Habib Bank Limited

PARTICIPANTS:-

M.Muddaser Sharif 07-NTU-087

Hafiz Kashif 07-NTU-072

Waqar Abdullah 07-NTU-103

S.M.Umair-ul-Hassan 07-NTU-100

Presented to:-
Sir Zahid Hussain Sb
Introduction to HBL:

Habib Bank Limited commonly referred to as "HBL" and head-quartered in Habib Bank Plaza,
Karachi, Pakistan, is the largest bank in Pakistan. The bank has a network of 1425 branches in
Pakistan and 55 branches worldwide. It has a domestic market share of over 40%. It continues to
dominate the commercial banking sector with a major market share in inward foreign
remittances (55%) and loans to small industries, traders and farmers. Overseas, it has operations
in the following countries:

Afganistan, Australia, Bahrain, Bangladesh, Belgium, Canada, China, France, Hong Kong,
Iran, Kenya, Lebanon, Maldives, Nepal, Netherlands, Nigeria, Oman, Singapore, Sri Lanka,
Turkey, UAE, UK & USA.

History of the Company:

Mohammed Ali Jinnah, Pakistan's founding father, realized the importance of financial
intermediation while he was campaigning for the creation of a separate homeland for the
Muslims of India. He persuaded the Habib family to establish a commercial bank that could
serve the Indian Muslim community. His initiative resulted in the creation of Habib Bank in
1941, with HO in Bombay (now Mumbai), and fixed capital of 25,000 rupees. The bank played
an important role in mobilizing funds from the Muslim community to finance the All-India
Muslim League's campaign for the establishment of Pakistan. Habib Bank also played an
important role in channeling relief funds to the people hurt in the communal riots and violence
that preceded the departure of the British from India.

After Pakistan was born in 1947, Habib Bank, at the urging of Governor-General Jinnah, moved
its headquarters to Karachi, Pakistan's first capital. This gave Karachi its first commercial bank
of the newly formed Islamic Republic of Pakistan. HBL was incorporated on 25th August 1941
and operated in the private sector until its nationalization in 1974. 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.
Services:

Habib Bank offers the basic range of banking services to its customers, to include Commercial,
Corporate, Investment, and Retail Banking, Treasury, and Islamic Banking.

Company Description:

HBL is a Banking Company, which is engaged in Commercial & Retail Banking and related
services domestically and overseas.

Brand of HBL:

HBL says “Our brand identity is the outward expression of what we stand for as an organization.
This is summarized in our vision, mission and is supported by our values.”

Vision of HBL:

“ Enabling people to advance with confidence and success”

Mission & Mission statement of HBL:

To be recognized as the leading financial institution of Pakistan and a dynamic international

bank in the emerging markets, providing our customers with a premium set of innovative
products and services, and granting superior value to our stakeholders – shareholders, customers
and employees.

“To make our customers prosper, our staff excel and create value for shareholders”

Values of HBL:
HBL’s values are the fundamental principles that define its culture and are
brought to life in its attitudes and behavior. It is company’s values that make
its unique and unmistakable. Company values are defined below:
 Excellence
 Integrity
 Customer focus
 Meritocracy
 Progressiveness

Excellence:
This is at the core of everything HBL does. The markets in which HBL operates are becoming
increasingly competitive, giving their customers an abundance of choice. Only through being the
very best - in terms of the service HBL offers, its products and premises - can it hope to be
successful and grow.
Integrity:
HBL is the leading bank in Pakistan and its success depends upon trust. Its customers - and
society in general - expect it to possess and steadfastly adhere to high moral principles and
professional standards.
Customer focus:
HBL understands fully the needs of its customers and adapts its products and services to meet
these. HBL always strives to put the satisfaction of its customers first.
Meritocracy:
HBL believes in giving opportunities and advantages to its employees on the basis of their
ability. HBL believes in rewarding achievement and in providing first-class career opportunities
for all.
Progressiveness:
HBL believes in the advancement of society through the adoption of enlightened working
practices, innovative new products and processes, and a spirit of enterprise.
Operational Structure:
HBL 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 1,705 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.

Domestic and International Networks:

Major Local Market Presence: HBL is one of the largest commercial banks in Pakistan representing
approximately 20% of the assets and deposits of the banking sector.

A Household Name: HBL's brand name is well established. It has an extensive domestic network of
1705 branches reaching virtually every segment of the Pakistani economy.

A Full Service Bank: HBL provides its customers a complete range of banking products and
services including retail banking, corporate and institutional banking, trade finance, consumer
finance and credit cards.

An International Bank: HBL has a presence globally through an extensive international branch network
described in the table below;

.
Country Status Opened Branches
AFRICA
Kenya Branch Operation 1956 5
Mauritius Branch Operation 1964 4
Seychelles Branch Operation 1976 1
Sweden Branch Operation 1982 1
ASIA
Bangladesh Branch Operation 1976 2
Fiji Islands Branch Operation 1991 1
Maldives Branch Operation 1976 1
Singapore Branch Operation /OBU 1971 1
Sri Lanka Branch Operation 1951 3
Karachi EPZ Branch Operation 1983 1
MIDDLE EAST
Bahrain Branch Operation /OBU 1969 3
Lebanon Branch Operation 1964 1
Oman Branch Operation 1972 11
UAE Branch Operation 1966 8
EUROPE
Belgium Branch Operation 1975 1
France Branch Operation 1980 1
Netherlands Branch Operation 1979 1
Turkey Branch Operation 1983 1
UK Branch Operation 1961 6
USA Branch Operation 1971 1

Ownership Structure

Shareholder Percentage (%)

State Bank of Pakistan 92.24
Islamic Republic of Pakistan 1.30
State Life Insurance Corp. of Pakistan 0.23
Other Public Bodies 0.05
Outstanding Shares (1,217,849,500) 100

