Internship Report on HBL

AN INTERNSHIP REPORT ON

HABIB BANK LIMITED

SUBMITTED TO

SIR.Farrukh Naveed
SUBMITTED BY

Mubashar Jafar
Roll #34 BS commerce Morning SESSION 2007-2011

DEPARTMENT OF COMMERCE ISLAMIA UNIVERSITYOF BAHAWALPUR

Department of Commerce

Internship Report on HBL

IN THE NAME OF ALLAH WHO IS THE MOST BENEFICENT THE MOST MERCIFUL

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Internship Report on HBL

DEDICATIONS
This report is dedicated to my parents, friends and my teachers who all support me in times of intricacy and continuously appraise me. Therefore these people are the source of my inspiration and I would be forever thankful to them for keeping my morale high and encouraging me against all odds.

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Preface
Internship is an integral part of BS program. It is a mean of providing practical exposure to the student, of what they study Our teacher also managed an internship program for us. I had my internship in HABIB BANK LIMITED Ghalla Mandi Branch Chistian, for Eight weeks. During this period of Eight weeks I work in all the departments of Branch, and learned a lot. As the period of internship involved working with the permanent staff of bank and assimilating into their routine it provided an experience and in depth review of how the employees of the bank coordinate one another and with their manager. . The daily difficulties that aroused out of the formal routines of the bank became evident and the draw back of the extremely formalized system of the bank became apparent during the internship period. Following is the generalized view of the bank as perceived by me during the period of my internship is presented for the readers before going into depth review of the report. As the generalization are based on the writers perceptions so they cannot be considered as the final word in this context as perception are different with different people. In this report, I have tried to present a complete picture of Habib Bank Limited. Including its market position, competitive production, working of bank, its various departments, and finally the SWOT analysis and financial analysis of Habib Bank Limited.

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Acknowledgements
I must offer my thanks to Allah Almighty by whose blessings I have been able to complete my internship report on HABIB BANK LIMITED. I offer my thanks to Mr.Farrukh Naveed for his valuable guidance and contribution in making my report meaningful and useful. I also thank to the Branch Manager Mr. Bashir Uddin Ahned, officers and employees for their kind behavior and full cooperation during the internship period. I also thank to the Branch operation Manager Mr. Abdul Malik Officers and employees for their kind behavior and full cooperation during the internship period and tell about the importance of customer in the banking field. In the last I like to thank all of the staff of branch for their valuable comments, cooperative behavior and friendly environment during the internship.

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TABEL OF CONTENTS
serial No. 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18
19 20

Content
COMPANY INTRODUCTION COMPANY INFORMATION FINANCIAL HIGH LIGHTS MISSION STATMANTAND OBJACTIVES OPERATIONS OF THE BANK WORK DONE BY ME DURING INTERNSHIP FEILD OF ACTIVITIES / DEPARTMENTS OF A BANK Deposit department Accounts department Advances department Agriculture loan Flexi loan Bills and Remittances department OF ALL DEPARTMENTES Lockers A.T.M. CREDIT CARD Financial analysis Ratio Analysis SWOT ANALYSIS

Page # 8 13 17 20 23 24 29 30 34 38 42 44

46 MISCELANIESUS FUNCTIONS 51 53 54 57 59
61 78 6

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Conclusion
SUGGESTION

81 82

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Executive Summary
I have completed my 8 weeks internship in HABIB BANK LIMITED. I tried my best to gain something practically from this opportunity. This report starts from the introduction of word Banking, and then History of HABIB BANK LIMITED. History of HBL shows that how it helps its Nation and Country in both war & peace. the first Pakistani bank .Bank Mission statement & Vision shows its focus on overall performance of the bank and quality of services and products

COMPANY INTRODUCTION
Company Description:
Habib Bank Limited is a Banking Company, which is engaged in Commercial & Retail banking and related services domestically and overseas. WHAT IS BANKING COMPANY? Section 5 of banking ordinance 1962 says that Banker means a person transacting business of transacting the business of accepting, for the purpose of lending or investment of deposits and withdrawals by Cheques, drafts, orders of other wise and include any post office saving bank.

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COMMERCIAL BANKING: Commercial banks are profit seeking organization. They have been the most effectively mobilize the savings and have been providing short-term requirements of businesses. They help in internal and external trade of the country.

FUNCTIONS OF COMMERCIAL BANKS:

Today there are more than 7000 branches of commercial banks along with an established network of supplementary financial institutions. The function of a modern commercial bank can be divided under the four headings as: 1. Accepting of deposits. 2. Advancing of loans. 3. Agency service. 4. General utility service. ACCEPTING DEPOSITS: The primary function of a bank is to receive surplus balances from individuals, firms, public institutions and government etc and honor Cheques drawn upon it. Three types of deposits are Current or demand deposits Saving deposits 9

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Internship Report on HBL Fixed or term deposits

ADVANCING OF LOANS: The most important function is to provide loans to individuals, firms, business concerns and government bodies against securities to meet their financial needs at a fixed percentage of interest. These are some kinds of loan Loan to busines Loan to real estate mortgage Consumer loan Loan for purchasing security Loan to agriculture Bank investment for security

AGENCY SERVICES: The commercial bank provides following agency services to its customer Collection and payment of Cheques Collection of dividend Purchase of securities

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Internship Report on HBL Execution of standing orders Acting as trustee or executer Make transfer of funds Act as an agent

GENERAL UTILITY SERVICES Commercial bank performs general utility services as follows Foreign exchange business Act as referee Accepting of bills for collection Issuer of travelers Cheques Supplier of trade information

HISTORICAL PERSPECTIVE
History of the Company:
Habib Bank Limited was incorporated on 25 th August 1941 by ISMAIL HABIB (LATE). Habib Bank inaugurated its operations with the banks first branch in Bombay. It was the first Muslim bank of the sub continent. It was established with a paid up capital of Rs.2500, 000. At an early stage the number of branches was only 12. In 1947 Karachi saw its first commercial bank of the Department of Commerce 11

Internship Report on HBL newly formed Islamic Republic of Pakistan, when the bank shifted its head office there. And build the largest private sector bank that controlled an estimated 27% of total bank deposits in the country and hand over 500 branches including many overseas. Although primary functions were banking and finance, but it moved to industry by the late 1950s and developed interest in sugar, jute and textile. HABIB BANK operated in the private sector until its nationalization in 1974 under the Bank Nationalization Act 1974. Thus the holding of Habib group was lost. Throughout the decades, HBL has held the mantle of a dynamic leader, by adding value to the lives of its customers. HBL has been approved for privatization and the privatization commission has selected a Financial Advisor to prepare a comprehensive plan and assist in the sale process. The government has appointed a professional management team to restructure the bank and to recover and clean its doubtful and classified portfolio. .

