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7/27/2019 Khalil Ullah - Report Final
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HBL 2010
Executive Summary
I have completed my 6 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.
After restructuring of the bank the objectives of the bank are changed. Now it has
objectives to overcome past mistakes, realize the real importance of customer so
now it has main objective to achieve customization.
A commercial bank has basic functions that are must be performed by them as a
bank i.e.
1. Accept money as deposits.
2. Investing deposits to earn profit.
3. Miscellaneous functions.
Each branch of the bank is divided on the basis of these functions into different
sections. Deposit section opens different accounts of clients and maintains record
of deposited money from the customer & credited it into his account. It also
maintains record of payment to the customer when he presents cheque. Advances
section deals the customers who demand loans against required security.
Remittance & collection section deals customers who want to transfer or collect
their money from/to other city. Bank also provides facility of L.C to support export
and import in the region.Flexi is the new product of Habib bank for the employees.
All branches are now interconnected with head office through internet.Total
numbers of branches are 1473 and number of employees are 16625.Bank shows
improvement after the privatization.
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Simex system is very good but misused by staff due not proper training.SWOT
analysis of Habib Bank shows that it has small number of strengths and lot of
weaknesses and threats. The bank should give attention to this drawback.But bank
has lot of opportunities to improve its quality of services, and do efficient banking.
Bank should give proper attention to overcome its threats.Banks profit has been
increased as compared to previous years.
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INTRODUCTION OF THE
ORGANIZATION
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COMPANY INTRODUCTION
COMPANY DESCRIPTION:
Habib Bank Limited is a Banking Company, which is engaged in
Commercial & Retail banking and related services domestically
and overseas.
WHAT IS BANKING COMPANY?
Section 5 of banking ordinance 1962 says that Banker means a person
transacting business of transacting the business of accepting, for the
purpose of lending or investment of deposits and withdrawals by Cheques,
drafts, orders of other wise and include any post office saving bank.
COMMERCIAL BANKING:
Commercial banks are profit seeking organization. They have been themost 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:
I. Accepting of deposits.
II. Advancing of loans.
III. Agency service.
IV. General utility service.
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ACCEPTING DEPOSITS:
The primary function of a bank is to receive surplus balances from
individuals, firms, public institutions and government etc and honor
Cheques drawn upon it. Three types of deposits are
Current or demand deposits
Saving deposits
Fixed or term deposits
ADVANCING OF LOANS:
The most important function is to provide loans to individuals, firms,
business concerns and government bodies against securities to meet
their financial needs at a fixed percentage of interest. these are some
kinds of loans: Loan to business
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
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Execution of standing orders
Acting as trustee or executer
Make transfer of funds
Act as an agent
GENERAL UTILITY SERVICES
Commercial bank performs general utility services as follows
Foreign exchange business
Act as referee
Accepting of bills for collection
Issuer of travelers Cheques
Supplier of trade information
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HISTORICAL PERSPECTIVE
History of the Company:
Habib Bank Limited was incorporated on 25th
August 1941 by ISMAILHABIB (LATE). Habib Bank inaugurated its operations with the banks first
branch in Bombay. It was the first Muslim bank of the sub continent. It was
established with a paid up capital of Rs.2500, 000. At an early stage the
number of branches was only 12.
In 1947 Karachi saw its first commercial bank of the newly formed Islamic
Republic of Pakistan, when the bank shifted its head office there. And
build the largest private sector bank that controlled an estimated 27% of
total bank deposits in the country and hand over 500 branches including
many overseas. Although primary functions were banking and finance, but
it moved to industry by the late 1950s 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.
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It was HBL that introduced products such as Credit Cards, ATMs, Travelers
Cheques, etc., to the Pakistani market. We at Habib Bank cater to the
needs of millions with our quality products & services.
Todays HABIB BANK:
Today Habib Bank is truly the bank of the people, providing its customersconvenience and satisfaction all over the world. Habib Bank Plaza, the
tallest building in Pakistan, is the proud symbol of HBLs
leadership in Pakistans corporate arena.
Today, HBL has more than 1473 branches all over Pakistan and presence
in 26 countries across five continents. With a revamped customer oriented
philosophy, we are pursuing new avenues of leadership through
innovation, as it gear up to face the challenges of the new millennium.
Operational Structure:
Habib Bank Limited is one of the largest commercial bank of Pakistan. It
accounts for a substantial share (20%) of the total commercial banking
market in Pakistan with a network of 1473 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.
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COMPANY INFORMATION
REGISTERED OFFICE:
Habib Bank LimitedHabib Bank Plaza1-1Chundrigar RoadKarachi - 75650Pakistan
HEAD OFFICE:
Habib Bank Plaza1-1Chundrigar RoadKarachi - 75650PakistanPhones: 2418000(50 lines)Fax: 2411647Telex: 20086-20751 HBANK-PK
AUDITORS:
TASEER HADI KHALID & Co.Chartered AccountantsSh. Sultan Trust Building No. 2Beaumont RoadKarachi 75530Pakistan
A.F. Ferguson & Co.Chartered AccountantsState Life building 1-C
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1.1 Chundrigar RoadKarachiPakistan
BOARD OF DIRECTORS
ZAKIR MEHMOOD PRESIDENT & CHIEF EXECUTIVE
SULTAN ALI ALLANA CHAIRMAIN
SAJID ZAHID DIRECTOR
AHMED JAWAD DIRECTOR
SIKANDAR MUSTAFA KHAN DIRECTOR
MUSHTAQ MALIK DIRECTOR
MOEZ JAMAL DIRECTOR
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MANAGEMENT
NAME DESIGNATION
Zakir Mehmood President & Chief Executive
Sohail Malik Chief Risk Officer
Jamail Iqbal Chief Compliance Officer
Global Compliance
Sima kamil Head Corporate and
Investment Banking
Ayaz Ahmad Chief Information &
Financial officer
Nauman K. Dar Head-International Banking
Abid Sattar Head-Retail & Consumer
Banking
Mudassir H. Khan Head-Global Operations
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Faizan Ali Mitha Global Treasurer
Salim Amlani Chief InternalAuditor
Aslam Gadit Head-Remedial Assets
Mirza Saleem Baig Head-Learning & Development
Tulu Islam GM-Business
Continuity Planning
Muhammad Aslam Head-Islamic Banking
Dr. Razi Azmat Head-Human Resources
Abdur Rashid Awan Business Head-Semi
Urban Areas
Aman Aziz Siddiqui RGM-GULF
(UAE, OMAN)
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MISSION, VISION STATMENT
AND
OBJECTIVES
MISSION STATMENT
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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 lieswith 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 STATEMENT OF HABIB BANK IS TO MAKE
Habib bank the dominate financial institution in Pakistan and a leading
bank of the Middle East and South Asia regions
Vision Statement
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Enabling people to advance with confidence and success Our vision is to
be the frontline financial institution of the country, with specific financial
markets to gain a competitive advantage with complete banking products.
Our focus is on improving performance in each of our businesses to
achieve consistent and superior returns for our highly valued clients and
stakeholders.
OBJECTIVES:
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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 beenchalked out.
To take necessary steps to plug the leakages of revenue and
expenses.
To insure internationally accepted accounting standard are followed
by the bank
To correct the structural flaws in the balance sheet
To put greater focus on neglected sectors to correct sectored
imbalances in the loan portfolio.
To achieve those objectives necessary steps have been taken by the
management loss making branches have been closed or merged.
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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 markets.
To increased the number ofON LINE branches
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HRM OBJECTIVES:
Toprovide 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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DEPARTMENTAL LEVEL STRATEGEIS
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1. Strategies of Marketing Department
More branded products should be launched in saving deposits and
consumer assets.
ATM network should further be increased to up the market share..
To establish sound relationship with top industrial groups and various
multinationals.
Customer should be given more importance.
To launch innovative product as which cater to the needs of different
segments of the markets?
To devolved country specific business revitalization strategies for
important franchise to improve overseas operations.
ONLINE branches should be increased more and more.
2. Strategies of HRM Department
To implement a performance appraisal process to provide motivation
and a merit oriented culture in the bank.
To provide extensive training to employees in process, products,marketing and selling skills introduced.
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Upgrading skills levels of staff.
ORGANIZATIONAL STRUCTURE
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ORGANIZATIONAL STRUCTURE
Ownership Structure
Shareholder Percentage (%)
State Bank of Pakistan 73.047
Islamic Republic of Pakistan 0.783
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
ORGOGRAME
PRESIDENT
SENIOR EXECUTIVE VICE - PRESIDENT
VICE- PRESIDENT
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VICE- PRESIDENT
ASSISSTANT VOICE PRESIDENT
OFFICER GRADE I
OFFICERR GRADE
OFFICER GRADE III
CLERCK
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VARIOUS DIVISION AND
DEAPARTMENTS
OF THE BANK
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DOMESTIC OPERATIONSFor 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 Headquaters
20 corporate centers
1473 branches
OVERSEAS OPERATIONS
For the facilitation of the overseas operations the bank has
55Branches
02 affiliations
01 Representative office
02 subsidiaries
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ACTIVITIES/DEPARTMENTS OF BANK
The main departments of a bank are as follow;
1. Deposit department
2. Accounts department
3. Advances department
4. Clearing department
5. Bills and remittances department
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1) Deposit DepartmentThe function of deposit department is to collect cash from the customers and to
deposit it into the accounts, maintained by them. Their classification is basedonduration and purpose for which the account is maintained. The following typs of
accounts are maintained for this purpose.
a) Current account
b) Saving account
c) Fixed account
A. Current accountA current account is a running account is a running account which is
countiniously 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 accountThis type of account is for those persons who want to make small savings. The
depositors are allowed to withdraw a limited amount of money for twice a
week.
The banks will keep a minimum account and the balance be safely utilized
forinvestment by the bank.
The bank pays interst on saving bank accounts according to the prescribed rates
by the centeral bank of the country.
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C. PLS saving accountIn pakistan (PLS) saving account was introduced in January ,1982.The bank has full right to investment of credit balances /deposits in the PLS
saving account The statments of accounts willbe supplied on periodical
intervals.
The following informations are required to be furnished1. Name
2. occupation and full address
3. Specimen signature
4. Introductory refrences
5. Declaration that he will follow them
D. Fixed or time deposit
Fixed or time deposit are the major source of funds of a commercial bank.
The rate of interest on fixed deposits is higher them that of saving deposits
and it varies with time to time. The longer the period for which the amount is
kept higher is rate of interest. The fixed deposit receipt (FDR) is marked as
not negotiated. The holder of time deposit account cannot issue cheque for
the withdrawl of the amount.
E. Joint account
A joint account is a special bank account which is opened in thename 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 theessentials.
List of the office bearers.
List of authorizedsignatures.
Copy of memorandum or by
laws.
Copy of registration.
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In case of joint stock
companies.
Certificate of incorporation.
Certificate of
commencement of
business.
Beside NIC copies.
2. 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..
a.Cashier module (online branch)
b.Paying cash book
Cashier module (Online Branch):
When cash is received at the counter it is recorded in the
computer.
Journal Report Of Cashier (JRC)
All receipt and payment report of cashier.
Paying cash book:
The cashier makes entry in the paying cash book when cash is paid 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
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3. Accounts Department
There are two ways of maintaining an accounts
Journal System
Under this system entries are journalized in journal book and then
posted in ledger account. Their entries are maintained in journals.
Voucher system
In voucher system for each transaction voucher is prepared, either in
cash or in transfer or in clearing all vouchers are summarized to the
one consolidated figure and are recorded in cash cum- daybook
sheet upon which vouchers are summarized according to the
transition wise suit is called supplementary.
These are of 2 types.
Debit supplementary
Credit supplementary
Debit supplementary is for debit vouchers and it is of red color
Credit supplementary is for credit vouchers and it is of green color.
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It is not safe for private individual to keep their surplus money at home.
They can keep their money in safe custody by opening accounts in a
bank. They can open deposit accounts for fixed period. The deposit
account also earns interest for the depositors. Again the businessman
conducts transaction is for thousands of rupees daily. It is unsafe to keep
so much cash in hand for carrying on business transactions. They may put
their money with some banks by opening deposit accounts. Now they can
draw cheques for settlement of transactions without involving cash.
Procedure of Opening of an Account:
There are certain formalities which are to be observed for opening of a
current account or saving a/c. With a bank, these formalities are as;
1) Request of opening of an account.
2) Obtaining introduction
3) Specimen signatures
4) Minimum initial deposit
5) Operating the account / cheque book
1) Request of opening of an account.
The customer has to fill an account opening form. It is a formal request by
a customer to the bank to allow him to have and operate the current or
saving account.
2) Obtaining introduction.
The bank before opening an account obtains introduction of the customers
from an old customer, responsible person etc.
3) Specimen signatures.
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When the banker satisfied about the informations 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 customers
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
banks acknowledgment for receipt of money to be credited his
account.
Cheques book.
A cheque book contains a number of cheques which is given to acustomer upon written request and after making payment for the
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cheque book. It enables to a customer to make withdrawals from his
account.
Pass book.
Is a copy of customers account as it appears in the books of the bank.
Pass book is a book in which the banker maintain the record of its
customers account for later use. This 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.
4. Advances Department
The function of advances department is to lend money in the form of
clean advances. Against promissory notes, as well as secured
advances against tangible and marketable securities. The bankers prefer
the securities which are free of risk of depreciation.
Deposits lead to advances and advances create deposits. Advances to a
variety of customers are the sure method of enhancing income and
promoting expansion of a bank.
Types of advances:
The main types of advances are as follow.
1). Overdraft.
2). Cash credit.3). Loans.
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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 than his personal
security. Against ien on third party account. Against immovable
property, equitable mortgage collateral.
C.Cash finance.
Cash finance may be allowed within discretionary powers of the
branch managers to first class parties keeping in view their
credit worthiness, overall business and average balance
maintained in their account.
2) Cash Credit
A cash credit is an arrangement by which a banker allows a customer
to borrow money up to certain extent cash credits are usually made
against securities of commodities hypothecated or pledged with the
bank.
Pledge:
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Pledge is a contract whereby a good is deposited with the lender as security
for repayment of the loan. The delivery of documents of title relating to
goods also create a valid pledge. The person delivering the goods as security
is called pledger. The person to whome the goods is delivered is called the
pledgee.
Hypothecation:It is a legal transaction where by goods may be made available as security
for a debt without transfering property or the possession to the lender.
Advances granted under hypothecation are not secure from safety point of
view. The bank should make sure that the party has a good reputation, which
property regularly.
3)Loans
Banks may make advances to its customers which may be payable in
lump sum or in installments. Loans may be.
A) Clean Loans
This is granted to borrowers without obtaining any security.
Example flexi loan
B) Secured loans.
Loans for 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 byother assets.
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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 theworking capital and the temporary financing of capital
expenditure these loans are obtained by manufacturing
concerns to meet the financing of working capital expenditure.
D) Flexi loan
A special scheme of Habib bank limited for the employee of
govt. and semi govt. institute. This is a clean loan no anysecurity has been taken from the employees of the organization.
Just salary of the employee is transferred in the account of the
client
Basic requirements for the flexi loan
He must be employee of listed organization
He must be account holder of the bank
His salary is transferred in his account
His job at least one year
His retirement period is grater then the period of loan
Document required for flexi loan
Letter from employer
His last month salary slip
His account statement
60 post dated cheques
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Promissory notes
Rate of mark up on flexi loan
The rate of mark up is 25%(fresh case)
Other 20% to 21
5. Clearing Department
Clearing house is the place where representative, of all banks get
together for the purpose of offsetting the interbank indebtedness arising
from the transfer of deposit by a customer of a particular bank to another
bank
Clearing settlement is made by debiting or crediting the bankers
accounts, the daily difference in the clearing between banks may
considerable and much differences are adjusted by mean of debit and
credit entries in the respective accounts with is SBP, by book entries.