National and International events of HBL:

 1951 HBL opened the first of 3 branches in Sri Lanka.

 1952 HBL established Habib Bank (Overseas).
 1956 HBL opened first of 5 branches in Kenya.
 1957 or 1958 HBL opened a branch in Aden.
 1961 HBL opened the first of what would become 6 branches in the UK.
 1964 HBL opened the first of 4 branches in Mauritius and a branch in Beirut.
 1966 HBL opened the first of 8 branches in the UAE.
 1969 HBL opened first of 3 branches and an OBU in Bahrain. However, HB’s branch
in Aden is nationalized.
 1971 HBL opened an OBU in Singapore and a branch in New York.
 1972 HBL opened the first of 11 branches in Oman. HBL constructed Habib Bank
Plaza in Karachi to commemorate the bank’s 25th Anniversary.
 1974 The government of Pakistan nationalized HBL and HBL merged with Habib
Bank (Overseas).
 1975 HBL opened a branch in Belgium. HBL also merged with Standard Bank, a
Pakistani bank.
 1976 HBL opened a branch in the Seychelles, the first of two branches in Bangladesh,
and a branch in the Maldives.
 1979 HBL opened a branch in the Netherlands.
 1980 HBL opened a branch in Paris and another in Hong Kong.
 1981 HBL established Nigeria Habib Bank with 40% ownership. HBL also opened a
representative office in Teheran.
 1982 HBL opened a branch in Khartoum.
 1983 HBL opened branch in the Karachi EPZ and a branch in Istanbul.
 1984 HBL established Habib American Bank in New York with a branch each in
Manhattan and Queens, and a US International Banking Facility. HBL also opened a
branch in California.
 1987 HBL opened in Australia.
 1991 The Habib Group established a separate private bank, the Bank AL Habib, after
private banking was re-established in Pakistan. HBL opened a branch in the Fiji
Islands, and took over the Paksistani branches of failed bank, BCCI.
 1992 In Nepal HBL acquired 20% of Himalayan Bank.
 1995 HBL established a representative office in Cairo.
 1990s HBL established Habib Finance (Australia), and Habib Finance International
Limited, Hong Kong.
 2000 HBL established Habib Canadian Bank.
  2002 On June 13, 2002 Pakistan's Privatization Commission announced that the
Government of Pakistan had granted the Aga Khan Fund for Economic Development
(AKFED), a subsidiary of the Aga Khan Development Network, rights to 51% of the
shareholding in HBL, against an investment of PKR 22.409 billion (USD 389
million).
 HBL's UK operation came close to being shut down due to regulatory issues with the
Financial Services Authority. The issue was resolved by converting the operations to
a subsidiary. Then Habib Bank Limited and Allied Bank of Pakistan merged their
operations (Habib contributed its 6 branches and Allied its 4), into a new bank, called
Habib-Allied International Bank, in which Habib Bank has a 90.5 percent
shareholding, while Allied Bank has 9.5 percent. Simultaneously with the transfer of
business to the new bank, both Allied and Habib Bank close down all independent
operations in the UK.
 2003 HBL received permission to open a branch in Afghanistan.
 2004 On February 26, the Government of Pakistan handed over management control
of Habib Bank to AKFED. The Board of Directors was reconstituted to have four
AKFED nominees, including the Chairman and the President/CEO and three
Government of Pakistan nominees.
 2006 HBL sold the operations that it had established in Fiji in 1991 to Bank of South
Pacific.

Board of Directors
 Sultan Ali Allana
Chairman
 R. Zakir Mahmood
President & CEO
 Iain Donald Cheyne
Director
 Sajid Zahid
Director
 Ahmed Jawad
Director
 Mushtaq Malik
Director
 Yasin Malik
Director

Board Committees
Audit Committee
 Mr. Iain Donald Cheyne
Chairman
 Mr. Sajid Zahid
Member
 Mr. Ahmed Jawad
Member
Risk Management Committee
 Mr. Sultan Ali Allana
Chairman
 Mr. R. Zakir Mahmood
Member
 Mr. Mushtaq Malik
Member
Human Resource Committee
 Mr. Sultan Ali Allana
Chairman
 Mr. R. Zakir Mahmood
Member
 Mr. Sajid Zahid
Member
Group Chief Financial Officer
 Mr. Ayaz Ahmed
Company Secretary
  Ms. Nausheen Ahmad
Legal Advisor
 Mahmood Yousuf Mandviwalla
Bar-at-Law
Auditors
 KPMG Taseer Hadi & Co.
 Chartered Accountants
Registered Office
4th Floor, Habib Bank Tower
Jinnah Avenue
Islamabad, Pakistan.
Phone: 051-2872203 & 051-2821183
Fax: 051-2872205
Head Office
Habib Bank Plaza
I.I. Chundrigar Road
Karachi - 75650, Pakistan.
Phone: 021-2418000 [50 lines]
Fax: 021-9217511
Registrars
THK Associates (Pvt.) Ltd.
Ground Floor State Life Bldg. No. 3
Dr. Ziauddin Ahmed Road
Karachi.
Websites
Corporate
www.hbl.com
Treasury
www.hblgtr.com.pk
Internet Banking
www.hblibank.com

Famous Controversy:

Habib bank has long been scrutinized by intelligence officials monitoring terrorist money flows.

On July 18, 2007, Mariane Pearl, the widow of Wall Street Journal reporter Daniel Pearl, filed a
lawsuit against Habib Bank Ltd over the 2002 abduction, torture and murder of her husband. The
pending lawsuit alleges the bank and its subsidiaries knowingly conducted financial transactions
and provided account services on behalf of Al Akhtar Trust, a Pakistani based charity trust. Al
Akhtar Trust’s accounts have been used to provide financial support to terrorists. However, HBL
claims to have froze Al Akhtar Trust’s accounts several years before Daniel Pearl’s abduction.

