Internship Report HBL

Internship Report 1 Habib Bank Limited

ACKNOWLEDGEMENT

No one can say that I am perfect, everyone should admit that without the help

of ALLAH and His people a man can’t get anything so I bow my head before

almighty Allah with gratitude. I am also very much thankful and presents salute to

many individuals who have helped me in shaping this report .I am also very much

thankful to lot of former fellows and contemporary colleagues who took the time and

trouble during the last few days to speak to me about the way this text could be

further improved. I have no wards to express my gratitude to my advisor Mr. Bilal

Khan Lodhi for his intellectual guidance without which it could have been rather

difficult for me to complete this report.

I am also very thankful to the staff Habib Bank Ltd. Jinnah Chowk branch

especially to Mr. Khalid Mahmood Dogar (Manager Operations) who provided me an

opportunity to work in friendly environment.

It was an honor and pleasure to work with:

Mr. Rao Saleem Ullah khan (Manager HBL Jinnah Chowk branch)

Mr. Asif Iqbal (Asst. Manager Foreign Trade Department)

Madam Aysha (Public Relation Officer)

Mr. Haroon Butt (Manager Credit Department)

Mr. Ali Raza Shah (Head cash Department)


Table of Contents

No. Description Page No.

01 Executive Summary 03

02 Evolution of Banking 04

03 Commercial Banking in Pakistan 05 to 09

History of Banking in Pakistan

04 About HBL Pakistan 10 to 19

History and Background

Privatization

HBL’s Mission, Vision and values

Board of Directors

Management

Corporate information

05 SWOT Analysis 20

06 Operations of HBL 25 to 57

Banking Departments in HBL

Products and services of HBL

07 Learning and Duties as an Intern 58 to 64

Foreign Exchange Department

Bills clearing Department

Credit Department

Account, lockers, ATM Department

Assignments

Impact on my Career

08 Award and Financial performance in 2008 63 to 73

09 Recommendations 74


10 Glossary, Bibliography, Index 76 to 80

executive summaryEvery student of Master in Business Administration at COMSATS Institute of

Information Technology has an essential requirement to do Six to Eight weeks

internship in any of the well reputed organization. The purpose of this program is to

acquaint the students with practical applications of theoretical concepts taught to

them during conduct of their MBA program. The internship in Habib Bank was

arranged by the job placement cell of the institute. Really, it was a nice opportunity to

have a close comparison of theoretical concept in practical field, involving the use of

primary and secondary data. All the efforts on the way are summarized in shape of

this Internship Report. Report starts with the topic evolution of banking. The word

'Bank' is said to have been derived from the words Bancus or Banque or Bank. This

history of banking is traced to as early as 2000 B.C. Talking about commercial

banking in Pakistan It was very difficult for Pakistan to build up its own Banking

system immediately after independence without sufficient resources. By 30th June

1948 the number of schedule banks in Pakistan declined from mere scratch. Today

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

network of supplementary financial institutions. All this development in the banking

sector is the result of untiring efforts of six decades. HBL was the first commercial

bank to be established in Pakistan in 1947. Over the years, HBL has grown its

branch network and become the largest private sector bank with over 1,450

branches across the country and a customer base exceeding five million

relationships.

On December 29, 2003 Pakistan's Privatization Commission announced that

the Government of Pakistan had formally granted the Aga Khan Fund for Economic

Development (AKFED) rights to 51% of the shareholding in HBL, against an

investment of PKR 22.409 billion (USD 389 million). This report contains information

about HBL’s board of directors, management, mission, vision and values. HBL’s

operations are discussed in light of its working department in the branches like cash,

clearing, foreign exchange and accounts department and also in light of its services

and products which it is offering to customers’ weather they are individual, business,

corporate or agriculture field related customers. HBL is currently offering phone

banking, internet banking and various cash management services for the facilitation


of its customers. HBL’s car to car loan has its own uniqueness in Pakistan’s banking

sector. HBL’s branch network is extended all over the Pakistan which has its

competitive edge over all other private sector banks in Pakistan.

During the time of my internship in Habib Bank Jinnah Chowk branch Sahiwal

I got the chance to work in all the departments of HBL working there. Duties and

learning in each department is given in this report. Talking about financial

performance of the bank in 2008 all the financial indicators are showing positive

results when the financial performance of the bank in 2008 is compared with

financial performance of 2007. During 2008 HBL also won some awards. At the end

of this report I have given my suggestion for the improvement of the bank.

Evolution of banking

The word 'Bank' is said to have been derived from the words Bancus or

Banque or Bank. This history of banking is traced to as early as 2000 B.C. The

priests in Greece used to keep money and valuables of the people in temples. These

priests thus acted as financial agents. The origin of banking is also traced to early

goldsmiths. They used to keep strong safes for storing the money and valuables of

the people. The persons who had surplus money found it safe and convenient of

deposit their valuables with them. The first stage in the development of modern

banking, thus, was the accepting of deposits of cash from those persons who had

surplus money with them.

The goldsmiths used to issue receipts for the money deposited with them.

These receipts began to pass from hand to hand in settlement of transactions

because people had confidence in the integrity and solvency of goldsmiths. When it

was found that these receipts were fully accepted in payment of debts; then the

receipts were drawn in such a way that it entitled any holder to claim the specified

amount of money from goldsmiths. A depositor who is to make the payments may

now get the money in cash from goldsmiths or pay over the receipt to the creditor.

These receipts were the earlier bank notes. The second stage in the development of

banking thus was the issue of bank notes.


The goldsmiths soon discovered that all the people who had deposited money

with them do not come to withdraw their funds in cash. They found that only a few

persons presented the receipts for encashment during a given period of time. They

also found that most of the money deposited with them was lying idle. At the same

time; they found that they were being constantly requested for loan on good security.

They thought it profitable to lend at least some of the money deposited with them to

the needy persons. This proved quite a profitable business for the_ goldsmiths. They

instead of charging safe keeping charges from the depositors began to give them

interest on the money deposited with them. This was the third stage in the

development of banking.

COMMERCIAL BANKING IN PAKISTAN

It was very difficult for Pakistan to build up its own Banking system

immediately after independence without sufficient resources. Following the

announcement of the partition plan in June 1947 there was a haste movement on the

parts of banks to transfer their funds and accounts across the borders. The banks

having their registered offices in Pakistan were transferred to India. In an effort to

bring about the collapse of the new state by the persecuting an international policy of

withdrawal, the Indian bank offices closed quickly. Those banks, which stayed, were

considering the winding up of their business. By 30th June 1948 the number of

schedule banks in Pakistan declined from mere scratch.


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

established network of supplementary financial institutions. All this development in

the banking sector is the result of untiring efforts of four decades.

History of Banking In Pakistan The interesting point which I observed during the span of mine internship was

the historical background of Banking & Financial sector which is the one in which

great improvement and growth is observed since the formation of Pakistan. For

studying the growth of this sector we can divide it into three stages, which are as

follows:

a) Pre-Nationalization Era

b) Nationalization Era

c) Post Nationalization Era

a) Pre Nationalization period:

There were only two Muslim banks in Indo Pak before partition; they

were .Habib Bank Ltd. (est. in 1941 at Bombay) & Australia Bank Ltd. (est. In 1944 at

Lahore). All other banks, at that time, were either owned by Hindus or Foreigners.

At the time of partition there were 631 bank branches in area which came

under Pakistani control. But due to blood shed and violence at large scale, mostly

branches were closed and the disparity can be assessed from the fact that on July

1948 there were 195 branches with deposits of Rs.88 crore (880 million) only. Also a

factor lagging in Pakistani industry was a central bank of its own, by that time

Reserve Bank of India was acting as central bank for both countries and same

currency notes were used in both territories. But Reserve Bank of India was biased

and Set down Pakistan on many occasions such as the issue of funds transfer etc.


In this period drastic steps were taken in government sector for the

improvement of overall position. The private sector also responded to these changes

and some very positive changes were observed. Some of the steps taken by the

government in this regard were as under:

1) Inauguration of State Bank of Pakistan (SBP) on 1st July, 1948.

2) Setting up of National Bank of Pakistan in November, 1949 to control the 'jute' export in East Pakistan and to act as agent of SBP.

3) Larger powers were given to SBP through SBP Act (1956) for controlling purposes.

4) Banking Companies Ordinance 1962 for protection and guidance to banks.

5) Establishment of specialized banks, such as ADBP (1952);

a) HBFC (Nov, 1952);

b) P1CIC (Oct, 1957)

c) IDBP (Aug. 1961);

d) NDFC (Jan, 1973).

These were the steps, which built a strong banking sector in Pakistan. This is

also obvious from the facts that by 1973 there were almost 10 foreign banks were

working in Pakistan and all over deposit position was around Rs.2300 crore (23,000

million). A bird eye view of 5 top banks was as given below:

BANK POSITION IN 1973

BANK NO. OF BRANCHES DEPOSITS

(Rs in Million)

HBL 667 6,160

NBP 579 5,660

UBL 497 5,670

MCB 506 1,640

ABL 145 570


B) NATIONALIZATION PERIODOn January 01, 1974 all Pakistani banks were nationalized through

Nationalization Act 1974. Under this law all Pakistani banks became a public

property. All small banks were merged in bigger banks to create 5 major Pakistani

banks Pakistani banks. These banks were to control by Pakistan Banking Council.

There are still controversies about this act of government as whether it contributed in

success of failure of banks. However the major changes after nationalization were as

follows:

Working of banks was extended to under developed areas.

