Presentation on:

Introduction and History

Founded in 25 August 1941 in BombayEstablished by Habib familyCapital 25000rupessQuaid-E-Azam was 1st account holderHead quarter move Karachi after born of Pakistan

Habib bank plaza located in Karachi. It is the head office of habib bank.

Branches of HBL

It has more then 1700 branches at domestic level55 branches in 26 different countries U.K , U.S.A, Hong Kong etcLargest banking sector of Pakistan

Nationalization & Privatization

HBL was Nationalized in 1974 and it continue to Dominate the Commercial banking sector.On February 26, 2004, Management control was handed over to Agha Khan Fund for Economic development.

Vision, Mission and Values

VISION

Enabling people to advance with confidence and success

MISSION

To make our Investor(s) prosper, our staff excel and to create value for our stakeholders.

VALUES

Our values are based upon the fundamental principles that define our culture and are brought to life in our attitude and behaviour. It is our values that make us unique and stem from five basic principles.

BOARD OF DIRECTORS

SULTAN ALI ALLANA

(Chairman)

AHMAD JAWAD

(Director)

MUSTAFA MALIK

(Director)

SAJID ZAHID

(Director)

BOARD OF DIRECTORS

MOEZ JAMAL

(Director)

SIKANDAR MUSTAFA

(Director)

R.ZAKIR MAHMOOD

(President & CEO)

Management

1.R. ZAKIR MAHMOODPresident & CEO 2.SIMA KAMILHead-retail & consumer banking3.AYAZ AHMEDChief financial officer4.JAMIL IQBALChief Compliance officer5.SALIM AMLANIGroup internal audit6.TULU ISLAMGM-BRANCH & TRADE OPERATIONS7.NAUSHEEN AHMEDCompany secretary & head legal8. SOHAIL MALIKChief risk officer9.NAUMAN K. DARHead-corporate & investment banking andInternational banking 10.ABID SATTARHead-Global operations & learning and development

11.MUDASSIR H. KHANChief information officer12.ASLAM GADITHead-remedial assets13.MIRZA SALEEM BAIGHEAD-ISLAMIC banking14.ALY MUSTANSIRHead of marketing & brand management15.M.SALAHUDDIN MANZOORGlobal treasurer 16.DR.RAZI AZMATHead Human Resources17.FAIQ SADIQHEAD PAYMENT SERVICE18.ABDUR RASHID AWANBusiness head-semi urban areas19.AMAN AZIZ SIDDIQUIRGM-GULF (USE, OMAN, BAHRAIN)20.SHAHID FAKHRUDIN Gm-International & Market Risk Management

AWARDS

2008

Best Bank in PakistanMost Innovative Market Award

2009

The Best Emerging Market Bank in PakistanHBL Among Top 500 Global Financial Brands

AWARDS

HBL wins Emerging Market Bank Award in Pakistan

2010

The annual World Bank and IMF Meetings 2010 in Washington, D.C., HBL was presented with 2 awards: Best Bank Pakistan and Best Trade Finance Provider Pakistan. These awards were conferred on HBL in recognition of its achievements in product delivery and service quality in the markets where it operates.

DEPARTMENTS

Cash Department

The cash department is the most important department of the bank, it receives cash from the customer and then deposit it into the accounts of the customer and maintain their balances.

Bills and Remittances Department

The main funtions of this department is to deal in following:

Outward bills for collection(OBC)

Inwards bills for collection(IBC)

Foreign Exchange Department

The main function of this department is to facilitate the imports and exports by opening up of letter of credit the banks provide.

Credit Department

The function of credit department is to lend money in the form of clean advances against promissory notes, as well as secured advances against tangible and marketable securities. The bankers prefer such securities that do not run the risk of general depreciation due to market fluctuations.

PRODUCTS

Deposit Accounts

Current Accounts:

Savings Accounts:

HBL Freedom AccountHBL Business Value AccountCurrent AccountBasic Banking AccountHBL Value AccountPLS-Saving AccountDaily Munafa Account

DEPOSIT ACCOUNTS

Term Accounts: Foreign Currency:

HBL Advantage AccountInvestment Plus DepositForeign Currency Saving Account High Yield Foreign Currency Fixed Deposit

SERVICES

Services

ATMInternet Banking Mobile BankingPhone BankingDebit CardCredit Cards

ATM

Cash withdrawalAccount Balance

Enquiry

Mini StatementFunds TransferUtility Bill

Payment

Internet Banking

Funds TransferHBL Credit Card bill

payment

Cheque book RequestUtility Bills payment

Mobile Banking

Funds TransferUtility Bills paymentAccount / Credit Card

balances

Account / Credit card

statements

Phone Banking

Balance inquiryAccount informationStop cheque payment

request

Credit Card activation & de-activation

Debit Card

All services offered through ATM can be availed using HBL Debit cardUpto 15% on leading restaurants

Credit Cards

Gold CardGreen Card

Credit Limits

Minimum150000

Maximum

500000

Minimum

20000

Maximum

149000

HBL ADVANCES

Car Loan

HBL CarLoan helps you get your preferred car through a simple and hassle-free process, backed by superior service and support.

Features

Choice of used, new local/imported and reconditioned imported carRepayment options ranging upto 7 years.Upto 85% of financing for the car of your choice.Insurance at all times for complete peace of mind and security.

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

Home Loan

Outright Purchase

The outright purchase loan option provides financing for buying a new house.

Home Improvement

Home-improvement loan option provides financing for renovating your house.

Personal Loan

HBL Personal Loan

With HBL Personal Loan Gain the freedom to use hard cash for all your needs.

Processing Fee on approval only.Repayment tenures 12 to 60 monthsAmount Rs. 25000 to Rs.2000000Quick ProcessingFree life insurance

Bancassurance

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

Amaan: Retirement Plan Tabeer: Education & Marriage Plan

Amaan is a pension plan that provides an opportunity for growth through investment in a balanced portfolio with post-retirement income benefits.

Tabeer is a plan that provides parents with a means to accumulate a fund over a period of time which can then be used to pay for a childs education or marriage.

SWOT Analysis

Strengths

HABIB Bank is well established bank enjoying long history of over 65 years of experience and profitable operation.HBL is the largest private bank in Pakistan now and people trust is very high It has the largest branch network among private banks of Pakistan.HBL has been very effective in controlling costs as it successfully restructured itself after privatization. Excellent branches appearance gives an edge to HBL over other banks. The branches are well furnished even in less developed areas where other banks branches give a poor view.

WEAKNESS

All branches are not onlineLow rate of interests on depositsUnfavorable union activities and management conflictsChecking System is at intra-department levelWeak marketing policiesCentralized management in particular areas

Opportunities

Huge untapped marketGrowth of international networkOpportunities for growth and expansion in cash management.Faster market growth represents opportunity to grow 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

Threats

Other private commercial bank with sound profitability is also a threat to HBL e.g. UBL, Alfalfa, MCB etc.For the 2 to 3 years, Pakistan is facing economic and political instability which is a big threat.Foreign banks are flourishing in field of consumer financing.Afghan war and terrorisms has an effect on the economy of Pakistan.Increased regulations from state bank of Pakistan may affect its business.

PEST Analysis

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.

To protect banking companies from unfair competition.To protect consumers from unfair business practices adopted by banking companiesTo 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 incomeSaving ratesConsumption patronsRates of interestBudget deficitExchange ratesCost of livingInflation

SOCIO-CULTURAL ENVIRONMENT

A society is shaped by beliefs, norms and values. People in a society consciously and unconsciously interact with:

ThemselvesOthersOrganizationSocietyNature

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

Consciousness about servicesConcern for environmentImproved 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.

Financial Analysis

MAIN PROBLEMS

There is noticeable communication gap between upper level management and operational staff.There is also overstaffing in HBL moreover inefficient individuals are in credit card department.There is huge difference in approaches of experienced staff &young staffImported upper level managementExperienced staff is frustrated mainly because oftwo reasonsSalaries have not been revised from last 10yearsExperienced Habibians are neither satisfied by the privatization of bank nor they were taken into confidence at that times

Recomendations

Employees training programs must be introduce on continuous basis so that employees have understanding with the latest developments specially with the customers.Bank should introduced incentives plans for employees on regular basis so that if employees may work whole heartedly for the welfare of their organization. While giving incentive qualification, work, experience, hard work and such other factors much be considered.Mismanagement of resources must be avoided as much as possible as a decrease profit but discourage hard workers and honest employees.

Recomendations

Habib Bank is going towards mobile banking but the problem is that a common client has no idea of its usage due to lack of marketing. I think that a proper marketing program must be launched for client awareness.Banks different scheme must be convey to the targeted customers so that to have a reasonable share in market.Bank should help the society by providing interest free loans to the talented students.Fresh graduates must be recruited, as the combination of experience and fresh can produce better result and it will improve the efficiency of management.

Conclusion

HBL is clearly thefirst choice of everyone who believes inqualitative approach ofbanking an environment of highly responsible people. Bank is enjoying a healthy market share and taste ofgood status in terms of its operative features support. HBL is clearly the best bankoperating in Pakistan. Corporate and commercial functions are distinguished features of HBLexperiencing a good reputation and reasonable mark up with respect to prevailing market mark up with assurance of satisfaction and support. HBL has more customers as compare to other banks, if they given proper attention to every customer then in few years it will be the leading bank of the country