INTERNSHIP REPORT ON
HABIB BANK Limited
Internship Report submitted to the Faculty of Management &
Administrative Sciences in Partial Fulfillment of the Requirements for
the Degree of Masters of Business Administration
Program & Session
M.B.A (3.5 Years)
Date of Submission
Name of Program Coordinator ___________________
Signature of Program Coordinator_________________
Internship Certificate
1
EXECUTIVE SUMMARY
2
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 (Finance) 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, Chowk Pakistan Gujrat. HBL possesses an
imperative importance in the banking sector of Pakistan. 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.
.
ACKNOWLEDGEMENT
3
First I wish to thank Allah Almighty the most merciful and beneficent for enabling me to
reach here and use HIS resources to complete my internship. I am also grateful to the
department of administrative Sciences who gave us an opportunity of internship to enhance
our capabilities. This internship programmed, is very much helpful for me because, I have
learnt a lot by applying theoretical knowledge in practical field. I am humbly thankful to all
the employees of HBL, Chowk Pakistan branch Gujrat, who guided me during the course of
internship. The behavior of all the department supervisors was very good to me. They were
always there to encourage me and they were really cooperative to guide me the mechanism
of all departments in which I worked. In addition, I wish to say thanks to my parents to
support me and encourage me at every step.
4
Table of Contents
5
Serial
No.
(i)
(ii)
(iii)
(iv)
(v)
(vi)
(vii)
C
PT
1:
Heading
1.0
Title
Submission page
Signature page
Internship letter
Executive summary
Acknowledgement
Table of contents
Chapter 1
Introduction
1.1
Background of study
1.2
Purpose
1.3
Scope
1.4
Objective
1.5
Methodology
2.0
Summary
Chapter 2
Introduction
2.1
Over all respective sectors in Pakistan
2.2
Role of organization in Pakistan
2.3
Organization structure
2.4
Over all Functions of organization in Pakistan
3.0
Summary
Chapter 3
Introduction
3.1
Brief history of organization
3.1.2
Relationship of head office to the branch
3.1.3
No of departments
3.1.4
Offices
3.2
Current staff
3.2.1
Current staff of branch according to
qualification and experience
3.2.2
Training received by no. of employees
3.2.3
Work load
3.2.4
Salary structure
3.2.5
Promotion system
3.2.6
Incentives and motivation
3.2.7
Responsibilities and Duties performed
3.3
Critical analysis of branch
3.3.1
Communication system
3.3.2
Hiring system
3.3.3
Morale of staff
3.3.4
Physical facilities
3.4
Performances
Summary
Chapter 4
Page
number
1
2
3
4
5
6
7
HA
ER
6
1.0 Introduction:
The core objective of preparing this report is to express my learning During the 6 weeks
period of internship. This is the mirror of my practical exposure that is originated through
time spent in “Habib Bank Limited”. The report is about HBL its departments, profile and
its financial analysis. In the report, SWOT analysis is conducted so that I may able to give
an authenticated approach to problems faced by the Branch. Then I conducted analysis for
problem identification and also gave some recommendations to eliminate these problems
and finally I concluded this report. Management style of HBL is somewhat participative and
its culture is friendly and cooperative. I have learnt a lot of different fields, and
organizational behavior in real world phenomenon which gave me practical knowledge of
what I have studied theoretically in MBA.
1.1 Background of study:
In general, an Internship is thought of as a program which "bridges the gap" between the
academic environment and a future work environment. Students that participate in an
Internship are generally
more confident and more qualified when seeking future employment.
1.2

Purpose:
The purpose of my internship was
To have intensive field experience
7



To receive an introduction to an organization
To apply what was learned during coursework to the working world.
To acquire good work habits.
8
1.3
Scope:
As an internee of HBL the focus of my study was on general banking procedures in one of the
branches of HBL. These operations include remittance deposits advances and foreign exchange
Similarly different aspects of over all of HBL are also covered in this report
1.4
Objective:
Discuss thorough study of Habib bank limited
To test my aptitude for a particular career before permanent commitments are made.
Mainly My objectives toward internship program are to broaden my horizon by applying my
accumulated knowledge and skills in accomplishing my tasks. When entering in the real
working environment, I have developed my socializing skills with organizational personnel.
Also, I can observe my strength and weakness while working. Importantly, I can say that
internship gained my experience and is a firm step for my future career.
1.5 Methodology:
The methodology reported for collection of data is primary as well as secondary data. The
biggest source of information is my personal observation while working with staff and having
discussion with them. Formally arranged interviews and discussions also helped me in this
regards.
(i)Primary data:


Personal observation
Interviews of staff
(ii)Secondary data:





Manuals
Journals
Magazine
Annual reports
Internet
9
Summary:
Chapter 1 was an introductory chapter that discussed the introduction of study, background of
study, purpose, scope and objective of the study.
10
CHAPTER 2
2 Introduction:
In this chapter I will throw light on the bank, about its history in Pakistan, types and brief
details of HBL.
11
What is bank?
The term bank is being used for a long time yet it has no precise definition. The basic reason is
that banks perform not just one but many types of functions originally. The banks were
supposed to make short term loans to traders only. The banks now not only make short term
loans to the formers, traders, industrialists etc. but also invest in a wide variety of long term
earning assets. Commercial banks also undertake and execute trust, deal in stocks shares and
debentures, issue guaranties and indemnities underwrite and sell new securities and deal in
foreign exchange etc. Banking industry acts as life blood of modern trade and commerce acting
as a bridge to provide a major source of financial intermediation.
Evolution of banking
The word 'Bank' is said to have been derived from the words Bancus or Banque or Bank. This
history of banking is traced to as early as 2000 B.C. The priests in Greece used to keep money
and valuables of people in temples. The origin of banking is also traced to early goldsmiths.
They used to keep strong safes for storing the money and valuables. The persons who had
surplus money found it safe and convenient of deposit their valuables with them. The first stage
in the development of modern banking, thus, was accepting of deposits of cash from those
persons who had surplus money with them.
The goldsmiths used to issue receipts for the money deposited with them. These receipts began
to pass from hand to hand in settlement of transactions because people had confidence in the
integrity and solvency of goldsmiths. When it was found that these receipts were fully accepted
in payment of debts; then the receipts were drawn in such a way that it entitled any holder to
claim the specified amount of money from goldsmiths.
A depositor who is to make the payments may now get the money in cash from goldsmiths or
pay over the receipt to the creditor. These receipts were the earlier bank notes. The second stage
in the development of banking thus was the issue of bank notes. The goldsmiths soon
discovered that most of the money deposited with them was lying idle. At the same time; they
found that they were being constantly requested for loan on good security.
12
They thought it profitable to lend at least some of the money deposited with them to the needy
persons. This proved quite a profitable business for goldsmiths. They instead of charging safe
keeping charges from the depositors began to give them interest on the money deposited with
them. This was the third stage in the development of banking.
Types of Banks

Central bank or state bank

Commercial bank

Exchange bank

Industrial bank

Agriculture bank

Investment bank

Saving bank
2.1 Over all respective sector in Pakistan
The partition plan was announced on June 3, 1947 and August 15, 1949 was fixed as the date
on which independence was to take effect. It was decided that the Reserve bank of India should
continue to function in the dominion of Pakistan until September 30, 1948 due to
administrative and technical difficulties involved in immediately establishing and operating a
Central Bank. At the time of partition, total number of banks in Pakistan were 38 out of these
the commercial banks in Pakistan were 2, which were Habib Bank Limited and Australia Bank
of India. The total deposits in Pakistani banks stood at Rs.880 million whereas the advances
were Rs.198 million. The Governor General of Pakistan, Muhammad Ali Jinnah issued the
order for the establishment of State Bank of Pakistan on 1st of July 1948. Thus a landmark was
made in the history of banking when the state bank of Pakistan assumed full control of banking
and currency in Pakistan. Up to December 31, 1973, there were 14 Pakistan commercial banks
that functioned all over the country and in some foreign countries through a network of
branches.
13
The Government of Pakistan in the late 90‟s introducing the need for the privatization of state
owned banks and companies. The private sector has accepted the challenge and most of the
banks are privatized today. The State Bank of Pakistan issues the shares of these periodically.
Bank employees and other common peoples can also purchase these shares and earn profit.
Commercial banking
Today, in Pakistan, there are more than 7000 branches of commercial banks along with an
established network of supplementary financial institutions. All this development in the
banking sector is the result of untiring efforts of four decades.
2.2 Role of HBL in Pakistan
HBL was the first commercial bank to be established in Pakistan in 1947. Over the years, HBL
has grown its branch network and became the largest private sector bank with over 1,468
branches across the country and a customer base exceeding five million relationships.
Branches:
1
HBL carries on its business through a wide network of branches. These branches
perform their functions under the supervision of local principal offices and head office in
Karachi. The bank has over 1468 branches in Pakistan in 216 cities and 40 overseas branches,
with ATM Facility in more than 80 cities.
14
History of HBL
1
Habib Bank Limited was established by Mr. Ismail Habib (Late) on August 25, 1942 at
Bombay. It was the first Muslim Bank of the sub-continent. It was established with a paid up
capital of Rs. 2.5 million. At an early stage, the number of its branches was only 12.
HBL established operations in Pakistan in 1947and moved its head office to Karachi. HBL first
international branch was established in Colombo, Sri Lanka in 1951 and HABIB BANK
PLAZA was built in 1972 to commemorate the bank’s 25th anniversary. With a domestic
market share of over 40.
Share capital:
Issued Capital
The bank was setup with an issued capital of Rs.1.5 million.
15
Authorized Capital
Authorized capital of HBL in 13800 million rupees
Issued, Subscribed, and Paid-up Capital
Issued, subscribed and paid-up capital in year (6942.615 million*10)
Objectives:
Following are some main objective of HBL

To earn profit for the Bank itself and maximize its shareholders value.

To provide solutions for multiple requirements of clients of diverse financial
nature.
To manage with the changing trends of the modern day financial market.

To be a diversified bank by offering all basic consumer services and specialized
services.

Honest and ethical conduct, including ethical handling of actual or apparent
conflicts of interest between personal and professional relationship.

To provide employment opportunities to people .