On October 24, 2007, Pearl's lawsuit against HBL was formally dropped. Lawyers for Mariane
Pearl noted that Habib Bank Limited and the other defendants in the case had not answered the
lawsuit filed in July (although Habib Bank Limited had denied ever supporting terrorism) , but
they otherwise did not explain their reason for dropping the action.

The U.S. Federal Reserve Board and the New York State Banking Department criticized Habib
Bank Limited for failing to address deficiencies in its compliance with U.S. anti-money
laundering laws. After the U.S. Federal Reserve Board threatened formal charges, though none
were filed, Habib Bank Limited agreed to strengthen the banks compliance. More specifically,
the Fed ordered HBL to strengthen its transaction monitoring systems and the filing of
"suspicious activity reports" on transactions that do not fit the routine business patterns of the
bank's customer base.

Habib Bank Limited has also been said to be involved in large sums of money transactions by
the Pakistani intelligence agency the Inter Services Intelligence (ISI). This is further supported
by the recent book by L.K. Advani "My Country My Life" in which he points out that the ISI's
dealings in drugs overseas mainly involves transactions through Habib Bank Limited and the
funds are then transferred by various bank channels to separatist groups in various states in India.

Corporate Strategy and Businesses:

Growth

Maintaining a mix of short & long term deposits to minimize the cost of funds.
Asset Quality
 Stringent Risk Management
 Unified IT System
 Intensive Training and Professional Recruitment
Focus
 Re-organization of the Consumer and Retail Banking Businesses
 IT system enhancement
 Product offering enhancement
 Advancement of operations in urban areas

Businesses
Retail Banking
Deposit Mobilization
 Largest branch network in Pakistan
Urban - 703 branches 80% deposits and 94% advances
Rural - 734 branches 20% deposits and 6% advances
 Largest customer deposit base: 5mn+
 Low cost/stable deposits
48% of total deposits
Agriculture Financing
Serves rural customer needs for agricultural inputs, storage facilities and
Mechanization. Provides short and medium term loans
 Disbursement exceeds US$0.2bn during peak season
 Dominant bank in this segment: 700+ rural branches
Islamic Banking
 Exclusive Islamic Banking branch network for both assets and liabilities.
Corporate Banking
Serves large corporate customers: multinationals, local private sector corporate and state
owned entities
Largest Corporate Banking in Pakistan
 Loan portfolio US$ 4.5 bn, market share corporate loans of 15% with participation in
more than 80% of all major transactions.
10 branches with over 500 customers
 Specializes in working capital, trade, structured project finance & government
commodity operations.

Investment Banking
Corporate M&A Advisory, Debt and Equity Capital Markets, Private Placements,
Leverage Finance and Privatization Advisory
 Established itself as a premier player in a short time
 Handled over 80% of all major transactions taking place in Pakistan.

Commercial Banking
Middle Market (customers with annual revenue of more than US$ 5 mn)
 Leading position in a competitive market with US$ 350 mn portfolio
18 branches, 1500 customers

Consumer Banking
Personal Loans, Auto Finance, Consumer Durables, Housing Finance and Balance
Transfer Facility
VISA Debit Card, Credit Card & CarToCar launched in 2005, 2007 & 2008 respectively.

Treasury
Money market, Forex and Primary dealer in government paper
New products launched: Derivatives (Interest Rate Swaps, FRAs, etc.)

Domestic Subsidiaries
 Asset Management
Launched Income, Stock Market and Multi Assets Funds.
 Habib Currency Exchange (Pvt.) Ltd.
Sale/purchase of foreign currency & remittances.
  First Habib Modaraba
Leasing business with annual growth of over 15%.

Introduction of Human resource Management

department of HBL:

Human Resource management structure:

The HRM department plays an important role in value of any company. HBL has very active and
one of the best HR department in Pakistan as well as world wide. The structure is as the
President is assisted by ten Senior Executive Vice-Presidents and a staff of 29 Executive Vice
Presidents, 154 Senior Vice Presidents, 420 Vice Presidents, 831 Assistant Vice Presidents, 2350
officers Grade-I, 4108 officers Grade-II, 3364 officers Grade-III and 10658 Clerical/Non-
Clerical employees. The total staffing as per 1999 balance sheet figures is 23022. 

Strategic planning of HBL:

HBL uses two types of Corporate-level strategies

 Diversification strategy

 Geographic expansion strategy

Diversification Strategy: It implies that HBL will expand by adding new service lines.
With the passage of intervals HBL is used to introduce new banking services.

Geographic expansion strategy: It takes the company abroad. Acting upon this strategy
HBL has been expanded abroad. The abroad branches are mentioned above in introduction
section. HBL is planning to expand its business and branches in more countries.

Business level strategies used by HBL are

  Cost leadership

 Differentiation

 Focus

Cost leadership: HBL aim is to become low-cost leader in banking sectors that is why HBL
is providing effective services in low cost than other banks in Pakistan.

Differentiation: HBL’s strategy is to provide unique banking services to its customers in

banking sectors to make itself valuable for its customers.

Focus: HBL provides banking services to its customer in that way that customer cannot get that
services from other competitors.

Functional Strategy:

HBL identifies basic courses of action that each department pursues in order to get basic goals
and objectives of HBL. Harmony of departments towards HBL’s single goal makes it unique in
the competitive market.