Market expansion for credit and deposits.

Decrease in service level of bank officers.

Decrease in profitability as well.

However the effect of expansion was enormous and it can also be depicted

with the help of table 2 which shows the deposit & branch positions of different

nationalized banks.

BANK POSITION IN 1992

Bank No. of Branches Deposits (Rs. In Millions)

HBL 1926 153,431

NBP 1448 128,679

UBL 1684 87,482

MCB 1288 50,013

ABL 750 33,757

TOTAL 7096 453,362


C) POST NATIONALIZATION ERA In 1990 the government decided to denationalize all the nationalized

institutes. Some was also suggested in banking sector. For this purpose,

amendments were made to Nationalization Act 1974 and two nationalized banks

were privatized. Along with this a permission to open banks in private sector was

also granted. The rules regarding establishment of new banks and for incoming

foreign banks were also relaxed.

The- privatized banks are;

a) MCB taken up by a private group in April, 1991

b) ABL taken up by its own employees in September, 1991.

c) UBL taken up by UAE party in 2002.

d) December 29, 2003 HBL was taken by AKFED

After these changes a large number of private and foreign banks started their

operations in Pakistan and the present status can be seen from the following figure:


About Habib Bank Limited

HBL was the first commercial bank to be established in Pakistan in 1947. Over the

years, HBL has grown its branch network and become the largest private sector

bank with over 1,450 branches across the country and a customer base exceeding

five million relationships. With a presence in 25 countries, subsidiaries in Hong Kong

and the UK, affiliates in Nepal, Nigeria, Kenya and Kyrgyztan and representative

offices in Iran and China, HBL is also the largest domestic multinational. The Bank is

expanding its presence in principal international markets including the UK, UAE,

South and Central Asia, Africa and the Far East. Key areas of operations encompass

product offerings and services in Retail Banking. HBL has the largest Corporate

Banking portfolio in Pakistan with an active Investment Banking arm. SME and

Agriculture lending programmes and banking services are offered in urban and rural

centers. In the UK and GCC, HBL focuses on trade finance and remittances for the

South Asian Diaspora in addition to basic banking facilities. HBL has always been a

bank and a brand for the masses, with a history that is inextricably linked with the

history of Pakistan itself. As it continues to grow, both locally and abroad, it strives to

embody its brand personality: honest, approachable, and inclusive. HBL is currently

rated AA+ (Long term) and A1+ (Short term)*. It is the first Pakistani bank to raise

Tier II Capital from external sources.

*Rating given by JCR-VIS


HISTORY AND BACKGROUNG

Habib Bank Limited was established by Mr. Ismail Habib (Late) on August 25,

1942 at Bombay. It was the first Muslim Bank of the sub-continent. It was

established with a paid up capital of Rs. 2.5 million. At an early stage, the number of

its branches was only 12.

HBL established operations in Pakistan in 1947 and moved its head office to

Karachi. Our first international branch was established in Colombo, Sri Lanka in

1951 and Habib Bank Plaza was built in 1972 to commemorate the bank’s 25th

Anniversary. 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.

Privatization of Habib bank

On December 29, 2003 Pakistan's Privatization Commission announced that

the Government of Pakistan had formally granted the Aga Khan Fund for Economic

Development (AKFED) rights to 51% of the shareholding in HBL, against an

investment of PKR 22.409 billion (USD 389 million). On February 26, 2004,

management control was handed over 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 nominees.


HBL’s Vision, Mission and Values

VisionEnabling people to advance with confidence and success.

MissionTo make our customers prosper, our staff excel and create value for shareholders.

ValuesOur values are the fundamental principles that define our culture and are brought to

life in our attitude and behaviors. It is these values that make us unique and

unmistakable. Our values are defined below:

ExcellenceThis is at the core of everything we do. The markets in which we operate are

becoming increasingly competitive, giving our customers an abundance of choice.

Only through being the very best – in terms of the service we offer, our products and

premises - can we hope to be successful and grow.

IntegrityWe are the leading bank in Pakistan and our success depends upon trust. Our

customers - and society in general – expect us to possess and steadfastly adhere to

high moral principles and professional standards.

Customer FocusWe understand fully the needs of our customers and adapt our products and

services to meet these. We always strive to put the satisfaction of our customers

first.

MeritocracyWe believe in giving opportunities and advantages to our employees on the basis of

their ability. We believe in rewarding achievement and in providing first-class career

opportunities for all.

Progressiveness


We believe in the advancement of society through the adoption of enlightened

working practices, innovative new products and processes and a spirit of enterprise.

Board of Directors

NAME DESIGNATION

Sultan Ali Allana CHAIRMAN

R. Zakir Mahmood PRESIDENT & C.E.O

Mushtaq Malik DIRECTOR

Ahmed Jawad DIRECTOR

Yasin Malik DIRECTOR

Moez Jamal DIRECTOR


MANAGEMENT

PIC. FROM HBL CORPORATE FROFILE


Management Hierarchy

PRESIDENT

BOARD OF DIRECTOR

MEMBER EXECUTIVE BOARD

REGIONAL CHIEF

ZONAL CHIEF

BRANCH MANAGERS


DESIGNATIONS

President

Senior Executive Vice President (SEVP)

Senior Vice President (SVP)

Vice President (VP)

Assistant Vice President (AVP)

Officers Grade 1

Officer Grade II

Officer Grade III

Cashier

Clerks

Peon


Corporate Information

Head OfficeHBL PlazaI. I. Chundrigar RoadKarachi-75650, Pakistan.Tel : +92 (21) 2418000 [50 lines]Fax : +92 (21) 9217511

Registered Office4th Floor, Habib Bank TowerJinnah AvenueIslamabad, Pakistan.Tel: +92 (51) 2872203 Fax: +92 (51) 2872205

RegistrarsTHK Associates (Pvt.) Ltd. Ground Floor, State Life Bldg No. 3Dr. Ziauddin Ahmed RoadKarachi, Pakistan.Tel: +92 (21) 111-000-322

WebsitesCorporate website:www.hbl.comTreasury website:www.hblgtr.com.pkEbank (internet banking):www.hblebank.com

AuditorsKPMG Taseer Hadi & Co.Chartered Accountants

http://www.hblebank.com/


Global location


Global locations


PIC. FROM HBL CORPORATE FROFILE

Swot analysis

Strengths

Strength can be defined as an area where a company is best at doing

something or a feature that puts the company at an advantage in comparison to its

competitors. HBL enjoys the following strengths:

HABIB BANK is a well established bank enjoying long history of over 65 years

of experience and profitable operation.

HBL is the largest private bank in Pakistan now and people trust is very high.

It has the largest branch network among private banks of Pakistan.

HBL has been very effective in controlling costs as it successfully restructured

itself after its privatization. During this process more than 1,600 employees

were relieved under a golden handshake scheme and 110 branches were

closed.

Excellent branches appearance gives an edge to HBL over other banks. The

branches are well furnished even in less developed areas where other banks’

branches give a poor view.

HBL has the ability to bring innovative products and services like personalized

service, electronic funds Transfer, sophisticated financial products such as

electronic banking, auto-teller machines and evening banking.

The Bank’s Rupee Traveler Cheques have been market leaders for the past

six years.

HBL’s car to car financing scheme is unique in auto loan segment.

Habib bank is an internationally recognized name in banking services and

products.

HBL has forged strategic alliances with international banks for expanding its

network further, both locally and internationally.


Weaknesses

A weakness is defined as an area in an organization where the organization is not as

good at doing something as its competitors or a thing which an organization lacks

thus putting the organization at disadvantage in comparison to its competitors.

Based on the above definition, HBL has the following weaknesses.

Lack of communication between bank and customers about terms and

condition of products and services. Like centralization of cheque book issuing

process.

Employees at branch level are not properly motivated to work by heart. They

take the all routine activities as a boring job.

Most of the employees lack managerial training as they are not properly

educated. Due to seniority, they have moved up on the hierarchy line to

Grade-I, II or III positions having hardly bachelor degrees. This type of senior

staff cannot apply the modern and innovative techniques of management in

decision making.

Mission of HBL is not well defined.

Though HBL is second largest bank in Pakistan, yet the fact remains that it is

not market leader as NBP. Its total assets are always less than NBP total

assets.

Now as it is a privatize bank that is why GOVERNAMENT support to HBL

decreased as it was in past


Opportunities

An opportunity can be defined as a change in external environment which if properly

exploited with the organizational strengths will result in enhanced sales, market

share, or income. Using its strengths, HBL can avail the following opportunities.

Opportunities require explanation therefore I have used headings instead of arrows

E-Banking

Generally speaking, three factors, quickness, easiness and cheapness have become

the catchwords for the competitiveness and usefulness of all the business

operations. Particularly it is commonplace today to say that banking is undergoing a

radical transformation. The symptoms are new products, new players, new channels

etc. This transformation is taking place across all sectors of the banking industry.

That is why Habib bank urgently needs to improve their ability, to think strategically

about IT investments. Only those banks that use their technology resources

effectively have the opportunity to secure real competitive advantage in this fast-

changing industry through real product or service differentiation.

High mark up rates

Of late markup rates have increased considerably. Present rates are 4% above

KIBOR i.e. 16% appx. High markup rate has decreased the interest of people in

loaning from from banks. Habib bank can increase its income by offering loan at

lower interest rate than other banks.