TODAYS HABIB BANK:

Today, Habib Bank is truly the bank of the people, providing its customers convenience and satisfaction all over the world. Habib Bank Plaza, the tallest building in Pakistan, is the proud symbol of HBLs leadership in Pakistans corporate arena.Today, HBL has more than 1469 branches all over Pakistan and presence in 26 countries across five continents. With a revamped customer oriented philosophy, we are pursuing new avenues of leadership through innovation, as it gear up to face the challenges of the new millennium.

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Operational Structure:
Habib Bank Limited is one of the largest commercial bank of Pakistan. It accounts for a substantial share (20%) of the total commercial banking market in Pakistan with a network of 1469 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.

COMPANY INFORMATION
AUDITORS:
TASEER HADI KHALID & Co. Chartered Accountants Sh. Sultan Trust Building No. 2 Beaumont Road Karachi 75530 Pakistan A.F. Ferguson & Co. Chartered Accountants State Life building 1-C Department of Commerce 13

Internship Report on HBL 1.1 Chundrigar Road

Karachi Pakistan

REGISTERED OFFICE:
Habib Bank Limited Habib Bank Plaza 1.1 Chundrigar Road

Karachi - 75650 Pakistan HEAD OFFICE Habib Bank Plaza 1.1 Chundrigar Road Karachi - 75650 Pakistan Phones: 2418000(50 lines) Fax: 2411647 Telex: 20086-20751 HBANK-PK

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BOARD OF DIRECTORS
ZAKIR MEHMOOD & CHIEF EXECUTIVE SULTANALI ALLANA LAIN DONALD CHEYNE SAJID ZAHID AHMAD WAQAR SHAUKAT HAYAT DURRANI MUHAMMAD ISMAIL QURASHI ARIF MANSUR CHAIRMAIN DIRECTOR DIRECTOR DIRECTOR DIRECTOR DIRECTOR DIRECTOR PRESIDENT

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SENIOR MANAGEMENT
DESIGNATION Zakir Mehmood Executive Sohail Malik Jamail Iqbal Shahid M.Loan Sima kamal Banking Ayaz Ahmad SEVP & Group Executive Information Technology, financial control SEVP & Group Executive Global treasuryJamil A. Khan SEVP & Group Executive Human Resource s Retail banking Aziz Rajkotwala SEVP & Group Executive International President & Chief SEVP & Group executive Credit policy SEVP & Group executive Global operation SEVP & Group Executive Audit, BRR & Investigation SEVP & Group Executive Corporate and investment

Hanif Akhai

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FINANCIAL HIGH LIGHTS

Description 2004 2003 2002 2004growth %a ge 12% 12% 41% -13% 33% -232%

1 2 3 5 6 7

Total Deposits Total Assets Advances Liquid Assets* Shareholders' Equity & Revaluation Surplus Liquid Assets % of Deposits from Customers & Bills Payable

404629 486982 258306 143735 31188 35.41%

360648 434932 18354 164533 23485 46.26%

328,182 403,013 167,523 147,822 19,498 47.36%

Profit & Loss 8 9 10 11 12 13 Others 14 15 16 17 Home Remittances Exports/Imports Number of Branches Number of Staff 47423 46326 296492 258157 38,229 214,590 1,473 19,005 2% 15% -1% Total Net Income Total Expenditure Provision for non performing loan Pre Tax Profit Profit after Taxation Earnings Per Share (Rs. / Share) 23512 13783 2565 7146 5680 8.21 21364 9803 5804 5469 4018 5.82 18,564 11,748 5004 4,088 2,034 1.68 10% 41% -56% 31% 41% 41%

1469 1,470 18625 18800

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ORGANIZATIONAL STRUCTURE

Ownership Structure
Shareholder State Bank of Pakistan Islamic Republic of Pakistan Agha khan foundation for economic development State Life Insurance Corp. of Pakistan Other Public Bodies Outstanding Shares (1,217,849,500) Percentage (%) 73.047 .783 26.00 0.138 0.05 100

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STRUCTURE
PRESIDENT SENIOR EXECUTIVE VICE - PRESIDENT
VICE- PRESIDENT VICE- PRESIDENT ASSISSTANT VOICE PRESIDENT OFFICER GRADE I

OFFICER GRADE II

OFFICER GRADE III

CASHIER

CLERCK

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MISSION STATMANT AND OBJACTIVES

MISSION STATMANT
The main logo of the bank shows a picture of a lion with a sword on the top on the up most Portion BISMILLAH is written to show the supremely of God and the symbol of lion shows the Quality of leadership that lies with the bank. The reason for the statement the power to Lead. As the bank has entered the new millennium, it wishes to appear as a bank that is

LEADING LOCALLY AND GROWING GLOBALLY

MISSION STATMANT OF HABIB BANK IS TO MAKE Habib bank is the dominate financial institution in Pakistan and a leading bank of the Middle East and South Asia regions.

OBJECTIVES
The bank main aims to provide better and efficient services to its Domestic and overseas customer .regarding the need for improving the financial Performance of the company, following objective have been chalked out.

To take necessary steps to plug the leakages of revenue and expenses. To insure internationally accepted accounting standard are followed by the bank Department of Commerce 20

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To correct the structural flaws in the balance sheet

To put greater focus on neglected sectors to correct sectored imbalances in the loan portfolio.

To achieve those objectives necessary steps have been taken by the management loss making branches have been closed or merged.

MARKETING OBJECTIVE

To devolved country specific business revitalization strategies for important franchise to improve overseas operations. To develop more branded proudest in saving deposits and consumer assets. To increased the ATM network to further improve the banks market shears. To establish sound relationship with top industrial groups and various multinationals. To make the bank customer focused.

To launch innovative product as which cater to the needs of different segments of the market. Department of Commerce 21

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To increased the number of ON LINE branches

HRM 0BJECTIVES
To provide extensive training to employees in process ,products, marketing and selling skills introduced. Upgrading skills levels of staff. To implement a performance appraisal process to provide motivation and a merit oriented culture in the bank.

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OPERATIONS OF THE BANK

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DOMESTIC OPERATIONS
For facilitation of domestic operations the retail banking group and the corporate institution banking group is divided in to several distinct regions, centers and sub centers comprising of

23 Regional head quarter 20 corporate centers 1469 branches

OVERSEAS OPERATIONS
For the facilitation of the overseas operations the bank has

55Branches 02 affiliates 01 Representative office 02 subsidiaries

WORK DONE BY ME DURING INTERNSHIP

I have worked as an internee in the Habib Bank limited Branch Kahror pacca for eight weeks. During my internship I learned a lot about the banking work. The branch was quite small comparatively with others but it had all departments. I tried my best level to gain from this internship experience. Department of Commerce 24

Internship Report on HBL On first day I reported to the branch manager and he guided me and gave me information about the branch. In first week he had given me information about the overall banking in this branch. He told me about the departments of the bank and some other basic information about the bank, cheques, records, etc. In the next week he told me that now I have to start work in the different departments. I started my internship from account department. The most of the working was conducted in this department. There was a lot of burden of work in this department. In this department the following major activities were a) Account opening. b) . IBDAs records and preparation. Account opening. In this department daily many people came for open the accounts according to their own choice of account. In PLS Saving account and current account procedure of opening of account is the same except the initial deposit. The account opening form contains the following informations. The type of account which any person want to be open, he has to select that. Nature of account whether individual or proprietorship or other. Currency (in which want to operate). Particular of deposits. (Period for operation). Complete address.

