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Chapter 1


What is Bank:

This word “bank” has been derrived from the word “banque” or bancus means bench,
officefor the observance, lending and exchanging of money . “ Some authorities have the
view that Bank is derived from the Germen word which the meaning of joint stock
fund.”The bank is an organization that collect money from one perssson and give to the
other person (Governmental, individual person, businessman). Bank collect and give
money on interest . Banks are differentiate according to their scope of activity;

Types of banks:

Types of banks are as follow.

 Comercial banks.

 Industrial banks.

 Agricultural banks.

 Saving banks.

 Exchange banks.

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 Central banks.

 Cooperative banks

Comercial banks:

Commercial banks perform the routine duties of banking system. This type of bank

collects1the money from1the people and invest this money as a loan for

development1purposes. Commercial bank plays an important role in the economies better

performance of a country by performing functions under as follow:

 collecting deposits.

 Giving loans and advances money .

 Collection of utility bills.

 General utility services

History of banks:

Bank is very ancient; history of bank is drawn from first as 2000 B.C. This word used to

kept money of the people in temples. Early peoples used to keep strong mattle safe to

safe the money and other value things of the people. People which have more money

kept their money in these safe. That is the first reign in the histor of bank .

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Later on this reign people began to give receipts for their money which they deposited in

these safe. “These receipts were used in payment of debt”. That was the 2nd reign

towards the history of bank.

When people realized that they have more money from their use then they start giving

their money to some business mans and trders who need and they request for loans to

investment purpose. This is a new business which popular speedly and peoples get more

profit and they do not charges interest on their money because thry want more customer

therefore they give interest mony to depositors they do that for attracting peoples . That

was the 3rd reign to the history of bank.

These business man have strategies to allow them to take his extra money which meet the

consumer’s needs. “This facility is called overdraft and they used to keep some portion of

money for this purpose.” After a long while there was many problems and confusion in

solving some banking problems .That failure reason to their part of money taker to

return back this money.

For solution of this problem now people realized that their should ba institution that

called bank which also control the banking system. For this purpose a conference is held

in “1548 at Nuremberg”. There a decision were taken in approval of staring an institution

that overcome all the problems of banking activities are banking sector.

“The first bank was establish in Geneva in 1587 Later on many other banks were

established will the same objective.”

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History of HBL:

The Habib Bank Ltd is a no one bank in Pakistan. A great network of over “1600”

country branches that are greatest in Pakistan and 55 international outlets has enabled

HBL to1provide complete1services that1meet customer1needs.

Now a days HBL performing a back bone role in Pakistan's financial and economic

growth. “It has come a long way from its modest beginnings in Mumby on August 25,

1941 when it started operations with a fixed capital of 25,000 rupees.”

Quaid-e-Azam Muhammad Ali Jinnah impressed its first performance and requested this

Bank totransfer their banking operations in Karachi after the independence of Pakistan.

HBL established their head office in Karachi on August 7, 1948 and they become a sign

of pride for the pakistan and its better performance become pride for the peoples of


HBL has been a producer in providing new banking facilities. These are the firs bank

which install the first processor computer in banking sector of Pakistan in which they

install the first ATM machine in pakistan and recently “internet banking services in

almost 1600 domestic branches”.

HBL long occurrence in Pakistan's financial , economical and commercial life that they

has remain un chang till the last years. “The strength of its brand is represented by its

Head Office building that has controlledinKarachi's skyline for35Years.”

HBL Management have greater result which continue help out to build their track record

and their quest for brilliance they try to complete the needs of their customers and their

employees for both. At HBL their goals to ensure their customer’s pleasure by giving

them high quality and better facilities of bank. That was possible with the skill of their

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employees which get better skills through training and motivationa lectures these lectures

are very help full for betterment of their employees they give their full potential at their

work that’s why HBL is a leading bank in Pakistan banking sector.

Values of HBL:

 Integrity:

“Integrity means a synergic approach towards durability ofour core values. United

with the force of values and integrity, we form a network of a well united team”.

 Meritocracy:

“At every level, from selection to advancement, we have designed a system of

HRpractices, based on objectives throughout the organization.” HBL are able to

get a better level for good performance at any place of the world this is an

organization which are very great in all operations.

 Team Work:

“Our team strives to become a cohesive force to offer your customer good level

of service beyond your expectations.” HBL get this force from participating in

different evenys which are socially organized im organization like training and

collective team efforts and attempts theres a common goals that give spirit to

employees to share their efforts and the strength to face failures.