Job Analysis:

The procedure for determining the duties and skill requirements of a job and the kind of person
who should be hired for it is called Job analysis. Job analysis is every important as job analysis
information is used in Selecting and recruiting, compensation, performance appraisal, training
and in resolving other issues which HBL faces. HBL takes Job analysis services from Sidat
Hyder Morshed Association (SHMA) which is the biggest HR consulting firm in Pakistan. The
methods which are used in collecting job analysis information are

 The interview

 Questionnaires
The Interview for job analysis:

Interview is a big source in collecting information in the job analysis. Individual employees,
group of employees and supervisors with vast knowledge about jobs are interviewed. The format
of interview is Structured and unstructured. In structured interview a set of sequence of questions
are followed by interviewers and in unstructured type of interview the interviewer pursues points of
interest as they come up in response to questions.

Questionnaires:

In questionnaire the employees solve the fill out questionnaires to describe their job-related
duties and responsibilities. The formats of questionnaires are either structured or open ended.

Quantitative job analysis techniques:

Following methods are also used in job analysis which are called quantitative job analysis
techniques

The position analysis questionnaire (PAQ):

A questionnaire used to collect quantifiable data concerning the duties and responsibilities of
various jobs.

The Department of Labor (DOL) procedure:

A standardized method by which different jobs can be quantitatively rated, classified, and
compared.

Job description:

After getting job analysis information the next step is to describe job description which contains
the points of job identification, job summary, chain of command relationships), responsibilities
and duties, standard occupational classifications and standard of performance and working
conditions.
Job specifications:

After formulating job description the next step taken is job specification in which the traits of
employees are defined who are assumed suitable for the job.

HR manual contains five processes

1. Selecting and Recruiting

2. Training and Development

3. Performance Appraisal

4. Compensation

5. Employee relation

1. Selecting and Recruiting:

The recruitment and selection process starts with employment planning. This process of deciding
what positions the firm will have to fill, and how to fill them. Personnel or employment planning
embraces all future positions, from maintenance clerk to CEO.

Selecting and recruiting process according to HBL

The diagram below represents the process on which HBL’s selection is based. This gives an
overview to potential candidates as to the steps involved in becoming a part of the HBL team.
In recruitment process first of all planning session is occurred, in planning session it is
determined that which section HBL will have to fill and how to fill. If there is a vacancy of
executive job then succession planning is done for filling that vacant place.
Analysis of positions and requirement:
After planning it is analyzed that which position is going to be filled and the requirement is
analyze by job analysis.
Identify candidates:
HBL identifies its candidates by developing the criteria of job description and job specification
and acting upon these criteria job vacancy ads are spread through different Medias like
newspapers and internet.
Outside sources:
HBL uses outside sources for recruitment which are
 Advertising
1. Newspapers (Daily Jung, Nawa-e-Waqt, The Nation, Dawn and Daily Khabrein etc)
2. Trade and professional journals (Aurora Magazine)
3. Internet job sites (rozee.pk)
 Outside sources of candidates:
1. Sidat Hyder Morched Association works for outsourcing for HBL.
2. College recruitment
3. Employee referrals
4. Walk-ins
Finding internal candidates:
1. Job Posting
2. Rehiring former employees
Prescreening and short listing:
Many candidates apply for job in response to vacancy ads by submitting their CVs. Selection
board goes through those CVs and selects those candidates which initially fulfill criteria of
selection board. After prescreening selection board short lists the candidates who are considered
most suitable for job at initial level on the basis of their resume.
Test/ interview:
In this process short listed candidates are called for test and interview according to nature of their
applied jobs.
Selection Interview:
Selection interview is conducted for short listed candidates. A selection interview is the
procedure designed to predict future job performance on the basis of applicant’s oral responses to
oral inquiries.
Formats used in selection interview:
 Structured/Directed
 Unstructured/Non directed
Modes of Interview:
 Penal interview
An interview in which a group of interviewers questions the applicant.
 Structured sequential interview
An interview in which the applicant is interviewed sequentially by several persons; each rates the
applicant on a standard form.
Types of questions:
 Situational:
A series of job-related questions that focus on how the candidate would behave in a given
situation.
 Job related:
A series of job-related questions that focus on relevant past job-related behaviors. These types of
questions are asked from those candidates who have past experience of job.
 Stress:
An interview in which the interviewer seeks to make the applicant uncomfortable with
occasionally rude questions that supposedly to spot sensitive applicants and those with low or
high stress tolerance. These sorts of questions are asked according to high designation of
candidate.
 Puzzle questions:
Recruiters for technical and finance job use questions to pose problems requiring unique
solutions to see how candidates think under pressure.
Testing:
Organizational performance always depends in part on subordinates having the right skills and
attributes. Keep in view this point HBL tries its level best to hire highly skilled and suitable
employee for each job. For judging these skills HBL conducted some tests of employees on the
basis of
 Reliability
 Test validity
The consistency of scores obtained by the same person when retested with the identical or
equivalent tests is called reliability and the accuracy with which a test and interview what it
purports to measure or fulfills the function it was designed to fill is referred as validity.
Types of test:
Generally two types of tests are taken in HBL
 Tests of Cognitive ability
 Physical tests
o Cognitive test abilities consists of
1. Intelligence Tests
Tests of general intellectual abilities that measure a range of abilities, including memory,
vocabulary, verbal fluency, and numerical ability are intelligence tests.
2. Aptitude tests
Tests that measure specific mental abilities, such as inductive and deductive reasoning, verbal
comprehension, memory, and numerical ability are aptitude tests.
o Tests of physical abilities
Tests that measure static strength, dynamic strength, body coordination, and stamina are
physical. Job related to guards and deliverers go through this sort of test.