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Internship Report on HBL Telephone number. Nature of business etc. Detail of other accounts. Zakat deduction. Personal information. Name. Date of birth. Nationality etc. Then signatures of the account holders and the bankers and manager. Signature of the introducer, his account number and address.

When this form is filled then signature of the person who want to open the account are to be taken on the specimen signature card. Then it is recorded in the PC. Then after a week letter of thanks when received by the person then a cheques book is issued to him. Now he can withdraw the amount by fulfilling cheques up to the extent of his balance, in the account. In that account opening I also write the letter to the customer. There are two letter are written while opening the account 1. New customer 2. Introducer of new customer These are printed letter on which just write the name of person and his addresser written in the form.

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Internship Report on HBL Preparation of cheque book; I issued cheques books in the account opening department. The cheques book is issued after opening of the account. The Account No. is stamped by the rubber stamp on each cheque. Then it is given to the person. When all cheques books are issued to the customers then these are recorded in the CD Book or PLS saving book. All cheque books are recorded with their a/c number and name of the person. Preparation of IBDA I prepared in this department IBDA Inter Branch Debit Advice. If for one branch it is IBDA transition then it is for branch is IBCO. (Inter branch credit advice). IBDA Transition: For example transaction between satellite town Branch and Model Town Branch is as follow. If the customer of satellite town branch withdraw money from Model Town branch.(use) this branch will debit the account of satellite town branch with IBDA. Davis road branch will receive the slips that the person has used the ATM machine there. When money is withdrawn then Habib Bank satellite town branch will credit the Model Town branch. After transfer of cash from branch the account will be settled.

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Internship Report on HBL Cash department I spent one week in the cash department here I issued token to the customers and then recorded it into the token book. The procedure of issuing the token is that when cheque is presented at the counter. Then following things are checked. The signatures on front and at the back. Similarities in the signatures of the issuer of the cheque. Date. Amounts whether tally with the amount written in words.

Then token is issued to him and cheques are stamped at the back at which date and token no. is filled. Then all cheques are forwarded to the next counter where signatures are compared with the signatures in the book and the balance of the account is checked. If the cheque has not any fault on it then it is given to cash payment counter and cash is paid to the customer up to the amount mentioned on the cheques. I spent one week in this department. I also completed their pending token books also.

Advance department
I also spend some time in the Advance t department .the loans available in our branch are 1-FLAXI LOAN 2-AGRI LOAN 3-CONSUMER FINANCE Department of Commerce 28

Internship Report on HBL 4-BUSNIERES LOAN

These are the main types of loan which is future categriosed in different ways. I check there the procedure of different loans Documents required Capacity of the party Purpose of loan

FIELDOF ACTIVITIES/DEPARTMENTS OF A BANK

The main departments of a bank are as follow

1. Deposit department

2. Accounts department

3. Advances department

4. Bills and remittances department

5. Foreign exchange department

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1).Deposit department
The function of deposit department is to collect cash from the customers and to deposit it into the accounts, maintained by them. Their classification is based onduration and purpose for which the account is maintained. The following typs of accounts are maintained for this purpose. Current account Saving account Fixed account a. Current account A current account is a running account is a running account which icountiniously in operation, by the customers on all working days of the bank. The customers can withdraw the amount from the bank without prior notice. The bank usually donot pay any interest on these deposits as they can withdraw without notice These accounts are operated normally by the traders, business companies, institutions, public service bodies, industrialists etc. Summing up, the current account does not earn but serves the cause of industry, trade and commerce. b. Saving deposits account This type of account is for those persons who want to make small savings. The depositors are allowed to withdraw a limited amount of money for twice a week.

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Internship Report on HBL The banks will keep a minimum account and the balance be safely utilized forinvestment by the bank. The bank pays interst on saving bank accounts according to the prescribed rates by the centeral bank of the country.

c. PLS saving account In pakistan (PLS) saving account was introduced in January ,1982. -The bank has full right to investment of credit balances /deposits in the PLS saving accounts.

- statments of accounts willbe supplied on periodical intervals. The following informations are required to be furnished 1. Name 2. occupation and full address 3. Specimen signature 4. Introductory refrences 5. Declaration that he will follow them

D.Fixed or time deposit Fixed or time deposit are the major source of funds of a commercial bank. The rate of interest on fixed deposits is higher them that of saving deposits and it varies with time to time. The longer the period for which the amount is kept higher is rate of interest. The fixed deposit receipt (FDR) is marked

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Internship Report on HBL as not negotiated. The holder of time deposit account cannot issue cheque for the withdrawl of the amount. E.Joint account A joint account is a special bank account which is opened in the name of two or more persons. For drawing amount all persons whose name the account stands should sign the cheque.

In case of firms or companies a/c following are the requirement

To open the account of firms or companies the following are the essentials.

-List of the office bearers. -List of authorized signatures. -Copy of memorandum or by laws. -Copy of registration. -In case of joint stock companies -Certificate of incorporation. -Certificate of commencement of business. -Beside NIC copies.

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Cash department

The cash department is the most important department of the bank. It receives cash from customers and then deposit it into the accounts of the customers and maintained their balances In cash department following books are maintained..

I. Scroll book II. Paying cash book III. Token book IV. Cash balance book

1. Scroll book: When cash is received at the counter it is recorded in the scroll book. 1. Paying cash book: The cashier makes entery in the paying cash book when cash is paid. 2. Token book:

When any cheque or any negotiable instrument is presented it is recorded in the token book then token is issued.

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Internship Report on HBL 3. Cash balance book: The consolidated figure of receipt and payment of cash is entered in cash balance book.

Accounts department
There are two ways of maintaining an accounts Journal system Voucher system

Journal system Under this system entries are journalized in journal book and then posted in ledger account. Their entries are maintained in journals. Voucher system In voucher system for each transaction voucher is prepared, either in cash or in transfer or in clearing all vouchers are summarized to the one consolidated figure and are recorded in cash cum- daybook sheet upon which vouchers are summarized according to the transition wise suit is called supplementary. These are of 2 types.

