Khalil Ullah - Report Final

HBL 2010
Executive Summary
I have completed my 6 weeks internship in HABIB BANK LIMITED. I tried my best to gain something practically from this opportunity. This report starts from the introduction of word Banking, and then History of HABIB BANK LIMITED. History of HBL shows that how it helps its Nation and Country in both war & peace. the first Pakistani bank .Bank Mission statement & Vision shows its focus on overall performance of the bank and quality of services and products. After restructuring of the bank the objectives of the bank are changed. Now it has objectives to overcome past mistakes, realize the real importance of customer so now it has main objective to achieve customization. A commercial bank has basic functions that are must be performed by them as a bank i.e. 1. Accept money as deposits. 2. Investing deposits to earn profit. 3. Miscellaneous functions. Each branch of the bank is divided on the basis of these functions into different sections. Deposit section opens different accounts of clients and maintains record of deposited money from the customer & credited it into his account. It also maintains record of payment to the customer when he presents cheque. Advances section deals the customers who demand loans against required security. Remittance & collection section deals customers who want to transfer or collect their money from/to other city. Bank also provides facility of L.C to support export and import in the region.Flexi is the new product of Habib bank for the employees. All branches are now interconnected with head office through internet.Total numbers of branches are 1473 and number of employees are 16625.Bank shows improvement after the privatization.
Department of Management Sciences - IUB
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Simex system is very good but misused by staff due not proper training.SWOT analysis of Habib Bank shows that it has small number of strengths and lot of weaknesses and threats. The bank should give attention to this drawback. But bank has lot of opportunities to improve its quality of services, and do efficient banking. Bank should give proper attention to overcome its threats.Banks profit has been increased as compared to previous years.
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INTRODUCTION OF THE ORGANIZATION
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COMPANY INTRODUCTION
COMPANY DESCRIPTION: Habib Bank Limited is a Banking Company, which is engaged in Commercial & Retail banking and related services domestically and overseas. WHAT IS BANKING COMPANY? Section 5 of banking ordinance 1962 says that Banker means a person transacting business of transacting the business of accepting, for the purpose of lending or investment of deposits and withdrawals by Cheques, drafts, orders of other wise and include any post office saving bank. COMMERCIAL BANKING: Commercial banks are profit seeking organization. They have been the most effectively mobilize the savings and have been providing short-term requirements of businesses. They help in internal and external trade of the country.
FUNCTIONS OF COMMERCIAL BANKS:

Today there are more than 7000 branches of commercial banks along with an established network of supplementary financial institutions. The function of a modern commercial bank can be divided under the four headings as: I. II. III. IV. Accepting of deposits. Advancing of loans. Agency service. General utility service. 4
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ACCEPTING DEPOSITS: The primary function of a bank is to receive surplus balances from individuals, firms, public institutions and government etc and honor Cheques drawn upon it. Three types of deposits are Current or demand deposits Saving deposits Fixed or term deposits
ADVANCING OF LOANS: The most important function is to provide loans to individuals, firms, business concerns and government bodies against securities to meet their financial needs at a fixed percentage of interest. these are some kinds of loans: Loan to business Loan to real estate mortgage Consumer loan Loan for purchasing security Loan to agriculture Bank investment for security
AGENCY SERVICES: The commercial bank provides following agency services to its customer Collection and payment of Cheques Collection of dividend Purchase of securities
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Execution of standing orders Acting as trustee or executer Make transfer of funds Act as an agent
GENERAL UTILITY SERVICES Commercial bank performs general utility services as follows Foreign exchange business Act as referee Accepting of bills for collection Issuer of travelers Cheques Supplier of trade information
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HISTORICAL PERSPECTIVE
History of the Company: Habib Bank Limited was incorporated on 25th August 1941 by ISMAIL HABIB (LATE). Habib Bank inaugurated its operations with the banks first branch in Bombay. It was the first Muslim bank of the sub continent. It was established with a paid up capital of Rs.2500, 000. At an early stage the number of branches was only 12. In 1947 Karachi saw its first commercial bank of the newly formed Islamic Republic of Pakistan, when the bank shifted its head office there. And build the largest private sector bank that controlled an estimated 27% of total bank deposits in the country and hand over 500 branches including many overseas. Although primary functions were banking and finance, but it moved to industry by the late 1950s and developed interest in sugar, jute and textile. HABIB BANK operated in the private sector until its nationalization in 1974 under the Bank Nationalization Act 1974. Thus the holding of Habib group was lost. Throughout the decades, HBL has held the mantle of a dynamic leader, by adding value to the lives of its customers. HBL has been approved for privatization and the privatization commission has selected a Financial Advisor to prepare a comprehensive plan and assist in the sale process. The government has appointed a professional management team to restructure the bank and to recover and clean its doubtful and classified portfolio. Department of Management Sciences - IUB 7
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It was HBL that introduced products such as Credit Cards, ATMs, Travelers Cheques, etc., to the Pakistani market. We at Habib Bank cater to the needs of millions with our quality products & services.
Todays HABIB BANK: Today Habib Bank is truly the bank of the people, providing its customers convenience and satisfaction all over the world. Habib Bank Plaza, the tallest building in Pakistan, is the proud symbol of HBLs leadership in Pakistans corporate arena. Today, HBL has more than 1473 branches all over Pakistan and presence in 26 countries across five continents. With a revamped customer oriented philosophy, we are pursuing new avenues of leadership through innovation, as it gear up to face the challenges of the new millennium.
Operational Structure:
Habib Bank Limited is one of the largest commercial bank of Pakistan. It accounts for a substantial share (20%) of the total commercial banking market in Pakistan with a network of 1473 domestic branches; 55 overseas branches in 26 countries spread over Europe, the Middle East, Far East, Asia, Africa and the United States; 3 HBL wholly owned Subsidiaries namely Habib Bank Financial Services (PVT) LTD. Karachi, Habib Finance International LTD. (Hong Kong) and Habib Finance Australia Ltd. Sydney; 2 Joint Ventures namely Habib Nigeria Bank Ltd. (40%) and Himalayan Bank Ltd. (20%) and 2 representative offices in Iran and Egypt.
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COMPANY INFORMATION
REGISTERED OFFICE: Habib Bank Limited Habib Bank Plaza 1-1Chundrigar Road Karachi - 75650 Pakistan HEAD OFFICE: Habib Bank Plaza 1-1Chundrigar Road Karachi - 75650 Pakistan Phones: 2418000(50 lines) Fax: 2411647 Telex: 20086-20751 HBANK-PK AUDITORS: TASEER HADI KHALID & Co. Chartered Accountants Sh. Sultan Trust Building No. 2 Beaumont Road Karachi 75530 Pakistan A.F. Ferguson & Co. Chartered Accountants State Life building 1-C Department of Management Sciences - IUB 9
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1.1 Chundrigar Road Karachi Pakistan
BOARD OF DIRECTORS
ZAKIR MEHMOOD SULTAN ALI ALLANA SAJID ZAHID AHMED JAWAD SIKANDAR MUSTAFA KHAN MUSHTAQ MALIK MOEZ JAMAL
PRESIDENT & CHIEF EXECUTIVE CHAIRMAIN DIRECTOR DIRECTOR DIRECTOR DIRECTOR DIRECTOR
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MANAGEMENT
NAME
Zakir Mehmood Sohail Malik Jamail Iqbal
DESIGNATION
President & Chief Executive Chief Risk Officer Chief Compliance Officer Global Compliance
Sima kamil
Head Corporate and Investment Banking
Ayaz Ahmad Financial officer Nauman K. Dar Abid Sattar Banking Mudassir H. Khan Department of Management Sciences - IUB
Chief Information &
Head-International Banking Head-Retail & Consumer
Head-Global Operations 11
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Faizan Ali Mitha Salim Amlani Aslam Gadit Mirza Saleem Baig Global Treasurer Chief Internal Auditor Head-Remedial Assets Head-Learning & Development
Tulu Islam
GM-Business Continuity Planning
Muhammad Aslam
Head-Islamic Banking
Dr. Razi Azmat
Head-Human Resources
Abdur Rashid Awan
Business Head-Semi Urban Areas
Aman Aziz Siddiqui
RGM-GULF (UAE, OMAN)
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MISSION, VISION STATMENT AND OBJECTIVES
MISSION STATMENT
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The main logo of the bank shows a picture of a lion with a sword on the top on the up most Portion BISMILLAH is written to show the supremely of God and the symbol of lion shows the Quality of leadership that lies with the bank. The reason for the statement the power to Lead.
As the bank has entered the new millennium, it wishes to appear as a bank that is
LEADING LOCALLY AND GROWING GLOBALLY
MISSION STATEMENT OF HABIB BANK IS TO MAKE