HBL adopts recruitment process as

  Entry level programs
 Experienced professionals
 Campus recruitment
 Rehiring

Entry Level Programs:

HBL’s Entry-Level Programs are structured to ensure that you will quickly assume responsibility
for concrete tasks and important projects.  Rotational assignments across different business units
provide a comprehensive and valuable experience in a relatively short amount of time.
Experienced Level Program:
HBL recruits experienced professionals in all areas of the bank and encourage the creation and
pursuit of innovative ideas. HBL’s dynamic work environment offers diverse opportunities to
stimulate ongoing employee needs and supports career enhancement opportunities. HBL
encourages you to explore this section to find out about current job openings and how to submit
your resume.
Campus recruitment:
HBL is proud of its ability to nurture individuals and empower them to hone their talents. HBL
size gives itself the unique ability to provide fast growth and significant responsibility early on
in a career with multiple avenues to reach the top.
As part of HBL’s human resource strategy, HBL visits various universities across the country to
induct & groom fresh business graduates every year. Enthusiastic and talented youth form the
backbone of its banking operations and are nurtured to become future leaders at HBL.
To attract the best young talent, HBL’s resource department employs a pro-active strategy. HBL
actively participates in campus seminars by giving presentations that highlight HBL’s
background, vision, mission, values, recruitment & selection process, future career prospects
and overall business strategies. HBL hires fresh talent on a permanent basis and offer a wide
range of career opportunities across all functions, including Finance, Marketing, Operations,
Information Technology and Human Resources.
Rehiring Former employees:
It is an internal hiring source. Rehiring the former employees is the process in which HBL
rehires the former employees. But this process is practiced very rarely.
Final Selection:
After going trough all the processes the best candidates according to HBL’s selection boards are
selected.
Orientation:
Just after final selection and before starting of training process orientation is conducted for
selected employees in orientation new employees are provided with basic background
information about the HBL the basic contents of successful orientation are
o Information on employee benefits
o Personnel policies
o The daily routine
o Company organization and operations
o Safety measures and regulations

2. Training and development:

Training is the process of teaching new employees the basic skills they need to perform their jobs
and development is result of that training.
For training and developing HBL follows five steps process of training and development
 Needs analysis: Identify job performance skills needed, assess prospective trainee’s
skills, and develop objectives.
 Instructional design: Produce the training program content, including workbooks,
exercises, and activities.
 Validation: Presenting (trying out) the training to a small representative audience.
 Implement the program: Actually training the targeted employee group.
 Evaluation: Assesses the program’s successes or failures.
 Task analysis:
In this area a detailed study of a job to identify the specific skills required, especially for new
employees are analyzed.
 Performance analysis:
After analyze the main tasks required in performing jobs it is verified that there is a performance
deficiency and determining whether that deficiency should be corrected through training or
through some other means (such as transferring the employee). If there is found some deficiency
in performing job then training is highly recommended to recover deficiencies.
Training methods used by HBL:
 On-the-job Training
 Off-the-job Training
 Apprenticeship Training
 Informal learning
 Effective lectures
On-the-job Training:
Having a person learn a job by actually doing the job is OJT. Methods of OJT are
– Coaching or understudy
– Job rotation
– Special assignments
– Action Learning
Coaching or understudy: It is the OJT method in which employee is coached and taught by
profession that how to do the job in order to meet HBL’s goals and objectives. At managerial
level the trainee works directly with a senior manager or with the person he or she is to replace;
the latter is responsible for the trainee’s coaching.
It is done at all levels of job. New employees are trained through coaching and old employees
are also trained through this method like when some new innovation is introduced old employees
are trained in order to handle that new innovation. In 2008 all managers have been trained to
operate Misys Software (Automation of service provision and book management).
Job Rotation: Moving a trainee from department to department to broaden his or her experience
and identify strong and weak points. Job rotation is usually done at managerial level. HBL’s
Manager Associate (MA) program is used for job rotation training.
Special Assignments: Special assignments are also given to employees for special training.
These assignments are actually related to tasks within the branch by achieving those tasks
assigned by trainer, employee get training.
Action Learning: Management trainees are allowed to work full-time analyzing and solving
problems in other departments. This OJT method is just for managerial level employees.
Off-the-job Training:
It is the method which is opposite to the OJT. In this method employee does not get training at
his/her work place. This method of training is only for managerial level employees. Off-the-job
training methods are
 Case study method
 Outside seminars
Case study methods: special case studies are given to employees which contains some dilemma
about banking sector. By solving those case study problems employee gets training to take bold
and effective decision in crucial situations.
Outside seminars: HBL encourages its employees to participate in the seminars arranged by
banking sectors not just in the Pakistan but also beyond the boarders. By participating in outside
seminars employee gets authentic knowledge about the new horizons of banking sector which is
useful for HBL and makes it leading bank in Pakistan.
Apprenticeship Training:
A structured process by which employees become skilled workers through a combination of
classroom instruction and on-the-job training. It is actually combination of OJT and lectures
delivered to employees. It may be for both levels of managerial and fresh employee. In this
method employee is first given the lecture about his/her job and after that implementation of
lecture in practical field is observed.
Informal Learning:
The majority of what employees learn on the job they learn through informal means of
performing their jobs on a daily basis.
Effective Lectures:
Lectures about jobs are also delivered. These lectures are delivered to new employees as well as
senior level employees and managerial level too. In these lectures employees are prepared for
facing new challenges in the banking sectors and also told them how to achieve those challenges.
Succession Planning:
It is actually management developing program. Management development is attempt to improve
current or future management performance by imparting knowledge, changing attitudes, or
increasing skills. In order to achieve management development, succession planning is done.
Succession planning is a process through which senior-level openings are planned for and
eventually filled. The main purposes of succession planning are Anticipate management needs,
Review firm’s management skills inventory, Create replacement charts, Begin management
development. HBL’s Management Trainee (MT) program deals with succession planning. MT is
defined in the following section of Training and developing methods.