Debit supplementary

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Internship Report on HBL Credit supplementary

Debit supplementary is for debit vouchers and it is of red color Credit supplementary is for credit vouchers and it is of green color The following books are maintained in accounts department. 1) Cash cum day book. 2) General ledger. 3) Subsidiary ledger. 4) Voucher register. 5) Transfer book. 6) CD/SB summery book. 7) Balance books.(Weekly and monthly) 8) Old record register. 9) Bank ledger. 10) Fraud and forgeries register. 11) Comparative statistics cards of deposits. 12) Advances and profit and loss.

Why account is open.

It is not safe for private individual to keep their surplus money at home. They can keep their money in safe custody by opening accounts in a bank. They can open deposit accounts for fixed period. The deposit account also earns interest for the depositors. Again the businessman conducts transaction is for thousands of rupees Department of Commerce 35

Internship Report on HBL daily. It is unsafe to keep so much cash in hand for carrying on business transactions. They may put their money with some banks by opening deposit accounts. Now they can draw cheques for settlement of transactions without involving cash.

Procedure of opening of an account: There are certain formalities which are to be observed for opening of a current account or saving a/c. With a bank, these formalities are as 1) Request of opening of an account. 2) Obtaining introduction 3) Specimen signatures 4) Minimum initial deposit 5) Operating the account / cheque book 1).Request of opening of an account. The customer has to fill an account opening form . it is a formal request by a customer to the bank to allow him to have and operate the current or saving account 2). Obtaining introduction. The bank before opening an account obtains introduction of the customers from an old customer, responsible person etc. 3). Specimen signatures. When the banker satisfied about the informations provided in the form hen the banker obtains the specimen signatures of the customer on the Department of Commerce 36

Internship Report on HBL signature book or on card. The duty of a banker is to verify customers signature on the cheques with his specimen signature in order to ascertain whether there has been any forgery or fraud. 4). Minimum initial deposit. In Pakistan to open up an account in the PLS account is up to Rs.1000/- it is the minimum requirement. However the account of zakat dependent can be opened by Rs. 200

5). Operating the account./ cheque book. When the account is operated the banker gives a pay-in-slip book, cheque Book, pass book with the view to operate it. Books relating to customers: Pay-in-slip Cheque book Pass book Pay-in-slip When money is to be deposited in the bank the pay-in-slip is to be filled, the object of this book is to provide the customers with the banks acknowledgment for receipt of money to be credited his account. Cheques book.

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Internship Report on HBL A cheque book contains a number of cheques which is given to a customer upon written request and after making payment for the cheque book. It enables to a customer to make withdrawals from his account. Pass book. Is a copy of customers account as it appears in the books of the bank. Pass book is a book in which the banker maintain the record of its customers account for later use. The because it passes hand periodically between the banker and the customers. On delivery of pass book the customer examine the debit and credit eateries with its cheque book and bank receipt challans. But now a days this concept of pass book is ended and computerized account statement send to the customer semi annually or on the demand of customer bank is bounded to give him the account statement.

3). Advances department

The function of advances department is to lend money in the form of clean advances. Against promissory notes, as will as secured advances against tangible and marketable securities. The bankers prefer the securities which are free of risk of depreciation. Deposits lead to advances and advances create deposits. Advances to a variety of customers are the sure method of enhancing income and promoting expansion of a bank.

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Internship Report on HBL Types of advances: The main types of advances are as follow.

1). Overdraft. 2). Cash credit. 3). Loans.

1). Overdraft. An overdraft is the right given by a bank to his customer to draw in excess of his current account up to a fixed limit. The facility to overdraw by cheques is allowed only in current account. The overdraft facility enables a customer to draw over and above his own balances up to the extent of limit as agreed. The bank does not provide the facility of overdraw on checking accounts to all of its customers. a. Clean overdraft. Advances for which the bank no security except the personal security. b . secured overdraft. Advances for which bank has security other then his personal security. 1. Against lien on third party account. 2. Against immovable property, equitable mortgage collateral.

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Internship Report on HBL c. cash finance. Cash finance may be allowed within discretionary powers of the branch managers to first class parties keeping in view their credit worthiness, overall business and average balance maintained in their account. 2).Cash credit a cash credit is an arrangement by which a banker allows a customer to borrow money up to certain extent cash credits are usually made against securities of commodities hypothecated or pledged with the bank.

Pledge Pledge is a contract whereby a good is deposited with the lender as security for repayment of the loan. The delivery of documents of title relating to goods also create a valid pledge. The person delivering the goods as security is called pledger. The person to whome the goods is delivered is called the pledgee.

Hypothecation: It is a legal transaction where by goods may be made available as security for a debt without transfering property or the possession to the lender. Advances granted under hypothecation are not secure from safety point of view. The bank should make sure that the party has a good reputation, which property regularly.

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Internship Report on HBL 3). Loans Banks may make advances to its customers which may be payable in lump sum or in installments. Loans may be. a). clean loans This is granted to borrowers without obtaining any security. Example flexi loan b).Secured loans. Loans which bank has security other then its personal security. These are issued against the pledge, hypothecation, property and cash etc. c).Small loans. These are the loans which are sanctioned for small size projects. The loans may be call loans or loans repayable at short notice. These are the loans repayable which bear no maturity date. They can be paid at anytime. These are normally secured by other assets. The other kind of loan is loans repayable at short notice; these are short term loans and are repayable at short notice. These are widely used in the financing of seasonal increase in the working capital and the temporary financing of capital expenditure these loans are obtained by manufacturing concerns to meet the financing of working capital expenditure.

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Agriculture loan
Haryali agricultural finance scheme

Tractor finance scheme LIVE STOCK FINANCE SCHAME

1-Haryali agricultural finance scheme:
Habib is providing creditability to the farmers according to instructions of state bank of Pakistan under the agricultural Haryali finance scheme. The Haryali credit scheme is a best section of every agricultural need. According to this scheme the credit is provided on easy installment for productive and installment for productive and improvement purpose. The basic purpose of Haryali finance scheme is to provide credit in time to overcome agricultural needs, so that they earn profit from forms by using modern technology.

Basic conditions to get Habib Bank Haryali scheme: Tenant has a NIC covered. A computerized NIC cord is to provide to Bank from getting loan.

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Internship Report on HBL An attested copy of receipt can also given with old NIC in case of computerized is not available.

The rate of mark up on this scheme is 11% lowest mark up rate as compared to the other scheme like flexi or life style loan

2- Tractor finance scheme.

Under this scheme finance is allowed to cultivator/land owners cultivating minimum 5 acres of agricultural land, Finance is allowed from a period of 5-7 years repayable in half yearly installments, a minimum debt/equity ratio of 90:10 is maintained, mark up of 11% p.a. is charges however in case of timely adjustment of all installments at time of last installment mark up is recalculated at 9%p.a and 2% amount is adjusted towards last installment. In case of cash collateral no equity is needed and mark up is charged at a rate of 2% over the Bank profit. In case of NSCs, DSCs etc., a mark up of 8% p.a. charged.

