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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
Internship Report on HBL
IN THE NAME OFALLAH WHO IS THE MOST
BENEFICENT THE MOST MERCIFUL
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Internship Report on HBL
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.
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Internship Report on HBL
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.
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Internship Report on HBL
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Internship Report on HBL
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.
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Internship Report on HBL
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
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20 SWOT ANALYSIS 7822 Conclusion 81
23 SUGGESTION 82
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Internship Report on HBL
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.
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Internship Report on HBL
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
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Internship Report on HBL
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
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Internship Report on HBL
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
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Internship Report on HBL
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.
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Internship Report on HBL
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
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Internship Report on HBL
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
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Internship Report on HBL
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
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Internship Report on HBL
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
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Internship Report on HBL
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%
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Internship Report on HBL
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
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Internship Report on HBL
STRUCTURE
PRESIDENT
SENIOR EXECUTIVE VICE - PRESIDENT VICE- PRESIDENT
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VICE- PRESIDENT
ASSISSTANT VOICE PRESIDENT
OFFICER GRADE I
OFFICER GRADE II
OFFICER GRADE III
CASHIER
CLERCK
Internship Report on HBL
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
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Internship Report on HBL
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.
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Internship Report on HBL
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.
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Internship Report on HBL
OPERATIONS
OF THE BANK
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Internship Report on HBL
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.
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Internship Report on HBL
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.
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Internship Report on HBL
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.
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Internship Report on HBL
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.
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Internship Report on HBL
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
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Internship Report on HBL
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
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Internship Report on HBL
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.
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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
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Internship Report on HBL
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.
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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.
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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
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Internship Report on HBL
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
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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
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Internship Report on HBL
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.
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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.
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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.
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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.
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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.
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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.
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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
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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.
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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%
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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
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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
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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
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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
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-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.
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MISCELLANEOUS FUNCTIONS OF
ALL DEPARTMENTS
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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/-
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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/-
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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
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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.
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KARACHI
HABIB BANK LIMITED
SONERI BANK
ASKARI COMMERICAL BANK
LAHORE
SONERI BANK
ASKARI COMMERICAL BANK
ABN –AMRO BANK
ISLAMABAD/RAWALPINDI
SONERI BANK
ASKARI COMMERICAL BANK
ABN –AMRO BANK
MULTAN
HABIB BANK LIMITE
ASKARI COMMERICAL BANK
SIALKOT
HABIB BANK LIMITE
ASKARI COMMERICAL BANK
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FAISALABAD
HABIB BANK LIMITED
PESHAWAR
HABIB BANK LIMITED
GUJRANWALA
HABIB BANK LIMITED
HAYDERABAD
HABIB BANK LIMITED
ASKARI COMMERICAL BANK
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.
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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
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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
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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
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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
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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:
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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:
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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:
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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:
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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.
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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.
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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.
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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.
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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.
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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
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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
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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
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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.
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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.
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It is therefore suggested that the bank should decrease its interest
expenses on deposit by opening more currents account than saving
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
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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.
It is therefore suggested that the bank should decrease its interest
expenses on deposit by opening more currents account than saving
accounts and giving more advances and maintain more reserve accounts
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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.
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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.
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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.
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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.
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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.
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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
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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/
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