ONLINE BANKING

It is doing banking transactions through our home P.C. The banks that do business

through net have Websites. The customer clicks into the Website and gets the

history of the bank. Then he can demand the necessary application form through the

net. He fills in the form and passes it on to the bank. The Online banking is fast

gaining ground in Pakistan. Some software companies are also offering network-

banking facilities. So Habib bank should focus heavily on providing online banking

faculties to its customers. Currently it is doing the same.


CORPORATE BANKING TERMINAL (CBT)

Large corporate customers can log into the bank's database and have access to

their accounts/transactions from their business houses. This facility has still not been

started for customers in Pakistan. So Habib can focus on that.

AUTOMATIC TELLER MACHINE (ATM)

This system is known as "Any Time Money" because it allows customers who have

an ATM card to withdraw money at any time from the bank without interacting with

human teller. Since the ATM machine can be installed anywhere like petrol bunks,

markets, railway stations etc, and can well be linked to the main computer. It allows

customers to transact with the bank 24 hours a day and 365 days a year. They allow

the customers to transfer money to and from accounts to view account information,

to receive cash. It can also be used to deposit cheques and cash into the

accounts. No bank in Pakistan is offering this service currently. So an opportunity

exists for Habib bank to differentiate.

Rate of return

The range and choice of products available & offered by the commercial banks is

limited. Rates of Return / Profits on Deposits are so low and unattractive that very

limited options are available to the depositors. They do not match the current rate of

inflation. HBL differentiate and increase it’s deposit by offering attractive rate of

return on deposits.


Threats

Threat can be defined as a change in external environment which if not met with

proper strategies will result in loss of revenues, market share, or income. In the

context of HBL’s external environment, the following potential threats exist:

Other private commercial bank with sound profitability is also a threat to HBL

e.g. UBL, Alfalah, MCB etc

The Rupee Travelers Cheque (RTC) sales volumes may be affected on

account of regulatory restriction imposed by SBP on issuance of large value

denominations.

For the last of 2 to 3 years, Pakistan is facing economic and political instability

which is a big threat.

Foreign banks are flourishing in field of consumer financing.

Afghan war and Iraq war has a deep effect on the economy of Pakistan, which

has affected HBL.

Increased regulations from State Bank of Pakistan may affect its business.


Operations of HBL

A. banking departments of habib bank

Various departments are working in all the branches of Habib bank to facilitate the

customers. Following are the banking departments functioning in HBL Jinnah Chowk

branch Sahiwal.

1. Account opening department.

2. Cash department.

3. Credit department.

4. Lockers department.

5. Bill clearing department.

6. Foreign exchange department.

7. I.T department.


Accounts opening departmentBasic function of the accounts department is to open new account and facilitate the

customer for the account opening purpose. There are certain formalities which are to

be observed for opening of an account with a Bank. These formalities in brief are as

under:

FORMAL APPLICATION:

The customer is to fill "Account Opening Form. It is a formal request by a customer

to the bank to allow him to have and operate the account.

Documents require for opening an account:

Copy of CNIC

Service certificate or student card.

Utility bill

Provisional receipt

KYC (Know Your Customer)

SPECIMEN SIGNATURE:

When the Banker is satisfied about the integrity of the customer, he agrees to open

the account. The Banker obtains the specimen signatures of the customer on the

signature book or on card.

Posting the account on the system:

After that officer has to post the new account on computer system for further

processing. During the process customer id and account number is generated. New

account remains active for one day after that it is blocked by the head office until

CNIC of the customer is verified from NADRA.


Cheque book issuing:

After the CNIC verification account opening officer has to issue a cheque book to

customer so that he can be able to make withdrawal from his account. Now a day in

Habib bank cheque book issuing process is centralized that take 06 days to

complete.

SECRECY:

The secrecy of depositor’s account is the. Responsibility of every official engaged in

the Bank service.

Types of accounts:Individual accounts:

Individual accounts are the most common personal investment accounts. Opened by

single person.

JOIN ACCOUNT:

A joint account occurs when two or more than two customers have one account. The

parties to a joint account are considered in law as they are one person.

Business accounts:

Business accounts can be opened by institutions, companies, partnerships, trusts

and non-profit organizations. Following documents are required.

BOOKS RELATING TO CUSTOMERS:

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 customer with the bank’s acknowledgement for receipt

of money to be credited his account.


Cheque Book

A chequebook contains a number of cheques, which is given to a customer upon

written request and after marking the payment for the chequebook. It enables a

customer to make withdrawal from his account or make payment to various parties

by issue of cheques.

GROUNDS FOR CLOSING THE CUSTOMER’S ACCOUNT:

The banker may close the account of the customer due to following reasons:

i. Notice by a Customer

ii. Death of a Customer

iii. Customer’s Insanity

iv. By order of court

I) NOTICE BY CUSTOMER

The banker closes the account of the customer on the application of the customer for

closing his account.

II) DEATH OF CUSTOMER

On death of his customer, the bank must stop payment on cheques drawn on him by

the deceased customer because the death revokes his authority to pay such cheque.

The heirs or the executors of the deceased customer are not authorized to operate

on the account; it can act only in accordance with provisions mentioned in the letter

of probate issued by a competent courts.

III) CUSTOMER’S INSANITY

If the customer becomes insane or mental it terminates the banker’s authority to act

as his customer’s agent. Since the banker customer relationship comes to end, in

such as situation, it is usually considered that the banker’s authority to pay his

customer’s cheques is revoked by notice of insanity. However, the bankers treat their

customers as it unless a fairly inclusive evidence of the customer’s insanity is

available to them.

IV) ORDER OF COURT

A court of law may serve a banker with an order in garnish proceeding in execution

of a decree prohibiting him from honoring a customer’s cheques.


Cash department

ash Department is very sensitive and risky part of the bank. Very

causations and competent personnel are needed for the Job. HBL has

really such a diligent staff with appreciable competencies and will to do

work. Main function of cash department is to deal with cash payment and cash

receipts.

CCash deposit procedure:

The customer fills the pay slip. The cashier receives the pay slip and cash. He

counts the cash and makes the detail of the notes at the back of the pay slip. Then

he compares the detail with amount written on slip and signs the pay Slip. Then he

credits the entries in the computer by serial No, account type, Account number and

amount. Puts the stamp of the “cash Received” on the payment slip. The first portion

is for bank record while other one is given to the customer.

Cash payments procedure:

When a customer comes to withdraw a certain amount from his account, he brings a

Cheque along with him. In this case the following steps are taken.

The cashier receives the cheque and checks it whether it is post dated or predated.

Cheque can be cashed within six months. A predated cheque cannot be cashed. He

takes two signatures at the back of the cheque from the bearer. He gives the cheque

for posting at the computer. The computer checks out whether there is balance in the

account or not. Other instructions are also received e.g. blocked, frozen, Etc. the

posting is done in the computer and the cheque is stamped posted with the serial

number and date. He gives the cash to bearer and the respected account is debited.

Online fund transfer:

Another function of the cash department is of online transfer of funds.

Customer has give filled remittances form with cash or without cash (from account

transfer) to the cashier in cash department who will then credits the beneficiary

account.

Balancing cash at the end and transferring excess cash:

At the day end cash department is responsible for balancing the cash. Physical cash

should be balanced with the amount in the computer. Jinnah Chowk branch’s limit for


cash is 40 million which it can keep within the branch over the night excess cash is

transferred to NBP.

CREDIT DEPARTMENT

1. Introduction

2. Securities.

3. Types of credits

INTRODUCTION

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

against promissory notes, as well as secured advances against tangible and

marketable securities. The bankers prefer such securities that do not run the risk of

general depreciation due to market fluctuations.

Common Securities for the banker’s advances are as under:-

SECURITIES

1. Guarantees

When an application for advance cannot offer any tangible security, the banker may

rely on personal guarantees to protect himself against loss on advances or overdraft

to the applicant.

2. Mortgage

A mortgage is the transfer of an interest in specific immovable property for the

purpose of security the payment of money advanced or to be advanced by way of

loan, and existing or future debt, or the performance of an engagement which may

rise to a pecuniary liability. The transfer is called a mortgagor, the transferee a

mortgage.

3. Hypothecation

When property in the shape of goods is charged as security for a loan form the bank

the ownership and possession is left with the borrower, the goods are said to be

Hypothecated The essence of hypothecation is that neither the property in the goods

not the possession of them are possession is left with the borrower, the goods are

said to be Hypothecated the essence of hypothecation is that neither the property in

the goods not the possession of them are possessed by the lender, but the security

is granted by means of letter of hypothecation, which usually provides for a banker’s

charge on the hypothecation goods.


4. Pledge

In a pledge the ownership remains with pledge, but the pledge has the exclusive

possession of property until the advance is repaid in full. While in case of the default

the pledge has the power of sale after giving due notice.

5. Promissory Note

Sometimes promissory note is also accepted as a security, "A promissory note is an

instruments in writing containing an unconditional undertaking signed by the maker,

to pay on demand or at a fixed or determinable future time a certain sum of money

only, to or to the order of certain persons, or to the bearer or the instrument." A

promissory note is incomplete until has been delivered to payee or the bearer.

Moreover, the sum promised in a promissory note may be made by two or more

makers who may be liable there on jointly and severally.

TYPES OF ADVANCES

The advances which are given by Habib Bank Limited are as under:-

1. DEMAND FINANCE (Ordinary Loan)

Demand Finances are those advances which are allowed in lump sum for a fixed

period and are repayable lump sum or gradually in installments.

TYPES OF ADVANCES

a. Demand Finance (Packing Credit)

Scheme introduced by State Bank of Pakistan for exporter of carpet, surgical instruments, at zero percent rate of interest. While banks provides at concessional rate of interest.

b. Loan ordinary (Demand Finance to Students)

Qarz-e-Hasana Scheme Loans are allowed to the students, teachers without any interest or mark up with the recommendations of the MPA or MNA.

c. Demand Finance (Staff)

Loans are offered to the staff of the following four categories.

i. House Building Loans against mortgage of property.

ii. Loan for purchasing vehicles.

iii. Loan equivalent to month’s salary.

2. RUNNING FINANCE (Overdraft)

Running finance (old name overdrafts) are advances, which are generally, given to

meet temporary requirements of the customers. A good customer use the banks


running finance limit as a mean of protecting his credit in the market and as a line of

security defense to meet his commitments.

TYPES OF RUNNING FINANCE

I. Unsecured

Under such type of overdraft the bank pay upon the personal security of the

customer’s mentioned on the customer’s account.

II. Secured

Under this type of overdraft the bank allows his customer to withdraw more

than his deposits after giving security against the amount overdrawn.

The securities against which they given are:

i. Share certificate, Saving certificate

ii. Deposits

iii. Mortgage of property

iv. Guarantee of person

SMALL LOANS

Loan is allowed to contractors clearing and forwarding agents.

3. FINANCE AGAINST THE FOREIGN BILLS (FAFB)

The advance facility is allowed both to local foreign bills and is classified as under:-

i. FAFB (Local) advance against Railway receipts and truck receipt, a company with bills of exchange and invoices, are given under this head.

ii. FAFB (Foreign) advances against foreign bill, covering bills of exchange bills of lading airway bills of exchange bills of lading airways bills etc.

4. AGRICULTURE LOANS

Loans to the farmers with holding up to 25 acres for meeting their short terms,

medium and long terms Agricultural production requirements, such as:

i. Agricultural inputs ii. Tube wells iii. Live Stock Framing iv. Land improvement


5. INDUSTRIAL LOANS

Besides the short-term loans which play a part in working capital medium and long-

term loans are also given to industrial sector for purchase of machinery and other

capital nature goods.

Bills clearing department

INTRODUCTION

Every bank acts in two way i.e.

i. Paying Bank

ii. Collecting Bank

Here in theory no legal obligation on a banker to collect cheques, drawn up to

other banks for a customer. It is, however, an important function of crossed cheques.

A large part of this work is carried out through the N.I.F.T.

NIFT- National Institutional Facilitation Technologies (Pvt.) Limited:

NIFT is a joint venture between a consortium of six major banks and private

sector. It is responsible for the establishment and management of automated

clearinghouse facilities in Pakistan. NIFT is proactively involved in the modernization

of payment systems in Pakistan.

FUNCTION OF CLEARING DEPARTMENT

The following are the main functions of clearing department.

4. To accept transfer deliveries and clearing cheques from the customer of the

branch and to arrange for their collection.

5. To arrange the payment of cheque drawn on the branch and given for

collection to any other branch of Habib Bank of Pakistan or any other

members, or sub-members of the local clearing area..

6. To collect amounts of cheques drawn on members, sub-members of the local

clearing house, sent for collection by those Habib Bank Limited, branches

which are not represented a the local clearing area.

PROCEDURE OF DEPOSITING CHEQUES IN CLEARING DEPARTMENT


Whenever a customer wants to deposit cheque, etc, he fills a pay in slip and

hands it over the counter along with the instruments he wants to deposit with bank.

As far as possible, the customer desire that on of the staff member fill in a slip for

him, he should be obliged promptly.

One portion of the perforated pay in slip is handed over to the depositor and

the portion becomes the regular portion of a credit voucher

TYPES OF CHEQUES COLLECTED BY CLEARING DEPARTMENT

a. Transfer Cheques

Transfer cheques are those cheques, which are collected and paid by the

same branch of bank.

b. Transfer Delivery Cheques

Transfer Deliver cheques are those cheques, which are collected and paid by

two different branches of a bank, situated in the same city.

c. Clearing Cheques

Clearing cheques are those cheques in which the payee (Person who deposit

cheques for collection) and the drawer of a cheque maintain the account with

different banks.

These clearing instruments are handed over to NIFT after posting necessary

stamps and checking them for any errors. Then further process of clearing is carried

on the behalf of NIFT.

Forex Department

International trade is growing and with the development of international trade

it has become more imperative. For countries to devote more and more attention to

the complicated mechanism of Foreign Exchange. It is more important in case of

developing countries. It is need of time, that a country should conserve its foreign

exchange resources.

MEANING OF FOREIGN EXCHANGE

The foreign exchange term refers to the principles that determine the rate of

exchange. It covers following three senses:

i. The mechanism or system by which international obligations or indebtedness

are fulfilled.


ii. The currency of one country is exchanged for that of another.

iii. The principles on which the people of world settle their debts to one another.

Letter of Credit:

It is a negotiable instrument through which the bank of the exporter deals with bank

of the importer through the guarantee of a bank. There are different parties involved

in the L/C, e-g importer, exporter, importer bank, exporter bank, and advisory bank.

LC involves banking channels in foreign trade to mitigate risk.

The procedure of opening of an L/C is as follow

The first thing is the Performa invoice. The Performa invoice is a document

(say a clip), which is, sends by the exporter to the importer and includes the

information like. Descriptions of goods, what type of goods you are needed

and what are the quality, rate and originating country etc.

Before to open a L/C the bank also consider that the goods which the importer

is importing is allowed by govt. of Pakistan or not. Because the importer is not

allowed to import that goods which are prohibited by the Govt. of Pakistan.

The importer is asked to show the membership certificate of any chamber of

commerce and industry affiliated with the Pakistan federation of chamber of

commerce and industry.

Fill the import form of the govt. of Pakistan, which is the proof of this that there

is no objection on the goods, which the customer is importing.

What type of goods you are needed and what are the quality, rate and

originating country etc.

Necessary Documents required for L/C:

NTN

Tax Authority registration certificate

Chamber of Association’s trade certificate

Type of Business

NIC

Margin

Registration No.

Application for L/C

On providing these documents the importer will be given the L/C form named as

IB-8.

Contents of IB 8


1. Request for LC

2. Rate

3. Importer and Exporter’s particulars

4. Amount

5. Terms

6. Partial Shipment (Allowed, not allowed)

7. Transshipment (Allowed, Not Allowed)

8. Port of Loading and destination

9. Payment Mode

I. Sight

On seeing the documents the importer has to pay.

II. At Sight and Negotiation:

It means that exporter will submit his documents with the bank and immediately asks

for payment.

III. Acceptance:

On showing the documents to the importer, the bank asks him to accept that he will

pay within 30, 60, 90, 120, 180 etc days.

10.Documents Required:

Certificate of Origin.

Commercial Invoice

Bill of Lading / Air way bill.

Charges:

For L/C following charges are applicable;

Commission

Postage

L/C Advising commission

L/C amendment Commission

L/C confirmation Commission

L/C Negotiation Commission

Payment Mode:

In foreign trade payment modes are


1) Advance Payment: Importer makes payment before delivery of goods.

2) Open A/C: Importer makes payment after receiving the goods.

Issuing foreign exchange accounts cheques books

Another function of foreign exchange department in Jinnah Chowk branch is to issue

foreign exchange accounts cheques books to customers on request. This process is

not yet centralized. Cheque book is issued within 15 minute of receiving request from

customers after making necessary register entries and posting stamps on it.

Products and Services of Habib Bank Limited

Retail Banking

For

Individual Customers

http://www.hbl.com/individual-customers.php


Deposit Accounts

Current AccountsMake unlimited transactions while maintaining a low minimum balance every month.

HBL is currently offering three types of accounts in current account category. Their

detail and name is as under.

1. HBL BusinessValueAccount

2. Current Account

3. Basic Banking Account (BBA)

HBL BusinessValueAccount

Unique transactional account for Businessmen

Up to 5.35%* profit per annum

Profit calculated daily, paid every quarter

Minimum balance of Rs. 20,000

HBL DebitCard and Inter Branch Transaction System (IBTS) facilities

Up to 10 Bankers Cheques free (at minimum balance of Rs. 500,000)

Funds transfer to any bank through HBL PhoneBanking

Current Account


Unlimited transactions

Non-profit bearing



Basic Banking Account (BBA)

Can be opened with only Rs. 1,000

No minimum balance requirement

Upto 2 withdrawal and 2 deposit transactions free every month

Unlimited withdrawals through HBL DebitCard

Non-profit bearing

http://www.hbl.com/individual-customers-accounts.php


Savings accountsAvail the flexibility of making transactions while earning profit on daily/monthly basis.

HBL is currently offering five types of accounts in savings account category. Their

detail and name is as under.

1. HBL Value Account

2. PLS-Savings Account

3. Remittance Munafa Plus Savings Account

4. Daily Munafa Account

5. Daily Progressive Account

HBL Value Account

7.19%* profit per annum

Profit calculated monthly, paid every quarter

Deposit ranges from Rs. 10,000 to Rs. 1,000,000

Two withdrawals free every month

PLS-Savings Account

5.06% profit per annum*

Profit paid bi-annually




Unlimited transactions

Remittance Munafa Plus Savings Account

Special account for receiving foreign remittances

5.12%* profit per annum

Profit paid every month



Daily Munafa Account

Profit calculated daily, paid every month

Up to 8.84% profit per annum*




Daily Progressive Account

Unique transactional account for Institutions

Profit calculated daily, paid every month

Up to 11.57% profit per annum*

Inter Branch Transaction System (IBTS) facility



Terms AccountsInvest your savings in HBL term deposits for a fixed duration and earn profit while

keeping your savings secure. HBL is currently offering one type of account in terms

account category. Their detail and name is as under.

1. HBL Advantage Account

HBL Advantage Account

Multiple options for tenure and profit payout

Loan facility up to 90% of investment

Minimum investment of Rs. 25,000

Withdrawal at end of fixed term

Tenure Profit at maturity

3 MONTHS 7.50%*

6MONTHS 8.00%*

1 YEARS 11.00%*

3 YEARS 13.00&*

5 YEARS 14.00%*

10 YEARS 17.00%*


Foreign Currency Accounts HBL offers Foreign Currency Accounts in multiple currencies as savings and term

accounts. Their detail is as under.

FC-SB

Savings Account offered in 3 currencies, USD (US dollar), EUR (Euros) and

GBP (UK pound)

Tiered product, with rates depending on choice of currency

To earn profit, minimum balance in USD, EUR and GBP is 1,000

Interest is payable on a quarterly basis

HYFFD (High Yield Foreign Currency Fixed Deposit)

Available in 1 month, 2 month, 3 month, 6 month and 12 Month in USD, EUR

and GBP

Tiered product, with rates depending on choice of currency and term

Profit paid on maturity only. No interim interest is payable.

*NOTE: All the rate and terms and condition are revised by HBL after every six

months periods. These rates are only applicable for period 01.07.09 to 31.12.09.

Further detail of terms and conditions about profit and rates is given in annex “B”.


HBL car loan

HBL Car Loan helps customers to get their preferred car through a simple and

hassle-free process, backed by superior service and support. Now customer can

drive a car he always wanted.

Features

Choice of used, new local/imported and reconditioned imported car.

Repayment options ranging Upto 7 years.

Upto 85% of financing for the car of your choice.

Insurance at all times for complete peace of mind and security.

Round the clock support available through HBL PhoneBanking; you can place

your requests and queries, track the status of your repayment/loan account

and avail other value-added services through HBL PhoneBanking.

Eligibility Criteria

How to apply

Just visit any HBL branch or Habib Bank Auto Finance Centre for details and

application.

Submit complete set of application without any charges to the branch or the

Auto Center.

Sign the necessary documents on approval of the application

Payment is released within 24 hours of the submission of post-dated cheques

and initial payment after approval of the request.

http://www.hbl.com/individual-customers-carloan.php#%23%00

http://www.hbl.com/individual-customers-carloan-comparecars.php


Documentation

Salaried Individuals

Complete Application Form

Salary Certificate / Most recent Salary Slip

Bank Statement for past one year

Two Copies of NIC

Employment Certificate with date of joining

Two passport size photographs

Copy of the last paid utility bill (residence)

Self-Employed Business persons/Professionals


Two Copies of NIC


Letter of proprietorship / Registered Partnership Deed

Certified latest Form A and Form 29, where applicable, along with articles and

Memorandum of Association

Copy of last paid utility bill (residence)

Bank Statement for the last 1 year

HBL car to car

HBL CarToCar is a revolutionary car financing offer. It makes the car of customer

choice affordable and practical with a buy back guarantee. HBL CarToCar offers

matchless features and unique options at the end of the lease. Now customer can

drive a new car at the end of every two years.

Features

Pay only for what you use

When customer lease a car under HBL CarToCar, he only pay for that part of the

car’s value that he use during the lease term. The car’s residual value (forecasted for

the end of the specific lease term) is agreed with him at the start of the lease term.

This amount is deducted from the car price thus lowering the finance amount. This


finance amount is based only on a part of the car’s value and not the full value of the

car. Therefore, HBL CarToCar offers very low installments as compared to any

conventional financing.

Upgrade of lifestyle

HBL gives customer the guarantee that if he wishes to return the car to HBL at the

end of the lease term, he will not have to pay off the car’s residual value. Instead,

HBL will directly settle this outstanding liability for customer under the buy back

guarantee. Hence, he can upgrade to a new car as frequently as two years without

any complication and hassle.

Affordability

With HBL CarToCar, customer only has to pay the difference between the car price

and the pre-agreed residual value to the bank. As a result, the monthly installment

may even be 40% to 50% less than that of conventional financing.

Flexibility

HBL CarToCar offers customers several choices at the end of the lease term:

• Upgrade - Simply return the car to HBL and drive a new one home

• Walk away - Return the car to HBL and end the lease

• Buy - Keep the same car. Just make a one-time settlement of the car’s residual

value to HBL or pay the same in easy installments over a specified extended period

of time

• Sell - Enjoy the gain from selling off the car at a higher price in the market than

what you ay HBL as the residual value

Eligibility Criteria


Documentation

Salaried Individuals


Salary Certificate / Most recent Salary Slip

Bank Statement for past one year

Two Copies of NIC

Employment Certificate with date of joining


Copy of the last paid utility bill (residence)

Self-Employed Business persons/Professionals


Two Copies of NIC


Letter of proprietorship / Registered Partnership Deed

Certified latest Form A and Form 29, where applicable, along with articles and

Memorandum of Association

Copy of last paid utility bill (residence)

Bank Statement for the last 1 year


HBL Credit Card

By the help of HBL credit card customer enters into the world of convenience and

flexibility. Accepted at over 29 million merchants worldwide, HBL Credit Card makes

shopping fun and paying simple. So that a customer can make the most of his

shopping experience.

Benefits

Buy now, pay laterBuy what customer want, when he want and pay for it later. A credit card statement

will be sent to him every month with details of all his purchases. He will have 21

credit free days to make the payment from the statement date. Customer should pay

at least 3 days in advance if he makes your payment by cheques to allow enough

time for clearance.


Pay as much as customer wants

A customer can pay the entire or as little as 5% of the outstanding balance in his

statement. The unpaid amount will be transferred to his next month’s statement

along with applicable services charges.

Cash advance

Customer can go to any specified HBL branch and withdraw cash at the counter. He

can also go to any 1Link ATM in Pakistan and more than 1,000,000 ATMs worldwide

displaying the Visa/Plus logo. Withdraw cash up to the available cash advance limit

on his HBL Credit Card for a charge applicable from the withdrawal date.

Balance transfer facility

Card holder can pay off balances he owes to other banks through his HBL Credit

Card at a lower service charge.

Security

Card holder cannot lose cash if he doesn’t carry it! In the event that his card gets

stolen/lost, he should call HBL PhoneBanking to have his card blocked immediately.

Hbl debit card

HBL Visa Debit Card allows a card holder to pay for his purchases directly from his

bank account. He doesn’t have to carry cash and his monthly statement provides

him with a complete record of all his transactions so he can manage his expenses

with ease.


Features

No InterestHBL Visa Debit Card is the perfect way of paying for purchases as it gives access to

the exact amount of money a customer needed, as and when he needs it. There is

no interest or credit on payments because he spends from the money available in his

personal HBL Account.

Ease & Security

HBL Visa Debit Card offers ease and convenience because card holder doesn’t have

to visit an ATM to withdraw cash. Paying with the HBL Debit card is safe because it

eliminates the need to carry cash. A single swipe automatically debits the exact

purchase amount from his personal HBL account.

Spending Limits

The daily spending limit at shops and outlets on HBL Visa Debit Card is Rs. 100,000.

(These figures are subject to the balance available in account).

Free Account Statement

HBL cardholders receive a free monthly account statement for their Debit Card and

ATM transactions to help them keep track of their spending.

International Recognition & Acceptability

HBL Visa Debit Card is accepted at over 20 million Visa merchants worldwide,

including over 10,000 merchants in Pakistan. As an ATM card it is accepted at more

than 1,000 1-Link & M-Net ATMs in Pakistan and 864,000 Visa ATMs worldwide. No

matter where card holder is, with the HBL Visa Debit Card, HBL is always with him.

No Liability

In case of a lost or stolen card, card holders are protected against fraudulent

transactions made on their card after they report the incident.


hbl personal Loans

With the rising cost of living, it is becoming increasingly difficult to make expensive

purchases or meet unexpected expenses. HBL is helping customer finance them

with Habib Bank personal Loans (old name flexi loan). Customer may avail a

personal loan of up to SIX TIMES of his net take-home salary subject to a maximum

of Rs.300,000/- provided he work for an organization approved by HBL.

Features

Flexible tenure: 12, 24, 36,48 or 60 months

No processing fee

Repayment through easy and affordable monthly installments from salary.

Credit Life & Disability Insurance

Repayment through easy and affordable monthly installments

You determine the need, we help you finance

Option of add up replacement for existing customer.

Minimum salary Rs. 12000

No salary limit for existing customers.

23% or 21% rate for existing users instead of 25%

hbl phone banking

Now the bank is just call away. Customer can now call HBL PhoneBanking and

save a trip to the branch. His query will be resolved in a single telephone call from

anywhere and at anytime.

T-PIN Generation

Customer’s TPIN (Telephone Personal Identification Number) is generated the first

time he calls and he can use it as your password for verification purposes, self-


service banking through IVR and additional services through HBL’s PhoneBanking

Officers. Customer can change his TPIN anytime he like.

HBL PhoneBanking services for Deposit Account customers

Customers can use the Interactive Voice Response (IVR) system or talk to HBL

PhoneBanking Officers to:

Get his account balance

Get information about the last 5-10 transactions carried out on his account

Request bank statement, either through fax or email (as supplied in his

subscription form)

Get details of transactions from the last 6 months on each of the accounts

listed on his subscription form

Change and/or modify his contact details

Transfer funds between his own accounts (as listed in the subscription form)

or from his account to a third party account (as listed in the Third Party

Authorization Form)

Transfer funds from his own account to an account in another bank under the

1-Link network (Inter Bank Funds Transfer)

Generate his own choice of ATM Pin without filling a request at your branch

Inquire about HBL’s product offerings

Lodge a complaint in case of any inconvenience

Inquire about the daily accounts related profit rates and currency exchange

rates

Request a number of physical instruments and/or branch banking related

services that he might require, including:

Pay Order

Demand Draft

Statement

Balance Certificate

Cheque Book

HBL PhoneBanking services for HBL CarToCar and Car Loan customers

HBL CarToCar and HBL CarLoan customers can enjoy the following services

through HBL PhoneBanking:

Balance Inquiry Last 5-10 Transactions


Statement Generation (Email and Fax) Account Maintenance Assistance in case of Car Theft/Damage

Hbl bancassurance

HBL and New Jubilee Life Insurance Company Limited (NJLI) introduce Amaan

(Retirement Plan) and Tabeer (Child Education & Marriage). These products have

been designed keeping HBL’s customer base as the focus and will provide life

insurance along with an investment option.

Amaan (Retirement plan)

Amaan is a pension plan that provides an opportunity for growth through investment

in a balanced portfolio with post-retirement income benefits. The plan covers life

insurance and gives attractive returns on investment to its customers.

Tabeer (Child Education and marriage plan)

Tabeer is a plan that provides parents with a means to accumulate a fund over a

period of time which can then be used to pay for a child’s education or marriage.

Plans are available for both under and over 45 years of age.


Lockers

Lockers are available in many of the HBL branches in different sizes like small,

medium and large; some branches also have extra large and cubical lockers. Except

rural areas because of security reasons.

Eligibility for using lockers

Only the account holders can avail the facility of lockers. The annual rent will be

directly debited from their respected accounts at the start of the year.

Charges

SizeKey deposit

(refundable)

Annual rent

Rs.

SMALL 2500 2750

MEDIUM 3000 3850

LARGE 4000 6050

Key deposit is refundable at the time handing over the locker to bank. For the staff of

HBL key deposit is not required and also the annual rent is very low for them.


Hbl corporate banking

HBL Corporate Banking Group comprises a seasoned team of Relationship

Managers (RMs) to meet the demanding service standards of large corporations. A

long history of financing and nurturing relationships in Pakistan has given HBL a

unique insight, enabling it to provide timely and effective financial solutions for their

customers to meet the growing challenges of a global economy. For a corporate

customer, with a turnover of at least PKR 300 million, HBL has a range of solutions

designed to help him with his banking needs. Their RMs have the expertise

customer need to create tailored financial solutions catering to the specific

requirements of his business. Whether establishing a new venture or expanding an

existing business, HBL’s team understands customer’s banking needs and works

closely with him to realize his goals.

Services

HBL provides the following services to meet customers funding requirements:

Working Capital Finance, including Overdraft, FE Loans, etc.

Pre and Post Shipment Export Financing (PKR and USD based)

Import Financing (PKR and USD based)

LMM Funding

Receivable Discounting

Islamic Banking facilities

Cash Management Services

Trade Services including Letter of Credit, Letter of Guarantee and Standby

Letter of Credit, etc.

HBL CORPORATE CENTERS

1.Corporate Centre, Karachi 6.Export Processing Zone, Karachi

2.PIA Branch, Karachi 7.Steel Mills, Karachi

3.Stock Exchange, Karachi 8.Stock Exchange, Lahore

4.Corporate Centre, Islamabad 9.Morga Branch, Rawalpindi

5.Corporate Centre, Faisalabad 10.Corporate Centre, Multan

http://www.hbl.com/business-customers-cash.php

http://www.hbl.com/business-customers-islamic.php


11. Karachi Port Trust, Karachi

HBL Commercial banking

HBL’s Commercial Banking Group targets medium sized companies with a turnover

of at least PKR 50 million. Its business units are located in Karachi, Lahore,

Faisalabad, Sialkot, Gujranwala and Peshawar. Each unit is dedicated to service

business clusters located within these cities. They have the ability and the resources

to meet the needs of customer’s business with their pro-active, responsive and

experienced Relationship Managers who are committed to understanding customer’s

business.

Services

HBL offers financing for the following:

Working Capital

Procurement of Inventory

Receivables

Procurement of Machinery

Expansion of production facilities

Import of raw materials

Exports

Guarantees

HBL COMMERCIAL BANKING CENTERS

1.Al-Noor, Karachi 9.Foreign Exchange, Karachi

2.Korangi Industrial Area, Karachi 10.Napier Road, Karachi

3.Saddar, Karachi 11.S.I.T.E. Karachi

4.Tariq Road, Karachi 12.Panorama Centre, Lahore

5.Badami Bagh, Lahore 13Peco Road, Lahore

6.Kashmir Road, Sialkot 14.Paris Road, Sialkot

7.Small Ind. Estate, Sialkot. 15.Circular Road, Faisalabad

8.Peoples Colony, Faisalabad 16.Trust Plaza, Gujranwala

17.Super Market, Peshawar


Hbl zarai banking

HBL ZaraiBanking facilities are spread across the country and provide financing

through more than 800 of their branches. HBL’s presence in all agriculture belts of

the country ensures easy access to farmers in rural areas. HBL ZaraiBanking

provides loans to small-scale land owning farmers as well as large institutionalized

and alliance based finance, enhancing agricultural harvest and, in turn, economic

output of the country.

Products

HBL ZaraiBanking enables farmers to invest in premier quality seeds, fertilizers,

pesticides, agricultural implements and non-farm setups through its various product

programs.

Crop Inputs

Crop specific finance for purchase of Agriculture inputs such as seed, fertilizer,

pesticide and other related inputs.

Farm Implements

Finance available for purchase of farm implements & machinery like combined

harvester, sprayers, ploughs, tube wells and other crop-related tools/implements.

Tractors/Agricultural Vehicles

Finance available to individual farmers, self-employed tractor operators, providing

the option to select vehicles from a range of different manufacturers.

Livestock

Finance available for feed, medicines, raw material, raising charges and other

related activities.

Poultry


Finance available for all poultry related activities including poultry farm

construction/equipment, hatchery plant & machinery, poultry feed, poultry medicines,

composite feed production, poultry processing and other related activities.

Fish Farming

Finance available for inland fish farms as well as deep-sea fishing. This includes

procurement of boat, fish locating equipment, nets & ropes, ice maker, fish farm

water solution, hatchery construction/equipment, purchase of medicines / feed and

other related activities.

Group Lending

Joint finance facility for a group of farmers with small land holdings for working

capital requirement.

NOTE: These finances may be availed under Demand Finance or Running Finance

categories. Demand Finance is usually available for short term financing needs while

Running Finance is available on the basis of revolving limit.

Islamic banking

Islamic Banking is a growing market segment that offers attractive opportunities to

potential and existing customers. At HBL, Islamic Banking offers Shariah compliant

products and services to meet the short and long term requirements of business,

trade and industry.

Shariah Compliance

HBL’s Islamic Banking products are in strict compliance with the tenets of Shariah

and bear Shariah Compliance Certification from an independent Shariah Advisor.

Their Shariah Advisor has in depth experience in Shariah rulings (Fatawa) and

teachings at different forums with qualifications of Dars-e-Nizami, M.A and L.L.B.

HBL also have a Shariah Scholar, as member of their Shariah Supervisory

Committee to ensure a sound Shariah Compliance mechanism, giving prompt

responses to customer’s needs and access to Shariah knowledge.


Products and Services

Corporate and Commercial customers can choose from Shariah compliant banking

solutions to meet their business needs.

Ijarah (Leasing)

Medium to long term facility for vehicles, plant and machinery leased out to the client

on rental basis.

Diminishing Musharaka

Medium to long term facility for vehicles, plant and machinery on joint ownership

basis.

Murabaha

Local and Import facilities for purchase of raw materials, semi finished and finished

goods, stores or spares.

Trade Services

Letter of Credit Facility, Collection of Foreign Bills, Collection of Local Bills, Letter of

Guarantees.

Customers are welcome to visit their Islamic Banking branch for the following

services:

Current Account (PKR, USD, EURO, POUND STERLING)

Basic Banking Account

ATM/Debit Card Facility

Foreign / Inland Remittances

Utility Bills Collection

E-banking / Internet Banking Services

24/7 Phone Banking Services

Personalized customer friendly services

Saving Deposits will be introduced soon

Branch

AddressFinlay House Ground Floor I.I Chundrigar Road Karachi


Contact details: 021-32429304, 32429431&32

Fax 021-32429307

E-mail [email protected]

Learning as an intern

As every body knows that "Knowledge without practice is sterile "In order to give

vent to this idea an Internship program of six to eight weeks has been arranged in

different esteemed organizations during M.B.A. In this regard on 15th of June 2009, I

was asked by Mr. Mirza Saeed (HR officer in HBL regional office Sahiwal) to go to

Habib Bank Jinnah Chowk branch to start an internship of seven weeks there.

During this period I got a chance to work and learn in following departments of the

bank:

Foreign exchange department

Bills clearing department

Credit department

I.T department

Cash department

Accounts, ATM and Lockers department

Duties and learning in Foreign exchange departmentFirst of all I started my training in foreign exchange department of the bank under the

supervision of Mr. Asif Iqbal (Manager Forex department). I came to know about the

different functions of foreign exchange department and how to perform these

functions during my work in the department.

My duties in the department were related to the followings:

Foreign currency exchange rates.

Letter of credit (L.C) both opening and negotiation.

Letter of guarantee

Issuing check books for foreign currency accounts

Remittances applications.

mailto:[email protected]


Learning

Opening of letter of credit. Bank starts working on opening process after an

application is received from the buyer (importer). I came to know about the process

of opening of L.C, documents that bank demands from applicant, form used for that

purpose, getting A.T (Availance Ticket) from regional head office and scanning and

mailing the documents to head office Karachi for the purpose of getting approval,

and payment on maturity date. Opening and negotiation both are centralized process

in Habib bank therefore approval from head office is required.

Negotiation of L.C. Bank starts negotiation of letter of credit (which would be

already opened by importer’s bank) after the application from seller (exporter).

Before sending the documents for payment to importer bank negotiator bank must

ensure that the entire document mentioned in Claus 46A of the L.C are attached and

complete.

During the week I also worked on Remittances application. An applicant who

wants to transfer funds abroad must have a foreign currency account in the bank.

Because State Bank of Pakistan only allow account to account transfer of funds

abroad through banks. And I came to know about the process and information

required to fill the form. I also came know about the process of issuing foreign

currency account’s cheque book to customers. During the week I learn many things

about the mechanism of foreign trade.

Duties and learning in bill clearing departmentThe second department in which I got a chance to work was bill clearing department.

During the work in clearing department I came to know about the different functions

of clearing department and how to perform them. I came to know the process of

receiving cheques by Dak, how to check cheques for any error like, the cheques

should be of the bank which is the clearing member of area which comes under

Jinnah Chowk branch for example if the cheque is of bank Al-Fallah Lahore then it

should go to zonal branch of Lahore region instead of zonal branch of Sahiwal. Then

checking whether the amount of cheque and OBC (outward bank collections)

voucher attached to it is same or not. If no error is found then making register entries

by noting down their OBC number branch code and amount of the voucher. Then:

Calculating the total amount of vouchers by summing individual amounts.

Calculating the total amount of cheques by summing individual amounts.

Preparing an add list to be attached with clearing instruments (cheques).

Writing vouchers for demand drafts.


And I also came to know about the different types of stamps and their use in

particular situation like DAK RECEIVED stamp and CLEARING stamp. After

attaching add list, clearing instruments are handed over to NIFT for further

processing. These clearing instruments are delivered to their respective banks for

clearance by NIFT. I also learnt in case of Banker’s Cheques how to verify signature

from the book in which all the signatures of authorized persons of HBL are given with

their specific code. And I also worked on OBC (Outward bank collection) forwarding

schedule. I came to know the process of sending cheques or other clearing

instruments for clearance to zonal branch of another region.

Filling vouchers

Assigning OBC numbers

Making entries in OBC register

Duties and learning in credit departmentAfter bill clearing department I started my work and learning in credit department of

the branch. Mr. Haroon Butt (Credit Manager) told me about the terms and

conditions of the commercial loan, types of commercial loan like industrial loan and

loan for merchants, how to make proposal for commercial loan, document required

to make a proposal, markup of commercial loan (18.5 % annually). He also gave me

chance to view some old proposals and the proposal on which he was working.

Mr. Asif (assistant for Mr. Haroon butt in credit department) who is dealing consumer

financing. He told me about different types of consumer financing.

Flexi loan (personal loan)

Auto finance

Lifestyle loan

In Sahiwal region at this point of time from HBL only personal loan is active while

auto finance is about to start again in near future and lifestyle loan is inactive. I came

to know about the terms and conditions of personal loan. Only the government

servant who has his salary account at least six month old in HBL can apply. Different

markup for different categories like 21%, 23% and 25%.

21% for existing users’ upto 3 year duration

23% for existing users for 4 or 5 years duration.

25% for new customers

I also did work on documentation process for personal loan. I came to know about

the different types of document required to complete a case for sending it to regional

head office for approval. Document like branch check list, application form, Copy of


CNIC of customer and two references, CNIC verification report from NADRA,

customer’s account statement, finance agreement form etc.

I also came to know about different types of securities which a bank demands from

customer while issuing loan. e.g. Guarantees, Mortgage, Hypothecation and Pledge.

Duties and learning in Accounts, ATM and Lockers departmentThen I learned about ATM (automatic teller machine). I came to know about the

functions and working process of ATM machine. Loading cash and balancing at the

time of loading again. Next my main concern was to know about all the aspects of

ATM card. I came know about the types, process of issuing ATM card to customers,

filling forms, how to activate ATM card, charges of issuing and using ATM card.

Then I spent my time in lockers department. I took all the information about the

terms and conditions of allotting and operating a locker, types of locker like small,

medium and large, charges of using lockers, key deposit (refundable), filling

application forms, insurance amount for specific size of locker and etc. I also came

to know about the process of operating locker by the customer, how to open the

locker with the help of two keys.

1 key in the hand of bank officer (anticlockwise)

2nd key in the hand of customer (clockwise)

Customer is allowed to operate the locker in full privacy. Only the customer himself

or other person authorized by him can operate the locker. After that bank officer has

to take the signature of the customers on attendance register maintained for this

purpose.

Then my duty was in Accounts department. I came to know the procedure for filling

the form to open an account, different types of stamps required and about signature

of the staff. Documents required to be attached with the form.

Copy of CNIC

Utility bill

Provisional receipt

KYC (Know Your Customer)

And how to post an account on system after filling the form. Then I came to know

about Saving accounts and different types of accounts in saving category and terms

and conditions of each type.

1. HBL Value Account

2. PLS-Savings Account


3. Remittance Munafa Plus Savings Account

4. Daily Munafa Account

5. Daily Progressive Account

Then current accounts

6. HBL Business Value Account

7. Current Account

8. Basic Banking Account (BBA)

Term accounts

9. HBL Advantage Account

10. Investment plus Deposit

FC accounts

11.FC-SB

Savings Account offered in 3 currencies, USD (US dollar), EUR (Euros) and GBP (UK pound)

12.HYFFD (High Yield Foreign Currency Fixed Deposit)

Available in 1 month, 2 month, 3 month, 6 month and 12 Month in USD, EUR and GBPAssignments

(1)During my work in accounts department Mr. Khalid Dogar (manager operation)

assigned me the duty of checking the files of previously opened accounts for any

type of discrepancies like utility bill or service certificate of the account holder is

attached or not and checking stamps and signature of the staff etc. It was because

an audit of these files in the coming month is scheduled. Almost above 50% of the

application forms were having discrepancies of different types. This turns out to be

very informative experience for me. Deposits are considered as lifeblood for any

bank to survive. I came to know about the procedure and different types of deposits

that customers can maintain in HBL, return rates that a customer can get and other

terms and conditions of each type of account. As far as checking the old files are

concern it seems boring but from my point of view it was very informative. The

learning I got while doing this job would never be easy to get otherwise.

(2) Mr. Khalid Dogar assigned us another task. State bank of Pakistan has instructed

all the banks in Pakistan to make sure availability of computerized national identity

cards of all the account holders. We were given a list of accounts from which CNIC

was required and preprinted letters. Our task was to take the information from

accounts like Name, Address and Account type by entering the account number in


the system and then printing that information on one corner of the letters. This also

turns out to be a very informative experience for me. I learn and get a chance to

work on computer software that the HBL is using, how to view account information,

checking balances and updating the information.

(3) Due to my familiarity with their computer software I was given another task of

updating account information on their computer system MISYS. Like account

holder’s name, address, CNIC number etc. In case of any problem I was consulting it

with Mr. Asif Iqbal. This task gave me more chances to learn about the computer

system of HBL and also I can proudly say that I have my own share of working in

computerizing HBL’s record.

How this experience will impact my careerWorking for 07 weeks in HBL Jinnah Chowk branch as an intern was very

informative experience for me. During the time I learnt many new things which are

surely going to help me in my professional career. It was a good experience for me

to observe and to be the part of practical working of an organization like HBL. During

the internship I got a chance to understand general consumer’s behavior and his

needs and wants related to banking services and products.


Financial performance and achievements of HBL in 2008

Financial performance

Financial Statements

Ratio analysis

The financial results for the first quarter of 2009

Financial highlights 2008

Achievements

HBL - 'The Best Emerging Market Bank in Pakistan'

2008 HBL - 'Most innovative Global Trade Finance' award

2008 - 'Best bank In Pakistan' Award

2008 HBL Milestones - 'Buzziest Brands' Awards


Habib Bank LimitedBalance sheet

As on 31 December 2008


Habib Bank LimitedProfit & loss Account

As on 31 December 2008


Ratio Analysis of the HBL:

“An index that relates two accounting numbers and is obtained by dividing one

number by other”

Ratio Analysis is an important and age-old technique of financial analysis. It

simplifies the comprehension of financial statements. Ratios tell the whole story of

changes in the financial condition of business. It provides data fro inter firm

comparison. Ratios highlight the factors associated with successful and unsuccessful

firm. They also reveal strong firms and weak firms, over- valued and under valued

firms. It helps in Planning and forecasting. Ratios can assist management, in its

basic functions of forecasting, planning, co-ordination, control and communication.

