Internship Report M.sc

7/30/2019 Internship Report M.sc

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Preface

Every batch of participants pursuing the MSc course in The Islamia University ofBahawalpur is involved in Internship Program as part of their course curriculum. For

improving my knowledge and practical skills the Commerce gives me this

opportunity to do Internship in Habib Bank Limited Ahmad pur road Bahawalpur to

enhance mine knowledge and skills which will be beneficial for me.

My work here is mostly related to retail and consumer banking. I spend most of time

in account opening, clearing, remittance, foreign exchange and credit department.

During my internship different projects and assignment assigned to me by mysupervisors of different. Like Mr. Faheem baig, incharge of accounts opening

department assigned a target to help him in account opening of customers and

advertise the new products of HBL like HBL Value Account and Money Club

Accounts. Similarly Mr. Yaqoob, incharge of remittance Department assigned me a

target to help him in his work. Mam Sumaira, incharge of advances and insurance

department also tell me about her work. I also spend time on reception of HBL to

learnt public dealing.

This report contains the necessary information about the sections and functions of

HBL. This report is prepared in simple and understandable format so that ordinary

person can also take benefit from this report.While preparing this document in its

present shape, a number of people extended their help. I wish to thank all of them. I

gratefully acknowledge the officers of different departments for updating and in some

cases revising the paragraphs relating to their respective working.


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Dedicated To

My respected parents & teachers and

Supervisors in HBL,

Who gave me this opportunity.

To showMy potential and skills and whose endless

Support and Kindness

Is beyond expressions and words

May not

Just is enough to express

My gratitude.


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EXECUTIVE SUMMARY

HBL established operations in Pakistan in 1947 and moved its head office to Karachi Ourfirst international branch was established in Colombo, Sri Lanka in 1951 and Habib

BankPlaza was built in 1972 to commemorate the banks 25th Anniversary. HBL has the

largest Corporate Banking portfolio in the country with an active Investment Banking

arm. It encompasses product offerings and services in Retail Banking and, in recent

years, Consumer Banking as well.

Satisfying customers are the only way to stay competitive in today's Market Place. The

balancing act between what customers want and what the HBL can provide must be

optimized in order to maximize HBLs long-term profits.

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

South and Central Asia, Africa and the Far East.

With a domestic market share of over 40%, HBL was nationalized in 1974 and it

continued to dominate the commercial banking sector with a major market share in

inward foreign remittances (55%) and loans to small industries, traders and farmers.

International operations were expanded to include the USA, Singapore, Oman, Belgium,

Seychelles and Maldives and the Netherlands.

HBL is currently rated AA (Long Term) and A-1+ (Short term). HBL is the first

Pakistani bank to raise Tier II Capital from external sources.


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Introduction

Habib Bank Ltd is a Banking HBL which is engaged in Commercial & Retail Banking

and related services domestically and overseas. HBL Enjoy 20% of the market Share in

Pakistan. Today HBL is truly the bank of the people Providing its customers on venience

and Satisfaction all Over the world. Habib Bank Plaza, the tallest building in Pakistan, is

the proud symbol of HBL leadership In Pakistans corporate ground. HBL is currently

uses rate AA and A1+

HABIB BANK GROUP is a leader in Pakistans services industry. An extensivnetworkof 1425 domestic branches the largest in Pakistan and 55 international branches to meet

customer needs. Perhaps the HABIB BANK LIMITED establish in 1941 at Bombay.

But its history starts in 1841 when a young boy name Ismail Habib reach Bombay for

job. After some time he got the job with a dealer in utensils and non ferrous metals.

Ismail Habib was very keen and intelligent and became partner of his boss. Later on he

was elected as a president of the market. Many years later he expended his business. He

engaged in private banking. So HBL has come a long way from its modest beginnings in

Bombay in 25 august, 1941 when it commenced business with a fixed capital of 25000

rupees. Impressed by its initial performance, Quaid-e-Azam Muhammad Ali Jinah asked

the bank to move its operation to Karachi after the creation of Pakistan, HBL establish

itself in the Quaids city in 1943 and became a symbol of pride and progress for the

people of Pakistan. During the early days of newly born state, government of Pakistan

faces the great problem of fund shortage. This time HBL again helped the governance of

Pakistan and came to rescue to provide Pakistan with assistance of no t less than 8 crore.

Besides this, HABIB BANK has been a pioneer in providing innovative banking services

such as first installation of mainframe computer in Pakistan followed by ATM and more

Internet banking facilities in all branches. The main strength of HBL brand is its great


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services to all customers especially to the corporate customers and its prominent head

office building that has dominated Karachis skyline for 35 years.Mission statement

To be recognized as the leading financial institution of Pakis tan and a dynamic

international bank in the emerging mare t s , providing our customer s with a premium set

of innovative products and services , and granting superior value to our s take holders

shareholder s , customer s and employees .

Values of HBL

Humility:

We encourage a culture off mutual respect and treat both ourteam members and

customers with humility and care..

Integrity:

For us,, integrity means a synergic approach towards abiding our core values.. United

withtithe force of shared values and integrity,, we form a network of a well -integrated

team..

Meritocracy:

At every level,, from select ion to advancement,, we have designed a consistent system of

human resource practices,, based on object live criteria throughout all the llayers oftthe

organziation.. We are,, ttherefore,, ablle tto achiieve a speciifiic llevell of performance att

every llayer oftthe organiizatt iion..