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 Innovation culture:

HBL have aim to be a step forward looking towards new and innovative ideas

and giving respect and reward to the employees and leaders of their employees

and innovators for different changers.


 To use private and public savings rate to provide a partial Organization and

proven to be promoting industry, agriculture and the social and economic order

through the involvement of private sector and government.

 Relief under that areas of development and create employment opportunities for

the people, especially in rural areas of countries continue to guide and lead the

people of Pakistan foreign serve effectively, and profitably invest foreign reserves

in the province and in other parts of Pakistan.

 Create a sound file to use the money to invest in existing and new groups

especially in developing high techs export oriented engineering project to ensure

that the potential returns.

 Some cabinet portion of the land in the capital market of Pakistan and local

subscribers nations resources in the stock exchange of the country and eventually

paving the way for establishment of the stock market in the country.

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When HBL Barnala Branch is Established:

This Branch was established in 2014 to facilitate business community in Barnala, and

provide a list of general banking for citizens and nearby areas .It is an on-line bank.

Branch code is 2379.

Branch detail:

This brach located in main bazar of Barnala . Thats why it is a ver busy branch .branch
manager’s name is Mr Zafer Iqbal its operational manager name is Mr Qasim ali and
teller name is miss tuba yaseen. 2379 are the branch code .

Chapter 2


Acceptance of deposits:

This bank accepted deposits of this type of account is as follows

a. Current account

b. Saving account

c. Fixed deposit account.

d. Current business account

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Advancing of loans:

This bank give this types of loans are as follow

a. Loans & advances

b. Cash credits

c. Provision of karze-e-Hasna

Agency functions:

Its these services as

 Collecting of cheques.

 Transfer of money from one place to another.

 Handling of Pensions

 Acting as an agent for customers

General utility services:

 Utility Bills collection

 Travelers Cheques issue

 Making of drafts


Presedent or CEO

Board Of Directors

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Head of all departments

Senior vice presedent

Vice presedent

Assistant vice presedent

Grade 1 oficer

Grade 2 officer

Grade 3 officer

Clerical staff

Non clerical staff

Board of Directors:

Name Designation

Sultan Ali Allana Chairman

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Nauman K. Dar President & CEO

Moez Jamal Director

SajidZahid Director

Mr. ShaffiqDharamshi Director

Agha Sher Shah Director

Dr. NajeebSamie Director

Name Designation
Mr. Nauman K. Dar President & CEO
Mr. AamirIrshad Head - Corporate & Investment Banking
Mr. Abbas Hasan Head - International (Europe, Middle East
& America)

Mr. AbidSattar Head - International (Asia & Africa)

Mr. Abrar Ahmed Chief Innovation & Financial Inclusion

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Mr. Anwar Zaidi Head - Financial Institutions & Global
Trade Services

Mr. FaiqSadiq Chief Internal Auditor

Mr. MirzaSaleemBaig Head - Islamic Banking
Mr. SalahuddinManzoor Global Treasurer
Ms. SimaKamil Head - Branch Banking
AamirMatin Head Technology Strategy
Mr. Jamal Nasir Head - Human &Organisational
Ms. Nausheen Ahmad Company Secretary & Head Legal
Mr. NaveedAsghar Chief Marketing Officer
Mr. RayomondKotwa Chief Financial Officer
Mr. RizwanHaider Chief Risk Officer
Mr. SalimAmlan Chief Compliance Officer
Mr. Tariq M. Akbar Head - Global Operations
Mr. Khalid MohsinShaikh Head - Remedial and Structured Cr
Mr. Zahid Parekh Head Special Projects Islamic Banking

Common Banking Department:

This section includes the following sections under.

 Deposit section.

 Clearing section.

 Remittance section.

 Accounts section.

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Opening of an account:

There are various requirements that are to be checked for opening a current or saving

account in the Bank of these requirements is as follows.

Application Forms:

The customers fill this Form. It is a popular request from a customer to the bank to allow

that person and work account at the bank branch.

Signature of customer:

When the Bank show about customer bank has agreed to open account. The bank officer

to get the signature of the customer on the signature in a book, or a card.

Beginning deposits by customer:

The Banks of the current account and please Saving Account in open surgical Rs1000

This amount is the perfect balance to keep account holders in the Bank.