Functions of clearing Department:
The following are the main function of clearing department
1) To accept transfer delivery and clearing cheques from customer of thebank and to arrange for their collection.
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2) To arrange the payment of cheque drawn on branch and given forcollection to any other branch of HBL or any other member or sub member
of the local clearing house.
3) To collect amount of cheque drawn on members, sub members of the localclearing house, sent for collection by thouse HBL branches which are not
represented at the local clearing house.
Procedure of Clearing at Clearing House:
The mechanism of offsetting inters bank indebtedness operators as
follows; Clerk representing various banks met at a common plane, the
clearing every day. Every clerk then delivers to the others the cheques
and other claims which his bank holds against them. So he also receives
from the others the claims which their respective banks hold against his
bank. Cheques and other documents dishonored will be returned to the
representative of the respective bank. The various amounts of receipts
and deliveries are now added up an balance is struck therein and the final
settlement is effected by the supervisor of the clearing house by
transferring balances kept at the central bank the these various clearing
banks.
6. 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)
Procedure of clearing at clearing house
A. Outward bill for collection
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1. Clean Bills
These are negotiable instruments drawn on out station branches of
the bank, sent for collection on behalf of the customers 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.
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The Main Documents Invited in Bills and Remittances
Department:
1. Demand draft2. 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.
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.
2. Pay order
pay order is just like a cash. If someone want to make payment to some other
person he can make payment through pay order slip. The main advantage of pay
order is that it can not be dishonour by the bank when payment is required to
made within the city then we can take this bank service and when we want to make
payment outside the city then we use demand draft in case of cheque there is a
possibility that it can be dishonour by the bank but it case of pay order we have
surity that it can never be dishonour.
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MISCELLINEAOUS FUNTIONS 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
No charges from the customer maintaining freedom account
accounts otherwise charges will be recovered according to the
schedule
The charges of online made to the individual are Rs.350 and to
the any educational institution are Rs.50 only.
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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 bankertakes 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. 2900 per annum or nil on refundable key.
Medium size Rs. 3900 per annum or nil on refundable key.
Large size Rs. 2,500per annum or nil refundable keys.
Breaking charges Rs. 2,000 per locker plus actual charges of
supplier.
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Internet Banking
Habib bank Limited has offered on line banking which is an innovative and
truly global product to its customer. Thus enables them to check theirbalance, view their account ststmant, can transfer their fund.
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 transition are 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
Speacmain 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 to 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
ATMS 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
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these other banks, Rs. 15 per transition are deducted from his account as
ATM charges.
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 bethe account holder of the bank.
Documents Required for Credit Card
Application form of credit card.
Photocopy of national identity card.
Passport size photograph.
Salary certificates.
Last six month income certificate.
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RATIO ANALYSIS
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1. ADVANCES TO DEPOSITS RATIO
ACCOUNTS
2005 2006 2007 2008 2009
ADVANCES
316881635
349432685
382172734
456355507
454662499
DEOSIT 432545165
459140198
531298127
597090545
682750079
Ratio(%)
73.25 76.10 71.93 76.42 66.59
GRAPHICAL EXPALINATION
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INTERPRETATION:
This ratio shows the relationship between total deposits and the advances
by the bank. It shows advances of the bank as compare to the deposits.
This ratio is very high in 2006 and 2008 i.e. 76.1% and 76.4%, so we can
say that in these particular years the bank position is sounder. It means
the bank is giving more and more advances in these years. This showsthat advances are increasing than deposits which, is good for bank. We
can see that this ratio is very low in year 2009.The bank is not able to
utilize the increase in deposits due to which the ratio has fall.
2. CASH TO DEPOSIT RATIO
ACCOUNTS
2005 2006 2007 2008 2009
CASH 64864562 82275526 82508368 95840455
120206523
DEOSIT 432545165
459140198
531298127
597090545
682750079
Ratio
(%)
14.99 17.92 15.52 16.05 16.60
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GRAPHICAL EXPALINATION
INTERPRETATION:
This ratio shows the relationship between the cash and the total deposits
of the bank. It shows the fluctuations. It has increased in year 2006, but
decreased in year 2007. The decreased in this ratio is a good sign
because it shows that bank is utilizing its deposits in better way by
investing them in securities and by advancing to the customers.
3. EQUITY TO DEPOSIT RATIO
ACCOUNTES
2005 2006 2007 2008 2009
EQUITY 32031197
45177664 55063125 71280902 75133715
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DEPOSITS 432545165
459140198
531298127 597090545
682750079
RATIOS% 7.40 9.83 10.4 11.93 11
GRAHICAL EXPLAINATION
INTERPRETATION:
This ratio is increasing from year 2005 to 2008. This ratio shows the
relationship between the total equity and the total deposits of the
customers. This ratio has been increasing in all coming year. It means that
its equity is more than its deposits. The bank is focusing on equity rather
than utilizing its deposits in risky assets.