Habib bank the dominate financial institution in Pakistan and a leading bank of the Middle East and South Asia regions
Vision Statement
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Enabling people to advance with confidence and success Our vision is to be the frontline financial institution of the country, with specific financial markets to gain a competitive advantage with complete banking products. Our focus is on improving performance in each of our businesses to achieve consistent and superior returns for our highly valued clients and stakeholders.
OBJECTIVES:
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The bank main aims to provide better and efficient services to its Domestic and overseas customer .regarding the need for improving the financial Performance of the company, following objective have been chalked out.
To take necessary steps to plug the leakages of revenue and expenses.
To insure internationally accepted accounting standard are followed by the bank
To correct the structural flaws in the balance sheet
To put greater focus on neglected sectors to correct sectored imbalances in the loan portfolio.
To achieve those objectives necessary steps have been taken by the management loss making branches have been closed or merged.
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MARKETING OBJECTIVE:
To devolved country specific business revitalization strategies for important franchise to improve overseas operations. To develop more branded proudest in saving deposits and consumer assets. To increased the ATM network to further improve the banks market shears. To establish sound relationship with top industrial groups and various multinationals. To make the bank customer focused. To launch innovative product as which cater to the needs of different segments of the markets. To increased the number of
ON LINE branches
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HRM OBJECTIVES:
To provide extensive training to employees in process ,products, marketing and selling skills introduced. Upgrading skills levels of staff. To implement a performance appraisal process to provide motivation and a merit oriented culture in the bank.
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DEPARTMENTAL LEVEL STRATEGEIS
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1. Strategies of Marketing Department
More branded products should be launched in saving deposits and consumer assets. ATM network should further be increased to up the market share.. To establish sound relationship with top industrial groups and various multinationals. Customer should be given more importance. To launch innovative product as which cater to the needs of different segments of the markets? To devolved country specific business revitalization strategies for important franchise to improve overseas operations. ONLINE branches should be increased more and more.
2. Strategies of HRM Department

