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My department requires this report. The purpose of report is to write down all the major activities
that I performed in that particular branch during my internship training. It Comprises of:
Introduction of the organization
SWOT Analysis
PEST Analysis and Environmental Scanning
Products and services
Deposit department
Remittance department
Import and export department
HRM department
Financial Analysis of the client
Work done by me
Banking sector owes a pivotal importance in the economy of any country through its vibrant
functions. This is the deep seated motivator that geared up me to join any bank for internship.
Moreover, the practice and familiarity learned during this tenure would also attest very helpful and
alleviating in the awaiting proficient life.
Every student of MBA in University of Gujrat has an essential requirement to do six to eight
weeks’ internship in any of well reputed organization. This report is an upshot of my six weeks’
internship in Habib Bank Limited. It always remains the center of hustles in business activities.
Although, a derisory period of six weeks is not enough to learn the complex operations of Habib
Bank Limited I made industrious efforts to converse them comprehensively in this report.
Particularly, I have remunerated more accents on study of distinguishing features and services of. I
have made maximum venture to elaborate this report with the material read, listened and observed.
Table of Content
Executive Summary
Table of content
Products of HBL
All praises belong to Almighty Allah who the supreme authority knows the ultimate relation
underlying all sorts of phenomenon going on in this universe & whose blessing & exaltation
flourished my thought & thrived my ambitions to have the cherished fruit of my modest efforts my
humblest thanks to the Holy Prophet Hazrat Muhammad (PBUH) who is forever a torch of
guidance & knowledge for humanity as a whole. We deem it our utmost pleasure to avail this
opportunity to express gratitude & deep sense of obligation to my revered teachers and HBL‟s
relationship manager Mr. Sir Kaleem and Mr.Waseem Bhati for their valuable and dexterous
guidance, untiring help, compassionate attitude, kind behavior, moral support and enlightened
supervision during this whole project.
Finally, I would like to extend hurtful thanks to my adoring parents and friends for their day and
night prayers sacrifices and encouragement, moral and financial support throughout the course of
our study.
May all of them live long and enjoy a happy life!
Introduction of Banking:
A bank is an institution for the custody, loan or exchange of money for sanctioning credit, for
transferring funds by domestic foreign bills of exchange. It is a pipeline through which currency
moves into and out of circulation. As it is clear from the definition of banking, the main activity or
function of banking is borrowing and lending of money with a margin of gain. However, as far as
the present day banking is concerned, there are a number of different banks, set up under specific
different objectives, performing various functions.
Introduction of HBL:
Habib bank group is a leader in Pakistan’s services industry. An extensive network of 1425
domestic branches the largest in Pakistan and 55 international branches to meet customer
needs. Perhaps the Habib bank limited establish in 1941 at Bombay.
But its history starts in 1841 when a young boy name Ismail Habib reach Bombay for job.
After some time, he got the job with a dealer in utensils and nonferrous metals. Ismail Habib was
very keen and intelligent and became partner of his boss. Later on he was elected as a president of
the market. Many years later he expended his business. He engaged in private banking. So‟ HBL
has come a long way from its modest beginnings in Bombay in 25 august, 1941 when it
commenced business with a fixed capital of 25000 rupees.
Impressed by its initial performance, Quaid-e-Azam Muhammad Ali Jinnah asked the bank to
move its operation to Karachi after the creation of Pakistan, HBL establish itself in the Quaid’s
city in 1943 and became a symbol of pride and progress for the people of Pakistan. During the
early days of newly born state, government of Pakistan faces the great problem of fund shortage.
This time HBL again helped the governance of Pakistan and came to rescue to provide Pakistan
with assistance of not less than 8 crores. Besides this, Habib bank has been a pioneer in providing
innovative banking services such as first installation of mainframe computer in Pakistan followed
by ATM and more Internet banking facilities in all branches. The main strength of HBL brand is its
great services to all customers especially to the corporate customers and its prominent head office
building that has dominated Karachi’s skyline for 35 years.
