HABIB BANK LIMITED
INTERNSHIP REPORT
BY
SEEMAB ALAM HAIDER
MC170402757
DEPARTMENT OF MANAGEMENT SCIENCES
MASTERS IN HUMAN RESOURCE MANAGEMENT
VIRTUAL UNIVERSITY OF PAKISTAN,
LAHORE, PAKISTAN
DEDICATION
Every challenging work needs self-effort
as well as guidance of elders especially
who are very close to our heart. I would
like to dedicate this little work to my
parents especially to my father Mr.
HAIDER ALI (Late).
ACKNOWLEDGEMENT
All glories to Allah, the most beneficent, the most merciful, who
bestowed me with the sight to observe and mind to think and judge,
peace and blessings of Allah be upon the Holy Prophet (PBUH) and
His pure and pious descendants who advise strongly to followers to
seek knowledge from cradle to grave. I would like to start by
presenting humble gratitude to my admirable supervisor and to all
those, whose continuous support, advice and guidance during the
entire course of my report work enabled me to accomplish this
valuable task. No doubt that without his continuous support and
counsel I could have not been able to complete this report work. I
also like to pay my special thanks to all other faculty members of
Department of Management Sciences who always gave me positive
suggestions whenever needed.
I like to express heartiest thanks to my seniors and juniors for their
help, and I would like to pay special thanks to my Parents,
Teachers, and friends for their continuous moral support
throughout my academic life and all others who gave me
motivation.
To conclude, I would also like to extend my special thanks to my
mother and relatives who wholeheartedly supported and helped
me, all the way in this long journey of completion of my master’s
degree.
Executive Summary
Habib Bank Limited (HBL) is the banking sector organisation which
has played a key role in socio-economic development of Pakistan over
the years. Bank includes various departments i.e. Financials
Department, Loan Department, Planning & Development, Marketing
Department, Credit Department, Audit Department and Human
Resource Management Department. My basic task is to analyse the
functioning, monitoring and evaluation of different departments of the
bank such as the Management of human resource, Planning &
Development Credit Department, Audit Department and to analyse
how HBL is performing as compared to other banks operating in the
country.
Table of Contents
Executive Summary………………………………………………………………………………… 2
Acknowledgement…………….……………………………………………………………….…. 3
Habib Bank Limited……………………………….…………………………………………………9
HBL’s Mission …….……………………………………………………………………………………12
HBL’s Vision ……..……………………………………………………………………………………..13
Overview of the organization
a. Brief introduction of organization
b. Head office address
c. Product lines
d. Competitors
Organizational structure
a. Organizational Hierarchy chart
b. Comments on the organizational structure
Analysis of HRM Functions
a. Human resource planning and forecasting
Human resource planning Process
Forecasting HR requirements
Methods to forecast HR
b. Employee recruitment & selection Sources of candidates
Internal sources External sources
Employment selection process
c. Training & development
Training need assessment
Employee development
d. Performance Management
Setting Performance Standards and Expectations
How performance reports are written
e. Employee Compensation & benefits
Type of compensation & benefits
f. Organizational Career Management
Employee job changes
Job changes with the organization
Promotion
Transfer
Demotion
Separations
Layoff
Termination
Resignation
Retirement
Critical Analysis
Pest Analysis
SWOT Analysis
Conclusion
Recommendations
Reference and Sources
INTRODUCTION:
The word ‘Bank’ is derived from the French word named ‘Banque’ or ‘Bancus ’ which
means office , institution for the keeping, lending and exchanging the money. Some
authorities have the opinion that Word ‘Bank’ has derived from the ‘Germen’ word ‘back’
which is meaning joint stock of funds.
The bank is a financial institution to borrow money from one party and lends to other
parties like (Government, individuals, and business purposes as well) and other difference
between borrowing and lending rate of profit / interest for the bank. Banks borrow or lends
based on interest.
History of bank is very old because it is traced to as early as 2000 B.C. The priest in Greece
used to keep money and valuable of the people in temples. Its origin in also traced to early
goldsmiths. They use strong safe, for storing the money and other valuables of the people.