To implement a performance appraisal process to provide motivation and a merit oriented culture in the bank. To provide extensive training to employees in process, products, marketing and selling skills introduced. Department of Management Sciences - IUB 21
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Upgrading skills levels of staff.
ORGANIZATIONAL STRUCTURE
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ORGANIZATIONAL STRUCTURE Ownership Structure
Shareholder State Bank of Pakistan Islamic Republic of Pakistan Agha khan foundation for economic development State Life Insurance Corp. of Pakistan Other Public Bodies Outstanding Shares (1,217,849,500) Percentage (%) 73.047 0.783 26.00 0.138 0.05 100
ORGOGRAME
PRESIDENT SENIOR EXECUTIVE VICE - PRESIDENT VICE- PRESIDENT VICE- PRESIDENT ASSISSTANT VOICE PRESIDENT OFFICER GRADE I
OFFICERR GRADE
OFFICER GRADE III
CASHIER
CLERCK
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VARIOUS DIVISION AND DEAPARTMENTS OF THE BANK
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DOMESTIC OPERATIONS
For facilitation of domestic operations the retail banking group and the corporate institution banking group is divided in to several distinct regions, centers and sub centers comprising of
23 Regional Headquaters 20 corporate centers 1473 branches
OVERSEAS OPERATIONS
For the facilitation of the overseas operations the bank has 55Branches 02 affiliations 01 Representative office 02 subsidiaries
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ACTIVITIES/DEPARTMENTS OF BANK
The main departments of a bank are as follow;
1. Deposit department 2. Accounts department 3. Advances department 4. Clearing department 5. Bills and remittances department
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1) Deposit Department
The function of deposit department is to collect cash from the customers and to deposit it into the accounts, maintained by them. Their classification is based onduration and purpose for which the account is maintained. The following typs of accounts are maintained for this purpose. a) Current account b) Saving account c) Fixed account A. Current account A current account is a running account is a running account which is countiniously in operation, by the customers on all working days of the bank. The customers can withdraw the amount from the bank without prior notice. The bank usually donot pay any interest on these deposits as they can withdraw without notice. These accounts are operated normally by the traders, business companies, institutions, public service bodies, industrialists etc. Summing up, the current account does not earn but serves the cause of industry, trade and commerce. B. Saving deposits account This type of account is for those persons who want to make small savings. The depositors are allowed to withdraw a limited amount of money for twice a week. The banks will keep a minimum account and the balance be safely utilized forinvestment by the bank. The bank pays interst on saving bank accounts according to the prescribed rates by the centeral bank of the country.
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C. PLS saving account In pakistan (PLS) saving account was introduced in January ,1982. The bank has full right to investment of credit balances /deposits in the PLS saving account The statments of accounts willbe supplied on periodical intervals. The following informations are required to be furnished 1. 2. 3. 4. 5. Name occupation and full address Specimen signature Introductory refrences Declaration that he will follow them
D. Fixed or time deposit Fixed or time deposit are the major source of funds of a commercial bank. The rate of interest on fixed deposits is higher them that of saving deposits and it varies with time to time. The longer the period for which the amount is kept higher is rate of interest. The fixed deposit receipt (FDR) is marked as not negotiated. The holder of time deposit account cannot issue cheque for the withdrawl of the amount. E. Joint account A joint account is a special bank account which is opened in the name of two or more persons. For drawing amount all persons whose name the account stands should sign the cheque.In case of firms or companies a/c following are the requirement To open the account of firms or companies the following are the essentials. List of the office bearers. List of authorized signatures. Department of Management Sciences - IUB Copy of memorandum or by laws. Copy of registration. 30
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In case of joint stock companies. Certificate of incorporation. Certificate of commencement of business. Beside NIC copies.
2. Cash Department
The cash department is the most important department of the bank. It receives cash from customers and then deposit it into the accounts of the customers and maintained their balances. In cash department following books are maintained.. a.Cashier module (online branch) b.Paying cash book Cashier module (Online Branch): When cash is received at the counter it is recorded in the computer. Journal Report Of Cashier (JRC) All receipt and payment report of cashier.
Paying cash book: The cashier makes entry in the paying cash book when cash is paid is allowed only in current account. The overdraft facility enables a customer to draw over and above his own balances up to the extent of limit as agreed. The bank does not provide the facility of overdraw on checking accounts to all of its customers
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3. Accounts Department
There are two ways of maintaining an accounts Journal System Under this system entries are journalized in journal book and then posted in ledger account. Their entries are maintained in journals. Voucher system In voucher system for each transaction voucher is prepared, either in cash or in transfer or in clearing all vouchers are summarized to the one consolidated figure and are recorded in cash cum- daybook sheet upon which vouchers are summarized according to the transition wise suit is called supplementary. These are of 2 types. Debit supplementary Credit supplementary Debit supplementary is for debit vouchers and it is of red color Credit supplementary is for credit vouchers and it is of green color.
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The following books are maintained in accounts department. 1) Cash cum day book. 2) General ledger. 3) Subsidiary ledger. 4) Voucher register. 5) Transfer book. 6) CD/SB summery book. 7) Balance books.(Weekly and monthly) 8) Old record register. 9) Bank ledger. 10) Fraud and forgeries register. 11) Comparative statistics cards of deposits. 12) Advances and profit and loss.
The individual figure of subsidiaries will be posted straight to subsidiary ledger from individual vouchers. Why Account is Open.
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It is not safe for private individual to keep their surplus money at home. They can keep their money in safe custody by opening accounts in a bank. They can open deposit accounts for fixed period. The deposit account also earns interest for the depositors. Again the businessman conducts transaction is for thousands of rupees daily. It is unsafe to keep so much cash in hand for carrying on business transactions. They may put their money with some banks by opening deposit accounts. Now they can draw cheques for settlement of transactions without involving cash.
Procedure of Opening of an Account: There are certain formalities which are to be observed for opening of a current account or saving a/c. With a bank, these formalities are as; 1) Request of opening of an account. 2) Obtaining introduction 3) Specimen signatures 4) Minimum initial deposit 5) Operating the account / cheque book 1) Request of opening of an account.
The customer has to fill an account opening form. It is a formal request by a customer to the bank to allow him to have and operate the current or saving account.
2)
Obtaining introduction.
The bank before opening an account obtains introduction of the customers from an old customer, responsible person etc.
3)
Specimen signatures.
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When the banker satisfied about the informations provided in the form hen the banker obtains the specimen signatures of the customer on the signature book or on card. The duty of a banker is to verify customers signature on the cheques with his specimen signature in order to ascertain whether there has been any forgery or fraud.
4)
Minimum initial deposit.
In Pakistan to open up an account in the PLS account is up to Rs.1000/- it is the minimum requirement. However the account of zakat dependent can be opened by Rs. 200
5)
Operating the account./ cheque book.
When the account is operated the banker gives a pay-in-slip book, cheque. Book, pass book with the view to operate it. Books relating to customers. Pay-in-slip Cheque book Pass book
Pay-in-slip When money is to be deposited in the bank the pay-in-slip is to be filled, the object of this book is to provide the customers with the banks acknowledgment for receipt of money to be credited his account. Cheques book. A cheque book contains a number of cheques which is given to a customer upon written request and after making payment for the Department of Management Sciences - IUB 35
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cheque book. It enables to a customer to make withdrawals from his account. Pass book. Is a copy of customers account as it appears in the books of the bank. Pass book is a book in which the banker maintain the record of its customers account for later use. This because it passes hand periodically between the banker and the customers. On delivery of pass book the customer examine the debit and credit eateries with its cheque book and bank receipt challans. But now a days this concept of pass book is ended and computerized account statement send to the customer semi annually or on the demand of customer bank is bounded to give him the account statement.
4. Advances Department
The function of advances department is to lend money in the form of clean advances. Against promissory notes, as well as secured advances against tangible and marketable securities. The bankers prefer the securities which are free of risk of depreciation. Deposits lead to advances and advances create deposits. Advances to a variety of customers are the sure method of enhancing income and promoting expansion of a bank. Types of advances: The main types of advances are as follow. 1). 3). Overdraft. Loans. 36
2). Cash credit. Department of Management Sciences - IUB
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1) Overdraft.
An overdraft is the right given by a bank to his customer to draw in excess of his current account up to a fixed limit. .The facility to overdraw by cheques is allowed only in current account. The overdraft facility enables a customer to draw over and above his own balances up to the extent of limit as agreed. The bank does not provide the facility of overdraw on checking accounts to all of its customers. A. Clean overdraft. Advances for which the bank no security except the personal security.
B. Secured overdraft.
Advances for which bank has security other than his personal security. Against ien on third party account. Against immovable property, equitable mortgage collateral.
C. Cash finance.
Cash finance may be allowed within discretionary powers of the branch managers to first credit worthiness, overall maintained in their account. class parties keeping in view their business and average balance
2) Cash Credit
A cash credit is an arrangement by which a banker allows a customer to borrow money up to certain extent cash credits are usually made against securities of commodities hypothecated or pledged with the bank. Pledge:
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Pledge is a contract whereby a good is deposited with the lender as security for repayment of the loan. The delivery of documents of title relating to goods also create a valid pledge. The person delivering the goods as security is called pledger. The person to whome the goods is delivered is called the pledgee. Hypothecation: It is a legal transaction where by goods may be made available as security for a debt without transfering property or the possession to the lender. Advances granted under hypothecation are not secure from safety point of view. The bank should make sure that the party has a good reputation, which property regularly.
3) Loans
Banks may make advances to its customers which may be payable in lump sum or in installments. Loans may be. A) Clean Loans This is granted to borrowers without obtaining any security. Example flexi loan B) Secured loans. Loans for which bank has security other then its personal security. These are issued against the pledge, hypothecation, property and cash etc. C) Small loans. These are the loans which are sanctioned for small size projects. The loans may be call loans or loans repayable at short notice. These are the loans repayable which bear no maturity date. They can be paid at anytime. These are normally secured by other assets. Department of Management Sciences - IUB 38
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The other kind of loan is loans repayable at short notice; these are short term loans and are repayable at short notice. These are widely used in the financing of seasonal increase in the working capital and the temporary are financing by of capital expenditure these loans obtained manufacturing
concerns to meet the financing of working capital expenditure. D)
Flexi loan
A special scheme of Habib bank limited for the employee of govt. and semi govt. institute. This is a clean loan no any security has been taken from the employees of the organization. Just salary of the employee is transferred in the account of the client
Basic requirements for the flexi loan

He must be employee of listed organization He must be account holder of the bank His salary is transferred in his account His job at least one year His retirement period is grater then the period of loan
Document required for flexi loan

