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DEDICATION
I dedicate this report To my parents and all those Who love me
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1. Acknowledgements
First of all I am thankfull to Allah Almighty who create me and send me in this beautiful world. After that I am thankful to my parents and teachers who help me and motivate me to study in Business field. I am thankful to Mr. Usman operational manager who helped me in internship. I would like to thank my institution UOG and faculty members who guide me for this report. I am thankful to all those peoples who loved me and who are my well wishers. I am thankful to all my fellows who help me in preparing this report.
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Table of Contents
Serial #
1 2 3 4
Description
Acknowledgements Executive summary Introduction Overview of organization
Page #
Brief History of Organization Nature of Organization Business Volume Rewards and Honors Product and Services line PEST Analysis Contribution of organization towards
development of country.
5 Organizational Structure
5.1 5.2
6
8.1 8.3
9 10 11
Skills and Qualifications learnt Responsibilities I took How internship will influence the future career Internship activity and Classroom Knowledge Conclusion General observations about sector SWOT Analysis Recommendations References Abbreviations
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2. EXECTIVE SUMMARY
I started my internship at Habib Bank Limited of Pakistan Furniture market branch Gujrat from 17 June to 16 August 2010. Habib Bank is one of the leading banks in Pakistan and having nationwide branches. Habib Bank Limited has a n edge over the other banks with of use of a latest software named. Through the use of software all transactions are passed Online. Its service delivery process has become excellent as per international standards. 1st day of internship I get introduced to all branch members and then I get a brief lecture from operational manager about banks activities and nature of work. I start my work at deposits department and learn that how many types of deposits bank dealing. These types of deposits are current, profit and loss, fixed deposits. Under these heads bank offer some extra ordinary types of accounts to serve its customer more like value account, freedom account, super value account, and advantage account. Then I worked with the cash officer of the Branch from the cash officer I learn the procedure of Cash receipts, Cheques withdrawls, internal transfer of funds, issuance of cheque book and collection of utility bills, positing of utility bills. After that I worked in remittances department, Here I learn issuance of demand draft, online transfer of money and clearing procedure that how cheques are collected and cleared according to their nature. I learned each and every thing very carefully. The staff of that branch helped me very much to learn all these things. Now come to the detail of report.
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3. Introduction
Internship is registered as a complete course in MBA 3 rd semester. It is the opportunity for every student to learn and it is also practical form of all the theoretical operation which we have learn in previous semesters. It was assigned by the Faculty of Management Sciences of UOG. So I have to choose a reputable organization for internship. I selected the banking sector and I choose the Habib Bank Limited it is the most reputable organization in Pakistan. I choose the Furniture market branch with code (2288) Gujrat. I is an online bank with latest technology in a great market. The business of furniture of gujrat is famous in whole Pakistan. There is only one branch of any bank in that market and that is Habib banks branch. It provides the good learning environment for internees. It is the chance for every student to developing the skills. Through internship I acquired the good habit of working for long hours. I think internship is necessary for every student. From internship we come to know about workplace environment and how to act as an employee. Through internship we can get experience of a specific feild
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Rashid of the Abbasid Caliphate. In the 9th century, a Muslim businessman could cash an early form of the cheque in China drawn on sources in Baghdad a tradition that was significantly strength in the 13th and 14th centur ies, during the Mongol Empires. Fragments found in the Cairo Geniza indicate that in the 13th century cheques remarkable similar to our own were in use, only small to save cost on the paper. They contain a sum to paid and then the order "May so and so pay the bearer such and such amount". The date and name of the issuer are also appear.
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attend the occasion. Originally the State Bank was to be established in September 1948. Zahid Hussain was first Governor of the State Bank. He devoted all his time and energy to streamline the working of the State Bank. In normal situation, the State Bank of a country is only set up when the commercial banking start working on sound feet. But the circumstances forced the government to establish Central Bank and the task of establishing the commercial banking was also assigned to the State Bank. The establishment of the National Bank of Pakistan in 1950 on the pattern of Imperial Bank of India was another milestone in the banking history of Pakistan. In September 1949 the rupee value was reduced against the Pound sterling which was a major event in the banking circles of Pakistan. Consequently Indian government also devalued its Rupee against Pound Sterling, however Pakistan decided not to devalue its currency against Pound Sterling which resulted in increase of Pakistans cotton and jute prices for India which affected our exports to India. Though Pakistans economy had to suffer due to decline of exports to India, it gave a sense of economic independence to Pakistan. Cut in imports from Pakistan proved as a blessing in disguise as Pakistan had to explore new markets for its products. However Indian banks which were operating in Pakistan refused to finance Pakistani exports.