Special effort have been made to promote tractor finance and during the year 2003-2004 HBL has disbursed 3850 tractor up to MAY ,2004 against 1598 tractor distributed last year

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3-LIVE STOCK FINANCE SCHEME

The scheme has been introduced to promote the following sub-sector.

1- Live stock /diary farming. 2- sheep /goat farming 3- Fattening of animals for beef purposes. 4- Poultry

Finance is allowed at a mark up rate of 11%p.a. for fixed investment purposes as well as to meet the needs of working capital requirement to all categories of farmers all over Pakistan including Azad Kashmir area. Finance is repayable in a maximum period of 5 year time period in easy installment.

Flexi loan
Flexi loan
A special scheme of Habib bank limited for the employee of govt. and semi govt .institute. This is a clean loan no any security has been taken from the employees of the organization. Just salary of the employee is transferred in the account of the client.

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Basic requirements for the flexi loan

He must be employee of listed organization He must be account holder of the bank His salary is transferred in his account His job at least one year

Document required for flexi loan

Letter from employer His last month salary slip His account statement 60 post dated cheques

Rate of mark up on flexi loan

The rate of mark up on flexi loan is different for various departments For the armed forces The rate of mark up is 13.5% The DSR factor is 35% For the civil person The rate of mark up is 14.5%

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4) Bills and Remittances department

The main function of bills and remittances department is to deal mainly in following. A. Outward bills for collection (OBC) B. Inward bill for collection(IBC) A. Outward bill for collection 1. Clean bills These are negotiable instruments drawn on out station branches of the bank, sent for collection on behalf of the customers i.e. cheques drafts etc. 2. Documentary bills These are bills accompanied by documents such as R.R, T.R bill of lading etc having title, collected on behalf of their customers. if payment is made other than cheques then this mode is used. it is an arrangement between 2 parties. Banks plays role as an agent. Documentation is properly drawn between 2 parties. But in 99 cases clean bills are used. B. Inward bill for collection These are bills received locally. They are received from out station branches of the bank and parties drawn on recipient banker or other banks or parties. The main documents invited in bills and remittances department are as follow. 1. demand draft 2. Pay slip Department of Commerce 46

Internship Report on HBL 3. Mail transfer MT 4. Telegraphic transfer 5. Pay order 1. Demand draft Demand draft is an instrument which is drawn by one branch to another branch of the same bank. If any person wants to make payment from one city to another city then he can make payment through demand draft. Bank charges a commission for performing this kind of service according to bank rate schedule which is revised after 6 months. Demand draft may be issued or paid. 2. Pay slip For payment of internal expenses of the bank the pay slip is used. For e.g tax payment, by bank, repair and maintenance expenses, repair and maintenance expenses etc. 3. Mail transfer (MT) Bank to bank remittances are transferred through mail. Its charges are same as of DD plus additional 60 rupees. Mail transfer advise is use against cash receipt , cheque, and letter of instrument.MT advise is prepared and test number is written on this MT advise. The advise is given to dispatch department for onward transmission. 4. Telegraphic transfer. It is a bank to bank transaction the issuing bank makes payment on payment order. The beneficiary (3rd party) not directly involved in it. Two other mode of this transactions are

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Internship Report on HBL telephonic transfer Fax

It is a coded massage by one bank to another bank. Each bank has its own code number first they write the massage in the code form and after this they apply its test number on it. Two types of instructions can be issued by the bank for T.T. a) Advice in pay b) Advice in credit. a). Advice in pay In this case the party on which the T.T is drawn, if not having its account in this bank it means they are not the account holder of this bank, bank informs the party that its T.T has came and to come and to open the account and to receive the amount.

Bank charges according to the bank schedule. Bank makes payment to the party after opening the account in the branch. b). Advise in credit. In this case the party having its own account in the same bank where the T.T has came in their names the bank simply credit the account of its customer. 5. Pay order pay order is just like a cash. If someone want to make payment to some other person he can make payment through pay order slip. The main advantage of pay order is that it can not be dishonour by the bank when payment is required to

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Internship Report on HBL made within the city then we can take this bank service and when we want to make payment outside the city then we use demand draft in case of cheque there is a possibility that it can be dishonour by the bank but it case of pay order we have surity that it can never be dishonour.

5).Foreign exchange department

The main function of foreign exchange department is to facilitate the import and exports by opening up of letter of credit the banks provide to its customers. There are 2 types of facilities. 1. fund based 2. Non fund based. Fund based facilities are those facilities which involve cash but non fund based facilities are those which do not involve cash. Letter of credit is a fund based facility. Foreign exchange department also deals in the foreign currency. Letter of credit: A letter of credit is a commitment on the part of buyers bank to pay or accept draft drawn upon it provided drafts do not exceed a specified amount. Why banks deal in letter of credit: The bank charge nominal commission on financing the import and export shipment The main benefits for opening it are Department of Commerce 49

Internship Report on HBL -Increased balances. -Commission. -New business opportunities. Procedure of opening a letter of credit: The letter of credit is opened by filling an application with the bank and following information should be provided to the bank. 1. name of beneficiary (seller) 2. Complete address of beneficiary 3. Type of letter of credit whether 4. mode and time of payment 5. Description of goods 6. Payment of freight 7. Detail of documents 8. Place &date of shipment 9. The date of expiry of credit 10. How the credit is to be advised by mail, cable, telex etc. Foreign exchange department also provide facility to financing the exports by -advising export credit -collection of negotiation of foreign bills -receiving payment from aboard by means of remittances. -allowing packing credit facility to exports. Revocable or irrevocable

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MISCELLANEOUS FUNCTIONS OF ALL DEPARTMENTS

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ON LINE BANKING
Many branches and checking accounts Habib Bank Limited are linked through satellite. It provides the facility of transaction with each branch while sitting on any branch of Habib Bank. On Line Transaction are of three types: Cash Transaction Clearing Transaction Transfer Transaction The clients can shift their amounts from one branch to another branch. Their cheques can be cashed. On line banking is miscellaneous activity that is performed in almost all the department of Habib Bank.

Charges for inter-branch in line transitions

There are no charges recovered with in the same city. No charges from the customer maintaining Rs. 200,000 in their current accounts other wise charges will be recovered according to the schedule.

Schedule charges:

Up to Rs. 25,000/Up to Rs. 200,000/Rs. 200,001 to 500,000

Rs. 50/Rs. 100/Rs. 250/-

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Internship Report on HBL Rs. 500,001 to 200,000 Rs. 500/-

Collection account(companies only) Opened with the approval of head offices Rs 750/-

Lockers
One of much appreciated facility offered by a bankers to his customer is that of keeping in safe custody, valuables if various kinds, including securities, and documents of title of property. Frequently such items deposits in a locker box or sealed envelope, in which case the banker takes no cognizance of the contents. A part from providing the facility for accepting the valuable for safe custody, safe deposit lockers are also made available to customers on nominal rent

Documents required for a locker facility:

Locker opening form. Specimen signature card. Copy of NIC of the client.