Letter from employer His last month salary slip His account statement 60 post dated cheques
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Promissory notes
Rate of mark up on flexi loan

The rate of mark up is 25%(fresh case) Other 20% to 21
5. Clearing Department
Clearing house is the place where representative, of all banks get together for the purpose of offsetting the interbank indebtedness arising from the transfer of deposit by a customer of a particular bank to another bank Clearing settlement is made by debiting or crediting the bankers accounts, the daily difference in the clearing between banks may considerable and much differences are adjusted by mean of debit and credit entries in the respective accounts with is SBP, by book entries.
Functions of clearing Department:

The following are the main function of clearing department 1) To accept transfer delivery and clearing cheques from customer of the bank and to arrange for their collection.
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2) To arrange the payment of cheque drawn on branch and given for collection to any other branch of HBL or any other member or sub member of the local clearing house. 3) To collect amount of cheque drawn on members, sub members of the local clearing house, sent for collection by thouse HBL branches which are not represented at the local clearing house.
Procedure of Clearing at Clearing House:

The mechanism of offsetting inters bank indebtedness operators as follows; Clerk representing various banks met at a common plane, the clearing every day. Every clerk then delivers to the others the cheques and other claims which his bank holds against them. So he also receives from the others the claims which their respective banks hold against his bank. Cheques and other documents dishonored will be returned to the representative of the respective bank. The various amounts of receipts and deliveries are now added up an balance is struck therein and the final settlement is effected banks. by the supervisor of the clearing house by transferring balances kept at the central bank the these various clearing
6. Bills and Remittances department

The main function of bills and remittances department is to deal mainly in following. A. Outward bills for collection (OBC) B. Inward bill for collection(IBC)
Procedure of clearing at clearing house A. Outward bill for collection

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1. Clean Bills These are negotiable instruments drawn on out station branches of the bank, sent for collection on behalf of the customers i.e. cheques drafts etc. 2. Documentary Bills These are bills accompanied by documents such as R.R, T.R bill of lading etc having title, collected on behalf of their customers. if payment is made other than cheques then this mode is used. it is an arrangement between 2 parties. Banks plays role as an agent. Documentation is properly drawn between 2 parties. But in 99 cases clean bills are used. B. Inward bill for collection These are bills received locally. They are received from out station branches of the bank and parties drawn on recipient banker or other banks or parties.
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The Main Documents Invited in Bills and Remittances Department:
1. 2. Demand draft Pay order
1. Demand Draft Demand draft is an instrument which is drawn by one branch to another branch of the same bank. If any person wants to make payment from one city to another city then he can make payment through demand draft. Bank charges a commission for performing this kind of service according to bank rate schedule which is revised after 6 months. Demand draft may be issued or paid. For payment of internal expenses of the bank the pay slip is used. For e.g tax payment, by bank, repair and maintenance expenses, repair and maintenance expenses etc. 2. Pay order pay order is just like a cash. If someone want to make payment to some other person he can make payment through pay order slip. The main advantage of pay order is that it can not be dishonour by the bank when payment is required to made within the city then we can take this bank service and when we want to make payment outside the city then we use demand draft in case of cheque there is a possibility that it can be dishonour by the bank but it case of pay order we have surity that it can never be dishonour.
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MISCELLINEAOUS FUNTIONS OF ALL DEPARTMENTS
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ON LINE BANKING
Many branches and checking accounts Habib Bank Limited are linked through satellite. It provides the facility of transaction with each branch while sitting on any branch of Habib Bank. On Line Transaction are of three types: Cash Transaction Clearing Transaction Transfer Transaction The clients can shift their amounts from one branch to another branch. Their cheques can be cashed. On line banking is miscellaneous activity that is performed in almost all the department of Habib Bank.
Charges for inter branch in line transitions
No charges from the customer maintaining freedom account accounts otherwise charges will be recovered according to the schedule The charges of online made to the individual are Rs.350 and to the any educational institution are Rs.50 only.
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Lockers
One of much appreciated facility offered by a bankers to his customer is that of keeping in safe custody, valuables if various kinds, including securities, and documents of title of property. Frequently such items deposits in a locker box or sealed envelope, in which case the banker takes no cognizance of the contents. A part from providing the facility for accepting the valuable for safe custody, safe deposit lockers are also made available to customers on nominal rent. Documents required for a locker facility: Locker opening form. Specimen signature card. Copy of NIC of the client.
SAFE DEPOSIT LOCKERS CHARGES: Fee for safe deposit lockers to be recovered in advance or at the commencement of the period yearly/half yearly/ quarterly as the case may be. Rs. 2900 per annum or nil on refundable key. Rs. 3900 per annum or nil on refundable key. Rs. 2,500per annum or nil refundable keys. Rs. 2,000 per locker plus actual charges of
Small size Medium size Large size Breaking charges supplier.
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Internet Banking
Habib bank Limited has offered on line banking which is an innovative and truly global product to its customer. Thus enables them to check their balance, view their account ststmant, can transfer their fund.
Automatic Teller Machine

Habib bank has introduced ATM (automated teller machine) in Pakistan for its customer. Electronic cash dispensing facilities are available in various cities. in due course of time,it plans to install more ATMS and extended this on line facility to other operating centers of the bank. All these ATMS are linked through a state of- the- art satellite based communication system offering real time 42- hour service. ATM card is a debit card and cash withdrawal transition are performed with its used as well as customer can check balance and have its account statement. By using this card a client can with drawl the amount from 500 to 20,000 rupee in 42 hours.
In order to get an ATM card
Customer should be an account holder Application from is filled Speacmain signature card is filled Department of Management Sciences - IUB 47
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Application is forward to head office .Within to 10-15 days bank receive the ATM card and pin codes and hand it over to the respective customer after taking his signature. Bank charges are Rs. 200 per annum
Working of ATM Card:

When client enters his card in machine, it asks for the pin code. If he enters a wrong pin code constantly three times, then machine captured the card. This secured the transition .this increased the safety of the customer card. After the client has given a correct pin code, he can safely perform his transition. After getting the amount from ATM machine customer get a small statement of his account which contains the following Pervious balance Transaction amount Current balance Date Time of transaction Account number Name of customer
ATMS AVAILABLE FOR HABIB BANK CUSTOMER

Habib bank Limited has arrangement with other bank to use their ATMS where Habib bank ATM is not available. When a client uses an ATM of
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these other banks, Rs. 15 per transition are deducted from his account as ATM charges.
CREDIT CARD
Habib Bank offers a range of credit cards, accepted at thousands of locations in Pakistan. These cards facilitate the small financial, needs of customers like shopping of goods or any short term financing. Limit of credit card depends on the average balance in the account and monthly income. One of the requirements to issues credit card is that the applicant should be the account holder of the bank.
Documents Required for Credit Card