Account Operating:

“When account is opened in Bank, then Bank gives check book and passbook to the


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Withdraw his money:

Withdrawal is conduct by the Bank. A new checkbook is issued when the existing

check1book ends only with 1 receipt of the application check attached to the checkbook

issued earlier.


The interest rate is allowed on deposit in the saving of bank accounts is necessary in the

Bank. This rate is able to change. The amount of interest is calculated for each calendar

month in the lowest credit balance of an account between the close of the first day of a

month and the end of the month and only in each full sum of ten rupees.

Each account has the interest calculated as above is added to the balance of each account

as of December 31.

Account transfer:

The account can be transferred to any HBL branch without charge. If a customer wants to

transfer his account, he returns his pass book in person or sends it to the Bank and writes

a request for the transfer of an account.

Account closing:

It is simply done by letter or request to close the account, the unused check are also
returned at the same time. Trade is the transfer of the ownership of goods or services
from one person or entity to another exchange for other goods or services or for money.


The secret of the account of the client is the responsibility of all official service of the

Man in the Bank.

Banks accounts types:

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Saving accounts:

Savings Account is an account in which a customer gives his or her extra money or funds

to the banks that he or she saves from their travel expenses. This account can be

initialized giving a small amount of Rs. 1000. The lower age of interest is applied to the

balance of the savings account.

Current accounts:

The checking account is that account that the client gives his daily checks and is operated

by the businessmen. It can be operated by the minimum amount of Rs 5000 to Rs 25000

Any check can be given by the account holder for withdrawal or for payment. No interest

is charged for that account.


A joint account occurs when two or more of two customers have an account. People in

joint account are considered as a person.

Profit and loss sharing accounts:

This account is operated by a person, firm or organization depositing Rs. 1000 or higher.

This account holder will get profits out of their amount, or the account holder will take

care of the loss as this case may be so an individual is a participant in profit and loss. The

holder of this account can withdraw up to Rs.15,000 per month in case of higher

withdrawal seven days notice is necessary, but in practice have not seen it. This type of

account is operated with a system without interest.

Fixed deposits account:

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In that account an amount is deposited in the Bank for a fixed period of time. This fixed

period can be three months, six months, one year, two years, five years or more. The

Bank allowed a higher interest rate for a longer period of time. At the time of operating

an account the Bank issues certificates of deposit for the period in which the customer

can withdraw their amount before the specific time period but the excess profit paid at a

higher rate and the Bank will give loan against this certificate. The Bank is obligated to

pay interest on this account on the due date is monthly or quarterly or six months or


Deposits section:

Two main types of deposits, ie "current and savings". There are different shapes present

in the depot section.

i. Curent account form.

ii Saving account from.

iii Private or individual form.

iv Private firm account form.

In the above mentioned forms, the bank makes an agrement with his depositors.

Clearing sections:

Each Bank plays the role of payment and reception functions. Check the collections that

are drawn by banks for customers. Similarly, checks carried out at different banks and

deposited by the banks' own customers for collection within the city are known as

compensation. The reception and payment functions are performed mainly through the

compensation department. A compensation department can be defined as "A place where

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representatives of all banks meet to liquidate receipts and pay checks drawn from one

another." The Compensation Department provides the facility that can be specially

assigned, in case Of cross-checks.

There are two types of clearing.

i Outward clearing

ii Inward clearing.

Types of Clearing section cheques:

Transfer cheques:

These checks that are collected and paid for by the same HBL branch Mr. Javed is an

HBL customer of any branch and draws a check in favor of Mr. Nauman who is also the

customer of that same branch.

Transfer of delivery cheques:

The checks that are charged by two different branches of a bank that are in the same city.

For example, a person issues a check to B.o.P. Main branch, Gujrat in favor of any other

person who maintains an account in B.o.P. Rama UOG, Gujrat.

Clearance of an outer cheque:

When the beneficiary and the cashier of the check maintain their account in different

Banks, the Bank of collection in any of the following methods to.

 The bank can collect cash by sending its representative bank with checks. Not a

better way.

 second. The Bank maintains an account with the paying bank do.

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 Checks can be exchanged by customer representatives who meet at a fixed time

and at a fixed location. This is an efficient method of collecting and paying


Function of clearing in our Branch:

 The check is to collect from the customer and pay the money against your check

if the person is the regular customer of the bank then they collect the check

without any question if the customer is an outsider then all legal requirements are


 Place the methods of payment of checks on the branch and give for collection to

any other branch of HBL or any other member or member of the local clearing


Procedure of clearing:

Customers are provided with In-slip payment arrangements every time the customer

wants to pay any checks that are filled with slip and deliver the counter along with the


Remittance section:

That means the transfer of money or funds from one place / country to another place /

country. Two types are as follows.