The first stage in the development of banking was the acceptance of deposits from people.
Later on goldsmiths began to issue receipts for the money deposited with them to settle
down transactions.
These receipts were used in payment of debt and acceptable to all. Which led to the second
stage of development in banking. When goldsmiths realized that they had surplus money
therefore they started lending some money to traders and merchants who constantly
requested for loans. They saw the potential and began to give interest on the money
deposited with them to attract more people this was the third stage towards the
development of banking.
They also planned to allow the customers to withdraw in excess of the amount deposited
money to meet the customer’s needs. After some time they used to keep some portion of
money for this purpose. It started too much confusion in the banking system and they were
not able to meet the demands of customers.
To overcome this problem, people felt there must be a bank which should control the
banking activities of different lending organizations.
Banks are being classified based on their sphere of activity.
COMMERCIAL BANKS:
It is an institution which accepts deposits, makes business loans, and offers related services.
Commercial banks also allow for various deposits accounts such as checking, savings, and time
deposit. These institutions are run to make a profit and owned by group of individuals, while
commercial banks offer services to individuals, they are primarily concerned with receiving
deposits and lending to businesses.
Such banks collect the money from the people (as borrowing) and extends the same money
as a loan for the development purposes. Commercial bank plays a key role in the economic
development of a country by performing the variety of function as given below:
a. Accepting of deposits ( current , saving and fixed accounts )
b. Making loans and advances (overdraft, cash credit, discounting bill).
Habib Bank Limited:
The Habib Bank Limited is a leader in Pakistan’s services industry. It has vast network of 1425
domestic branches and 55 international branches. This has been ensured that thrilling client
relationships that form the backbone of the banks operational services.
Today HBL plays a central role in financial as well as economic development in the country. It
has come a long way from its modest beginnings in the Mumbai on August 25, 1941 when it
commenced operations with a fixed capital of 25000 rupees.
Habib Bank has been a pioneer in providing innovative banking services. These include the
installation of the first mainframe computer in Pakistan followed by the first ATM and recently
the Cash Deposit Machines (CDM) systems with advanced features, 2000+ ATMs, online
internet banking with state of the art Banking app having 1million+ downloads over play store
alone.
The Banks towering presence in Pakistan’s financial and commercial life has remained
unchanged over the decades. The strength of its brand and image is stabilized by its
permanent building that has dominated Karachi’s skyline for 45 years.
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Following are some values of HBL,
Integrity
Team Work
Innovation
Meritocracy
Customer Focus
COMPANY’S BACKGROUND
HABIB BANK LIMITED was the first commercial bank is established in Pakistan in 1947. HBL
has grown its branch network and became the largest private sector bank with over 1700
branches and almost 2000+ ATMS across the country and a customer base exceeding 10
Million approx.
The Government of Pakistan privatized HBL in 2004 through in which AKFED acquired 51% of
the Bank’s shareholding and management control. HBL is owned by the Agha Khan Fund for
Economic Development by 51%, 42.5% of the shareholding is retained by the Government of
Pakistan (GOP)
Whilst 7.5% is owned by general Public i.e. over 170000 shareholders following by the public
listing took place in 2007.
The main for which this bank was establish are mentioned below:
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To promote industrial agricultural and socioeconomic process.
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Profitability investment
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Mobilize private savings and public funds and ensure their availability
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Assist people of Pakistan serving overseas to effectively
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Create new ventures for investments ensuring maximum return
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Help under developed areas and create employment opportunities.
HABIB BANK LIMITED MISSION STATEMENT:
‘To Be a Strong and Stable Financial Institution Offering Innovative Products and Services
While Contributing Towards the National Economic and Social Development’
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HBL wants its investors to proposer, to make their staff excel and to create value of
our stake holder.
To mobilize private savings and public funds for diverting the same into productive
channels and ensure the availability.
To promote industrial agricultural and socioeconomic process through the active
participation of private and public sector in the provinces.