To help in development and industrialization of the country.
Symbol of HBL
This symbol of HBL contains Bismillah at top,
Sword under Bismillah
And then lion under sword
16
.This symbol depicts:
Bismillah …….. Islamic values and culture
Sword……power
Lion…….. Strength
HBL ……..brand name
THE POWER TO LEAD …….logo
1
Privatization of HBL
On December 29, 2003 Pakistan's Privatization Commission announced that the Government of
Pakistan had formally granted the Aga Khan Fund for Economic Development (AKFED) rights
to 51% of shareholding in HBL, against an investment of PKR 22.409 billion (USD 389
million). On February 26, 2004, management control was handed over to AKFED. The Board
of Directors was reconstituted to have four AKFED nominees, including the Chairman and
President/CEO and three Government of Pakistan nominees.
Brand
Our brand identity is the outward expression of what we stand for as an organization. This is
summarized in our vision, mission and is supported by our values.
Vision
Enabling people to advance confidence and success.
17
Mission Statement
To make our customers prosper, our staff excel and to create value for shareholders.
Core values
HBL is firmly grounded with a corporate philosophy that incorporates five solid values which
each individual associated with the bank abides by.
Excellence
This is at the core of everything we do. The markets in which we operate are becoming
increasingly competitive, giving our customers an abundance of choice. Only through being the
very best, in terms of service we offer, our products and premises, can we hope to be successful
and grow.
Integrity
We are the leading bank in Pakistan and our success depends upon trust. Our customers - and
society in general - expect us to possess and steadfastly adhere to high moral principles and
professional standards.
Customer Focus
We understand fully the needs of our customers and adapt our products and services to meet
these. We always strive to put the satisfaction of our customers first.
2.3 Organization structure
Any organization needs a structure, which provides a framework for successful operations.
The operation of an organization involves a number of activities, which are related to decisionmaking, and communication of these decisions. These activities must be well coordinated so
that the goals of the organization are achieved successfully.
Chairman
18
Board of director
President
Country heads
Area heads (regional manager)
Branch manager
2.4Over all functions of HBL in Pakistan
Individual customers
HBL caters to all market segments, offering products that are as diverse as the people we
service. We remain resolute in our commitment to provide products that are competitive and
services that are exemplary. Whether establishing a new venture or expanding an existing
business, our team understands your banking needs and works closely with you to realize your
goals. HBL provides the following products and services to meet its individual customer
requirements:
I. Term accounts:
Offered in a variety of tenors with deposits as low as Rs. 10,000.
II. Current accounts:
19
Our Current Accounts offer features that meet your daily banking needs.
III. Saving accounts:
HBL‟s Saving Accounts cater to individual saving habits.
IV. Foreign currency accounts:
Offered in multiple currencies interest paid on a quarterly basis.
V. Debit card:
HBL Visa Debit Card allows you to pay for your purchases directly from your bank account.
Features :
1
1. No Interest
2
2. Ease & Security
3
3. No Liability
4
4. International Recognition& Acceptability S
5
5. pending Limits
6
6. Free Account Statement
7
7. 24 hour Customer Service
8
8. Global Customer Assistance Service
VI. Bank insurance:
HBL and New Jubilee Life Insurance Company Limited introduce Amaan (Retirement Plan)
and Tabeer (Child Education & Marriage). These products have been designed keeping HBL`s
customer base as the focus and will provide life insurance along with an investment option.
1. Amaan (Retirement plan)
Amaan is a pension plan that provides an opportunity for growth through investment in a
balanced portfolio with post-retirement income benefits. The plan covers life insurance and
gives attractive returns on investment to its customers.
2. Tabeer (Child Education and marriage plan)
Tabeer is a plan that provides parents with a means to accumulate a fund over a period of time
which can then be used to pay for a child’s education or marriage.
20
Plans are available for both under and over 45 years of age.
VII. Phone banking:
Your bank is just a phone call away. You can now call HBL Phone Banking and save a trip to
the branch. Your query will be resolved in a single telephone call from anywhere and at
anytime.
HBL offers a wide range of products and services for its business customers.
I. Corporate banking:
HBL Corporate Banking Group comprises a seasoned team of Relationship Managers (RMs) to
meet the demanding service standards of large corporations. A long history of financing and
nurturing relationships in Pakistan has given HBL a unique insight, enabling us to provide
timely and effective financial solutions for our customers to meet the growing challenges of a
global economy. If you are a corporate customer, with a turnover of at least PKR 300 million,
we have a range of solutions designed to help you with your banking needs. Our RMs has the
expertise you need to create tailored financial solutions catering to the specific requirements of
your business. Whether establishing a new venture or expanding an existing business, our team
understands your banking needs and works closely with you to realize your goals.
II. Commercial banking:
HBL‟s Commercial Banking Group targets medium sized companies with a turnover of at least
PKR 50 million. Our business units are located in Karachi, Lahore, Faisalabad, Sialkot,
Gujranwala and Peshawar. Each unit is dedicated to service business clusters located within
these cities. We have the ability and the resources to meet the needs of your business with our
proactive, responsive and experienced Relationship Managers who are committed to
21
understanding your business. We cater to the needs of a broad spectrum of clients. To do this,
the business-banking group is segregated by the size of the customer.
For customers with an annual turnover between PKR 50 million to PKR 300 million, our
Commercial Banking group provides a wide range of products that meet specific customer
needs.
Features:
We offer financing for the following:

Working Capital

Procurement of Inventory

Receivables

Procurement of Machinery

Expansion of production facilities

Import of raw materials

Exports

Guarantees
III. Investment banking:
HBL offers full-service Investment Banking capabilities to its clientele. This year alone, HBL
has closed over thirty transactions with a cumulative worth of over USD 2 billion. This is a
testament to out-of-box thinking and innovative products we bring to our customers.
The Investment Banking Group functions in three specialist business

Project Finance,

Debt Capital Markets & Syndications areas and

Equity Capital Markets & Advisory.
IV. Islamic banking:
22
Islamic Banking is a growing market segment that offers attractive opportunities to potential
and existing customers. At HBL, Islamic Banking offers Shariah compliant products and
services to meet the short and long term requirements of business and trade. Islamic Banking
provides Ijarah (leasing) for vehicles, plants and machinery to meet long-term customer
resource requirements. Murabaha (local & import) facilities are provided to meet the short-term
financial needs of mid-market and corporate customers. HBL‟s Islamic Banking products are
fully Shariah compliant and duly certified by independent Shariah Advisors
V. Cash management:
HBL offers a comprehensive platform for customers to avail Cash Management Services
throughout Pakistan. Our Cash Management Services reduce the cash turnaround of your
company, thereby making it cost efficient
Features:

Centralized Collections / Funds Transfer

Centralized Payments / Disbursements

Customized MIS Reporting

Centralized Customer Support through IT/Operations
VI. E-banking:
HBL is also providing unique and latest online services like online fund transfer, balance
checking to its customers.
VII. Rural finance:
HBL‟s Agriculture loans are spread across the country and provide financing through over 800
branches. We have the largest private bank portfolio in the country with over PKR 18 billion in
various agriculture sectors. HBL‟s presence in all agriculture belts of the country ensures easy
access to farmers in rural areas.
Features:
23

Revolving Agri Scheme

Haryali Farm Transport Scheme

Agri Development loan

Agri Development loan (Fish Farming)

Agri Development loan (Drip Irrigation)

Agri Production Finance

Haryali Livestock Loans
VIII. Asset management:
HBL Asset Management Limited, A Wholly own subsidiary of Habib Bank Ltd. was
incorporated on 17 February, 2006 as a public limited company under the Companies
Ordinance 1984 and was licensed for Investment Advisory and Asset Management Services by
Securities and Exchange Commission of Pakistan on 3rd April, 2006.
The credit department has to:

Visit their clients.

Carry out through investigation about the client.

Check the credit status of the client with other banks.

Report the SBP about the credit status.

Arrange the credit approval from the State Bank.

Calculate client mark up.

Charge mark up from the client account
Summary:
24
This chapter concludes what is bank? The brief history of banking, evolution of banking types
of banks, introduction of HBL in Pakistan, history of HBL in Pakistan. Organization structure,
brand, vision, mission, core values, products/services of bank.
CHAPTER 3
25
Organization
Introduction
This chapter is all about organization in which I worked. it tells us about brief history of HBL
Chowk Pakistan branch Gujrat. Its relationship with head office, departments, offices, staff,
critical analysis of branch and its performances.
3.1 Brief history of organization
In Gujrat HBL was formed on 31st march 1998. It developed by leaps and bounds and now the
largest commercial bank of city. It has gone through many hardships that’s why able to be
reached at this position.
3.1.2 Relationship of head office to the branch office
All major policies rules regulations and controls are devised by head office of HBL in Karachi.
Then these policies are conveyed to regional heads and branch heads. You can say that it is a
centralized decision making style.
All routine matters are decided at branch level by the manager of branch with permission of
him. If any problem or matter is beyond limits then it is referred to regional headquarter. it can
be said a decentralized decision making style
3.1.3 Number of departments
There are various departments on which day to day banking of HBL composes to satisfy
customers. here are banking department`s functioning in HBL.
26
1
1) Computer Department
2
2) Credit department
3
3) Foreign exchange department
4
4) Operations department
5
5) lockers.
1. Computer Department
The objective of this department is to facilitate customers in payment of their cheques. The
main functions performed by this department are:
1
1. Checking balance.
2
2. Deduction from balance on clearing cheques.
3
3. Issuing bank statements.
4
4. Deduction of charges for services provided
5
5. Receipt of utility bills
6
6. Online transfer of remittances
7
7. Comparing signature
8
8. Maintain a record of transaction history of accounts
9
9. Communication through E-mail etc…
b. Credit Department:
10
For one week I was sent to credit department but I spent a single day there. Although in credit
department there was lot more to learn but to my hard luck the in charge of credit department
was not cooperative. On my first day in credit department I was keen to know what the
procedure to sanction credit is. I also wanted to know what different types of advances are as it
is asset of any bank but the in charge was not in a mood to tell me anything about credits and
when I said to him that I want to learn about credit he replied that this is totally different from
your bookish knowledge
27
I. HBL credit card:
With the help of HBL Credit Card customer enters to a world of convenience and flexibility. It
is accepted over 29 million merchants worldwide. HBL Credit card makes shopping fun and
paying simple. So makes most of your shopping experience.
Benefits
1
1. Buy now, pay later
2
2. Pay as much as customer wants
3. Cash advance
1
4. Balance transfer facility
2
5. Security
3
6. Convenience
II. HBL debit card
HBL Visa Debit Card allows a card holder to pay for his purchases directly from his bank
account. He doesn’t have to carry cash and his monthly statement provides him with a complete
record of all his transactions so he can manage his expenses with ease.
Benefits
1
1. No Interest
2
2. Ease & Security
3
3. Spending Limits
4
4. Free Account Statement
5
5. International Recognition & Acceptability
6
6. No Liability
III. HBL personal loan
28
With the rising cost of living, it is becoming increasingly difficult to make expensive purchases
or meet unexpected expenses. HBL is helping customer finance them with Habib Bank personal
Loans (old name flexi loan). Customer may avail a personal loan of up to SIX TIMES of his net
take-home salary subject to a maximum of Rs.300,000/- provided he work for an organization
approved by HBL.
Features
1
1. Flexible tenure: 12, 24, 36,48 or 60 months
2
2. No processing fee
3
3. Repayment through easy and affordable monthly installments from salary.
4
4. Credit Life & Disability Insurance
5
5. Repayment through easy and affordable monthly installments
6
6. You determine the need, we help you finance
7
7. Option of add up replacement for existing customer.
8
8. Minimum salary Rs. 15000.
9. No salary limit for existing customer.
29
IV. HBL bank insurance:
HBL and New Jubilee Life Insurance Company Limited (NJLI) introduce Amaan (Retirement
Plan) and Tabeer (Child Education & Marriage). These products have been designed keeping
HBL‟s customer base as the focus and will provide life insurance along with an investment
option.
V. HBL Zarai banking
HBL Zarai Banking facilities are spread across the country and provide financing through more
than 800 of their branches. HBL‟s presence in all agriculture belts of the country ensures easy
access to farmers in rural areas. HBL Zarai Banking provides loans to small-scale land owning
farmers as well as large institutionalized and alliance based finance, enhancing agricultural
harvest and, in turn, economic output of the country.
Products HBL Zarai Banking enables farmers to invest in premier quality seeds, fertilizers,
pesticides, agricultural implements and non-farm setups through its various product programs.
c. Foreign Exchange Department
International trade is growing and with the development of international trade it has become
more imperative for countries to devote more and more attention to the complicated
mechanism.
of Foreign Exchange. It is more important in case of developing countries. It is need of time,
that a country should conserve its foreign exchange resource
d. Bills Clearing Department
1
I. What is clearing?
“A system by which banks exchange cheques and other negotiable instruments draw
on each other within a specific area and thereby secure payment for their clients through the
Clearing House at specified time in an efficient way.”
Clearing in HBL
By clearing means, sometimes accountholder of HBL presents a cheque that is drawn on a
person (who has an account in HBL) instead of the bank. In this case, bank accepts this cheque
in clearing department and on 3rd day collects amount from bank on which cheque is drawn
through clearing to take amount from that person‟s account upon whom the original cheque
was drawn. Every Bank performs the paying and receiving functions. Cheques are collected
which are drawn up to Banks for customers. Similarly the cheques drawn on different Banks
and deposited by Banks own customers for collection within the city is known as clearing The
functions of receiving and paying is mostly done through the clearing house.
II. Clearing House
Clearing House is a place where representatives of all banks sit together and interchange their
claims against each other with the help of controlling staff of NIFT. It is one of the services
provided by the NIFT to the commercial banks. Different banks are the members of this
clearing house. Here each representative presents the cheque that is not drawn on his bank to
the representatives of the banks on which the cheque was drawn and collects the amount on
behalf of his customer. Similarly each bank receives cheques from other banks.
III. National Institution Facilitation Technologies (NIFT)
NIFT (National Institution Facilitation Technologies) is the department which is created by the
SBP for clearing the checks of different banks. National Institutional Facilitation Technologies
(Pvt.) Ltd. was incorporated in September 1995 as a joint venture between a consortium of six
major banks and private sector. It is responsible for the establishment and management of
automated clearinghouse facilities in Pakistan. NIFT is proactively involved in the
modernization of payment systems in Pakistan. There are more than 20 NIFT centers in
Pakistan including Gujranwala. NIFT deals directly with every branch in 20 major cities and
adjoining 164 commercial and industrial towns. More than 5571 bank branches avail NIFT
services.
V. Types of Clearing:
Clearing instruments are those instruments which are drawn on the branches of some other
bank of the same city or of the same area which covers a particular clearing house. There are
following types of clearing:
1. Intercity Clearing
Intercity clearing means the cheques which are drawn on the branches of some other banks
from outside the city. In HBL all the cheques that come from outside the Gujranwala region are
to be considered as intercity clearing.
2. Local Clearing
LOCAL clearing means the cheques which are drawn on the branches of some other banks of
the same city. In HBL all the cheques that come from Gujranwala region are to be considered as
Local clearing.
3. Same day clearing
In same day clearing, clearing cheques comes in bank in same day and after entries of the
cheques, these cheques sent to NIFT on same day. Person of NIFT daily comes in the bank for
taking cheques of same day clearing. But payment of these cheques is cleared on next day.
Basically these are local cheques that are cleared same day to provide benefit to customers.
e. Remittance Department
Remittance is “the transfer of money from one place to another or from one person to another
for the purpose of paying bill for example”
A remittance is an important service a bank provides to its accountholders and to nonaccountholders. It is form of income for bank because a fix amount of money income is
charged from the customer. Following four types of parties are involved in remittance
procedure:
1
1. Issuing bank
2
2. Paying bank
3
3. Remitter
4
4. Remitte.
Issuing Bank
The bank that affects or sends the remittance through SWIFT (Society for Worldwide Interbank
Financial Telecommunication), Banker’s cheque or local funds transfer through mail transfer
etc.
Paying Bank
This is the bank on which instrument is drawn. Paying bank makes the payment. It may be
located in different city or country.
Remitter
This is the person who requests for remittance, either accountholder or non-accountholder. He
comes to the branch and asks for remittance to be made. He deposits the money to be remitted
and pays commission for this service.
Remittee
This is the person for whom remittance is made. Remittee is also called payee or beneficiary.
i. Kinds of remittances
Some of the kinds of remittance are following:
1
1. Transfer within branch (Inland remittance)
2
2. Transfer from one branch to another branch (Inland remittance)
3
3. Transfer from one bank to another bank within same city (inside locality)
4
4. Transfer of funds intercity (outside locality)
5
5. Transfer of funds from one country to other country.
3.1.4 Offices
There are many branches of HBL in Gujrat.
3.2 Current staff
A detail about the current staff is as follows.

Branch Manager (Mr. Khaliid Javaid)

Operational manager (Mrs. Sbahat Haheen)

Clearing and Remittance Officer (Mr. Zafar Hussain Shah)

Cash Officer (Fahad Shah, Tahir Mehmood)
3.2.1 Training received by no. of employees
When I was doing internship at HBL. There were two girls and one boy doing internship there.
So we can say that HBL provides better training to the fresh graduates to enhance their skills
knowledge and abilities in practical world.
3.2.2 Workload
The bank timing was 9am to 5p.m. to provide customer services. sometimes the staff of the
bank has to stay there in the bank till 8 to 9 pm for setting and compiling their work that is
really a tough and hectic timing of a job. It increases the burden on the employees and reduces
their motivation
3.2.3 Salary structure
Staff was not ready to disclose information about their salary. however manager `s salary was
Rs 70,000 per month and operational manager`s salary was Rs 35000 per month. They did not
provide me any information about the structure of salary.
3.2.4 Promotion system
The process of promotion at HBL is low. Promotion is awarded on seniority and experience
basis. However if the supervisor of an employee appraises him in grades it affects directly its
salary and promotion. After three years individual is eligible for promotion. If an employee has
a “C” grade he is not applicable for the promotion interview.
3.2.5 Incentives and motivation
The salaries, rewards, bonuses and incentives on the basis of jobs and performances according
to performance and experience. Each employee on HBL gets incentives and compensation
whether as direct payment or indirect financial payment. Direct payment in form of wages,
salaries, commissions, bonuses. Indirect payment is not related to cash payment like insurance,
car, car fuel.
3.2.6 Responsibilities and duties performed
Responsibility is the obligation to perform assigned activities. it is a self assumed commitment
to handle a job to the best of one`s ability. The source of responsibility lies within the
individual.
At HBL all employees are encouraged to take full responsibility of actions and various job
tasks. Responsible employees tend to be more motivated and focused on achieving
organizational objectives. And perform their assigned duties
3.3 Critical analysis of branch
When we think critically we are being active; we are not passively accepting everything we
read and hear, but questioning, evaluating, making judgments, finding connections and
categorizing
3.3.1 Communication system
Communication system in branch is sound. There is a proper hierarchy in branch. cash officers
report to operational manager and operational manager reports to the branch manager. head of
foreign exchange and credit department are directly liable to the manager of the branch.
3.3.2 Hiring system
Hiring system in bank is not proper. Employees are recruited on the basis of favoritism,
nepotism political pressure. Both the staff and unions try to hire their favorites
3.3.3 Morale of staff
I don’t think so that morale of staff is high because there are some people in branch that are not
hard working and try to put their burden on the shoulders of others. At the end of the working
hours the employees are so exhausted that they are about to quarrel. Only the manger and
branch manager head of foreign exchange and head of credit department have the professional
attitude.
3.3.4 Physical facilities
The physical facilities provided to HBL are not enough to meet the needs of staff as well as the
customers. There are no rooms in the bank. Nevertheless separate cabins are provided to branch
manager and credit officer. At ground floor there are the air conditions but at 1 st floor where
those are needed most are not available. More over at ground floor facility of drinking water is
not available. Staff does not have enough equipment to handle their data.
3.4 Performance
The results of activities of an organization or investment over a given period of time.
Performance management is the process of creating a work environment or setting in which
people are enabled to perform to the best of their abilities.
In terms of quality (through customer satisfaction)
Customer satisfaction, a business term, is a measure of how products and services supplied by a
company meet customer expectation. A customer's perception of the degree to which their
requirements have been fulfilled.
The services provided to the customers of HBL are not so good to satisfy the customers as the
customers having high deposits in their account are treated with courtesy and the customers
having no reference are treated with dry attitude and they are not dealt properly. Their services
are delayed often or staff becomes lazy to process their requirements.
In terms quality (number of accounts)
No. of accounts are enough to meet the needs of bank but now a day’s competition has
increased customer transfer their amounts in other banks there may be a reason that they are not
satisfied with the services provided. However HBL is one of the oldest banks in city.
Chapter 4
Introduction
In this chapter policies of HBL ,strategies, successes will be discussed general because I did not
find any information about it in branch. Policies of HBL include social responsibility, Human
resource development, Information Technology.
4.1 Policies
It is a known fact that the Habib Bank Limited (HBL) is one of the largest and the oldest
financial institutions both in the public as well as in the private sector of Pakistan.
Traditionally, it provides financial services to all segments of the national economy within and
outside Pakistan. With a revamp customer oriented philosophy, the Habib Bank is pursuing the
new avenues of leadership through innovation and automation in customer services. The
direction given to the staff by the leadership in the management is to gear up the efforts to face
the challenges to bring new heights of professionalism in the banking system.
Social responsibility
Fresh air is also blowing in the Public Relation Division of HBL that believes in effective
rapport with the general public by communicating the policies and schemes of the bank through
print and electronic media. Besides maintaining close relationship with the media, the publicity
division of HBL is also leaves no stone unturned to render all possible assistance to the visiting
dignitaries and delegations from abroad.
HBL believes in serving the nation and building the country's economy on sound footings. The
HBL is also on its forefronts to support and appreciate the efforts being done for the noble
causes and promote social and cultural activities in the country. In this direction, the public
relation division sponsors various social, cultural and sports events to generate healthy
activities in the society. It also organizes religious programs to enhance social, human and
religious values and traditions of our society. The division also represents the bank at important
for to exchange views on national and international issues with various organizations to boost
the intellectual activities.
Human resource development
At every stage and level right from selection to advancement, the bank has designed a
consistent system of human resource development based on result oriented objectives. The
brilliant performance shown by majority of the staff reflects the desired results of these efforts.
The team spirit generated by the training division to the staff has started showing positive signs
and a concerted and unified force has been developed within ranks and files of the bank to offer
the best possible services to the valued customers. These efforts have brought success stories to
the credit of Habib Bank. As a result of concerted efforts the HBL has succeeded in making
substantial increase in the import forward booking volume. It also registered an increase in
export bill discounting volume. These efforts also enabled the bank to increase in monthly
treasury profits that directly contribute towards the profitability of the bank. An improved
communication between the branches and dealing room accompanied by increased customer
interaction with treasury is also the part of the improved performance of the bank. HBL has
succeeded to place itself in a position where its Treasury is considered as market maker. Most
of the small local banks use HBL's rate sheet as their benchmark.
In the nutshell, the forum gave a chance to all country managers to develop and redefine
strategies and bring them in line with the overall objectives of the bank. The International
Strategy Conference organized by HBL at Muscat last year was the part of that effort to
develop and implement business plans that recognize the ground realities but at the same time
incorporate a stretch component so that the Bank can regain its pre-eminent position in the
emerging market.
Information Technology
In order to keep pace with changes swiftly taking place around the world, the HBL has
embarked upon an ambitious plan for automation to have competitive edge over competing
banks. An uphill task, it started in full swing and tempo which is unprecedented in the history
of HBL. The team of I.T professionals has almost hit the goals set by the management and
showing positive and encouraging results. The computer division is providing technical support
both for hardware and software to branches and other offices at the region or Head Office level
throughout the country to ensure trouble-free operations of the Bank.
4.2 Successes
Istanbul: On the occasion of the World Bank Annual Meetings 2009 currently underway in
Istanbul, Global Finance presented banking awards to the top global banks at a ceremony
attended by senior bank officials. HBL was presented with 3 awards: Best Bank – Pakistan,
Best Trade Finance Provider – Pakistan and Best Foreign Exchange Provider – Pakistan. These
awards were conferred on HBL in recognition of its achievements in product delivery and
service quality in the markets it serves.
4.4 Summary
All the policies, stratgies of HBL are according to dynamic environment of world that’s why it
has received remarkable success on national and international level.
Chapter 5
Internee work
5.4.1 Brief introduction of the branch
HBL Chowk Pakistan branch is not offering all the products and services as mentioned above,
as few services are offered only at regional offices or head office level but still providing
enough services. The branch is well equipped with all the required resources which are needed
in order to provide good services to the customers. The total number of people working in the
Chowk Pakistan branch Gujrat is 10.
.
SWOT ANALYSIS
SWOT analysis is based on assumption, that if managers carefully review such strengths,
weaknesses, opportunities, and threats, a useful strategy for organizational success will become
evident. HBL is considered to be a 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
Strengths
While interning at HBL I was able to conduct a SWOT analysis of the organization. I learnt a
great deal about the banks Strengths, Weaknesses, opportunities available in the future and the
threats that are ever present in today’s competitive Banking Industry. The analysis is as
follows:
1. HBL is the larger commercial bank in Pakistan with the network of over 1468 domestic and
international branches
2. HBL is a well established bank enjoying long history of over 65 years of experience, high
people trust and profitable operation
3. HBL has opened all its branches at commercial areas so that the customers or clients face no
problems in reaching to the bank
4. 24 hours cash access and safe payment products for high value transactions
5. HBL focuses on consumer banking by lucrative schemes, diversified product range and
services suiting best to the wants and demands of the customers
6. HBL has very good security system.
7. I observed that HBL employees interact with their clients as if they are their personal friends
and discuss about their problems as their own
8. HBL has got a reliable and easy to use internal computer system. ALL information regarding
the transactions in customers‟ deposits has been computerized
9. HBL is market leader in introducing e-banking and has largest ATM network in country
10. HBL was rated the best domestic bank for two consecutive years of 2000 and 2001 by Euro
money, a leading international publication and has gotten many other awards
11. Excellent branches appearance gives an edge to HBL over other banks. The branches are
well furnished even in less developed areas where other banks‟ branches give a poor view
12. Wide number of services provided to the customer at cash counter
13. HBL has got a well-developed on-line system in most of its branches. Remittance
Department is working very efficiently in transferring funds of people due to this system.
14. HBL have strength that most of the imports & exports which are done around are handled
by HBL Branch.
15. Having potential to encounter the competitive environment in the market
Weaknesses
Even though the bank is making continuous efforts towards minimizing its weaknesses, there
are still some areas that have to be improved to be able to compete in this industry. During my
internship period I came to know about following weaknesses in HBL:
1. Highest number of branches effecting the proper maintenance and difficulty in providing
same working environment at the each branch
2. Though HBL is the premier bank in Pakistan, yet the fact remains that it is not market leader
as NBP. Its total assets are always less than NBP total assets.
3. Staff here lacks managerial training as they are not properly educated. Due to seniority, they
have moved up on the hierarchy line to Grade- I, II or III positions having hardly
Bachelor degrees. This type of senior staff cannot apply the modern and innovative techniques
of management in decision making.
4. Public respect is not very effective at HBL. Employees do not take care of the customers,
especially at token issuing counter and remittance department.
5. The lack of proper infrastructure in small branches is also a major weakness. These are the
branches which are being visited by a large portion of customers. In certain branches there is
not even proper separation between departments to separate one department from another. This
is a source of confusion for both the staff and the customers.
6. Employees are constantly rotated from one job to another different one to give them the
knowhow of other departments.
7. The major weakness, I observed was charging of higher commissions and markup rates.
8. There are no entertainment facilities for waiting customers; magazines, newspapers etc…
Opportunities:
At present the bank is faced with a large avenue of opportunities as it has proved by launching
new products and exploring various options in the market. The major opportunities are:
1. Huge untapped market potential in consumer banking
2. In the presence of a huge network of branches all over the country, provision of “Fast cash”
facility can be an opportunity
3. Having a separate section for ladies will be more convenient and attractive.
4. Nowadays internet banking system is growing quickly so HBL have opportunities to improve
the standard and get the more share in the market.
5. Providing lower markup rates, HBL can lure more customers to increase its income
6. Large corporate customers can log into the bank's database and have access to their
accounts/transactions from their business houses. This facility has still not been started for
customers in Pakistan. So HBL can focus on that.
7. ATM can also be used to deposit cheques and cash into the accounts. No bank in Pakistan is
offering this service currently. So an opportunity exists for Habib bank to differentiate.
8. It can be an opportunity for HBL to enter into agreement with other banks to use each other’s
ATM, resulting in an increased convenience to customers of HBL and other banks
9. Customer feedback on different products can really improves the bank performance.
Threats
HBL faces many threats as competitive pressures have escalated in this particular industry.
There are also some threats that HBL faces apart from competitive pressures. All these are
discussed:
1. Day to day changing global technology
2. Shortage of trained and specialized staff at lower executive and officer levels
3. Highly attractive and advance services by foreign banks to their customers
4. Competent taskforce of some other banks is a threat because human resource is the most
valuable asset.
5. Political and economic instability can be a threat.
Summary
In chapter 5 I have summarized the SWOT analysis of HBL and ratio analysis have tried to
discuss all those strengths, weaknesses. Opportunities and threats which I consider are
present in this dynamic environment and ratio analysis tells us about the current financial
position of HBL.
Recommendation
Here I am giving some suggestions, which will enable the bank to compete with other banks
more effectively & efficiently
I suggest that number of staff members in the branch should be increased so that

they can meet their customers‟ requirements quickly and efficiently
I suggest that in order to deal with women there should be a Lady Officer or Lady

Clerk in the bank and there should be a separate cabin for them
Recruitments should be strictly on merit basis and induction should be after

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.
There should be specific procedure for account closing and the record should be
maintained. Cheque book must be taken back for avoiding future inconveniences

Special attention should be given to the behavior of the employees towards the
customers, as customer is the most important person for any bank.

More power to the branches should be allocated

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.

There should be the facility of clean drinking water at the ground floor.

Staff should be provided with separate USB`s to each one to handle his data.
References/Bibliography:
 en.wikipedia.org/wiki/Customer satisfaction
 qualityisoexpert.com/glossary/
 http://www.habibbankltd.com/about-us-news.php#32
 www.deakin.edu.au/
 www.hbl.com
 www.KSE.com.pkzz
 www.DAWN.com
 Negotitble instrument Act .
 Societies Registration Act, 1866.
 Companies Ordinance, 1984 .
 Banking Ordinance, 1962.
 Analysis of Financial Statements by George foster.
 Annual Report 2012
 Daily times articles
 Interviews from: Branch Employees