 Inland.

 Home.


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Inland means a transfer of money or funds payable within the country. Can be classified

as low

 Within locality.

 Outside locality.

Within locality:

When a branch located in Gujrat is obligatory to send the drafts to any other branch that

are in the same city this process is known as within the locality eg HBL Main Branch

Gujrat sends any project to HBL UOG Gujrat branch.

Outside locality:

Outside the locality is a type of interior, its means that the money transmission outside

the city. That is, HBL. The main branch Gujrat sends any checks to that branch which is

located in Mandi-Bha-Uddin. It is done through Demand Drafts.

Demand draft:

Draft demand is a written order form by a branch of a specific bank drawn in another

branch of the same bank to pay money only to the order of the beneficiary's demand the

drafts are bought by the client and after receiving the money from the Bank Issues and

delivery. The customer who sends it to the recipient. In D.D the Banksdo does not

recover the charges as it is payable by the client. The Bank after the delivery of D.D. The

client also sends its own board called IBCO (Inter Branch Credit Order) to the branch

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office, mentioning all the details of the draft isued. Now the banker's check payble any

whare in Pakistan.

Account section:

Any business organization in matters of money. The bank also negotiates the money and

more about the money of the sincethe belongs to the depositr therefore, it is of

importance tokeep systematic and correctrecord.

Banks are commercial organizations and their main objective is to make profits therefore,

then the record of all income and expenses are kept correct. The system inculdes

ecnomic, political, social, cultural and technological system that are in operation in any


In H.B.L. The obligation to maintain the necessary accounting data and maintain updated

records has been assigned to the Accounts Department.

Banks do their routine work and trade in money that belongs to their depositors. The

accounts department holds great importance in banking because it maintains all

accounting records.

Account termenologies:

“The accountsdept maintains all the accounting records properly there are definite

accounting terms which are defined into the following.”


A summary ofdebit and credit transactionrelating to a similar nature or toan individual is

called an acount.

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Written documentsrecorded on apaper in respect of moneytransaction is calledvoucher.

General Ledgers:

Ledger is abook, where variousaccounts of different type are written.

Generall this book is in formcontaining several parts forseveral accounts.

Subsidery ledgers:

Where a main headoffice has got differentsub-head ofice its subsidiary ledger are


Books and stationary:

The account departmentuses the followingbooks & stationery

 Cash bookgeneral ledger

 Vouchers register

 Transfer bookregister

 Receiving cashier book

 Payingcashier book

 Supplementary sheets

 Differentvouchers

Function of account section:

“During the daily business of the branch, a number of cheqes are presented by customer

for cash payments cheques at the counter also new accounts are opened and cash is

deposited by the customers. “New vouchers are passed by thebranch by debiting, one

account andcrediting another account.

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Ensure thatduring the day all the transactionshave been recorded and theyare complete in

all respectsand are recorded inproper books by thebranch the record is doneon daily basis

and maintained byaccount section.

“The main functions of the account section of a branch are as follows.”

Balancing of a book:

Balancing the cash bookmeans all the transactions haveproperly been recording and there

is nomistake in any ofthese vouchers.

1. “During thedaily business of the branch, a number of cheqes are presented by customer

for cash payments cheques at the counter Also new accounts are opened and cash is

deposited by the customers New vouchers are passed by the branch by debiting, one

account and crediting another account.”

Ensure thatduring the day all thetransactions have been recorded andthey are complete in

all respectsand are recorded inproper books by the branchthe record is done on daily basis

andmaintained by accountsection.

The main functionsof the accountsection of a branch areas follows.

1. Voucher arangements.

2. JRC preparation.

3. Summary preparation.

Preparation of statements:

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“To check the performance of branches the Head Office requires statements from them

Through these statements the top management watch the progress of the branches and

they provide them necessary direction.”

Chapter 3


To fulfillthe objective that issocial economic natureofHBL perform following important


 Commercial Banking.

 Corporate Banking.

 Investment Banking.

 Retail Banking.

 Islamic Banking.