Further, to guide and assist the people of Pakistan serving overseas to effectively and
profitability invest their foreign savings in the province as well as in other parts in
Pakistan.
Create a diversified and sound portfolio for utilization of idle funds and their
investment in the existing and new ventures especially in the pioneering of high
techs agro based export oriented and engineering project to ensure maximum
returns. Help under developed areas and create employment opportunities
Participative and seek the share of the country in the capital market of Pakistan by
way of subscription through locally people resources in the leading stock exchange
of the country and eventually paying the way of establishing a stock markets in the
provincial levels.
Habib Bank Limited Vision:
“To Be a Quality Financial Service Provider Maintaining the Highest Standards
in Banking Practices “
Further state of affairs of organization
The Bank is a leading full-service commercial bank. The key areas of operation are
Branch Banking, Corporate & Investment Banking, Treasury, SME & Rural Banking,
Financial Institutions & Global Trade Services, Transaction Banking and Islamic Banking.
The Branch Banking business is the mainstay of the Bank, positioning HBL as the
largest retail bank in Pakistan catering to all market segments. HBL Corporate &
Investment Banking Group is a leading provider of financial services to multinational
and local corporate clients across the country. The Bank also has the largest Treasury
operations in Pakistan and plays a key role in Pakistan's domestic markets.
HBL enjoys a significant international footprint. It provides opportunities to
effectively serve its core customers across its network. HBL is the largest executor of
CPEC related financing in Pakistan and coupled with being the first Pakistani bank to
start Renminbi (RMB) operations makes the Bank a key player in this economic
initiative.
As the leading financial intuition of Pakistan, HBL is at the forefront of all
development initiatives which includes growth of priority sectors and targeting the
unbanked population in the country. As the leading financial institution of Pakistan, HBL
remains committed to its objective of financial inclusion for all segments of society. The
Bank is already playing a leading role in enhancing gender diversity through ensuring
the access of women to the financial sector.
Head office address
Habib Bank Plaza I.I. Chandigarh Road, Karachi-75650,
Pakistan
Phone
111-111-425
Email
customer.complaints@hbl.com
www.hbl.com
Website
Product lines
By leveraging on our strong local and international franchise, HBL offers a range of products
& services to facilitate the demands of our FI/NBFI partners. These include:
1. Trade Finance
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Opening, advising, confirmation and negotiation of letters of credit.
Discounting of LCs including provision of bankers acceptances.
Trade loan syndications.
Risk participations.
Pre/post export financing.
Issuance of financial guarantees/SBLCs.
Documentary collections.
2. Cash Management
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Specialized Deposit Slips – conventional collection model.
Internet Banking – electronic collection (non-individual/business customers).
Cash In Transit – CIT
Direct Debit Collection – SIDA (Standing Instructions for Debit Authority).
Utility Bills Payments – UBP
HBL At Work (HAW) – payroll solution.
Vostro account services.
Commercial Payments - SSI
3. Remittances
With the help of a substantial market share in distribution of incoming home remittances
into Pakistan, HBL has built-up capacity to serve overseas FIs wishing to remit funds for
beneficiaries in Pakistan as well as in other specific locations.
4. Treasury
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Money market placements.
FX/Swaps.
Bonds /TFCs.
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Private placements & other debt instruments.
5. Bilateral Loans
Customized bilateral products are available to fulfil financing requirements of NBFIs, which
includes term loans and SBLC facilities.