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loans to small industries, traders and farmers. International operations were expanded to include the Singapore, Belgium, USA, Oman, Seychelles and Maldi ves and the Netherlands. It is one of the largest banks of Pakistan with 1468 branches inside country and 40 overseas branches (present in 25 countries) at different destinations around the world by the end of December, 2009. It internationally operates in countries including USA (new York), United Kingdom (London, Manchester, Birmingham), Oman, UAE, Hong kong, Singapore, Scotland (Glasgow), Belgium (Brussels), France (Paris), Lebanon (Beirut), Iran, Netherlands (Rotterdam), Turkey (Istanbul), Kenya, Mauritius, Seychelles, Nigeria, Afghanistan, Bahrain, Srilanka , Sudan, Kuwait, Bangladesh, Egypt, Maldives, Indonesia and Australia. Currently HBL is having over 6 million customers. On 29 December 2003 Pakistan's Privatization Commission announced that the Government of Pakistan had formally granted the Aga 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 26 February 2004, management control was handed over to Aga Khan Fund for Economic
Development. The Board of Directors was reconstituted to have four AKFED nominees, including the Chairman and the President and three Government of Pakistan nominees.
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after tax was PKR 3.9 billion or PKR 3.86 per basic and diluted share against PKR 4.01 billion or PKR 4.01 per basic and dil uted share for the same period a year ago. For 2009, Habib Bank Limited posted profit after tax of Rs 13.4 billion, a 23% increase from 2008 PAT which was Rs 10.86 billion. Although pretax profit witness a 26.3% increase over the preceding year which was a chieved via aggressively controlling cost of funds and implementing effective operating cost management. The groups worth also grew by 27.2% to Rs 84 billion, which was Rs 66 billion in 2008. Overall deposits showed an increase of 14% from being Rs 597 bil lion in 2008 to Rs 683 billion in 2009.
Although much sharp measures were taken to alleviate losses and costs, the result of all the efficiency yielded a market share of 13.44% as opposed to 13.35% in 2008. HBL s interest earned for 2009 was 20% greater than that of 2008 and interest expensed was 26% greater. Though, the net interest income for the year ended being Rs 42. 6 billion, a 16% increase from Rs 36 billion in 2008. HBL interest earned after provision was Rs 33.5 billion, 22% higher than 2008. What was interesting to note was that total provision for the year 2009 was actually 1% less than 2008. Only provision against non -performing loans and advances saw a 22% increase whereas provision against diminution in the value of investments exponentially dropped 87 percent, helping interest income grow substantially. Non-interest income did not see any skyrocketing changes, a mere 1% decrease was witnessed resulting in total interest/non -interest income growth of 15%, Rs 44.7 billion (2009). Interest ex pense on the other hand grew by 6% to Rs 23.3 billion leaving Profit before Tax at Rs 21.3 billion, a 26.3% increase from 2008.
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'The Best Emerging Market Bank in Pakistan' HBL among Top 500 Global Financial Brands
'Best Bank In Pakistan' 'Most Innovative Global Trade Finance' 'Buzziest Brands'
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HBL wins two Global Finance Awards HBL wins Best Emerging Market Banks award in Pakistan for 2010 HBL receives 3 Global Finance Awards HBL - 'The Best Emerging Market Bank in Pakistan' HBL applies to SBP for permission to commence due diligence of RBS Pakistan HBL among Top 500 Global Financial Brands 2008 HBL - 'Most innovative Global Trade Finance' award 2008 - 'Best bank In Pakistan' Award 2008 HBL Milestones - 'Buzziest Brands' Awards
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incitation to attract as more depositors as it can. They offer different types of deposit schemes to its customers which includes the following types. These schemes are as follow.