Application form of credit card. Photocopy of national identity card. Passport size photograph. Salary certificates. Last six month income certificate.
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RATIO ANALYSIS
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1.
ADVANCES TO DEPOSITS RATIO
ACCOUN TS ADVANCE S DEOSIT Ratio (%)
2005 31688163 5 43254516 5 73.25
2006 34943268 5 45914019 8 76.10
2007 38217273 4 53129812 7 71.93
2008 45635550 7 59709054 5 76.42
2009 45466249 9 68275007 9 66.59
GRAPHICAL EXPALINATION
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INTERPRETATION: This ratio shows the relationship between total deposits and the advances by the bank. It shows advances of the bank as compare to the deposits. This ratio is very high in 2006 and 2008 i.e. 76.1% and 76.4%, so we can say that in these particular years the bank position is sounder. It means the bank is giving more and more advances in these years. This shows that advances are increasing than deposits which, is good for bank. We can see that this ratio is very low in year 2009.The bank is not able to utilize the increase in deposits due to which the ratio has fall.
2.
CASH TO DEPOSIT RATIO
ACCOUN TS CASH DEOSIT Ratio (%)
2005
2006
2007
2008
2009 12020652 3 68275007 9 16.60
64864562 82275526 82508368 9584045 5 43254516 45914019 53129812 5970905 5 8 7 45 14.99 17.92 15.52 16.05
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GRAPHICAL EXPALINATION
INTERPRETATION: This ratio shows the relationship between the cash and the total deposits of the bank. It shows the fluctuations. It has increased in year 2006, but decreased in year 2007. The decreased in this ratio is a good sign because it shows that bank is utilizing its deposits in better way by investing them in securities and by advancing to the customers.
3.
EQUITY TO DEPOSIT RATIO
ACCOUNT ES EQUITY
2005 3203119 7
2006 45177664
2007 55063125
2008 71280902
2009 7513371 5 53
HBL 2010
DEPOSITS RATIOS% 4325451 65 7.40 45914019 8 9.83 531298127 10.4 59709054 5 11.93 6827500 79 11
GRAHICAL EXPLAINATION
INTERPRETATION: This ratio is increasing from year 2005 to 2008. This ratio shows the
relationship between the total equity and the total deposits of the customers. This ratio has been increasing in all coming year. It means that its equity is more than its deposits. The bank is focusing on equity rather than utilizing its deposits in risky assets.
4.
DEPOSIT TO TOTAL LIABILITY RATIO
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HBL 2010
ACCOUN TS DEOSIT LIABILITIE S Ratios %
2005 4325451 65 4884060 55 88.5
2006 4591401 98 5368481 02 85.6
2007 5312981 27 6287540 92 84.5
2008 5970905 45 6827479 53 87.45
2009 6827500 79 7794088 23 87.6
INTERPRETATION: Every reputed bank tries their best to capture more and more deposits. And in order to facilitate its further they offer different schemes to customers. As a result of greater deposits Bank can be in the position to advance more and more which is the major source of income. This ratio is very high in the year 2005 and it shows decreasing trend in 2006 and 2007 and it is very low in 2007. In 2008 due to more stable government and opening of new branches, the deposits are increasing at a greater
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HBL 2010
rate which is a good sign for the overall performance of the bank and also increased in year 2009.
5.
EQUITY TO ASSET RATIO
ACCOUNTE S EQUITY ASSEST

RATIO %
2005 3203119 7 5083296 19

6.3
2006 4517766 4 5595656 87

8.07
2007 5506312 5 6430265 85

8.6
2008 7128090 2 7249599 55

9.8
2009 7513371 5 8067926 68

9.31
INTERPRETATION: This ratio shows the relationship between the equity and the total assets. It is highest in the year of 2008 and lowest in the year 2005. If we see it overall this ratios shows increasing trend, which means that the Company worth is very sound and therefore the price of its share in the market Department of Management Sciences - IUB 56
HBL 2010
increasing. In 2007 due to changing political situation, and different military operations in the country shakes this ratio in 2007 but this ratios again shows stability in 2008.
6.
ADVANCES TO ASSET RATIO
Account s LOANS ASSET RATIO %
2005 32915388 3 52889390 5 62.2
2006 35598281 3 59029146 8 60.3
2007 38380086 4 69199152 1 55.5
2008 46254929 4 75792838 9 61.02
2009 46001537 2 86377862 1 53.25
INTERPRETATION:
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HBL 2010
This ratio shows the relationship between the amounts of total advances to total assets. There was decreasing trend till year 2007 and then increased in 2008. This ratio shows continuously shows up and down trend throughout the last five years. This ratio was very low in 2007 but it starting to show increasing trend 2008. There is again fall in this ratio in the year 2009.
7.
RETURN ON EQUITY RATI
ACCOUNT ES NET PROFIT EQUITY RATIO %
2005 9563303 3287799 8 29.1
2006 1270031 5 4517766 4 28.11
2007 1008403 7 5506312 5 18.31
2008 1561402 0 7128090 2 21.90
2009 1340074 9 7513371 5 17.83
INTERPRETATION:
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HBL 2010
Comparison of total profit of the bank with the total equity of the shareholders this is known as Return on Equity. ROE measures overall efficiency of a company in managing its total investment in assets and return to its shareholders. It is primary measure of how well management is running the company. From the year 2005 to 2007 it decreases which means profit of the HBL falls as compared to previous years. The reason behind the decrease in 2007 was highly uncertain political situation and decreasing economical situation of the country. This ratio again increases in 2008 due to stability of economical and political factors, which is a good indication for the bank. But it again decreased in year 2009 due to economic problems. Ratio indicates us that how much cash is created from the existing assets.
8.
EARNING PER SHARE

2005 13.86 2006 18.30 2007 14.49 2008 20.47 2009 14.70
YEARS AMOUNT
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INTERPRETATION: Earnings per share are the amount of income earned on a share of common stock during accounting periods. Earnings per share receive much attention from the financial community, investors and potential investors. It is not increasing continuously. It is a very good sign in this way that company can meet its operational expenses easily and can also earn an attractive income. It is highest in year 2008 i.e. 20.47 as in this year profit is more than the preceding years as compared to keeping 2005 as a base year. More the bank will earn on its shares more will be the profitability.
9.
RETURN ON ASSET RATIO
Account s AFTER TAX ASSET RATIO %
2005 9646549
2006
2007
2008
2009
12700315 10084037 15614020 13400749 69199152 75792838 86377862 1 9 1 1.46 2.06 1.56
52889390 5902914 5 68 1.82 2.15
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INTERPRETATION: Return on assets which is usually called return on investment (ROI).It measures the overall effectiveness of management in generating profit with its available assets. The higher return on total assets is considered best. This ratio shows the relationship between the total assets and the net profit. From the year 2005 to 2006 this ratio is increasing for the HBL and the increase is very fast. It means that increase in its total income is much more as compared to increase in its total assets. But in 2007 this ratio decreases, it means in this year assets are increased more rapidly as compared to total income. In the year 2008 this ratio again shows increasing trend which means total income is increased as compared to assets in 2007. In year 2009 it again falls as shown in above table 1.56.
10. RETURN ON DEPOSITS RATIO
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ACCOUNT ES PROFIT DEPOSITS RATIOS% 2005 2006 2007 1514461 7 5312981 27 2.85 2008 2203437 9 5970905 45 3.69 2009 1340074 9 6827500 79 1.96
13833975 1884048 7 43254516 4591401 5 98 3.19 4.10
INTERPRETATION: This ratio shows the profit of bank against the deposits .This ratio shows that how well a bank utilizes the deposits to create profits .This ratio is good in 2006 but very low in year 2009 as above table mentions. The ratio of 2009 year is not a good sign for the bank. This ratio is decreased due to economic problems in the country such as the high rate of inflation. We also cannot ignore the law and order situation in country.
11. INVESTMENT TO ASSET RATIO