Ratio analysis also makes possible comparison of the performance of different

divisions of the firm. The ratios are helpful in decision about their efficiency of

otherwise in the past and likely performance in future. Ratios also help in Investment

decisions in the investors and lending decisions in the case of bankers etc.

Following are the main types of ratios that I am going to calculate in this report to

compare and highlight the financial performance of Habib bank in 2008 with 2007.

Return on Equity Ratio

Return on Assets

Loan to Assets ratio

Net Profit Ratio

Loan to Deposit


Return on Equity Ratio

Interpretation: The past two years data shows an improvement in the return on equity which is a

positive sign. The Bank should have to continue its policies. By observing the

audited account I found that this improvement is due to increase in the Net profit

which is good sign.

Return on Assets Ratio

Interpretation:

Return on Equity Ratio 2008 2007

Net Profit after tax X 100Owner EquityNet Profit after tax

15,614,020 10,084,037

Owner Equity75,180,436 63,237,429

Return on equity 20.76 15.94

Return on Assets

2008 2007

Net Profit after tax X 100Total AssetsNet Profit after tax

15,614,020 10,084,037

Total Assets757,928,389 691,991,521

Return on Assets 2.06 1.45


Return on assets ratio shows an improving trend. This ratio shows that the both the

Net profit and Total Assets has improved in 2008 than 2007. But net profit has

increased more rapidly.


Interpretation:

Loan to Asset Ratio is showing increasing trend in 2008. This is because advances

are increasing more rapidly than assets of the bank.

Net Profit Ratio


2008 2007

LoansAssets

Advances456,355,507 382,172,734

Assets 757,928,389 691,991,521

Loan to Assets ratio60.21 55.22

Net Profit Ratio 2008 2007

Net profit / Interest Income X 100

Net profit 15,614,020 10,084,037

Interest Income 43,970,884 33,250,937

Net profit ratio35.50 30.32


Interpretation:Net profit Ratio is giving upward trend. This trend is observed due to increase in Net

profit but on the other hand the expenses decreases which shows an efficient

management.

Loan to Deposit Ratio

Interpretation:

Loans to deposit ratio show an increasing trend in 2008 as compare to 2007. This

trend is observed as the advances and deposits both are increasing but advances

are increasing more rapidly than deposits.

Loan to Deposit

2008 2007

Loans/Deposits*100

Advances456,355,507 382,172,734

Deposits 597,090,545 531,298,127

Loan to deposit ratio76.43 71.93


The financial results for the first quarter of 2009 are

(Rs. In 000)

Profit after tax 3,384,623

Share of profit attributable to minority interest 45,063

Profit attributable to shareholders 3,339,560

Earnings per share rupees (Basic & Diluted) 4.40

Financial highlights 2008

In the following diagram HBL’s balance sheet’s and income statement’s items for

2008 are compared with the items of 2007 and percentage growth is also calculated.


Achievements

HBL - 'The Best Emerging Market Bank in Pakistan'

HBL has been selected as ‘The Best Emerging Market Bank in Pakistan’ by Global

Finance Magazine.

Global Finance magazine has named the “Best Emerging Market Banks in Asia” in

an exclusive survey to be published in the May 2009 issue. Global Finance editors—

with input from industry analysts, corporate executives and banking consultants—

selected the best emerging market bank in the region and in 20 countries. Global

Finance reports on the international finance sector, covering topics such as

corporate finance, joint ventures and M&A, country profiles, capital markets, investor

relations, currencies, banking, risk management, custody, direct investment, and

money management. The magazine also holds several awards ceremonies

throughout the year to recognize the winning financial institutions and companies.


2008 HBL - 'Most innovative Global Trade Finance' award

HBL received the 'Most Innovative GTFP (Global Trade Finance Program)' award.

The award was received at the International Finance Corporation Annual Trade

Conference in Paris where 126 issuing and 145 confirming multinational banks that

were present. Mr. Tariq Mateen - Head Financial Institutions Division, gave a

presentation showcasing the success of HBL in the global trade financing business.

The award was received by Mr. Mateen and Mr. Anwar Zaidi – Head Operations.

This recognition has raised our profile among a large forum of international banks

and paved way for IFC to increase our facility from USD 75 million to USD 100

million which has helped us in creating liquidity in our international network

2008 - 'Best bank In Pakistan' Award

In October 2008, HBL received the ‘Best Bank in Pakistan’ award in recognition for

its continuous efforts in providing world class products and services to customers.

Award was received by Mr. Sultan Ali Allana - Chairman. The ceremony in

Washington was also attended by Mr. Zakir Mehmood - President & CEO, Mr.

Nauman Dar - Head International Banking and Mr. Tariq Mateen - Head Financial

Institutions Division.


Mr. Sultan Ali Allana (right) receiving the award

2008 HBL Milestones - 'Buzziest Brands' Awards

Revelation Inc, a Pakistan based brand Development Company, carried out a poll

among marketing and advertising representatives, as well as a panel of judges to

pick the most active brand in Pakistan. HBL was received the “Buzziest Brand”

award in the Banking and Financial Institutions Category. HBL was competing with

strong consumer brands like Olpers and Coca Cola yet accomplished third position

among top five brands in the entire advertising industry. The award was received by

Mr. Aly Mustansir - Head Marketing and Brand Management. The first two places

were awarded to telco brands, Telenor and Mobilink.

Recommendations

As we seen from the previous analysis of the financial statements I have realized

that that Habib Bank is performing very well since its inception. It is quite difficult to

give suggestion to improve the banking conditions Habib Bank Limited. As we know

that nothing is perfect, there is always a room for improvement, so I will recommend

following suggestions for HBL:

Employees Training programmes must be introduced on continuous

basis so that Employees have understanding with the latest

developments especially with the customers.

Bank should introduced incentive plans for employees on regular basis

so that if employees may work whole heartedly for the welfare of their

organization. While giving incentives qualification, work, experience,

hard work and such other factors must be considered.

Mismanagement of resources must be avoided as much as possible as

it decreases profit but also discourage hard worker and honest

employees.


Fresh graduates must be recruited. As the combination of Experienced

and fresh can produce better results and it will improve the efficiency of

management.

Habib Bank is going towards mobile banking but the problem is that a

common client has no idea of its usage due to lack of marketing. I

think that a proper marketing programme must be launched for client’s

awareness.

Banks different schemes must be conveyed to the targeted customers

so that to have a reasonable share in market.

Bank should help the society by providing interest free loans to the

Talented Students.

Online Banking should be introduced in all the branches.

To motivate the employees their remuneration / salaries should be

made at par with top tier Banks.

Aggressive publicity campaign must be introduced through press and

Electronic media for new products and scheme by initiating vigorous

marketing policy.

Bank should adopt such an induction plan that when a customer opens

his account with the bank he should be supplied with a booklet which

enables him to know the procedure of filing the cheques, pay-in-slip

etc. It will save a lot of time of the bank staff afterward during the

conduct of the account of that customer.

The attitude of the bankers with all of their customers is not the same;

they pay more attention and good service to some of the customers

and neglect a major portion of them. Some of the customers approach

to the bank officials and get their work done before others; it is not a

good practice. All the customers should be treated equally.

HBL should increase its communication with customers about the

terms and conditions of its different products and services.


Glossary

CIIT: COMSATS institute of information technology

D.D: Demand Draft

A/C: account

O.B: Other Bank

O.B.C Outward Bills Collection

P.L.S: Profit and Loss Account

Dr: debit

Cr: Credit

C.A: Current Account

F.L: Flexi loan

L.G: Letter of Guarantee

D.F: Demand Finance

L.C: Letter of Credit


R.F: Running Finance

F.A.P.C: Finance against Packing Credit

HBL Habib Bank Limited

ABL Allied Bank Limited

MCB Muslim Commercial Bank

NBP National Bank Limited

UBL United Bank Limited

NIFT National Institutional Facilitation

Technologies (pvt) LTD.

BibliographyMaterial on these books, articles and websites has helped me a lot in preparation

this report

Books

HBL Corporate Profile 2008

HBL Annual Reports 2008 and 2009 first Quarter

Articles & Documents

BANKING SECTOR REFORMS IN PAKISTAN:

http://www.ishrathusain.iba.edu.pk/speaches/BANKING_SECTOR_REFORMS.pdf

www.encyclopedia.com/doc/1G1-61864366.html

Websites

www.hbl.com

www.habibbankltd.com

http://www.habibbankltd.com/

http://www.hbl.com/

http://www.ishrathusain.iba.edu.pk/articles/BANKING_SECTOR_REFORMS.pdf

http://www.ishrathusain.iba.edu.pk/speeches/BANKING_SECTOR_REFORMS.pdf


www.hblasset.com

www.investopedia.com/articles/07/banking.asp

wiki.answers.com/Q/Evolution_of_banking

Index

Annex A:

INTERNTSHIP CERTIFICATE

Annex B:

INDICATIVE RATES

Annex C:

ACCOUNT OPENING FORM

Annex D:

REMITTANCES APPLICATION

Annex E:

DEBIT CARD APPLICATION FORM

Annex F:

DEPOSIT SLIP

http://www.investopedia.com/articles/07/banking.asp

Internship Report HBL

Documents

Transcript of Internship Report HBL