Department of Business Management Sciences

DEPARTMENT OF BUSINESS MANAGEMENT SCIENCES
VIRTUAL UNIVERSITY OF PAKISTAN

A REPORT SUBMITED IN PARTIAL FULFILLMENT OF THE
REQUIREMENT FOR THE DEGREE OF
MASTER IN BUSINESS ADMINISTRATION (MBA)
LETTER OF UNDERTAKING:
LETTER OF INTERNSHIP:
Permalink Reply by + M.Tariq Malik on October 30, 2011 at 10:57am
5.EXECUTIVE SUMMARY
Every student of master has to practically work for six to eight weeks for more learning
of theoretical concept which he read during the session. It is very helpful during practical
life and awareness about the economy of the country. This purpose is to explain the
student with practical work that how to apply what they have learnt in practical work. It
is nice opportunity for the student to have shut relationship in theoretical concept and
practical work.
I got the chance to get my internship from one of the renowned bank of Pakistan The
Habib Bank Limited, Pakistan, it was a nice opportunity for me to apply my theoretical
work and learn from seniors having years of experience. All the efforts on the way are
summarized in shape of this Internship Report. Internship Report contains the Short
History of Banking, Banking in Pakistan, Introduction of Habib Bank Limited,
Organization Breakdown structure, Organization Hierarchy Chart, Introduction of
different departments.
TABLE OF CONTENETS
ACKNOWLDGEMENT- 3
EXECUTIVE SUMMARY- 4
TABLE OF CONTENETS- 5
EVOLUTION OF BANKING: 6
BANKING IN PAKISTAN: 6
ABOUT HABIB BANK LIMITED: 7
BRIEF HISTORY: 7
ORGANIZATIONAL CHART: 8
BOARD OF DIRECTORS: 8
ORGANIZATIONAL STRUCTURE: 9
VISION, MISSION AND VALUES: 9
Vision: 9
Enabling people to advance with confidence and success. 9
Values: 9
Our values are the fundamental principles that define our culture and are brought to life
in our attitude and behaviors. It is these values that make us unique and unmistakable.
Our values are defined below: 9
DEPARTMENTS & RESPONSIBILITIES: 9
AWARDS: 10
6. EVOLUTION OF BANKING
This history of banking is traced to as early as 2000 B.C. The priests in Greece used to
keep money and valuables of the 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
of the people. The goldsmiths used to issue receipts for the money and other valuable
assets deposited with them. These receipts could be used for 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.
BANKING IN PAKISTAN:
I observed during my internship was that I came to known the historical background of
Banking & Financial sector and its improvement and growth since the formation of
Pakistan.
At the time of partition there were only 631 bank branches in area which came under
Pakistani control. But due to blood shed and violence at large scale, most of the branches
were closed. At that time Bank of India was acting as central bank for both countries and
same currency notes were used in both territories. But Reserve Bank of India was biased
and Set down Pakistan on many occasions such as the issue of funds transfer etc.
Thus some drastic steps were taken in government sector for the improvement of overall
position. The private sector also responded positively. Some of the steps taken by the
government in this regard were as under:
o
o
o
o
Inauguration of State Bank of Pakistan (SBP) on 1st July, 1948.

Setting up of National Bank of Pakistan in November.
Banking Companies Ordinance 1962 for protection and guidance to banks.
Establishment of specialized banks, such as ADBP (1952);
HBFC (Nov, 1952)
P1CIC (Oct, 1957)
IDBP (Aug. 1961)
NDFC (Jan, 1973)
In 1990 the government decided to denationalize all the nationalized institutes. For this
purpose, amendments were made to Nationalization Act 1974 and two nationalized banks
were privatized. Along with this a permission to open banks in private sector was also
granted.
The- privatized banks are;
o
o
o
o
MCB taken up by a private group in April, 1991

ABL taken up by its own employees in September, 1991.
UBL taken up by UAE party in 2002.
December 29, 2003 HBL was taken by AKFED
ABOUT HABIB BANK LIMITED:

BRIEF HISTORY:
HBL was the first commercial bank established in 1947. HBL is one of the largest
commercial bank of Pakistan. It accounts for a substantial share (20%) of the total
commercial banking market in Pakistan with a network of 1,705 domestic branches; 55
overseas branches in 26 countries spread over Europe, the Middle East, Far East, Asia,
Africa and the United States; 3 HBL wholly owned Subsidiaries namely Habib Bank
Financial Services (PVT) LTD. Karachi, Habib Finance International LTD (Hong Kong)
and Habib Finance Australia Ltd. Sydney; 2 Joint Ventures namely Habib Nigeria Bank
Ltd. (40%) and Himalayan Bank Ltd. (20%) and 2 representative offices in Iran and
Egypt. HBL is currently rated AA+ (Long term) and A1+ (Short term)*. It is the first
Pakistani bank to raise Tier II Capital from external sources.
Business Operations
1. Banking Sector Overview
2. HBls Performance Overview
3. Products and Services
Personal Banking
Corporate Banking
Online Services
. Virtual Banking
Islamic Banking
4. HBLs Competitive Strategies
ORGANIZATIONAL CHART
PRESIDENT
BOARD OF DIRECTOR
MEMBER EXECUTIVE BOARD
REGIONAL CHIEF
ZONAL CHIEF
BRANCH MANAGERS
BOARD OF DIRECTORS
Sultan Ali Allana
Chairman
Sajid Zahid
Director
Ahmed Jawad
Director
Sikandar Mustafa Khan

Director
Moez Jamal
Director
ORGANIZATIONAL STRUCTURE
HBL is organized along functional lines with eight core divisions namely Corporate &
International Banking, Retail Banking, International Banking, Audit & B.R.R., Credit
Policy, Asset Remedial Management (ARM), Information Technology Group and
Human Resources Group.
VISION, MISSION AND VALUES
Vision:
Enabling people to advance with confidence and
success.
Mission:
To make our customers prosper, our staff excel and create value for shareholders.
Values:
Our values are the fundamental principles that define
our culture and are brought to life in our attitude and
behaviors. It is these values that make us unique and
unmistakable. Our values are defined below:
Excellence
Integrity
Customer Focus
Meritocracy
Progressiveness
PRODUCTS AND SERVICES OFFERED BY HBL

PRODUCTS:
HBL Muhafiz Rupee Travellers Cheques

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
DEPARTMENTS & RESPONSIBILITIES:
During my internship, I came to known about the following departments functioning in

my branch
1.
2.
3.
4.
5.
6.
7.
Account opening department.

Cash department.
Credit department.
Lockers department.
Bill clearing department.
Foreign exchange department.
I.T department
Account opening department:
In this department customer open the account in the bank. This give facility to the
customer for opening new account with the bank that they allow him and operate this
account.
These require many document to open this account:

Copy of CNIC
Utility bill
Student card
Provisional receipt
Address of customer
Specimen Signature of the customer
Posting the account on the system
Cheque book issue to the customer
Secrecy of the customer
1.
2.
3.
4.
5.
Types of the Account

1.
Individual account
2.
joint account
3.
Business account
4.
Current account
5.
Saving account
Individual account:
Bank opens this account by individually. It involves single person only. Bank
opens this account for one person.
Joint account:
Bank opens this account by one or two person. The two people use one
account in the bank. Bank considers one account by two people. The two people of joint
account show one account according to the law.
Business account:
In this account, bank only business transaction. It is opened by companies,
institution, organization and partnership business. It is purpose of deal with the
businessmen.
Current account:
Bank opens current account to every person. Usually, some current account have
to pay interest by the customer but its rate is low other accounts. Current account offers
any facilities to the customer which is mentioned below:
Debit card
Cheque book to the customer
Automatic bill payments from account
Overdraft facility
Clearing services etc.
Reason for closing customer account:
Bank ay close this account due to some reason:
1. Death of a customer
2. Notice by a customer
3. Customer insanity
Death of a customer:
In the case death of the customer, bank may close the account and stop all
transaction related to the person. Bank stop further transaction such as cheque issue,
money transfer etc.
Notice by the customer:
Bank may close this account on the demand of the customer. Customer gives
application to the bank for closing this account.
Customers insanity:
Bank terminates this account due to mental of the customer. Bank stop this
transaction with this customer. It is all too easy for the customers needs by the desires of
others within a bank who interpret the customer needs through their own prism. His
insanity of the customer, to the knowledge of the bank, has the effect of revoking this
authority, and the bank would not be necessary in paying the acceptances. That the bank
has not been officially notified of the customer's insanity does not indicate
Cash department
Cash department has vital role in the banking sector. All cash transaction represent in this
account such as cash received fro customer, import and export transaction, bill payment
etc. It involves cash payment and receipt transaction in it.
These are following perform various function in this department:
Acceptance of deposit
Cheque payment
Collection of funds
Remittances
Transfer of funds from one account to another
Verification of signature
Posting
Heading of prize bond
There are some functions of cash department in the bank:
Receipts and payments:
Cash will be received by the Receipts from the customers in the bank. In the receipts, the
name of the account holder, account number, name of the branch, dates etc are involved.
Customer must also make certain that the receipts are signed by the person which deposit
cash. In some cases, cash is received from receipt department.
Deposit cash in customer account:
When the customer wants to deposit amount in his account .The account in which the
cash will be deposited. Then customer will receive amount and credit the customers
account that shows increase in customers bank accounts.
Cheque encashment procedure:

The cash is paid to the customer in the cash department such as:
Cheque is drawn on some branches
Cheque is not posted on date
It should be bearer cheque
Payment of cash:
After posting the cheque the operation manager cancelled the cheque and returned
back to cashier. The cashier enters the cheque in cash paid registered and pays against the
second signature of receiver on the back of the cheque.
Credit department
A simple but practical definition of credit is "the ability to buy with a promise to pay," in
other words, to obtain present value for a promise to pay in the future. The word "credit"
is derived from the Latin "credo. The banker knows that he may be asked to expand
credit. He first satisfies himself that the ability is such as to defend assurance. This
information is obtained from personal knowledge of the borrower. Trade inquiries are
directed to people selling goods to and competitors of the borrower. If all this information
is satisfactory, the capital factor is studied in the borrower's financial statement which
balance sheet should be taken off at normal intervals. This ratio is often called the 2 to 1
ratio, but differs in business. In short, the distinguish between a safe risk and an unsafe
one that is the quality that marks the good banker.
This is including different latter issue in the credit department:
Establishment of letter of credit:
In case party enjoying regular limit, the L.C is established without adopting the procedure
mentioned above. However the amount of L.C should not exceed the regular limit. The
major non-fund based facilities that are considered as a part of regular credit facilities are
letter of Credit and Bank Guarantee. Banks charge commission for the services rendered
by them and commitments on the pact of the bank these are allowed after making out a
very careful and detailed assessment of borrowers requirement.
Types of credit
These are many types of credit of habib bank which are given below:
Demand finance:
Packing credit
Demand finance to student
Loan to staff
Loans are offered to the staff in various categories
1. loan for purchasing vehicles

2. loan correspondent to months salary
3. mortgage loan
Running finance:
It include old name overdraft which are meet requirements to the customer.
For example:
secured
Which are diifernt forms given below
1. share certificate
2. deposits
3. mortgage of property etc
unsecured
DEPOSIT DEPARTMENT
Bank deals in money and they are merely mobilizing funds within the economy. They
borrow from one person and lend to another, the difference between the rate of borrowing
lending forms their spread or gross profit. Therefore we can rightly state that deposits are
the blood of the bank which causes the body of an institution to get to work. These
deposits are liability of the bank so from point of view of bank we can refer to them
as liabilities.
REMITTANCES
DEMAND DRAFT:
Demand draft is a written order drawn by a branch of a bank upon the branch of
same or any other bank to pay certain sum of money to or to the order of specified
person. It can be issued to the customers as well as non customer against cash chaque and
letter of instruction. Demand draft is negotiable instruments that can be negotiating at any
time before its cancellation. Its Legal provisions are same as that of cheque.
Following parties are involved in demand draft:
Applicant
issuing branch
Drawee branch
Beneficiary
A demand draft may be issued against the written request of the customer before issuing
it must be seen that the demand draft is in order.
The DD application must be scrutinized by the counter clerk in respect of following
points.
There should be branch where payment is to be made.

Full name of payer should be mentioned.
Amount in words and figures must be same
The applicant on two places should sign application.

TELEGRAPHIC TRANSFER:
Telegraphic transfer means the transfer of funds from one branch to another
branch of the same bank or upon other bank under special arrangements just like a
telegram. Telegraphic transfer is not negotiable and the funds are not payable to bearer.
Minor cannot avail this facility. In telegraphic transfer the bankers use secret codes. One
code is with issuing person and the second is with an other person. When they combine
the codes its become an amount that is called check. The payment is made after the
confirmation of the check.
Following parties are involved in TT
Applicant
Drawing branch
Drawee branch
Beneficiary
Following important things should be included in TT:
Full name of the beneficiary or account number should be mentioned in the application
form.
Instruction regarding mode of payment should be obtained.
A record in the remittance outward register should be maintained.
All the remittance must be controlled through number or codes.
pay order:
Pay order is an instrument through which payment can be made from one bank to
another bank. Pay order is meant for bank own payment but in practice they are also
issued to customers.
Following parties are involved in pay order:
Applicant
issuing branch
Payee
MAIL TRANSFER:
Mail transfer is not negotiable and the procedure of it is same with the
procedure of DD.When a customer request the bank to transfer his money from this bank
to any other bank of the branch of same bank in the city, outside the city of outside the
country the first thing he has to do is to fill an application form. In which he states that I
want to transfer the money from this bank to that specific bank by mail. If the customer is
the account holder of this bank, the bank will debit his account and the concerned officer
will fill forms to make the mail transfer complete.
If the customer is not the account holder of the bank, then firstly he has to deposit
the money and then rest of the procedure will be adopted to transfer his money.
SBP ERF Scheme

SBP had introduced this scheme to promote country s export and to earn
foreign exchange. This scheme is operated through authorized dealers under SBP control.
This scheme had been amended by time to time.
Features:
Concessions rate of markup as compare to commercial banks rate of markups.

Export refinance allow to exporters via authorized dealers.
In case of default, the SBP recover its principal loan amount, markup & penalty through
the bank to which exporter has submitted his refinance claim.
Refinance allows against value added products i.e. garments, print, dyed cloths, bed sets.
Proceeds repatriated through banking channels.
Allow credit loan amount within 248 hrs.
Misutilization of SBP funds has been prohibited, if any violation occurs SBP imposed
penalty.
Risk:
If the exporter has been / will be defaulted the laps of funds of authorized dealers.
Cheating or misuse of funds, SBP may cause to impose not any penalty but also
termination of bank employee or change of management or authorized dealers reputation
may destroy.
How to operate this scheme?
SBP ERF scheme
Part
Part II
Post shipment
EE
EF
Preshipment
Party request
statement
statement
Party request letter
L/C sales contract
total realization
it include
L/C sales contract
Under taking
& negotiation
total
Undertaking
DP note
SBP financed
realization
DP note
Form D
Form E & not
but on which
Form D
Commercial invoice
availed SBP finance
Form E SBP
Proof of purchase
Bill of Lading
of raw material
Form E
finance
availed not
include.
Part A
This means after making a shipment the exporter prepare all relevant shipping
documents and evidence of shipment. The exporter contact his bank w.r.t to lodge the
documents and send a one set of shipping documents to export finances department to
allow him post shipment part I under SBP scheme.
Required documents at the time of finance allow to party
D/Pnote
Under taking on non judicial stamp paper
L/C
Form D
Commercial invoice
Penalties:
Non shipment 37 paisa/1000 per day

Short shipment
Delayed shipment
Late submission of documents to SBP
How to avoid from penalty of non shipment?
Provide proof of shipment against relevant sales contract or L/C on which finance obtain
Substituted the old L/C or contract with new one after assurance that against new L/C.
Restrictions/prohibitions
Evidence of shipment submit to SBP within 180 days or within time period fixed by SBP
In case of substitution against new L/C or sales contract make sure that the exporter has
not availed pre or post shipment finance through any other bank.
How to calculate penalty?
Non shipment
180 days *1000000* 0.37/1000=66600
Short shipment
Finance amount
1000000
Shipment
800000
Short shipment amount =200000

180 days *200000*0.37/1000=13320
In case of post shipment only late repayment of finance penalty is involved.

Part B
The authorized dealers provide this finance facility to exporters against their EE
statement. From the export earning during of one fiscal year the SBP sanction a limit of
50% for the a ailment of the ERF part II. In the EE statement all foreign bills realized and
negotiated during a period of 01-07-04 to 30-06-05 are included in this statement.
Documents required at the time of sanction of finance
D/P note
Under taking on non judicial paper
Short fall in EE statement penalty:
Days*amount of finance*rate(0.37)/day/1000
Short fall in EF:

SBP calculate case to case basis daily product and match this with his EF performance,
if he avail excess Refinance from SBP and Business performance is short the SBP
imposed a short fall penalty.
Total short product*number of days*0.37/180
Demand Finance & Running Finance:

Demand finance:
This is common form of financing to commercial industrial concerns and is made
available either on pledge or hypothecation of goods, produce or merchandise. In demand
finance the party is finance up to certain limit either at once or as and when required.
The party due to facility of a paying mark prefers the financing up only on the amount it
actually utilizes.
Running Finance:
This form of financing was known as Overdraft when a bank customer requires
temporary accommodation, his banker allows withdrawals from his account and running
finance thus occurs. The accommodations generally allowed against collateral security.
The customer is in advantageous position in a running finance because he has to pay
mark up only on balance outstanding against him on daily products basis.
Pledge:
It is entitled to the exclusive possession of the property until the debt is charged.
Hypothecation:
When the property in the goods is charged as security of loan from the bank but the
ownership & possess
FAPC & FAFB
FAPC (finance against packing credit):

It is a type of banks own source finance provided to clients engaged in export
trade. As the term packing indicates that the credit line is granted to an exporter for the
purpose of packing merchandise for shipment to an importer abroad. An exporter should
give documentary proof to the bank consist of L/C in favor of exporter indicating the
description of the merchandise, the purchase price, date of delivery along with other
terms.
FAFB(finance against foreign bills):
It is a post shipment finance facility which is provided by the banks to its clients
after providing the evidence of shipment, he contacts his bank to request him to lodge the
documents. He then provide the request letter with sale contract to grant him finance &
this department grant him finance (90% value of commercial invoice).
Imports and exports department
Exports:
Introduction and registration:
Imports and exports act 1950 have empowered the federal Govt to control the import
and export in Pakistan. Pakistan is developing country and like other developing
countries its imports exceeds than exports. To control this situation the registration of
import and export has been made obligatory under the registration order 1993. The
authority of registration has been given to export promotion bureau. No importer and
exporter who has no granted registration shall indent, import and export of any good into
or out of Pakistan. The requirements for getting registration are as under:
Application form.
Photocopy of I.D card.
Copy of memorandum and article of association (in case of limited company).
Ownership deed of office.
Fee payment.
Certificate of incorporation.
Applicant should regular taxpayer.
The major exports from Pakistan are surgical goods, sports goods hand noted goods,
leather goods, textile goods, etc.
Export procedure:
All the exports work under the imports and exports act that is changed by the state in
every year. When the importer send the L.C to bank in respect to import or when the L.C
comes to the advising bank from the issuing bank then the concerned officer allot the
number to the L.C and get registered. The concerned officer write down the name of
issuing bank and the party name in a register and intimate the party about L.C. the
exporter after receiving the L.C from bank will prepare the documents as per the L.C
usually the following documents have to be prepared by the exporter:
Bill of lading
Covering letter
E- Form
Bill of exchange
Packing list
Commercial invoice
Quota documents in case of quota country
Certificate of origin
Special custom invoice
The export form (E-FORM):
E-FORM means export form which is the first and foremost requirement for
the exports from Pakistan. It is control instrument by Govt of Pakistan by which it
monitors the receipts from exports and checks the goods that are transferred without
foreign exchange. all banks which are engaged with the foreign exchange are required to
print and maintained the E form that is checked by the state bank of Pakistan. For export
an e form is issued by the bank on the request letter of a company. Two separate registers
are maintained by the bank one for his use and the other one are for the requirement of
the SBP. On issuance of E forms the banker lists it in the register and makes sign from
the exporters. Banks record the name of party, amount, the goods description, port of
destination, importer name port of loading etc.
The functional utility of E-FORM:

The export form has four copies. The exporters and banks use it. Without it the
exporter can not make export. These copies are used as:
Original copy is for SBP that is checked by the higher authority.

Duplicate copy is for the bank use that is upraised by the custom authorities.
Triplicate for the use to report of SBP at the time of payment received.
Quartiplacte is for the company used.
Usage of E- FORM:
E- FORM is an important document for export. It has its own importance such as
this form is used as a checker means it monitor that what things are going abroad and in
return what things we are getting. So it creates a check and balance on the foreign
exchange. It shows the total quantity and quality of the goods that is sending to another
country. An E Form shoe the party worth that is very helpful for the party and the bank.
Bank can create a party limit for the credit on the behalf of it and a party can arrange a
loan for its future requirements from the bank. It shows the terms of payment by the
importer and the delivery terms by the both parties that is helpful in case of any
discrepancy during the contact.
Short shipment notice:
A shipment may be cancelled by the importer or exporter due to many reasons.
The cancellation of the export letter is called short shipment notice. In this situation the
company has to inform the bank. Company has to give a written letter to the bank that he
is not the export so please cancelled their e form. On the other hand bank at the time of
receiving the letter will stop the e form and cancelled the all documents.
IMPORTS
Imports regulation:
Import is being regulated by the ministry of commerce and the government of
Pakistan under the import and export act:
Categories of imports:
Imports are classified into the following categories:
Commercial sector imports

Industrial sector imports
Public sector imports
Registration of importers:
A person who wants to approach the bank for importing goods from abroad, he
should have to get himself registered with the export promotion bureau under registration
of imports and exports act. He must fulfill the following conditions before getting himself
registered:
NIC NUMBER
NATIONAL TAX NUMBER
MEMBER OF REGISTERED ASSOSITATION
Documentary letter of credit:
A documentary letter of credit is an instrument or document issued by the bank on the
behalf of a customer, authorizing a beneficiary to draw a draft and drafts or sometimes
the requirement of a draft, which will be honored, on presentation by the bank if drawn
accordance with the te3rm and condition specified in the letter of credit.
It is the written undertaking by the bank (issuing bank) pay to the seller (beneficiary) at
the request or as per the instruction given by the opener (applicant) pay at sight or at the
future date, a stated sum of money against the required documents. The documents
include the commercial invoice, certificate of origin, insurance policy or certificate and
the documents of transport relating to the mode sending goods. L/C is therefore is an
arrangement of security for the parties. The conditional guarantee is related to the
documents only and not on the underlying
goods or services.
Establishment of letter of credit
Procedure:
The person applying for the letter of credit must be registered with the EPB. The opening
bank verifies this registration or otherwise exemption. This is mentioned in the I form.
The importer also shows the valid certificate of an organization membership. A category
pass book is issued by the EPB for registered importer specifying his category. This book
is centralized by the centralized banks in the city. It is not necessary for the bank to hold
the original copy of the pass book of all the importers. But some times the importer gets
L.C from more than one bank so the bank have to hold the photo copy of this pass book.
The applicant can get the application from any branch of the Habib Bank Limited.
However only some branches are authorized to open L.C. That branches how are not
authorized have to contact with the authorized branches to open an L.C. The authorized
branches in such case require the certificate from the applicant branch that the required
formalities are fulfilled and the approval was obtained with required margin.
For establishment of letter of credit, the importer requests the opening bank with the
following documents:
1)
Application and agreement form IB-8:
Credit application form is an agreement between the bank and the customer on the basis
of which the letter of credit is opened. This form contains the undertaking of the importer
that get the documents from the bank at the mark up price. It contains the following
information:
Name and address of importer.

Name and address of exporter.
Amount in foreign currency.
Terms of credit.
Description of goods.
Origin of goods.
Port of loading and discharge.
Last date of shipment.
Foreign bank charges.
Terms of shipment. (Partial shipment or transshipment)
Insurance cover note, policy no, and name of insurance company.
Forward booking.
Mode of transmission.
Import registration no.
Any other documents required.
Detailed documents.
2) Performa invoice/ purchase order:

A Performa invoice is quotation of seller containing the description and the
specification of the goods, price, and terms of the sale. Some times the exporter has their
agent in the country. The agent must be registered from the EPB.
3) Insurance cover note:
All the goods imported under the documentary credit must always be insured. In
accordance with our country import policy, insured must be issued by a Pakistani
insurance company or the foreign company operating in Pakistan and such company must
be approved by the bank. Insurance covered based on the following:
It is issued in the name of issuing bank A/C importer.

The rider should cover against war.
The port of shipment and the port of destination.
Amount of premium prepaid.
Shipment period.
The description of goods should be the same as per the form.
4) Appendix B:
This Performa replaces the import license and is submitted along with L.C application
form duly filled in triplicate. It is conditional undertaking that the imports goods are not
banned, not smuggled. It is also an undertaking that if the bank is unable to arrange the
said currency the importer have to purchase it from other banks or from any other place.
It includes the details and description of goods, codes, class, type, source of import,
country of import, Performa invoice no etc.
5) I FORM:
This form is used at the time of retirement of documents against L.C established
earlier for reporting to the transaction to SBP through the bill of entry deptt. It has four
copies that is used as follows:
Original is for the use of SBP.

Duplicate for the authorized dealer to be used for processing exchange control.
Triplicate for the authorized dealer record.
Quartiplacte is for the submission in SBP in the case of import where the documents are
not retired.
Approval for establishment of letter of credit
After scrutiny of the documents, IB-8 along with attached documents is put before the
corporate head for approval. If the amount of application exceeds the power of the
corporate head the branch concerned prepared the memorandum for the corporate
banking head for obtaining his approval.
In case party enjoying regular limit, the L.C is established without adopting the procedure
mentioned above. However the amount of L.C should not exceed the regular limit.
Types of letter of credit:

1)
Revocable credit:
The letter of credit that can be cancel with the consent of importer, without
giving any prior information to the exporter.
2) Irrevocable letter of credit:
The letter of credit that can be cancelled by the mutual consent of the both
parties. Only one party cannot cancel it.
3) Irrevocable confirmed letter of credit:
When an issuing bank authorizes and or request to an other bank to confirm his
irrevocable credit and adds its confirmation. Such confirmation constitutes a definite
undertaking of such bank in addition to that of the issuing bank. There are following
other letter of credits:
1.
2.
3.
4.
5.
6.
7.
8.
9.
Revolving Credit
Transferable Credit
Back to Back Credit
Green Clause Credit
Red Clause Credit
Clean Documentary Credit
Transit Credit
Stand by Credit
Sight Credit
Parties to a credit:
The applicant:
The applicant of the letter of credit is called the importer or buyer. The buyer requests to
the bank to open a documentary letter of credit in favor of the seller.
Opening bank (issuing bank or importer bank):

At the request of the importer an issuing bank issues a credit under the
instructions in the favor of the seller.
Advising bank:
An advising bank is a bank in the sellers country. The issuing bank forwards the advice
of the credit by mail or by any mode to the correspondent bank in the exporter country as
instructions of the opener.
Beneficiary (exporter):
The person or body receiving the letter of credit from the importer that is opened in
favor of him.
Confirming bank:
The bank that on the requests of the issuing bank adds confirmation to a credit. It is
definite undertaking of the confirming bank, in addition to the issuing bank.
Negotiating bank:
It May or may not be the advising bank. An authorized bank that gives the value to the
draft for processing and payments.
Reimbursing bank:
Reimbursing bank is the bank, which on the behalf of the opening bank, honors the
Reimbursing claim lodged by the negotiating bank.
Modes of payment:
Sight letter of credit:
The seller submit all the documents with draft in the importer country
Complying with the all terms and conditions. The payments are made on the presence of
the documents.
Usance letter of credit:
Under these circumstances it is agreed that the payment will be made after a
specified period. So the payment is made after or on the expiry of that date.
Risks for importer and exporter:

Importers risks:
He does not know the seller.

He does not know that goods will be delivered in time.
He does not know how to check the goods.
Exporters risks:
He does not know the buyer.

He does not know the credit worthiness of the buyer.
He does not wait for payment.
He does not wait for exchange control.
Buyers and sellers obligations:
The sellers obligations:

Provision of goods as per contract.
License authorization and formalities.
Contract of carriage and insurance.
Delivery at time.
Transfer of risk.
Division of cost.
Notice to buyer.
Proof of delivery.
Good checking marking and packing.
Other obligations.
Buyers obligations:
Payment of price.
License authorization and formalities.
Contract of carriage and insurance.
Taking Delivery at time.
Transfer of risk.
Division of cost.
Notice to seller.
Proof of delivery.
Inspection of goods.
Possible problems in international trade:
Non-payment.
Delay in delivery.
Financing, how and against what.
Currency restrictions.
Regulatory restrictions.
Documentation and mode of settlement.
ICC rules and INCO terms.
HUMAN RESOURCE DEPARTMENT
FUNCTIONAL RESPONSIBILITIES:
Right Now the responsibilities assigned to HR department at Corporate Center
can be categorized under three heads:
Staff matters / Basic HR Functions

Expenses control
Security matters
Now Ill discuss these one by one:
Background:
The banking council of Pakistan was responsible for the recruitment, selection
and allocation of human resources. After the dissolution of the Pakistan Banking Council,
the Banking & Financial Services Commission of Pakistan is responsible for these
activities.
Procedure:
Staff requirements are met according to the changing needs of macro environment
scenario and particularly the arising needs of the bank itself. A need analysis is
conducted. After assessing the human resources requirements and screening of the
applications, most probably, the suspects are invited for a written test.
Short listed candidates are called for an interview for personality and social appraisal.
Interviews are a mix of direct and indirect interviewing techniques and information
required.
The selected candidates are sent for training of six months training from MDIs.
The training is through the lectures regarding banking procedural guidelines and other
behavioral aspects. After the completion of training employees are allocated to different
offices. The effective management of people in an organization requires an understanding
of motivation, job design, reward systems, and group influence.
Recruiting
Retention
Succession planning
Risk Management
Diversity in our workforce
Management information
Progressive compensation and benefits design and implementation
Employee communications and relations
Training needs analysis, program design and implementation
Performance evaluation
Work-life initiatives
CREDIT & ADMINISTRATION DEPARTMENT

The responsibility of providing administrative support for the lending activities of
the Bank, and day-to-day monitoring of credit-exposure, is vested in the Credit
Administration Department (CAD).
FUNCTIONAL RESPONSIBILITIES:
The main responsibilities under this department are:
Implementation of credit facility and their maintenance according to terms of credit

approved.
Ensure that standard loan documentation for each credit facility is maintained and the
correctness & completeness of such documentation and also responsible for custody of all
credit files.
Maintain the safe custody of all collateral as per banks standard operating procedures;
undertake periodic evaluation and inspection of hypothecated/ pledged inventories in
accordance with the terms of credit.
Ensure compliance with
Institutional credit policies & procedures
Local regulatory requirements.
Prepare various portfolio composition reports and other documentation for submission to
GRMs & RMs.
CREDIT FACILITY IMPLEMENTATION PROCEDURE:
Upon approval of credit proposal, the credit proposal and approval are handed over to
CAD. Now CAD determines the nature of documentation required and on receipt of same
ensures that all legal documents are obtained and are legally enforceable. After all these
activities it can release the facility for utilization.
MARKETING DEPARTMENT
The marketing department in HABIB BANK LIMITED is very strong. It is the
main source of gaining and maintains the customers that can give a large profit to the
bank. There are five relationship managers in Habib bank and every person is responsible
for the credit of his party.
CUSTOMER DEALING:
HBL corporate center only deal with the following categories of business:
The organization that have minimum 250 million sales in a year.

The organization that have availed 80 million finance
Agri based industry.
HBL do not deal with the agriculture sector.
Read more: AN INTERNSHIP REPORT ON HABIB BANK LIMITED - Virtual

University of
Pakistan http://vustudents.ning.com/group/fini619internshipreportfinance/forum/to
pics/an-internship-report-on-habib-bank-limited#ixzz3EAMDVpwHPROCEDURE
FOR CREDIT APPROVAL:
It is the responsibility of the relationship manager to provide or fulfill the requirement of the
customer by checking his financial and position. The procedure of credit approval starts with
the credit proposal. First of all the customer request to the bank for credit and on the behalf of
him the RM check the memorandum. The
Memorandum includes:
The company information.

Purpose of credit.
Assessment of management.
Risks.
Financial analysis.
Third party or other bank information.
Conclusion and recommendations.
Then the RM sends it to the authorities who accept or reject the proposal. If they accept the
proposal they announced a credit range for the party. At the end RM sends the proposal to
CAD deptt custody and check.
EXCESS FACILITY CREDIT BY RM:

Relationship manager is authorized to provide the excess facility to the customer
than the credit line. It may be up to
10 percent of excess amount
OR
12.5 million Whichever is less?
It is not more than 15 days if the customer wants to increase this facility he has to contact
with the head office.
TYPES OF CREDIT FACILITY:

1)
fund based:
It is first type of credit facility. In this facility the bank actually provides fund to customers.
2)
non fund base:
Second type of credit facility that does not provides fun but only give the guarantee. If the
customer is unable to make the payment at maturity date then bank will be responsible to
make the payment.
1. 1.

PLAN OF INTERNSHIP PROGRAMME
Every body knows that knowledge does not increase without practice .practice is an important
mean to improve the knowledge. Therefore university provides internship programmed of six
to eight week in different organization during MBA so that we could able to apply in theoretical
concepts to practical.
I started internship on 5th may to 25th June in water works road branch of habib bank.
Work
1.
2.
3.
done
1.
2.
3.
by me in HBL in different departments:

Account opening department.
Data punching department.
Public dealing department.
ACCONTS OPENING DEPARTMENT
In this account department I gain the particle knowledge about opening. This department
deals with opening account and saving account for its customer and all matters regarding
there off. The customer opening account/saving accounts can be categorized as following:
1)
individual
2)
firm
3)
company
4)
trust
5)
staff
6)
others
OPENING AN ACOOUNT:
In order to open an account first of all the customer has to fill a form prescribed by the bank.
The person is required to bring some reference or introduction for opening the account.
Introducer may be a person who has an account with HBL.
Some important information regarding introducer e.g. the name and account number
of the introducer is written on the space provided on the specimen signature cards. Then in
order to find out whether he is a true introducer or not a letter is sent to him thanking him for
this introduction, so that any thing wrong may come into notice.
There are different requirement for different types of accounts and account holders. An
important thing is that the customer should have a corporate customer. The corporate
customer limit is 40 million and this branch always deals the corporate customer.
General rules for opening an account:
One person can open only one account in the same branch with the same category.
In the event of death of an account holder the credit balance will be transfer to the
heirs of the diseased individual account.
Services charges will be deducted periodically as prescribed from time to time on the
accounts that are under the limit of specific account.
Services charges are not applicable on that accounts that are prescribed as exempted.
Account holder can only withdraw the sum of money by his own account by cheque.
A distinctive number will be allotted to the each account.

The bank can close those accounts that are under the minimum limit of the bank.
Any sum to be deposited in the account should be accompanied by paying in slip
showing the party account number and the name.
Cheque should be signed by the account holder by the specimen given by the bank.
Post dated and defective cheque is not accepted.
If statement of account spoiled a new will be issued on cost.
Any change in the address should immediately communicate to the bank.
The account holder wishing to close the account must surrender the cheque book.
Account may be transfer from one branch to another same branch without any charges
etc.
Data punching
Data punching means feeding of data collected into the computer daily or weekly. We punch
data daily which include in the account. First, we enter transaction of customer on the basis of
buying and selling daily in the customer account then we punch customer data one by one
according to dates and sequence. Through data punching, we can easily transfer the data and
money to another account and determine the account information. After debt and credit
amount, we punch data according to their account in the computer so that we could check
data easily. We make cash debit vouchers.cash credit vouchers,sundry debtor and sudry credit
vouchers,transfer vouchers,internal account vouchers ,cross branch vouchers. We give detail
in the system .these all
Public dealing
Public dealing means have good behavior with the public for increasing efficiency and growth.
Bank deals with the customer and provides information of accounts and others which relates
to the accounts. Bank guides that how to open account and forms fill to open new account.
Bank issues cheque to the customer for opening new accounts. Bank asks to the customer
about their needs and requirements and fulfill on time.
Following are includes in public dealing: Accounts Opening, Check book issuance, Standing
instructions, Marking stock payments, Debit Credit card issuance, Activation of dormant
accounts, Making inoperative account into operation, Recovering of multiple charges availing
bank facilities, issuance of bank account statements
Open new accounts to the customer.

Issuance cheque to the customer.
Provides information for opening new account to the customer.
Establish good behavior with the customer to increase our product and services.
To solve their problems which create open accounts etc.

13 .Financial Analyses
Balance Sheet
2010
2009
2008
As at December 31, 2007

Assets
Cash & Balances with Treasury Banks
Balances with other Banks
Landings to Financial Institutions
Investments
Advances
Other Assets
Operating Fixed Assets
Deferred Tax Asset
Liabilities
Bills Payable
Borrowings From Financial Institutions
Deposits and other Accounts
Subordinated Loans
Liabilities against assets subject to finance lease
Other Liabilities
Deferred Tax Liability
Net Assets
Represented By:
Shareholder's Equity
Share Capital
Reserves
Un appropriate Profit
Total equity attributable to the equity holders of the
Bank
Minority Interest
Surplus on revaluation of assets - net of tax
(Rupees in '000)
81,516,883
35,990,301
30,339,344
245,016,986
434,998,560
15,876,545
8,835,326
34,478,466
79,527,191
29,560,309
5,352,873
209,421,147
432,283,588
16,475,939
8,172,590
40,333,882
5 6,533,134
39,364,297
6,193,787
129,833,446
456,355,507
34,588,444
14,751,252
12,186,848
887,052,411
821,127,519
749,806,715
9,774,749
37,430,333
721,069,137
4,281,835
10,041,203
48,121,649
653,452,460
4,212,080
9,828,082
46,961,165
597,090,545
3,954,925
24,971,618
26,204,580
2 5,663,411
797,527,672
8 9,524,739
742,031,972
79,095,547
683,498,128
6 6,308,587
10,018,800
27,671,813
4 4,121,103
9,108,000
25,801,889
36,325,458
7 ,590,000
23,656,044
3 1,933,178
8 1,811,716
71,235,347
6 3,179,222
7,713,023
7,860,200
8 90,099
8 9,524,739
79,095,547
6 6,308,587
Profit and Loss Account

For the year ended December 31, 2007
Mark-up/return/interest earned
Mark-up/return/interest expensed
Net Mark-up/interest income
2010
2009
2008
(Rupees in '000)
7 9,999,852 74,751,375
63,376,047
3 4,090,368 33,088,536
26,525,556
4 5,909,484 41,662,839
36,850,491
Provision against Non-performing loans and advance-net

Reversal/provision against off-balance sheet obligations
Reversal of provision against diminution in value of investments
Bad debts written off directly
Net mark-up/interest income after provisions
Non-market/interest income
Fee,commision and brokerage income
Income/gain on investments
Income from dealing in foreign currencies
other income
Total non-mark-up/interest income
Non-market/interest expense
administrative expenses
other provision offs-net
other charges
Total non-mark-up/interest expenses
Profit Before Taxation
7 ,559,458 8,276,180
3 0,895 (51,396)
3 89,273 1 ,387,354
6,904,919
3 72,598
1,909,887
7 ,979,626 9,612,138
3 7,929,858 32,050,701
9,187,404
27,663,087
4 ,928,705
6 07,440
2 ,893,454
2 ,619,905
1 1,049,504
4 8,979,362
4,620,148
452,823
1,692,776
3,176,865
9,942,612
41,993,313
4,518,408
1 ,300,975
2 ,374,318
3 ,088,994
1 1,282,695
3 8,945,782
2 3,053,860 21,733,407
1 78,148
372,957
1 78,700
3 ,540
5 11,373
397,668
2 3,922,081 22,507,572
21,425,361
2 00,163
64,751
3 23,575
22,013,850
2 5,057,281 19,485,741 16,931,932

Taxation
current
prior years
deferred
9 ,331,828 7 ,827,137
6 94,898 (1,079,473)
(582,499) 4 39,434
9 ,444,227 7 ,187,098
1 5,613,054 12,298,643
Profit after taxation

Attributable to:
Equity holders of the Bank
Minority Interest
Basic and diluted earnings per share
1 5.58
8 ,308,611
2 33,100
(2,473,891)
6,067,820
10,864,112
1 2.28
1 1.83
Cash Flow Statement

For the year ended December 31, 2007
CASH FLOWS FROM OPERATING ACTIVITIES

Profit before taxation
Less: Dividend income and share of profit of associated and
joint venture companies
2010
2009
2008
(Rupees in '000)
25,057,281 19,485,741
(318,539)
(281,152)
16,931,932
( 1,111,810)
Gain on sale of investments - net
Adjustment for:
Depreciation/amortization/adjustments
Reversal against diminution in the value of investments
Provision against Non-performing loans and advances-net of
reversals
Amortization of premium on investments
Gain on sale of property and equipment-net
Miscellaneous provisions
(288,836) (171,403)
(607,375) (452,555)
24,449,906 19,033,186
1,670,958
1,387,354
1 ,625,943
1 ,909,887
7,559,458 8,276,180
(65)
(268)
69,755
257,155
(16,993)
(29,386)
209,043
321,561
9,876,529 11,883,554
34,326,435 30,916,740
6 ,904,919
8 ,077
8 54,925
( 41,840)
5 72,761
11,834,672
27,457,552
(24,986,471)
840,914
(10,274,430) (4,851,108)
5,859,907 (1,951,264)
(29,400,994) (5,961,458)
(4,565,657)
( 81,087,692
(6,355,923)
( 92,009,272
Income tax paid-net

Net cash flows from operating activities
67,616,677 81,053,273
(10,691,316) 4,098,973
(266,454)
260,126
(1,350,947) 4,083,696
55,307,960 89,496,068
60,233,401 114,451,350
(10,137,565)(12,265,104)
50,095,836 102,186,246
6 5,792,418
( 12,033,4440
(5,590,148)
5 ,657,085
53,825,911
(10,725,809)
(11,600,790)
( 22,326,599)
CASH FLOWS FROM INVESTING ACTIVITIES

Net investments in securities, associated and joint venture
companies
Dividend income received
Fixed capital expenditure
Proceeds from sale of fixed assets
(35,957,034)(78,588,907)
319,465
624,628
(948,433) (1,835,161)
51,667
104,288
37,444,490
2 37,291
( 2,662,833
1 08,033
Increase/decrease in operating assets

Government securities
Landings to financial institutions
Loans and advances
Other assets-net
Increase/decrease in operating liabilities

Deposits and other accounts
Borrowings from financial institutions
Bills payable
Other liabilities-net
Effect of translation of net investment in foreign branches

subsidiaries and joint ventures
Net cash flows from investing activities
1,666,058
389,273
(197,242)
(1,309,052)
15,622,880
308,619
1,689,707
3 ,037,018
(36,225,716)(78,005,445)
38,163,999
CASH FLOWS FROM FINANCING ACTIVITIES
Sub-ordinate Loans
Dividend Paid
Net cash flows from (used in )financing activities
(58,868)
(5,450,436) (4,173,059)
(5,450,436) (4,173,059)
( 2,730,251
(2,789,119)
Increase in cash and cash equivalents during the year

Cash and cash equivalents at beginning of the year
Effects of exchange rate changes on cash and cash
equivalents
Cash and cash equivalents at end of the year
8,419,684 20,007,742
108,541,351 84,639,657
1 3,048,281
7 5,518,830
546,149 4,440,101
109,087,500 89,079,758
117,507,184 109,087,500
7,330,320
82,849,150
9 5,897,431

Liquidity Ratios
In graphs 2008 should be near origin. Round the figures upto 2 decimal
places
You need to provide complete working of the ratios. You are required to carefully
study the table regarding maturities of assets and liabilities. Where you can easily
find the current and long term part of assets and liabilities. Assets and liabilities
having upto 1 year maturity are considered as current assets and current liabilities.
This table is given in the annual report of the selected bank. You need to re-calculate
the current and long-term parts of assets and liabilities according to this table.
The liquidity of a firm is measured by its ability to satisfy its short term obligations as they
come due.
These are includes:
Current Ratio:
Current ratio = current asset/current liabilities
2010
Rs. In 000
843738619/770745837
1.0947041
2009
Rs. In 000
772621047/737819892
1.0471675
2008
Rs. In 000
666335481/679543203
0.9805638
Comments:
The current ratio of 2010 and 2009 is quite acceptable as compare to 2008.
It means that its current ratio is less liquid. There is small increase in industrys ratio which
can meet the short term obligations of 2010 and 2009 as compare to 2008.
Acid Test Ratio:

Acid test ratio = current asset inventories prepaid expanses/current liabilities.
2010
Rs. In 000
843738619-434998560
2009
Rs. In 000
772621047-432283588
2008
Rs. In 000
666335481-45635507
/770745837
0.5303176
/737819892
0.4612744
/679543203
0.9134077

Leverage Ratios
The leverage ratio may be defined as financial ratio which is magnification of risk and return
introduced through the use of fixed cost financing such as debt and preferred stock
Leverage ratios measure the degree of protection of suppliers of long term funds.
These include:
Times Interest Earned= Earning Before Interest and Taxes (EBIT)

Interest Expenses
2010
Rs. In 000
2 3,922,081[a1] /34090368
0.7017255
2009
Rs. In 000
22,507,572/33088536
0.6802227
2008
Rs. In 000
22,013,850/26525556
0.829911
Comments:
The time interest ratio shows the lower value. Firm is not able to fulfill its
interest obligations. It is also called interest coverage ratio.
Debt Ratio:
Debt Ratio= Total liabilities/ total assets.
2010
Rs. In 000
2009
Rs. In 000
2008
Rs. In 000
797,527,672/887,052,411
0.8990762
742,031,972/821,127,519
0.9036745
683,498,128/749,806,715
0.9115658
Comments:
These values indicate that the firm has financed close to total of its assets with
debt. The higher this ratio, the greater the firms degree of indebtedness and the more
financial leverage it has.
[a1]= 2 5,057,281+ 3 4,090,368

Debt-Equity Ratio:
Debt-equity ratio = total liabilities / total share holder equity.
2010
Rs. In 000
797,527,672/81811716
9.7483308
2009
Rs. In 000
742,031,972/71235347
10.416626
2008
Rs. In 000
683,498,128/63179222
10.818401
Comments:
It is a ratio of amount invested by outsiders to the amount invested by the owners
of the business. This ratio indicates the low margin of safety to the creditors.2009 and 2008
has high ratio as compare to 2010. The firm would not be able to meet the creditors claim
because of low assets or shareholder equity.
Debt to Tangible Net worth Ratio:
Tangible Net worth Ratio:

Tangible net worth ratio =total assets- intangible asset-total liabilities.
Debt to tangible net worth ratio= Total Debt / Tangible Net worth Ratio.
working of Tangible net worth required
2010
2009
2008
Rs. In 000
9.7483308 [a1] /80689413
1.2081
Rs. In 000
10.416626/70922957
1.4687
Rs. In 000
10.818401 /51557334
2.0983
[a1]797,527,672

Total Capitalization Ratio:
Debt to total capital ratio =long term debt/ (long term debt -+shareholder equity).
2010
Rs. In 000
750322590/(750322590-+8
1,811,716)
750322590/668510874
1.122379
2009
Rs. In 000
683869120/(68386912071,235,347)
683869120/612633773
1.1162772
2008
Rs. In 000
856678881/(856678881-6
3,179,222)
856678881/793499659
1.079621
Comments:
This ratio is relating the long-term debt to the permanent capital of the bank. It
shows that the fixed assets decrease than previous years which show a good sign. This ratio is
considered to be satisfactory.
Profitability Ratios
Profitability measures enable the analyst to evaluate the bank or firms profits with respect to
a given level of sales, a certain level of assets or the owners investment. Without profits, a
bank or firm could not attract outside capital
Net Profit Margin:
Net profit margin = (Net income/ Net sale) * 100
2010
Rs. In 000
(15,613,054/79,999,852)*100
19.52%
2009
Rs. In 000
(12,298,643/74,751,375)*100
16.45 %
2008
Rs. In 000
(10,864,112/63,376,047)*100
17.14%

Return on Assets:
Return on Asset = Profit before Tax / Total Assets *100
2010
2009
2008
Rs. In 000
Rs. In 000
Rs. In 000
(23,922,081[a1] /887,052,411)*100(22,507,572/821,127,519)*100 (22,013,850/749,806,715)*100
2.69681
2.74106
2.93594
Comments:
This ratio shows that the returns on assets are decreasing as compare to
previous years but overall profit with its available assets is increasing.
DuPont Return on Assets:
DuPont return on assets = (Net income/sale)*(sale/total asset) *100
2010
Rs. In 000
(15,613,054/79,999,852)*(
79,999,852/887,052,411)*100
1.7604
2009
Rs. In 000
(12,298,643/74,751,375)*
2008
Rs. In 000
(10,864,112/63,376,047)*
(74,751,375/821,127,519)*100(63,376,047/749,806,715)*100
1.4975
1.4487
Operating Income Margin:

Operating income margin = (EBIT/ Net sale) *100
Return on Operating Assets:

Return on operating assets = (EBIT/operating asset)*100
2010
Rs. In 000
2009
Rs. In 000
2008
Rs. In 000
( 2 3,922,081[a2]
/887,052,411)*100
2.69681
(22,507,572/821,127,519)*100 (22,013,850/749,806,715)*100
2.74106
2.93594
[a1]25,057,281
[a2]= 2 5,057,281+ 3 4,090,368

Comments:
This ratio indicates that banks growth is not good. It can not cover all assets or
expenses through net profit before tax easily. Its not able because its ratio is decreasing than
previous years.
Return on Total Equity:

Return on total equity = (Net income/ total equity)*100
2010
2009
Rs. In 000
Rs. In 000
(15,613,054/81,811,716)*100 (12,298,643/71,235,347)*100
19.08%
17.26%
2008
Rs. In 000
(10,864,112/63,179,222)*100
17.19%
Comments:
Return on equity indicates the net income by the total equity of the owners. In
the year of 2010, the total equity is increasing than previous years and net income is also
increasing. In the year of 2010, the total equity is grater than net income. It means that
generally, the bank has high return, the better off are the owners.
Gross Profit Margin:

Gross profit margin = (Gross Profit/ Net sales)*100
2010
Rs. In 000
2009
Rs. In 000
2008
Rs. In 000
(45,909,484/79,999,852)*100 (41,662,839/74,751,375)*100 (36,850,491/63,376,047)*10

57.39%
55.73%
58.14%

Activity Ratios
Activity ratios measure the speed with which various accounts are converted into sales or cash
such as inflows or outflows.
These include:
Total Assets Turnover

Total assets turnover = Net sales/ total asset
2010
Rs. In 000
7 9,999,852 /887,052,411
0.0902
2009
Rs. In 000
74,751,375/821,127,519
0.0910
2008
Rs. In 000
63,376,047/749,806,715
0.0845
Fixed Assets Turnover:

Fixed assets turnover = Net sales/ fixed asset
2010
Rs. In 000
7 9,999,852 /739,205,903
0.1082
2009
Rs. In 000
74,751,375/706,687,146
0.1057
2008
Rs. In 000
63,376,047/647,715,497
0.0978
Market Ratios
Market ratio relates a firms market value, as measured by its current shares price to certain
accounting values.
These include:
Dividend per share

Dividend per share =Total dividend/ no of share outstanding
2010
Rs. In 000
5,450,436/10,018,80
0.5440
2009
Rs. In 000
4,173,059/9,108,000
0.4582
2008
Rs. In 000
2,730,251/7 ,590,000
0.3597
Earning per Share:

Earning per share = Net income/ no of share outstanding.
2010
Rs. In 000
15,613,054/10,018,80
1.56
2009
Rs. In 000
12,298,643/9,108,000
1.35
2008
Rs. In 000
10,864,112/7 ,590,000
1.43
Comments:
This ratio is decreasing as compare to previous years. In these ratios, net
income is greater than no of shares outstanding. Thats why, the earning per share is
decreasing and growth rate as well as. It shows low profitability between the shareholders.
AWARDS:
2010
'HBL wins Best Emerging Market Banks award in Pakistan 2010'
2009
'The Best Emerging Market Bank in Pakistan'
HBL among Top 500 Global Financial Brands

2008
'Best Bank In Pakistan'
'Most Innovative Global Trade Finance'
'Buzziest Brands'
15. Conclusion/Recommendation:
RAFIQ has become a creditable name in the textile industry of Faisalabad. In a bid to prepare
itself for the challenges / opportunities of the barrier free trade Textile Vision 2005, their
planned spinning unit will help them reap the benefits with competitive edge of cost effective,
quality products. The company has already started exporting quality yarn to various buyers in
the region. We may improve net return on funded facilities from the relationship by
rationalizing the credit portfolio in accordance with their financial requirements as proposed.
In view of the above, we recommend the proposal for approval.

Recommendations:
Being a finance student, your main focus should be on finance related issues based
on your training experience and ratio analysis
During my internship, I have realized that habib bank is vast system and spread its
networking all over the world and performing very well. It is difficult to give suggestion about
improving condition of habib bank.
So, I will few suggestions to habib bank which are given below:
v
Bank must introduce online system all over the world.
Bank has different schemes which should express to the required customer so that
They are introduced reasonable shares in the market.
Bank should provide interest free loan to the scholar students for their encouragement.
v
Habib bank should introduced computerize system in all branches. Through it, bank can
increase more efficiency in the work than without it.
v
Habib bank should create plan for opening a customer account with bank where he could
easily know about the procedure of filling forms or cheque of new accounts. It saves a lot of
times of banks and staff who perform it.
v
Habib bank should increase communication with customer so that they could more
establish public relation and expand its growth.
v
Habib bank must introduce marketing programs for the clients so that they could easily
know about the market development of bank because it is problem for clients that he has no
idea for usage of new marketing term.
v
Bank should have same behavior with the customer. Bank should not adopt such a
behavior which creates problems between the customer and banker. For example, bank show
good behavior with very close person and bad behavior show with other person. It is not good
position for the banking growth.
Hbl pakistanPresentation Transcript

1. To provide employment opportunities to people.To promote and boost up business sector inside
the country.To earn profit for the Bank itself and for its shareholders.Following are some of the
main objectives of HBL.1.1 INTRODUCTION OF HBLIt is the prime Bank in country established in
1941 having a registered head office inKarachi. It was nationalized in 1974, but recently on 26th
February 2004 it has beenprivatized by Government of Pakistan and is taken over by Aga Khan
Fund forEconomicDevelopment (AKFED). They acquired 51 percent of shares of HBL.It is one of the
largest Banks of Pakistan with 1439 branches and having total assets ofRs. 434,931,930,000.History
of HBLThe first branch of HBL started functioning on 30th August, 1941 at Muhammad AliRoad
Bombay, where Quaid-e-Azam Muhammad Ali Jinnah first of all opened hispersonal account.In
1942, on the desire of Quaid-e-Azam, Habib family migrated to Pakistan and later onshifted the
Banks Head Office from Bombay to Karachi on 7th August, 1947 just oneweek prior to
independence, to play its pivotal role in the development of this newly borncountry.At the time of
independence, the areas which now constitute Pakistan were producingonly agricultural products
raw material for indo-Pak subcontinent. Partially no industrieswere there to process the raw material,
therefore the raw material was exported fromPakistan. There were 19 non-Indian foreign Banks
which were engaged in the export ofcrops from Pakistan with only two Pakistani Banks i.e. HBL and
the Australia Bank. Thecircumstances were completely un-certain. The confidence of the people had
beenshakenby the un-friendly environment and till the time peace had not been restored,
peoplewould naturally have been interested in other things.1.1.2 MISSIONTo be recognized as the
leading financial institution of Pakistan and a dynamicinternational bank in the emerging markets,
providing our customers with a premium setof innovative products and services, and granting
superior value to our stakeholders shareholders, customers and employees.1.1.3OBJECTIVES OF
HBL
2. To provide loan and advances to help out in self employment schemes.1.1.4SYMBOL OF
HBLSymbol depictsBismillah ============Islamic Culture and ValuesSword ==============
PowerLion================ As a symbol of strength1.1.5CORE VALUES OF HBLHBL is firmly
grounded with a corporate philosophy that incorporates five solid valueswhich each individual
associated with the bank abides by.4M. ISMAIL L1F07BBAM0001 UCP LAHORE1.1.5.1
HumilityHBL encourages a culture of mutual respect and treats both their team members
andcustomers with humility and care.1.1.5.2 IntegrityFor them, integrity means a synergic approach
towards abiding their core values. Unitedwith the force of shared values and integrity, they form a
network of a well-integratedteam.1.1.5.3 MeritocracyAt every level, from selection to advancement,
they have designed a consistent systemofhuman resource practices, based on objective criteria
throughout all the layers of theorganization. HBL is therefore, able to achieve a specific level of
performance at everylayer of the organization.1.1.5.4 TeamworkTheir team strives to become a
cohesive and unified force, to offer the customer, aservice beyond his expectations. This force is
derived from participative and collectiveendeavors, a common set of goals and a spirit to share the
glory and the strength tofacefailures together.1.1.5.5 Culture of InnovationTheir aim is to be
proactively responsive to new ideas, and to respect and reward theagents, leaders and creators of
change2.1 Departments of HBLThere are few departments on which general or day to day banking
of HBL composes.There details are as under:Deposit departmentClearing DepartmentsInland
Remittance DepartmentBills DepartmentsAdvances DepartmentsCash departmentCD
DepartmentTo help in development and industrialization of the country.
3. Foreign Exchange Department2.1.2PRODUCTS OFFERED BY HBL2.1.2.1 Tele-printer

serviceIntroduced in 1952, this system helped the Bank to improve its services.2.1.2.2 Rupee
Travelers ChequesIt was introduced in 1957. Here the customers are provided the facility of
encashment oftheir travelers cheques through any branch of the Bank.2.1.2.3 Small Factory Owner
SchemeIn 1959 the Bank offered loans to small scale producers under the small factory
ownerscheme in order to boost the economy of Pakistan.2.1.2.4 Foreign Tele printer ServiceIt was
introduced in 1961. The idea behind this scheme was to provide quick andpromptBanking services
to customers in foreign countries.2.1.2.5 Gift cheques schemesIt was launched in 1962. Under this
scheme, the Bank provided customers withpreprintedcheques of various denominations which could
be used to send gifts to their lovedone on various occasions.2.1.2.6 School BankingThis scheme
was introduced in 1962 to provide Banking services to children in anumberof schools though out the
country.9M. ISMAIL L1F07BBAM0001 UCP LAHORE2.1.2.7 Drive in BankingHBL established
Drive in branches in 1962 at various major cities of the country wherethe customers could avail
Banking services without getting down from their vehicles.2.1.2.8 Mobile BankingIt was introduced in
1962. The feature of this scheme is to provide Banking services tothe customers residing in the rural
areas.2.1.2.9 Night safe schemeIn 1962 the Bank offered facility to their customers to deposit their
valuables at night inspecified branches of the Bank.2.1.2.10 Computer accountsIn 1962 the Bank
introduced computer accounts through which most of the accounts inhead office were
computerized2.1.2.11 Computer Prize BondIt was introduced in 1966. It is a scheme through which
prize could be declared for prizebond scheme.2.1.2.12 Credit card schemeIt was introduced in 1966
through which customers could get certain sum of money fromspecified branches. Many business
organizations accepted payments through validcredit
4. cards.2.1.4AGENCY SERVICES TO THE CUSTOMERSHBL also provides agency services to its
customers. Some of which are as follow:15M. ISMAIL L1F07BBAM0001 UCP
LAHORE2.1.4.1Collection of chequesHBL pays and collects cheques on behalf of their customers,
and for this it receivescommission form their account holders.2.1.4.2 Collection of dividendsThe
Bank provides a very useful service by acting as an agent for its customers. Itarranges the collection
of dividends on shares and securities held by its customers. Thecustomer is simply to inform the
issuer of the securities that the interest on thesecuritiesis to be credited to his account in the Bank.
Bank charges commission for the collectionof the dividends on behalf of account holders.2.1.4.3
Purchase and sale of securitiesHBL if authorized by the customers also makes purchase and sale of
securities on thebehalf of its customers. Bank charges commission for the purchase or sale made by
itsonbehalf on the customers.2.1.4.4 Execution of standing instructionHBL also executes the
standing in case if it is ordered by the customers of the Bank todoso. These instructions are usually
given in writing to Bank. The Bank debits and creditsthe accounts of its customer for the transactions
carried out by the individual or firm.2.1.4.5 Transfer of FundsHBL, also transfers funds of the
customers from one Bank to another Bank. If thetransferis within one station, they dont charge any
commission and even if they charge, theycharge on reduced rates.2.1.4.6 Acts as an agentHBL also
acts as an agent, correspondent or representative of its customers at homeandabroad.16M. ISMAIL
L1F07BBAM0001 UCP LAHORE2.1.4.7 General utility servicesHBL also performs a number of
generally utility services to its customers which are asfollows:2.1.4.8 Foreign exchange
BusinessHBL transacts foreign exchange business by discounting foreign bills of exchange andthus
provides facilities for financing in foreign trade.2.1.6ORGANIZATION STRUCTUREA well-developed
and properly coordinate structure is an important requirement for the
5. success of any organization. It provides the basic framework within which functions andprocedures
are performed. Any organization needs a structure, which provides aframework for successful
operations. The operation of an organization involves anumberof activities, which are related to
decision making, and communication of thesedecisions.These activities must be well coordinated so
that the goals of the organization areachieved successfully.18M. ISMAIL L1F07BBAM0001 UCP
LAHORE2.1.6.1 STRUCTURE OF HBLAt present the Bank operates through one central and 23
Regional Offices and 1439branches, all over Pakistan. The president and Executives Committee
look after theaffairs of the Bank. Each Regional Head Quarter is headed by a Chief Executive
andassisted by General Manager Operations and General Manager Support Services. TheRegional
Head Quarter controls the branches in their area.Overseas operations consist of 65 main branches,
two affiliates, two representativeoffices and two subsidiaries.President, from Head Office at Karachi
controls the officers of the Bank with the help ofthe senior management. Functional responsibilities
of the Banks are broken into sevengroups known as1) International Operations Group2) Corporate
Banking and Treasury Investment Group3) Retail Banking and Operation Group4) Finance, Audit
and Administration Group5) Assets Remedial Management Group6) Credit Policy Group7)
Corporate Bank, Financial Institutions and Project Finance GroupIn addition to the overall controlling
authority, president also manages the InternationalOperations Group individually. While the Senior
Executive Vice Presidents superviserest of the functional groups. Each Senior Executive Vice
President is individuallyresponsible for the group which is assigned to him.At the level of provinces
there are Regional Head Quarters headed by Regional ChiefExecutives (RCE). Each RCE is
assisted by GM operations and GM Support Services.Branches are also controlled by the RCEs.
Circle Offices of the past times have beenremoved to reduce Managerial Layers, which were
working under the control of ZonalOffices. This happened as a result of policy of beginning new
changes in theorganizational structure.2.1.6.2 Organizational Chart of HBLA chart defines the line of
authority in an organization and its departmentation. It is asortof visual presentation of the
organizational structure. It specifies the duties andresponsibilities of the personnel of the
organization. The Organizational chart of HBL isgiven below.2.1.6.3 Organizational ChartChairman
6. PresidentBoard ofDirectorsSEVPInternationalOperationsSEVP CorporateBanking & TreasurySEVP
RetailBanking &InformationTechnologySEVP Finance, Audit& AdministrationSEVP Asset
RemedialManagementSEVP Credit PolicySEVP Corporate Banking,financial institute &
ProjectFinance2.1.7ANALYSIS OF ORGANIZATIONAL STRUCTUREThe purpose of an
organizational structure is to help in creating an environment forhuman performance. It is then, a
management tool and not an end in its own. Althoughthe structure must define the task to be done,
the rules so established must also bedesigned in the light of abilities and motivation of the human
recourse available. Byanalyzing the organizational structure of HBL presence of the following
elements can befound in its structure.2.1.7.1 Centralized Decision MakingBy looking at the
organizational structure of HBL would be found that the structure atHBL is a critical one. All the
decisions are made at the top management level and thesubordinates have to obey these decisions.
This trend in the decision making shows apattern of rigidity in structure of HBL.2.1.7.2 Downward
CommunicationCommunication is the process by which information is exchanged and understood
bytwoor more people, usually with the interest to motivate or influence the behavior of othersinthe
organization. Downward communication is the message and information sent fromtop management
to subordinates in a downward direction. Managers can communicatedownward to the employees
through speeches, massages in company publications,information leaflets, tucked into pay envelops
material on bulletin boards, policy andprocedure mandates.The same pattern is followed at HBL. No
doubt its a very traditional approach but it cancreate problems because it ignores the receiver of the
communication because theissuer21of policies and procedures does not ensure communication. In
reality may themessagescommunicated downward are not understood perfectly.
7. 2.1.7.3 Chain of CommandThe chain of command is an unbroken line of authority that links all
persons in anorganization and shows who reports to whom. By analyzing the organizational
structureit can be found that there is a scalar principle followed with in the Bank because
eachandevery person knows to whom can one report. The authority and responsibility fordifferent
tasks and duties are different, as well as every one knows the successivelevelsof management all
the way to the top.2.1.7.4 Authority and ResponsibilityThe chain of command illustrates the authority
structure of HBL. Authority is the formaland legitimate right of the manger to make decisions, issues
orders and allocatesresources to achieve organizational desired outcomes. By analyzing the chain
ofcommand of HBL, one can come to the conclusion that, as there is scalar patternfollowed at the
organizational setup of HBL therefore it is implied that everyone in hisposition knows that what is
ones authority and what is the responsibility and theauthority it allocated.2.1.7.5

DelegationDelegation is the process, which managers use to transfer the authority
andresponsibilityto position below in the hierarchy. Most organizations today encourage managers
todelegate authority to the lowest possible level to provide maximum flexibility to meetcustomer
needs and adapts to the environment. But at HBL no such system prevails themanagers try to keep
as much of the authority as they can and if sHBL has got a reliable and easy to use internal
computer system. Everyinformation regarding the transactions in customers deposits has
beencomputerized.I observed that HBL employees interact with their clients as if they are
theirpersonal friends and discuss about their problems as their own.The officers of HBL are
considered as one of the most able professionals in thebanking world.A skill or capability that
enables HBL to conceive and implement its strategies.ome authority isdelegated it is sure that it
will be misused22M. ISMAIL L1F07BBAM0001 UCP LAHORE4.1 SWOT ANALYSIS OF HBLHBL is
considered to be a very sound bank in the financial circles. The bank where thecustomers can safely
keep their money as long as they want.In SWOT analysis the best strategies accomplish in
organizations mission by:1. Exploiting opportunities and strengths.2. Neutralizing its threats and3.
Avoiding its weaknesses.Following is a list of SWOT of HBL4.1.1Strengths
8. In opportunity exist, in form of opening of ladies banking section within thebranch which is entirely a
new idea and it will attract customer.28M. ISMAIL L1F07BBAM0001 UCP LAHOREHuge untapped
market potential in consumer banking.Lack of professionalism in the branch employees
mostly.4.1.3OpportunitiesVictim of political, legal and socio-cultural pressuresFemales feel
uneasy in an environment among the male workers.Sense of insecurity in the employees serving at
low profitable branches due to thedown sizing.Inconsistency in efficiency and working atmosphere
due to the largest ofbranches.Poor ATMs ServiceLow job satisfaction.Lack of customer feed
back.Poorer system of recovery of the system is a threat to bankruptcy.Highest number of
branches effecting the proper maintenance and difficulty inproviding same working environment at
the each branchCustomer enjoys the services at the residential
localities.4.1.2WeaknessesVeteran and experience private management group also involved in
other interestslike, textile and cement industry.Having potential to encounter the competitive
environment in the market.24 hours cash access and safe payment products for high value
transaction.Human resources development and introduction of new technology towardsmodern
banking.The band is always on the look to improve its services both to the domestic aswell as
overseas customers.HBL has opened all its branches at commercial areas so that the customers
orclients face no problems in reaching to the bank.27M. ISMAIL L1F07BBAM0001 UCP
LAHOREHBL focuses on consumer banking by lucrative schemes, products and servicessuiting
best to the wants and demands of the customers.Being the pioneer of banking in Pakistan, HBL is
the oldest and is the richest inexperience.HBL is the larger commercial bank in Pakistan with the
network of over 1439domestic and international branches.HBL has very good security
system.HBL maintained its data properly.
9. Highly attractive and advance services by foreign banks to their customers.Also the increasing
operation of private banks.Foreign banks are flourishing in field of consumer financing.Facing
more competition by foreign banks in the market.Loss of confidence of overseas customers due to
freezing of accounts.Strict regulation by government over credit facilities to the customers as Ill as
tomeet the prudential.Growing global technological advancement.The threat of inconsistency and
government policy regarding to business andeconomics sectors, specially political and regional
situation which makes theenvironment uncertain.Shortage of trained and specialized staff at lower
executive and officer levelsConsolidation in the banking sector resulting in increased
competition.An area in the environment that increases the difficulties the organizationsachieving
high performance.29M. ISMAIL L1F07BBAM0001 UCP LAHOREHabib Bank Limited provide
opportunity to utilize its skills and efficiencies inleasing business.4.1.4ThreatsDue to efficient and
veteran management group, HBL can also improve Ill andexpand its foreign operation
successfully.Further reduction in intermediation costs possible, with improving technology.Ebanking facility is also a new opportunity which is a flourishing business inforeign countries and can
also be here, if HBL takes the initiatives.HBL also has an opportunity to expand its new
technological advancement like;tele banking and internet banking facilities in order to serve the
customer moreefficiently, speciallyCustomer feedback on different products and accounts has
really improved thebank performance and encourage the atmosphere for other future
policies.Large international network which principally focuses on trade finance withPakistan can be
utilized to tap trade activities in other markets. In addition,services such as cross border / offshore
financing for corporate customers can beenhanced.Govt. is taking very bold steps to promote IT in
Pakistan. HBL has an opportunityto improve in technology.Growing policies of government on
business and commerce sector provide HBLopportunities to take advantages of these policies to
meet efficiently with thebusiness people to solve their problems with the instant cash and
financingfacilities.Opportunity for developing value added services combined with
corporatebanking relationships, cash management services to large and medium sizedcorporate
clients.
10. 5.1 CONCLUSION & Proper training of customer handling should be given to employees.Training
workshops and coaching clinics should be considered as an option thatwould provide adequate
results.31M. ISMAIL L1F07BBAM0001 UCP LAHOREQuick response to customer queries is
necessary to maintain a healthy relationshipwith the customer.Adding of value added features that
offer competitive advantage is also ameans of avoiding customer dissatisfaction.Surveys must be
conducted regarding customer satisfaction level and allemployees of this dept. should look forward
to getting feedback wheneverpossible.The bank charges high service charges as compared to the
other banks, so theseshould be lowered down.The number of employees should be increased in
order to decrease the workload.There should be transport facility for the employees.Training
program should be started for internees and newly appointed employees.The management should
try to decrease job insecurity among the
employees.RECOMMENDATIONS5.1.1CONCLUSIONHBL is clearly the first choice of every one
who believe in qualitative approach ofbanking an environment of highly responsible people. Bank is
enjoying a healthymarket share and taste of good status in terms of its operative features and
customersupport. HBL is clearly the best bank operating in Pakistan. Personal loan is
aSdistinguished feature of HBL experiencing a good reputation and reasonable markup with respect
to prevailing market mark up with assurance of satisfaction andsupport. HBL has more customers as
compare to other banks, if they given properattention to every customer then in few years it will be
the leading bank of thecountry.30M. ISMAIL L1F07BBAM0001 UCP
LAHORE5.1.2RECOMMENDATIONS

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DEPARTMENT OF BUSINESS MANAGEMENT SCIENCES

VIRTUAL UNIVERSITY OF PAKISTAN

MASTER IN BUSINESS ADMINISTRATION (MBA)

Permalink Reply by + M.Tariq Malik on October 30, 2011 at 10:57am

Permalink Reply by + M.Tariq Malik on October 30, 2011 at 10:58am

Permalink Reply by + M.Tariq Malik on October 30, 2011 at 10:58am

Inauguration of State Bank of Pakistan (SBP) on 1st July, 1948.

MCB taken up by a private group in April, 1991

Permalink Reply by + M.Tariq Malik on October 30, 2011 at 10:58am

ABOUT HABIB BANK LIMITED:

4. HBLs Competitive Strategies

MEMBER EXECUTIVE BOARD

Sikandar Mustafa Khan

VISION, MISSION AND VALUES

Permalink Reply by + M.Tariq Malik on October 30, 2011 at 10:59am

PRODUCTS AND SERVICES OFFERED BY HBL

HBL Muhafiz Rupee Travellers Cheques

DEPARTMENTS & RESPONSIBILITIES:

During my internship, I came to known about the following departments functioning in

Account opening department.

These require many document to open this account:

Types of the Account

Cheque encashment procedure:

1. loan for purchasing vehicles

There should be branch where payment is to be made.

The applicant on two places should sign application.

Permalink Reply by + M.Tariq Malik on October 30, 2011 at 11:00am

SBP ERF Scheme

Concessions rate of markup as compare to commercial banks rate of markups.

How to operate this scheme?

SBP ERF scheme

Party request letter

L/C sales contract

L/C sales contract

Form E & not

availed SBP finance

Non shipment 37 paisa/1000 per day

How to avoid from penalty of non shipment?

Short shipment amount =200000

In case of post shipment only late repayment of finance penalty is involved.

Short fall in EF:

Permalink Reply by + M.Tariq Malik on October 30, 2011 at 11:00am

Demand Finance & Running Finance:

FAPC & FAFB

FAPC (finance against packing credit):

The functional utility of E-FORM:

Original copy is for SBP that is checked by the higher authority.

Permalink Reply by + M.Tariq Malik on October 30, 2011 at 11:00am

Commercial sector imports

Application and agreement form IB-8:

Name and address of importer.

2) Performa invoice/ purchase order:

It is issued in the name of issuing bank A/C importer.

Original is for the use of SBP.

Types of letter of credit:

Opening bank (issuing bank or importer bank):

Risks for importer and exporter:

He does not know the seller.

He does not know the buyer.

Buyers and sellers obligations:

The sellers obligations:

Permalink Reply by + M.Tariq Malik on October 30, 2011 at 11:01am

(45,909,484/79,999,852)100 (41,662,839/74,751,375)100 (36,850,491/63,376,047)*10