SAFE DEPOSIT LOCKERS CHARGES:

Fee for safe deposit lockers to be recovered in advance or at the commencement of the period yearly/half yearly/ quarterly as the case may be: Small size Rs. 15,000/Rs. 1000 per annum or nil on refundable key deposit of

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Medium size 20,000/Large size 35000/Extra large 45000/Extra Extra large 75000/-

Rs. 1,500 per annum or nil on refundable key deposit of Rs. Rs. 2,500per annum or nil refundable keys deposited of Rs. Rs. 3,000per annum or nil refundable keys deposited of Rs.

Rs. 5,000per annum or nil refundable keys deposited of Rs.

Automatic teller machine

Habib bank has introduced ATM (automated teller machine) in Pakistan for its customer. Electronic cash dispensing facilities are available in various cities. in due course of time, it plans to install more ATMS and extended this on line facility to other operating centers of the bank. All these ATMS are linked through a state of- the- art satellite based communication system offering real time 42hour service. ATM card is a debit card and cash withdrawal transaction is performed with its used as well as customer can check balance and have its account statement. By using this card a client can with drawl the amount from 500 to 20,000 rupee in 42 hours In order to get an ATM card

Customer should be an account holder Application from is filled Spaceman signature card is filled

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Internship Report on HBL Application is forward to head office .Within to 10-15 days bank receive the ATM card and pin codes and hand it over ton the respective customer after taking his signature. Bank charges are Rs. 200 per annum Working of ATM card: When client enters his card in machine, it asks for the pin code. If he enters a wrong pin code constantly three times, then machine captured the card. This secured the transition .this increased the safety of the customer card. After the client has given a correct pin code, he can safely perform his transition. After getting the amount from ATM machine customer get a small statement of his account which contains the following, Pervious balance Transaction amount Current balance Date Time of transaction Account number Name of customer

ATMS AVAILABLE FOR HABIB BANK CUSTOMER Habib bank Limited has arrangement with other bank to use their ATMS where Habib bank ATM is not available. When a client uses an ATM of these other banks, Rs. 15 per transition are deducted from his account as ATM charges.

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Internship Report on HBL KARACHI LAHORE SONERI BANK ASKARI COMMERICAL BANK ABN AMRO BANK HABIB BANK LIMITED SONERI BANK ASKARI COMMERICAL BANK

ISLAMABAD/RAWALPINDI SONERI BANK ASKARI COMMERICAL BANK ABN AMRO BANK

MULTAN HABIB BANK LIMITE ASKARI COMMERICAL BANK

SIALKOT HABIB BANK LIMITE ASKARI COMMERICAL BANK

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FAISALABAD PESHAWAR GUJRANWALA HAYDERABAD AZAD KASHMIR BAHAWALPUR HABIB BANK LIMITE HABIB BANK LIMITED HABIB BANK LIMITED ASKARI COMMERICAL BANK HABIB BANK LIMITED HABIB BANK LIMITED HABIB BANK LIMITED

CREDIT CARD

Habib Bank offers a range of credit cards, accepted at thousands of locations in Pakistan. These cards facilitate the small financial, needs of customers like shopping of goods or any short term financing. Limit of credit card depends on the average balance in the account and monthly income. One of the requirements to issues credit card is that the applicant should be the account holder of the bank.

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Internship Report on HBL Documents required for credit card

Application form of credit card Photocopy of national identity card Passport size photograph Salary certificate Last six month income certificate

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FINANCIAL ANALYSIS
Habib bank LIMITED PROFIT AND LOSS ACCOUNT FOR THE YEAR ENDED DECEMBER 31, Year 2005 2006 2007 2008 Rupees in (000) 12,246,81 21,191,47 25,783,87 30,966,63 Total Mark up/Interest Income 1 0 1 8 7,204,99 15,232,88 16,620,96 20,494,35 Total Mark up/Interest Expense 2 6 3 5 5,041,81 5,958,58 9,162,90 10,472,28 Net Mark up/Interest Income 9 4 8 3 402,29 Provisions against loans and advances Other provisions Net mark up/int income after provisions Non Mark up/interest income 8 4,236,71 1 4,639,00 9 2,268,53 3 6,907,54 2 4,344,25 Non Mark up/interest expense Extra ordinary/unusual items Profit before Taxation Tax Profit after Taxation Unappropriated profit Transferrred on revaluation of assets Profit available for appropiation Department of Commerce 59 0 861,19 6 1,702,09 4 860,30 0 24,87 0 2,587,26 4 3,675,61 5 26,07 5 5,977,88 1 1,886,84 2 24,58 6 6,177,72 4 1,762,69 9 2,823,07 0 24,58 6 4,369,19 2 2,563,29 0 2,563,29 5 803,25 3 3,130,22 1 4,851,84 7 24,69 5 2,565,94 2 1,405,32 9 1,301,30 5 3,447,46 1 2,565,94 2 4,535,55 0 493,41 1 897,03 6 5,918,05 1 4,535,55 0 1,794,72 6 119,28 9 8,483,99 3 8,289,11 0 1,794,72 6 1,016,31 7 3,224,63 6 12,824,66 0 9,957,13 2 1,016,31 7 5,259,35 7 6,038,46 4 11,751,85 8 11,001,54 0 4,561,66 0 6,786,19 6 4,822,92 3 12,017,85 697,69 7 4,415,33 9 6,928,92 5 5,182,25 2,370,86 7 4,892,92 9 6,835,60 2,035,99 6 3,141,05 2009 35,561,31 2 24,654,18 0 10,907,13 2 3,694,54

Internship Report on HBL 4 Basic/Diluted earning per share 0 6 5 7 1 8 1

4 3 Habib bank Limited Balance Sheet As on December 31, 2005 2006 27859360 12731952 12456653 56502210 149999325 10502990 5633051 275685541 3091135 8394130 239509391 3222106 1921338 7305496 263443596 12241945

2007 29436378 18380738 3452059 88491654 171198992 11922324 6013097 328895152 4138243 21230697 273173841 3220858 1379809 9531860 312675308 16219844

2008 32687335 21581043 3315500 75973238 191790988 13773293 9869367 348990764 3452031 13690222 300732858 2571169 208465 11291280 331946025 17044739

2009 35056012 22722639 14947435 99159957 18804243 8 14492194 14649380 38907005 5 3766144 20653921 32475975 2 7570181 179851 10006786 36693663 5 22133420

Assests cash and advances with treasury balance with other bank lending and financial instittution investment Advances Fixed assets deffered tax assets other assets

24798070 9713369 27050493 57416255 118864010 6620067 3851529 248313793

Liabilities: bill payable borrowings deposit and other account Sub-ordinate loan liabilities subject to finance lease differed tax liabilities other liabilities