Mission statement:
To be recognized as the leading financial institution of Pakistan and a dynamic international bank
in the emerging markets, providing our customers with a premium set of innovative products and
services, and granting superior value to our stakeholder’s shareholders, customers and employees.
“Enabling people to advance with confidence and success”
Values of HBL:
We encourage a culture of mutual respect and treat both our team members and customers
with humility and care.
For us, integrity means a synergic approach towards abiding our core values. United with
the force of shared values and integrity, we form a network of a well-integrated team.
At every level, from selection to advancement, we have designed a consistent system of
human resource practices, based on objective criteria throughout all the layers of the
organization. We are, therefore, able to achieve a specific level of performance at every
layer of the organization.
Team Work:
Our team strives to become a cohesive and unified force, to offer you, the customer, a level
of service beyond your expectations. This force is derived from participative and collective
endeavors, a common set of goals and a spirit to share the glory and the strength to face
failures together.
Culture of Innovation:
we aim to be proactively responsive to new ideas, and to respect and reward the agents,
leaders and creators of change.
Products and services offered by HBL:
HBL Muhafiz Rupee Travelers Cheque
HBL Auto Finance
HBL Flexi Loans for salaried personnel
HBL Lifestyles Financing Scheme
HBL I-Card
HBL House Financing Loans
HBL Easy Access
HBL Fast Transfer
Haryali Agricultural Loans
HBL E-Bank
Retail Banking:
The Retail Banking network, with 1425 branches, is the core strength of Habib Bank. The
network provides HBL with the largest diversified low cost deposit base of any bank in
Pakistan, and forms the basis for many of our other business lines: corporate and
investment banking and treasury activities. The network provides HBL with the largest
diversified low cost deposit base of any bank in Pakistan, and forms the basis for many of
our other business lines: corporate and investment banking and treasury activities.
Commercial Banking:
Enterprises operating in the middle market contribute significantly to the economy of a
country. During FY-2000 HBL‟s management decided to address this issue. On November
1, 2000 Commercial Banking came into being. The objective of setting-up Commercial
Banking was two-fold.
First to stop the erosion of market share in the middle market;
Second, to regain the lost market share Commercial Banking is making headway with
improvement not only in terms of the business figures but also in its ambiance. Renovation
of is being carried out in order to give a professional look to all the Commercial Banking
Corporate Banking:
The Corporate Banking Group serves large institutional customers who require
sophisticated products in an environment of intense competition. HBL Corporate &
Investment Banking Group is now recognized as a market leader and regularly arranges
and participates in most large structured finance deals.
International Operations:
HBL‟s ability to operate successfully in diversified markets and cultures is a function of a
long history in international banking – when first international branch was opened in 1951.
The Bank’s branches in financial centers continue to provide efficient trade settlement and
reimbursement services to the entire network and business with other banks.
Goodwill & historical background.
Professional and well trained staff.
Largest customer base.
HBL is Pakistan's largest commercial bank.
HBL has a domestic network of 1,425 branches with an international network of 48
branches in 26 countries.
20% share of HBL in financial market.
Large Balance sheet size.
Decentralized authority.
Unfavorable union activities and management conflicts.
Checking System is at intra-department level.
Weak marketing policies.
Nepotism & Favoritism.
Infected portfolio still exists as bad debts.
Centralized management in particular areas.
Opportunities for growth and expansion in cash management.
Faster market growth represents opportunity to grow and diversify.
Restoration of investor’s confidence and pick up in private sector investment flows.
Large deposit base and funds flow can help to avail related market opportunities.
Adverse & unstable government policies.
Political instability.
Advance technology.
Competition from other banks.
Pest analysis and environmental Scanning:
A broad view of market is important when management is interested in introducing better services
for customers. Identification of external and macro factors that influence buyers and thus change
the size and composition of market overtime involves initially building customer profiles. These
influences include:
Political and legal environment.
Economic trends.
Socio cultural environment.
Technological factors.
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. Business
legislation has following main purposes.
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 behavior.
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
Socio-cultural environment:
A society is shaped by beliefs, norms and values. People in a society consciously and
unconsciously interact with:
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. The improvement
techniques involved in on line banking. In brief PEST analysis affects the overall banking
companies and provides us the information about the external macro condition.