Training and development programs at HBL:

HBL uses following programs for training and development
 Management Trainee
 Management associate
 Cash officers
 Internships

Management Trainee:
HBL’s Management Trainee (MT) program looks for highly motivated individuals who exhibit
the potential to excel as future leaders. The program is geared towards providing challenging
work assignments complemented by a learning component for select individuals from reputable
universities. At HBL, the MT program offers extensive interactive classroom training, on the job
rotations and personal mentoring from senior management to provide a comprehensive learning
experience. The objective of the program is to realize potential and translate the experience into a
successful banking career.
Management associate:
HBL’s Management Associate Program is a training and rotational program focused on dealing
with branch banking requirements. It provides accelerated development opportunities across
HBL’s branch network of Retail, Corporate & Commercial banking.
During this program, candidates are assigned with challenging business scenarios to enhance
their critical and analytic skills. Another crucial element of the program ensures that managerial
skills are honed and developed. This provides associates with the expertise required to handle
supervisory and administrative tasks that will result in the development of successful business
managers.
Cash officers:
HBL’s Cash Officers Program catapults successful candidates to the front lines of the bank.
Candidates in this program are the bank’s ambassadors and must have exemplary skills in
dealing with clients. The program involves an extensive one-month training period based on
branch banking operations before placement in the branches. Energetic and focused graduates
from HEC recognized institutions with good communication and interpersonal skills qualify for
HBL’s Cash Officers Program. Before being placed at HBL branches, these individuals must
exhibit a proven ability to add value and act as agents of change.
Internships:
HBL’s Internship Program offers promising students with the exciting opportunity to apply their
classroom learning experience to real life corporate assignments. Through the program, internees
can support their career goals by using the internship as a launching pad for creating contacts
with professionals in the field and identifying their own competencies to build a successful
career with HBL.

3. Performance Management and appraisal:

Evaluating an employee’s current and past performance relative to its performance standards is
called performance appraisal.
A process that consolidates goal settings, performance appraisal, and development into a single
common system to ensure that employee’s performance is according to company’s aims is called
performance management.
Performance management and appraisal at HBL:
HBL’s performance management and reward systems ensure that goals are met in an effective
and efficient manner. HBL defines a clear path for you to contribute to the organization’s overall
goals, peppered with regular reviews and feedback to help you gauge your progress. At HBL
growth is not a function of time but rather of performance.  As your performance improves, the
role that you play within the organization will accelerate to reflect your input. HBL generally
uses BARS (Behaviorally anchored rating scale) it is an appraisal method that uses quantified
scale with specific narrative examples of good and poor performance.
Performance Appraisal form of HBL:
HBL’s performance appraisal form contains two sheets, one is FORM B2 and other is FORM
B3. FORM B2 contains appraisal for Clerical staff at branch or Field Offices there are two main
headings Area/factors and level of achievement points. Level of achievement point contains five
points ratings A (4), B (3), C (2), D (0-1) and N/A. AREA/factors contains five kind of factors
which are
 A-Productivity
 B-Individual \attributes
 C-Technology
 D-Customer Service
 E-Personal

Each area is further categorized in different factors.

Area A-Productivity contains
1. Job knowledge
2. TD clearing/Bills Ledger Posting
3. Timely Lodgment of Clearing
4. Followed Return unpaid cheques
5. Nothing of Stop Payment Instruction
6. Volume of Work Handled
7. Accuracy & Attention to Detail
8. Willingness & Ability to work with other units/people
9. Ability to write Effectively
10. Adoptability of new assignments
11. Deposit Mobilization /saving/current CPDC etc
12. Number of fresh account arranged
13. Reduction in customer complaint
14. Hajj application target
15. Timely Balancing of branch ledger/books etc
16. Accuracy in counting/cash handling & counting speed
17. Receiving of payments of utilities
 18. Dispatch of requisite statements
19. Maintenance of guns in order
20. Zero theft
21. Delivery of letter/Dak in time
22. Quality of work
23. Speed of work
24. Filing and record keeping
25. Typing/data entry speed
26. Typing/data entry accuracy

B-Individual Attributes contains

1. Professional/technical knowledge & competency
2. Initiative (eagerness to learn, enlarge knowledge)
3. Reaction to responsibility
4. Sense of responsibility
5. Oral communication Ability
6. Written communication ability
7. Sorting of notes
8. Cash excess/shortage situation
9. Performing under pressure
10. Ability to work without supervision
11. Willing to work after office hours

C-Technology contains
1. Knowledge of computer
2. Knowledge of internet & E-mail

D-Customer contains
1. Courtesy to Customer
2. Rapport with customer
3. Creative response to customer needs
 4. Business sense (maximum revenue/ minimum cost)

E-Personal contains
1. Health & energy
2. Appearance
3. Integrity & loyalty
4. Grooming
5. Manner of speech
6. Attitude
7. Intelligence
8. Leave record
9. Attendance record
10. Punctuality

Each factor is marked tick against level of achievement and in the end total points scored is
written in the specific box. Also the signatures of appraisee and appraiser are taken.

FORM B3:
This form contains two big boxes. First box is about Development Plan/ Supervisor comments.
In this box supervisor gives comments about appraisee strengths and further appraisee’s
development needs (need to improve academic & professional qualification).
Second box is called overall assessment box. In this box appraiser gives the overall performance
grade to appraisee according to B2 form and the grade is given in form of A, B, C, D. Then
comments of appraisee is also taken in form of agree/disagree. Then overall assessment is
reviewed by reviewer and reviewer gives its comments too, but it is not necessary. After it final
acceptance of appraisee is also taken along with signatures.

