelling quality and diversified services. To fulfill its mission Habib Bank has its main objectives as followings: To provide banking services to people. To earn profit. Act as a media of exchange. To contribute to gross domestic product (GDP). Maintain a satisfactory deposit mix. To promote and boost up business sector inside the country. To help to grow entrepreneurship. Increase loan portfolio diversification and geographical coverage. To mitigate unemployment problem. Provide finance specialized services to the export. To help to boost economic development. To help in development and industrialization of the country.

Pest Analysis and Environmental ScanningA broad view of market is considered to be an important tool when management is interested in introducing better services for customers. Rapid technological change, global competition response and the highly diversified buyers preferences in many markets require the constant attention of the market vouchers to identify business opportunities, see the shifting patterns of the buyers, evaluate such changes in competitors positioning strategies and guide the choice of which buyers to target and then classify them according to their respective segments. Identification of external macro factors that influence buyers and thus change the size and composition of market overtime involves initially building customer profiles. These influences include: Political and legal environment Economic trends Socio cultural environment Technological factorsPolitical and Legal EnvironmentBanks are overwhelmingly affected by a countrys political and legal considerations. This environment is composed of government regulatory and law enforcement agencies that influence and limit various organizations and individuals. Mostly these laws are designed to create new opportunities for business.Business legislation has following main purposes To protect banking companies from unfair competition. To protect consumers from unfair business practices adopted by banking companies To protect the interest of the society from unbridled business behavior

Economic TrendsAlong with higher borrowing power, a banking market requires better consumer market in volume. The concerned borrowing power depends on: Consumer income Saving rates Consumption patrons Rates of interest Budget deficit Exchange rates Cost of living InflationSocio-Cultural EnvironmentA society is shaped by stated and/or understood beliefs, norms and values. People in a society consciously and unconsciously interact with: Themselves Others Organization Society NatureFollowing are the main factors. Which arise because of change in socio-cultural environment? Consciousness about services Concern for environment

Improved customer relationTechnological FactorsAdvancement in technological forces has played a very vital role in shaping the lives of people. The rate of technology change and its adoption has significantly affected the rate of growth of economy around the globe and same is the case with Pakistan banking industry in general and people in HBL in particular. With each passing day, new technology is generating deep rooted affects which could be pragmatic in long run. These step up techniques involved in on line banking. In brief PEST analysis evaluates the overall banking industry and provides us the information about the external macro condition.

Management Management is a unique process consisting of activities of planning, organizing, leading and controlling performed to determine and achieve stated objectives with the use of human being and other resources . Management is the process of reaching organizational goals by working with and through people and other organizational resources.Strategic ManagementThere are three levels of strategies Strategic management analysis Business level strategy Divisional level strategyStrategic management analysisHBL has following corporate level strategies. Growth strategyHBL has adopted growth strategy by expanding its operations. HBL actually have different products and services for both individuals and business customers. HBL product and services for individual customers are credit cards, debit cards, and deposit accounts. HBL product and service for business customer are commercial banking, cash management and asset management. Related DiversificationHBL has also adopted related diversification strategy, because at first function ofHBL was only accepting deposit and advancing loans but now HBL has many related functions like flexi loans, ATM and credit cards.

Business Level Strategy Cost Leadership strategyAt business level HBL has adopted cost leadership strategy in a way that cost ofadvancing loans is less as compare to some other well reputed banks like Bank Alfallah, Al Habib, MCB. Differentiation strategyAt business level, HBL has also adopted differentiation strategy by introducing some new products into the market earlier to other banks like debit cards.Divisional level strategyFollowing are the main divisional level strategy fallowed by HBL To establish sound relationships with top industrial groups and various multinationals. To make the bank customer focused To increase the no of online branches To increase the ATM network to further improve the bank market shares. To implement the performance appraisal process to provide motivation and merit oriented culture in the bankto improve extensive tanning to the employees in the process, products, marketing and selling skills. Upgrading skills level of employees.

Competitors Of Habib Bank LimitedIt has many competitors in its industry only the edge it carry is the deposits of major Govt. organizations and the Gold advances. The others dont have these type of opportunities but they are far away good than HBL in means of customer care, behavior, outlook, services, time savings, products etc. following is a list of competitors. Local Private Banks in Pakistan Askari Commercial Bank Limited Bank Al Falah Limited Faysal Bank Limited Muslim Commercial Bank Limited United Bank Limited Bank-AL-Habib Limited

Departments of Habib Bank LimitedThere are few departments on which general or day-to-day banking of HBL composes. There details are as under: Deposit Department Account Opening Department. Remittance Department Advances Departments Marketing Department Clearing Department Foreign Exchange Department Computer Department Imports and exports departmentNow we see the function of each department working at each branch of Habib Bank b Limited.

1. Deposit departmentBank deals in money and they are merely mobilizing funds within the economy. They borrow from one person and lend to another, the difference between the rate of borrowing lending forms their spread or gross profit. Therefore we can rightly state that deposits are the blood of the bank which causes the body of an institution to get to work. These deposits are liability of the bank so from point of view of bank we can refer to them as liabilities.Types of account Current accountIn this type of accounts the client is allowed to deposit or withdraw money as and when he likes. He may, thus, deposits or withdraws money several times in a day if he likes. There is also no restriction of amount to be deposited or withdrawn. However, there is requirement of minimum balance maintenance of Rs.5000/-. Usually this type of account is opened by the businessmen. No profit is paid by the bank and no service charges are deducted by the bank on current deposits account.Features Account can be OPENED with Minimum Balance Rs.1000/- with no maximum limit. Checking balance at any time during banking hours. No profit is paid. Statement of Account dispatched on request letter. There is no restriction for withdrawals of amount and number of cheque.

Profit and loss sharing savingsThis type of account is for those persons who want to make small savings'. This type of account is opened with a minimum deposit of Rs. 1000/- or the amount prescribed from time to time. The profit is paid on these accounts on the minimum balance during a month for the whole of that month. Zakat & other taxes are deducted as per rules of the government. The requirements for this account is duly filled prescribed A/C opening FORM, Photo Copy of National Identity Card (Resident Pakistani), two Passport size photographs with Signatures/Thumb Impression (Resident Pakistani), Photo copy of Passport with Page bearing Resident Visa of the Country where Pakistani Residing, two Passport size photographs and signatures on A/C Opening Form for Non-Resident Pakistani with Signatures/Thumb Impression etc.Features Account can be OPENED with Minimum Balance Rs.1000/- or prescribed limit that is announced time to time with no maximum limit. Profit is payable at monthly subject to adjustment on deceleration of actual profit rate declared every half year. Profit is calculated on monthly products Zakat will be deducted on valuation dates of account. Profit is Paid/Credited in Account on half yearly basis in case of six monthly PLS saving accounts. Statement of Account dispatched on half yearly basis after posting of profit. There is no restriction for withdrawals of amount and numbers of cheque.

Fixed depositsFixed deposits are those which can be withdrawn only after the maturity period. In this type of deposits the Bank allows high rates of interest depending on the time period ofdeposits. The shorter the period of deposits, the less will be the interest and vice versa.2. Account Opening DepartmentIn this department I have to learn how to open a new account of a customer. The HBL open the different types of accounts. The opening of an account is the establishment of banker customer relationship. Before a banker opens a new account, the banker should determine the prospective customers integrity, respectability, occupation and the nature of business by the introductory references given at the time of account opening. I already explain these accounts. In order to open an account first of all the customer has to fill a form prescribed by the bank. The person is required to bring some reference or introduction for opening the account. Introducer may be a person who has an account with HBL. Some important information regarding introducer e.g. the name and account number of the introducer is written on the space provided on the specimen signature cards. Then in order to find out whether he is a true introducer or not a letter is sent to him thanking him for this introduction, so that anything wrong may come into notice. There are different requirement for different types of accounts and account holders. An important thing is that the customer should have a corporate customer. The corporate customer limit is 40 million and this branch always deals the corporate customer.Procedure of Account Opening Duly filled prescribed A/C opening form. Attested photocopy of N.I.C./Passport of Account Holder(s), Proprietor, Partners, Directors and office Bearers as the case may be. Certified true copy of the certificate of incorporation or registration (in case of limited companies & registered bodies only). Certified true copy of the certificate of commencement of business (in case of public limited companies only). Certified true copy of the memorandum and articles of association (in case of limited companies). Certified true copy of rules and regulations or By-Laws (in case of association etc.). Certified true copy of the resolution of the Board of Directors/Managing Committee/Governing Body regarding conduct of the account.Procedure for Account closingAny time the customer can close their account if he is not satisfy with the bank or may be other reason. He can easily close their account. For closing of account the customer meets the manager that he want to close his account .For this purpose the application is written to the manager. The manager sing this application and this is submit to the account opening department this department close the account of the custom.

3. Remittance DepartmentRemittance is a major function of the bank. It is the transfer of money from one place to another place without directly involving cash. As it is the function of the Bank to the money to any place where there is a Bank. It is the most easiest and safe way to send money to any place. Bank charges menial amount as a commission for the remittance. Here in the Habib Bank Limited Chubara Road Layyah Branch there is also remittance Department. By providing this service to the customers the national bank earns a lot of income in Exchange.There are two types of bills remittance:I) Remittance InwardII) Remittance OutwardI. Remittance InwardCheques and Drafts received for payment and clearance or drawn on us from customer of other banks on behalf of their customers is called Remittance Inward.II. Remittance OutwardAll instruments issued by us, which are drawn on other branch of the same bank or instruments deposited for collection from other bank locally or out of city are called Remittance Outward There are mostly four methods to remit the money. They are Demand Draft (DD) Mail Transfer (MT) Pay Order (PO) Telegraphic Transfer.(TT)

Demand Draft (DD)It is the most commonly method used for remittance of money. It is verysimple, firstly a form is to be filled in which all details are specified that where and it whichbranch thedraft is to be sent thenthe money is depositor which is called draft and money can be drawn after showing to the bank of the specified branch of the Bank. Only specified person can draw the money on that draft. Another method to secure the payment of the draft could be the crossing of the draft, which means that it will only be deposited in the payee's account. To make it more secured and safe the Bank has coded the amount exceeding Rs. 15000. Only the banker or the person known the actual amount of the draft in return bank gets a commission which is its mode of earning.Following parties are involved in demand draft: Applicant Issuing branch Drawee branch BeneficiaryA demand draft may be issued against the written request of the customer before issuing it must be seen that the demand draft is in order.The DD application must be scrutinized by the counter clerk in respect of following points. There should be branch where payment is to be made. Full name of payer should be mentioned. Amount in words and figures must be same The applicant on two places should sign application.

Mail Transfer (MT)The money is transferred through mail. One Branch of the bank sends advice to the branch of the same bank to credit the account of payee. In this type of transfer the payee must has the Bank account. For example, now days PTV's licenses are made all over the Pakistan.Bank also gets commission on the mail transfers the amount to the PTVs Islamabad account.Pay Order (PO)Pay order is less expensive method of transfer money. Normally this method is used to transfer money inside the city. If it is used city wide, it takes a long time. The bank charge Rs. 10 which is flat fee the pay order and an excise duty of Rs, 1 per leaf withholding tax of 20% on the sum is also taken from the party. Now if the pay order is to be cancelled or duplicate of the pay order is to be needed is case of misplacement Rs.20 is to be paid.Following parties are involved in pay order: Applicant issuing branch PayeeTelegraphic Transfer.(TT)It is a good safe and fast method of transferring money from one place to another. The advice is sent through the telegram and the bank to which the advice is made reconfirms that whether the advice is made or not. After the confirmation the money is paid to the payee. Telegraphic Transfer could be made by giving the name and the telephone number of the payee but account number is considered good and sage. The amount exceeding Rs.15000 is coded in order to keep security.

Following parties are involved in TT Applicant Drawing branch Drawee branch BeneficiaryFollowing important things should be included in TT: Full name of the beneficiary or account number should be mentioned in the application form. Instruction regarding mode of payment should be obtained. A record in the remittance outward register should be maintained. All the remittance must be controlled through number or codes.

4. Advances DepartmentThis department has been working under the supervision of knowledge experienced & well qualified banker. Mr. Nadeem, who has been serving this bank for the last 22 years. This department has been playing one of the primary functions of the bank because a bank is the organizations that accept deposits & give advances. Advances department is one of the most sensitive and important departments of the bank. The major portion of the profit is earned through this department. The job of this department is to make proposals about the loans. The Credit Management Division of Head Office directly controls all the advances. As we known bank is a profit seeking institution. It attracts surplus balances from the customers at low rate of interest and makes advances at a higher rate of interest to the individuals and business firms. Credit extensions are the most important activity of all financial institutions, because it is the main source of earning. However, at the same time, it is a very risky task and the risk cannot be completely eliminated but could be minimized largely with certain techniques. Any individual or company, who wants loan from HBL, first of all has to undergo the filling of a prescribed form, which provides the following information to the banker.Advances are investments of bank to earn profit. After restructuring of Habib Bank Limited, Head office gives loan targets to each branch that must be achieved for its survival. The manager is responsible to achieve these targets in the given period. The amount is collected partially with an agreement containing the markup or interest rate, which is to be paid the interest, or markup is applied on a time limit after that it can be increased with the given conditions applied. There are basically two types of loans. Fund base Non-fund base

Fund baseIn fund base the cash is involved.Non-fund baseWhile is non fund base cash is not involved.These are following types of advances those are given by the BANK. Cash Finance (CF) Running Finance (RF) Machinery Loan. International Development Agency Loan(IDA)Cash finance (CF)Cash Finance is the biggest loan given to the businessmen, industrialists, and its limit is in crores and bank do require security for this purpose. After the proper investigation and documentation these finances are given and genuine property is pledged as a matter of security.These loans are taken for the purchase of stocks etc. The bank appoints its staff of two or three persons at the place where that stock is lying. Bank also keeps the record of the stock and current position too. A notice is also written at the place that the stocks are pledged with the bank. To get these types of loans prior permission from the zonal office of the Habib bank is also required. The bank gets back its principal amount and also markup for the loanRunning finance (RF)Running Finances are also given for the purchase of stock etc. But its limit is not too much. Normally up to RS 15, 00,000 is given as a Running Finance and no staff is appointed. This is termed as Hypothecation, which means that party is wholly liable for the stock and

payment of the principal amount and markup. The procedure is almost same as for the cash finance and the loan is given to those parties which are able to prove its genuineness and satisfies the bank. The bank also pledges the genuine security of the party which normally more valuable than the amount of loan. To get this type of loan prior permission of the zonal office is necessary.Machinery loanCertain loans are given for the purchase of machinery. These loans are called Local Machinery Manufacturing Loan (LMM LOAN). The bank finances for the machinery, which is manufactured in Pakistan. Like other loans after the proper verification and proper documentation.With the prior approval from the zonal office, these loans are given. The bank pledges some genuine property as a security.Personal security is also required in the getting of this loan. The loan is to repay in certain installments which includes the mark-up also. Normally these loans are for the period of five years and first six or three months are exempted from the installments as the ease or as the terms and conditions may be. The rate of the interest to be paid by the party is 8% per annum.International Development Agency Loans.These loans are given for the purchase of foreign machinery, stocks, etc.Though these loans are not in practice but there is a provision for this loan. The cause of in practicing of the loan may be the unawareness of the people about the provision.The rate of interest on these loans is 11% per annum.These finances are provided by the World Bank.

Principles of AdvancesThere are five principles, which must be duly observed while advancing money to the borrowers. Safety Liquidity Dispersal Remuneration Suitability Other Finance system of the HBL Demand finance Fixed assets financing (FAF) House Finance Hire Purchase Financing

5. Marketing DepartmentFunction of Market DepartmentThe function of the marketing department of a HBL is to advertise about the bank and reach more possible customer who would open accounts with the HBL. They usually start up the campaign or a promotional scheme explaining a benefit that come along with the process of account opening with the bank. Such a campaign usually results in the increase in the customers base and increased the profit for the HBL.Another important function of HBL is to use of the segmentation strategy, in it the HBL divide the market into distinct group of buyers with different needs how might require It is very important strategy which is applied by the operation marketing department in the HBL, the Main focus of this selecting strategy is to spreading the market into different groups, where the persons have comparable needs as well as wants for services and products.The marketing department in HABIB BANK LIMITED is very strong. It is the main source of gaining and maintains the customers that can give a large profit to the bank. There are five relationship managers in Habib bank and every person is responsible for the credit of his party. There are three market of HBL.Money Market T-Bill and Govt. Securities Bonds of Provincial Govt. Defense Saving Certificates Mutual Funds etc.

Capital Market Equities e.g. shares Mutual Funds Bonds Debt MarketForeign Exchange Market Spot Transactions Outright Transactions Swap TransactionsCustomer dealingHBL corporate center only deal with the following categories of business: The organization that have minimum 250 million sales in a year. The organization that have availed 80 million finance Agri based industry. HBL do not deal with the agriculture sector.

6. Clearing DepartmentThe major function of clearing department is to receive the cheques, which are drawn on some other banks. The customer can get the money in his account at Habib Bank Limited through a cheque drawn on another bank. The bank accepts these cheques and collects the amount from that bank on which cheques are drawn through the Clearing House. Bank charges some commission for this function. Every bank performs both as a payingas well as collecting functions on behalf of its customer. It is however an important function of crossed cheques. A large partofthis work is carried out through the bankers clearing house. Aclearing house is a place where representatives of all the banks ofa city gettogether and settle the receipts and payments of cheques drawn on each other bank.As the collecting banker runs the certain risks in receipt oftheir ownership, the law has provided certain protections to thebanks.The basic function of clearing dept. arises when HBL account holder deposits cheque of another back tocollect its payment on his behalf orHBL account holder gives a cheque toany other party concerning to any otherbank. Usually a cheque is sent through clearing is credited to the depositor account day aftertomorrow.In this regard there are two typesof clearings. Inward Clearing Outward ClearingInward ClearingInward clearing means all those cheques which are issued by account holders too their parties and now these cheques are presented for payment (interm of amount of cheque creditto presenter account).

Outward ClearingSimilarly when outside parties issue some cheque to our account holders, they deposit these cheques in chequeReceipts Department. Afterward these cheques, as relating to other banks operating in country, aresent to clearing department or further process. Clearing dept. sends these cheques to respective banks and after realization of cheque, funds are credited to the account ofrespective customer. In this regard there are two typesof clearing Intracityclearing Intercityclearing

7. Foreign Exchange DepartmentAs the Pakistani currency accounts are opened the requirements are same for the foreign currency accounts. All the transactions are made in the foreign currency in which the account is opened.

8. Computer DepartmentThrough this department bank has make its way to enter in twenty-first century. This department is playing a very important role in making the banking procedures fasters and helping the bank for providing the new services to its customers. This division provided the bank with online branches system to make the whole procedure fool proof.Types of Branches:There are three types of branches in all over the Pakistan. Online BranchesThe branches, which are directly, linked with the central computer AS-400 through wide area networking through fiber optic cables. These branches have dumb terminal directly linked with central computer. Yet only forty-four branches all over the Pakistan are online. Out of forty-four, seventeen are located in Karachi, seven are located in Lahore, and two are located in Islamabad and two in Multan and two in other regional offices. Batch Branches;The branches where all transactions are carried out with the computer based system but these branches are not connected to the central computer with wide area networking. Batch branches are using three types of system, Branch Back Office (BBO) based on FoxPro, Branch Automated System (BAS) based on UNIX Branch Integrated System (BIS) based on FoxPro, in Karachi mostly branches facing this problem. Now-a-days efforts are under way to convert all branches into Electronic Banking System (EBS) which is used by online branches as this system doesn't require a person to remaining sitting till the branch closed its operation but the system automatically close itself when the branch time is over. The database in head office is also on this system.

Manual Branches:The branches where all transactions are carried out manually and records are maintained on registers. All branches in Pakistan report to their regional office regarding their daily transactions. In RHO through online terminal data goes to head office central computer. Except for branches those are online as they transfer their daily data directly through their own terminal. As day-to-day, activities of all branches are recorded in a central computer.

5. Imports and exports departmentExportsIntroduction and registration:Federal Govt. has empowered by Imports and exports act 1950 to regulator the import and export in Pakistan. Being a developing country like other developing countries, Pakistans imports exceeds than exports. To control this condition the registration order 1993 has been made mandatory for the registration of import and export. Export promotion bureau has taken the authority of registration. Any importer or exporter who has not granted with registration will not be able to import or export any kind of goods into or out of Pakistan.The requirements for getting registration are as under: Application form. Photocopy of I.D card. Copy of memorandum and article of association (in case of limited company). Ownership deed of office. Fee payment. Certificate of incorporation. Applicant should regular taxpayer.The most important exports from Pakistan are sports goods, surgical goods, hand noted goods, textile goods, leather goods etc.Export procedure:The imports and exports act regularly changed by the government in each year under which all the exports works. When the importer send the L.C to bank in respect to import or when the L.C comes to the advising bank from the issuing bank then the concerned officer allot the

number to the L.C and get registered. The concerned officer write down the name of issuing bank and the party name in a register and intimate the party about L.C. the exporter after receiving the L.C from bank will prepare the documents as per the L.C usually the following documents have to be prepared by the exporter: Bill of lading Covering letter E- Form Bill of exchange Packing list Commercial invoice Quota documents in case of quota country Certificate of origin Special custom invoiceImportsImports regulationGovernment of Pakistan and ministry of commerce controlled the import under the import and export act:Categories of importsImports are classified into the following categories: Commercial sector imports Industrial sector imports Public sector imports

Registration of importersAny individual should have to get himself listed with the export promotion bureau under the act of import and export registration no of imports and exports act if he desires to approach the bank for importing goods from overseas. He needs to complete the following conditions before getting himself registered: Nic number National tax number Member of registered association

Sales Operation in HBLBusiness activities and procedures has set by the Sales operation department which provides help to HBL perform its functions effectively and efficiently The sales operation department of Habib Bank Limited is organized to assess condition of the various branches. The sales operation department entirely regulates the operations which are performed by the HBL.Purpose and benefit of sales operation in the Habib Bank LimitedFor banks to run successfully sales operation department is essential.Bringing together the branches and customer is the core purpose of sales operation Department. It saves time of the management. Its a good symbol for the progress of HBL. Through this progress we know that how much sales are made, and how much profit has earned during this year by the branches of the bank.Function of sales departmentAttraction and retention customers are the core purpose of sales department in HBL. The sales department in HBL is very dynamic it is always ready to works for the assistance of clients. Therefore it is said that sales activities are to be organized to encounter the customer demand with suitable supply.The 2nd function is to boost the sales volume of HBL in a specific time period. Providing motivation through various methods to the sales force and giving proper training to them which will be helpful for individuals to carry sales activities successfully. Analyzing the demand of the market, study the psychology of customer, preparing the sales budget and searching the new markets is the duty of the sales department of HBL.

Sales MethodologySales policy is the accepting customization and proposal of the sales procedure exclusively for the product being sold to the target customers and the degree of sales complexity; In sales procedure there are numerous means to categorize suspects, gain their attention, raise their interest, build their desire, move them to action and close the sales: Sales policy is the sales technique which is used in the selling of products by the HBL.The HBL practices the various methods for their sales. The HBL delivers the improved sales to their customers so that customer should be satisfied with their goods and should remain loyal to them permanently, The HBL use this sales policy to accomplish their desire outcome.

Financial HighlightsFinancial position2012 2011Variance

Rupees in Million Percentage

Total Deposits 1,214,964 933,632 30.13

Total Assets - Net 1,610,309 1,139,554 41.31

Advances - Net 499,818 457,368 9 .28

Liquid Assets 920,709 5 11,913 79.86

Shareholders Equity & Revaluation Surplus 131,810 108,351 21.65

Profit & loss

Total Income*73,720 71,181 3.57

Total Expenditure 31,784 30,114 5.55

Provision for non-performing loans & Others 7,045 6,745 4.45

Pre-Tax Profit 34,891 34,321 1.66

Profit after Taxation 22,356 2 2,333 0.10

Earnings per share (Rs/Share) 18.36 18.30

Financial ratios Percentage

Non-Interest Income to Total Income*21.65 20.77

Operating Expenses to Total Income*42.13 41.26

Total Assets Growth Rate41.31 23.24

Non-Performing Loans to Gross Loans 10.30 11.23

Provision against NPL's to NPL 81.74 81.50

Capital Adequacy Ratio 15.81 15.62

Total Risk Weighted Assets to Total Assets48.25 59.43

Net Advances to Total Deposits 41.14 48.99

Liquid Asset s to Deposits Ratio 75.78 5 4.83

Return on Average Assets 1.63 2 .16

Return on Average Equity 20.40 21.70

OthersRupees in Million

Home Remittances 271,090 226,536 19.67

Exports / Imports Remittances 544,192 608,265 (10.53)

Number of Branches 1,540 1,506 2.26

Number of Staff 13,978 13,661 2.32

*Total Income is the sum of Net Interest Income and Non-interest Income

Financial PerformanceThe financials of the Group are summarized belowDescription2012 2011

Rupees in million

Profit after tax22,356 22,333

Un-appropriated profit bought forward 56,981 47,468

Profit attributable to equity holders of the Bank 22,256 24822,190 263

Transferred from surplus on revaluation of FA- net of tax

22,504 22,453

Profit available for appropriation 79,485 69,921

Appropriations

Transfer to statutory reserves (2,209) (4,408) (1,102) (4,243)(2,120) (6,512) (1,002) (3,306)

Cash dividend

Issued as bonus shares

Half year interim dividend

Total appropriations (11,962) (12,940)

Un-appropriated Profit carried forward 67,523 56,981

Basic and Diluted Earnings after tax-Rupees per Share18.36 18.30

Regardless of challenging economic situation, HBL continued to display robust progress in deposit. Total deposits of HBL stood at 1,215 billion as on December 31, 2012 showing an impressive growth of 30% compared to corresponding period last year. The domestic deposit at Rs.1, 041 billion witnessed robust growth of 32% which is much above the industry

growth of 11%. Retail deposits contributed significantly in increasing the deposits base of HBL. The strong performance by Retail banking helped HBL to cross Rupee One Trillion in domestic deposits, making HBL the first banking company to have achieved this milestone in the history of Pakistan. The CASA stood at 67% as on December 31, 2012 as against 69% in the corresponding period last year. The Capital Adequacy Ratio (CAR) improved further and stood at 15.81% as on 31 December 2012 as against 15.62% as on December 31, 2011.The investment stood at Rs. 797billion while advances at Rs. 500 billion as on December 31,2012 as against Rs.419 billion and Rs. 457 billion respectively in the previous year. Net Interest Income of HBL increased by 2% to Rs. 57.76 billion as compared to previous year. The non- interest income was up by 8% from Rs. 14.78 billion for the year ended 31 December 2011 to Rs. 15.96 billion for the year ended December 31, 2012. The profit before tax stood at Rs. 34.9 billion for the year ended December 31, 2012 indicating an increase of 1.7% over previous year while after tax profit at Rs.22.4 billion was maintained at last year level. The earnings per share before and after tax was Rs. 28.78 and Rs. 18.36 respectively for the year ended December 31, 2012 as against Rs. 28.31 and Rs. 18.30 respectively in the corresponding period last year.

Value of Investments in employee retirement benefits fundThe following is the value of investments of provident, gratuity, pension and benevolent funds maintained by the Bank, based on the latest audited financial statements.ParticularsRupees in Million

Employees Provident Fund 8,224

Employees Pension Fund 3,620

Employees Gratuity Fund 1,146

Employees Benevolent Fund Executive and Officers 997

Employees Benevolent Fund Clerical and Non-Clerical 354

Domestic NetworkName of RegionNumber of Branches Karachi South66Karachi North76Hyderabad55Sukkur48Quetta37Multan95Bahawalpur54Sahiwal76Faisalabad93Lahore95Sialkot71Gujranwala65Gujrat66Sargodha74 Jhelum74Islamabad116Mardan88Peshawar100Mirpur A.K51Islamic Banking33Commercial19Corporate (Including K.E.P.Z)12

Suggestions And Recommendations There should be authority in every region which ensures efficient flow ofcommunication andits understanding. HBL should immediately take brave steps towards thewelfare of experienced Habibians. In this regard HBL has setbest example Themanagementshouldtrytodecreasejobinsecurityamongthe employees. Trainingprogramshouldbestartedforinterneesandnewlyappointed employees. The bank charges high service charges as compared to the other banks, so these should be lowered down. Surveysmustbeconductedregardingcustomer satisfactionlevel andall employees of this dept. should look forward to getting feedback whenever possible. Adding of value added features that offer competitive advantage is also a means ofavoiding customer dissatisfaction. It is strongly recommended that HBL should automate its branches and develop a powerful computer network for on-line banking. Govt. should take keen interest to recover its bad debts, which can improve its financial position. HRM department must have a proper plan for placement of employees HBL must give the proper attention toward increasing the customization. It should establish a customer-oriented section in each branch for receiving him respectfully and provide proper guidance that he requires. Along with the officers, the training must also be given to the clerical staff. Because of HBL are running on manual system and the training of its staff directly improving

their efficiency of work? Working conditions must be improved for employees. Upper management should take decisions for promotion of employees on the basis of professional justice. Internal politics and lobbies should be minimized. There is also a need of proper recruitment and selection program. New young talent should be introduced to inject the new ideas. HBL major fault is that wasnt keeping its pace with ongoing changing in banking industry unlike other bank. Now this bank combining all it power and trying to approach other banks. Latest reorganizing efforts are necessary to make it cost effective also making its facility accordingly to modern banking. These must continue. Bank management has to put its all efforts to change the prevailing culture of the bank and to put the foundation stone of business oriented culture in which employees give important to the bank and its consumers. To attract the customer in the future HBL have to make extensive efforts to facilities of retail and consumer banking. Plus the technologies in the banking, which will be necessary for future banking is another week area, need to be stressed. The outlook and interior layout of the branches is another thing, which needs to be improved. The procedure of taking services from the bank must be made easier and straight forward not involving long difficult procedure for simple task. To remain in the market bank need to be vigilant in the eyes of customer. One-way is through promotion efforts, so that people aware about he services of the banking and any addition, which the bank as made in the portfolio of its services.

ConclusionHBL is clearly thefirst choice of everyone who believes inqualitative approach ofbanking an environment of highly responsible people. Bank is enjoying a healthy market share and taste ofgood status in terms of its operative features and customer support. HBL is clearly the best bankoperating in Pakistan. Corporate and commercial functions are distinguished features of HBLexperiencing a good reputation and reasonable mark up with respect to prevailing market mark up with assurance of satisfaction and support. HBL has more customers as compare to other banks, if they given proper attention to every customer then in few years it will be the leading bank of the country (asset point of view)Being a nationalized Bank, it has been facing the problem of pursuing the policies of the govt. whether or not they are profitable for the Bank. The Bank had to undertake many compulsory advances schemes which resulted in a situation where the Bank had to incur huge losses. The yellow Cab Scheme and the Karobar Scheme are prime examples for that. Moreover, the bank has to undertake many such services and functions which are not much beneficial for the bank in monetary terms, but the bank has to perform those functions since no other bank is ready to perform those functions, such as dealing the salaried accounts, pension payment services etc. HBL has revamped its structure in the recent past, and many revolutionary changes have been brought in, but still the overall image of the bank is not very satisfactory. Especially, in the field of Information Technology, the bank is lagging behind. However, recently the Bank has contracted with a company of international repute to incorporate the latest, state of the art computer infrastructure into the Bank, namely The Core Banking Application (CBA), which would be the most advanced banking technology in the country.

Customer service has been another prime problem of the bank. The bank employees dont get the enough room for dealing the customers the way the private banks deal. The reasons are very obvious, that the clientage and the customer base of the bank is so vast that it hardly can give the same level of service to all its customers, given the problems and regulatory problems faced by the bank are there. Given the strengths and the commitment level of the employees, HBL can easily out-class its competitor banks, if some of the problems are removed, by working sincerely for the achievement of the goals, such as bringing the branches to online mode, incorporating computerized system, uplift of the branches appearance etc. Internship Report on HBLPage 1

Internship Report on HBLPage 67