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Acknowledgment

No one can say that I am perfect everyone should admit that without the help of
ALLAH and His people a man cant get anything so I bow my head before
almighty Allah with gratitude. I am also very much thankful and presents salute to
many individuals who have helped me in shaping this report. I am also thankful to
the the staff Habib Bank Ltd especially to Miss Hamna sajjad who provide me an
opportunity to work in friendly environment. I am very thankful to all the staff that
helped me in understanding my work, who helped me in every step and
appreciated me well at my work.

Table of content
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CHAPTER #.
1.

DESCRIPTION

INTRODUCTION

PAGE #.
4 to 12

Meaning of Bank
Historical Development of Bank
Historical of Development HBL
Mission, Vision & core values
Objective of HBL
Organizational structure
Management hierarchy
2

Functions & departments

13 to 30

Functions of HBL
Account opening section
Remittances Section
clearing Section

SWOT analysis
3

30 to 31

Services of HBL
ATM
Debit card
Phone banking
Mobile banking
Internet banking

Financial analysis

32 to 38

What I learned through internship

39

Recommendation

40

Bibliography

41

Executive summary
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Banking sector owes a pivotal importance in the economy of any country through its
vibrant functions. This is the deep seated motivator that geared up me to join any bank
for internship. Moreover, the practice and familiarity learned during this tenure would
also attest very helpful and alleviating in the awaiting proficient life.
Every student of Bachelor in Business Administration at UNIVERSITY OF EDUCATION
has an essential requirement to do Six weeks internship in any of the well reputed
organization. The purpose of this program is to acquaint the students with practical
applications of theoretical concepts taught to them during conduct of their BBA program
So to quench the thirst of practical exposure and for getting the basic knowledge about
Bank I joined HBL Model town. During six week in HBL I gather all necessary
information about HBL.
Efforts have been made to compile this report in such a way that activities its salient
features not only for students but also for the layman. I have divided this report into
different chapters.
First chapter is about introduction of HBL. Second chapter is about department and
function gives us description about how to open an account, how to deposit and
clearing. Third chapter discuss the services. Fourth chapter is about financial analysis
and what I learned through internship.

List of table
Table name

Page number

Return on asset
Return on equity
Advances to deposits
Equity to assets
Equity to deposit ratio
Investment to total asset
Earnings per share

Overview of organization
History and Background of HBL
Habib Bank Limited commonly referred to as "HBL" and head-quartered in Habib Bank
Plaza, Karachi, Pakistan, is the largest bank in Pakistan. The bank has a network of
over 1547 branches in Pakistan and 55 branches worldwide. It has a domestic market
share of over 40%. It continues to dominate the commercial banking sector with a major
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market share in inward foreign remittances (55%) and loans to small industries, traders
and farmers.
Mohammed Ali Jinnah, Pakistan's founding father, realized the importance of financial
intermediation while he was campaigning for the creation of a separate homeland for
the Muslims of India. He persuaded the Habib family to establish a commercial bank
that could serve the Indian Muslim community. His initiative resulted in the creation of
Habib Bank in 1941, with HO in Bombay (now Mumbai), and fixed capital of 25,000
rupees. The bank played an important role in mobilizing funds from the Muslim
community to finance the All-India Muslim League's campaign for the establishment of
Pakistan. Habib Bank also played an important role in channeling relief funds to
Muslims hurt in the communal riots and violence that preceded the departure of the
British from India.
After Pakistan was born in 1947, Habib Bank, at the urging of Governor-General Jinnah,
moved its headquarters to Karachi, Pakistan's first capital. This gave Karachi its first
commercial bank of the newly formed Pakistan. The Habib family owned and managed
the bank until the Pakistan government nationalized it on 1 January 1974.HBLs first
international branch was established in Colombo, Sri Lanka in 1951 and Habib Bank
Plaza was built in 1972 to commemorate the banks 25 th Anniversary.
On June 13, 2002 Pakistans Privatization Commission announced that the Government
of Pakistan had formally granted the Agha Khan Fund for Economic Development
(AKFED) rights to 51% of the shareholding in HBL, against an investment of PKR
22.409 billion (USD 389 million). On February 26, 204, management control was
handed over to AKFED. The Board of Directors was reconstituted to have four AKFED
nominees, including the Chairman and the President/CEO and three Government of
Pakistan nominees.
It was HBL that introduced products such as Credit Cards, ATMs, Travelers Cheques,
etc., to the Pakistani market. HBL plays a central role in Pakistan's financial and
economic development. Habib Bank Plaza, the tallest building in Pakistan, is the proud
symbol of HBLs leadership in Pakistans corporate arena.
Habib Bank offers the basic range of banking services to its customers, to include
Commercial, Corporate, Investment, and Retail Banking, Treasury, and Islamic Banking.
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It has more than 1549 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.