3733124 5844389 222345067 3223355 484066 5219666 240849667

Net assets Represented by: Share capital reserve unpropriate profit surplus- net of tax

7464126

3000000 1851218 1886845 6738063 726063 7464126

5000000 2749533 2823072 10572605 1669340 12241945

6500000 2414833 4851840 13766673 2453171 16219844

7995000 3166056 3447467 14608523 2436216 17044739

13491563 3587969 2690728 19770260 2363160 22133420

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Ratio analysis
ADVANCE TO DEPOSIT RATIO

Formula: Advance/ deposit: Year % 2005 53.46 2006 62.63 2007 62.67 2008 63.77 2009 57.9

Advance to Deposit Ratio =Advance/Deposit 66 64 62 60 58 56 54 52 50 48 2005 2006 2007 2008 2009

INTERPRETATION: Since the computed value of advance to deposit Ratio is showing an increasing trend in FY 2006. Then it tends to decrease in FY 2007 and show slight increase in year

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2008 but decrease gradually in FY 2009, the over all trend is fluctuating. The factors of this computation are due to increase in total deposits. It is therefore suggested that the bank should review the policies regarding deposits and advances. However, the bank improve its ratio by maintain more advances. RETURN ON AVERAGE ASSET Formula: Net Operating Income/ Total Assets

Year %

2005 0.84

2006 0.67

2007 1.04

2008 0.38

2009 0.24

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Return on Average Asset =Net Op.Income/Total Assets 1.2 1 0.8 0.6 0.4 0.2 0 2005 2006 2007 2008 2009

INTERPRETATION: Since the computed value of ROA Ratio is showing a decreasing trend in FY 2006. Then it tends to increase in FY 2007 and showing gradually decreases in FY 2008-09. The over all trend is decreasing. It is therefore suggested that the bank should review the policies regarding assets keep deposit expenses low and improve operating activities. RETURN ON EQUITY Formula: Net Income/Stockholder Equity

Year %

2005 30.65

2006 20.37

2007 25.72

2008 9.17

2009 5.22

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Return on Equity =Net Income/Staqkeholder Equity 35 30 25 20 15 10 5 0 2005 2006 2007 2008 2009

INTERPRETATION: Since the computed value of ROE Ratio is showing a decreasing trend in FY 2006. Then it tends to increase in FY 2007 and showing gradually decreases in FY 2008-09. The over all trend is decreasing. It is therefore suggested that the bank should maintain its expenses related to deposits and improve its income status by offering more advances to clients.

CAPITAL ADEQUACY RATIO

Year %

2005 8.66

2006 9.48

2007 9.85

2008 8.03

2009 12.46

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Capital Adequacy Ratio 14 12 10 8 6 4 2 0 2005 2006 2007 2008 2009

INTERPRETATION: Since the computed value of capital adequacy Ratio is showing slightly rend in FY 2006-07. Then it tends to decrease in FY 2008 and showing gradually increases in FY 2009. The over all trend is fluctuating. GROSS SPREAD RATIO Formula: Net markup Income/gross markup income

Year %

2005 41.17

2006 48.12

2007 35.54

2008 33.82

2009 30.67

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Gross Spread Ratio =Net Markup Income/Gross Markup Income 60 50 40 30 20 10 0 2005 2006 2007 2008 2009

INTERPRETATION: Since the computed value of gross spread Ratio is showing a increasing trend in FY 2006. And showing gradually decreases up to the FY 2009. The over all trend is decreasing. It is therefore suggested that the bank should reduce its interest expenses paid on deposits and increase interest income that is earn on advances.

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Internship Report on HBL PROFIT BEFORE TAX RATIO Formula: PBT/Gross markup income: Year % 2005 20.93 2006 12.11 2007 17.59 2008 5.80 2009 2.86

Profit Before Tax Ratio =Profit Before Tax/Gross Markup Income 25 20 15 10 5 0 2005 2006 2007 2008 2009

INTERPRETATION: Since the computed value of profit before tax Ratio is showing a decreasing trend in FY 2006. It tends to increase in FY 2007 but showing gradually decreases up to the FY 2009. The over all trend is decreasing. It is therefore suggested that the bank should reduce its tax and other expenses and maintain its operating activities in order to increase its net income.

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Internship Report on HBL INCOME TO EXPENSE RATIO Formula: Income/Expense:

Year Times

2005 3.34

2006 4.13

2007 3.84

2008 3.59

2009 3.7

Income to Expand Ratio =Income/Expense 5 4 3 2 1 0 2005 2006 2007 2008 2009

INTERPRETATION: Since the computed value of income to expense Ratio is showing a increasing trend in FY 2006. It tends to decrease up to the FY 2008 but showing slightly increases in the FY 2009. The over all trends remain same.

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Internship Report on HBL It is therefore suggested that the bank should improve its interest income by giving more advances and reducing its interest expense on deposits by opening more currents accounts. BASIC EARNING PER SHARE Formula: Earning available to common share holder/Total no. of shares

Year %

2005 3.92

2006 2.91

2007 4.82

2008 1.41

2009 0.71

Basic EPS =Earning Available to Com m on Share holder/Total no. of shares

6 5 4 3 2 1 0 2005 2006 2007 2008 2009

Interpretation: Since the computed value of EPS is showing a decreasing trend in FY 2006. It tends to increase in FY 2007 but gradually decreases up to FY 2009. The over all trends decreasing. RESERVE TO TOTAL LOAN RATIO Department of Commerce 69

Internship Report on HBL Formula: Reserve /Total Loan

Year %

2005 1.56

2006 1.83

2007 1.41

2008 1.65

2009 1.91

Reserve to Total Loan Ratio =Reserve/Total Loan 2.5 2 1.5 1 0.5 0 2005 2006 2007 2008 2009

INTERPRETATION: Since the computed value of reserve to loan Ratio is showing an increasing trend in FY 2006. It tends to decrease in FY 2007 but showing gradually increases up to the FY 2009. The over all trend is increasing. It is therefore suggested that the bank should maintain its reserves in term of foreign and local currency to offering more loan to clients.

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LOAN TO TOTAL ASSET RATIO Formula: Loan/Total Assets: Year % 2005 47.57 2006 54.41 2007 52.05 2008 54.96 2009 48.33

Loan to Total Asset Ratio =Loan/Total Asset 56 54 52 50 48 46 44 42 2005 2006 2007 2008 2009

INTERPRETATION: Since the computed value of reserve to loan Ratio is showing an increasing trend in FY 2006. It tends to decrease in FY 2007 but showing gradually increases in the FY 2008 but again decrease in FY 2009. The over all trend is fluctuating.

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Internship Report on HBL It is therefore suggested that the bank should maintain its assets position and improving financial position by increasing interest on advances.