Hierarchy of Organization:
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 Institutional Banking Group
ARM: Assets Remedial Management
AGA: Audit and General Information
Departments I worked in
During the six-week internship as I had to work in different department. The day I reported in
branch, Manager operations had introduced me with Mr. Illyas Ahmed experienced bank employee
and told me that he would act as internship coordinator. Mr. Illyas with mutual consultation
assigned me seven departments which are as follow
Cheque Receipts Dept.
Account Opening Dept.
Fixed Deposits Dept.
Remittances Dept.
Clearing Dept.
1- Cheque Receipts Department:
It is a helping department for clearing as well as Remittance department. When any customer
brings any sort of negotiable instrument it has to be deposited in Cheque Receipt Dept. These
receivables are than further classified as under
Interbank transfers
Intra bank transfers
Online transfers
Travelers Cheque
All those Cheque which are of same branch or bank (e.g. HBL) are termed as online transfer
provided that both concern branches are online. Cross stamps are engraved in front of instrument
received to make it ownership of bank. As this department acts as facilitator and there is also
enough idle time, so more than often different responsibilities are also assigned to this department.
These include;
ATM Forms issued and Received.
Draft cancellation.
Complaint forms.
Phone banking.
2- Account Opening Department:
Account opening department is one of the most important departments of a bank. Itis known as
Gateway to the bank as anyone (any individual, partnership firm or JSC) who wants to initiate
relations or to avail the services of bank has to open an account. This is why it is known as
gateway to the bank. For opening of account form is given which includes all necessary
requirements needed for further process. This form also includes term and conditions of account
holders and all details of bank and customer relationship. (Annexure)
Before opening an account there are certain requirements;
Requirement for Account Opening
Opening of an Account:
When all requirements are fulfilled by the applicant, the procedure of account opening starts. To
open an account of any type, bank officer has to go through five different windows of MYSIS than
the account holder information is sent for verification;
1) ANC stands for Add New Customer
2) CIM stands for Customer Additional Information Maintenance
3) CAA stands for Customer Account Address
4) OCA stands for Open Customer New Account
5) ZYC stands for Know Your Customer
Allotment of Account Number:
After going through the procedure above mentioned an account number is given to the customer.
One thing is very important for understanding that even going through the above mentioned
procedure successfully, it does guarantee the opening of account. After allotment of account
number, it remains block for two days.
as the verification process is in process in these two days. This is why account is inactive for its
first two days.
Specialty of Account Number:
Fourteen digits’ account number is allotted to the HBL account holder. The first four digits are
code of HBL branch where account is going to be opened, afterward eight digits are customer
account serial number and last two digits indicates type of account.
For example:
A/C no: 1416 75000254 03
Branch Code: 12456
Account Serial no: 1294858684
Type of Account:
There are different accounts that can be opened with a bank. These are;
1. Current Account
2. Savings Account
3. Basic Banking Account
1- Current Account OR Demand Deposit:
Current Account of Habib Bank is open with 20,000/-, any Amount less than 20,000/-the bank will
charge 5% on the remaining balance, the current is mainly open forth business man. Who can
draw money any time from the bank this is the main function of this account. With minimum
balance of PRs. 5,000 in this account, account holder can enjoy unlimited transaction facility.
There is no interest paid by the bank on this sort of account.
2- SavingAaccount:
Saving accounts are opposite of current account. These sorts of accounts are provided to encourage
savings habits. There are different classifications of saving accounts, usually termed as short,
medium and long term saving plans. Each set has its own unique characteristics. The saving
Account of Habib Bank is started from PRs. 20,000/-, any Amount less than bank will make
charges of 55 per month against the balance. The function of the saving accounts is to save
the surplus money of the people by giving them good interest rate. (Annexure 1)
3- Basic Banking Account:
This account is basically introduced to cater needs of student and salaried persons. We can say
that it is an aspect of corporate social responsibility of bank. It is similar to current account as no
interest is paid. There will not be any deduction or penalties in case of minimum balance. The only
precaution to operate this account to make sure that balance should not be zero or negative.