Introduction of the organization

Vision statement
Enabling people to advance with confidence and successes

Mission statement
To make our customers prosper, our staff excel and create value for
shareholders

Core values
HBL is absolutely trapped with a business philosophy that incorporate five concrete
values which each individual associated with the bank abides by. Our values are the
fundamental principles that define our culture and are brought to in our life in our
attitudes and behavior. It is our values that make us unique and unmistakable. Our
values are defined below:

1) Excellence
This is at the core of everything we do. The markets in which we operate are
becoming increasingly competitive, giving our customers an abundance of
choice. Only through being the very best - in terms of the service we offer, our
products and premises - can we hope to be successful and grow.

2) Integrity
For us, integrity means a synergic approach towards abiding our core values.
United with the force of shared values and integrity, we form a network of a wellintegrated team.

3) Meritocracy
At every level, from selection to advancement, we have designed a consistent
system of human resource practices, based on objective criteria throughout all
the layers of the organization. HBL is therefore, able to achieve a specific level of
performance at every layer of the organization.

4) Customer Focus

We understand fully the needs of our customers and adapt our products and
services to meet those. We always strive to put the satisfaction of our customers
first.

5) Progressiveness
We believe in the advancement of society through the adoption of enlightened
working practices, innovative new products and processes, and a spirit of
enterprise.

Symbol of HBL

This symbol of HBL contains Bismillah at top,


Sword under Bismillah
And then lion under sword
.This symbol depicts:
Bismillah ____________ Islamic values and culture
Sword_______________power
Lion_________________ Strength
HBL _________________brand name
THE POWER TO LEAD ____logo

Objective
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The banks main aim is to provide better and efficient services to its domestic and
efficient customers and overseas customer regarding the need for improving the
financial performance of the company.
Next are some of the main objectives of HBL.
To get profit for the Bank itself and maximize its shareholders value.
To offer solutions for multiple requirements of clients of assorted financial nature.
To cope with the changing trends of the modern day financial market.
To be a diversified bank by offering all basic consumer services along with specialized
services
Honest and ethical conduct, including ethical handling of actual or apparent conflicts of
interest between personal and professional relationship.
To provide employment opportunities to people.
To help in development and industrialization of the country

Organizational structure
Domestic Structure
With a domestic system of 1408 trade branches and 17 business branches which are
well located in all cities and towns of the country, the bank provides the entire banking
services counting consumer and corporate finances, leasing, investment and money
market transactions etc.

International Structure
Through its 15 overseas offices including branches, locally included subsidiaries and
joint ventures, the bank has international presence in 26 countries encompassing the
United Kingdom, Continental Europe, the Middle East, Southeast and Far East Asia,
Africa, Australia, and the United States. Besides providing banking services to the
emigrants Pakistanis, these offices also help out in developing linkages between
Pakistan and the international financial set-up.
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Operational Structure
HBL is among the principal commercial bank of Pakistan. It accounts for a considerable
share (40%) of the entire commercial banking market in Pakistan with a set-up of 1,705
domestic branches; 55 overseas branches in 26 countries extend over Europe, the
Middle East, Far East, Asia, Africa and the United States; 3 HBL wholly owned
subsidiaries explicitly 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
delegate offices in Iran and Egypt.

Retail Banking
Retail banking of HBL consists of trade lending, deposits, and banking services to
private individual and small businesses.

Corporate & Commercial Banking


Consists of business customers and savings banking, includes advices and placements
to

commercial

mergers

and

acquisitions,

underwriting,

privatizations,

and

securitizations.

Ownership Structure
HBL operated under Government possession from 1974-2004. After privatization in
2004, 51% of the banks shares were purchased by the Agha Khan Fund for Economic
Development, an organization of the Agha Khan Development Network. The
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administration of Pakistan is expected to slowly strip its remaining 49% shares in the
bank.

Business Segments
A segment is a noticeable constituent of the bank that is occupied in providing product
or service (business segment), or in providing products or services within a particular
economic environment (geographical segment), which is subject to risk and rewards
that are different from those of other segments. The banks primary layout of reporting is
based on business segments.

Geographical Segments
The bank operates in five geographic regions, being:

Pakistan

Asia Pacific (including South Asia)

Europe

North America

Middle East

Others

Management Hierarchy
President

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Board of Directors
Member Executive Board
Zonal Chief
Branch Managers

Functions and departments


FUNCTIONS OF HBL
Basic Functions

Receiving of money and deposits

Lending and investing the deposit money

Miscellaneous functions

Miscellaneous Functions

Collecting negotiable instruments on behalf of customer.

Issuing Letter of Credit for the customer.

Receiving values for safe custody.

Issuing guarantees and LCs.

Utility services.
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Transfer money from one place to another.

Giving their customer life insurances for better future.

Departments of HBL
A variety of departments are working in all the branches of Habib Bank Limited to
smooth the progress of banking for the customers. Few of them are:

1. Account Opening Department:


Account opening is a contract in which customer offers his finances and bank accepts
those funds, hence the nature of relation between a banker and customer is of a
contractual one and all the conditions pertinent to this agreement act are also
applicable.
The essential function of accounts department is to open fresh customers account and
assist the customers for the account opening purpose.

A) Types of accounts:
Depositors can open following types of accounts.
Current account
Saving account
Basic Baking Account
Freedom account
Foreign currency account
HBL id

Current Account/Demand Deposit:

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In this category of account the customer is permitted to withdraw or deposit


money as and when he likes. Unlike term deposit there is no restriction of
withdrawals but the depositor have to maintain 5000 Rs in his account. The
depositor can draw or demand amount money at any time by presenting the
cheque in the bank. No revenue or interest is specified on these accounts. These
types of accounts are generally maintained by the businessmen who may draw
money at any time. Zakat is also not deducted on these accounts and no any
notice is necessary for the withdrawal of money. In urbanized and developing
countries a very noteworthy amount of money is kept under current account.

Saving Account
Saving Account is that account in which customer puts his surplus money which
he saves from his daily expenditure. The account can be operated by depositing
a minimum cash of Rs 1000. Small percentage of interest is allowed on the
balance of this account
HBL is giving seven types of saving accounts
I.

PLS_ saving account

II.

Value account

III.

Remittance Munafa Plus Savings Account

IV.

Daily munafa account

V.

Daily progressive account

VI.

HBL money club

VII.

HBL rutba

I.

Profit and Loss (PLS) Account:


These sorts of accounts are one footstep towards the Islamisation of banking
system in Pakistan. Under such accounts bank allows no interest to the
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customers. Following each six months the executive board of the bank specifies
the profit/interest on this account and the rate of profit is declared by the Head
Office Habib Bank Limited which is 7.12% per annum. Profit is paid after every
half year end.
On the first of Ramadan Zakat is deducted at the rate of 2.5%. If any customer
does want to pay the Zakat form his account then he must give an affidavit that
he will give Zakat by himself or he belongs to Fiqah-e-Jafria.
Limitation on withdrawal of heavy balances is now abolished. Customer can
withdraw heavy amount within the banking hours without giving any notice.

II.

Value account
Hbl value account is a profit making term of bank policies. That provides 7.50%
profit per annum to their account holders. In this account, account holder can
deposit from 10000 to 100,000RS. Profit is calculated monthly but credited
quarterly. HBL provides check book and debit card facilities to their value account
holders.

III.

Remittance Munafa Plus Savings Account


HBL provides special account for their foreign fellows who send foreign
remittance. This is the saving account in which HBL provides 7.23% profit per
annum to their account holders. Profit is paid every month.

IV.

Daily Munafa Account


This is the saving account in which profit is calculated on daily basis but is paid
every month. Up to 7.55% profit is provided to the HBL daily munafa account

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holders. There is a limitation of having minimum balance of 20000 Rs in account.


HBL provides inter branch transaction and debit card facilities.

V.

Daily Progressive Account


This is the unique transactional saving account for institutions. In this account profit is
calculated daily but paid monthly. Up to 7.21% profit is given to the daily progressive
account holder per annum. There is a limitation of having minimum balance of 20000 Rs
in account. HBL provides inter branch transaction facility to their account holders

VI.

HBL money club


HBL money club is saving account for kids. This account can be opened
with as little amount as 1 Rs. Account holder can earn profit monthly. 7.25%
interest is given per annum. They can earn bonus profit by simply depositing Rs
100 and making no withdrawal throughout the month. Exciting gifts are given to
the kids (ages 6-17) which includes mission box and debit card. Mission box
have a visa debit card for free, a wrist wallet and a mission box.

VII.

HBL Rutba
HBL rutba is specially designed for individuals aged 55 or above who look
forward to a financially independent life after retirement, with HBL Rutba
customer can add value to his saving up to 8% per annum and enjoy flexibility to
conduct transactions and make as many deposits and withdrawals without any
charge. Profit is calculated on an average balance and paid out monthly. There is
no limitation of minimum balance required. There is a facility of free cheqe books.
If the account holder maintain 10000 Rs he can get free personal accident
Insurance and free over-the-counter cash insurance cove.

Basic banking account


Basic banking account is non. Profitable account in which there is no limitation of
having balance in account. This account can be opened with the amount of 1000

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Rs. There is a facility of up to 2 withdrawals and 2 deposit transactions free every


month. Unlimited withdrawal can be done through HBL debit card.

Freedom account
Freedom account is for customers who wants account for business purpose. There are
two type of freedom account difference between those account is the limit of balance.
The services for both are same. In one freedom account limit of balance is 25000 Rs
and in other account limit is 50000 Rs. Customers can avail free services of withdrawal
& deposit transactions through any HBL branch, online funds transfer transactions,
Bankers Cheques, duplicate account statements, debit card issuance (for individuals
and sole proprietors), ATM transactions through HBL network, SMS alerts* on over-thecounter transactions above PKR 25,000/- (for individuals and sole proprietors) upon
activation via HBL Phone banking. A charge of Rs. 58 is applicable to each debit
transaction initiated by the customer during the month if balance falls below Rs. 25000
or 50,000 even for a day

Foreign currency account


There are two types of foreign currency account

FC-SB
This is saving account offered in three currencies. USD (US dollar), EUR (Euro) and
GBP (UK pound). This account is having tiered products with rates depending on choice
of currency. Interest is payable on a quarterly basis. To earn profit minimum balance
should be 1000 USD, EUR or GBP.

HYFFD (High yield foreign currency fixed deposit)

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In high yield foreign currency fixed deposit account profit is paid on maturity only. No
interim interest is payable. This is available in 1 month, 2 month, 3 month, 6 month and
12 month in USD, EUR and GBP. HBL is giving tiered product to its account holder with
rates depending on choice of currency and term.

HBL I.d
HBL i.d is current account for students. It can be opened from a little amount as
10 Rs. Cheque book and HBL i.d debit card are the free facilities provided by
HBL to their customers. Students can also save money by opening a saving
bucket with any amount. The saving period can be from 3 to 12 months. 9% profit
is given to the account holders. When the saving period ends, the money goes
back to the account for use.

B) Requirements for Opening an Account:

A copy of ID card of both introducer and customer

Original ID for verification copies of student card for students and


appointment letter from the employees of IUB.

If customer use thumbs impression then must give his 3 recent photographs.

Next of kin: the customer must clear that who is responsible for the account in
his absence.

Customer must be present at the time of opening the account.

C) How to open an account:


There is a definite official procedure which is to be observed for opening a current or
saving account with a Bank. These formalities in brief are as under:

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I.

Formal Application:

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


to the bank to permit him to have and manage the current or saving account.
II.

Obtaining Introduction:

The bank previous to opening an account obtains introduction of the customer from an
old customer, responsible person etc.

III.

Specimen Signature:

When the Banker is contented about the truthfulness of the customer, he agrees to
open the account. The Banker then obtains the specimen signatures of the customer on
the signature book or on card.

IV.

Minimum Initial Deposit:

In Pakistan the current account can be opened with a minimum balance of Rs. 500/and PLS Saving Account with a minimum of Rs 100/- These amounts are also the
minimum balances to be maintained by the account holders with the bank.

V.

Operating The Account:

When an account is opened in a Bank, the Banker gives to the customer.


i. Pay in slip book.
ii. Cheque Book and pass book with a view to operate it.
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Cheque book:
It is a printed book of blank cheques provided by the bank to its customer for drawing
money from their account. Different cheque books are available for the current and PLS
account.

Issuance of chequebook:
For issuance of cheque book of a new account, the customer first fills out the requisition
slip and submit it to the relevant officer, who in turn will issue chequebook to the
customer within 4-5 days or a week. The officer will enter the date, account title, number
of leaves, cheque number from start to end, account number and the signature of the
applicant on the chequebook issuance register. The officer will also enter the account
number on each cheque of the book and in case of photo account (either having thumb
impression or shaky signs) stamp is impressed written All the cheques to be signed in
the presence of the bank officer (this stamp is impressed on the cheque books of those
people who have shaky signs) Right or left thumb will be affixed in the presence of
bank officer (This stamp in impressed on the cheque books of those people who use
thumb impressions). And in case of Minors account, every cheque has a stamp
impressed written The account will be operated by minor if even minor attains the age
of majority.

D) Withdrawal from an Account:


Withdrawal is done through cheques supplied by the Bank. A new cheque book is
issued only on receipts of the requisition slip attached to the cheque book issued earlier
and this offered along with the depositor pass book for entire against cheque book
challah. Cheque book is issued on prudence of the branch manager.

E) Transfer of an Account:

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Account cannot be transferred to any other branches of Habib Bank Ltd. If a customer
wants to transfer his account, he linked in the account by giving copy of CNIC and filling
the additional request form.so a new account is opened and legal formalities are
required.

F) Closing of an Account:
A shareholder ready to close his account must present his pass book in order that
withdrawals and the amount of interest due on the account is entered within and final
balance stuck. This balance is then paid to the depositor and his proof of payment is
taken, the pass book is canceled, unused cheque forms on hand are also surrendered
at the same time.

G) Secrecy:
The confidentiality of depositors account is the responsibility of every official engaged in
the Bank service.

H) Money Deposited or Drawn by Post:


When currency is sent by post for deposit, the pass book and a letter starting the
amount of the deposit and the number of the account escort it.
When a depositor desires to withdraw money by post he must forwards his pass book
with a letter stating the number of his account, the amount to be drawn and either the
money is to be remitted by money- order or in currency notes registered.

2. Remittance Department:
Remittances are arithmetic of money sent in payment for or against something.
The remittance department is chiefly concerned with these payments. As it is the
responsibility of the bank to pass on the money to any place where there is a
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bank. Remittance is the chief department of the bank. It is the easiest and safest
way to send money to any situate. Remittances are divided into:

A) Inward Remittance:
Inward remittances refer to payment in goodwill of the banks account holders.
Inward remittance includes all cheques received for collection i.e. cheques and
drafts received for the payment and clearance or drawn on us from customers or
other bank on behalf of their customers are called remittance inward.

B) Outward Remittance:
Outward remittances are the entire payments prepared to other people on behalf
of the account holders in the bank. Outward remittances can also be done for
non-account holders who deposit cash in the bank and remittance tools are
prepared for them. In short, all instruments issued by us which are drawn on
other branch of the same bank or instrument deposited for collection from other
bank locally or out of the city is called remittance outward.

Types of Remittance:
Habib Bank Ltd. Of Pakistan deals with the following types of remittance:

I.

Demand Draft:

Demand draft is the on paper order given by one branch of the bank on the behalf of
client to another branch outside the city of the same bank for a certain amount to the
certain person.

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It is the most commonly used method for the remittance of money. It is very simple,
firstly a form is to be filled, in which all details are specified that where and in which
branch the draft is to be sent then the money is deposited which is called draft and
money can be drawn after showing to the bank of the specified branch of the bank. Only
specified person can draw the money on that draft. Another method to secure the
payment of the draft could be the crossing of the draft which means that it will only be
deposited in the payees account.
It is unconditional order. The payee is not bound to have an account in the bank. It is
issued to rest of the customer and the bank receives the charges and exchange.

II.

Pay Order:

A pay order is on paper order issued by the bank on its own branch, drawn upon and
payable by itself to pay a particular sum of the money to the person. The purpose of the
pay order is to transfer the funds from one place to another. It is usually not issued in
favor of the parties of other cities. Usually the pay order is issued for the local transfer of
money between the parties.
Pay order is less costly method of relocate money. Normally this method is used to
transfer money inside the city. If it is used city wide, it takes a long time.

Procedure of DD and Pay order:

First remittance application form is filled that is etched in annexure of the report.
Here the customer is requested to fill update, branch, amount, cheque #,
beneficiary details; his complete name, address, CNIC no., account no. and the
details of the applicant.

Customer is asked to submit money on the counter by first filling the pay in slip
and required amount is received by customer from the customer.
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Cash is received by the cashier on counter and he place stamps on the pay in
slip and give the receipt to the customer.

Then the remittance department will make the DD or pay order and then handed
over to customer.

3. Clearing Department:
Clearing house is a place where ambassador, of all bank get together for the intention
of setting the inter bank indebtedness arising from the transmit of deposit by a customer
of a particular bank to another bank.
This is a superfluous banking facility which is provided to the community in this if they
are maintaining an account with the HBL they can lodge Cheque of any bank in
Pakistan, which will be collected and credited to their respective accounts through the
course of clearing. In this representatives of various banks are gathered at State Bank
of Pakistan and exchanges the Cheque presented to them for debit of the respective
accounts and in second round of meeting provide each other the fate of those cheques
to be credited to respective accounts.
When people present the Cheque of any other bank for clearing, first enter the Cheque
into the clearing register of the bank. Then this Cheque sent to the NIFT for clearing.
NIFT is the department which is created by the SBP for clearing the checks of different
banks.

NIFT

National Institutional Facilitations Technologies (Pvt) limited was established in


1997 by the banking giants of Pakistan, i.e. HBL, NBP, ABL, MCB.

NIFT has the blessing and the support of the SBP.

It has offices in all the major cities of Pakistan.

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NIFT facilitates the clearing of cheques between institutions locally (within the
city).

It is also referred to as the Automated Clearing House.

NIFT collects cheques, demand drafts, Pay orders, Travelers Cheques, etc. from all
the branches of different banks within city through its carriers and send them to the
branches on which these are drawn for clearing. After the branches approve the
instruments drawn on them, NIFT prepares a sheet for each branch showing the
number for instruments and amount in its favor and drawn on it and sends it to each
branch.

SWOT Analysis
The short form SWOT stands for an organizations internal Strengths and Weaknesses
and its external Opportunities and Threats. The principle of such examination is to
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assemble on companys strengths in order to take advantage of opportunities and argue


against threats and to accurate companys weaknesses. SWOT analysis is based on
the supposition that if executives cautiously evaluate such strengths, weaknesses,
opportunities, and threats, a valuable approach for making sure managerial
accomplishment will become apparent.

SWOT Analysis of HBL


HBL has very effectual net of branches all over the country. Each 10 th Pakistani is
account holder of this bank. HBL has made enormous savings in almost all the
essential economic sectors of Pakistan. HBL not only has made investment in
commerce but also in small scale industry as well. HBL has well-organized & a smaller
amount of technical set up. Habib Bank Ltd. has introduced monthly revenue plan that
provides almost maximum interest rate. ATM was introduced in Pakistan by Habib Bank
Ltd. Master Card facilities are also accessible to the customers. HBL is measured to be
a very sound bank in the financial circles. It is the bank where the clientele can
securely keep their money as long as they want.
In SWOT analysis the most excellent strategies accomplish in organizations mission
by:
1.

Taking advantage of opportunities and strengths.

2.

Reducing the effect of its threats and

3.

Evading its weaknesses.

Strengths:
A proficiency or potential that facilitates HBL to visualize and put into practice its
strategies.
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The representatives of HBL are considered as one of the most competent


professionals in the banking world.

I noticed that HBL employees cooperate with their clients as if they are their
personal friends and talk about about their problems as their own.

Habib Bank Limited has acquired a consistent and easy to use internal computer
system. All information regarding the transactions in customers deposits has
been automated.

HBL uphold its data appropriately.


HBL has very good quality security arrangement.
HBL is the bigger commercial bank in Pakistan with the system of more than
1439 domestic and international branches.

Being the leading the way of banking in Pakistan, HBL is the oldest and the
richest in familiarity.

Habib Bank Ltd. spotlights on consumer banking by rewarding schemes,


products and services suiting best to the requirements and demands of the
customers.

HBL has opened all its branches at marketable regions so that the customers
face no problems in reaching to the bank.

The bank is all the time on the look to get better its services mutually to the
domestic as well as overseas customers.

Human resources development and introduction of new technology towards


contemporary banking.

24 hours cash access and secure payment products for high value transaction.
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Having prospective to meet the competitive environment in the market.


Customer takes benefit from the services at the housing localities.

Weaknesses:
Maximum number of branches carrying out the proper maintenance and
complexity in providing identical working atmosphere at the every branch

Inferior organization of revival of the system is a danger to bankruptcy.


Be deficient in customer feedback.
Little job contentment.
Pitiable ATMs Service
Irregularity in efficiency and working environment due to the largest of branches.
Sense of uncertainty in the employees allocated at little money-making branches
due to the downsizing.

Females feel nervous in an environment in the middle of the male workers.


Prey of political, legal and socio-cultural stress
Short of professionalism in the branch employees frequently.

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Opportunities:
Huge available market prospective in consumer banking.
An opportunity exists, in shape of opening of ladies banking segment inside the
branch which is completely a new idea and it will pull customers towards bank.

Chance for mounting value added services combined with corporate banking
relationships, cash management services to large and medium sized corporate
clients.

Emergent strategy of government on business and commerce sector provide


HBL opportunities to take return of these policies to meet professionally with the
business people to solve their problems with the instant cash and investment
facilities.

Government is taking very courageous steps to endorse Information Technology


in Pakistan. HBL has an opportunity to recover its technology.

Huge international net which mainly emphasizes on trade finance with Pakistan
can be operated to valve trade activities in other markets. In addition, services
such as cross border / offshore financing for corporate customers can be
improved.

Customer advice on diverse products and accounts has really improved the bank
performance and encouraged the ambiance for other potential policies.

Habib Bank Ltd. also has an opportunity to enlarge its new technological
expansion like; tele-banking facilities in a way to serve the customer more
competently.

Due to well-organized and expert management group, HBL can also develop and
enlarge its foreign business productively.

Habib Bank Limited provides opportunity to make use of its abilities and
efficiencies in leasing business

29

Threats:

Consolidation in the banking segment ensuing in increased rivalry.

Scarcity of qualified and focused personnel at minor managerial and officer


stage.

The danger of irregularity and government policy concerning about business and
economics sectors, specially political and regional situation which makes the
environment doubtful.

Increasing global technological progression.

Firm regulation by government over credit conveniences to the customers as


poorly as to meet the prudential.

Loss of assurance of out of the country customers due to freezing of accounts.

Facing more opposition by overseas banks in the marketplace.

Overseas banks are flourishing in field of consumer financing.

Also the rising operation of private banks.

Highly striking and advance services by overseas banks to their customers.

Services of HBL
ATM
Funds can be

transfer (HBL accounts and third party account under 1 Link

network) Utility Bill can be paid through it - KESC, GEPCO, LESCO,FESCO,


HESCO, IESCO, MEPCO, PESCO, QESCO, LWASA, PTCL, SNGPL, SSGC.
Mobile post pay bill can be paid through ATM. Cash can be withdrawal, balance
inquiry can be done through it. Customer can get mini statement. Customer can
generate ATM pin.

DEBIT CARD

30

HBL is offering stylish debit card in six colors to its customers. Customer can
withdraw amount at any time. All services offered through ATM can be availed
using HBL debit card. Customer can get up to 20% discount on leading
restaurants

MOBILE BANKING
Funds can be

transfer (HBL accounts and third party account under 1 Link

network) Utility Bill can be paid through it - KESC, GEPCO, LESCO,FESCO,


HESCO, IESCO, MEPCO, PESCO, QESCO, LWASA, PTCL, SNGPL, SSGC.
Mobile post pay bill can be paid through ATM. HBL credit card payment, Account
balance inquiry, account or credit card statements are the facilities given to the
customers. Customer can maintain their personal setting.

INTERNET BANKING
Funds can be

transfer (HBL accounts and third party account under 1 Link

network) Utility Bill can be paid through it - KESC, GEPCO, LESCO,FESCO,


HESCO, IESCO, MEPCO, PESCO, QESCO, LWASA, PTCL, SNGPL, SSGC.
Mobile post pay bill can be paid through ATM. HBL credit card payment, Account
balance inquiry, account or credit card statements are the facilities given to the
customers. Customer can maintain their personal setting.

PHONE BANKING
Customer are having facilities of bankers cheque request, balance inquiry,
account information, stop cheese book request, debit card activation &
deactivation, credit card activation & deactivation, internet banking support and
account or service settlement request through phone banking.

31

Financial analysis
1. Return on Assets
FORMULA:

Net profit after Tax / Total Assets*100

Year

2009

2010

2011

2012

2013

ROA

1.55%

1.84%

1.94%

1.41%

1.34%

ROA
2.50%
2.00%
1.50%
1.00%
0.50%
0.00%

2009

2010

2011

INTERPRETATION:

32

2012

2013

ROA measures the overall effectiveness of management in generating profit with its
available assets. The higher return on total assets is considered best.
Return on assets decreased in 2012 onwards and it was on peak in year 2011. This
may occurred because of more debt financing in 2011 as compare to years 2012 &
2013 which resulted in declining of net profit and rising of interest cost.

2. Return on Equity:
FORMULA:

Net Profit / Equity*100

Year

2009

2010

2011

2012

2013

ROE

16.10%

17.92%

20.48%

17.33%

16.38%

ROE
25.00%
20.00%
15.00%
10.00%
5.00%
0.00%

2009

2010

2011

33

2012

2013

INTERPRETATION:
ROE measures the return earned on the common stock holders investment on the firm.
Generally the higher the returns the better off are the owners.
In 2011 ROE is very high which indicates that the more efficient management is utilizing
the equity base and is giving a better return to its investors. While in the years 2012 and
onwards ROE is decreasing this happened may be due to increased issuance of longterm debts.

3. Advances to Deposits:
FORMULA:

Advances / Deposits

Year

2009

Advances to 66.60%

2010

2011

2012

2013

61.51%

48.98%

41.13%

40.22%

deposit

34

Advances to deposit
70.00%
60.00%
50.00%
40.00%
30.00%
20.00%
10.00%
0.00%

2009

2010

2011

2012

2013

Interpretation:
This ratio shows advances of the bank as compared to the deposits.
Loans to deposit show a decreasing trend in alternative year from 2009 to 2013. This
shows that the advances of the bank decreased but on the other side bank deposits
increased. While in year 2009 and 2010 the advances of bank increased and deposits
of bank decreased.

4. Equity to Assets:
FORMULA:

Year

Equity / Total assets

2009

2010

2011

35

2012

2013

Equity to

9.64%

10.26%

9.49%

8.16%

8.19%

assets

Equity to assets
12.00%
10.00%
8.00%
6.00%
4.00%
2.00%
0.00%

2009

2010

2011

2012

2013

Interpretation:
The equity to assets ratio shows the profitability and finance of the bank. In 2012 ratio is
lowest this means that much of the bank is financed by loans. From 2009 to 2010 this
ratio increased to 10.26% in 2010 showing better financial and profitability position of
the bank as approximately all of the long term capital is equity.

5. Equity to deposit ratio:

36

FORMULA:

Equity / Deposits

Year

2009

2010

2011

2012

2013

Equity to

12.19%

12.71%

11.58%

10.28%

10.03%

deposit
ratio

Equity to deposit ratio


14.00%
12.00%
10.00%
8.00%
6.00%
4.00%
2.00%
0.00%

2009

2010

2011

2012

2013

Interpretation:
This ratio shows the relation between total equity to the total deposit.
In 2013 ratio is lowest this means that much of the bank was financed by deposits made
to bank rather than equity. From 2009 to 2010 this ratio is increasing to 12.71% in 2010
showing better financial and profitable position of the bank as approximately all of the
long term capital is equity with less or no deposits involved in the financing of
37

6. Investment to total assets:


FORMULA:

Investment / Total Assets

Year

2009

2010

2011

2012

2013

Inv. to total

25.06%

27.56%

36.73%

49.49%

48.15%

assets

Inv. to total assets


60.00%
50.00%
40.00%
30.00%
20.00%
10.00%
0.00%

2009

2010

2011

2012

2013

Interpretation:
The above ratio shows the relation between the investment and total assets.
As the calculation show that for the couple of years the ratio was low but the value has
increased in year 2011 and 2012. This means that the investment has increased a lot as
compared to the assets.

38

7. Earning per share:


FORMULA: Profit available to Common Shareholders / No. of Equity
Holders

Year

2009

2010

2011

2012

2013

EPS

19.70%

15.26%

20.13%

18.36%

17.15%

Chart Title
0.25
0.2
0.15
0.1
0.05
0

Year

2009

2010

2011

2012

2013

Interpretation:
In 2011 company has a maximum EPS it indicates that company is enjoying profits
more as compare to year 2010 onwards till 2013 which shows a tremendous
decrease in EPS showing adverse effect to the companys profitability.
39

What I learned during internship


The most important thing that I learn is that the difference between the behaviors of
officials.
In my first week of internship I learned about deposit slips, checks and account
opening procedure. People coming to bank for account opening are not well
educated always, or if they are, they prefer help in this procedure. As for people
they are always very careful in account opening session that, indirectly is a
measure for secure money for them. In my branch of Hbl, I was supposed to
handle people and their account opening procedure. I handled their personal
information honestly and provided the best help I could. In that case I admire the
help I collected from my branch officials.
In 2nd week of my internship I learned about ARF (Additional Request forms). I
learned how to operate a locker and deal customers. Most of the people coming
to me were having troubles in activation of debit card. Due to lack of education in
this sector customers trying to get help on calls couldnt share all the information
needed so they headed to me for help. I handled their information and helped
them in a proper manner.
My 3rd week of internship was in remittance section. In this section I learned
about how to transfer money from one place to another place. Most of people
coming in remittance section were educated and a little trouble was handled in
this section. In this section I learned about demand draft. That is not only Hbl to
Hbl but also to other firms. Mostly education sector was the one I deal with. They
came to me for a draft for universities. Commission for Demand draft in
40

educational sector is Rs.60. Online transfer is the 2 nd thing I learned in this


section. That is beneficial to transfer money online from one place to another
place. People coming to me were always in a hurry and a little bit rude. But it all
went fine in the end.
In 4th week of my internship, I learned about how to apply for check books,
balance inquiry, how to activate an account, zakat deduction and bank statement.

Recommendation I Propose
I will give following suggestions for the better function of the Bank:
1) that number of staff members in the branch should be increased so that they can
meet their customers requirements quickly and efficiently
2) Old and lazy staff should be replaced by young, qualified and energetic staff.
3) In early days of month there is a great rush of customers, which cause
inconvenience for the officer concerned and cashier as well, there should be
more staff members.
4) The daily newspapers and journals should be provided to the customers visiting
there.
5) Bank should facilitate their customer with proper siting places.
6) ATM machines remains faulty, so it should be taken care of.
7) A separate ladies counter should be there
8) Problem in Online Banking should be reduced in all the branches.
9) Reference system should be eliminated and management should strictly order
to the employees and in charge officers to provide complete attention to those
who dont have any reference
10)Aggressive publicity campaign must be introduced through press and Electronic
media for new products and scheme by initiating vigorous marketing policy.
11) Consumer financing should be initiated to capture the market share.
41

Bibliography
1. Akhtar, S.M. Economic development of Pakistan 1st Edition (united Publisher,
Lahore, 1987).
2. Edmister, Robert . Finical Institutions 2nd edition,(Mc Graw Hil] Inc. New York,
1986).
3. Annual report 2013
4. http://www.hbl.com/individual-customers-services.php
5. www.hbl.com
6. www.KSE.com.pk
7.

www.DAWN.com

42

Methodology
Time period of research
Time period of this research is two weeks as from 03 july 2013 to 23 july 2013.

Source of data collection


The methodology reported for collection of data is primary as well as secondary
data. The biggest source of information is my personal observation while working
with staff and having discussion with them

Primary data

Day to day desk work


Personal observation of the bank officials
Discussion with the bank officials
Discussions with the clients.
Different file study and case history of banks parties

Secondary data

Annual report of HBL

Different manual published by the Bank

Official instructions from the head office of the Bank.

Study of related books, seminar paper, training papers, Publication of


statements,

Manuals etc

43

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