Following is some brief detail about appraisal areas

A-Productivity:
Productivity is actually about the performance of employee in the clerical field. It indicates that
how much effectively and efficiently an employee performs its duty and how much employee is
committed with the achievement of organizational goals and objective. Following factors of
Productivity are defined briefly;
Job knowledge: It is first and basic factor of productivity. This factor shows that how much
employee has awareness about his/her job.
TD clearing/Bill ledger posting: This productive factor indicates the ability of employee about
ledger posting of HBL. His shows how much an employee is expert and clear in indicating or
posting of ledger regularly.
Timely Lodgement of clearing: This is the job in which the employee of HBL is to present the
cheques of other banks, which are given by customers for depositing in their accounts in the
State Bank before 10 o’clock. In this assessment it is determined whether employee is punctual
in presenting cheques to State Bank in the specific time.
Follow return unpaid cheques: In this job the employee is to return the unpaid cheques to the
bank before 3 pm which are rejected by State Bank due to some incompleteness like absence of
signatures, inefficient money in the account of customers or other reasons cause refusal of
cheques by State Bank. In performance appraisal it is assessed that whether employee is
fulfilling his job well or not and on the basis of his performance he is given points.
Noting of Stop payment Instruction: In this job employee notes the stop payment instruction
due to lose of cheques by customer. If customer loses his/her cheques then he/she has to tell
about lost cheques to the branch of HBL and in response the employee is to note down the stop
payment and also feed this information in the computer for database record in order to restrict
misuse of the lost cheques.
Volume of work handled: In this assessment it is noted that how much volume of task or work
is being handled by employee and on the basis of volume of work handled the employee gets
points of achievement against the block in appraisal form.
Accuracy & attention to detail: In this job it is indicated that how much an employee is
attentive and accurate in noting down the job whether he/she is performing at desired level or
not.
Willingness and ability to work with other people/unit: In this section it is noted that how
much the employee is willing and how much he/she has the ability and quality to perform well in
the group of people or unit and it is determined is he/she is able to perform in the group or not if
a group task or assignment is given.
Ability to write effectively: In this assessment it is noted that how much employee has effective
skills of writing which matters in reporting or hand written application.
Adoptability of new assignments: In this job it is determined how much employee is able adopt
new assignments related to his/her job. Does he/she have ability to adopt new challenges in
his/her job?
Deposit Mobilization/saving/current CPDC etc: In this factor it is assessed that how much the
employee is responsible for depositing certificates of saving, current and CPDC (Crore Pati
Deposit Certificate) purchased by customers.
Number of fresh account arranged: In this job the employee is to arrange new accounts by
feed the data in the database system and issuing cheques books. In this assessment it is appraised
that how much the employee has arranged newly opened accounts and on the basis of number the
employee is granted with grade on the appraisal sheet.
Reduction in customer complaint: This job is related with customer service member. In
appraisal it is defined how many complaints of customers are reduced by employee.
Haj application target: This job is related with Islamic Banking section of HBL. Each
employee is given with the target of submission Haj application. On the basis of submitted target
Haj application employee gets point ratings on appraisal form.
Timely balancing of Branch Ledger/books: In this job employee has to balance the branch
ledger on the daily basis. On the basis of balancing of ledger in time the employee is given grade
points on appraisal sheet.
Accuracy in counting/cash handling & Counting speed: This determines that how much
employee is able to count or handle the cash efficiently and how fast cash is counted by the
employee.
Dispatch of requisite statements: In the bank the employee of related job is to dispatch the
balanced Ledger/Books, financial statements and number of accounts before authority of branch
on monthly basis. While appraising employee it is defined that how much he/she is efficient and
punctual in his/her job.
Maintenance of Guns in Order: In this assessment it is determined that how much the
employee is active in performing the order of his/her head. The obedience of the employee to
his/her head in the bank task is counted in this assessment.
Zero Theft: In assessment the employee is assessed according to handling of his/her honesty in
his/her job. It is counted that how much he/she has been committed with theft in performing job.
Delivery of Letter/Dak in time: This job is about the deliverer of letter/Dak to the one bank to
other banks, one branch to other branches of HBL and dispatch of cheques to State Bank. The
employee is graded with points according to punctuality in delivery in the appraisal form.
Quality of work: In this assessment the employee is given with grade points according to
quality of his/her performance in his/her specific job.
Speed of work: In the assessment of job this factor shows that how much fast and efficient an
employee is in performing his/her task related to his/her field.
Filing and record keeping: In this job the employee is to file and record the data of customer
for database. According to effectiveness of record keep employee gets points in appraisal form.
Typing/Data entry speed: This is about computerized record keeping. In this factor it is
assessed that how much the employee has speed in typing data.
Typing/Data entry accuracy: In record keeping it is noted that how much accurate the
employee is in typing data for database.
B-Individual Attributes:
This area of factor is about the employee’s attribute or properties in performing job.
Followings are factors of individual attributes;
Professional/technical knowledge & competency: In this attribute it is checked that how much
the employee has professional skills about his/her job and how much he/she is competent has
technical knowledge about his/her job in the bank.
Initiative (eagerness to learn, enlarge knowledge): In this factor it is noted that how much
employee is eager to learn new thing about job and how much he/she is interested in enlarging
knowledge of job. Initiative factor is very important in job field cause initiate new task in the
field is good attribute of professional employee.
Reaction to responsibility: In this attribute it is assessed that how the employee reacts when
some responsibility is given to him, it is noted whether he/she reacts warmly and professionally
or considers new responsibility as a burden.
Sense of responsibility: in this attribute it is assessed that how the employee takes the
responsibility whether takes it professionally and serious or carelessly.
Oral Communication Ability: In this factor it is assessed that how much employee has ability
to communicate orally with the customers and head. Speaking skills are counted in this appraisal.
Written Communication ability: In this attribute the ability and writing skills of employee is
assessed.
Sorting Notes: In this factor the ability of sorting and handling of currency notes are judged. It is
assessed that whether employee is sorting notes according to sequence.
Cash excess/shortage situation: Cash handling is noted in this factor. It is a negative appraisal.
Some time employee gives or receives more or less amount by customers, if he/she gives more
than real amount then he/she has to compensate this money from his/her own pocket.
Performing under pressure: In this factor the performance of employee is assessed under
pressure situation. It is checked that how much he/she is capable and confident to perform under
pressure circumstances.
Ability to work without supervision: In this factor it is checked that how much the employee is
able to perform his/her duty efficiently without supervision and it is also assessed that whether
supervisor has to keep eye on his/her to get the work one.
Willing to work after office hours: In this factor it is noted that how much employee is
dedicated towards his/her job even after office hours.
C-Technology:
This is the area of appraisal in which the capability of using of technology of employee is
assessed. Followings are major factors of area of technology
Knowledge of computer: The knowledge of using of computer is counted in this factor.
Knowledge of e-mail & internet: The knowledge of internet and sending/receiving is assessed
in this factor of technology area.
D-Customer Service:
This is the area of appraisal in which the motivational and dedicated level of employee toward
customer service is assessed. Followings are factors of this area;
Courtesy to customers: in this factor of customer service area it is assessed that how much
employee is courteous towards customers, whether he/she is deals with customers politely or
harshly.
Rapport with customer: In this factor it is assessed that whether employee cashes the cheques
of customer within time or he/she makes customers wait due to his/her personal gossips etc.
Creative response to customer’s needs: In this factor it is judged that how creatively and
professionally the employee responses to customer’s needs regarding banking system.
Business sense: This factor determines the sense of employee regarding business that whether
he/she knows about economic terms and their uses.
E- Personal:
This is the area in which personality of employee is evaluated. Factors of this area are as
following;
Health & Energy: In this factor of personal area physical and mental health of employee is
evaluated and also the use energy of performing in job.
Appearance: In this factor the appearance of employee is counted. The dress code and manner
of dressing is assessed.
Integrity and Loyalty: In this factor the loyalty and integrity of employee is assessed. The
dedication and commitment of employee while performing duty is counted. Honesty and
faithfulness with job and company is also assessed.
Grooming: In this factor the development and grooming of employee’s personality is counted.
Manner or Speech: In this factor of personality the manner of speech or manner of talking to
others are assessed. Manner of speech should be polite and understandable.
Attitude: In this factor the employee gets point on the basis of positive and professional attitude
in his/her personal life.
Intelligence: In this factor of personality the intelligence of employee is evaluated.
Attendance record/Leave Record/Punctuality: The employee is given grade points on the
basis of regular and timely attendance according to time table.