Fixed Deposits Department:
Fixed deposits are those which can be withdrawn only after the maturity period. In this type of
deposits, the Bank allows high rates of interest depending on the time period of deposits. The
shorter the period of deposits, the less will be the interest and vice versa. (Annexure)
Remittance Department:
As it is clearly depicting from its name, this department is used to remit amount from one place
to another. This department performs following functions.
Intra bank transfer
Interbank transfers
Local fund transfers
Issuance of bankers Cheque
Intra Bank Transfers:
When an account holder presents a Cheque of another party who is also the accountholder of same
branch, funds are transferred immediate by using online system and available for usage. This is
known as intra Bank transfer.
Interbank Transfer:
When an account holder (may be of same branch but should be of HBL) presents Cheque of
another party (account holder of HBL any other branch), funds are transferred immediate by using
online system and available for usage. This is known as interbank transfer.
Local Fund Transfers:
If any HBL account holder wants to credit his account without being physically going to the parent
branch, he can transfer funds by LFT. Remittance department also performs the services of LFT.
Issuance of Banker’s Cheque:
Bankers Cheque is recently introduced by HBL to replace old concept of pay order and demand.
This step was undertaken to make banking operations more customer.
friendly as well as brought simplicity in banks operations. Earlier Pay Order (PO) was made for
local funds movement whereas Demand Draft (DD) to make payments in outside region. But now
for all customers, banker’s Cheque is issued. The issuance procedure is same as earlier. Customer
has to fill Remittance form which includes all relevant information. (Annexure)
Clearing Department:
Every bank performs both as a paying as well as collecting functions on behalf of its customer. It is
however an important function of crossed Cheque. A large part of this work is carried out through
the bankers clearing house.
A clearing house is a place where representatives of all the banks of a city get together and settle
the receipts and payments of Cheque drawn on each other bank. As the collecting banker runs the
certain risks in receipt of their ownership, the law has provided certain protections to
the banks. The basic function of clearing dept. arises when HBL account holder deposits Cheque
of another back to collect its payment on his behalf or HBL account holder gives a Cheque to any
other party concerning to any other bank.
Usually a Cheque is sent through clearing is credited to the depositor account day after tomorrow.
In this regard there are two
Types of clearings:
Inward Clearing
Outward Clearing
Inward Clearing
Inward clearing means all those cheque which are issued by account holders to other parties and
now these cheque are presented for payment (in term of amount of cheque credit to presenter
Outward Clearing
Similarly, when outside parties issue some cheque to our account holders, they deposit these
cheese in Cheque Receipts Department. Afterward these chausses relating to other banks operating
in country, are sent to clearing department or further process. Clearing dept. sends these cheque to
respective banks and after realization of cheque, funds are credited to the account of respective
In this regard there are two types of clearing
Intra city clearing.
Intercity clearing.
Main problems in HBL:
During my internship I found some major problems in HBL overall management.
There is noticeable communication gap between upper level management and operational
There is also over staffing in HBL moreover inefficient individuals are in credit card
There is huge difference in approaches of experienced staff & young staff.
Imported upper level management.
Experienced staff is frustrated mainly because of two reasons.
Salaries have not been revised from last 10 years.
Experienced Habibians are neither satisfied by the privatization of bank nor they were
taken into confidence at that times.
As everyone knows that "Knowledge without practice is sterile" In order to give vent to
this idea an Internship program of six to eight weeks has been arranged in different
esteemed organizations during our MBA program in this regard on next my main concern
was to know about all the aspects of ATM card. I came know about the types, process
of issuing ATM card to customers, filling forms, how to activate ATM card, charges of
issuing and using ATM card.
Then my duty was in Accounts department. I came to know the procedure for filling the
form to open an account, different types of stamps required and about signature of the staff.
Documents required to be attached with the account opening form and pasting of farms in
account opening registers.
Then in cash department my major task was to take print outs of fast cash vouchers and to
ask the customers sign them and then two authorized officers of the bank sign that voucher
and copy of CNIC of the beneficiary is to be attached with that voucher. Customer present
that voucher at cash counter and receives the cash. Cash officer will sign that voucher and
verify the signatures of authorized officers of the bank.