Team Work:

Our tteam sttriives tto become a cohesiive and uniifiied force,, tto offfer you,, tthe

custtomer,, a llevell of serviice beyond your expecttattiions.. Thiis fforce iis deriived

from parttiiciipattiive and collllectt iive endeavors,, a common sett of goalls and a spiiriitt

tto share tthe gllory and the sttrengtth tto face faiillures ttogetther..

Cullture of Innovatiion:

we aiim tto be proacttiivelly responsiive tto new iideas,, and tto respectt and reward tthe

agentts,, lleaders and creattors of change..

.


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ESTABLISHMENT:

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. 2.5millon

BRANCHES:

Numbers of branch of HB L 1437.in the form of 1408 retail Banking branch 18

commercial banking division 10Corporate center 1 Islamic banking.

BANKS AND SCOPE OF BANKING

WHAT IS BANK?

A bank is an institution for the custody, loan or exchange of money for sanctioning

credit, for transferring funds by domestic foreign bills of exchange. It is a pipeline

through which currency moves into and out of circulation. As it is clear from the

definition of banking, the main activity or function of banking is borrowing and lending

of money with a margin of gain. However, as far as the present day banking is concerned,

there are a number of different banks, set up under specific different objectives,

performing various functions.

History of HBL

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


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Undertaking and executing trusts.

6) HBLs Products and Services

The following are the product and services of HBL:

HBL Car Loan:

HBL CarLoan helps you get your preferred car through a simple and hassle-free process,

backed by superior service and support. Now you can drive a car you always wanted.

Choice of used, new local/imported and reconditioned imported car. Repayment options ranging up to 7 years. Up to 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 Phone Banking; you can place

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

avail other value-added services through HBL Phone Banking.

C Eligibility Criteria:

riteria

Salaried IndividualsSelf-Employed Business

persons/ Professionals

Citizenship Pakistani Pakistani

Age 22-60 years 22-65 years

Minimum monthly income Rs. 20,000 Rs. 25,000


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Gold Card Green Card

Rupees Minimum gross salary requirements Rupees

50,000 Salaried individuals 15,000

180,000 Self-employed business persons/professionals 25,000

Rupees Credit limit range Rupees

150,000 Minimum 20,000

500,000 Maximum 149,000

Home Loan

HBL HomeLoan offers financing options to purchase a new house or renovate an

existing house. For details regarding available financing options, call HBL

PhoneBanking at 111-111-425 or contact your nearest HBL branch.


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Eligibility Criteria

Salaried IndividualsSelf-Employed Business

Persons/ Professionals

Nationality Pakistani (resident) Pakistani (resident)

Age criteria of the main

applicant and co-borrower

whose income is being

clubbed (spouse only)

Permanent employees

Minimum age at the time of

loan application should be 21

years. Maximum age at the

time of loan maturity should

be 60 years.

Contractual employees





be 55 years





be 65 years.

Length of Employment

Permanent employees

Minimum 1 year experience;

6 months experience with

confirmed employment status

in the current job.

Contractual employees

Minimum 2 years work

experience. Third party

contractual not eligible.

Minimum 2 years experience

in personal business


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Documentation

Salaried Individuals Self-Employed Business Persons/ Professionals

CNIC copy 2 passport size photographs Letter from employer 2 latest salary slips or salary certificate Bank statement for last 6 months and

bank letter confirming details of

account

Copies of property documents

CNIC copy 2 passport size photographs Proprietorship: Bank Certificate / Latest

Tax Assessment Order

Latest one year bank statement Partnership Deed Registered Form C Memorandum, Article of association

and registered Form 29 A (applies to

company directors)

Copies of property documents

Bank Charges

Application processing charges (including 16%

FED)Rs. 7,000/- (non-refundable)

Early settlement charges 4.7% of outstanding principal

Partial payment charges 4.7% of adjusted principal

Late payment charges Rs. 700 (for each late payment)

Property evaluation fee Actual cost plus 16% FED to be recovered

Legal fee Actual cost plus 16% FED to be recovered


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HBL Personal Loan

From quality education to a grand wedding to personal well-being, HBL Personal

Loan helps you fulfill your financing needs. Get hard cash the easy way with

HBL Personal Loan.

Features and Benefits

Processing fee on approval only

Repayment tenures from 12 to 60 months

Loan amount ranging from Rs. 25,000 to Rs.

2,000,000

24/7 access to HBL PhoneBanking

Top-up facility available after every 12 months

Documentation

The applicant should be 21 years or more at the time of loan application and 61 years or less at

the time of loan maturity. Requisite documentation is listed below:

Verified original copy of CNIC

Legal Agreement

Other documents required (According to segment)


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HBL Phone banking

HBL Pho

Your bank is just a phone call

away. You can now call HBL Phone

Banking and save a trip to the

branch. Your query will be resolved

in a single telephone call from

anywhere and at anytime. For

details on features and benefits

please see below.