Competitors:
United Bank Limited (UBL)
Allied Bank Limited (ABL)
Muslim Commercial Bank (MCB)
Standard Chartered Bank (SCB)
Meezan Bank
Alfalah-Bank
Faysal Bank
Silk Bank
Organizational structure:
a. Organizational Hierarchy chart
b. Comments on the organizational structure
Organizational Structure of Habib Bank Limited
PRESIDENT AND CEO
7 MEMBERS OF BOARD OF DIRECTORS
G.E, IOBGG.E, CPODG.E, CPCSG.E, RBGG.E, CIBGG.E, ARMG.E, AGAHEAD OF IT
HEAD OF HRHEAD OF FINANCE
SENIOR VICE PRESIDENTS
ASSISTANT VICE PRESIDENTS
CLERICAL STAF &NON-CLERICAL STAFF
Members of Board of Directors:
G.E
Group Executive
IOBG
INTERNATIONAL AND OVERSEAS BANKING GROUP
CPOD
CORPORATE PLANNING AND ORGANIZATIONAL DEVELOPMENT
CPCS
CREDIT POLICY AND COMPANY SECRETARY
RBG
RETAIL BANKING GROUP
CIBG
CORPORATE AND INSITUTIONAL BANKING GROUP
ARM
ASSETS REMEDIAL MANAGEMENT
AGA
AUDIT AND GENERAL INFORMATION
Comments on the organizational structure
The purpose of an organizational structure is to help creating an environment for human
performance. Although the structure must define the task to be done, the rules so established
must also be designed in the light of abilities and motivation of the human recourse available. By
analyzing the organizational structure of HBL presence of the following elements can be found in
its structure.
Centralized Decision making
All the decisions are made at the top management level and the subordinates have to obey
these decisions. This trend in the decision making shows a pattern of rigidity in structure of HBL.
Downward Communication
Communication is the process by which information is exchanged and understood by two or
more people, usually with the interest to motivate or influence the behavior of others in the
organization. Downward communication is the message and information sent from top
management to subordinates in a downward direction. Managers can communicate downward
to the employees through speeches, massages in company publications, information leaflets,
tucked into pay envelops material on bulletin boards, policy and procedure mandates.
HBL follows downward communication model. It’s a very traditional and conventional approach
and it can cause problems because it ignores the receiver of the communication because the
issuer of policies and procedures does not ensure communication. In reality may the messages
communicated downward are not understood in true letter and spirit.
Chain of Command
The chain of command is an unbroken line of authority that links all persons in an organization
and shows who reports to whom. It can be found that there is a scalar principle followed with in
the Bank because each and every person knows to whom one report can. The authority and
responsibility for different tasks and duties are different, as well as everyone knows the
successive levels of management all the way to the top.
Authority and Responsibility
Authority is the formal and legitimate right of the manger to make decisions, issues orders and
allocates resources to achieve organizational desired outcomes. By analysing the chain of
command of HBL, one can come to the conclusion that, as there is scalar pattern followed at the
organizational setup of HBL therefore it is implied that everyone in his position knows that what
is one’s authority and what is the responsibility and the authority it allocated.
Delegation of power
Delegation is the process, which managers use to transfer the authority and responsibility to
position below the established hierarchy. Most organizations today encourage managers to
delegate authority to the lowest possible level to provide maximum flexibility to meet customer
needs and adaptation to the environment.
There is lack or no existence of delegation at HBL, no such system prevails the managers try
to keep as much of the authority as they can and if some authority is delegated it is sure
that it will be misused
SWOT ANALYSIS OF HBL
HBL is considered to be very sound bank in the financial circles. The bank where the customers
can safely keep their money as long as they want. In SWOT analysis the best strategies
accomplish in organization’s mission by:
1. Exploiting opportunities and strengths.
2. Neutralizing its threats and
3. Avoiding its weaknesses.
Analysis of HRM Functions
HUMAN RESOURCE MANAGEMENT FUNCTIONS
Human Resource Management (HRM) is the directorate of organizational systems which
ensures that human talent is used effectively and efficiently to accomplish organizational
goals. Whether employees are in a big company or a small non-profit organization, those
must be recruited, selected, trained and managed. They also must be compensated, or
given them welfare and other fringe benefits.
Human Resource Planning (HRP) is a process by which an organization determines how it
should acquire its desired manpower to achieve the organizational goals. Thus, HRP helps
an organization have the right number and kind of people at the right places and right
times to successfully achieve its overall objectives.
HUMAN RESOURCE PLANNING & FORCASTING
HRM Planning process in HBL
In Habib Bank Limited, HRM process consisting of the following series of actives against
any project follows by the Board of Director:
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Forecasting
Predicting Manpower Problems
Planning
HRM is processing HRM Planning, considering the organizational objectives and strategies
effectively. As per HRM needs and supply sources are analysed both externally and
internally.
Forecasting HR requirements in HBL
Forecasting uses information from the past and the present to identify expected future
conditions. The purpose of Human Resource Forecasting is to estimate employee’s
requirements at a point for future period.
Forecasting is of two types:
i. Internal forecasting of human supply.
ii. External forecasting of human supply.
In HBL the process of forecasting is carried on by Deputy Director-I and Deputy DirectorII. The eligible persons are placed on the vacant positions for the best interest of the
Authority, and after completion of codal formalities eligible incumbents are promoted to
the vacant position on the basis of seniority-cum- fitness. On the other hand, some
candidates are selected out of the Authority after conducting formal procedure, on initial
appointment and on deputation basis.
Methods to forecast HRM needs
There are two general approaches to demand forecasting: statistical and judgmental.
Using a statistical approach, an organization predicts its needed workforce size on the
basis of certain business factors such as sales volume or market share, which closely
relates to the size of the needed workforce. Judgmental approaches to demand
forecasting involve the use of human judgment, rather than a manipulation of numbers.
Two of the most commonly used judgmental techniques are group brainstorming and
sales force estimates.
EMPLOYEE RECRUITMENT & SELECTION
Recruitment is a process of searching for and obtaining applications for jobs so that the
right people in right number can be selected. The process of recruitment for employees
starts by preparation of requisition / case for recruitment, screening of applications,
evaluation of candidates (Test/ Interview) and finally the selection and appointment of
employees.
To fill up vacant position in HBL, HRM sort out the vacant position of different post and,
after taking approval of higher ops., the same is advertised in the national daily
Newspapers. Accordingly, applications are collected and after scrutiny of the applications,
offer letters are issued to suitable candidates for their tests / interviews. Thereafter, on
the basis of tests / interviews most suitable candidates are selected as per advertised
posts.
SOURCES OF CANDIDATES:
There are various sources to recruit best candidates in the Authority,
Sources of Candidates
Internal Sources
1.
2.
3.
Present Employees.
Employee Referrals
Former Employees.
(a) Internal sources
External Sources
1. Advertisements .
2 . Deputation.
In HBL, promotions and transfers provides ways for current employees to move to other jobs.
Filling up the vacant posts internally may add motivation for employees to stay in the Authority,
rather than pursing career opportunities elsewhere.
(b) External Sources
HBL hire the employees through third party on a contractual basis the Authority to meet the
demands, to seek fresh ideas from the new comers and to implement, or to replace employees
who leave organization periodically.
Employment Selection Process
For the selection of internal employees, seniority of the employees is maintained in the
Authority. An employee of the authority is selected, on the basis of seniority-cum-fitness,
qualifying length of service and personal ability, suitable person is selected on the required post
on current charge basis or on regular basis. For the selection of external employee, CPC is
carried out the whole procedure for appointment and finally selected the most suitable for the
required post.
TRAINING AND DEVELOPMENT
Training helps employees to do their current jobs and Development helps the individual handle
future responsibilities effectively and efficiently for the benefit of the organization. Training is
the process whereby people acquire new capabilities and skills to perform better jobs. It
provides employees with specific, identifiable knowledge and skills for use in their revenue, and
performance. HBL had been established Training Academy Cell to provide training to all the
categories of HBL Employees. Whereas facilitate all training courses aboard and within Pakistan.
Although: there is no training process implemented in true manner. Therefore, no Individual
analysis & Employee Development on the basis of training is executed including assessment
centres, psychological testing, and performance appraisals
Training Need Assessment
HBL assessed training needs when new security features were introduced and new
mechanism/software were installed. In short, top management focuses on identifying
where, in the Authority; training is needed and also recognizes the contents of training that
an employee must do in order to perform competently.
Employee Development:
Beginning with the orientation of new employees, it includes different types of Job Skill
training. Training of all employees prepares the Authority to meet future challenges
effectively. Career Planning Cell, HBL identifies paths and activities for individual employees
and performance management are assessed, that how individuals perform their jobs.
However, enhancement of job training skills of an employee is lacking behind because most
of the employees are not being trained properly. There is a lack of well-structured training
program.
PERFORMANCE MANAGEMENT
Performance appraised by the management is a systematic and objective way of judging the
relative worth or ability of an employee in performing his task. In CDA, Confidential Cell in
H.R.D Directorate has responsible to distribute the Annual Confidential Reports (ACR)/ forms
to all the Directorates to evaluate the performance of Officers and Officials during the whole
year. 37 Setting performance standards and expectations Performance management is
broadly applied in HRD Directorate for meeting the following purposes:
 To identify employee’s promotion, transfer and lay-off or termination of services.
 To determine training and development needs of the employees.
 To motivate employees by providing feedback on their performance levels.
Performance reports writing procedure Performance appraisal is the process of evaluating
how well employees perform their jobs and then communicating that information to the
employees. Performance appraisal is also called employee rating, employee evaluation,
performance review, and performance evaluation. Performance appraisal focuses on the
actual performance of individual and manager. In CDA every immediate Boss is responsible
to evaluate the individual performance and awarded the grade like A1, A, B, C, D and average
or Negative with justification and reason thereof. A sample of ACR is annexed at the end of
report.
Method of grading professionals is rather conventional.
EMPLOYEES COMPENSATION AND BENEFITS:
Compensation system is basically a system of rewards that an individual receives in response
of effective performance and by offering services. As per theoretical concepts, these are
basic pay, variable pay, benefits and Employee rewards etc. CDA has been providing such
benefits effectively like two extra basic pay on every Eid and Christmas occasions every year,
overtime allowance, ex-gratia and meal charges etc. Different kind of allowances has been
enhanced like Medical, Conveyance etc. Particularly, CDA provides plots to the Employees
one time during the entire service as Service benefit. Types of compensation and benefits
The following compensations and benefits have been facilitating by the CDA to its
employees: -
COMPENSATIONS:
Basic pay as per Government rule, accordingly to pay scale of each employee, is granted on
the monthly basis which includes substantive pay, medical allowance, house allowance and
conveyance allowance. Financial Assistances are also granted to the family of deceased in
case the death of employee during service, which includes;
 Grant of 75% pension to the widow.
 Wave-off advances (i.e. House Building Advance, Motorcycle Advance etc.) up to 100%
from BPS-1 to BPS-15 and up to 50% from BPS-16 and above.
 Grant of Rs.10, 000/- burial charges.
 Re-imbursement of transportation charges, carrying of dead body from Capital Hospital to
native town.
 Retention of allotted accommodation / hired houses for the period of 03 years, if allotted.
 Appointment in any post of BPS-1 to BPS-15 on 02 years contract without advertisement.
 Free education to 01 children up to the age of 18 years.
BENEFITS:
The following benefits are grant to the all the CDA employees:  Pension after attaining the age of superannuation i.e. 60 years or after completion of 25
years’ service is given to employees.
 House Building, Motorcycle, Motor Car advances etc. are to be granted to all the CDA
employees according to seniority basis but sometime on special basis.
 Allotment of Plots to the CDA employees according to their entitlement is the most
precious benefit.
 Ex-gratia / Honorarium equal to one-month basic pay is grant against special duties / tasks.
 Eid, Easter and Christmas allowances up to Rs.2000/- are granted on the occasion religious
festivals.  Water charges against allotted / hired houses are reimbursed.
 Special relief fund is granted from (BPS-1 to BPS-5) for marriage ceremony of the
employee’s daughter.
ORGANIZATIONAL CAREER MANAGEMENT:
A career is the series of work-related positions a person occupies throughout his/her career
path. Careers are different and still evolving, and their evaluation puts a premium or career
development by both the employers and the employees. In case of theoretical concept, the
following main points are considered for Organizational Career Management like SelfAssessment, Feedback on reality, and Setting of career goals. In CDA, this standard is not
maintained accordingly, like Self-Assessment, almost every employee is not thinking that he
can perform better job in the other position in the interest of the Authority. Similarly, there
is no feedback system is available so that the weaknesses can rectify accordingly. Lastly,
most of the employees have no concept of setting their goals for future career.
CRITICAL ANALYSIS:
Presently the management of HBL considers that the Human Resource Development Directorate
has fundamental role for achieving the long and short term objectives. The main objective of this
office is to find out the experienced, well oriented, motivated and dedicated Human Force and
to depute them in all the Directorates. So that the overall performance can be improved and
achieving authority’s objectives can be made possible. This office is also providing maximum
opportunities for training and development to its employees through internal departmental
training and private institutions as well. Although, the authority is performing its functions
effectively, but there are some distorting factors such as politics and favouritism of top and
middle management to depute officers/officials to some places where they are not found fit and
suitable, which ultimately affects the overall performance of such offices. The employees
working in HBL belongs to all over the Pakistan, and to work in the authority, they need an
appropriate accommodation / place to live in the Capital City of Islamabad. Accordingly, to some
extent HBL managed to provide shelter to their employees in the capital city. There is a room for
improvement for adaptation to contemporary methods of operation and gradually making
conventional operations obsolete.
PEST ANALYSIS:
POLITICAL AND LEGAL ENVIRONMENT:
Banks are strongly affected by the political and legal considerations. This environment is
composed of regulatory agencies and government law that influence and limit various
organizations and individuals. Mostly these laws create new opportunities for business.
•To protect banking companies from unfair competition.
•To protect consumers from unfair business practices adopted by banking companies
•To protect the interest of the society from unbridled business behaviour.
ECONOMIC TRENDS:
A banking market requires better consumer market in volume along with higher borrowing
power. The available borrowing power depends on:
•Consumer income
•Saving rates
•Consumption patrons
•Rates of interest
•Budget deficit
•Exchange rates
•Cost of living
•Inflation
SOCIO-CULTURAL ENVIRONMENT:
A society is shaped by beliefs, norms and values. People in a society consciously and
unconsciously interact with:
•Themselves
•Others
•Organization
•Society
•Nature Following are the main factors.
Which arise because of change in socio-cultural environment?
•Consciousness about services
•Concern for environment
•Improved customer relation
TECHNOLOGICAL FACTORS:
Forces of technological advancement have played the most dramatic role in shaping the lives of
people. The rate of change of technology has greatly affected the rate of growth of economy.
New technology is creating deep rooted affects which could be observed in long run.
SWOT ANALYSIS:
Following is a list of SWOT of HBL
Strength:
The officers of HBL are considered as one of the most able professionals in the banking world. I
observed that HBL employees interact with their clients as if they are their personal friends and
discuss about their problems as their own. HBL has got a reliable and easy to use internal
computer system. Every information regarding the transactions in customers’ deposits has been
computerized. HBL maintained its data properly. HBL has very good security system. HBL is the
larger commercial bank in Pakistan with the network of over 1439 domestic and international
branches. Being the pioneer of banking in Pakistan, HBL is the oldest and is the richest in
experience. HBL focuses on consumer banking by lucrative schemes, products and services
suiting best to the wants and demands of the customers. HBL has opened all its branches at
commercial areas so that the customers or clients face no problems in reaching to the bank. The
band is always on the look to improve its services both to the domestic as well as overseas
customers. Human resources development and introduction of new technology towards modern
banking. 24 hours cash access and safe payment products for high value transaction. Having
potential to encounter the competitive environment in the market. Veteran and experience
private management group also involved in other interests like, textile and cement industry.
Customer enjoys the services at the residential localities.
Weakness:
Compared to the customer base, HBL helpline has acute shortage of customer helpline
assistants. Customers wait too long for a single query over the phone. Inspite of online banking
features, assistant most of the time suggest to approach the local branch. Which can be a
tiresome and disappointing experience as customers can have their relevant branch out of town.
Highest number of branches affecting the proper maintenance and difficulty in providing same
working environment at the each branch poorer system of recovery of the system is a threat to
bankruptcy. Lack of customer feedback. Low job satisfaction. Poor ATM’s Service Inconsistency
in efficiency and working atmosphere due to the largest of branches. Sense of insecurity in the
employees serving at low profitable branches due to the downsizing. Females feel uneasy in an
environment among the male workers. Victim of political, legal and socio-cultural pressures.
Opportunities:
Huge untapped market potential in consumer banking exists, in form of opening of ladies
banking section within the branch which is entirely a new idea and it will attract customer.
Opportunity for developing value added services combined with corporate banking
relationships, cash management services to large and medium sized corporate clients. Growing
policies of government on business and commerce sector provide HBL opportunities to take
advantages of these policies to meet efficiently with the business people to solve their problems
with the instant cash and financing facilities. Govt. is taking very bold steps to promote IT in
Pakistan. HBL has an opportunity to improve in technology. Large International network which
principally focuses on trade finance with Pakistan can be utilized to tap trade activities in other
markets. In addition, services such as cross border / offshore financing for corporate customers
can be enhanced. Customer feedback on different products and accounts has really improved
the bank performance and encourage the atmosphere for other future policies. HBL also has an
opportunity to expand its new technological advancement like; tele banking and internet
banking facilities in order to serve the customer more efficiently, specially E-banking facility is
also a new opportunity which is a flourishing business in foreign countries and can also be here,
if HBL takes the initiatives. Further reduction in intermediation costs possible, with improving
technology. Due to efficient and veteran management group, HBL can also improve and expand
its foreign operation successfully. Habib Bank Limited provide opportunity to utilize its skills and
efficiencies in leasing business.
Threats
An area in the environment that increases the difficulties the organization’s achieving high
performance Consolidation in the banking sector resulting in increased competition. Shortage of
trained and specialized staff at lower executive and officer levels. Inconsistency and government
policy regarding to business and economics sectors, specially political and regional situation
which makes the environment uncertain. Growing global technological advancement. Strict
regulation by government over credit facilities to the customers as Ill as to meet the prudential.
Loss of confidence of overseas customers due to freezing of accounts. Facing more competition
by foreign banks in the market. Foreign banks are flourishing in field of consumer financing. Also
the increasing operation of private banks. Highly attractive and advance services by foreign
banks to their customers.
CONCLUSION & RECOMMENDATIONS:
CONCLUSION:
HBL is clearly the first choice of every one who believe in qualitative approach of banking an
environment of highly responsible people. Bank is enjoying a healthy market share and taste
of good status in terms of its operative features and customer support. HBL is clearly the
best bank operating in Pakistan. Personal loan is a distinguished feature of HBL experiencing
a good reputation and reasonable mark up with respect to prevailing market mark up with
assurance of satisfaction and support. HBL has more customers as compare to other banks,
if they give proper attention to every customer then in few years it will be the leading bank
of the country.
RECOMMENDATIONS:
The management should try to decrease job insecurity among the employees. Training
program should be started for internees and newly appointed employees. There should be
transport facility for the employees. The waiting time over helpline is really needed to be
taken care of. The number of employees should be increased in order to decrease the
workload. The bank charges high service charges as compared to the other banks, so these
should be lowered down. Surveys must be conducted regarding customer satisfaction level
and all employees of this dept. should look forward to getting feedback whenever possible.
Adding of value added features that offer competitive advantage is also a means of avoiding
customer dissatisfaction. Quick response to customer queries is necessary to maintain a
healthy relationship with the customer. Proper training of customer handling should be
given to employees. Training workshops and coaching clinics should be considered as an
option that would provide adequate results.
Reference and Sources:
The following references and sources are used for prepping project report on Human
Resources of Habib Bank Limited, Islamabad: •
Official Website of Habib Bank Limited.
www.Hbl.com.pk
www.google.com
www.Academia.com.edu