Major task I performed at bank was filling cheques deposit slips, remittances forms and
account opening forms and stamping the account opening forms.
On behalf of the bank I often make phone calls to customers so that they can receive
their debit cards, cheque books and gift boxes of money club accounts for their children.
Learning as an Intern
Working for six weeks at HBL as an intern was very informative, experience for me. During the
time I learnt many new things which are surely going to help me in my professional career. It was
a good experience for me to observe and to be the part of practical working of an organization like
During the internship I got a chance to understand general consumer’s behavior and his needs and
wants related to banking services and products. So come to the point I learnt so much and enjoyed
the working in HBL. I improve my communication skills while working in customer relation
department. In my internship I came to how the bookish knowledge can be applied in practical
field. It was chance for me to learn
Assignments During internship
1- During my work in accounts department Mr. Jehanzeb Khan (manager operation) assigned me
the duty of checking the files of previously opened accounts for any type of discrepancies like
utility bill or service certificate of the account holder is attached or not and checking stamps and
signature of the staff etc.
It was because an audit of these files in the coming month is scheduled. Almost above 50% of the
application forms were having discrepancies of different types. This turns out to be very
informative experience for me. Deposits are considered as lifeblood for any bank to survive. I
came to know about the procedure and different types of deposits that customers can maintain in
HBL, return rates that a customer can get and other terms and conditions of each type of account.
As far as checking the old files are concern it seems boring but from my point of view it was very
informative. The learning I got while doing this job would never be easy to get otherwise.
2- Mr. Jehanzeb Khan assigned us another task. State bank of Pakistan hasinstructed
all the banks
in Pakistan to make sure availability of computerized national identity cards of all the account
holders. We were given a list of accounts from which CNIC was required and preprinted letters.
Our task was to take the information from accounts like Name, Address and Account type by
entering the account number in the system and then printing that information on one corner of the
letters. This also turns out to be a very informative experience for me. I learn and get a chance to
work on computer software that the HBL is using, how to view account information, checking
balances and updating the information.
Habib Bank Ltd. is obviously the first and foremost selection of each and every one who
believes in qualitative approach of banking, an atmosphere of extremely accountable employees.
Habib Bank is taking pleasure in a strong market share and enjoying the taste of high-quality
standing in terms of its operational features and customer support. Habib Bank Ltd. is
undoubtedly the unsurpassed 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 additional customers as contrast to other banks, if they give appropriate concentration to
every customer then in coming few years it will be the principal bank of the country. I noticed that
Habib Bank Ltd. is an economically sound bank. Its proceeds are increasing gradually more years
by year. Its personnel are exceptionally good and genuine with the bank. But due to the current
economic crash, business of the bank has been reduced.
Habib Bank Limited views specialization and service brilliancy as the foundation of its policy.
The people at Bank understand that innovation, creativity, reliability, customized services and their
implementation is the important constituent for their future enlargement.
HBL is aware that they have paced into 21st century and they must get together its challenge by
obtaining the maximum level of technology.
There should be authority in every region which ensures efficient flow of communication
and its understanding.
The management should try to decrease job insecurity among the employees.
Training program should be started for internees and newly appointed employees.
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.
I suggest that number of staff members in the branch should be increased so that they can
meet their customers’ requirements quickly and efficiently
Recruitments should be strictly on merit basis and induction should beater proper and
extensive training
Old and lazy staff should be replaced by young, qualified and energetic staff.
Working environment, equipment, furniture and staff dressing should be according to the
modern banking style.
Special attention should be given to the behavior of the employees towards the customers,
as customer is the most important person for any bank.
Reference system should be eliminated and management should strictly order to the
employees and in charge officers to provide complete training to those internees also who
don’t have any reference.
Bank should give interest free loan to students for the betterment of society.
Banking ordinance, 1962
Companies ordinance 1984
Staff and Management of HBL
My Respected teachers
Annex A:
Annex B:
Annex C:
Annex D:
Annex E:
Annex F: