HBL Report 1

Internship Report on HBL

AN INTERNSHIP REPORT

ON

HABIB BANK LIMITED

SUBMITTED TO SIR.Farrukh Naveed

SUBMITTED BY

Mubashar Jafar Roll #34

BS commerce Morning SESSION 2007-2011

DEPARTMENT OF COMMERCEISLAMIA UNIVERSITYOF BAHAWALPUR

Department of Commerce 1


IN THE NAME OFALLAH WHO IS THE MOST

BENEFICENT THE MOST MERCIFUL



DEDICATIONS

This report is dedicated to my parents, friends and my teachers who all

support me in times of intricacy and continuously appraise me.’

Therefore these people are the source of my inspiration and I would be

forever thankful to them for keeping my morale high and encouraging me against

all odds.



Preface

Internship is an integral part of BS program. It is a mean of providing

practical exposure to the student, of what they study

Our teacher also managed an internship program for us. I had my internship

in “HABIB BANK LIMITED Ghalla Mandi Branch Chistian, for Eight

weeks. During this period of Eight weeks I work in all the departments of

Branch, and learned a lot. As the period of internship involved working with

the permanent staff of bank and assimilating into their routine it provided an

experience and in depth review of how the employees of the bank coordinate

one another and with their manager.

. The daily difficulties that aroused out of the formal routines of the bank

became evident and the draw back of the extremely formalized system of the

bank became apparent during the internship period.

Following is the generalized view of the bank as perceived by me during the

period of my internship is presented for the readers before going into depth

review of the report. As the generalization are based on the writer’s

perceptions so they cannot be considered as the final word in this context as

perception are different with different people.

In this report, I have tried to present a complete picture of Habib Bank

Limited. Including its market position, competitive production, working of

bank, its various departments, and finally the SWOT analysis and financial

analysis of Habib Bank Limited.



Acknowledgements

I must offer my thanks to Allah Almighty by whose blessings I have been able to

complete my internship report on HABIB BANK LIMITED.

I offer my thanks to Mr.Farrukh Naveed for his valuable guidance and

contribution in making my report meaningful and useful.

I also thank to the Branch Manager Mr. Bashir Uddin Ahned, officers and

employees for their kind behavior and full cooperation during the internship

period.

I also thank to the Branch operation Manager Mr. Abdul Malik Officers and

employees for their kind behavior and full cooperation during the internship

period and tell about the importance of customer in the banking field.

In the last I like to thank all of the staff of branch for their valuable comments,

cooperative behavior and friendly environment during the internship.



TABEL OF CONTENTS

serial No. Content Page #1 COMPANY INTRODUCTION 8

2 COMPANY INFORMATION 13

3 FINANCIAL HIGH LIGHTS 17

4 MISSION STATMANTANDOBJACTIVES

20

5 OPERATIONS OF THE BANK 236 WORK DONE BY ME DURING

INTERNSHIP24

7FEILD OF ACTIVITIES / DEPARTMENTS OF A BANK

29

8 Deposit department 30

9 Accounts department 34

10 Advances department 38

11 Agriculture loan 42

12 Flexi loan 44

13 Bills and Remittances department 46

14 MISCELANIESUS FUNCTIONS OF ALL DEPARTMENTES

51

15 Lockers 53

16 A.T.M. 54

17 CREDIT CARD 5718 Financial analysis 59

19 Ratio Analysis 61



20 SWOT ANALYSIS 7822 Conclusion 81

23 SUGGESTION 82



Executive Summary

I have completed my 8 weeks internship in HABIB BANK LIMITED. I tried my

best to gain something practically from this opportunity. This report starts from

the introduction of word ‘Banking’, and then History of HABIB BANK

LIMITED. History of HBL shows that how it helps its Nation and Country in

both war & peace. the first Pakistani bank .Bank Mission statement & Vision

shows its focus on overall performance of the bank and quality of services and

products

COMPANY INTRODUCTION

Company Description:

Habib Bank Limited is a Banking Company, which is engaged in

Commercial & Retail banking and related services domestically and

overseas.

WHAT IS BANKING COMPANY?

Section 5 of banking ordinance 1962 says that Banker means a person

transacting business of transacting the business of accepting, for the purpose of

lending or investment of deposits and withdrawals by Cheques, drafts, orders of

other wise and include any post office saving bank.



COMMERCIAL BANKING:

Commercial banks are profit seeking organization. They have been the most

effectively mobilize the savings and have been providing short-term requirements

of businesses. They help in internal and external trade of the country.

FUNCTIONS OF COMMERCIAL BANKS:

Today there are more than 7000 branches of commercial banks along with an

established network of supplementary financial institutions.

The function of a modern commercial bank can be divided under the four

headings as:

1. Accepting of deposits.

2. Advancing of loans.

3. Agency service.

4. General utility service.

ACCEPTING DEPOSITS:

The primary function of a bank is to receive surplus balances from

individuals, firms, public institutions and government etc and honor Cheques

drawn upon it. Three types of deposits are

Current or demand deposits

Saving deposits



Fixed or term deposits

ADVANCING OF LOANS:

The most important function is to provide loans to individuals, firms,

business concerns and government bodies against securities to meet their

financial needs at a fixed percentage of interest. These are some kinds of

loan

Loan to busines

Loan to real estate mortgage

Consumer loan

Loan for purchasing security

Loan to agriculture

Bank investment for security

AGENCY SERVICES:

The commercial bank provides following agency services to its

customer

Collection and payment of Cheques

Collection of dividend

Purchase of securities

Execution of standing orders



Acting as trustee or executer

Make transfer of funds

Act as an agent

GENERAL UTILITY SERVICES

Commercial bank performs general utility services as follows

Foreign exchange business

Act as referee

Accepting of bills for collection

Issuer of traveler’s Cheques

Supplier of trade information

HISTORICAL PERSPECTIVE

History of the Company:

Habib Bank Limited was incorporated on 25 th August 1941 by ISMAIL

HABIB (LATE). Habib Bank inaugurated its operations with the bank’s first

branch in Bombay. It was the first Muslim bank of the sub continent. It was

established with a paid up capital of Rs.2500, 000. At an early stage the number

of branches was only 12. In 1947 Karachi saw its first commercial bank of the

newly formed Islamic Republic of Pakistan, when the bank shifted its head office



there. And build the largest private sector bank that controlled an estimated 27%

of total bank deposits in the country and hand over 500 branches including many

overseas. Although primary functions were banking and finance, but it moved to

industry by the late 1950’s and developed interest in sugar, jute and textile.

HABIB BANK operated in the private sector until its nationalization in 1974

under the Bank Nationalization Act 1974. Thus the holding of Habib group was

lost. Throughout the decades, HBL has held the mantle of a dynamic leader, by

adding value to the lives of its customers. HBL has been approved for

privatization and the privatization commission has selected a Financial Advisor to

prepare a comprehensive plan and assist in the sale process. The government has

appointed a professional management team to restructure the bank and to recover

and clean its doubtful and classified portfolio. .

TODAY’S HABIB BANK:

Today, Habib Bank is truly the bank of the people, providing its customers

convenience and satisfaction all over the world. Habib Bank Plaza, the tallest

building in Pakistan, is the proud symbol of HBL’s leadership in Pakistan’s

corporate arena.Today, HBL has more than 1469 branches all over Pakistan and

presence in 26 countries across five continents. With a revamped customer

oriented philosophy, we are pursuing new avenues of leadership through

innovation, as it gear up to face the challenges of the new millennium.



Operational Structure:

Habib Bank Limited is one of the largest commercial bank of Pakistan. It

accounts for a substantial share (20%) of the total commercial banking market in

Pakistan with a network of 1469 domestic branches; 55 overseas branches in 26

countries spread over Europe, the Middle East, Far East, Asia, Africa and the

United States; 3 HBL wholly owned Subsidiaries namely Habib Bank Financial

Services (PVT) LTD. Karachi, Habib Finance International LTD

(Hong Kong) and Habib Finance Australia Ltd. – Sydney; 2 Joint Ventures

namely Habib Nigeria Bank Ltd. (40%) and Himalayan Bank Ltd. (20%) and 2

representative offices in Iran and Egypt.

COMPANY INFORMATION

AUDITORS:

TASEER HADI KHALID & Co.

Chartered Accountants

Sh. Sultan Trust Building No. 2

Beaumont Road

Karachi – 75530

Pakistan

A.F. Ferguson & Co.

Chartered Accountants



State Life building 1-C

1-1 Chundrigar Road

Karachi

Pakistan

REGISTERED OFFICE:

Habib Bank Limited

Habib Bank Plaza

1-1 Chundrigar Road

Karachi - 75650

Pakistan

HEAD OFFICE

Habib Bank Plaza1-1 Chundrigar RoadKarachi - 75650PakistanPhones: 2418000(50 lines)Fax: 2411647Telex: 20086-20751 HBANK-PK



BOARD OF DIRECTORS

ZAKIR MEHMOOD PRESIDENT &

CHIEF EXECUTIVE

SULTANALI ALLANA CHAIRMAIN

LAIN DONALD CHEYNE DIRECTOR

SAJID ZAHID DIRECTOR

AHMAD WAQAR DIRECTOR

SHAUKAT HAYAT DURRANI DIRECTOR

MUHAMMAD ISMAIL QURASHI DIRECTOR

ARIF MANSUR DIRECTOR



SENIOR MANAGEMENT DESIGNATION

Zakir Mehmood President & Chief Executive

Sohail Malik SEVP & Group executive Credit policy

Jamail Iqbal SEVP & Group executive Global operation

Shahid M.Loan SEVP & Group ExecutiveAudit, BRR & Investigation

Sima kamal SEVP & Group ExecutiveCorporate and investment

Banking

Ayaz Ahmad SEVP & Group ExecutiveInformation Technology, financial control

Hanif Akhai SEVP & Group ExecutiveGlobal treasuryJamil A. Khan

SEVP & Group ExecutiveHuman Resource s Retail banking

Aziz Rajkotwala SEVP & Group Executive International



FINANCIAL HIGH LIGHTS

Description

2004 2003

2002

2004growth %age

1 Total Deposits 404629 360648

328,182

12%

2 Total Assets 486982 434932

403,013

12%

3 Advances 258306 18354

167,523

41%

5 Liquid Assets* 143735 164533

147,822

-13%

6 Shareholders' Equity & Revaluation Surplus 31188 23485

19,498

33%

7 Liquid Assets % of Deposits from Customers & Bills Payable

35.41% 46.26%

47.36%

-232%

Profit & Loss

8 Total Net Income 23512 21364

18,564

10%

9 Total Expenditure 13783 9803

11,748

41%

10 Provision for non performing loan 2565 5804

5004

-56%

11 Pre Tax Profit 7146 5469

4,088

31%

12 Profit after Taxation 5680 4018

2,034

41%

13 Earnings Per Share (Rs. / Share) 8.21 5.82

1.68

41%

Others

14 Home Remittances

47423 46326 38,229 2%



15 Exports/Imports

296492 258157 214,590 15%

16 Number of Branches

1469 1,470 1,473 -

17 Number of Staff

18625 18800 19,005 -1%

ORGANIZATIONAL STRUCTURE

Ownership StructureShareholder Percentage (%)State Bank of Pakistan 73.047

Islamic Republic of Pakistan .783

Agha khan foundation for economic development 26.00

State Life Insurance Corp. of Pakistan 0.138

Other Public Bodies 0.05

Outstanding Shares (1,217,849,500) 100



STRUCTURE

PRESIDENT

SENIOR EXECUTIVE VICE - PRESIDENT VICE- PRESIDENT


VICE- PRESIDENT

ASSISSTANT VOICE PRESIDENT

OFFICER GRADE I

OFFICER GRADE II

OFFICER GRADE III

CASHIER

CLERCK


MISSION STATMANT AND OBJACTIVES

MISSION STATMANT The main logo of the bank shows a picture of a lion with a sword on the top on

the up most Portion BISMILLAH is written to show the supremely of God and

the symbol of lion shows the Quality of leadership that lies with the bank. The

reason for the statement the power to Lead.

As the bank has entered the new millennium, it wishes to appear as a bank that is

“LEADING LOCALLY AND GROWING GLOBALLY”

MISSION STATMANT OF HABIB BANK IS TO MAKE

Habib bank is the dominate financial institution in Pakistan and a leading bank of

the Middle East and South Asia regions.

OBJECTIVES The bank main aims to provide better and efficient services to its

Domestic and overseas customer .regarding the need for improving the financial

Performance of the company, following objective have been chalked out.

To take necessary steps to plug the leakages of revenue and expenses.

To insure internationally accepted accounting standard are followed by the bank



To correct the structural flaws in the balance sheet

To put greater focus on neglected sectors to correct sectored imbalances in the loan portfolio.

To achieve those objectives necessary steps have been taken by the management loss

making branches have been closed or merged.

MARKETING OBJECTIVE

To devolved country specific business revitalization strategies for important franchise to improve overseas operations.

To develop more branded proudest in saving deposits and consumer assets.

To increased the ATM network to further improve the banks market shears.

To establish sound relationship with top industrial groups and various multinationals.

To make the bank customer focused.

To launch innovative product as which cater to the needs of different segments of the market.



To increased the number of “ON LINE” branches

HRM 0BJECTIVES

To provide extensive training to employees in process ,products, marketing and

selling skills introduced.

Upgrading skills levels of staff.

To implement a performance appraisal process to provide motivation

and a merit oriented culture in the bank.



OPERATIONS

OF THE BANK



DOMESTIC OPERATIONS

For facilitation of domestic operations the retail banking group and the

corporate institution banking group is divided in to several distinct regions,

centers and sub centers comprising of

23 Regional head quarter

20 corporate centers

1469 branches

OVERSEAS OPERATIONS

For the facilitation of the overseas operations the bank has

55Branches

02 affiliates

01 Representative office

02 subsidiaries

WORK DONE BY ME DURING INTERNSHIP

I have worked as an internee in the Habib Bank limited Branch Kahror pacca for

eight weeks. During my internship I learned a lot about the banking work. The

branch was quite small comparatively with others but it had all departments. I

tried my best level to gain from this internship experience.



On first day I reported to the branch manager and he guided me and gave me

information about the branch. In first week he had given me information about the

overall banking in this branch. He told me about the departments of the bank and

some other basic information about the bank, cheques, records, etc.

In the next week he told me that now I have to start work in the different

departments. I started my internship from account department.

The most of the working was conducted in this department. There was a lot of

burden of work in this department. In this department the following major

activities were

a) Account opening.

b) . IBDA’s records and preparation.

Account opening.

In this department daily many people came for open the accounts according to

their own choice of account. In PLS Saving account and current account

procedure of opening of account is the same except the initial deposit.

The account opening form contains the following information’s.

The type of account which any person want to be open, he

has to select that.

Nature of account whether individual or proprietorship or

other.

Currency (in which want to operate).

Particular of deposits. (Period for operation).

Complete address.



Telephone number.

Nature of business etc.

Detail of other accounts.

Zakat deduction.

Personal information.

Name.

Date of birth.

Nationality etc.

Then signatures of the account holders and the bankers and

manager.

Signature of the introducer, his account number and address.

When this form is filled then signature of the person who want to open the

account are to be taken on the specimen signature card. Then it is recorded in the

PC. Then after a week letter of thanks when received by the person then a cheques

book is issued to him. Now he can withdraw the amount by fulfilling cheques up

to the extent of his balance, in the account.

In that account opening I also write the letter to the customer.

There are two letter are written while opening the account

1. New customer

2. Introducer of new customer

These are printed letter on which just write the name of person and his addresser

written in the form.



Preparation of cheque book;

I issued cheques books in the account opening department. The cheques book is

issued after opening of the account. The Account No. is stamped by the rubber

stamp on each cheque. Then it is given to the person.

When all cheques books are issued to the customers then these are recorded in the

CD Book or PLS saving book. All cheque books are recorded with their a/c

number and name of the person.

Preparation of IBDA

I prepared in this department IBDA Inter Branch Debit Advice. If for one branch

it is IBDA transition then it is for branch is IBCO. (Inter branch credit advice).

IBDA Transition:

For example transaction between satellite town Branch and Model Town

Branch is as follow.

If the customer of satellite town branch withdraw money from Model Town

branch.(use) this branch will debit the account of satellite town branch with

IBDA. Davis road branch will receive the slips that the person has used the ATM

machine there. When money is withdrawn then Habib Bank satellite town branch

will credit the Model Town branch. After transfer of cash from branch the account

will be settled.



Cash department

I spent one week in the cash department here I issued token to the customers and

then recorded it into the token book. The procedure of issuing the token is that

when cheque is presented at the counter. Then following things are checked.

The signatures on front and at the back.

Similarities in the signatures of the issuer of the cheque.

Date.

Amounts whether tally with the amount written in words.

Then token is issued to him and cheques are stamped at the back at which date

and token no. is filled. Then all cheques are forwarded to the next counter where

signatures are compared with the signatures in the book and the balance of the

account is checked.

If the cheque has not any fault on it then it is given to cash payment counter and

cash is paid to the customer up to the amount mentioned on the cheques. I spent

one week in this department.

I also completed their pending token books also.

Advance department

I also spend some time in the Advance t department .the loans available in our branch are

1-FLAXI LOAN

2-AGRI LOAN

3-CONSUMER FINANCE



4-BUSNIERES LOAN

These are the main types of loan which is future categriosed in different ways.

I check there the procedure of different loans

Documents required

Capacity of the party

Purpose of loan

FIELDOF ACTIVITIES/DEPARTMENTS OF A BANK

The main departments of a bank are as follow

1. Deposit department

2. Accounts department

3. Advances department

4. Bills and remittances department

5. Foreign exchange department



1).Deposit department

The function of deposit department is to collect cash from the customers and to

deposit it into the accounts, maintained by them. Their classification is based

onduration and purpose for which the account is maintained. The following typs

of accounts are maintained for this purpose.

Current account

Saving account

Fixed account

a. Current account

A current account is a running account is a running account which

icountiniously in operation, by the customers on all working days of

the bank. The customers can withdraw the amount from the bank

without prior notice. The bank usually donot pay any interest on these

deposits as they can withdraw without notice

These accounts are operated normally by the traders, business companies,

institutions, public service bodies, industrialists etc.

Summing up, the current account does not earn but serves the cause of

industry, trade and commerce.

b. Saving deposits account

This type of account is for those persons who want to make small savings. The

depositors are allowed to withdraw a limited amount of money for twice a week.



The banks will keep a minimum account and the balance be safely utilized

forinvestment by the bank.

The bank pays interst on saving bank accounts according to the prescribed

rates by the centeral bank of the country.

c. PLS saving account

In pakistan (PLS) saving account was introduced in January ,1982.

-The bank has full right to investment of credit balances /deposits in

the PLS saving accounts.

- statments of accounts willbe supplied on periodical intervals.

The following informations are required to be furnished

1. Name

2. occupation and full address

3. Specimen signature

4. Introductory refrences

5. Declaration that he will follow them

D.Fixed or time deposit

Fixed or time deposit are the major source of funds of a commercial bank.

The rate of interest on fixed deposits is higher them that of saving deposits

and it varies with time to time. The longer the period for which the amount

is kept higher is rate of interest. The fixed deposit receipt (FDR) is marked



as not negotiated. The holder of time deposit account cannot issue cheque

for the withdrawl of the amount.

E.Joint account

A joint account is a special bank account which is opened in the name of

two

or more persons. For drawing amount all persons whose name the

account stands should sign the cheque.

In case of firms or companies a/c following are the requirement

To open the account of firms or companies the following are the essentials.

-List of the office bearers.

-List of authorized signatures.

-Copy of memorandum or by laws.

-Copy of registration.

-In case of joint stock companies

-Certificate of incorporation.

-Certificate of commencement of business.

-Beside NIC copies.



Cash department

The cash department is the most important department of the bank. It

receives cash from customers and then deposit it into the accounts of the

customers and maintained their balances

In cash department following books are maintained..

I. Scroll book

II. Paying cash book

III. Token book

IV. Cash balance book

1. Scroll book:

When cash is received at the counter it is recorded in the scroll

book.

1. Paying cash book:

The cashier makes entery in the paying cash book when cash is

paid.

2. Token book:

When any cheque or any negotiable instrument is presented it is recorded in

the token book then token is issued.



3. Cash balance book:

The consolidated figure of receipt and payment of cash is entered in cash

balance book.

Accounts department

There are two ways of maintaining an accounts

Journal system

Voucher system

Journal system

Under this system entries are journalized in journal book and then

posted in ledger account. Their entries are maintained in journals.

Voucher system

In voucher system for each transaction voucher is prepared, either in

cash or in transfer or in clearing all vouchers are summarized to the one

consolidated figure and are recorded in cash –cum- daybook sheet upon which

vouchers are summarized according to the transition wise suit is called

supplementary.

These are of 2 types.

Debit supplementary

Credit supplementary



Debit supplementary is for debit vouchers and it is of red color

Credit supplementary is for credit vouchers and it is of green color

The following books are maintained in accounts department.

1) Cash cum day book.

2) General ledger.

3) Subsidiary ledger.

4) Voucher register.

5) Transfer book.

6) CD/SB summery book.

7) Balance books.(Weekly and monthly)

8) Old record register.

9) Bank ledger.

10) Fraud and forgeries register.

11) Comparative statistics cards of deposits.

12) Advances and profit and loss.

Why account is open.

It is not safe for private individual to keep their surplus money at home. They can

keep their money in safe custody by opening accounts in a bank. They can open

deposit accounts for fixed period. The deposit account also earns interest for the

depositors. Again the businessman conducts transaction is for thousands of rupees

daily. It is unsafe to keep so much cash in hand for carrying on business



transactions. They may put their money with some banks by opening deposit

accounts. Now they can draw cheques for settlement of transactions without

involving cash.

Procedure of opening of an account:

There are certain formalities which are to be observed for opening of a current

account or saving a/c. With a bank, these formalities are as

1) Request of opening of an account.

2) Obtaining introduction

3) Specimen signatures

4) Minimum initial deposit

5) Operating the account / cheque book

1).Request of opening of an account.

The customer has to fill an account opening form . it is a formal request by

a customer to the bank to allow him to have and operate the current or

saving account

2). Obtaining introduction.

The bank before opening an account obtains introduction of the customers

from an old customer, responsible person etc.

3). Specimen signatures.

When the banker satisfied about the information’s provided in the form

hen the banker obtains the specimen signatures of the customer on the

signature book or on card. The duty of a banker is to verify customer’s



signature on the cheques with his specimen signature in order to ascertain

whether there has been any forgery or fraud.

4). Minimum initial deposit.

In Pakistan to open up an account in the PLS account is up to Rs.1000/- it

is the minimum requirement. However the account of zakat dependent can

be opened by Rs. 200

5). Operating the account./ cheque book.

When the account is operated the banker gives a pay-in-slip book, cheque

Book, pass book with the view to operate it.

Books relating to customers:

Pay-in-slip

Cheque book

Pass book

Pay-in-slip

When money is to be deposited in the bank the pay-in-slip is to be filled,

the object of this book is to provide the customers with the bank’s

acknowledgment for receipt of money to be credited his account.

Cheques book.

A cheque book contains a number of cheques which is given to a customer

upon written request and after making payment for the cheque book. It

enables to a customer to make withdrawals from his account.



Pass book.

Is a copy of customers account as it appears in the books of the bank. Pass

book is a book in which the banker maintain the record of its customers

account for later use. The because it passes hand periodically between the

banker and the customers. On delivery of pass book the customer examine

the debit and credit eateries with its cheque book and bank receipt

challans. But now a days this concept of pass book is

ended and computerized account statement send to the customer semi

annually or on the demand of customer bank is bounded to give him the

account statement.

3). Advances department

The function of advances department is to lend money in the form of clean

advances. Against promissory notes, as will as secured advances against tangible

and marketable securities. The bankers prefer the securities which are free of risk

of depreciation.

Deposits lead to advances and advances create deposits. Advances to a

variety of customers are the sure method of enhancing income and promoting

expansion of a bank.



Types of advances:

The main types of advances are as follow.

1). Overdraft.

2). Cash credit.

3). Loans.

1). Overdraft.

“An overdraft is the right given by a bank to his customer to draw

in excess of his current account up to a fixed limit.”

The facility to overdraw by cheques is allowed only in current account. The

overdraft facility enables a customer to draw over and above his own balances up

to the extent of limit as agreed. The bank does not provide the facility of overdraw

on checking accounts to all of its customers.

a. Clean overdraft.

Advances for which the bank no security except the personal security.

b . secured overdraft.

Advances for which bank has security other then his personal

security.

1. Against lien on third party account.

2. Against immovable property, equitable mortgage

collateral.



c. cash finance.

Cash finance may be allowed within discretionary powers of the branch

managers to first class parties keeping in view their credit worthiness,

overall business and average balance maintained in their account.

2).Cash credit

a cash credit is an arrangement by which a banker allows a customer to borrow

money up to certain extent cash credits are usually made against securities of

commodities hypothecated or pledged with the bank.

Pledge

Pledge is a contract whereby a good is deposited with the lender as

security for repayment of the loan. The delivery of documents of title

relating to goods also create a valid pledge. The person delivering the

goods as security is called pledger. The person to whome the goods is

delivered is called the pledgee.

Hypothecation:

It is a legal transaction where by goods may be made available as

security for a debt without transfering property or the possession to the

lender.

Advances granted under hypothecation are not secure from safety

point of view. The bank should make sure that the party has a good

reputation, which property regularly.



3). Loans

Banks may make advances to its customers which may be payable in lump sum or

in installments. Loans may be.

a). clean loans

This is granted to borrowers without obtaining any security. Example flexi loan

b).Secured loans.

Loans which bank has security other then its personal security.

These are issued against the pledge, hypothecation, property and cash etc.

c).Small loans.

These are the loans which are sanctioned for small size projects.

The loans may be call loans or loans repayable at short notice. These are the loans

repayable which bear no maturity date. They can be paid at anytime. These are

normally secured by other assets.

The other kind of loan is loans repayable at short notice; these are short term

loans and are repayable at short notice. These are widely used in the financing of

seasonal increase in the working capital and the temporary financing of capital

expenditure these loans are obtained by manufacturing concerns to meet the

financing of working capital expenditure.



Agriculture loan

Haryali agricultural finance scheme

Tractor finance scheme

LIVE STOCK FINANCE SCHAME

1-Haryali agricultural finance scheme: Habib is providing creditability to the farmers according to

instructions of state bank of Pakistan under the agricultural Haryali finance

scheme. The Haryali credit scheme is a best section of every agricultural need.

According to this scheme the credit is provided on easy installment for

productive and installment for productive and improvement purpose.

The basic purpose of Haryali finance scheme is to provide credit in time to

overcome agricultural needs, so that they earn profit from forms by using modern

technology.

Basic conditions to get Habib Bank Haryali scheme:

Tenant has a NIC covered.

A computerized NIC cord is to provide to Bank from getting loan.



An attested copy of receipt can also given with old NIC in case of

computerized is not available.

The rate of mark up on this scheme is 11% lowest mark up rate as compared

to the other scheme like flexi or life style loan

2- Tractor finance scheme.

Under this scheme finance is allowed to cultivator/land owners cultivating

minimum 5 acres of agricultural land,

Finance is allowed from a period of 5-7 years repayable in half yearly

installments, a minimum debt/equity ratio of 90:10 is maintained, mark up of

11% p.a. is charges however in case of timely adjustment of all installments at

time of last installment mark up is recalculated at 9%p.a and 2% amount is

adjusted towards last installment.

In case of cash collateral no equity is needed and mark up is charged at a rate of

2% over the Bank profit.

In case of NSCs, DSCs etc., a mark up of 8% p.a. charged.

Special effort have been made to promote tractor finance and during the year

2003-2004 HBL has disbursed 3850 tractor up to MAY ,2004 against 1598

tractor distributed last year



3-LIVE STOCK FINANCE SCHEME

The scheme has been introduced to promote the following sub-sector.

1- Live stock /diary farming.

2- sheep /goat farming

3- Fattening of animals for beef purposes.

4- Poultry

Finance is allowed at a mark up rate of 11%p.a. for fixed investment purposes as

well as to meet the needs of working capital requirement to all categories of

farmers all over Pakistan including Azad Kashmir area. Finance is repayable in a

maximum period of 5 year time period in easy installment.

Flexi loan

Flexi loan

A special scheme of Habib bank limited for the employee of govt. and semi

govt .institute. This is a clean loan no any security has been taken from the

employees of the organization. Just salary of the employee is transferred in the

account of the client.



Basic requirements for the flexi loan

He must be employee of listed organization

He must be account holder of the bank

His salary is transferred in his account

His job at least one year

Document required for flexi loan

Letter from employer

His last month salary slip

His account statement

60 post dated cheques

Rate of mark up on flexi loan

The rate of mark up on flexi loan is different for various departments

For the armed forces

The rate of mark up is 13.5%

The DSR factor is 35%

For the civil person

The rate of mark up is 14.5%



4) Bills and Remittances department

The main function of bills and remittances department is to deal mainly in

following.

A. Outward bills for collection (OBC)

B. Inward bill for collection(IBC)

A. Outward bill for collection

1. Clean bills

These are negotiable instruments drawn on out station branches of the bank, sent

for collection on behalf of the customer’s i.e. cheques drafts etc.

2. Documentary bills

These are bills accompanied by documents such as R.R, T.R bill of lading etc

having title, collected on behalf of their customers. if payment is made other than

cheques then this mode is used. it is an arrangement between 2 parties. Banks

plays role as an agent. Documentation is properly drawn between 2 parties. But in

99 cases clean bills are used.

B. Inward bill for collection

These are bills received locally. They are received from out station branches of

the bank and parties drawn on recipient banker or other banks or parties.

The main documents invited in bills and remittances department are as

follow.

1. demand draft

2. Pay slip



3. Mail transfer MT

4. Telegraphic transfer

5. Pay order

1. Demand draft

Demand draft is an instrument which is drawn by one branch to another

branch of the same bank. If any person wants to make payment from one city to

another city then he can make payment through demand draft. Bank charges a

commission for performing this kind of service according to bank rate schedule

which is revised after 6 months. Demand draft may be issued or paid.

2. Pay slip

For payment of internal expenses of the bank the pay slip is used. For e.g tax

payment, by bank, repair and maintenance expenses, repair and maintenance

expenses etc.

3. Mail transfer (MT)

Bank to bank remittances are transferred through mail. Its charges are same as of

DD plus additional 60 rupees. Mail transfer advise is use against cash receipt ,

cheque, and letter of instrument.MT advise is prepared and test number is written

on this MT advise. The advise is given to dispatch department for onward

transmission.

4. Telegraphic transfer.

It is a bank to bank transaction the issuing bank makes payment on payment

order. The beneficiary (3rd party) not directly involved in it. Two other mode of

this transactions are



telephonic transfer

Fax

It is a coded massage by one bank to another bank. Each bank has its own code

number first they write the massage in the code form and after this they apply its

test number on it. Two types of instructions can be issued by the bank for T.T.

a) Advice in pay

b) Advice in credit.

a). Advice in pay

In this case the party on which the T.T is drawn, if not having its account

in this bank it means they are not the account holder of this bank, bank

informs the party that its T.T has came and to come and to open the

account and to receive the amount.

Bank charges according to the bank schedule. Bank makes payment to the

party after opening the account in the branch.

b). Advise in credit.

In this case the party having its own account in the same bank where the

T.T has came in their names the bank simply credit the account of its

customer.

5. Pay order

pay order is just like a cash. If someone want to make payment to some other

person he can make payment through pay order slip. The main advantage of pay

order is that it can not be dishonour by the bank when payment is required to



made within the city then we can take this bank service and when we want to

make payment outside the city then we use demand draft in case of cheque there

is a possibility that it can be dishonour by the bank but it case of pay order we

have surity that it can never be dishonour.

5).Foreign exchange department

The main function of foreign exchange department is to facilitate the import and

exports by opening up of letter of credit the banks provide to its customers. There

are 2 types of facilities.

1. fund based

2. Non fund based.

Fund based facilities are those facilities which involve cash but non fund

based facilities are those which do not involve cash. Letter of credit is a fund

based facility. Foreign exchange department also deals in the foreign

currency.

Letter of credit:

“A letter of credit is a commitment on the part of buyer’s bank to pay

or accept draft drawn upon it provided drafts do not exceed a specified

amount.”

Why banks deal in letter of credit:

The bank charge nominal commission on financing the import and export

shipment

The main benefits for opening it are



-Increased balances.

-Commission.

-New business opportunities.

Procedure of opening a letter of credit:

The letter of credit is opened by filling an application with the bank and following

information should be provided to the bank.

1. name of beneficiary (seller)

2. Complete address of beneficiary

3. Type of letter of credit whether Revocable or irrevocable

4. mode and time of payment

5. Description of goods

6. Payment of freight

7. Detail of documents

8. Place &date of shipment

9. The date of expiry of credit

10. How the credit is to be advised by mail, cable, telex etc.

Foreign exchange department also provide facility to financing the exports by

-advising export credit

-collection of negotiation of foreign bills

-receiving payment from aboard by means of remittances.

-allowing packing credit facility to exports.



MISCELLANEOUS FUNCTIONS OF

ALL DEPARTMENTS



ON LINE BANKING

Many branches and checking accounts Habib Bank Limited are linked through

satellite. It provides the facility of transaction with each branch while sitting

on any branch of Habib Bank.

On Line Transaction are of three types:

Cash Transaction

Clearing Transaction

Transfer Transaction

The clients can shift their amounts from one branch to another branch. Their

cheques can be cashed. On line banking is miscellaneous activity that is

performed in almost all the department of Habib Bank.

Charges for inter-branch in line transitions

There are no charges recovered with in the same city.

No charges from the customer maintaining Rs. 200,000 in their

current accounts other wise charges will be recovered according to

the schedule.

Schedule charges:

Up to Rs. 25,000/- Rs. 50/-

Up to Rs. 200,000/- Rs. 100/-

Rs. 200,001 to 500,000 Rs. 250/-



Rs. 500,001 to 200,000 Rs. 500/-

Collection account(companies only)

Opened with the approval of head offices Rs 750/-

Lockers

One of much appreciated facility offered by a bankers to his

customer is that of keeping in safe custody, valuables if various

kinds, including securities, and documents of title of property.

Frequently such items deposits in a locker box or sealed envelope, in

which case the banker takes no cognizance of the contents. A part

from providing the facility for accepting the valuable for safe

custody, safe deposit lockers are also made available to customers on

nominal rent

Documents required for a locker facility:

Locker opening form.

Specimen signature card.

Copy of NIC of the client.

SAFE DEPOSIT LOCKERS CHARGES:

Fee for safe deposit lockers to be recovered in advance or at the commencement of the period yearly/half yearly/ quarterly as the case may be:

Small size Rs. 1000 per annum or nil on refundable key deposit of Rs. 15,000/-



Medium size Rs. 1,500 per annum or nil on refundable key deposit of Rs.20,000/-

Large size Rs. 2,500per annum or nil refundable keys deposited of Rs. 35000/-

Extra large Rs. 3,000per annum or nil refundable keys deposited of Rs. 45000/-

Extra Extra large Rs. 5,000per annum or nil refundable keys deposited of Rs. 75000/-

Automatic teller machine

Habib bank has introduced ATM (automated teller machine) in Pakistan for its

customer. Electronic cash dispensing facilities are available in various cities. in

due course of time, it plans to install more ATMS and extended this on line

facility to other operating centers of the bank. All these ATMS are linked through

a state –of- the- art satellite based communication system offering real time 42-

hour service. ATM card is a debit card and cash withdrawal transaction is

performed with its used as well as customer can check balance and have its

account statement. By using this card a client can with drawl the amount from 500

to 20,000 rupee in 42 hours

In order to get an ATM card

Customer should be an account holder

Application from is filled

Spaceman signature card is filled



Application is forward to head office .Within to 10-15 days bank receive the

ATM card and pin codes and hand it over ton the respective customer after taking

his signature. Bank charges are Rs. 200 per annum

Working of ATM card:

When client enters his card in machine, it asks for the pin code. If he enters a

wrong pin code constantly three times, then machine captured the card. This

secured the transition .this increased the safety of the customer card. After the

client has given a correct pin code, he can safely perform his transition. After

getting the amount from ATM machine customer get a small statement of his

account which contains the following,

Pervious balance

Transaction amount

Current balance

Date

Time of transaction

Account number

Name of customer

ATM’S AVAILABLE FOR HABIB BANK CUSTOMER

Habib bank Limited has arrangement with other bank to use their ATMS where

Habib bank ATM is not available. When a client uses an ATM of these other

banks, Rs. 15 per transition are deducted from his account as ATM charges.



KARACHI

HABIB BANK LIMITED

SONERI BANK

ASKARI COMMERICAL BANK

LAHORE

SONERI BANK


ABN –AMRO BANK

ISLAMABAD/RAWALPINDI

SONERI BANK


ABN –AMRO BANK

MULTAN

HABIB BANK LIMITE


SIALKOT

HABIB BANK LIMITE




FAISALABAD

HABIB BANK LIMITED

PESHAWAR

HABIB BANK LIMITED

GUJRANWALA

HABIB BANK LIMITED

HAYDERABAD

HABIB BANK LIMITED


AZAD KASHMIR

HABIB BANK LIMITED

BAHAWALPUR

HABIB BANK LIMITE

CREDIT CARD

Habib Bank offers a range of credit cards, accepted at thousands of locations in

Pakistan.

These cards facilitate the small financial, needs of customers like shopping of

goods or any short term financing. Limit of credit card depends on the average

balance in the account and monthly income. One of the requirements to issues

credit card is that the applicant should be the account holder of the bank.



Documents required for credit card

Application form of credit card

Photocopy of national identity card

Passport size photograph

Salary certificate

Last six month income certificate



FINANCIAL ANALYSIS Habib bank LIMITED

PROFIT AND LOSS ACCOUNT

FOR THE YEAR ENDED DECEMBER 31,………Year 2005 2006 2007 2008 2009

Rupees in (000)

Total Mark up/Interest Income 12,246,811

21,191,470

25,783,871

30,966,638

35,561,312

Total Mark up/Interest Expense 7,204,992

15,232,886

16,620,963

20,494,355

24,654,180

Net Mark up/Interest Income 5,041,819

5,958,584

9,162,908

10,472,283

10,907,132

Provisions against loans and advances 402,298

697,690

2,370,867

2,035,997

3,694,546

Other provisions 4,236,711

4,561,667

4,415,330

4,892,929

3,141,059

Net mark up/int income after provisions 4,639,009

5,259,357

6,786,197

6,928,926

6,835,605

Non Mark up/interest income 2,268,533

3,224,639

6,038,466

4,822,924

5,182,253

6,907,542

8,483,996

12,824,663

11,751,850

12,017,858

Non Mark up/interest expense 4,344,252

5,918,051

8,289,111

9,957,130

11,001,542

2,563,290

2,565,945

4,535,552

1,794,720

1,016,316

Extra ordinary/unusual items - - - - -

Profit before Taxation 2,563,290

2,565,945

4,535,552

1,794,720

1,016,316

Tax 861,196

803,254

1,405,323

493,419

119,281

Profit after Taxation 1,702,094

1,762,691

3,130,229

1,301,301

897,035

Unappropriated profit 860,300

1,886,845

2,823,072

4,851,840

3,447,467

Transferrred on revaluation of assets 24,870

26,074

24,585

24,586

24,696

Profit available for appropiation



2,587,264 3,675,610 5,977,886 6,177,727 4,369,198

Basic/Diluted earning per share 4

3

5

1

1

Habib bank Limited

Balance Sheet

As on December 31, ……

2005 2006 2007 2008 2009

Assestscash and advances with treasury 24798070 27859360 29436378 32687335 35056012 balance with other bank 9713369 12731952 18380738 21581043 22722639 lending and financial instittution 27050493 12456653 3452059 3315500 14947435 investment 57416255 56502210 88491654 75973238 99159957 Advances 118864010 149999325 171198992 191790988 188042438 Fixed assets 6620067 10502990 11922324 13773293 14492194 deffered tax assets - - - - -other assets 3851529 5633051 6013097 9869367 14649380

248313793 275685541 328895152 348990764 389070055

Liabilities:bill payable 3733124 3091135 4138243 3452031 3766144 borrowings 5844389 8394130 21230697 13690222 20653921 deposit and other account 222345067 239509391 273173841 300732858 324759752 Sub-ordinate loan 3223355 3222106 3220858 2571169 7570181 liabilities subject to finance lease - - - - -differed tax liabilities 484066 1921338 1379809 208465 179851 other liabilities 5219666 7305496 9531860 11291280 10006786

240849667 263443596 312675308 331946025 366936635

Net assets 7464126 12241945 16219844 17044739 22133420

Represented by:Share capital 3000000 5000000 6500000 7995000 13491563 reserve 1851218 2749533 2414833 3166056 3587969 unpropriate profit 1886845 2823072 4851840 3447467 2690728

6738063 10572605 13766673 14608523 19770260 surplus- net of tax 726063 1669340 2453171 2436216 2363160

7464126 12241945 16219844 17044739 22133420



Ratio analysis

ADVANCE TO DEPOSIT RATIO

Formula:

Advance/ deposit:

Year 2005 2006 2007 2008 2009

% 53.46 62.63 62.67 63.77 57.9

INTERPRETATION:

Since the computed value of advance to deposit Ratio is showing an

increasing trend in FY 2006. Then it tends to decrease in FY 2007 and

show slight increase in year



2008 but decrease gradually in FY 2009, the over all trend is fluctuating.

The factors of this computation are due to increase in total deposits.

It is therefore suggested that the bank should review the policies regarding

deposits and advances. However, the bank improve its ratio by maintain

more advances.

RETURN ON AVERAGE ASSET

Formula:

Net Operating Income/ Total Assets

Year 2005 2006 2007 2008 2009

% 0.84 0.67 1.04 0.38 0.24

INTERPRETATION:



Since the computed value of ROA Ratio is showing a decreasing trend in

FY 2006. Then it tends to increase in FY 2007 and showing gradually

decreases in FY 2008-09. The over all trend is decreasing.

It is therefore suggested that the bank should review the policies regarding

assets keep deposit expenses low and improve operating activities.

RETURN ON EQUITY

Formula:

Net Income/Stockholder Equity

Year 2005 2006 2007 2008 2009

% 30.65 20.37 25.72 9.17 5.22

INTERPRETATION:



Since the computed value of ROE Ratio is showing a decreasing trend in

FY 2006. Then it tends to increase in FY 2007 and showing gradually

decreases in FY 2008-09. The over all trend is decreasing.

It is therefore suggested that the bank should maintain its expenses related

to deposits and improve its income status by offering more advances to

clients.

CAPITAL ADEQUACY RATIO

Year 2005 2006 2007 2008 2009

% 8.66 9.48 9.85 8.03 12.46

INTERPRETATION:



Since the computed value of capital adequacy Ratio is showing

slightly rend in FY 2006-07. Then it tends to decrease in FY 2008 and

showing gradually increases in FY 2009. The over all trend is

fluctuating.

GROSS SPREAD RATIO

Formula:

Net markup Income/gross markup income

Year 2005 2006 2007 2008 2009

% 41.17 48.12 35.54 33.82 30.67

INTERPRETATION:



Since the computed value of gross spread Ratio is showing a increasing

trend in FY 2006. And showing gradually decreases up to the FY 2009.

The over all trend is decreasing.

It is therefore suggested that the bank should reduce its interest expenses

paid on deposits and increase interest income that is earn on advances.



PROFIT BEFORE TAX RATIO

Formula:

PBT/Gross markup income:

Year 2005 2006 2007 2008 2009

% 20.93 12.11 17.59 5.80 2.86

INTERPRETATION:

Since the computed value of profit before tax Ratio is showing a

decreasing trend in FY 2006. It tends to increase in FY 2007 but

showing gradually decreases up to the FY 2009. The over all trend is

decreasing.

It is therefore suggested that the bank should reduce its tax and other

expenses and maintain its operating activities in order to increase its net

income.



INCOME TO EXPENSE RATIO

Formula:

Income/Expense:

Year 2005 2006 2007 2008 2009

Times 3.34 4.13 3.84 3.59 3.7

INTERPRETATION:

Since the computed value of income to expense Ratio is showing a

increasing trend in FY 2006. It tends to decrease up to the FY 2008 but

showing slightly increases in the FY 2009. The over all trends remain

same.



It is therefore suggested that the bank should improve its interest

income by giving more advances and reducing its interest expense on

deposits by opening more currents accounts.

BASIC EARNING PER SHARE

Formula:

Earning available to common share holder/Total no. of shares

Year 2005 2006 2007 2008 2009

% 3.92 2.91 4.82 1.41 0.71

Interpretation:

Since the computed value of EPS is showing a decreasing trend in FY

2006. It tends to increase in FY 2007 but gradually decreases up to FY

2009. The over all trends decreasing.



RESERVE TO TOTAL LOAN RATIO

Formula:

Reserve /Total Loan

Year 2005 2006 2007 2008 2009

% 1.56 1.83 1.41 1.65 1.91

INTERPRETATION:

Since the computed value of reserve to loan Ratio is showing an

increasing trend in FY 2006. It tends to decrease in FY 2007 but

showing gradually increases up to the FY 2009. The over all trend is

increasing.



It is therefore suggested that the bank should maintain its reserves in

term of foreign and local currency to offering more loan to clients.

LOAN TO TOTAL ASSET RATIO

Formula:

Loan/Total Assets:

Year 2005 2006 2007 2008 2009

% 47.57 54.41 52.05 54.96 48.33

INTERPRETATION:

Since the computed value of reserve to loan Ratio is showing an

increasing trend in FY 2006. It tends to decrease in FY 2007 but



showing gradually increases in the FY 2008 but again decrease in FY

2009. The over all trend is fluctuating.

It is therefore suggested that the bank should maintain its assets

position and improving financial position by increasing interest on

advances.

Equity to Assets Ratio

Formula:

Stockholder Equity/Avg. Total Asset

Year 2005 2006 2007 2008 2009

% 5.43 4.04 4.55 4.31 5.36



INTERPRETATION:

Since the computed value of equity to assets Ratio is showing a

decreasing trend in FY 2006. It tends to increase in FY 2007 but

showing decreases in the FY 2008 but again increase in FY 2009. The

over all trend is fluctuating.

It is therefore suggested that the bank should maintain its reserve

position and net profit by increasing interest income on advances.

EQUITY TO TOTAL DEPOSIT RATIO

Formula:

Stockholder equity/Total deposits

Year 2005 2006 2007 2008 2009

% 3.03 4.41 5.04 4.86 6.09



INTERPRETATION:

Since the computed value of equity to deposit Ratio is showing an

increasing trend up to FY 2007. It tends to decrease in FY 2008 but

showing slightly increases in the FY 2009. The over all trend is

increasing.

It is therefore suggested that the bank should decrease its interest

expenses on deposit by opening more currents account than saving

accounts.



LAIBILITY TO ASSET RATIO

Formula:

Total liability/Total assets

Year 2005 2006 2007 2008 2009

% 96.99 95.56 95.07 95.12 94.31

INTERPRETATION:

Since the computed value of liability to assets Ratio is showing a

decreasing trend up to FY 2007. It tends to increase in FY 2008 but

showing slightly decreases in the FY 2009. The over all trend is

decreasing.





accounts.

DEPOSIT TO LIABILITY RATIO

Formula:

Total deposits/Total liabilities

Year 2005 2006 2007 2008 2009

% 92.32 90.91 87.37 90.60 88.51



INTERPRETATION:

Since the computed value of deposit to liability Ratio is showing a

decreasing trend up to FY 2007. It tends to increase in FY 2008 but

again decreases in the FY 2009. The over all trend is decreasing.



accounts and giving more advances and maintain more reserve accounts



SWOT ANALYSIS STRENGTHS

HBL is a leading financial institution in terms of market share. It has a big

market share in the domestic market.

In terms of product design capabilities in relation to competitors, bank has

been leading so far, right from 1947. HBL has introducing innovative

products in the country i.e. Rupee traveler cheques, Flexi loans

HBL is the oldest bank in the history of banking in Pakistan it was

founders of Habib Bank who presented a bank cheque to Quaid-e-Azam

HBL also provided funds for the establishment of SBP.

It is the only Pakistan bank with the largest overseas net work which

consists of 71 branches in 21 countries.

HBL has largest net-work mode and customer base in Pakistan with 1469

branches in Pakistan.

HBL is in dominating position in Pakistan terms of deposits, advances and

assets.

The organization uses a differentiated marketing strategy with a different

marketing mix for each segment.



Keeping in view the need of time the bank has automated its operations

like providing ATM services

Bank has launched his credit card.

Bank charges are lees then other banks

WEAKNESSES

A few branches are on line and have a universal access account.

Few ATM are available for the customer of the bank.

Rate offered on PLS are very lees as compared to the other banks

No specialist person is for the simex in the branches.

Employees are less in the branches while regional offices are over staff .

The pays of the employees are comparatively less and there are no clear

criteria for the promotion

Rate of mark up charged from customer are high as compared to other banks.



OPPORTUNITIES

With the largest work of branches, with highly qualified staff bank

provides the quality of service and support to the customers and

retain its leading position.

Bank should target segments like soft-ware energy pharmaceutical

and communications which have potential for grew

As bank has minimum charges by installing the ATMS he can

grabbed more market share.

Due to privatization management is free for decision making.

Bank can increase his revenue by focused on flexi loan.

THREATS

Almost of the foreign banks that operations in the bigger cities only and

are concentrating on individuals of higher income and blue chips

companies they are taking away the mark from bank.

As most of the loans are stuck up there are fewer tendencies to more loans

thus giving a low loan

Products and services introduced by HBL in the past have been copied and

followed by other commercial banks.



The bank has to deal with increasingly thought competitions in domestic

market from Nationalized foreign and private sector banks.

The schemes of National savings are a threat for Habib Bank Limited.

They offer higher rate of interest.

. Habib bank is the bank of most educational institute but due to bad

policies most of institute shift their account to U.B.L

8.1 Conclusion

HBL Bank is one of the strongest and giant banks of Pakistan. It has the largest

network of ATM and Online Branches. This is the reason why it has a large

market share and competitive edge over its competitors. HBL has a risk aversive

and conservative investment policy. Its preference is a secure and diversified

investment, unlike other banks. This the main reason behind lowest bad-debts rate

and strongest investment portfolio of HBL among other banks of Pakistan.

Most of the work done is manual at HBL. It is the major drawback at HBL.

However, it is converting its entire record keeping and maintaining procedures

and systems computerized. This manual system helped me a lot in understanding

the basic procedures and concepts.



The HBL Staff is found to be efficient and devoted towards their work. Every

employee is the best-match for his or her concerned department and has in-depth

knowledge of all procedures and functioning in that department.

The experience at HBL was very much informative and pleasant. This internship

program resulted in my orientation towards the practical banking. Moreover, it

benefited in a way that whatever was studied at campus, this internship program

resulted in implementation of

those concepts. I had the chance to implement my concepts of Financial

Accounting, Financial Management, Marketing and Management. Moreover, I

observed how a practical life is different from the theoretical life. Indeed, this

internship program will help me for future as well in my studies and professional

life.

SUGGESTION

Staff should be provided professional training in marketing, selling, finance and computer.

. It will be helpful in sharpening their abilities and developing their skills.

Bank should emphasize on hiring of business graduates and computer experts for the simex system.

ATMs should be installed in small cities as well.

The political influence should be minimized on all type of the operations of the bank.

Advance for non-productive investment should be stopped.



The influence of employees union should be minimized.

Implantation on the rules, regulations and policies should be done at all cost.

The customer satisfaction should be guaranteed through rapid delivery of financial products and services

Habib bank should focus in the services of their educational institutes

The training should be proper time period



References:

Abdul Malik Operational manager

Mansoor Ahmed Loan officer

Shahid Zia Agriculture credit manager

www.hbl.com/business-customers-corporate-banking.php

www.hblasset.com/


HBL Report 1

Documents

Transcript of HBL Report 1