Comercial banking:

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“Organizations operating in the middle market contribute knowingly to the economy of a

country traditionally this sector was the grip of HBL’s business during the early 90s, with

the liberalizationof the economic sector inPakistan competition in the industryhardened

due to the emergence of new banks in the private sector”

They not only knew themarket but were also awarewith the shortcomings of HBL. Under

the newset-up, they were intelligentto address these shortcomings andbegin to target

HBL’s customerbase. With the beginning ofan alternative, HBLcustomers started

travelingto the newly establishedbanks this causing theloss of HBL’s marketshare.

During 2000HBL’s management decided tosolve this issue. Hence, CommercialBanking

was created tofocus on the business needsof the central marketcustomers. “On November

1, 2000 CommercialBanking came intobeing.” Now , 18 CommercialCenters, located at

Karachi, Lahore, Faisalabad, Sialkot and Gujranwala.


Two Goals of settingup CommercialBanking:

 First to stopthe loss of marketshare in the centralmarket;

 Second, to regainthat lost marketshare

The strategy accepted toachieve the above objective wasto position Commercial Banking

section asthe “Trade Finance Bank” for itscustomers. The basis behindthis strategic

decision wasto exploit on the existingmarketing knowledge& strong contactswith the

central marketcustomers, who wereloyal to the HBLbrand. The praduct line of

Commercial bankingincludes:

Fund base facilities:

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 Running Finance ( Working Capital requirements)

 Finance Against Packing Credit (for Pre-shipment)

 Finance Against Foreign Bills (for Post-shipment)

 Finance Against Imported Merchandise

 Finance Against Trust Receipt

 Demand Finance: Medium Term Loans

Impact of the steps :

The decision tosetup CommercialBanking has been productive.This is evidentfrom the


 “Improved customer interaction by the branch management has now become

possible after separation of marketing and operations at the branch level.”

 “Decentralization of Credit Authority and rationalization of the processes have

resulted in concentratedturn around time now decision making in this area is

possibly most efficient in the market place.”

 “Our strategy has allowed us to attain our first objective the trend ofloss in our

market share has been reversedWe now would be looking at rescue our market


Commercial Banking is making progress with improvement not only in terms of the

business figures but also in its environment. Renovation is being carried out in order to

give a professional appearance to all the Commercial Banking Centers.


Corporate Banking Group helps large institutional and business customers in Pakistan

through 10devoted corporate bankingcenters in all major cities. The CIBG portfolio

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contains of mostof the major names inthe market and denotes all major industry groups,

in which textiles, large scalemanufacturing, tele-communications, petro-chemicals,

fertilizer,, airlines,, transportation & services. It offers itsclients a completerange of

banking services via a onewindow interface throughnominated relationship manager.

Corporate Banking isknown as a market leaderdue to its unique ability tomeet the entire

range of a customer’s bankingrequirements. HBL’s large equity baseallows to meet the

financing needsof the major corporate and it’s large networkand particular teams are able

to deliver and provide customized solutions. The Grouphas increasingly focused on

providing value addingservices to the customers, e.g. staff andcash management services.

The Bank hasbecome a leader in cash managingservices by leverage its largedomestic

branch network and now delivers such services to a range of large and averagesized

corporations, withthe Pakistani units of some Fortune 500.companies.TheGroup also

struggles to stayforward of the market byexpecting customer requirements. We strongly

trust in relationshipbanking, which is important for us toremain receptive to our

customers. Wealso remain focused on improvingproductivity and certifying thequality of

our riskmanagement.

Investment Banking:

An Investment BankingUnit established which focuseson loan, development of limited

currencycorporate bondsand advisory services.


RetailBanking network, with 1425branches, is the centralstrength of Habib Bank. Its

extensivereach in all physical locations urban and rural through the countrydelivers

access toover 5 Million customers acrossall segments of the economy. Thenetwork

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delivers HBL with thlargest spread low cost deposit base of any bank in Pakistanand

methods the basis for many of its othercommercial lines: corporate and asset banking and


Retail BankingGroup has two major areasof activity;

 The retailnetwork for deposit enlistment

 The consumerbanking group.

HBL is the only majorbank to have a very devoted group to serve the Small &Average

Enterprises (SME) sector. HBL trusts that the SME sector can be anmachine of growth

for the economy and signifies an area ofopportunity for the Bank. RBG was therefore

well-known in late 2000 to providebanking facilities and credit on aorganized and

systemized basis. It now covers 25 divisions in the six major industrial cities of Pakistan.

The Group nowworks carefully with its customerswhich cover all sections of the

economy counting the textile sector, vendors and dealers tostructure the finances and

recover their capabilities. We havebeen very encouraged by the outcome that repeats its

belief in thepotential of this sector.There is a growing partiality for consumerspending to

uplift living standards.