4.5.1.1 Current Accounts
Make unlimited transactions while maintaining a low minimum balance every month. HBL is offering three types of accounts in current account category. Their detail is as under. 1. HBL Business Value Account 2. Current Account 3. Basic Banking Account (BBA)
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Unique transactional account for Businessmen Up to 5.35%* profit per annum Profit calculated daily, paid every quarter Minimum balance of Rs. 20,000
HBL Debit Card and Inter Branch Transaction System (IBTS) facilities Up to 10 Bankers Cheques free (at minimum balance of Rs. 500,000) Funds transfer to any bank through HBL Phone Banking
4.5.1.3 Current Account y y y y y
Minimum balance of Rs. 5,000 Unlimited transactions Non-profit bearing HBL Debit Card and Inter Branch Transaction System (IBTS) facilities Funds transfer to any bank through HBL Phone Banking
Can be opened with only Rs. 1,000 No minimum balance requirement Up to 2 withdrawals and 2 deposit transactions free every month Unlimited withdrawals through HBL Debit Card Non-profit bearing
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It avails the flexibility of making transactions while earning profit on daily/ monthly basis. HBL is offering five types of accounts in savings account category. Their detail and name is as follows: 1. HBL ValueAccount 2. PLS-SavingsAccount 3. Remittance Munafa plus Saving Account 4. Daily MunafaAccount 5. Daily ProgressiveAccount
7.19%* profit per annum Profit calculated monthly, paid every quarter Deposit ranges from Rs. 10,000 to Rs. 1,000,000 Two withdrawals free every month
5.06% profit per annum Profit paid bi-annually HBL Debit Card and Inter Branch Transaction System (IBTS) facilities Funds transfer to any bank through HBL Phone Banking Minimum balance of Rs. 20,000 Unlimited transactions
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Special account for receiving foreign remittances 5.12%* profit per annum Profit paid every month Minimum balance of Rs. 20,000
Profit calculated daily, paid every month Up to 8.84% profit per annum* HBL Debit Card and Inter Branch Transaction System (IBTS) facilit ies Funds transfer to any bank through HBL Phone Banking Minimum balance of Rs. 20,000
Unique transactional account for Institutions Profit calculated daily, paid every month Up to 11.57% profit per annum Inter Branch Transaction System (IBTS) facility Funds transfer to any bank through HBL Phone Banking Minimum balance of Rs. 20,000
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4.5.2.1 Characteristics y y y
Flexible tenure: 12, 24, 36, 48 or 60 months No processing fee Repayment through easy and affordable monthly installments from salary is major feature of it.
y y y y y
Repayment through easy, affordable monthly installments You determine the need and we help you finance Option of add up replacement for current customers. No salary limit for current customers. 23% or 21% rate for existing users instead of 25%
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4. .
HB l f t t i
ar l an:
l , l t . it t t i t t i i f t. t t i l i
F atures y y y y I
ar l an t t ti i ll ti l an f t f i t l t il l t t i f i . t it . Habib bank li it P f ne ur
% f fi f t
Banking;
Eli i ility
riteria table .
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HBL Zarai Banking enables farmers to invest in premier quality seeds, fertilizers, pesticides, agricultural implements and non -farm setups through its various product programs. IG (2.4)
Crop specific finance for purchase of Agriculture inputs such as seed, fertilizer, pesticide and other related inputs is given.
4.5.4.1.2 arm Implements
Finance is available for purchase of farm implements & machinery like combined harvester, sprayers, ploughs, tube wells and other crop -related tools/implements.
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Finance is available to individual farmers, self -employed tractor operators, providing theoption to select vehicles from a range of different manufacturers.
4.5.4.1.4 Livestock
Finance is available for feed, medicines, raw material, raising charges and other related activities.
4.5.4.1.5 Poultry
Finance
available
for
all
poultry
related
activities
including
poultry
farm
construction/equipment, hatchery plant & machinery, poultry feed, poultry medicines, composite feed production, poultry processing and other related activities.
4.5.4.1.6 ish arming
Finance is available for inland fish f arms as well as deep-sea fishing. It includes procurement of boats, fish locating equipment, nets & ropes, ice maker, fish farm water solution, hatchery construction/equipment, purchase of medicines / feed and other related activities.
Joint finance is facility for a group of farmers with small land holdings for working capital requirement.
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4.5.5 Lockers:
Lockers are available in many branches of the HBL in different sizes like small, medium and large; some branches also have extra large lockers.
4.5.5.1 Eligibility for using lockers
Only the persons who have account in HBL can avail the facility of lockers. The annual rent will be directly debited from t heir respected accounts of customers at the start of the year.
Political instability in Pakistan has very bad influence on HBL business. Nationalization and Privatization has bad effect on HBL business. HBL has to follow the rules of internatio nal trade and international financial institutions
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High inflation rate in Pakistan has bad effect on HBL business. High interest rate discourages the entrepreneur to get loans. Low economic growth Fluctuations in exchange rate has increased the interest rate.