4. Compensation:
The salaries, rewards, bonuses, and incentives on the basis of job and performances are
compensations.
Compensation at HBL:
HBL’s focus is on attracting, developing and retaining the best in the business by offering
market driven compensation and benefits packages. HBL’s compensation and benefits strategy
combines the need to maintain a high performance culture along with market competitiveness. 
Annual benchmarking exercises are conducted to stay abreast with industry standards. According
to performance each employ gets benefits and compensation. Time does not matter only
performance matters at HBL. Employees are paid in two forms
 Direct payments
 Indirect payments
Direct financial payments: Pay in the form of wages, salaries, incentives, commissions, and
bonuses.
Indirect financial payments: This mode of payment is not related to cash payments like medical,
insurance, residence, car, car fuel etc.

5. Employee relation:
Employee Relations involves the body of work concerned with maintaining employer-employee
relationships that contribute to satisfactory productivity, motivation, and morale. Essentially,
Employee Relations is concerned with preventing and resolving problems involving individuals
which arise out of or affect work situations.
The environment at HBL is cultural, ethical and challenging that that encourages creativity and
commitment among employees. HBL fosters a work environment where employees can realize
their potential whether locally or in the international arena. Thus, HBL enables its employees to
achieve their professional goals while keeping in synch with the bank’s overall objectives.
HBL believes in two skills for employee relation
 Interpersonal communication
 Conflict management
Interpersonal communication skill: At HBL the first skill for managers to understand and
practice is interpersonal communications, because it is the foundation for all actions in the
workplace and it allows the manager an opportunity to build relationships with the overall
workgroup without alienating anyone in the work environment. Working with diverse groups of
people requires a tremendous amount of interaction. If these interactions are positive, they can
help create the right workplace climate, attitudes, beliefs and behaviors. Keeping in view these
all points interpersonal HBL emphasizes on strong interpersonal communication skill for
effective accomplishment of goals.
Conflict management: In HBL the second skill for managers to leverage, is conflict
management. It is actually conflict resolving approach. Learning to leverage this skill helps in
resolving employee relations issues quickly and effectively, and creates greater satisfaction with
the workgroup. In this skill manager let his/her subordinates to speak and say whatever they feel
during working with manager. Manager cares employees emotions and feelings.

Our Suggestions for betterment of HBL:

 HBL is Pakistan’s largest bank. It should eliminate the cost of online banking since they
charge cost of online transaction or transfer.
 HBL is initiator of Tele-banking service which is unique service in Pakistan. Through
this service we can get information about our personal account on telephone. Most of
times customers find the service operator busy. HBL should increase their tele-banking
service centre.
 HBL has begun campus recruiting which provides youngsters to come ahead but their
campus recruiting process is so slow. They should increase their pace of hiring
youngsters as other banks are doing successfully. They should provide more and more
opportunities to fresh graduates and masters.
 The process of promotion at HBL is slow so they should maximize the promotion process
which would be source of motivation for their employees.
 At many occasions HBL’s ATM network gets slow and their AT machines don’t allow
for transaction they should renew their ATM links in order to make their customers
avoiding inconvenience.

Thank You