Equity to Assets Ratio Formula: Stockholder Equity/Avg. Total Asset Year % 2005 5.43 2006 4.04 2007 4.55 2008 4.31 2009 5.36

Equity to Asset Ratio =Shareholder Equity/Average Total Assets 6 5 4 3 2 1 0 2005 2006 2007 2008 2009

INTERPRETATION:

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Internship Report on HBL Since the computed value of equity to assets Ratio is showing a decreasing trend in FY 2006. It tends to increase in FY 2007 but showing decreases in the FY 2008 but again increase in FY 2009. The over all trend is fluctuating. It is therefore suggested that the bank should maintain its reserve position and net profit by increasing interest income on advances.

EQUITY TO TOTAL DEPOSIT RATIO Formula: Stockholder equity/Total deposits Year % 2005 3.03 2006 4.41 2007 5.04 2008 4.86 2009 6.09

Equity to Total Deposit Ratio =Stockholder Equity/Total Deposits 7 6 5 4 3 2 1 0 2005 2006 2007 2008 2009

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INTERPRETATION: Since the computed value of equity to deposit Ratio is showing an increasing trend up to FY 2007. It tends to decrease in FY 2008 but showing slightly increases in the FY 2009. The over all trend is increasing. It is therefore suggested that the bank should decrease its interest expenses on deposit by opening more currents account than saving accounts.

LAIBILITY TO ASSET RATIO Formula: Total liability/Total assets Year % 2005 96.99 2006 95.56 2007 95.07 2008 95.12 2009 94.31

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Liability to Asset Ratio =Total Liability/Total Assets 97.5 97 96.5 96 95.5 95 94.5 94 93.5 93 92.5 2005 2006 2007 2008 2009

INTERPRETATION: Since the computed value of liability to assets Ratio is showing a decreasing trend up to FY 2007. It tends to increase in FY 2008 but showing slightly decreases in the FY 2009. The over all trend is decreasing. It is therefore suggested that the bank should decrease its interest expenses on deposit by opening more currents account than saving accounts.

DEPOSIT TO LIABILITY RATIO Formula: Total deposits/Total liabilities

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Internship Report on HBL Year % 2005 92.32 2006 90.91 2007 87.37 2008 90.60 2009 88.51

Deposit to Liability Ratio =Total Deposits/Total Liabilities 93 92 91 90 89 88 87 86 85 84 2005 2006 2007 2008 2009

INTERPRETATION: Since the computed value of deposit to liability Ratio is showing a decreasing trend up to FY 2007. It tends to increase in FY 2008 but again decreases in the FY 2009. The over all trend is decreasing. It is therefore suggested that the bank should decrease its interest expenses on deposit by opening more currents account than saving accounts and giving more advances and maintain more reserve accounts

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SWOT ANALYSIS
STRENGTHS
HBL is a leading financial institution in terms of market share. It has a big market share in the domestic market. In terms of product design capabilities in relation to competitors, bank has been leading so far, right from 1947. HBL has introducing innovative products in the country i.e. Rupee traveler cheques, Flexi loans HBL is the oldest bank in the history of banking in Pakistan it was founders of Habib Bank who presented a bank cheque to Quaid-e-Azam HBL also provided funds for the establishment of SBP. It is the only Pakistan bank with the largest overseas net work which consists of 71 branches in 21 countries. HBL has largest net-work mode and customer base in Pakistan with 1469 branches in Pakistan. HBL is in dominating position in Pakistan terms of deposits, advances and assets. The organization uses a differentiated marketing strategy with a different marketing mix for each segment.

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Keeping in view the need of time the bank has automated its operations like providing ATM services

Bank has launched his credit card. Bank charges are lees then other banks

WEAKNESSES
A few branches are on line and have a universal access account. Few ATM are available for the customer of the bank. Rate offered on PLS are very lees as compared to the other banks No specialist person is for the simex in the branches. Employees are less in the branches while regional offices are over staff . The pays of the employees are comparatively less and there are no clear criteria for the promotion Rate of mark up charged from customer are high as compared to other banks.

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OPPORTUNITIES

With the largest work of branches, with highly qualified staff bank provides the quality of service and support to the customers and retain its leading position.

Bank should target segments like soft-ware energy pharmaceutical and communications which have potential for grew

As bank has minimum charges by installing the ATMS he can grabbed more market share.

Due to privatization management is free for decision making. Bank can increase his revenue by focused on flexi loan.

THREATS
Almost of the foreign banks that operations in the bigger cities only and are concentrating on individuals of higher income and blue chips companies they are taking away the mark from bank. As most of the loans are stuck up there are fewer tendencies to more loans thus giving a low loan Products and services introduced by HBL in the past have been copied and followed by other commercial banks. Department of Commerce 79

Internship Report on HBL The bank has to deal with increasingly thought competitions in domestic market from Nationalized foreign and private sector banks. The schemes of National savings are a threat for Habib Bank Limited. They offer higher rate of interest. . Habib bank is the bank of most educational institute but due to bad policies most of institute shift their account to U.B.L

8.1 Conclusion
HBL Bank is one of the strongest and giant banks of Pakistan. It has the largest network of ATM and Online Branches. This is the reason why it has a large market share and competitive edge over its competitors. HBL has a risk aversive and conservative investment policy. Its preference is a secure and diversified investment, unlike other banks. This the main reason behind lowest bad-debts rate and strongest investment portfolio of HBL among other banks of Pakistan.

Most of the work done is manual at HBL. It is the major drawback at HBL. However, it is converting its entire record keeping and maintaining procedures and systems computerized. This manual system helped me a lot in understanding the basic procedures and concepts.

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Internship Report on HBL The HBL Staff is found to be efficient and devoted towards their work. Every employee is the best-match for his or her concerned department and has in-depth knowledge of all procedures and functioning in that department. The experience at HBL was very much informative and pleasant. This internship program resulted in my orientation towards the practical banking. Moreover, it benefited in a way that whatever was studied at campus, this internship program resulted in implementation of those concepts. I had the chance to implement my concepts of Financial Accounting, Financial Management, Marketing and Management. Moreover, I observed how a practical life is different from the theoretical life. Indeed, this internship program will help me for future as well in my studies and professional life.

SUGGESTION
. Staff should be provided professional training in marketing, selling, finance and computer. It will be helpful in sharpening their abilities and developing their skills. Bank should emphasize on hiring of business graduates and computer experts for the simex system. ATMs should be installed in small cities as well. The political influence should be minimized on all type of the operations of the bank. Advance for non-productive investment should be stopped.

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Internship Report on HBL The influence of employees union should be minimized. Implantation on the rules, regulations and policies should be done at all cost. The customer satisfaction should be guaranteed through rapid delivery of financial products and services Habib bank should focus in the services of their educational institutes The training should be proper time period

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References:
Abdul Malik Mansoor Ahmed Shahid Zia Operational manager Loan officer Agriculture credit manager

www.hbl.com/business-customers-corporate-banking.php www.hblasset.com/

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