HBL 2010
Accounts 2005 INVESTMEN 1073844 T 70 ASSET 5288939 05 RATIO % 20.30
2006 1195874 76 5902914 68 20.25
2007 1779422 51 6919915 21 25.71
2008 1381456 92 7579283 89 18.22
2009 2164675 32 8637786 21 25
INTERPRETATION: The investment against the total assets, we find that it is very high in 2007 and 2009. This shows very good sign for the bank but after a period of time it shows decreasing trend very rapidly according to ratio in 2005, 2006 and 2008. It means that management is paying attention towards Government securities. This is not a good trend it shows the deficiency of management. In 2007 this ratios increases because the management is Department of Management Sciences - IUB 63
HBL 2010
reluctant to invest in government securities due to unstable political condition. But this ratio again falls in 2008.
12. DEBIT RATIO
Accounts 2005 LIABILITIE 4884060 S 55 ASSETS 5288939 05 RATIO % 92.34
2006 5368481 02 5902914 68 91
2007 6287540 92 6919915 21 90.8
2008 6827479 53 7579283 89 90
2009 7794088 23 8637786 21 90.23
INTERPRETATION: Debt ratio measure the proportion of total assets financed by creditors .The higher the ratio the greater the amount of others money used in an attempt to generate profit. This ratio indicates the decreasing trend from 2005 to 2008 ant it is very low in the year 2008 but this ratio again shows Department of Management Sciences - IUB 64
HBL 2010
increasing trend in the year 2009.The 2009 ratio show that bank has financed 90.23% of its assets . It increased and then decreased this shows that its borrowing decreased which is a good sign.
13. NET PROFIT RATIO
Accounts NET PROFIT NET SALES RATIO %
2005 9646549
2006 2007 2008 2009 12700315 10084037 15614020 1340074 9 21994655 27677631 23227773 27592073 33580875 43.85 45.9 43.41 56.58 39.90
INTERPRETATION:
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HBL 2010
This is the ratio of net profits to net sales. This is used to measure overall profitability of the firm. This shows mixed trend over the years. This ratio is high in year 2008 which is 56.58%.
14. OPERATING PROFIT RATIO
ACCOUNT 2005 2006 2007 2008 2009 ES EBIT 13833975 18840487 15144617 22034379 21381636 NET SALES 21994655 27677631 23227773 27592073 33580875 RATIOS% 62.9 68.07 65.20 79.85 63.67
INTERPRETATION: Department of Management Sciences - IUB 66
HBL 2010
This ratio expresses relationship between the operating profit and net sales. It reflects the efficiency with which a firm produces it products. Higher the ratio better it is. The ratio is very high in year 2008 which is 79.85% but it is low in 2009. So HBL management needs to look at this decrease.
SWOT ANALYSIS
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HBL 2010
STRENGTHS
HBL is a leading financial institution in terms of market share. It has a big market share in the domestic market. In terms of product design capabilities in relation to competitors, bank has been leading cheques, Flexi loans HBL is the oldest bank in the history of banking in Pakistan it was founders of Habib Bank who presented a bank cheques to Quaid-eAzam HBL also provided funds for the establishment of SBP. It is the only Pakistan bank with the largest overseas net work which consists of 71 branches in 21 countries. HBL has largest net-work mode and customer base in Pakistan with 1469 branches in Pakistan. so far, right from 1947. HBL has introducing innovative products in the country i.e. Rupee traveler
HBL is in dominating position in Pakistan terms of deposits, advances and assets.
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The organization uses a differentiated marketing strategy with a different marketing mix for each segment. Keeping in view the need of time the bank has automated its operations like providing ATM services Bank has launched his credit card. Bank charges are lees then other banks
WEAKNESSES
A few branches are on line and have a universal access account.
Few ATM are available for the customer of the bank. Rate offered on PLS are very lees as compared to the other banks No specialist person is for the simex in the branches. Employees are less in the branches while regional offices are over staff . The pays of the employees are comparatively less and there are no clear criteria for the promotion Rate of mark up charged from customer are high as compared to other banks.
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OPPORTUNITIES
With the largest work of branches, with highly qualified staff bank provides the quality of service and support to the customers and retain its leading position. Bank should target segments like soft-ware energy pharmaceutical and communications which have potential for grew As bank has minimum charges by installing the ATMS he can grabbed more .market share.
Due to privatization management is free for decision making. Bank can increase his revenue by focused on flexi loan.
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THREATS
Almost of the foreign banks that operations in the bigger cities only and are concentrating on individuals of higher income and blue chips companies they are taking away the mark from bank. As most of the loans are stuck up there are fewer tendencies to more loans thus giving a low loan Products and services introduced by HBL in the past have been copied and followed by other commercial banks. The bank has to deal with increasingly thought competitions in domestic market from banks. Nationalized foreign and private sector
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HBL 2010
The schemes of National savings are a threat for Habib Bank Limited. They offer higher rate of interest. Habib bank is the bank of most educational institute but due to bad policies most of institute shift their account to U.B.L. Consolidation competition. in the banking sector resulting in increase
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HBL 2010
SUGGESTIONS RECOMENMENDATIONS
&
SUGGESTIONS & RECOMMENDATIONS

Staff should be provided professional training in marketing, selling, finance and computer. It will be helpful in sharpening their abilities and developing their skills. Bank should emphasize on hiring of business graduates and computer experts for the simex system
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HBL 2010
ATMs should be installed in small cities as well. Operating expenses of the bank should be brought down to increase profitability. The political influence should be minimized on all type of the operations of the bank. Advance for non-productive investment should be stopped. The influence of employees union should be minimized. Implantation on the rules, regulations and policies should be done at all cost. The customer satisfaction should be guaranteed through rapid delivery of financial products and services Habib bank should focus in the services of their educational institutes Staff should be provided with professional training in marketing, selling, and finance in order to sharpen their abilities and developing skills. Right person on right job should be placed. Proper staff should be in the branches. All the branches of the bank are not equipped with the on line facilities and other facilities like ATM, so work should be done to standardized all the branches at equal level to attract more customers Department of Management Sciences - IUB 74
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A network of foreign branches should be established to compete the competitors and to save the huge charges being to the corresponding banks
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HBL 2010
CONCLUSION
CONCLUSION
HBL has constantly ensured that its customers find congruence in all its offerings, which are further proof of the fact that HBL is truly a modern Department of Management Sciences - IUB 76
HBL 2010
bank catering to every financial need as and when required. The bank s long journey through time along with the people of Pakistan, with them every step of the way catering to their every financial requirement has given it status to become a world class brand. Habib Bank Limited was incorporated on 25th August 1941 by ISMAIL HABIB (LATE). Habib Bank inaugurated its operations with the banks first branch in Bombay. It was the first Muslim bank of the sub continent. It was established with a paid up capital of Rs.2500, 000. At an early stage the number of branches was only 12. Habib Bank Limited is a Pakistan-based bank. The Bank is engaged in commercial banking, modaraba management and asset management related services in Pakistan and overseas. During the year ended December 31, 2009, the Bank operated 1,454 branches in Pakistan and 40 overseas branches. The segments of the Bank include retail banking, which consists of retail lending, deposits and banking services to private individuals and small businesses; corporate/commercial banking, which consists of corporate and commercial customers and investment banking, includes advices and placements to corporate mergers and acquisitions, underwriting, privatizations and securitization; treasury, which involves the businesses of trading, fixed income, equity and foreign exchanges, and international banking group, which consists of the bank's operations at 24 countries. The geographical segments of the Bank include Pakistan, Asia Pacific, Europe, North America, Middle East and others Today, Habib Bank is truly the bank of the people, providing its customers convenience and satisfaction all over the world. Habib Bank Plaza, the tallest building in Pakistan, is the proud symbol of HBLs leadership in Pakistans corporate arena. Habib Bank Ltd operated under state ownership between 1974-2004. After privatization in 2004, 51 percent of the Banks shares were purchased by Department of Management Sciences - IUB 77
HBL 2010
the Aga Khan Fund for Economic Development, an agency of the Aga Khan Development Network. The president of HBL is assisted by ten Senior Executive Vice-Presidents and a staff of 29 Executive Vice Presidents, 154 Senior Vice Presidents, 420 Vice Presidents, 831 Assistant Vice Presidents, 2350 officers Grade-I, 4108 officers Grade-II, 3364 officers Grade-III and 10658 Clerical/NonClerical employees. I have completed my internship in HABIB BANK LIMITED in Bahawalpur. Today, HBL has more than 1469 branches all over Pakistan and presence in 26 countries across five continents. With a revamped customer oriented philosophy, it is pursuing new avenues of leadership through innovation, as it gear up to face the challenges of the new millennium. It has over 5 million customers. It has strong brand recognition due to historical presence, vast branch network and services offered. HBL has the biggest advances portfolio in Pakistan, catering to all sectors of the economy and all market segments i.e. corporate, consumer, SME, Agriculture and retail. Following are the different departments of Habib Bank Limited Advances Department Clearing Department Deposit Department Remittance Department Cash Department The function of advance department is to lend money in the form of consumer financing i.e. flexi loans & credit cards. Agriculture finance, cash finance, running finance. Fixed asset finance, letter of credit & letter of guarantee are also included in it. . HBL is earning by giving advances mostly in the form of flexi loans because middle income level consumers can also avail this facility.
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HBL 2010
In clearing department bank exchanges Cheque and other negotiable instruments drawn on each other within specified area and securing the payments for their clients through the clearinghouse. The Cheque and other negotiable instruments are sent to the Clearing Department / Collection Cell located at the Main Branch. The function of deposit department is to collect cash from customers and to deposit it into the accounts, maintained by them. Also different types of accounts for new customers are opened here. The main function of bills and remittances department is to deal mainly in Outwards bills for collection (OBC) and Inward bills for collection (IBC). Remittance is a process to transfer money or send money through different procedures and ways. Through this bank earns a lot of income in form of service charges The function of cash department is receipt and payment of cash. Utility bills are also paid in cash department. As we worked in university branch of HBL so prospectus of university is also available in university branch. Habib bank has introduced ATM (automated teller machine) in Pakistan for its customer. Through Atms not only people can withdraw cash but also can avail the following. Funds Transfer Mobile bill payment Utility bill payment Generate Mini Statement
To use ATM, ATM card is being made by bank. It is also known as HBL debit card. HBL Visa Debit Card allows you to pay for your purchases directly from your bank account.
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HBL 2010
HBL provides the service of Internet Banking through which we can avail the facilities such as Account information, Funds transfer View statements, Mobile prepaid cards, Utility bill payment, Cheque Book request. HBL provides also you the service of Phone Banking through which you can avail the facilities of Request for Banker's Cheque, Account Statement, and Cheque Book HBL Credit Card bill payment, Funds Transfer Balance Inquiry, Mobile prepaid cards etc. When I did the financial analysis I concluded that HBLs return on assets had increasing trend in 1st three years and then decreasing and then again increasing. Increasing trend shows that assets have been properly utilized to generate net income and decreasing trend shows that assets have not been properly utilized. Return on equity had very little change in 1st three years. But in 2007 it decreased means net profit was decreasing. Then it again increased in 2008. In advances to deposit ratio there was increasing trend in 1st three years which shows that bank had increased its advances. In 2007 it decreases but it again increased in 2008. This shows that advances are increasing than deposits which are good for bank.. Equity to asset ratio had shown an increasing trend from 2004 to 2006 which means that shareholders equity had increased. In 2007 it is showing decreasing trend. But again in 2008 it is increasing means increase in shareholders equity which is showing good position of company. Deposit to liability ratio had shown good position in 2004 which means that bank had maintained sufficient deposits. But from 2005 to 2007 there was much decreasing trend. . In 2008 it had increased due opening of new branches and introducing new & different schemes that benefit the customer. The deposits are increasing which show the good performance of bank. Equity to deposit ratio had shown increasing trend from year 2004 to 2006 means equity has been increased as compared to deposits. In decreased in 2007 but again increased in 2008. Advances to assets ratio was increased in 2005 means bank had given more advances. In next three years there was little decreasing and than increasing trend. EPS increased continuously from 2004 to 2008 which is a very good sign Department of Management Sciences - IUB 80
HBL 2010
for bank. In this way firm can meet its expenses. More the bank will earn on its shares more will be the profitability. Reserves as percentage of loan had increased in 2006 which means that which means that in 2006 bank had maintained reserves 5 % of loans to deal with contingencies. But in 2007 this ratio again falls. In 2008 we can see the positive trend in this ratio means that reserves are again increasing. In SWOT analysis I concluded that HBL has strong recognition in domestic and foreign market it has largest net-work mode and customer base in Pakistan with 1469 branches in Pakistan and 71 branches in 21 countries. HBL provides a complete range of banking products and services including flexi loans, car finance, home finance, finance, consumer finance, credit cards and lease finance, credit cards, debit card, online banking and phone banking. All these things are showing its strength. But its Employees are not satisfied because the pays of employees are less and there is no clear criterion for promotion. Also there is shortage of trained and specialized staff. There are old employees having lack of information technology and cannot use latest banking software. There is no specialist person who can train employees in IT. These things are showing weakness. HBL has also opportunities i.e. due to privatization management can make its own decision for the benefit of firm. Products and services can be enhanced for customers .By increasing technical and professional staff, progress of firm can be increased. There are also threats to HBL. Different Schemes launched by other banks have increased competition is increased for HBL. Employees are leaving because of low salaries and no promotions. As there are low barriers to entry competition is increasing not domestically but also globally. HABIB bank was first Muslim bank to be established in Pakistan in December 1947 and serving towards the financial and economic progress of country. HBL is on of the largest and prominent of bank s of Pakistan. HBL is providing its customers with value, quality and distinctive level of services and high ethical standards in all dealings with them. But there is always need of improvement and need of to identify new ways. Department of Management Sciences - IUB 81
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HBL has constantly ensured that its customers find congruence in all it offerings, which are further proof of the fact that HBL is truly a modern bank catering to every financial need as and when required. The banks long journey through time along with the people of Pakistan, with them every step of the way, catering to their every financial requirement has given it status to become a world class brand. HBL has created a challenging environment that encourages creativity and
commitment. In is focusing on attracting, developing and retaining the best talent in the marketplace. Its dynamic culture offers diverse growth opportunities across Pakistan and in 25 countries around the world. HBL fosters a work environment where employees can realize their potential whether locally or in the international arena. HBL with its professional management is in the process of turning around the bank. Its products and services such as debit card, credit card, online banking and phone banking have resulted a strong potential for turn around and value creation.
WORK DONE BY ME DURING INTERNSHIP

I have worked as an internee in the Habib Bank limited Branch Model town A for Six weeks. During my internship I learned a lot about the banking work. The branch was quite small work comparatively with others but it had all departments. I tried my best level to gain from this internship experience .
On first day I reported to the branch manager operation and he guided me and gave me information about the branch. In first week he had given me information about the overall banking in this branch. He told me about the departments of the bank and some other basic information about the bank, cheques, records, etc.
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In the next week he told me that now I have to start work in the different departments. I started my internship from account department. The most of the working was conducted in this department. There was a lot of burden of work in this department. In this department the following major activities were; a) Account opening. b) IBDAs records and preparation.
Account Opening:
In this department daily many people came for open the accounts according to their own choice of account. In PLS Saving account and current account procedure of opening of account is the same except the initial deposit. The account opening form contains the following informations. The type of account which any person want to be open, he has to select that. Nature of account whether individual or proprietorship or other. 83 Department of Management Sciences - IUB
HBL 2010
Currency (in which want to operate). Particular of deposits. (Period for operation). Complete address. Telephone number. Nature of business etc. Detail of other accounts. Zakat deduction. Personal information. Name. Date of birth. Nationality etc. Then signatures of the account holders and the bankers and manager. Signature of the introducer, his account number and address. When this form is filled then signature of the person who want to open the account are to be taken on the specimen signature card. Then it is recorded in the PC. Then after a week letter of thanks when received by the person then a cheques book is issued to him. Now he can withdraw the amount by fulfilling cheques up to the extent of his balance, in the account. In that account opening I also write the letter to the customer. There are two letter are written while opening the account 1. New customer 2. Introducer of new customer These are printed letter on which just write the name of person and his addresser written in the form.
Preparation of Cheque Book:

I issued cheque books in the account opening department. The cheque books is issued after opening of the account. The Account No. is stamped Department of Management Sciences - IUB 84
HBL 2010
by the rubber stamp on each cheque. Then it is given to the person. But now computerized cheque books are issued to the customers. When all cheques books are issued to the customers then these are recorded in the CD Book or PLS saving book. All cheque books are recorded with their a/c number and name of the person. Prepration of IBDA: I prepared in this department IBDA Inter Branch Debit Advice. If for one branch it is IBDA transition then it is for branch is IBCO. (Inter branch credit advice). IBDA Transition: For example transaction between satellite town Branch and Model Town Branch is as follow. If the customer of satellite town branch withdraw money from Model Town branch.(use) this branch will debit the account of satellite town branch with IBDA. Davis road branch will receive the slips that the person has used the ATM machine there. When money is withdrawn then Habib Bank satellite town branch will credit the Model Town branch. After transfer of cash from branch the account will be settled.
Cash Department:
I spent one week in the cash department here I issued token to the customers and then recorded it into the token book. The procedure of
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HBL 2010
issuing the token is that when cheque is presented at the counter. Then following things are checked. The signatures on front and at the back. Similarities in the signatures of the issuer of the cheque. Date. Amounts whether tally with the amount written in words.
Then token is issued to him and cheques are stamped at the back at which date and token No. Is filled. Then all cheques are forwarded to the next counter where signatures are compared with the signatures in the book and the balance of the account is checked. If the cheque has not any fault on it then it is given to cash payment counter and cash is paid to the customer up to the amount mentioned on the cheques. I spent one week in this department. I also completed their pending token books also.
Advance Department:
I also spend some time in the Advance t department .the loans available in our branch are: 1-FLAXI LOAN 2-CONSUMER FINANCE These are the main types of loan which is future categorized in different ways. I check there the procedure of different loans Documents required Capacity of the party Purpose of loan I also observed the 5cs of loan while gave the to the party Department of Management Sciences - IUB 86
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ANNEXURE
87

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HBL 2010

Department of Management Sciences - IUB

Department of Management Sciences - IUB

INTRODUCTION OF THE ORGANIZATION

Department of Management Sciences - IUB

FUNCTIONS OF COMMERCIAL BANKS:

Department of Management Sciences - IUB

Department of Management Sciences - IUB

Department of Management Sciences - IUB

Department of Management Sciences - IUB

Department of Management Sciences - IUB

Head Corporate and Investment Banking

Chief Information &

Head-International Banking Head-Retail & Consumer

GM-Business Continuity Planning

Dr. Razi Azmat

Abdur Rashid Awan

Business Head-Semi Urban Areas

Aman Aziz Siddiqui

RGM-GULF (UAE, OMAN)

Department of Management Sciences - IUB

Department of Management Sciences - IUB

MISSION, VISION STATMENT AND OBJECTIVES

LEADING LOCALLY AND GROWING GLOBALLY

MISSION STATEMENT OF HABIB BANK IS TO MAKE

To take necessary steps to plug the leakages of revenue and expenses.

To insure internationally accepted accounting standard are followed by the bank

To correct the structural flaws in the balance sheet

Department of Management Sciences - IUB

Department of Management Sciences - IUB

Department of Management Sciences - IUB

DEPARTMENTAL LEVEL STRATEGEIS

Department of Management Sciences - IUB

1. Strategies of Marketing Department

2. Strategies of HRM Department

Department of Management Sciences - IUB

Department of Management Sciences - IUB

Department of Management Sciences - IUB

OFFICER GRADE III

Department of Management Sciences - IUB

VARIOUS DIVISION AND DEAPARTMENTS OF THE BANK

Department of Management Sciences - IUB

23 Regional Headquaters 20 corporate centers 1473 branches

Department of Management Sciences - IUB

Department of Management Sciences - IUB

Department of Management Sciences - IUB

Department of Management Sciences - IUB

Department of Management Sciences - IUB

Department of Management Sciences - IUB

Department of Management Sciences - IUB

Minimum initial deposit.

Operating the account./ cheque book.

2). Cash credit. Department of Management Sciences - IUB

Department of Management Sciences - IUB

concerns to meet the financing of working capital expenditure. D)

Basic requirements for the flexi loan

Document required for flexi loan

Department of Management Sciences - IUB

Rate of mark up on flexi loan

Functions of clearing Department:

Department of Management Sciences - IUB

Procedure of Clearing at Clearing House:

6. Bills and Remittances department

Procedure of clearing at clearing house A. Outward bill for collection