Social factors are favourable for HBL Due to increase in population HBL also increasing its business
HBL is using latest technology to remain in competition Research is conducted continuously Computer technology has been adopted by HBL
4.7
Contribution
of
organization
towards
economic
development of Pakistan
The fast growth and increase in number of customer, which HBL achieve, present it undoubtedly the most efficient and effective in banking sector in Pakistan, and in very less margin of time it has become one of the best banks in Pakistan. Habib Bank Limited is the leading bank in Pakistan. Its head-quartered in Habib Bank Plaza, Karachi, Pakistan. The bank has a net work of over 1468 branches in Pakistan and 40 branches worldwide. It has a great domestic market share of over 40%. It continues to dominate the commercial banking sector with a major market share in inward foreign remittances (55%) and loans to small indu stries, traders and farmers. Habib Bank provides the basic range of banking services to its customers, to include Commercial, Corporate, and Retail Banking, Treasury, and Islamic Banking.
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Honest and ethical con duct, including ethical handling of actual or apparent conflicts of interest between personal and professional relationship.
Always adopting modern banking policies in order to fulfill needs and demands of its customers.
To help in development of the count ry. To provide solutions for multiple requirements of clients of diverse financial nature.
y y y
To manage with the changing trends of the modern day financial market. Always wants to perform well and to serve its customers at best level. To be a diversified bank by offering all basic consumer services along with specialized services.
y y
To provide employment opportunities to people s of Pakistan. The collections of utility bills as almost all the banks in Pakistan are performing this task.
y y
HBL is one of the leading institutions who is promoting sports in Pakistan. HBL is also playing a major role in giving small, medium and long terms loans to the general public.
HBL is also providing employment opportunities in all over country to the young generation.
HBL is also providing Hajj related services to the general pub lic.
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5 Organizational structure
Formal and informal policies and rules, within which an organization arranges its lines of authority and communications, and allocates rights and duties. Organizational structure determines the manner and extent to which roles, power, and responsibilities are delegated, controlled, and how information flows between levels of management. This structure depends entirely on the organization's objective s and the strategy which they have chosen to achieve them.
5.1 Organizational structure of HBL:
At present the Bank operates through one central and 23 Regional Offices and 1439 branches, all over Pakistan. The president and Executives Committee s look after the affairs of the Bank. Each Regional Head Quarter is headed by a Chief Executive and assisted by General Manager Operations and General Manager Support s the Services. The Regional Head Quarter s control the branches in their area s. Overseas operations consist of 66 main branches, two affiliates, two representative offices . President, from Head Office at Karachi controls the officers of the HBL with the help of the senior management in Karachi.
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Hierarchy chart defines line of authority and its heads of departments. Who answer to whom? It specifies the duties and responsibilities.
Chairman
President
Board of directors
S Ps
Chairman:
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Board of Directors:
Mr.Sajid Zahid
Mr.Mushtaq Malik
Mr.Ahmed Jawad
Mr.Sikandar Mustafa
Mr.Moez Jamal
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Mr. Moez Ahamed jamal Mr. Sajid Zahid Mr. Ahmed Jawad
Human Resource Committee:
Mr. Sultan Ali Allana Mr. R. Zakir Mahmood Mr. Sajid Zahid
Mr. Sultan Ali Allana Mr. R. Zakir Mahmood Mr. Mushtaq Malik
Chief inancial Officer:
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Legal Advisor:
HBL is one of the largest banks in Pakistan. It has more than 1400 countrywide branches and also running in abroad. According to a survey on HBL there are approximately 17850 employees working in HBL offices.
HBL has a largest network of branches in Pakistan. It has1439 branches in 25 countries. It 29 regional offices but its main office is in Habib Bank Plaza Karachi.
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HeadOffice
RegisteredOffice
4th
Floor,
Habib
Fax: 051-2872205
branches
of
HBL
over
pakisatan
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By looking at the organizational structure of HBL would be found that the structure at HBL is a critical one. All the decisions are made at the top management level and the subordinates have must obey these decisions. This trend in the decision making shows a pattern of rigidity in structure of this Bank.
5.2.2 Downward Communication
Communication is the process by which information is exchanged and understood by two or more people, usually with the interest to motivate or influence the behavior of others in the organization. Downward communication is the message or information sent from top management to subordinates in a downward direction in any organization. Managers can communicate downward through speeches, massages in company publications, information leaflets, tucked into pay envelops material on bulletin boards, policy and procedure mandates. The same pattern is followed in this organization. No doubt it is a very traditional approach but it can create problems because it ignores the receiver of the communication because the issuer of policies and procedures does not ensure communication s effect. In reality may the messages communicated downward are not understood compeletly.
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5.2.3 Delegation
Delegation is the process, which is used by managers to transfer the authority and responsibility to position below in the hierarchy. Most organizations today prefer managers to delegate authority to the lowest possible level to provide maximum flexibility to meet customer needs and adapts to the environment. But in this Organization no such system prevails the managers try to keep as much of the authority as they can and if some authority is delegated it is sure that it will be misused
The chain of command illustrates the authority structure of HBL. Authority is the formal right of the manger to make decisions, issues orders and allocates resources to achieve organizational desired outcomes. By analyzing the chain of command of Habib bank, one can come to the conclusion that, as there is scalar pattern followed at the organizational setup of HBL therefore it is implied that everyone in his position knows that what is ones authority and what is the responsibility and the authority it allocated.
5.2.5 Chain of Command
The chain of command is an unbroken line of authority that links all persons in an organization and shows who reports to whom. By analyzing the organizational structure it can be found that there is a scalar principle followed with in the Bank because each and every person knows to whom can report. The authority and responsibility for different tasks andduties are different, as well as every one knows the successive levels of management all theway to the top.
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I have done my internship in HBL furniture market branch. This branch was established on 15 December 2008. It is a online branch. Furniture market is an attractive place in Gujrat therefore HBL find an opportunity to open the bra nch. There is only one bank which is doing business in furniture market which is HBL. Total number of Accounts in furniture market is 585 and details of these accounts are as follows: Current Account HBL FreedomAccount HBL ValueAccount PLS- Saving Account HBL MunafaAccount 235 85 76 133 56
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He is the Head of loan and advance department, and I get complete knowledge of loan policies of HBL from him.
Mr.Usman Asrar (Operational Manager)
He is the head of Clearing and remittances department, and he gave me the knowledge about the clearing a nd remittances activities of bank.
Mr.Khizar Hayat
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Clearing department Credit department Cash department Accounts opening Remittances department
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Supervisor:
Signature:
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Supervisor:
Signature:
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Supervisor:
Signature:
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Supervisor:
Signature:
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Supervisor:
Signature:
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Supervisor:
Signature:
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specifications of the different regular customers. I learnt about relationship and communication with the customers. I learnt how a potential customer can be make a regular customer. I learnt about the registers in which record of customers has been maintained how these registers are updated. I worked to communicate the customers whole day
Supervisor:
Signature:
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Supervisor:
Signature:
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Account opening is an agreement in which customer offers his funds and bank accepts these funds, therefore the nature of relation between a banker and customer is of a contractual one and all the conditions applicable to this contract act are also applicable. In this department first of all dealing with potential customers is conducted. Here the rules and regulations and benefits of the specific accounts are told to the customers. In this department following jobs are done:
y y y y y y y
Accounts opening forms are filled. Requirements for accounts are collected and saved. A record is maintained in manual registers. Specimen of signature is saved for security purposes. Chequebook is issued and record is maintained. Customers are facilitated. The cheques of customers are filled. Benefits of different accounts are told to the customers.
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y y
The customer fills the pay slip. The cashier receives the pay slip and cash. He counts the cash and makes the detail of the notes at the back of the pay slip. Then he compares the detail with amount written on slip and signs the pay Slip. Then he credits the entries in the computer by serial No, account type, Account number and amount. Puts the stamp of the cash Received on the payment slip. The first portion is for bank record while other one is gi ven to the customer.
6.3.2.2 Cash payments procedure:
When a customer comes to withdraw a certain amount from his account, he brings a Cheque along with him. In this case the following steps are taken. The cashier receives the cheque and checks it whether it is postdated or predated. Cheque can be cashed within six months. A predated cheque cannot be cashed. He takes two signatures at the back of the cheque from the bearer. He gives the cheque for posting at the computer. The computer checks out whether the re is balance in the account or not. Other instructions are also received e.g. blocked, frozen, Etc. the posting is done in the computer and the cheque is stamped posted with the serial number and date. He gives the cash to bearer and the respected account is debited.
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Another function of the cash department is of online transfer of funds. Customer has given filled remittances form with cash or without cash (from account transfer) to the cashier in cash department who will then credits the beneficiary account.
6.3.3.2 Procedure of issuance of Demand Draft (DD):
DD is issued in favor of the receiver of the money on the behalf of sender to a specific bank. A DD form is filled and there is a place for the signature of two witnesses on the DD form. And those witnesses have a code on codebook of HBL. It makes the secrecy of DD. Bank stamps are used to identify the branch which is issuing the DD.
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6.3.4.1 Types of Advances which were offered by the branch in which I worked:
Loans to the farmers with holding up to 25 acres for meeting their short terms, medium and long terms Agricultural production requirements, such as:
y y y
Running finance (old name overdrafts) are advances, which are generally, given to meet temporary requirements of the customers. A good customer use the banks running finance limit as a mean of protecting his credit in the market and as a line of security defense to meet his commitments.
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Demand Finances are those advances which are allowed in lump sum for a fixed period and are repayable lump sum or gradually in installments.
The cheques from the customers are collected with filling of deposit slip. If the cheque is local or out of local are a different forms are filled and different stamps are used then these cheques are hand over to NIFT. Now it is the duty of NIFT to clear the cheque the stamp which is used for clearing the cheque used the next date.
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7. Summary of learning:
It was my first experience of working in any organization. I choose HBL for my internship it is the most reputable organization in Pakistan. So come to the point I learnt so much and enjoyed the working in HBL. I improve my communication skills while working in customer relation department. In my internship I came to how the bookish knowledge can be applied in practical field. It was chance for me to learn. For my learning purpose I did my internship of eight weeks instead of six weeks.
7.1 Skills and qualifications which I le arned during internship:
During my internship I learned many skills and qualification which can help me in my future life. I think internship is not only necessary for business students it is also necessary for all students which are studying in other sciences. During internship you can check the application of knowledge you are getting. I think I learned the following skills and qualifications from internship. 1. I got experience of working in banking sector. 2. I got experience of working in corporate worki ng environment. 3. I got knowledge about clearing department, remittances department, and loans department. 4. I got knowledge about different types of accounts and account opening forms; I got knowledge about cash receipts and cash payments. 5. I improve my communication skills while working in customer dealing department. 6. I learned the habit of working for long hours. 7. I got experience of software used by HBL. How to operate it? The name of software is MISYS. 8. I built my confidence level through internship. 9. I learned the sense of responsibility from interenship. 10. This internship help me to know about the behavior of other people e. g customers. 11. This help me to choose my area of interest in future studies and working.
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12. I came to know about the work place environment thr ough internship. 13. I leant how to behave as an employee of any organization. 14. I learnt the ethics and values from my supervisors. 15. I learnt the latest IT software related to bank.
7.2 Responsibilities I have taken during internship:
During my internship in HBL furniture market Gujrat branch I have been given many types of responsibilities which I have done very carefully. Many tasks were given me alone to do. I worked hard to do them. Through my internship I came to know about the true meanings of responsibilit ies. From the responsibilities given to me I learned how to work under the supervision of any person. Following are some responsibilities which were given to me during internship.
y y y y
I filled the account opening forms in account opening department. Vouchers were given to me for tally with to records updated. I collected utility bills and posted them. I was given chance to communicating the customer in customer relation department.
y y y y y y y
Online fund transfer form DD issuance forms were given to me for fulfill. I maintain the records of customers in manual registers. I was given chances to use the HBL software. I posted the utility bills on that software. I filled the deposit slips and different types of vouchers. I was given a task to stamping the clearing cheques . I was given a task to counting the currency notes of Rs. 5 and Rs. 10.
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Working for eight weeks in HBL furniture market branch as an interne e was very informative experience for me. During the time I learnt many new things which are surely going to help me in my future professional career. It was a good experience for me to observe and to be the part of practi cal working of a reputable organization like HBL. During the internship I got a chan ce to understand general consumers behavior and his needs and wants related to banking services and products. It will help me in future for getting a job as an experience. Through internship I came to know that bookish knowledge is not enough for a bright future we should get experience or learn the application of our classroom knowledge. It will help me as customer of bank. Through my internship I got habit of working for long hours which will definitely help me in future. Working as an internee in custom er relation department I improved my communication skills which will help me in society. I got a habit of casual dressing from internship. I learnt how to behave as a employee in any organization which will help me in that organization in which I will work in future. I got a lot of knowledge from internship which will definitely help me in future. I got knowledge about the working in any bank so it will help me choosing the job in bank is better or not. I learnt the ethics from internship which will help me in future life.