Services:

Deposit Accounts

HBL CarToCar

HBL CarLoan

Mobile phone prepaid vouchers

T-PIN Generation

Your TPIN (Telephone Personal Identification Number)

is generated the first time you call and you can use it

as your password for verification purposes, self-

service banking through IVR and additional services

through our PhoneBanking Officers. You can change

your TPIN anytime you like.
http://www.hbl.com/individual-customers-phone-banking.php#1http://www.hbl.com/individual-customers-phone-banking.php#1http://www.hbl.com/individual-customers-phone-banking.php#2http://www.hbl.com/individual-customers-phone-banking.php#2http://www.hbl.com/individual-customers-phone-banking.php#2http://www.hbl.com/individual-customers-phone-banking.php#2http://www.hbl.com/individual-customers-phone-banking.php#3http://www.hbl.com/individual-customers-phone-banking.php#3http://www.hbl.com/individual-customers-phone-banking.php#3http://www.hbl.com/individual-customers-phone-banking.php#2http://www.hbl.com/individual-customers-phone-banking.php#2http://www.hbl.com/individual-customers-phone-banking.php#1


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HBL FastTransfer

HBL FastTransfer lets you receive your remittance instantly and absolutelyfree.

HBL - Pakistans largest banking network - provides unmatched convenience and a

confirmation SMS to inform you that your money is ready for collection.

HBL FastTransfer offers three modes for receiving money in Pakistan:

1. Fast Cash

Receive up to PKR 500,000 for instant collection from any HBL Branch.

2. Fast Direct Credit

Instantly receive money in any HBL account.

3. Fast Draft

Non HBL account holders can get their account credited the same day.


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Organizational structure:

The management and organizational structure of HBL is given as follow.

a. At Head Office Level:

Board of Directors

President

Credit

Committee

Internal

Audit

Secretary

Board

Treasury

Committee

HR

Committee

Credit

Control

General

Treasury

Personal &

Admin

Budget &

Finance

AccountsComputer

and IT

System &

Operation


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o International Operations:

HBLs ability to operate successfully in diversified markets and cultures is a function of

a long history in international banking when first international branch was opened in

1951. The Bank

s branches in financial centers continue to provide efficient tradesettlement and reimbursement services to the entire network and business with other

banks.

POLITICAL AND LEGAL ENVIRONMENT

Banks are strongly affected by the political and legal considerations. This environment is

composed of regulatory agencies and government law that influence and limit various

organizations and individuals. Mostly these laws create new opportunities for business.

Business legislation has following main purposes

To protect banking companies from unfair competition.

To protect consumers from unfair business practices adopted by banking companies

To protect the interest of the society from unbridled business behavior.

ECONOMIC TRENDS

A banking market requires better consumer market in volume along with higher

borrowing power. The available borrowing power depends on:

Consumer income

Saving rates

Consumption patrons

Rates of interest

Budget deficit

Exchange rates

Cost of living

Inflation


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SOCIO-CULTURAL ENVIRONMENT

A society is shaped by beliefs, norms and values. People in a society consciously and

unconsciously interact with:

Themselves

Others

Organization

Society

Nature

Following are the main factors. Which arise because of change in socio-cultural

environment?

Consciousness about services

Concern for environment

Improved customer relation

TECHNOLOGICAL FACTORS

Forces of technological advancement have played the most dramatic role in shaping the

lives of people. The rate of change of technology has greatly affected the rate of growth

of economy. New technology is creating deep rooted affects which could be observed in

long run. The improvement techniques involved in on line banking. In brief PEST

analysis affects the overall banking companies and provides us the information about the

external macro condition.


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Hierarchy Chart

PRESIDENT

Senior Executive Vice President (SEVP)

Executive Vice President

Senior Vice President (SVP

Vice President (VP)

Assistant Vice President (AVP)

Officers Grade -1

Officer Grade II


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Officer Grade I

Cashier

Clerks

Peon


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BOARD OF DIRECTORS

ZAKIR MEHMOOD PRESIDENT CHIEF EXECUTIVE

SULTAN ALI ALLANA CHAIRMAIN

AHMAD JAWAD DIRECTOR

SAJID ZAHID DIRECTOR


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DEPOSIT DEPARTMENT

Bank deals in money and they are merely mobilizing funds within the economy. They

borrow from one person and lend to another, the difference between the rate of borrowing

lending forms their spreador gross profit. Therefore we can rightly state that deposits are

the blood of the bank which causes the body of an institution to get to work. These

deposits are liability of the bank so from point of view of bank we can refer to them as

liabilities.

TYPES OF ACCOUNT:

1) CURRENT ACCOUNT:

In this type of accounts the client is allowed to deposit or withdraw money as and when

he likes. He may, thus, deposits or withdraws money several times in a day if he likes.

There is also no restriction of amount to be deposited or withdrawn. However, there is

requirement of minimum balance maintenance of Rs.5000/-. Usually this type of account

is opened by the businessmen. No profit is paid by the bank and no service charges are

deducted by the bank on current deposits account.

Eligibility:

I.

All Pakistanis Resident/Non-Resident, Individuals (Single-Jointly)

Companies/Firms etc. can open and operate the Account but he should be a

corporate customer.

II. Any Foreign National Individuals (Single-Jointly) having valid Resident PakistanVISA/Work Permit can open and operate the Account.

Requirements for Opening of Account:

Duly filled prescribed A/C opening FORM.

Attested photocopy of N.I.C./Passport of Account Holder(s), Proprietor, Partners,Directors and office Bearers as the case may be.

Certified true copy of the certificate of incorporation or registration (in case oflimited companies & registered bodies only).

Certified true copy of the certificate of commencement of business (in case ofpublic limited companies only).


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Certified true copy of the memorandum and articles of association (in case of

limited companies).

Certified true copy of rules and regulations or By-Laws (in case of associationetc.).

Certified true copy of the resolution of the Board of Directors/ManagingCommittee/Governing Body regarding conduct of the account.

Features:

Account can be OPENED with Minimum Balance Rs.1000/- with no maximumlimit.

Checking balance at any time during banking hours. No profit is paid. Statement of Account dispatched on request letter. There is no restriction for withdrawals of amount and number of cheque.

2) Profit and loss sharing savings:

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

account is opened with a minimum deposit of Rs. 1000/- or the amount prescribed from

time to time. The profit is paid on these accounts on the minimum balance during a onth

for the whole of that month. Zakat & other taxes are deducted as per rules of the

government. The requirements for this account is duly filled prescribed A/C openingFORM, Photo Copy of National Identity Card (Resident Pakistani), two Passport size

photographs with Signatures/Thumb Impression (Resident Pakistani), Photo copy of

Passport with Page bearing Resident Visa of the Country where Pakistani Residing, two

Passport size photographs and signatures on A/C Opening Form for Non-Resident

Pakistani with Signatures/Thumb Impression etc.

Features:

Account can be OPENED with Minimum Balance Rs.1000/- or prescribed limitthat is announced time to time with no maximum limit.

Profit is payable at monthly subject to adjustment on deceleration of actual profitrate declared every half year.

Profit is calculated on monthly products Zakat will be deducted on valuation dates of account.


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Profit is Paid/Credited in Account on half yearly basis in case of six monthly PLS

saving accounts.

Statement of Account dispatched on half yearly basis after posting of profit. There is no restriction for withdrawals of amount and numbers of cheque.

3) PLS special notice deposit:

Special notice deposit is paid on daily product bases. Under this deposit scheme, a

deposit is received from the depositor under the condition that he will intimate the bank

before a certain period in case of withdrawals. There are two types of special notice

deposit, they are 7 days and 30 days notice deposits. The profit is paid on these deposits

but it is nearly equivalent to saving account rate that is paid on special notes.

4) PLS term deposit:

A type of term deposit, in which a receipt is issued for varying tenors ranging of deposit.

It is in the form of receipts and profit on these receipts is paid biannually.

These receipts are encashable after expiry of the period for which they were issued.

Different profit rates are applied to different type of term deposit. It has no maximum

limit but not less than 1 month. Account opening rate is 1000 and the zakat is deducted

on the rules and regulation.

Eligibility:

All Pakistanis Resident/Non-Resident individuals, Firms/Companies, Govt/SemiGovt. Departments can purchase the TD.

Any Foreign National having valid Resident Pakistan VISA can purchase TD.Requirements for Purchase of TD:

Duly filled prescribed FORM. Photo Copy of National Identity Card (Resident Pakistani). Two Passport size photographs with Signatures/Thumb Impression (Resident

Pakistani).

Photo copy of Passport with Page bearing Resident Visa of the Country wherePakistani Residing


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Two Passport size photographs and signatures on A/C Opening Form for Non-

Resident Pakistani with Signatures/Thumb Impression.

Photo Copy of Passport with Page bearing Resident Visa of Pakistan (ForeignNationals).

Features:

TD can be purchased with minimum of Rs.1000/- with no maximum limit. Profit is payable at yearly rate declared every half year. Profit is Paid/Credited in Account on half yearly basis. The holder of term deposit receipt must keep the receipt under lock any loss of

receipt must inform the bank because without it the bank will not pay the amount.

5) PLS khas term deposit:

Pls khas term deposits are acceptable for a period ranging from one and half year to five

years in multiple of six months. In this regard the profit is declared from time to time but

will be paid only once at the time of encashment of receipt of maturity. Zakat will be

deducted only once at the time of maturity or before maturity.

Account opening in special cases

Blind person account:

A blind person can easily open an account in the bank like other persons but it is

preferred that he should open a joint account with a normal person. If he wants to open

the account individually, there should be an authorized person with him who checked the

signature and the amount filled by blind person. The banker can not fill the amount and

check the signature. The one thing that is provided extra by the blind person is two

photographs duly attested by an authorized person.

Non resident person account:

Non-resident persons are those who do not live in Pakistan permanently. According to the

tax authority the non-resident persons are those who live in Pakistan:


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In case of foreigner not more than 180 days.

In case of Pakistani not more than 90 days etc.

In proceeding 4 years not more than 365 days.

All things will remain same, only one thing that is passport copy of the person will have

to provide to the bank. The logic behind this is that the bank insures the entry and the exit

date of the person in Pakistan. The person has to inform bank 15 days before entering in

Pakistan and the bank also send this information to State Bank of Pakistan. After getting

this information State Bank give instructions to bank about handling of not resident

persons account. Zakat treatment on all accounts Zakat will be deducted on all accounts

except the followings:

Fiqah Gafreia account.

Non Muslim

s account.

Trust account.

Government account.

Provident fund.

Defense account.

Non Pakistanis account.

REMITTANCES DEMAND DRAFT:

Demand draft is a written order drawn by a branch of a bank upon the branch of same or

any other bank to pay certain sum of money to or to the order of specified person. It can

be issued to the customers as well as non customer against cash cheque and letter of

instruction.

Demand draft is negotiable instruments that can be negotiating at any time before its

cancellation. Its Legal provisions are same as that of cheque.

Following parties are involved in demand draft:

Applicant

issuing branch


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drawee branch

Beneficiary

A demand draft may be issued against the written request of the customer before issuing

it must be seen that the demand draft is in order.

The DD application must be scrutinized by the counter clerk in respect of following

points.

There should be branch where payment is to be made.

Full name of payer should be mentioned.

Amount in words and figures must be same

The applicant on two places should sign application.

TELEGRAPHIC TRANSFER:

Telegraphic transfer means the transfer of funds from one branch to another branch of the

same bank or upon other bank under special arrangements just like a telegram.

Telegraphic transfer is not negotiable and the funds are not payable to bearer.

Minor cannot avail this facility. In telegraphic transfer the bankers use secret codes. One

code is with issuing person and the second is with an other person. When they combine

the codes its become an amount that is called check. The payment is made after the

confirmation of the check.

Following parties are involved in TT

Applicant

Drawing branch

Drawee branch

Beneficiary

Following important things should be included in TT:

Full name of the beneficiary or account number should be mentioned in the application form. Instruction regarding mode of payment should be obtained. A record in the remittance outward register should be maintained.


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All the remittance must be controlled through number or codes.

PAY ORDER:

Pay order is an instrument through which payment can be made from one bank to another

bank. Pay order is meant for bank own payment but in practice they are also issued to

customers.

Following parties are involved in pay order:

Applicant

issuing branch

Payee

MAIL TRANSFER:

Mail transfer is not negotiable and the procedure of it is same with the procedure of

DD.When a customer request the bank to transfer his money from this bank to any other

bank of the branch of same bank in the city, outside the city of outside the country the

first thing he has to do is to fill an application form. In which he states that I want to

transfer the money from this bank to that specific bank by mail. If the customer is the

account holder of this bank, the bank will debit his account and the concerned officer will

fill forms to make the mail transfer complete.

If the customer is not the account holder of the bank, then firstly he has to deposit the

Money and then rest of the procedure will be adopted to transfer his money

STAFF MEMBER AND THEIR

DUTIES


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1-MANAGER: Mr.MUSSARAT BAJWA.

1) Opening of new CD, PLS, Advantage accounts etc.2) Checking of cash book & general supervision.3) All types of correspondences.4) Audit.

2-MANAGER OPERATION: Mr.ZAHAID.

1) Lockers maintenance, recovery, Rent & ATM issued.2) Old record maintenance.3) Reconciliation of Unreconcile Entries & with holding tax.4) Handling of security stationary.5) Supervision of daily transaction & NBP RSF,TT etc.6) Issuance of cheques books, Bankers checks, HMT, HRD etc.7) Weekly and monthly balancing.8) Maintain of computer record9) Any other duty assigned by the manager.

3-MANAGER CREDIT: Miss Saima.

1) Processing of Fund Base / non fund base proposals.2) Documentation of commercial/ seasonal finances.3) Safe custody of finances documents.4) Monthly / Weekly statements relevant.5) Mark up accruals and handling of stock reports.6) Supervision of advances.


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7) Any other duty assigned by the manager4-MANGER TELLER: MR. SYED HASHIM

1) Issuance of cash receipt / utility bills receipts.2) Cancellation of cheques.3) Supervision of cheques and daily checking of vouchers.4) Checking of daily transaction of CD / PLS/JRC computer sheets.5) Checking of daily run, diagnostics etc.6) Stop payments & weekly, monthly Balancing7) Transfer of Funds, deceased accounts/Unclaimed deposits and

statements of accounts.

8) Checking of dak / courier registers.9)Any other duty assigned by the manager.

5-CASH OFFICER: MR. ABDUL KAREEM KHAN.

1) Handling of cash payment/ receipts and Utility Bills.2) Sorting of cash.3) Preparation of Excess cash /SBP cash statements.4) Any other duty assigned by the manager.

7-Teller / CLG Remittance (Imputer): Mr.MAJID .

MR. SHAHID.

1) Punching of vouchers.2) Daily checking of Suspense Account and other GLs3) Customer records of new accounts.4) Clearing, remittances and cheque Return Register5) Any other duties assigned by the manager.


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8- R.B.O. MISS. SAHARA.

(B.S.O.) MISS. SUMERA.

1) Processing of loan Proposals2) Loan Recovery / Follow up etc.3) Introduce of new borrowers for loan financing4) Any other duty assigned by the manager.


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Financial Analysis of

HBL


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Earning Assets to Total Assets Ratio = Earning Assets/ Total Assets

Years 2007 2008 2009 2010 2011

Ratios 86.81% 86.30% 85.59% 85.86% 84.68%

Comments:

This ratio shows how well bank management puts banks assets to work. High

performance banks have a high ratio. The above graph presents the HBLs earning

assets to total asset ratio from 2007 to 2011. Ratio is slightly decreases in 2008, but

after it there is sharp decline in this ratio from 2009. Now in 2011 it is 84.68%, which

is not a bad figure. But in order to compete in today highly competitive environment

it is necessary for HBL that to enhance it performance by wisely puts its assets in

beneficial projects.

83.50%

84.00%

84.50%

85.00%

85.50%

86.00%

86.50%

87.00%

2007 2008 2009 2010 2011

Earning Asset to Total Asset Ratio

Ratio


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Interest Margin to Average Earning Assets Ratio= Interest Margin/ Average Earning Assets

Years 2007 2008 2009 2010 2011Ratios 9.29% 10.60% 11.42% 11.12% 10.22%.

Comments:

It is a key determinant of bank profitability, for it provides an indication of

managements ability to control the spread between interest income and interest

expense. The above graph presents the HBLs Interest Margin to Average Earning

Assets Ratio from 2007 to 2011. It increased between 2007 and 2009. Now in 2011, it

has decreased to 10.22%. It means profitability of HBL decline in 2011 in

comparison of 2009 and 2010. So it requires quick attention of management of HBL

to serious steps to enhance its profitability.

0.00%

2.00%

4.00%

6.00%

8.00%

10.00%

12.00%

2007 2008 2009 2010 2011

Interest Margin to Average Earning Assets Ratio

Ratio


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Loan Loss Converge Ratio= Pretax Income + Provision for loan losses /Net Charge- Off

Years 2007 2008 2009 2010 2011

Ratios 428.05

times

77.668

times

587.121

times

1121.297

times

Comments:

The loan loss converge ratio helps to determine the assets quality and level of

protection of loans. The above graph presents the HBLs Loan Loss Converge Ratio

from 2007 to 2011. This ratio decreased materially in 2008. But it gain increased

0

200

400

600

800

1000

1200

2007 2008 2009 2010 2011

Loan Loss Coverage Ratio

Ratio in times


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sharply in 2009. Now in 2011, it is at its peak figure in these five years. It means now

HBL manage to take less loss from loans and improve the eminence of its assets.

Equity Capital to Total Assets Ratio= Equity Capital / Total Assets

Years 2007 2008 2009 2010 2011

Ratios 7.51% 8.54% 8.63% 9.04% 8.78%

Comments:

This ratio is also called funds to total asset, measure the extent of equity ownership in

the bank. This ownership provides the cushion against the risk of using debt and

leverage. The above graph presents the HBLs Equity Capital to Total Assets Ratio

from 2007 to 2011. This ratio is increased in these five years piercingly. Now in

0.00%

1.00%

2.00%

3.00%

4.00%

5.00%

6.00%

7.00%

8.00%

9.00%

10.00%

2007 2008 2009 2010 2011

Equity Capital to Total AssetsRatio

Ratio


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2011, it is reduces to 8.78%, which appears not to be good for HBL as compared to

previous year.

Deposits Times Capital Ratio= Average Deposits/ Average Stockholders Equity

Years 2007 2008 2009 2010 2011

Ratios 10.389

times

9.178

times

9.12

times

8.83

times

9.32times

Comments:

8

8.5

9

9.5

10

10.5

11

2007 2008 2009 2010 2011

Deposits Times Capital Ratio

Ratio


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The ratio of deposit times capital concerns both depositors and stockholders. To

some extent, it is a type of debt/equity, indicating a banks debt position. More capital

implies a greater margin of safety, while a larger deposit gives a prospect of higher

return to stockholder, sine more money is available for investment purpose. The

above graph presents the HBLs Deposits Times Capital Ratio from 2007 to 2011. In

2007, it was at its peak value but after 2007, it decreased sharply. Now in 2011, it is

only 9.32 times, which is a good sign for HBL because it increases from previous

year. So HBL should use that techniques or strategies that help it to enhance its

capital.

Loan to Deposits Ratio= Averages Total Loans/ Average Deposits

Years 2007 2008 2009 2010 2011

Ratios 73.20% 74.97% 70.30% 65.47%

58.00%

60.00%

62.00%

64.00%

66.00%

68.00%

70.00%

72.00%

74.00%

76.00%

2007 2008 2009 2010 2011

Loan to Deposits Ratio

Loan to Deposits Ratio


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Comments:

It is a type of asset to liability ratio. Loans make up a large portion of the banks

assets, and its principal obligations are the deposit that can be withdrawn on request

but within time limitation. This is a type of debt coverage ratio, and it measures the

banks position with regard to taking risks. The above graph presents the HBLs Loan

to Deposits Ratio from 2007 to 2011. In 2008, it is at its peak value but after it

decreased. Now in 2011,

Equity to Deposit Ratio= Equity/ Total Deposit*100

Years 2007 2008 2009 2010 2011

Ratios 9.32% 11.44% 11.72% 12.44% 11.00%

Comments:

0.00%

2.00%

4.00%

6.00%

8.00%

10.00%

12.00%

14.00%

2007 2008 2009 2010 2011

Equity to Deposit Ratio

Ratio


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This ratio represents the shareholders equity and the total deposit of HBL from 2007

to 2011. As shown in above diagram it increases from 2007 to 2010 and from 9.32%

to 12.44% and then decreases to 11.00%. It is like equity to debt ratio. Because

deposits are our liability which is need to pay back to the account holders.

Net Profit Margin= Net profit after tax/Total Income*100

Years 2007 2008 2009 2010 2011

Ratios 29.34% 32.58% 24.38% 29.37% 24.55%

0.00%

5.00%

10.00%

15.00%

20.00%

25.00%

30.00%

35.00%

2007 2008 2009 2010 2011

Net Profit Margin

Ratio


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Comments:

A ratio of profitability calculated as net income divided by revenues, or net profits

divided by sales. It measures how much out of every dollar of sales a company

actually keeps in earnings. A higher profit margin indicates a more profitable

company that has better control over its costs compared to its competitors. The above

graph presents the HBLs net profit margin from 2007 to 2011 and it is 29.34% in

2007 and increase to 32.58% in 2008 and then again reduces to 24.38% in 2009 and

29.37% in 2010. Now it is 24.55% in 2011 which is not good sign for HBL.

Return on Equity= Net Profit/ Total Equity*100

Years 2007 2008 2009 2010 2011

0.00%

5.00%

10.00%

15.00%

20.00%

25.00%

30.00%

2007 2008 2009 2010 2011

Return on Equity


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Ratios 23.9% 24.17% 16.19% 21.01% 17.84%

Comments:

The amount of net income returned as a percentage of shareholders equity. Return on

equity measures a corporation's profitability by revealing how much profit a company

generates with the money shareholders have invested. It is a measure of profitability

of stockholders' investments. It shows net income as percentage of shareholder

equity. As it enhance from 2007 to 2008 then reduce in 2009 and 21.01% in 2010.

Now it is 17.84% in 2011 which shows the reduction of profit on equity which is not

a good sign.

Return on Assets= Net profit after tax/Total Assets*100

0.00%

0.50%

1.00%

1.50%

2.00%

2.50%

2007 2008 2009 2010 2011

Return on Assets

Ratio


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Years 2007 2008 2009 2010 2011

Ratios 1.82% 2.13% 1.45% 2.06% 1.55%

Comments:

This ratio indicates how profitable a company is relative to its total assets. The return

on assets (ROA) ratio illustrates how well management is employing the company's

total assets to make a profit. The higher the return, the more efficient management is

in utilizing its asset base. From 2007 it increases in 2008 and then it reduces to 1.45%

in 2009 it is good in 2010 after which it reduces to 1.55% in 2011 which shows that

return on asset reduces and management need to give proper attention on companys

asset.
http://www.investopedia.com/terms/r/returnonassets.asphttp://www.investopedia.com/terms/r/returnonassets.asphttp://www.investopedia.com/terms/r/returnonassets.asphttp://www.investopedia.com/terms/r/returnonassets.asp


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Deposits to total Liabilities = Deposits/Total Liabilities*100

Years 2007 2008 2009 2010 2011

Ratios 88.50% 85.50% 84.50% 87.45% 87.60%

Comments:

This ratio shows that at what percent deposits are held as compared to total liabilities

because major part of bank liabilities are of deposits which banks are need to be pay

back to the costumer at their demand. As shown in graph it reduces from 2007 to

2009 and then increases in 2010. Now it is 87.60% in 2011. And it is beneficial for

the bank when it is increasing one.

82.00%

83.00%

84.00%

85.00%

86.00%

87.00%

88.00%

89.00%

2007 2008 2009 2010 2011

Deposit to Total Liabilities


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Investment Over Total Assets = Investment /Total Assets * 100

Years 2007 2008 2009 2010 2011

Ratios 20.00% 17.00% 33.00% 21.00% 25.06%

Comments:

Total investment to total assets indicates the extent of deployment of assets in

investments as against advances. The higher level of investment indicates the lack of

credit off-take in the market. It is 20% in 2007 and it reduces to 17% in 2008 and

33% in 2009 it reduces to 21%. Now it is 25.06% in 2011.

0.00%

5.00%

10.00%

15.00%

20.00%

25.00%

30.00%

35.00%

2007 2008 2009 2010 2011

Investment Over Total Assets

Ratio


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Asset Turnover Ratio =Total Revenue / Total Assets

Years 2007 2008 2009 2010 2011

Ratios 6.21% 6.56% 5.97% 7.01% 6.38%

Comments:

The total asset turnover ratio measures the ability of a company to use its assets to

efficiently generate sales. This ratio considers all assets, current and fixed. The lower

the total asset turnover ratio (the lower the # Times), as compared to historical data

for the firm and industry data, the more sluggish the firm's sales. It is increases from

2007 to 2008 and then reduces in 2009 and greater in 2010 7.01%. Now it is 6.38%

which is not harmful but less than previous year.

5.40%

5.60%

5.80%

6.00%

6.20%

6.40%

6.60%

6.80%

7.00%

7.20%

2007 2008 2009 2010 2011

Asset Turnover Ratio

Ratio


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Debt Ratio=total Liabilities/Total Assets

Years 2007 2008 2009 2010 2011

Ratios 92.00% 91.00% 90.00% 90.86% 90.23%

Comments:

This ratio measure the proportion of total assets financed by the banks creditor. The

higher this ratio, the greater the amount of other peoples money being used to

generate profits. The higher this ratio, the greater the banks degree of indebtedness

and the more financial leverage it has. The above graph presents the HBLs Debt

Ratio from 2007 to 2011.it is at its peak value in 2007 but between 2007 and 2009, itdecreased. In 2010, it again increased but decreased in 2011. It is good for the bank

because b HBL has less debt than its asses and liabilities are also decreasing. It shows

that HBL is now paying its debt rapidly.

89.00%

89.50%

90.00%

90.50%

91.00%

91.50%

92.00%

92.50%

2007 2008 2009 2010 2011

Debt Ratio

Ratio


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Return on Deposit Ratio =( Net profit before tax/ Total Deposit)*100

Years 2007 2008 2009 2010 2011

Ratios 3.19% 4.10% 2.85% 3.69% 3.13%

Comments:

Return on deposit is basically calculated for the purpose of checking the increase in

profit 4.1% in 2008 but decreases in 2009 by 1.25% and reaches at 2.85% that is not a

good sign for management and again increased in 2010 which is 3.69% and

ultimately decrease in 2011 and reaches at 3.13%. it was lowest in 2009 and highest

in 2008 which was 4.1%.

0.00%

0.50%

1.00%

1.50%

2.00%

2.50%

3.00%

3.50%

4.00%

4.50%

2007 2008 2009 2010 2011

Return on Deposit Ratio

Ratio


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Advances to Assets Ratio =Total Advance / Total Assets

Years 2007 2008 2009 2010 2011

Ratios 59.91% 58.82% 55.22% 60.21% 52.64%

Comments:

This ratio shows the relationship between amounts of total advances to total assets.

There is a fluctuation in this ratio in the previous years it was lowest in 2011 which

was 52.64% and was highest in 2010 which was 60.21%. there was decreasing trend

till 2009 and then increased in 2010 and finally decrease in 2011 at 52.64%.

48.00%

50.00%

52.00%

54.00%

56.00%

58.00%

60.00%

62.00%

2007 2008 2009 2010 2011

Advances to Assets Ratio


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Earnings Per Share = Profit for the Year Attributed to Equity holders of Bank/ Weighted

Average no of Ordinary Shares

Years 2007 2008 2009 2010 2011

Ratios(Rs) 14.49 13.18 14.70 16.78 18.82

Comments:

The portion of a company's profit allocated to each outstanding share of common

stock. Earnings per share serve as an indicator of a company's profitability. The EPS

ratio should not be used in isolation without considering the capital required to

produce the earnings. It is not necessarily a good value investing indicator. The above

graph presents the HBLs EPS Ratio from 2007 to 2011. In 2007, it was Rs. 14.49 but

0

2

4

6

8

10

12

14

16

18

20

2007 2008 2009 2010 2011

Earning Per Share

Earning Per Share in Rupees


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after it decreased. It again increased in 2009,2010 and 2011. Now in 2011, it is

Rs.18.82. HBL should vigilantly work to take this figure up to a considerable point

where it should look satisfactory to the investors and share holders.

SWOT ANALYSIS

STRENGTHS:

Goodwill & historical background

Professional and well trained staff

Largest customer base

HBL is Pakistan's largest commercial bank

HBL has a domestic network of 1,425 branches with an international network of 48

branches in 26 countries

20% share of HBL in financial market

Large Balance sheet size

Decentralized authority

WEAKNESSES:

Unfavorable union activities and management conflicts

Checking System is at intra-department level

Weak marketing policies

Nepotism & Favorism

Infected portfolio still exists as bad debts

Centralized management in particular areas

OPPORTUNITIES:

Opportunities for growth and expansion in cash management.

Faster market growth represents opportunity to grow and diversify

Restoration of investors confidence and pick up in private sector investment flows.

Large deposit base and funds flow can help to avail related market opportunities


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THREATS:

Adverse & unstable government policies

Political instability

Advance technology

Competition from other banks

PEST ANALYSIS AND ENVIRONMENTAL SCANING

A broad view of market is important when management is interested in introducing

better services for customers. Rapid technological change, global competition and the

diversity of buyers preferences in many markets require the constant attention of the

market

vouchers to identify promises business opportunities, see the shifting requirements of the

buyers, evaluate changes in competitors positioning and guide the choice of which buyers

to

target and classify them according to respective segments.

Identification of external and macro factors that influence buyers and thus change the size

and composition of market overtime involves initially building customer profiles. These

influences include:

Political and legal environment

Economic trends

Socio cultural environment

Technological factors


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

It will be helpful in sharpening their abilities and developing their skills. Bank should emphasize on hiring of business graduates and computer

experts for the simex system.

ATMs should be installed in small cities as well. The political influence should be minimized on all type of the operations

of the bank.

Advance for non-productive investment should be stopped. The influence of employees union should be minimized. Implantation on the rules, regulations and policies should be done at all

cost.

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

Habib bank should focus in the services of their educational institutes The training should be proper time period Right person on right job should be placed Proper staff should be in the branches.


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http://www.hbl.com/

http://www.sbp.org.pk/

http://www.sbp.org.pk/f_links/index.asp

http://www.secp.gov.pk/index.asp

http://www.kse.com.pk/
http://www.hbl.com/http://www.hbl.com/http://www.sbp.org.pk/http://www.sbp.org.pk/http://www.sbp.org.pk/f_links/index.asphttp://www.sbp.org.pk/f_links/index.asphttp://www.secp.gov.pk/index.asphttp://www.secp.gov.pk/index.asphttp://www.kse.com.pk/http://www.kse.com.pk/http://www.kse.com.pk/http://www.secp.gov.pk/index.asphttp://www.sbp.org.pk/f_links/index.asphttp://www.sbp.org.pk/http://www.hbl.com/


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Internship Completion Certificate

Documents

Internship Report M.sc