Knowing that consumerdemand can be a major motorist of investment andeconomic

growth, theGovernment has also stirred towards an enabling controlling framework and

has also taken creativities to createan suitable legal regulatory

outline toenable the development of a coverfinance market. With its wide branchnetwork

and large customer base, HBL has ancentral role to play inhe development of this sector

of the reduced inwhich it expects large growth in the next five years.

HBL has moved aggressivelyand has already introduced threemajor products;

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 Personal loans,

 Financing on cars

 Consumer Strong Financing

insuggestion with major suppliers of consumer products. These have been fine received
and volumes have been building up progressively. It is the purpose of HBL to be a leader
in consumer financing. Devices are also ongoing to develop loan financing for the
housing sector. Trade exists for man due to specialization and division of labor, in which
most people concentrate on a small aspect of production, trading for other products.

Agriculture ismost important donor to Pakistan’s economy. HBL, which has been a

leader in agriculture financing,plans to rise further its credit to thissector with a specific

focus on providing a broader range of products to small and medium size agriculturalists.

In this regard, to provide flexibility, the “Haryali scheme” for farmers was

presentedwhich is a 3-year rotating facility rather than theold-style short term seasonal

financing. HBL’s specific agricultural financedepartment helps agriculturalists in

updating theirfarming techniques. The Govt has also provided a regulatory background to

encourage corporate farmingand as this grows the participation inthis sector. Will grow

even further. While HBLcontinue to develop its products, we know that quality of

customer service willbecome an even betterdistinguishing factor in the market. HBL have

taken a numberof creativities in this area; investing in technology, exercise and upgrading

of its divisions. Extendedbanking hours andbetter services for utility bill expenses have

been made available.

In ourRetail network, we have ansupreme distribution network, whichprovides us many

chances for growth, and westrategy to use this to soon deliveradditional services,

including wealthmanagement services.

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Islamic banking:

The Bank of Khyber hasfull the first step towards Islamicbanking and forthis purpose an

Islami banking separation has been established tocomplete the needed regulatory and

operational proceduresthereby pavement the way for start of IslamicBanking in its


Mission 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.”

Chapter 4

Function of HBL where I did my internship :

HBL bank is functioning under following set up.


“Deposits are to the bank as a support is to the body of a manThese are the lifeblood of

the bankHABIB BANK LIMITED and all other commercial banks perform the purpose

of deposit accepting from the overall public by offering appropriate rates of interest on

them, or on simply a promise to pay on demand.”


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“After entering into bank buildings the person goes through the following stages for

opening an account in the bank and for becoming a bank client.”


The first main stepto take place in bank is to get acceptableintroduction of the person,

who wants to become bank’scustomer by putting variousquestions.

In HBL Barnala Branch the branch manager takes great careof this step and gets

presented with the personhimself. His main aim is todetermine the prospective

customer’s honesty, respectabilityoccupation, and nature of businesshe is doing at the

timeof first account.

Clients signature:

“Now the person is providing with an application form recognized as Account Opening

Form.”This form contains:

i.Account title

ii. Address of client

iii. I.D Card number

iv. Telephone No. (Office and Residence)

v. Introductory reference

vi. Signatures of the applicant

vii. Amount deposited

“In addition to this the customer is essential to attach a copy of National Identity Card

with the form.”

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Specimen signature card:

Specimen of signatureswill be got from depositor atthe time of opening his account. A

speciallydesigned card remains used forthis purpose; the card must b witnessed by an

official of thebank not below thefecund of an officer.

Account opening register:

Now the name of thecustomer will be famous in accountopening register, and from here

the accountnumber of the client will bewritten on account openingform and signature


Issuance of cheque book:

The cheque book will be issuedto all customers. Cheque book consistsof 10, 25, 50, or

100 pageswhich depend upon customerdesire. Customer can withdraw his money by

signing a cheque if he wants to withdrawfrom his account. Achequebook register is

prpare to enter the name of the person whichhavecheque book.


The operation managerrecords the name and amount placed in thebank into GL. Different

ledgers are prepare fordifferent types of accounts e.g.

i. Current Account

ii. Saving Account

iii. Fixed Deposit Account

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When the customer deposits their money, the amount is credited to the general ledger and

the withdrawal is a debit entry into the ledger. Now-a-Days all voucher posting isdone by

computer through online Banking.