7.4 Internship activity and classroom knowledge:
By working in any organization I came to know that the practical working is totally different from the classroom knowledge. In classroom we have been taught only the previous searches and knowledge but in practically field it is there is lot of competition you would have to run fast to reach your destination. There was application of accounting rules of Dr and Cr which was same like book. But other things I started to learn from zero. The benefit of classroom study is that after getting training in any organization in any field you people be able to apply the bookish knowledge. From the start we cant do every thing efficiently. From internship I came to know that only
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bookish knowledge or classroom study is not enough for any job experience is most necessary thing which can be get only by practical. So there should be the practical of classroom study in the institution. Classroom study is a base for a person to making the decisions because it has been merged in mind and become a part of our mind. It help us in any phenomena in which we are working.
8. Conclusion:
Any thing is not perfect in this world. There are some faults in every thing and there are some good points of every thing. HBL is good reputable organization. Their working environment is very good looking and they are giving many services to the
customers. HBL is enjoying a growing market share due to this it has received a award for emerging markets in Pakistan. The people who prefer the qualitative approach they use the HBL. In this world of competition there are many private banks HBL has its own place. The main problem HBL is that there are many hidden bank charges on each account and transactions. For example on the same day cheque clearing it receives 650 rupees. It deducts Rs. 5 per instrument of chequebook. It receives 350 rupees from online fund transfer from those persons who are not accountholder of HBL. If they give proper attention on each and every account holder HBL can become the powerful bank of Pakistan.
8.1 General observations about the sector:
The banking business is very profitable b usiness. The mark up of different banks is very high. In Pakistan there is lot of chance of corruption in this sector. Specially in public sector banks every day there is scandal of banking sector. Job in this sector is very good but there is a problem of timings no doubt there is a good salary package for employees in this sector but the working for long hours is not favor of employees. There is a social life of every person but the people working in banks forget there social lives and work for long hours. Due to less job opportunities in Pakistan people are craze for working in banks.
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SWOT analysis is knowing about the core values, weaknesses, opportunities and threats of other companies in that sectors. After the detail study of H BL I come to know about strength, weakness, opportunities and threats of HBL which is given below.
8.2.1 STRENGTHS
Strength can be defined as an area where a company is best at doing something or a feature that puts the company at an advantage in comparis on to its competitors. HBL enjoys the following strengths:
y
HABIB BANK is a well-established bank enjoying long history of over 65 years of experience and profitable operation.
y y y
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 its privatization. During this process more than 1,600 employees were relieved under a golden handshake scheme and 110 branches were closed.
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.
HBL has the ability to bring innovative products and services like personalized service, electronic funds Transfer, sophisticated financial products such as electronic banking, auto -teller machines and evening banking.
The Banks Rupee Traveler Cheques have been market leaders for the past six years.
y y y
HBLs car to car financing scheme is unique in auto loan segment. HBL is an internationally recognized name in banking services and products. HBL has forged strategic alliances with international banks for expanding its network further, both locally and internationally.
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8.2.2 WEAKNESSES:
A weakness is defined as an area in an organization where the organization is not as good at doing something as its competitors or a thing which an organization lacks thus putting the organization at disadvantage in comparison to its competitors. Based on the above definition, HBL has the following weaknesses.
y
Lack of communication between bank and customers about terms and condition of products and services. Like centralization of cheque book issuing process.
Employees at branch level are not properly motivated to work by heart. They take the all routine activities as a boring job.
Most of the employees lack managerial training as they are not properly educated. Due to seniority, they have moved up on the hierarchy line to GradeI, II or III positions having hardly bachelor degrees. This type of senior staff cannot apply the modern and innovative techniques of management in decision making.
Though HBL is second largest bank in Pakistan, yet the fact remains that it is not market leader as NBP. Its total assets are always less than NBP total assets.
Now as it is a privatize bank that is why governament support to HBL decreased as it was in past
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8.2.3 OPPORTUNITIES:
An opportunity can be defined as a change in external environment which if properly exploited with the organizational strengths will result in enhanced sales, market share, or income. Using its strengths, HBL can avail the foll owing opportunities. Opportunities require explanation therefore I have used headings instead of arrows
y E-Banking
Generally speaking, three factors, quickness, easiness and cheapness have become the catchwords for the competitiveness and usefulness of all the business operations. Particularly it is commonplace today to say that banking is undergoing a radical transformation. The symptoms are new products, new players, new channels etc. This transformation is taking place across all sectors of the banking industry. That is why Habib bank urgently needs to improve their ability, to think strategically about IT investments. Only those banks that use their technology resources effectively have the opportunity to secure real competitive advantage in this fast -changing industry through real product or service differentiation.
y High Markup Rates
Of late markup rates have increased considerably. Present rates are 4% above KIBOR i.e. 16% appx. High markup rate has decreased the interest of people in loaning from banks. Habib bank can increase its income by offering loan at lower interest rate than other banks.
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Online Banking
It is doing banking transactions through our home P.C. The banks that do business through net have Websites. The customer clicks into the Website and gets the history of the bank. Then he can demand the necessary application form through the net. He fills in the form and passes it on to the bank. The Online banking is fast gaining ground in Pakistan. Some software companies are also offerin g network-banking facilities. So Habib bank should focus heavily on providing online banking faculties to its customers. Currently it is doing the same.
y Corporate Banking Terminal (CBT)
Large corporate customers can log into the bank's database and have a ccess to their accounts/transactions from their business houses. This facility has still not been started for customers in Pakistan. So HBL can focus on that.
This system is known as "Any Time Money" because it allows custom ers who have an ATM card to withdraw money at any time from the bank without interacting with human teller. Since the ATM machine can be installed anywhere like petrol bunks, markets, railway stations etc, and can well be linked to the main computer. It al lows customers to transact with the bank 24 hours a day and 365 days a year. They allow the customers to transfer money to and from accounts to view account information, to receive cash. It can also be used to deposit cheques and cash into the accounts. No bank in Pakistan is offering this service currently. So an opportunity exists for HBL to differentiate.
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Rate of return
The range and choice of products available & offered by the commercial banks is limited. Rates of Return / Profits on Deposits are so low and unattractive that very limited options are available to the depositors. They do not match the current rate of inflation. HBL differentiate and increase its deposit by offering attractive rate of return on deposits.
8.2.4 THREATS: y
Threat can be defined as a change in external environment which if not met with proper strategies will result in loss of revenues, market share, or income. In the context of HBLs external environment, the following potential threats exist:
Other private commercial bank with sound profitability is also a threat to HBL e.g. UBL, ALFALAH, MCB etc.
The Rupee Travelers Cheque (RTC) sales volumes may be affected on account of regulatory restriction imposed by SBP on issuance of large value denominations.
For the last of 2 to 3 years, Pakistan is facing economic and political instability which is a big threat.
y y
Foreign banks are flourishing in field of consumer financing. Increased regulations from State Bank of Pakistan may affect its business.
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9. RECOMENDATIONS
As we seen from the previous analysis of the financial statements I have realized that that Habib Bank is performing very well since its inception. It is quite difficult to give suggestion to improve the banking conditions Habib Bank Limited. As we know th at nothing is perfect, there is always a room for improvement, so I will recommend following suggestions for HBL:
y
Employees Training programs must be introduced on continuous basis so that Employees have understanding with the latest developments especially with the customers.
Bank should introduced incentive plans for employees on regular basis so that if employees may work whole heartedly for the welfare of their organization. While giving incentives
qualification, work, experience, hard work and such other factors must be considered.
y
Mismanagement of resources must be avoided as much as possible as it decreases profit but also discourage hard worker and honest employees.
As the combination of
Experienced and fresh can produce better results and it will improve the efficiency of management.
y
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 p rogram must be launched for clients awareness.
Banks different schemes must be conveyed 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.
y y
Online Banking should be introduced in all the branches . To motivate the employees their remuneration / sala ries should
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Aggressive publicity campaign must be introduced through press and Electronic media for new products and scheme by initiating vigorous marketing policy.
Bank should adopt such an induction plan that when a customer opens his account with the bank he should be supplied with a booklet which enables him to know the procedure of filing the cheques, pay-in-slip etc. It will save a lot of time of the bank staff afterward during the conduct of the account of that customer.
The attitude of the bankers with all of their customers is not the same; they pay more attention and good service to some of the customers and neglect a major portion of them. Some of the customers approach to the bank officials and get their work done before others; it is not a good practice. All the customers should be treated equally.
HBL should increase its communication with customers about the terms and conditions of its different products and services.
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10. References:
I got help in preparation of this report from following books and websites:
10.1 Books:
10.2 Websites:
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