4. DEPOSIT TO TOTAL LIABILITY RATIO
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ACCOUNTS
2005 2006 2007 2008 2009
DEOSIT 432545165
459140198
531298127
597090545
682750079
LIABILITIES
488406055
536848102
628754092
682747953
779408823
Ratios % 88.5 85.6 84.5 87.45 87.6
GRAHICAL EXPLAINATION
INTERPRETATION:
Every reputed bank tries their best to capture more and more deposits.
And in order to facilitate its further they offer different schemes to
customers. As a result of greater deposits Bank can be in the position to
advance more and more which is the major source of income. This ratio is
very high in the year 2005 and it shows decreasing trend in 2006 and
2007 and it is very low in 2007. In 2008 due to more stable government
and opening of new branches, the deposits are increasing at a greater
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rate which is a good sign for the overall performance of the bank and also
increased in year 2009.
5. EQUITY TO ASSET RATIO
ACCOUNTES
2005 2006 2007 2008 2009
EQUITY 32031197
45177664
55063125
71280902
75133715
ASSEST 508329619
559565687
643026585
724959955
806792668
RATIO % 6.3 8.07 8.6 9.8 9.31
GRAHICAL EXPLAINATION
INTERPRETATION:
This ratio shows the relationship between the equity and the total assets.
It is highest in the year of 2008 and lowest in the year 2005. If we see it
overall this ratios shows increasing trend, which means that the Companyworth is very sound and therefore the price of its share in the market
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increasing. In 2007 due to changing political situation, and different
military operations in the country shakes this ratio in 2007 but this ratios
again shows stability in 2008.
6. ADVANCES TO ASSET RATIO
Accounts
2005 2006 2007 2008 2009
LOANS 329153883
355982813
383800864
462549294
460015372
ASSET 528893905
590291468
691991521
757928389
863778621
RATIO%
62.2 60.3 55.5 61.02 53.25
GRAHICAL EXPLAINATION
INTERPRETATION:
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This ratio shows the relationship between the amounts of total advances
to total assets. There was decreasing trend till year 2007 and then
increased in 2008. This ratio shows continuously shows up and down
trend throughout the last five years. This ratio was very low in 2007 but it
starting to show increasing trend 2008. There is again fall in this ratio in
the year 2009.
7. RETURN ON EQUITY RATI
ACCOUNTES
2005 2006 2007 2008 2009
NETPROFIT
9563303 12700315
10084037
15614020
13400749
EQUITY 32877998
45177664
55063125
71280902
75133715
RATIO% 29.1 28.11 18.31 21.90 17.83
GRAHICAL EXPLAINATION
INTERPRETATION:
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Comparison of total profit of the bank with the total equity of the
shareholders this is known as Return on Equity. ROE measures overall
efficiency of a company in managing its total investment in assets and
return to its shareholders. It is primary measure of how well management
is running the company. From the year 2005 to 2007 it decreases which
means profit of the HBL falls as compared to previous years. The reason
behind the decrease in 2007 was highly uncertain political situation and
decreasing economical situation of the country. This ratio again increases
in 2008 due to stability of economical and political factors, which is a good
indication for the bank. But it again decreased in year 2009 due to
economic problems. Ratio indicates us that how much cash is created
from the existing assets.
8. EARNING PER SHARE
YEARS 2005 2006 2007 2008 2009AMOUNT 13.86 18.30 14.49 20.47 14.70
GRAHICAL EXPLAINATION
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INTERPRETATION:
Earnings per share are the amount of income earned on a share of
common stock during accounting periods. Earnings per share receive
much attention from the financial community, investors and potential
investors. It is not increasing continuously. It is a very good sign in
this way that company can meet its operational expenses easily and
can also earn an attractive income. It is highest in year 2008 i.e.
20.47 as in this year profit is more than the preceding years as
compared to keeping 2005 as a base year. More the bank will earn on
its shares more will be the profitability.
9. RETURN ON ASSET RATIO
Accounts
2005 2006 2007 2008 2009
AFTERTAX
9646549 12700315 10084037 15614020 13400749
ASSET 528893905
590291468
691991521
757928389
863778621
RATIO
%
1.82 2.15 1.46 2.06 1.56
GRAHICAL EXPLAINATION
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INTERPRETATION:
Return on assets which is usually called return on investment (ROI).It
measures the overall effectiveness of management in generating profit
with its available assets. The higher return on total assets is considered
best.
This ratio shows the relationship between the total assets and the net
profit. From the year 2005 to 2006 this ratio is increasing for the HBL and
the increase is very fast. It means that increase in its total income is much
more as compared to increase in its total assets. But in 2007 this ratio
decreases, it means in this year assets are increased more rapidly as
compared to total income. In the year 2008 this ratio again shows
increasing trend which means total income is increased as compared to
assets in 2007. In year 2009 it again falls as shown in above table 1.56.
10. RETURN ON DEPOSITS RATIO
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GRAHICAL EXPLAINATION
INTERPRETATION:
This ratio shows the profit of bank against the deposits .This ratio shows
that how well a bank utilizes the deposits to create profits .This ratio is
good in 2006 but very low in year 2009 as above table mentions. The ratio
of 2009 year is not a good sign for the bank. This ratio is decreased due to
economic problems in the country such as the high rate of inflation. We
also cannot ignore the law and order situation in country.
11. INVESTMENT TO ASSET RATIO
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ACCOUNTES
2005 2006 2007 2008 2009
PROFIT 13833975 1884048
7
1514461
7
2203437
9
1340074
9DEPOSITS 43254516
5459140198
531298127
597090545
682750079
RATIOS% 3.19 4.10 2.85 3.69 1.96
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Accounts 2005 2006 2007 2008 2009
INVESTMENT
107384470
119587476
177942251
138145692
216467532
ASSET 528893905
590291468
691991521
757928389
863778621
RATIO % 20.30 20.25 25.71 18.22 25
GRAHICAL EXPLAINATION
INTERPRETATION:
The investment against the total assets, we find that it is very high in
2007 and 2009. This shows very good sign for the bank but after a period
of time it shows decreasing trend very rapidly according to ratio in 2005,
2006 and 2008. It means that management is paying attention towards
Government securities. This is not a good trend it shows the deficiency of
management. In 2007 this ratios increases because the management is
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reluctant to invest in government securities due to unstable political
condition. But this ratio again falls in 2008.
12. DEBIT RATIO
Accounts 2005 2006 2007 2008 2009
LIABILITIES
488406055
536848102
628754092
682747953
779408823
ASSETS 528893905
590291468
691991521
757928389
863778621
RATIO % 92.34 91 90.8 90 90.23
GRAHICAL EXPLAINATION
INTERPRETATION:
Debt ratio measure the proportion of total assets financed by creditors
.The higher the ratio the greater the amount of others money used in an
attempt to generate profit. This ratio indicates the decreasing trend from2005 to 2008 ant it is very low in the year 2008 but this ratio again shows
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increasing trend in the year 2009.The 2009 ratio show that bank has
financed 90.23% of its assets . It increased and then decreased this shows
that its borrowing decreased which is a good sign.
13. NET PROFIT RATIO
Accounts 2005 2006 2007 2008 2009NET
PROFIT
9646549 12700315 10084037 15614020 1340074
9NET SALES 21994655 27677631 23227773 27592073 33580875RATIO % 43.85 45.9 43.41 56.58 39.90
GRAHICAL EXPLAINATION
INTERPRETATION:
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This is the ratio of net profits to net sales. This is used to measure overall
profitability of the firm. This shows mixed trend over the years. This ratio
is high in year 2008 which is 56.58%.
14. OPERATING PROFIT RATIO
GRAHICAL EXPLAINATION
INTERPRETATION:
Department of Management Sciences - IUB 66
ACCOUNTES
2005 2006 2007 2008 2009
EBIT 13833975 18840487 15144617 22034379 21381636NET SALES 21994655 27677631 23227773 27592073 33580875RATIOS% 62.9 68.07 65.20 79.85 63.67
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This ratio expresses relationship between the operating profit and net
sales. It reflects the efficiency with which a firm produces it products.
Higher the ratio better it is. The ratio is very high in year 2008 which is79.85% but it is low in 2009. So HBL management needs to look at this
decrease.
SWOT ANALYSIS
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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 cheques 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.
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The organization uses a differentiated marketing strategy with a
different marketing mix for each segment.
Keeping in view the need of time the bank has automated its
operations like providing ATM services
Bank has launched his credit card.
Bank charges are lees then other banks
WEAKNESSES
A few branches are on line and have a universal access account.
Few ATM are available for the customer of the bank.
Rate offered on PLS are very lees as compared to the other banks
No specialist person is for the simex in the branches.
Employees are less in the branches while regional offices are over
staff .
The pays of the employees are comparatively less and there are no
clear criteria for the promotion
Rate of mark up charged from customer are high as compared to
other banks.
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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.
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THREATS
Almost of the foreign banks that operations in the bigger cities only
and are concentrating on individuals of higher income and blue
chips companies they are taking away the mark from bank.
As most of the loans are stuck up there are fewer tendencies to
more loans thus giving a low loan
Products and services introduced by HBL in the past have been
copied and followed by other commercial banks.
The bank has to deal with increasingly thought competitions in
domestic market from Nationalized foreign and private sector
banks.
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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.
Consolidation in the banking sector resulting in increase
competition.
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SUGGESTIONS &
RECOMENMENDATIONS
SUGGESTIONS & RECOMMENDATIONS
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
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ATMs should be installed in small cities as well.
Operating expenses of the bank should be brought down to increase
profitability.
The political influence should be minimized on all type of the
operations of the bank.
Advance for non-productive investment should be stopped.
The influence of employees union should be minimized.
Implantation on the rules, regulations and policies should be done at
all cost.
The customer satisfaction should be guaranteed through rapid
delivery of financial products and services
Habib bank should focus in the services of their educational
institutes
Staff should be provided with professional training in marketing,
selling, and finance in order to sharpen their abilities and developing
skills.
Right person on right job should be placed.
Proper staff should be in the branches.
All the branches of the bank are not equipped with the on line
facilities and other facilities like ATM, so work should be done to
standardized all the branches at equal level to attract more
customers
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A network of foreign branches should be established to compete the
competitors and to save the huge charges being to the
corresponding banks
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CONCLUSION
CONCLUSION
HBL has constantly ensured that its customers find congruence in all its
offerings, which are further proof of the fact that HBL is truly a modern
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bank catering to every financial need as and when required. The bank s
long journey through time along with the people of Pakistan, with them
every step of the way catering to their every financial requirement has
given it status to become a world class brand.
Habib Bank Limited was incorporated on 25th August 1941 by ISMAIL
HABIB (LATE). Habib Bank inaugurated its operations with the banks 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.
Habib Bank Limited is a Pakistan-based bank. The Bank is engaged in
commercial banking, modaraba management and asset management
related services in Pakistan and overseas. During the year ended
December 31, 2009, the Bank operated 1,454 branches in Pakistan and 40
overseas branches. The segments of the Bank include retail banking,
which consists of retail lending, deposits and banking services to private
individuals and small businesses; corporate/commercial banking, which
consists of corporate and commercial customers and investment banking,includes advices and placements to corporate mergers and acquisitions,
underwriting, privatizations and securitization; treasury, which involves
the businesses of trading, fixed income, equity and foreign exchanges,
and international banking group, which consists of the bank's operations
at 24 countries. The geographical segments of the Bank include Pakistan,
Asia Pacific, Europe, North America, Middle East and others
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 HBLs leadership in
Pakistans corporate arena.
Habib Bank Ltd operated under state ownership between 1974-2004. After
privatization in 2004, 51 percent of the Banks shares were purchased by
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the Aga Khan Fund for Economic Development, an agency of the Aga
Khan Development Network.
The president of HBL is assisted by ten Senior Executive Vice-Presidents
and a staff of 29 Executive Vice Presidents, 154 Senior Vice Presidents,
420 Vice Presidents, 831 Assistant Vice Presidents, 2350 officers Grade-I,
4108 officers Grade-II, 3364 officers Grade-III and 10658 Clerical/Non-
Clerical employees.
I have completed my internship in HABIB BANK LIMITED in Bahawalpur.
Today, HBL has more than 1469 branches all over Pakistan and presence
in 26 countries across five continents. With a revamped customer oriented
philosophy, it is pursuing new avenues of leadership through innovation,
as it gear up to face the challenges of the new millennium. It has over 5
million customers. It has strong brand recognition due to historical
presence, vast branch network and services offered. HBL has the biggest
advances portfolio in Pakistan, catering to all sectors of the economy and
all market segments i.e. corporate, consumer, SME, Agriculture and retail.
Following are the different departments of Habib Bank Limited
Advances Department Clearing Department Deposit Department Remittance Department Cash Department
The function of advance department is to lend money in the form of
consumer financing i.e. flexi loans & credit cards. Agriculture finance, cash
finance, running finance. Fixed asset finance, letter of credit & letter of
guarantee are also included in it. . HBL is earning by giving advances
mostly in the form of flexi loans because middle income level consumers
can also avail this facility.
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In clearing department bank exchanges Cheque and other negotiable
instruments drawn on each other within specified area and securing the
payments for their clients through the clearinghouse. The Cheque and
other negotiable instruments are sent to the Clearing Department /
Collection Cell located at the Main Branch.
The function of deposit department is to collect cash from customers and to
deposit it into the accounts, maintained by them. Also different types of accounts
for new customers are opened here.
The main function of bills and remittances department is to deal mainly in
Outwards bills for collection (OBC) and Inward bills for collection (IBC).
Remittance is a process to transfer money or send money through
different procedures and ways. Through this bank earns a lot of income in
form of service charges
The function of cash department is receipt and payment of cash. Utility bills are
also paid in cash department. As we worked in university branch of HBL so
prospectus of university is also available in university branch.
Habib bank has introduced ATM (automated teller machine) in Pakistan for its
customer. Through Atms not only people can withdraw cash but also can avail the
following.
Funds Transfer Mobile bill payment Utility bill payment Generate Mini Statement
To use ATM, ATM card is being made by bank. It is also known as HBL
debit card. HBL Visa Debit Card allows you to pay for your purchases
directly from your bank account.
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HBL provides the service of Internet Banking through which we can avail the
facilities such as Account information, Funds transfer View statements, Mobile
prepaid cards, Utility bill payment, Cheque Book request.
HBL provides also you the service of Phone Banking through which you can avail
the facilities of Request for Banker's Cheque, Account Statement, and Cheque Book
HBL Credit Card bill payment, Funds Transfer Balance Inquiry, Mobile prepaid cards
etc.
When I did the financial analysis I concluded that HBLs return on assets
had increasing trend in 1st three years and then decreasing and then
again increasing. Increasing trend shows that assets have been properly
utilized to generate net income and decreasing trend shows that assets
have not been properly utilized. Return on equity had very little change in
1st three years. But in 2007 it decreased means net profit was decreasing.
Then it again increased in 2008. In advances to deposit ratio there was
increasing trend in 1st three years which shows that bank had increased
its advances. In 2007 it decreases but it again increased in 2008. This
shows that advances are increasing than deposits which are good forbank.. Equity to asset ratio had shown an increasing trend from 2004 to
2006 which means that shareholders equity had increased. In 2007 it is
showing decreasing trend. But again in 2008 it is increasing means
increase in shareholders equity which is showing good position of
company. Deposit to liability ratio had shown good position in 2004 which
means that bank had maintained sufficient deposits. But from 2005 to
2007 there was much decreasing trend. . In 2008 it had increased dueopening of new branches and introducing new & different schemes that
benefit the customer. The deposits are increasing which show the good
performance of bank. Equity to deposit ratio had shown increasing trend
from year 2004 to 2006 means equity has been increased as compared to
deposits. In decreased in 2007 but again increased in 2008. Advances to
assets ratio was increased in 2005 means bank had given more advances.
In next three years there was little decreasing and than increasing trend.EPS increased continuously from 2004 to 2008 which is a very good sign
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for bank. In this way firm can meet its expenses. More the bank will earn
on its shares more will be the profitability. Reserves as percentage of loan
had increased in 2006 which means that which means that in 2006 bank
had maintained reserves 5 % of loans to deal with contingencies. But in
2007 this ratio again falls. In 2008 we can see the positive trend in this
ratio means that reserves are again increasing. In SWOT analysis I
concluded that HBL has strong recognition in domestic and foreign market
it has largest net-work mode and customer base in Pakistan with 1469
branches in Pakistan and 71 branches in 21 countries. HBL provides a
complete range of banking products and services including flexi loans, car
finance, home finance, finance, consumer finance, credit cards and lease
finance, credit cards, debit card, online banking and phone banking. All
these things are showing its strength. But its Employees are not satisfied
because the pays of employees are less and there is no clear criterion for
promotion. Also there is shortage of trained and specialized staff. There
are old employees having lack of information technology and cannot use
latest banking software. There is no specialist person who can train
employees in IT. These things are showing weakness. HBL has alsoopportunities i.e. due to privatization management can make its own
decision for the benefit of firm. Products and services can be enhanced for
customers .By increasing technical and professional staff, progress of firm
can be increased. There are also threats to HBL. Different Schemes
launched by other banks have increased competition is increased for HBL.
Employees are leaving because of low salaries and no promotions. As
there are low barriers to entry competition is increasing not domesticallybut also globally. HABIB bank was first Muslim bank to be established in
Pakistan in December 1947 and serving towards the financial and
economic progress of country. HBL is on of the largest and prominent of
bank s of Pakistan.
HBL is providing its customers with value, quality and distinctive level of
services and high ethical standards in all dealings with them. But there isalways need of improvement and need of to identify new ways.
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HBL has constantly ensured that its customers find congruence in all it
offerings, which are further proof of the fact that HBL is truly a modern
bank catering to every financial need as and when required. The banks
long journey through time along with the people of Pakistan, with them
every step of the way, catering to their every financial requirement has
given it status to become a world class brand.
HBL has created a challenging environment that encourages creativity and
commitment. In is focusing on attracting, developing and retaining the best talent
in the marketplace. Its dynamic culture offers diverse growth opportunities across
Pakistan and in 25 countries around the world. HBL fosters a work environment
where employees can realize their potential whether locally or in the international
arena. HBL with its professional management is in the process of turning around
the bank. Its products and services such as debit card, credit card, online banking
and phone banking have resulted a strong potential for turn around and value
creation.
WORK DONE BY ME DURING INTERNSHIPI have worked as an internee in the Habib Bank limited Branch Model town A for
Six weeks. During my internship I learned a lot about the banking work. The
branch was quite small workcomparatively with others but it had all departments.
I tried my best level to gain from this internship experience.On first day I reported to the branch manager operation 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.
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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 alot of burden of work in this department. In this department the following
major activities were;
a) Account opening.
b) IBDAs 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 andcurrent account procedure of opening of account is the same except the
initial deposit.
The account opening form contains the following informations.
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.
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Currency (in which want to operate).
Particular of deposits. (Period for operation).
Complete address.
Telephone number.
Nature of business etc.
Detail of other accounts.
Zakat deduction.
Personal information.
Name.
Date of birth. Nationality etc.
Then signatures of the account holders and the bankers and
manager.
Signature of the introducer, his account number and address.
When this form is filled then signature of the person who want to
open the account are to be taken on the specimen signature card.
Then it is recorded in the PC. Then after a week letter of thanks
when received by the person then a cheques book is issued to him.
Now he can withdraw the amount by fulfilling cheques up to the
extent of his balance, in the account.
In that account opening I also write the letter to the customer.
There are two letter are written while opening the account
1. New customer
2. Introducer of new customer
These are printed letter on which just write the name of person and his
addresser written in the form.
Preparation of Cheque Book:
I issued cheque books in the account opening department. The cheque
books is issued after opening of the account. The Account No. is stamped
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by the rubber stamp on each cheque. Then it is given to the person.But
now computerized cheque books are issued to the customers.
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.
Prepration of IBDA:
I prepared in this department IBDA Inter Branch Debit Advice. If for one
branch it is IBDA transition then it is for branch is IBCO. (Inter branch
credit advice).
IBDA Transition:
For example transaction between satellite town Branch and Model Town
Branch is as follow.
If the customer of satellite town branch withdraw money from Model Town
branch.(use) this branch will debit the account of satellite town branch
with IBDA. Davis road branch will receive the slips that the person has
used the ATM machine there. When money is withdrawn then Habib Bank
satellite town branch will credit the Model Town branch. After transfer of
cash from branch the account will be settled.
Cash Department:
I spent one week in the cash department here I issued token to the
customers and then recorded it into the token book. The procedure of
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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 availablein our branch are:
1-FLAXI LOAN
2-CONSUMER FINANCE
These are the main types of loan which is future categorized in differentways.
I check there the procedure of different loans
Documents required
Capacity of the party
Purpose of loan
I also observed the 5cs of loan while gave the to the party
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ANNEXURE