These followingtypes of accounts which aremaintained in HBL:

1. Current accounts.

2. Saving account.

3. Fixed deposit account.

4. Freedom account.

5. HBL ID account


A bank account that used to deposit payments or to withdraw money to customer


The goal is to serve the entrepreneur. For business form No. 53 is providedit is a legal

requirement to keep this checking account. Their characteristics are:

1. The minimum amount required to open this account is Rs.5000

2. Anyone can open this account with the bank

3. According to banks interest agreement is not paid by this account.

4. The bank performs the duty of custodian of the money of its client

5. The customer can withdraw his money by check made by the bank.


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Its main purpose to provide the bank with no interest in Pakistan savings account was

introduced in January 1982.Thefeaturesof this account are:

1. Anyone can open this account by depositing a minimum of Rs.1000

2. To withdraw a large amount from this account a brief notice of 7 days to the bank is

required, but I have not seen this practice in the bank.

3. There is a small interest in the money deposited according to the banking policy.

4. The interest rate is declared at the end of each year.


This type of account is the main source of investment for banks. This account is better for
those people who have a lot of money and do not need this amount in the future. The
money is deposited for a fixed period of time. The characteristics of this account are:

1. The fixed amount is deposit for the fixed period of time.

2. The amount of interest can be obtained after each month or quarterly, six months.

3. The longer the time period, the higher the rate of profit.

4. A receipt is given for the amount deposited to the customer that is called the fixed
deposit receipt.

5. Period of time for the deposit can be vary from 3 months to 10 years.

6. The amount can be with the draw before expiration after submitting the interest.

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Chapter 5

In HBL the following lending facilities are available for its customers:

 Finance for Working Capital:

 Trade Finance Facilities:

 Finance for Capital Investment:

 General Products:

 Other Products and services:


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Habib Bank Limited focuses on small and medium-sized enterprises. This section is the

traditional HBL grip with established experience and market knowledge. The original

form of Trade was barter, the direct exchange of goods and services for other goods and

services. Units dedicated to their services to small and medium enterprises that are in

Karachi / Lahore / Faisalabad / Gujranwala and Sialkot. Everyunits has relationship

managers with deep market knowledge. These managers support existing relationships

and likelycustomers with their financial needs.



“That is provided to those people which produce those products which meet universal

standard and they can export their products to others country and earn profit in the form

of foreign exchange.”

And HBL also providethe facility offoreign money exchange.


Finance againstimported goods, ImportedMerchandise, Dollar financing for import

requirements. Providing letter of Credit forimporting inventory &capitalgoods .


Demand Finance for medium term loans for capital expenditure and Leasing for

financing capital expenditure.


Letter of Guarantee

Bid & Performance Bonds

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Mobilization Advance Guarantees


There are many accounts and services to help you manage your money.That are

• Current Accounts that are not of interest take into account your regular banking needs.

• Cash management services to give you the proximity of cash management.

• Habib Bank Easy Access for "online banking" in real time at commercial points for the
transfer of online payments from the customer.

• Habib Bank Limited has launched "HBL e-bank" which allows 24 hours access to
accounts through Internet banking.

• ATMs that add more suitability, customers can also use the ATMs of any bank.

Chapter 6


Everything was new to me at Habib Bank Limited, although I have learned a good

knowledge of the teachers, but it was totally different from banking practice. But with the

elegance of ALLAH I am able to learn every situation of the Bank.


The most important thing I learn from the bank is the difference between the behaviors of

the officials. And also learn the clerical work of HBL as below.


I spent the week in opening section account. Area where I did my internship, people are

not well educated that is why every time a new client will come to open an account that

the manager of the operation referred that man or woman to me. Trade is a value added

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function: it is the economic process by which a product finds its end user, in which the

specific risks are borne by the merchant.

That I guide that person and how to open an account is filled by me and the entire legal

requirement is completed by me. In the past Habib Bank used an anold form type but is

now using a new way to open an account. Five signatures were required to open the



In the clearing section the checks of the different banks are collected and this verification

is cleaned following the method first make two copies of the application and one is

attached by check and a copy is stored in the OBC file (Collection of the external

invoice) . When the related bank receives this check, that the money in account hbl.


In this section I also learned how to transfer money from one place to another. In this

section I learned,



In each transaction there is a commission charged to the sender.

The commission of (O.T) is Rs 430.

If the account of the recipient is the account of the freedom then the commission is not

charged by the sender.

Through the ATM transfer is also free.

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Chapter 7


The word SWOT means "the internal strengths and weaknesses of the company and its

external opportunities and threats". The purpose of this analysis is to take advantage of

the strengths of the company to achieve opportunities and threats and to correct the

weaknesses of the company. The SWOT analysis is based on statements that if managers

carefully analyze such strengths, weaknesses, opportunities and threats, a policy will be

evident to ensure the organization's achievements.

Strengths and weaknesses related to the internal environment of an organization, while

opportunities and threats are taken by the external environment of an organization. The

following summarizes the internal and external analyzes of HIBIB BANK IMITED:


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HBL's internal analysis is the analysis of its strengths and weaknesses. Unless HBL has

internal strengths and controls its weaknesses, it can not seize the opportunities and omit

the threats posed by the external environment. The following are the strengths and

weaknesses of HBL.


Strength is defined as that area in which a company performs better than someone or a

feature that puts the advantages of the company compared to its competitors. HBL have

the following strengths:

1. Habib Bank is a well-established bank that enjoys a long history of experience and

profitable operation.

2. HBL is the leading private bank in Pakistan now one day and people rely on it very


3. Has the network of main branch mong various private banks of Pakistan

4. HBL is the market leader in electronic banking and has the largest e-banking network.

5. HBL has artificial strategic alliances with international banks to increase its network

more locally and internationally.

6. Excellent branches look give an advantage to HBL over other banks. Branches are well

equipped even in less developed areas.


A weakness defined as an area within an organization where the organization does not

perform well as its competitors or a thing that an organization puts at a disadvantage

compared to its competitors. HBL has the following weaknesses.

1. The HBL mission statement is not well defined.

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2. HBL is Pakistan's second largest bank, the fact is that it is not a market leader like

NBP. The total assets of HBL are lower than the assets of NBPtotal.

3. It is now a private bank so government support for HBL has declined as it has in the


4. Employees in branch offices are not properly motivated to work with the heart. They

take all the routine activities as a boring job.

5. Employees can not work efficiently because they have time to come, but they do not

have time to go home. They should work late.

6. In the branches of the employees are less, while not the customers are more finally and

the initial days of a month


An organization has kept its environment constantly to the knowledge of the new

developments and changes in the environment. A change in the external environment will

be an opportunity or a threat. In this case, the organization must use its strengths

appropriately to obtain the opportunities and avoid the negative effects of the threats.

The following are the opportunities and threats of HBL.


Opportunity can be defined as a change in the external environment which, if properly

maintained with the strengths of the organization, will translate into better sales, market

share or revenue. HBL may obtain the following opportunities:

1. You can improve the debit card system.

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2. You must establish your branches in small cities are cities because most people live

abroad and earn money and need a source through which their family members can make


3. If foreigners have their accounts in local branches, they send money to their accounts.

4. HBL should expand its branch network in many countries by highlighting the

introduction of electronic funds transfer services.


Threat is defined as a change in the external environment that if it does not occur with

appropriate strategies will result in the loss of market share of profits or income. The

external environment of HBL,

There are the following threats:

1. The fees that are taken by the customer in different activities are more than that is why

customers are not less day to day.

2. The trained and specialized personnel are less at the executive and officer level.

3. HBL affemore the competition of different foreign banks.

4. Foreign banks provide more attractive and efficient services to their clients.

5. Other commercial banks have a good return that is a threat to HBL like Bank Al Habib

& MCB.

6. Low discount rates also negatively affect the types of advances that may affect the

profits of banks.


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During my six-week stay at HBL Barnala Branch, I encountered several problems, which

should be solved for the Bank's better functioning. Some of these problems are:


These problems are: -

1. There are alack of employees performing different work as only a cashier who works

with the full effort but heor she is a human not a machine.

2. A customer can not find any type of newspaper there.

3. In the beginning and end days of the month there are a lot of clients, which causes

discomfort for the interested official and for the Workshop as well.

4. Only a security guard.

5. A separate lady is not held there.


Recommendation I suggest:

I will make the following recommendations for the best function of the Bank:

1. The managements must provide a minimum of an employee like Teller.

2. Daily newspapers should be provided to both employees and customers visiting there.

3. A separate ladies counter should be held there.

4. Bank management should be very alert while granting loans.

5. New talent must be hired to meet competing demand in the market.

6. The promotion and transfer of the employee should always be done on merit.

7. To motivate employees, their salaries must be equal to those of higher level.

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